Technical textile is one of the emerging field and there is lot of scope for growth
Trident Group is a $ 1 billion Indian business conglomerate and global player. Headquartered in Ludhiana, Punjab, Trident is the largest terry towel and wheat straw based paper manufacturer in the world. Trident has frequently received accolades from its patron in recognition for delivering high quality standards and for its customer-centric approach. Samir Joshipura, Group CEO, Trident Group, in this interview with Divya Shetty, discusses how India can be a global manufacturing powerhouse for textile value chain.
The Finance Ministry recently announced this year’s Union Budget. Could you share your thoughts on what you consider to be the hits and misses of this budget from the perspective of the textile industry?
The recent Union Budget introduced several measures that will likely benefit the textile industry. The skilling incentive, providing Rs 3,000 per month per worker, is a positive step toward enhancing the workforce’s capabilities. The enhanced credit guarantee scheme is expected to boost investments, particularly in textiles. The reduction in duty on raw spandex yarn from 7.5 per cent to 5 per cent is another welcome move that could lower costs for manufacturers.
How would you describe the status of the textile industry in light of the highly uncertain global market conditions?
The global textile market is currently facing significant uncertainty due to various factors such as fluctuating raw material prices, trade restrictions, global logistics challenges and bottleneck and geopolitical tensions. Although there has been a slowdown in exports due to global demand fluctuations, the domestic market remains strong. India’s focus on sustainability and technological advancements is helping the industry adapt to these unpredictable market conditions.
What are the challenges as well as the opportunities for the Indian textile manufacturers?
The Indian textile industry is confronted with several challenges, including a fragmented structure dominated by small and medium enterprises, increased operational costs due to the GST, and competition from countries like China, Bangladesh, Pakistan and Sri Lanka.
However, there are also significant opportunities. India’s ability to produce a wide range of textiles at competitive prices, coupled with its strong domestic demand, presents a fertile ground for growth. Initiatives like the PM Mitra Scheme and Farm to Fibre Mission will strengthen the value chain, offering manufacturers opportunities to scale and innovate. Recent political unrest at Bangladesh has also helped order and manufacturing base shifting to India.
Also, the growing global demand for eco-friendly and sustainable textiles presents a significant opportunity for Indian manufacturers. By adopting sustainable practices, such as using organic fibres and reducing water consumption, Indian textile companies can cater to environmentally conscious consumers. Additionally, government initiatives promoting sustainable manufacturing provide further incentives for the industry to innovate and lead in this space.
Furthermore, the global shift towards the China-plus-one strategy, where companies diversify their supply chains away from China, opens new avenues for Indian textile manufacturers. As international brands seek alternative sourcing destinations, India stands to benefit from increased investments and partnerships, allowing the sector to expand its global footprint and enhance its competitive edge.
What are the policy initiatives needed to improve India’s competitiveness and push exports?
To improve India’s competitiveness and push textile exports, several policy initiatives are essential. Addressing the inverted duty structure and providing targeted support to MSMEs are crucial steps to enhance the sector’s efficiency and reduce operational costs. Infrastructure development through schemes like the Scheme for Integrated Textile Parks (SITP) and fostering research and development in high-performance textiles are vital for reducing production costs and improving global competitiveness. Financial incentives through Production-Linked Incentive (PLI) schemes can attract significant investments in garment manufacturing, enabling economies of scale and boosting exports.
A critical aspect of improving India’s export performance lies in the ongoing negotiations with the European Union (EU) for a free trade agreement (FTA). India is advocating for textiles and apparel to be classified as non-tariff items, as the current EU import duties of 10-12 per cent place Indian exporters at a disadvantage compared to Bangladesh, which enjoys duty-free access due to its least developed country (LDC) status. Additionally, the Indian government must address concerns over the EU’s new ecodesign regulations, which impose stringent sustainability and circularity requirements that Indian exporters view as non-tariff barriers.
Further, fostering innovation in cotton production is essential for maintaining India’s competitive edge in the global textile market. Initiatives like the Kasturi Cotton Bharat can enhance the quality, traceability, and branding of Indian cotton, making it more appealing to international buyers. Lastly, investing in skill development within the textile sector is critical. By equipping the workforce with advanced skills in textile manufacturing and design, India can ensure the production of high-quality, innovative textiles that meet global standards, thereby strengthening its position in the international market.
What steps can to be taken to make India a truly global manufacturing powerhouse for textile value chain?
Making India a global leader in textile manufacturing requires a multifaceted approach.
A key aspect is the promotion of sustainability, which includes adopting eco-friendly technologies, reducing resource consumption, and emphasising the use of organic and recyclable materials. This commitment to sustainability will not only meet the rising global demand for environmentally responsible products but also position India as a leader in the green textile movement.
Another key initiative is the Kasturi Cotton Bharat, a collaborative effort by the Ministry of Textiles, the Cotton Corporation of India, trade bodies, and industry stakeholders. This initiative focuses on self-regulation, ensuring the branding, traceability, and certification of Indian cotton. By enhancing the competitiveness of Indian cotton in the global market, it aims to create a sustainable ecosystem that benefits all stakeholders.
Additionally, enhancing infrastructure and supporting technological upgrades are crucial steps. Investments in advanced machinery, automation, and digital tools will streamline production processes, increase efficiency, and improve the quality of Indian textiles. Government initiatives like the Saathi scheme, which targets the modernisation of the power loom sector, along with incentives for khadi and handicrafts, can revitalise traditional sectors and integrate them with modern manufacturing techniques.
Finally, promoting skill development and fostering innovation in design and production are essential for establishing India as a hub for high-quality textile manufacturing. By building a skilled workforce and encouraging continuous learning and research, India can maintain its competitive edge and offer innovative, high-quality products to the global market.
How is Trident contributing to make India the leader in global textiles?
From increasing capacities to refreshing designs, to partnering with the best in technology, we were constantly committed to continuous innovation and driving future values. Excellence in quality coupled with differentiated growth strategies has led to strong strategic partnerships across the global arena. The company stands tall as a global leader from a terry towel capacity perspective. Impressively so, it is one of the leading suppliers of bath linen to the US’ market. Trident is the flagship company of the $1 billion Indian business conglomerate and global player, Trident Group, headquartered in Ludhiana. Flagged off on a humble note in 1990, Trident has evolved over the years into one of the world’s largest integrated home textile manufacturers. Today, it has 62 per cent of its revenue from exports, of which 3 per cent comes from the US. Trident is preferred partner of choice for global players like Walmart’s, JC P Penny, IKEA and likes.
The company has is equally spread across in Europe, Australia, Japan, and in Asian markets. Truly, Trident has emerged as one of the leading players in vertically integrated Textile players- from yarn to that of home textile. Trident is moving towards a sustainable future with multi-fold initiatives and approach, and towards this, more recently submitted its SBTi targets for validation, underscoring its commitment to sustainability. The company has significantly increased its renewable and clean energy share, with the installation of 12.53 MWp rooftop solar, thereby bringing its total solar capacity to 40.9 MWp. Additionally, biomass usage in the fuel mix reached 44 per cent this quarter. Trident Limited is a proud participant in the United Nations Global Compact (UNGC), adhering to its ten principles covering human rights, labour standards, environmental protection, and anti-corruption.
