The Indian textiles industry exhibits tremendous potential

The Indian textiles industry exhibits tremendous potential

Incorporated in 1970 at Bhilwara, Rajasthan, BSL is engaged in the manufacturing woollen/worsted yarns, synthetic yarns, blended viscose fabrics, silk fabrics along with furnishing and fashion fabrics. The manufacturing facilities are located in Mandapam in the Bhilwara district of Rajasthan. Nivedan Churiwal, Managing Director, BSL, in this conversation with Divya Shetty, provides insights into the present state of the Indian textile industry and explores potential opportunities that can be harnessed.

What are the challenges for the Indian Textile and Apparel which is seeking to increase their global market share?
The Indian textile sector is currently presented with historic opportunities for the next 10-15 years, driven by factors like government initiatives, India’s global image, the “China plus one” strategy, growing GDP, and industry efforts. These opportunities extend to scaling business and enhancing the bottom line, particularly in exports. However, threats loom due to international uncertainties, such as the Ukraine-Russia conflict impacting Western Europe’s demand. Unforeseen events like the ongoing Ukraine war and internal challenges, like the ability to scale up in the face of opportunities, pose significant hurdles for Indian textile mills.

Have government schemes or policies played a role in facilitating the expansion of your company’s exports?
In the realm of exports, devising a personalised strategy is imperative. Over the years, incentives have notably diminished and are now minimal. However, both the central and state governments have introduced compelling investment policies. The Production-Linked Incentive (PLI) at the central level and diverse state policies have proven to be attractive. These initiatives have facilitated substantial capital expenditure (capex) and the establishment of additional large capacities. Consequently, we have augmented our export capabilities. It is evident that the incentives offered by governments indirectly contribute to boosting our revenue and export endeavours.

We did not avail of the Production-Linked Incentive (PLI) since companies across various states can choose between central and state government schemes. Our preference was for the Rajasthan government scheme, specifically the Rajasthan Industrial Promotion Scheme (RIPS), which provides appealing interest subsidies. Currently, one of the pivotal factors is the interest cost; an attractive interest subsidy can significantly impact a mill’s decision to undertake substantial capital expenditure.

Globally climate challenge has been gaining centre stage in recent years. So, is it a challenge or an opportunity for the Indian exporters? And what are the sustainable practices your company has been adopting?
For any company aspiring to future growth and engagement with global renowned brands, an unwavering commitment to sustainability is indispensable. Without dedicated attention to sustainability, it is challenging to expand and establish partnerships with top brands worldwide. Our commitment to sustainability is evidenced by various certifications, including GRS, Ecotex, and Zero Liquid Discharge (ZLD). Notably, we were the pioneers in Bhilwara to attain ZLD. Our dedication extends to a circular cycle, where we produce items from recycled fibre and supply them to local customers, solidifying our commitment to sustainable practices.

In the entire Textiles and Apparel (T&A) value chain, which segment is currently exhibiting strong performance in exports?
Across various fields such as yarn, fabrics, and technical textiles, there is no uniform performance trend—some sectors thrive while others face challenges. Opportunities abound in every segment. For instance, the spinning and cotton industries, while experiencing record highs about three to four quarters ago, currently contend with lower margins due to the cyclical nature of their operations. Nonetheless, on the whole, the Indian textiles industry exhibits tremendous potential.

To what extent is quality crucial for inclusion in the supply chain of multinational brands?
Quality is paramount. Whether you aim to expand your business and supply to top global brands or even cater to a smaller brand in India, emphasising quality is indispensable. Despite possessing superior facilities, excellent infrastructure, and a commitment to sustainability, delivering a high-quality product to your customers is imperative for success.

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