Vishal Fabrics will use 70% of green energy from 2023

Vishal Fabrics (VFL) is a denim manufacturing and fabric processing unit that was incorporated in 1985. VFL stands for a denim revolution, that brings equality back to fashion, and change the market trend, forever. Vishal Fabrics is a reputed entity that is known for dyeing, printing and processing of denim, and other wide range of fabrics. Vinay Thadani, CEO, Vishal Fabrics, discusses the prospects for the textile business in 2023 as well as current denim industry developments with Divya Shetty.

What is the industry’s outlook for the future? Both internationally and in India?

We observe the denim sector from two separate perspectives, namely the global and domestic. Global pressures have been present since the previous quarter, and there are primarily two factors that are to credit for this. The first is the volatility of cotton’s raw material prices around the world. Second, there are the inflationary pressures that are present in the western world, particularly in the US and Europe. These two reasons are thus responsible for muted demand tin the last six quarters.

As a result of the China Plus One Policy, Indian denim makers were granted a competitive advantage against Chinese manufacturers from the western half of the world after COVID, and as a result, there is a healthy demand from the western market. However, that occurred in the second quarter, or Q2, and it is still occurring at this time as a result of the fluctuating price of cotton. But when the new cotton season approaches in November and December, and as and when the raw material costs stabilise, we think this problem will also be addressed and the worldwide demand will increase from the Q4 onward.

In terms of domestic demand, it is doing well, as it has done over the past few quarters and over the past few years. The penetration of denim as a garment in domestic markets has been growing, therefore I would say that there is greater demand coming from these markets. The acceptance of denim as a clothing material in tier three and tier four cities as well as in rural regions has been seen during the past ten years. Because of this, the domestic CAGR is increasing at a rate of 8–9 per cent. Whereas, it is between 3-4 per cent worldwide.

What are the emerging trends in the industry?

In the domestic market, we are observing that the disposable income of every Indian has been increasing in the last couple of years. So, that means that people are more now brand conscious, they are moving towards the good premium denims.

Any other challenges the denim industry has been facing?

At present, there is no such challenge. The government has recognised the problems in the textile industry and has come up with the PLI scheme. But I think government has mostly focused on the manmade fibres and technical textiles only. So, I would request the government that should consider the cotton based industry also because the denim is made out of the cotton.

Why is sustainability important for the textile and apparel industry and how is your company adopting towards sustainability?

We have embraced sustainability from the beginning of the project. As I have stated, the biggest issue facing the textile business is water. Therefore, water is the fundamental issue in the textile business and disposal of the chemical water has always been on the top of the minds of all manufacturers. We have been involved in the dyeing and printing processes. As a result, from the start of this facility in 2017–18, there has been no liquid discharge from it. These issues were addressed at the time the unit was implemented.

Currently, we are attempting to use most of the green energies in our manufacturing facilities; however, because this project is still in the implementation phase, the majority of our first energy consumption will occur in the upcoming fiscal year. I estimate that in the upcoming FY23, 70 per cent of the total power consumed will come from green sources.

Any new product in the lineup. If so, elaborate.

At our facility, we constantly develop new products, and we do this on a regular basis. A different product development team is thus present. We regularly produce a different set of products in response to market need, and following that, our staff visits the market to demonstrate how the product will allow them to win over new markets. So, this is the way we have always operated.

What advice would you like to give the industry in order to maintain sustainability and circularity on a global scale?

As I have mentioned, the water is the root of the issue. We should to replenish the environment’s water supply. We should be mindful of production waste, which is something Vishal Fabrics has been doing as well. We have begun making the bags from the leftovers. Therefore, these are the small actions that each producer should undertake. But then, last year, the nation experienced a severe power outage. As a result, I think the time is appropriate and it is in keeping with the goals that our Prime Minister Narendra Modi has set for us to implement a renewable energy utilisation in our facilities. So that’s the action we took, and in my opinion, that’s what the entire industry and all manufacturers should do.

What are Vishal Fabrics’ expansion plans?

At this time, we don’t have any expansion plans. We are here to use our resources as effectively as possible. And I think that what was accomplished by our team was done in the finest manner possible.