As companies strive to meet their internal targets and align with external demands, sustainability is becoming a top priority amongst their sourcing strategies. Increasingly, brands and buyers are stipulating precise requirements, including the use of recycled cotton or circularity, the adoption of green production facilities, energy conservation and the implementation of wastewater recycling measures. While discussions surrounding sustainability have long been present, there’s a real push to make greener choices throughout the industry.
As looming sustainability regulations in major export markets like the EU become more stringent, being the major manufacturing destination puts Indian manufacturers in a precarious position to adapt and thrive. Moreover, sustainability presents a unique opportunity for manufacturers to differentiate themselves from competitors in neighbouring countries such as China, Bangladesh, Sri Lanka and Vietnam, allowing them to carve a niche in the global marketplace. Simultaneously, manufacturers are also redirecting their attention to the domestic market as India emerges as a standout performer in the global economy.
‘Brands are pushing for sustainability’
At present, major manufacturers are equipped to fulfil these requirements. However, those lacking the essential infrastructure will need to make investments to secure orders.
“Yes, brands are pushing for sustainability,” stated CP Rajesh Gupta, General Manager Marketing, Shahi Exports, India’s largest apparel manufacturer and exporter of readymade garments, operating more than 50 plus factories and 3 processing mills across 8 states. The company with a wide range of accreditations and certifications supplies to many of the world’s leading apparel retailers including C&A, Calvin Klein, Columbia Sportswear, Gap Inc., H&M, Inditex, Kohl’s, Marks & Spencer, PVH, Uniqlo, Walmart and more.
“We’re also making significant strides in sustainability. At Shahi, we’ve achieved a high level of backward integration, producing our own power. With our solar and wind farms, nearly 70 per cent of our energy is self-generated. Our goal is to rely entirely on renewable electricity by 2026,” emphasised CP Rajesh.
Similarly, Shankar Raman D., COO of Aquarelle India Pvt. Ltd., part of CIEL Textile with an annual turnover of approximately US $ 400 million and operations spanning 19 manufacturing facilities across 4 countries, also confirms growing interest of brands in sustainability. The group has a presence in four countries: India, Bangladesh, Mauritius and Madagascar. In India, the Aquarelle vertical produces approximately seven million casual shirts annually, while both the Laguna and Tropic verticals produce a similar quantity of formal shirts and T-shirts respectively.
“We take immense pride in our position as a leader in sustainability. Our factories consistently score high on the Higg Index, often reaching 97 per cent – 99 per cent. Our manufacturing facilities prioritise renewable energy sources, with our flagship factory Samudra Aquarelle in Bengaluru, already utilising solar power for 60 per cent of its energy needs. Our goal is to transition to 100 per cent renewable energy and efforts are underway to achieve this target,” said Shankar.
He emphasised that they have partnered with institutions like TrusTrace (traceability and compliance data platform) to meet the stringent sustainability and traceability requirements demanded by top-tier international and Indian brands.
Despite the loopholes present in their supply chain, manufacturers are diligently working to address and resolve them.
“We’ve ensured full transparency in our operations. Customers can easily trace their product’s origin without any ambiguity. Previously, we had a gap in our supply chain for synthetic fabrics, which we used to import from China or Taiwan. However, we’ve already invested in machinery for synthetic fabric manufacturing, and by September 2024, we’ll be producing it ourselves, closing that gap. This ensures there’s no uncertainty about the origin of our materials,” said Gayathri Kartik, General Manager Sales and Marketing, Best Corporation Private Limited (BPCL), one of the leading exporters of knitted garments from Tirupur. With an annual turnover of US $ 200 million and a capacity of 12 million pieces a month, the fully integrated company exports around 90 per cent of its goods, with 60 per cent going to the US and 30 per cent to the UK and Europe. It also
caters to Southeast Asian countries, supplying retailers such as the Landmark Group, Babyshop, Mothercare, Max Fashion and Carter’s.
Gokaldas Exports Ltd., a large manufacturer and exporter of apparels, with an annual turnover of US $ 275 million and 23 manufacturing facilities, is also eager to ride on the coattails of sustainability.
“We’ve implemented traceability measures for all our products across every unit of our factories. Each garment has a unique code that allows for easy tracing of its production details, including the production date and style number. When it comes to sustainability, India is leading the way compared to many other countries. If I were to grade it, I’d say we’re at a six, while other countries may be at a three or four,” stated Rexine J Peiappuram, Sr. Manager Merchandising, Gokaldas Exports Ltd. Rexine said when it comes to manufacturing compliance, India is at par with China.
The European Union’s initiative to regulate the apparel and textiles industry is considered a significant catalyst for the newfound emphasis on sustainability. However, Karan Malhotra, Business Development Manager, Pratibha Syntex Ltd., a vertically-integrated manufacturer of knitted textile products which produces over 60 million pieces of apparel annually including garments, innerwear, thermals and sleepwear, stated that when Europeans feel the temperature rising in cities like Paris, it hits home. “These first-hand effects of global warming are prompting such legislative actions.”
Pratibha Syntex exports its products to over 40 countries and operates across four verticals: Farming, Yarn, Fabric and Garmenting. The company collaborates with more than 30,000 farmers for raw material procurement. By 2025, the company aims to achieve a host of ambitious goals: becoming water-neutral, saving 12 crore litres of water, adopting 50 per cent renewable energy to save 7,500 families’ electricity consumption, installing 5 MW rooftop solar equipment, converting biosludge to energy, reaching zero waste in landfills with 1,000 MT less burden, reducing GHG emissions by 50 per cent, equivalent to planting 6 million trees and creating 100 per cent sustainable products.
According to Akshay Kumar, VP of Marketing and Merchandising at Paragon Apparel Pvt. Ltd., which claims to be the largest polyester sportswear manufacturer in the country with an annual production output of 9 million units and a turnover of US $ 65 million, the rising emphasis on sustainability has resulted in a higher demand for recycled materials, thereby significantly increasing the availability of recycled yarns. “This has made sustainability initiatives more feasible.” Paragon Apparel, a vertically integrated company, serves both domestic and export markets, with a 40 per cent share in the domestic market. It caters to clients such as Reebok, Adidas, Hummel, ALCIS Sports and Reliance, providing products for men, women and kids.
Paragon Apparel partners with industry leaders like Nautica and Bestseller to provide BCI (Better Cotton Initiative) certified products, ensuring traceability with its dedicated BCI account. The company offers recycled polyester options customised for MAX, Hummel and Reliance, alongside Recycled Fleece, a 70/30 cotton/poly blend favoured by brands such as The North Face. The company prioritises the use of recycled PET bottles for polyester production and holds certifications including Global Recycled Standard (GRS), OEKO-TEX® and GOTS. Employing eco-conscious practices, Paragon Apparel utilises recycled plastics for its packaging materials, particularly polybags, ensuring decomposability. Furthermore, it uses recycled paper for its tags.
The demand for sustainability extends beyond just products; brands are also seeking sustainable packaging solutions, explained Preeti Khanna, General Manager of Product Development at Modelama Exports (P) Ltd., a prominent manufacturer and exporter of woven garments with nine state-of-the-art production facilities, producing over 10 million garments annually. It exclusively serves the international market, focusing on the US and Europe.
“The sustainable journey of brands typically begins with initiatives like reusable bags before progressing to more sustainable fabric choices. However, there’s a growing awareness and consciousness about global environmental issues, which is driving this change. Achieving full sustainability requires collaboration between mills, overseas partners and retailers like us,” said Preeti.
Modelama Exports has installed solar panels with a capacity of 148.48 KW in its core factories. Additionally, Modelama boasts solar plants totalling 2 MW across its factories and offices, along with 6.25 MW windmills in Maharashtra.
| “When it comes to sustainability, India is leading the way compared to many other countries. If I were to grade it, I’d say we’re at a six, while other countries may be at a three or four.” Rexine J Peiappuram, Sr. Manager Merchandising, Gokaldas Exports Ltd. |
Growing focus on India
India continues to shine amidst the dim global economic outlook. According to a United Nations report, India’s economic growth is expected to slightly decrease to 6.2 percent this year from the previously projected 6.3 percent in 2023. Despite this slight decline, India is poised to retain its position as the fastest-growing major economy globally. It’s no surprise that manufacturers are now turning their attention back to the domestic market.
Raymond, the largest integrated textile company in the world, recognises the vast potential of the Indian market. “We believe that the Indian market holds immense potential. Despite our significant presence across various distribution channels, we feel like we’ve only just begun to tap into its vast opportunities. There’s still so much untapped potential here. Our focus is on maximising our impact in the Indian market before considering further expansion elsewhere,” explained Debdeep Sinha, Chief Business Officer, Apparel, Raymond Limited.
“We’ve allocated 5 per cent of our capacity to cater to the growing demand in the booming Indian retail market,” remarked Karan, even though the primary focus of Pratibha Syntex is on the international market.
Building upon this sentiment, Gayathri expressed, “India is truly emerging as a vibrant market. During the Bharat Tex event, I had the privilege of engaging with over 200 domestic brands, each with their own unique strategies and aspirations. With our rich resources, manufacturing capabilities and burgeoning intellectual property, India is poised to emerge as a dominant force in the garment industry.”
As brands seek to diversify their sourcing options, India stands to gain from the ‘China Plus One’ strategy. “We’re now exploring new manufacturing options in India. For instance, Shahi is currently in talks with a Taiwanese mill called Little King. Through collaboration, we aim to produce synthetic fabrics locally in India, which traditionally were imported. This move offers several advantages, including reduced lead times, competitive pricing and tapping into the domestic market. The ‘China plus one’ strategy is indeed gaining traction,” said CP Rajesh.
Offering his perspective on the matter, Shankar said China is present in all these segments, producing cotton, yarn, weaving and garments. India, on the other hand, has traditionally focused on yarn manufacturing, but its presence in the entire value chain is steadily increasing. Besides China and India, few other countries offer complete vertical integration in this segment.
He further opined, “Given these factors, the concept of ‘China plus one’ is gaining traction globally, with India emerging as a natural choice as the second option. India boasts a vast pool of talent, including design capabilities and intellectual manpower, making it an attractive destination beyond China.”
He said while Bangladesh excels in garment manufacturing, it still relies heavily on Chinese or Indian fabric. India’s proportion of textile exports to overall exports is relatively lower, around 10 per cent -15 per cent, compared to competing countries like Bangladesh, which stands at around 90 per cent. This presents a significant growth opportunity for India in the global textile market.
With no exception, everyone reiterated that by catering to domestic brands alongside international retailers and brands, manufacturers’ businesses are poised to thrive amidst India’s progress in the coming years.
