Value Addition in Home Textiles & Apparels – The Way Forward

The Textile Association (India), Mumbai Unit organized the International Seminar “Value Addition in Home Textiles & Apparels – The Way Forward” on 20th January 2012 at Hotel InterContinental the Lalit, Mumbai.

Mr. Rajesh Balakrishnan, Vice President, TAI, Mumbai Unit welcomed the Chief Guest, Mr. A. B. Joshi, Textile Commissioner, Ministry of Textiles, Govt. of India, Key Note Speaker Mr. Ajay Arora, Managing Director, D’Décor Home Fabrics Pvt. Ltd., Awardees Mr. Virender Kumar Arora, Mr. R. L. Toshniwal & Mr. Suresh G. Vaidya, Speakers, Press, Media and delegates.

Mr. C. Bose, President, TAI, Mumbai delivered the presidential address and briefed about the activities of TAI, Mumbai Unit.

Mr. V. C. Gupte Chairman, TAI, Mumbai Unit and Convener of the seminar gave the highlights of the event. He said that Home textiles is rather synonym with bed linen, curtains, upholstery and towels only. But it is much more beyond these items. Mr. Gupte further added that in apparel segment, yarn dyeing contributes to over 80%. There are many variables in yarn dyeing. However, if handled correctly, it can do substantial value addition. We have attempted to cover yarn dyeing as much as possible and what steps will do further value addition. Mr. Gupte expressed the views that value addition in processing can add to the exports, increase industrial production and increase employment and boost the economy. He said that The Textile Association (India), Mumbai Unit has brought together the eminent speakers from the different sectors of processing industry as well as the Government representatives on the same platform. The topics of the seminar shall cover broad spectrum of the consumer needs and what a processor would be eager to know and understand.

Mr. Ajay Arora, Managing Director, D’Décor Home Fabrics Pvt. Ltd. in his Key Note address said that after the abolition of quota system, Home Textiles has got an important opportunity in the growth of the textile industry. The upward trend of Indian Economy and increasing demand for homes has created a strong growth opportunity. He mentioned that the value addition has become imperative for the textile industry due to being highly capital and labour intensive. Mr. Arora said that the value addition is quite a broad term and it must be redefined. The value addition can be in all fields of business which includes within the factory and outside factory also. In early days, if the raw material costs ‘X’ and after processing & manufacturing, it is sold for ‘3X’, this was known as value addition. According to him many home textiles products failed to meet this criterion. It is difficult to differentiate yourself in the products, like bed sheets, towels, readymade curtains, etc. These products even fail to meet ‘2X’, leave aside test of ‘3X’. Manufacturers need to focus where differentiation is possible through following factors,

1. Design & colour
2. Construction
3. Process
4. Finish

It is very important to differentiate your products with good Designs & attractive colours prove to be a successful way in different markets. It is important to invest into original designs and colours. According to Mr. Aurora, at least 2-5% of sales should be invested in design & colour improvement. The same can be extended to construction which can be very big differentiator due to aesthetic, technical and functionality appeal. The importance of reliable service is always underestimated. A quick response supply chain which can deliver small quantities in short lead time is very critical to estimate accurate demand for different designs & colours. The information technology provides significant help to grow high quality designs and colours. Mr. Arora suggested that the manufacturers need to be Fast-Flexible-Reliable in today’s market.

Mr. Aurora further said that very large part of value addition happens outside the factory. The global buyers keep its share of profit pool by working on certain key capabilities. These key areas are,

1. Design
2. Brand
3. Presentation
4. Business model

The buyers do not procure different products from one, but multiple manufacturers, are able to innovate by combining products to provide consumer one solution like, bedsheets, duvet covers, rugs, curtains and offer very attractive solution. The Packaging, attractive photography and showcasing products enhance their appeal, which fetch higher price for the same product. Mr. Aurora added that Branded products get higher price. Brand creation is an art that requires astute use of thinking, consistent investment and clear promise to the consumer. Brands are difficult to built, but once built can yield rent for life.

Mr. Aurora said that Home textiles market is large and one cannot easily reach small customers, hence it requires a strong distribution network. Huge value addition can also be considered by bringing innovation in business model. By bringing in suitable model, like Business-to-Business one can eliminate costs and do value addition, he concluded.

The Textile Association (India), Mumbai Unit has set a precedent by felicitating the textile professionals for their outstanding contribution in the field of textile industry. In this Seminar, the TAI, Mumbai Unit felicitated Mr. Virender Kumar Arora, Chairman, D’Décor Home Fabrics Pvt. Ltd., Mr. R. L. Toshniwal, Chairman & Managing Director, Banswara Syntex Ltd., Mr. Suresh G. Vaidya, Managing Director, Vaidya & Associates with The Life-Time Achievement Awards.

Mr. A. B. Joshi, Textile Commissioner, Ministry of Textiles, Govt. of India who was the Chief Guest of the Seminar said Home Textiles have emerged as one of the most dynamic segments in Indian Textile industry. India has become manufacturing hub for home textiles and holds significant position in the export market due to its multi-fibre production and strong traditional base. Presently about 78 percent of total production of home textiles is exported. The home textile industry has bright future due to the sizeable growth rate of urban housing and hospitality sector in the country. The emerging of this market trend is due to growing demand of comfort and functional performance by customers on fibre combinations, fabric designs, textures, and vibrant colours. Mr. Joshi further said that it is high time that the manufacturers have to further add the values by way of adopting the performance apparel technologies for use in home textile products. Home textiles can also be made from various functional materials such as stretchable fabrics, thermally adaptive bedding, environmentally friendly textiles, anti-microbial fabrics, stain protective treatments, flame retardant and fragrance encapsulating technologies etc. Technical textiles can also be integrated with home textiles for more value addition – for example bed sheets can be made from coolmax to thermolite fabrics. The demand for home textiles with flame retardant finishes, stain protective treatments and fragrance encapsulating was expected to grow in future for hospitality and contract markets. He further added that the Indian Government was very much concerned for extending its all required support for harmonized growth & development of the textile industry and would continue with its existing policy environment.

In all, there were 5 technical papers presented during the seminar.

Dr. Susanne Jary, Global Head of Home Textiles, Marketing-Textile Fibers, Lenzing AG, Austria spoke on “Value Added Marketing in Home Textiles”.

Mr. Gunendra Sangaj, Manager – Technical Marketing (Finishing), BASF India Ltd. presented the paper on “Specialty Finishes for Home Textiles”.

Mr. Harald Dietmann, Marketing Coloration-Global Business Development Vat Dyes, DyStar Colours Distribution GmbH, Germany made the presentation on “Resource Management in Yarn Dyeing Processing”.

Mr. P. Sengupta, Sr. Vice President (Operations), Mafatlal Industries Ltd. presented the paper on “Value Addition in Yarn Dyed Apparel”.

Mr. Peter Yeung, Area Sales Manager, Fong’s National Engineering Co., Ltd., Hong Kong expressed his views on “Value Addition through Innovation in Yarn Dyeing”.

All the Papers received very high response from the participants

There were two sessions of the Panel Discussions. The theme of the first Panel Discussion Session was “New Opportunities in Home Textiles” which was moderated by Mr. Ullhas Nimkar, Consultant. The Panel comprised Mr. Rajiv Merchant, Chief Executive Officer, Portico New York, India, Mr. Rahul Bhajekar, Managing Director, Texanlab Laboratories Pvt. Ltd., Mr. Edward Menezes, Director, Rossari Biotech Ltd. Mr. Samit Shah, Chief Operating Officer, Synergy Lifestyles Pvt. Ltd.

The second Panel Discussion Session was moderated by Mr. Rahul Bhajekar, Managing Director, Texanlab Laboratories Pvt. Ltd. The theme of this Panel Discussion session was “Market Opportunities for Apparel in the Domestic and Export Sectors”. The panel comprised of Mr. Aniruddha Deshmukh, President Textiles & FMCG, Raymond Ltd., Mr. Dipen Jain, Director, LSD Lifestyles Pvt. Ltd., Ms. Bina Mahtani, Director, Dutch India Agency, and Mr. Ullhas Nimkar, Consultant.

There was good interaction between participants, who posed many questions to panel members and same were answered very promptly by the panel members. Both the sessions were very interesting and memorable. The topics of interest were value addition through branding, packaging and marketing. Both the sessions were very professionally handled by the moderators as well as the speakers. The delegates were intensely involved till the last session to take advantage of the panel discussion. The organizers of the seminar were happy to note that the objectives of the International seminar are fully achieved.

At the end, Mr. A. V. Mantri, Hon. Secretary, TAI, Mumbai Unit proposed a vote of the thanks. The Seminar was grand success and was attended by over 275 participants.