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Interview with Nitesh Mittal

Nitesh Mittal
Nitesh Mittal

Kusumgar Corporates Private Limited
Kusumgar Corporates Private Limited

We need stringent policies for technical textiles
Kusumgar Corporates is a leading manufacturer of technical textiles and specialty textiles genre, encompassing a wide spectrum of industrial fabrics products and technical applications. Nitesh Mittal , Senior Manager - Marketing, discusses the prospects of technical textiles in India.

What makes Kusumgar Corporates a leading and one of the most renowned technical textiles manufacturers of India?

We are one of a kind company in India which is into the manufacturing of woven synthetic fabrics and catering to several industries worldwide. Our diversified product range makes us unique and marks our presence in almost all the verticals of technical textiles. Our focus has remained on product innovation and improvement which has helped us in creating a niche and building a brand name that shares industry goodwill not only in India but globally. Our vision is to transform the lives of people through innovation in textile technologies. We have a customer-centric approach with zero tolerance to failure. The company has a basic philosophy to adopt changing technologies and develop products that provide growth not only to the company, but also contributes to the larger cause of the nation.
 

What are the opportunities and challenges for your business?

Opportunities are immense in the business. At present, we are catering only to about 3 per cent of world output which is a meagre share for a vast country like India. There are very few companies in India currently who have the manufacturing facilities and willingness to exploit these markets. The government has been supportive in promoting TT manufacturing and has provided subsidies for capital investment. With the Make in India initiative, there have been a lot of foreign companies willing to invest in India and we can see India as a new manufacturing destination for the western countries. The major challenge in the TT industry in India in particular is the exposure of the industry to the latest innovations. Also, we still lack skilled labour and infrastructure. We also have very a poor record for protection of patents and intellectual property rights which needs to be improved.

What is the latest innovation in the state-of-the-art machinery?

There have been a lot of developments in machineries in recent times, whether we talk about spinning, weaving, finishing or fabrication. Today, looms are available with speed as high as 1500 rpm which are fully automated and PLC-controlled. There are systems available for defect detection on the machine itself, helping reduce the downtimes and improve the overall quality. Even in supply chain and warehousing, robotic systems are coming which will eliminate the human dependency. Our industry has remained labour-intensive and human-dependent but with changing times now, we are moving towards automated systems.

What are the reasons for slower growth of technical textiles industry in India in spite of the huge potential it holds?

India is becoming the manufacturing hub for technical textiles (TT) and we can see a bright future. One of the major reasons for the slow growth of TT in India until now was the lesser availability of raw material. Most of the technical textile components are made from high-end synthetic fibres. However, we being one of the largest cotton producing countries have not been able to manufacture and cater to the TT market. Another reason for the slow pace growth is the awareness of the consumer about technical textiles. The government of India under the ministry of textiles and other organisations have done an excellent job in the last decade in creating awareness about TT in India. Equally encouraging is the fiscal benefits provided in terms of subsidies to promote TT. The need of the hour now is to introduce regulations of national interest to promote technical textiles. As a whole, TT, a segment unknown to the country back in 1992, has become the  buzzword for entrepreneurs and industry, and it is time for the country to adopt a mature approach for the real strategical growth of TT in India.

Among the various segments within technical textiles industry, Kusumgar caters to the armed forces, industrial fabrics, geosynthetic, sports, etc. Which are the fastest growing segments and why?

As I mentioned earlier, we have been catering to almost all the segments of TT in one way or the other. The potential with each of the segments is immense whether it is military, industrial or sports. Our military is the second largest in the world, and if we combine homeland security including paramilitary and police forces, we are the largest in the world. Over 90 per cent of the textiles used by our forces are conventional, and there is immense scope of improvement and usage of speciality textiles. 

Industrial textiles have been growing at 8 per cent globally, and are expected to further increase at 12 per cent in the coming years. With unique strength to weight ratio and flexibility that textile provides, metals will be replaced by composites and textiles in most of the industries globally. 

The sports industry, I feel, is one of the fastest growing industries globally and we can see a great potential in the coming years. Today, with increased paying capacity and the young generation more inclined towards leisure activities, sportech will be one of the fastest growing segments.

The global technical textiles production is expected to reach 35.47 million tonnes by 2022. Is it achievable? What is India's contribution in it?

I am not very good with numbers, but as I mentioned the future is bright and India will be the major contributor at the global stage. I don't see India emerging as an innovation and R&D centre in the next five years, but we surely will be the manufacturing hub contributing to over 20 per cent of TT global market.

In terms of financial performance and profitability, how is Kusumgar doing? Are there any expansion plans to increase capacity?

Our performance has been satisfactory and is better than industry average. Over the last three years, we have grown at a pace of 20 per cent per annum and are expecting to continue to grow at the same pace in the coming years also. We have recently three-folded our capacities for weaving, finishing and coating. We have also joined hands with Japanese giant Toray for the manufacturing of airbag fabrics in India. 

Who are your major customers in India? What about exports?

The Indian ministry of defence is our biggest customer in terms of volumes. Our domestic-to-export ratio is 70:30, and we are trying to increase the export ratio. By 2020, our plans are to make it 50:50. We are exporting fabrics for parachutes, automotive and industrial applications mainly to the US and EU. Being critical applications there are a lot of qualifications and approvals involved before the actual orders come. Patience is the key in these markets. Companies have to be persistent in their approach, and should remain focused as penetrating these markets is the most difficult task. However, the good news is the competition is limited, and you always have a chance.

Any plans to expand to any other regions in the near future?

Currently, our focus is to further expand our business in the aeronautical, industrial and sports segments especially in the US. The market potential of the US itself is huge, and India currently stands nowhere in the supply chain. Needless to say, there is still a lot of potential which is untouched in the South American and Asian countries as well.

Please tell us about your R&D facilities.

We have a state-of-the-art testing laboratory where most of the physical, chemical and functional parameters can be tested in accordance to most of the international standards. The research DNA of the company has helped to develop all kinds of samples from bit loom size to a couple of hundred metres with desired finishing/coating, etc, as per customer requirements.

How do you rate the pace of growth in the Indian technical textiles market?

The TT industry in terms of value has already crossed Rs100,000 crore, and is growing at 15 per cent per annum. Statistics may appear encouraging but at the same time in reality the growth is mainly confined to pack-tech. The growth of other segments has been slow. India is one of the fastest growing economies, but when compared to the West, we have been slow in terms of TT as a whole. There are still very few big organised players; you can count them on your fingertips. There has been a major shift in the last 2-3 years and I hope the gears will shift now and we will grow at a much higher rate.

How do you see your market segment growing in the next 5-10 years, both locally and internationally?

Future always looks good, or atleast we should hope that it will be good. What I mean is, it's really optimistic and the market is growing at a good pace. To sustain the business, one has to continuously develop and evolve as a solution provider to cater to the ever-increasing demands of the customer. What looks niche today is going to be a commodity tomorrow.

Tell us about your technical textile consulting services. What is the scope of these services?

With decades of experience and expertise in this industry, and the industry goodwill that we enjoy, we consider consulting services as a payback to our own industry/people. We do not really consider it as a business, but as a responsibility.

Is the competition in your line of business getting more fierce?

I consider competition to be a very important aspect in the development of an individual or of a company. Competition was there in the past also, and it will only increase with time, but it helps to keep ourselves on our toes and do our best without becoming lethargic. In fact, it is the competition which acts as a catalyst for continual improvement. It is important to keep a check on the competition, but our focus remains more on being persistent in our efforts. 

What about application of the Internet of Things (IoT) and artificial intelligence (AI) in technical textiles? Kindly elaborate.

Artificial intelligence and Internet of Things will find huge application in the textiles industry as a whole and the TT segment in particular. The textiles industry globally is the largest labour-intensive industry after agriculture, and AI will certainly reduce human dependency on manufacturing as well as in the supply chain management.  On the application front, e-textiles are already in the market and there will be significant growth of this segment in the coming years. TT has got huge potential in animation and acoustics industry which is unexplored till now.

To expedite growth in TT production in India, what measures and steps would you recommend?

I believe awareness among the people is the most important thing. The government should make stringent policies and regulatory norms in order to increase awareness and usage of TT in India. It is unfortunate that the use of airbags in cars is not mandatory in our country. Over 70 per cent of cars in India do not have a single airbag. Less than 10 per cent women use sanitary pads despite being the second largest in world population. Our fire-fighters still use conventional uniforms made from poly/cotton fabrics with no special treatments. Another important aspect is the availability of raw material. Globally, when you look at companies like DuPont, 3M, Milliken, they have set up from raw material to the end-product. Companies should explore the possibilities of backward integration. The country is marching to produce helicopters and aircraft, and hence will have to produce emergency slides, parachutes and many more products in technical textiles. The same is applicable for high-speed bullet trains as well. Survival balloons are a matter of need for the country and entrepreneurs must accept the challenges to manufacture these products in India.  The government has set up 12 centres of excellence (COEs) and incubation centres and has liberally financed for the infrastructure. However, there is a need for a better pragmatic scheme to attract industry to get engaged with these COEs.

How was your company's performance in the fiscal 2017-18 and also tell us about your future plans.

Business has been good, and we are performing quite well. We have recently increased our capacities and are targeting a CAGR of 20 per cent for next three years. We are also exploring the opportunities in aerospace, automotive and composite industries.  (HO)
Published on: 16/10/2017

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.