Pawan Sharma
Vice President - International Business OWM
The potential for solar energy in textile operations is huge
The textiles industry in India is expected to have a bright future in the years ahead, owing to the various initiatives by the state. It is expected to touch US$ 220 billion by 2020. Textile giants like Oswal Woollen Mills (OWM) can capitalise on this growing phase of the industry, and reap benefits. Pawan Sharma, Vice President - International Business of OWM talks about the industry and the company plans in detail with Fibre2Fashion.com
What is the size of the Indian textiles industry, and what has been the growth percentage in last few years?
India is one of the largest producers of textiles in the world. Abundant raw materials like cotton, silk, wool, jute, etc, and skilled workforce have made it a global sourcing hub. India is the world's second largest producer of textiles and garments. The Indian textile industry accounts for approximately 24 per cent of the world's spindle capacity. India's total market-share-in billion US$-is 69 per cent in textiles and 31 per cent in garments. India has surpassed Italy, Germany and Bangladesh to emerge as the second largest textiles exporter. The Indian industry is currently estimated at US$ 108 billion and expected to reach US$ 220 billion by 2020.
How do you rate the penetration of solar energy in Indian textile mills?
The textile spinning and weaving industry is one of the largest and oldest sectors in the country, and very important to its economy in terms of output, investment and employment. Statistics show that this sector consumes substantial conventional energy. While analysing the energy requirements of the sector, it was found that one of the processes in weaving called 'sizing' requires hot water at a temperature of 80-85°C. Hence, solar thermal intervention is possible in the sizing process. Even in textile finishing, hot water with temperatures ranging from 40°C to 110°C is required for the process at different stages. The heat required can easily be generated through the use of solar energy. The potential for replacing conventional energy sources with solar energy in sizing as well as other operations is huge and promising for commercialisation in this sector. Rooftop solar generation can also be helpful to meet the space constraints.
Which are your best selling products? Please give their percentage composition in your overall sales.
Worsted segment, being a compact market, accounts for 20.65 per cent of our overall product sales. It comprises:
1. Woollen worsted yarns
2. Wool tops
3. Woollen blended yarns
4. Acrylic yarns
5. Acrylic blended yarns
Denim segment accounts for 79.35 per cent. The products comprise the below:
1. Denim fabrics
2. Indigo yarn (cotton yarn)
How do you expect the Indian textiles industry to fare in the coming years?
The Indian textiles industry is set for a strong growth catalysed by a strong domestic consumption and export demand. The new 15-year-textile policy is on the anvil. Various government schemes such as TUFS called for investments worth more than ₹ 2500 billion in the industry. Schemes for integrated textile parks provide world class infrastructure to new textile units. An integrated processing development scheme for the sanction of processing parks has been initiated. There are tax incentives for R&Ds. Indian government has allowed 100 per cent FDI in the textile sector. In light of the above initiatives, I presume that the Indian textiles industry will have a bright future in the years to come.
What are roadblocks to successful textile exports in India?
The roadblocks are as below:
1. High transaction costs involved in capitalising the incentives rolled by the government;
2. Scarcity of trained manpower;
3. Escalating energy costs;
4. High transportation costs;
5. Lack of economies of scale.
Which are the biggest markets for your products? Which ones are coming up in a big way?
The domestic market is big round the year. Others include:
1. Nepal
2. Sri Lanka
3. Bangladesh
4. Lebanon
5. Italy
6. Korea
7. Latin America
Latin American nations and Korea are coming up in a big way for our export sales.
Please share details of your last two fiscals.
OWM had a growth of about 25 per cent and 18 per cent in 2014 and 2015 respectively, despite a global slowdown and increased prices of raw materials as far as wool is concerned.
How do you think will the Trans Pacific Partnership (TPP) affect the Indian textiles industry?
In my view, TPP will adversely affect the Indian textiles industry as India is a non-member and deliberately left out of the TPP. There will be huge trade diversions which will result in a huge deficit in this sector. The member countries of TPP will have zero duty or preferential duty access to the US, whereas India will have to pay higher duties, making our garments uncompetitive. In order to overcome and sideline the TPP effect, we must strengthen the ASEAN trade agreement and put more and more products in the list. We can also explore new avenues for such kind of free trade agreements (FTAs) with Latin American nations.
What are your expectations from the coming two fiscals?
OWM is expecting a consistent growth of 15 per cent in the coming fiscals, as we are expanding our production capacities in denim fabrics and denim spinning yarn. We are also exploring overseas markets under various FTAs to reap benefits.
What is the budget allocated towards R&D?
OWM allocates approximately ₹ 3–4 crore on R&D for the development of new techniques such as total easy care, machine washable yarns, shrink resist yarns, moth-proof yarns. Our thrust is to develop new state-of-the-art techniques to improve efficiency in related fields.
Published on: 15/02/2016
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.
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