Textile industry has made its own space over the years and has been extremely successful in contributing to the country’s GDP. The importance of the textile industry can be gauged upon by the fact that it provides around 2% to India’s GDP and doles out more than 13% of the income country generates from exporting goods annually. Textile industry is one of the largest employers of the nation and is expected to grow further at CAGR of 12% and will be valued more than $440 billion by 2025.
The Indian Textile industry has evolved drastically with the passage of time due to globalization. Also, government’s interest to improve the quality and standards of the industry has brought significant change in the textile industry over the years. It now comprises of both handwoven sector and highly automated textile mills. Power looms, knitting sectors and hosiery are the key sectors of textile industry in India.
The future of the prospects of this industry looks positive right now. The roof of FDI has reached 51% with the allowance of 100% FDI in single-brand retail and in multi-brand retail. However, there are still some challenges in the industry that has troubled the manufacturers a lot in the recent times. Key cost factors like higher wage costs and power costs is affecting the overall sector in the country adversely. Also, the manufacturing PMI of the industry has taken a dive and might be taken as a sign of how demonetization and other policies affected the industry.
With all this piling up around the corner, operational excellence and sustainable productivity are the key bread and crumbs of the industry.
Globalization – A phenomenon that has increased competition to a whole new level
Globalization has influenced trade and commerce of all types. Outsourcing has become one of the many resultants of globalization that has successfully influenced the market. Textile giants of foreign countries are trying to set up their market in the country. This has forced the local manufacturers to improve their standard and quality and touch the bars set by these companies to be in the race. This increased competition has obviously benefitted the consumers but also have generated many unavoidable issues for the manufacturers. Also, to achieve these high standards, production and logistics costs have increased dramatically. With globalization and entrance of giants, machinery and technology has also been upgraded thus affecting the profitability and flexibility of this age-old industry. Analyzing current scenarios, to bring out the extended potential of the textile companies and leveraging it through the back channels by promoting “Zero Defect, Zero Effect” is required in today’s textile industry.
To achieve this, and comply with the cut-throat competition, non-value adding activities and inefficiencies should be reduced/ eliminated. At Faber Infinite, we have been helping our clients to evaluate and accelerate this process rather quickly with our specially designed and proven methodologies. At one of our clients – a leading integrated textile manufacturer – our expert team analyzed and identified five key drivers. The targets the team set our course to are as following:
How Faber Infinite flushed these problems?
Cross-functional teams were set up to improve processes, initiate actions and monitor progress. Consequently, this helped the client in implementing the project strategies efficiently and increased productivity. The teams worked on various improvement levers deploying tools like time and motion study, autonomous/ planned maintenance toolkits, quality improvement toolkit and others.
The client saw a significant reduction in soft and hard waste by 80% and 88% respectively. Also, the manpower efficiency and production per day (units) increased exponentially by 167%. The team also managed to make better use of the space in the facility which later benefitted the production in a fruitful manner. Chances of breakdowns in machines were also reduced to half during this entire process.
Similar, mind-boggling results have been delivered by our expert team at several textile manufacturing organizations across Asia Pacific & Africa.
Way ahead for Indian Textile Industry
From industry perspectives, the FDI seems to be in a profitable position and will surely help the traders with the entry of mega-brands in the market. Also, government initiatives like Amended Technology Up gradation Fund Scheme (A-TUFS), Integrated Processing Development Scheme, National Textile Policy, simplified labour laws, IPDS and EPCG scheme are going to take the industry on the right path.
Despite all these, the proper implementation is all that matters and carries value at this crucial stage. Focused approaches like Total Quality Management, Total Productive Maintenance (TPM), Value Stream Mapping (VSM), Time and motion Study can give phenomenal results in different domains of textile manufacturing.
The Faber Infinite team has designed proven frameworks which have delivered results in terms of cost and productivity improvements. Amazing results have been achieved through these designs and proper implementation and refining of systems and processes. Our clients have achieved sustainable productivity with the thorough and precise contrivance of these frameworks.
Written & Compiled by Faber Kishlay Krishna & Faber Mayuri Pandya