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Time of India
6 days ago
- Business
- Time of India
Trading traditions: Why cotton-rich Tiruppur is making a shift to synthetics
As the world embraces fast fashion, the demand for man-made fibre (MMF) is growing. To set the stage, more than 70% of the people worldwide currently wear garments made from MMF . 'It is early days,' says Siva Subramaniam , a second-generation manufacturer and exporter of inner wear, T-shirts and sweaters, sitting in his factory office in Tiruppur . However, he firmly believes that 'this is the future path for the industry'. 'We should think about the world market and how the demand is evolving,' says Subramaniam, the Founder & CEO of Raft Garments . It has been two years since Raft Garments started using polyester spandex fabric for manufacturing underwear, a shift from their previous use of only cotton spandex. Reason: 'It is anti-sweat and more durable,' he says, as he displays some of the new polyester pieces now produced at his manufacturing unit in Tiruppur. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo MMF is usually produced through chemical processes or by modifying natural fibres, resulting in materials like polyester, nylon, and rayon. The exporter currently has a portfolio consisting of 85% cotton-based garments and 15% MMF, compared to an earlier portfolio that was entirely cotton-based (100%). In the coming years, Subramaniam intends to increase the share of MMF to 50% as he bets big on MMF. He says that the domestic market is increasingly favouring synthetics while noting that growth is occurring at a steady rate. 'Especially in the sports segment, cotton is almost disappearing, and everyone is showing an inclination towards polyester. We cannot always rely only on cotton and have to look at newer avenues as well. While it is a small percentage right now, gradually the shift can take place with adequate support from the government to make this segment evolve,' he says. Live Events Is MMF the right path forward for them? Also Read: From dirty to dazzling: Why Tiruppur is recycling 130 million litres water everyday For those who might not be aware, MMF is usually produced through chemical processes or by modifying natural fibres, resulting in materials like polyester, nylon, and rayon. With advantages like durability, ease of care, and resistance to wear and tear, these materials are well-suited for various applications. Currently, China leads in MMF production, with an estimated global market share of 72%. A recent report from the Ministry of Textiles on MMF reveals that India's per capita fibre consumption is 5.5 kg; of this, MMF accounts for 3.1 kg, which is among the lowest globally, even below Africa. This indicates there is a huge potential to enhance India's per capita MMF fibre consumption. The textile industry anticipates that India's exports of MMF textiles will rise by 75%, reaching $11.4 billion in 2030, up from around $6.5 billion in 2021-22. However, it is easier said than done. Factors such as raw material costs, quality, capacity, and technological advancements make it difficult for Indian exporters to compete with their global counterparts. Tiruppur, the Knitwear Capital of India , is also facing similar challenges as a cluster as it is slowly moving towards uncharted territories of MMF apparel. Aligning with global demand Tiruppur holds a prominent position globally as a knitwear exporter, catering to the demand of major markets, including Europe and the USA. It exports cotton and cotton-blend T-shirts, dresses, sweatshirts, and other knitted clothes to global markets. Tiruppur's close proximity to Coimbatore , a major textile hub, has also helped it emerge as a globally recognised garment manufacturing hub. In FY25, exports from Tiruppur scaled to Rs 40,000 crore, while the domestic consumption numbers also showed good performance at Rs 30,000 crore. In fact, the cluster accounts for more than 90% of India's cotton knitwear exports. More than 25,000 MSMEs, specialising in dyeing, knitting, embroidery, garment making and exports, operate in the Tiruppur cluster, employing directly over 800,000 workers. A case study by B2K Analytics, a boutique advisory firm, states that the economic activity of the entire town revolves around the manufacture of cotton knitwear for use as vests (mostly sold in the Indian market) and T-shirts (mostly exported). India, as a nation, has traditionally been focused on cotton textiles, with clusters like Tiruppur taking the lead. Currently, MMF consumption is dominant globally, as per B2K Analytics. 'Hence, in order to move towards a higher global MMF share, it is essential to simultaneously focus on MMF along with cotton textiles,' it says. Factors such as raw material costs, quality, capacity, and technological advancements make it difficult for Indian exporters to compete with global counterparts in the MMF category. But what is driving up demand for MMF? The steady rise in the share of MMF in textiles can be attributed to several factors, including its cost-effectiveness, durability, and changing consumer preference influenced by fast fashion. Additionally, the limited availability and constraints of cotton and other natural fibres, along with the growing emphasis on sustainability in business, have further fuelled this trend. Through various policies, the government is also promoting MMF. India currently holds a mere 9.2% share of global MMF production, which offers it a huge opportunity to close the gap with the global leaders, such as China, Vietnam, and Taiwan. 'India has a great opportunity to align with the evolving global shifts in apparel demand,' states the report by the textile ministry. According to a report by iMarc Group, the size of the Indian synthetic fibres (also known as MMF) market reached $3.24 billion in 2024. It estimates that the market will reach $6.53 billion by 2033, demonstrating a compound annual growth rate (CAGR) of 7.50% from 2025 to 2033. The Economic Survey 2024-25 also advocated for the MMF sector to pursue vertical integration and invest significantly in research and development to enhance the quality of its offering in line with competitors. 'MMF-based products range from yoga pants and athleisure wear to technical textiles in aviation, aerospace and automobiles. By tapping into the MMF value chain, India will benefit from the steady rise in global MMF demand,' the Survey states. Challenges at play So, what is really holding us back from going all out in this domain, more specifically in clusters like Tiruppur, which has a bustling textile industry at the heart of it? ET Digital's interactions with exporters in Tiruppur revealed that India has not been able to play catch-up so far to the prowess of China in this segment. While some firms have started to tailor products on MMF buoyed by the spike in global demand, the majority continue to be dominated by cotton-based products. Kumar Duraiswamy, Joint Secretary of the Tiruppur Exporters' Association (TEA), says that the industry has been concentrating more on MMF in the past five years due to fluctuations in the cotton market. But this shift has encountered several bottlenecks. 'China, Korea and Taiwan are leading in this segment (MMF). It is difficult for us to import fabric from China due to Quality Control Orders (QCOs) and the duty structures. So, people try not to import and do it only if necessary. So, it is manufactured in India, but technological challenges persist. Hence, we are asking for government help to upgrade tech for man-made fibres,' he says. According to him, the existing schemes, such as the Production Linked Incentive (PLI) scheme for textiles that came up to promote the production of MMF apparel and MMF fabrics, miss the point of including smaller players in their purview as well. 'The schemes need to be in accordance with the needs of the MSME players. We have been advocating for a PLI scheme where the threshold limit is Rs 10 crore,' he says. Also, it is important to note that Tiruppur has traditionally focused on cotton and has only recently begun to venture into the MMF segment. So, there will be some initial challenges. 'Fibre availability, quality of fibre, and technical expertise—we are lacking in such crucial aspects. We don't want to import from China, but we do want international buyers. However, the quality of fibre one gets from China or Taiwan does not match that of India. Fibre itself is a problem,' highlights Duraiswamy. Chip and polymers form the basis of MMF production. In India, the cost of polymer is higher than in China, which experts identify as another obstacle for exporters to transition to MMF. 'Besides this, very advanced technology is needed for MMF production, and hence technological upgradation is the need of the hour for us to move forward in this direction,' Subramaniam emphasises. Source: Ministry of Textiles While India is exploring advancement in this space, MMF cannot replace cotton-rich products, says Arul Saravaran, Chief Marketing Officer of SCM Garments , a medium-sized garment manufacturer in Tiruppur. 'In categories such as sportswear, people will look at synthetic nets, but there are still a lot of activities that need cotton-rich products. A baby cannot wear 100% polyester, for instance, and neither can a child's T-shirt be like that,' he says. The industry is increasingly discussing MMF, as it envisions a future where natural fibres may go down, Saravaran notes. India still has a long way to go in this sector, he says. 'We are 20 years behind China in terms of the kind of components and fabrics that they can make, the machineries, and the advancements that they have made in terms of production. It is a totally different ballgame,' he says, candidly acknowledging the difference. Gearing up for the future Meanwhile, exporters in Tiruppur are striving to take things up a notch for themselves in this segment. Small exporters are investing to the tune of Rs 2-3 crore to facilitate a gradual shift towards MMF. 'We have invested Rs 3-4 crore in MMF production. The market globally is showing a clear preference for MMF. We want to compete for that share,' says Subramaniam. Additionally, the cluster is also focusing on skill development to enhance its capability for MMF. For this, it has partnered with the governments of Assam and Odisha, who are working closely with TEA to facilitate the processes. On the brighter side, bigger exporters are making the shift a little more seamlessly. Medium-sized exporters, however, are gradually seeking to expand their portfolio of MMF. Saravaran of SCM Garments says that they aim to increase the contribution of MMF to 10%. 'One has to gear up for it and to invest in it to make it very price competitive. We need to invest in machines and process the fabric here. Enterprises who are unable to invest can work with active mills who supply fabric in India itself. So, they can manufacture it in India,' he says. Anand Ramanathan, Partner and Leader, Consumer Products & Retail Sector, South Asia, Deloitte India, notes that to truly scale, it is essential to have a presence in MMF and across every segment of that particular market to achieve dominance. 'In the case of cotton, factors like its seasonality, global commodity status, and a lot of uncertainty around it bring in a downside to the business in terms of risk. The textile business is all about cost, so for MMF, the questions to consider are whether there is even any new technology being incorporated and how efficiently it is being produced. Another key question is that it requires a great level of automation,' he explains. It all comes down to the manufacturing factors of production—land, labour and capital, he says. 'We have to be competitive in all these aspects. MMF is an important segment, and there must be something which incentivises people to look beyond cotton.' He suggests that while the Indian industry is quite competent to enter this segment, everything cannot be done through the MSME sector. 'Right now, we will need larger players who are already in the export value chain to come in—a lot of investment has to play out, and they can use a bunch of ancillary ecosystems to upgrade and contract manufacture. So, the big-ticket investment has to come from large industry houses for things to step up,' he adds. On the policy front, there have been some changes, including the government's notification of a uniform GST tax rate of 12% on MMF, MMF yarn, MMF fabrics and apparel, which addressed the inverted tax structure in the MMF textile value chain, helping players in the space. Previously, the GST rates on MMF, MMF yarn, and MMF fabrics were 18%, 12%, and 5%, respectively, which caused compliance issues with the tax regime. While these have been steps in the right direction, more needs to be done to support the sector and propel it to greater heights where it can compete with global players. In the case of Tiruppur, the combined efforts of local exporters and government support can significantly help the cluster in transitioning to a new and unexplored terrain more seamlessly, especially with technological advancements. This will help Tiruppur in safeguarding itself against global headwinds in the case of cotton-based products while also exploring alternative revenue streams more effectively. The industry and the government need to collectively step up to make this possible and bring in innovation for a cluster that has the potential and capability to take MMF production to the next level.
Fashion Value Chain
23-06-2025
- Business
- Fashion Value Chain
Masstige is Redefining Indian Luxury Renaissance
Ms. Ananya Tiwari, Post-Graduate Academic Scholar in Fashion Management, National Institute of Fashion Technology, Ministry of Textiles, Daman campus Dr Vidhu Sekhar P, Assistant Professor, Department of Fashion Management Studies, National Institute of Fashion Technology, Ministry of Textiles, Daman campus Abstract The masstige or affordable luxury segment is gaining traction in India, driven by rising disposable incomes, changing consumer preferences, and digital connectivity. This trend is characterized by luxury goods and services that are accessible to a wider audience without compromising on quality or prestige. Indian consumers are seeking premium products that reflect their lifestyle, status, and personal taste, with a growing demand for unique, limited, and sought-after collections. The masstige market in India is expected to continue growing, with a projected growth rate of 10% over the next five years, exceeding $200 billion by 2030. Brands like Good Earth, Nicobar, and Nappa Dori are popular choices among Indian consumers seeking premium and sustainable products. As consumers become more discerning and demanding, luxury brands will need to adapt to changing preferences and priorities, including sustainability and exclusivity. Keywords Masstige, Indian luxury market, digital consumers, sustainability, craftsmanship, personalization, aspirational demographic, global luxury slowdown, artisanal ecosystem, Made in India Introduction The global luxury goods market, valued at $286.10 billion in 2024 and expected to reach $405.80 billion by 2033, growing at a CAGR of 3.76%, is experiencing a slowdown in certain segments. However, India's luxury market is poised for growth, driven by a young and aspirational demographic, rising affluence, and increasing demand for premium products. Despite the global slowdown, India's luxury market is expected to grow at an annual rate of 10% over the next five years, exceeding $200 billion by 2030. This growth is driven by the rising affluence. India's growing middle class, with increasing disposable income, is driving demand for luxury goods and experiences. The Young and Aspirational Demographic with over 65% of its population under 35, India boasts a young and dynamic consumer base, prioritizing experiences, personalization, and exclusivity. Evolving Luxury: India's Cultural Edge and Masstige Opportunity Global Luxury Market Trends is mainly dominated by Asia Pacific region holding a revenue share of 39.9% in 2024, driven by increasing disposable incomes and a growing middle class. The Apparel accounting for 25.9% of global revenue in 2024, driven by product innovation, exclusivity, and evolving fashion trends. The most valuable luxury brands in 2024 include Porsche, valued at $43.117 billion, followed closely by Louis Vuitton at $32.235 billion, and Chanel at $26.068 billion. Hermès and Gucci also rank high, with valuations of $16.676 billion and $14.864 billion, respectively. These iconic brands have established themselves as leaders in the luxury market, known for their exceptional quality, craftsmanship, and timeless appeal. While the Indian luxury market holds immense potential, it also poses challenges. Luxury brands need to balance pricing strategies to cater to India's price-conscious consumers. The strict regulations require local partnerships, which can deter foreign luxury brands from entering the Indian market. By understanding the unique challenges and opportunities, luxury brands can capitalize on India's growth story and establish a strong foothold in this dynamic market. India's luxury market is a mindset that needs to be understood rather than a market that needs to be 'entered.' The challenge for international luxury brands is not only to navigate strict FDI regulations and skyrocketing import taxes, but also to rethink what luxury means in India and reevaluate their initial expectations of what it should look like. The demand is genuine, but it is encased in paradox: a buyer who worships tradition but consumes hypermodern, who purchases luxury but looks for purpose, and who drives a Mercedes but haggles over MRP. Where and how luxury is consumed in India is where the real change is occurring. Delhi and Mumbai's influence as centres of luxury is eroding. The next generation of luxury customers isn't just exploring Emporio's marble floors; they're also perusing Instagram in places like Indore, Coimbatore, and Guwahati, yearning for experiences that align with their values and goals. The Western luxury playbook doesn't work here. Retail reimagining is required, not just expansion, with flagship stores serving as both physical locations and digital ecosystems that are rich in regional aesthetics, local language, and cultural codes. Although regulatory constraints, high taxes, and disorganized infrastructure may appear to be obstacles, they can also be reframed as an appeal to reorganize the luxury value chain, beginning with manufacturing in India. International brands have a strong chance to base their production within India's centuries-old artisanal ecosystems rather than paying a premium to import finished goods. and pricing for belonging, as well as affordability. Costs can be cut by sourcing and producing in India, but more significantly, it provides authenticity, which is something that customers around the world are beginning to value more. India offers unrivalled material culture and skilled human capital, from the leather craftsmen of Dharavi to the brocade weavers of Varanasi, from the intricate hand embroidery of Lucknow to the metal artisans of Moradabad, often at a fraction of the cost, but with unmatched finesse. Imagine the possibilities if global brands considered India as a co-creative partner as well as a sourcing destination: a Dior lehenga woven in Banaras, a Gucci bag featuring illustrations by Pattachitra, or a Hermès scarf block-printed in Bagru, each piece carrying not only aesthetic but also emotional and geographical depth. However, authenticity, sustainability, and innovation are more important than cost-effectiveness. 'Made in India' can be a mark of soul and storytelling in a time when aware consumers want to know where, how, and by whom their products are made. In addition to improving their ethical reputation, brands that emphasize these origins use cultural intelligence to capitalize on the rising demand for luxury around the world. Additionally, this creates a huge masstige opportunity: luxury brands can reach India's aspirational yet budget-conscious consumer base by co-creating mid-tier, culturally rich, and design-forward collections produced in India. This market is looking for identity, craftsmanship, and meaning rather than logos. Brands can grow without compromising their values by investing in Indian craftsmanship and providing affordable luxury lines with strong local appeal. In the end, the Indian luxury market requires brands to become deeply rooted in the Indian culture rather than just localizing. The key to success will be creating a luxury that feels personal, welcoming, and distinctly Indian rather than trying to emulate Parisian extravagance. Adaptability is not only strategic, but also important in this dynamic environment.
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Business Standard
11-06-2025
- Business
- Business Standard
Centre sets up a new task force to boost country's textile exports
In a bid to enhance India's textile exports at a time when the country is signing trade deals with developed nations, the government has set up a new task force that will look into sector-specific bottlenecks such as regulatory hurdles, cost competitiveness and lack of enough export credit. Commerce Secretary Sunil Barthwal has been appointed as the chair of the task force with representation from officials of Department of Commerce, Ministry of Textiles, Directorate General of Foreign Trade, along with representatives from export promotion councils, industry associations and exporters. In its first meeting, the task force decided to set up several issue-specific sub-groups, which will be led by relevant ministries in coordination with export promotion councils and industry representatives. These sub-groups will provide actionable recommendations to the task force, the commerce and industry ministry said. The discussion touched upon a wide range of issues affecting the textile value chain. These included upgradation of Environmental, Social and Governance infrastructure in garment manufacturing, use of renewable energy in manufacturing, European Union's Deforestation Regulation (EUDR), strengthening e-commerce for export growth, labour issues, cost competitiveness for productivity enhancement, skilling, and branding. Participants also raised issues with export-related incentives such as RoDTEP (Remission of Duties and Taxes on Exported Products) and RoSCTL (Rebate of State and Central Taxes and Levies). They also sought collateral support for export credit for MSMEs. Stakeholders also discussed PM MITRA textile parks, development of new Jute Diversified Products (JDPs), separate harmonised system (HS) codes for Geographical Indication products, productivity enhancement for natural fibres such as jute and matters about the Export Promotion Mission.
Fashion Value Chain
07-06-2025
- Business
- Fashion Value Chain
Reimagining Indian Jewellery: The Rise of Small Brands
Arya Prameh, Fashion Management Scholar, National Institute of Fashion Technology, Ministry of Textiles, Govt of India, Daman Campus Small jewellery brands are playing a transformative role in the Indian market by embracing innovation, storytelling, and personalization. Unlike traditional jewellery houses, these emerging labels focus on creating pieces that reflect individuality and self-expression, tapping into the growing demand for unique, versatile, and meaningful designs. The rise of digital platforms, social media, and online retail has allowed these brands to reach wider audiences, particularly younger consumers who seek jewellery that resonates with their personal style and values. This shift is further amplified by the increasing popularity of trending jewellery types such as arm jewellery statement arm cuffs and bangles that have gone viral on social media alongside bold gold pieces, colorful gemstones, layered necklaces, and geometric designs. These trends reflect a blend of contemporary aesthetics with traditional Indian craftsmanship, appealing to fashion-forward buyers who want jewellery that is both striking and wearable. Source: Technavio A prime example of this movement is Quirksmith, founded by sisters Divya and Pragya Batra. With Divya's background as a NIFT gold medalist in jewellery design and Pragya's expertise in business, Quirksmith was launched in 2016 from a modest beginning at a Bangalore flea market. The brand quickly gained recognition for its poetic, conversation-starting silver jewellery that encourages wearers to 'wear your emotions.' Quirksmith's commitment to empowerment is evident in its workforce, where over sixty percent are women, and in its support for more than fifty artisans across India. Their designs blend traditional Indian elements with contemporary aesthetics, incorporating popular trends like statement arm jewellery, layered rings, and bold geometric shapes. By focusing on authenticity, craftsmanship, and community, Quirksmith has built a loyal following and set a benchmark for how small brands can thrive in a competitive landscape. The success of brands like Quirksmith signals a broader shift in the Indian jewellery sector. New entrants are accelerating market growth by offering fresh perspectives, innovative designs, and competitive pricing, compelling established players to adapt and innovate. As consumers increasingly seek jewellery that tells a story and aligns with their values, small brands are not only capturing market share but also redefining what jewellery means in India. They are turning accessories into powerful symbols of identity, empowerment, and creativity, ensuring that the future of Indian jewellery is as dynamic and diverse as the country itself. The rise of trending pieces such as arm jewellery, bold gold, colorful gemstones, and layered styles highlights how these brands are blending tradition with modern trends to meet evolving consumer tastes.
Fashion Value Chain
05-06-2025
- Business
- Fashion Value Chain
Leveraging AI Agents in Apparel and Textiles to enhance efficiency and Innovation
Dr Tanmay Kandekar, Associate Professor, Department of Fashion Technology, National Institute of fashion Technology, Ministry of Textiles, Mumbai Campus Amarthya Shekhar K N, Academic Scholar, Department of Computer Science, Govt. Engineering College, Trichur, Kerala The integration of artificial intelligence (AI) in the apparel and textile industries is transforming the way businesses operate, creating new opportunities for innovation and growth. On one hand, AI-powered technologies are revolutionizing design, production, and customer experience, enabling companies to stay competitive in a rapidly evolving market. However, the increasing use of AI also raises concerns about job displacement, as automation and machine learning algorithms take over tasks traditionally performed by humans. As the industry navigates this double-edged sword, it is important to understand the impact of AI on job creation and displacement, and to explore strategies for upskilling and reskilling workers to thrive in an AI-driven future. Artificial intelligence autonomously makes decisions and takes actions autonomously without human intervention. They perceive the environment through data, sensors, or other inputs. AI agents use algorithms and logical reasoning about the data and make decisions. Their actions include sending messages, controlling devices, and interacting with humans. There are different types of AI agents that influences decision making. Simple Reflex Agents react to current state without considering future consequences. Model-Based Reflex Agents uses internal models to reason about the world. Goal-Based Agents make decisions based on goals and desired outcomes and Utility-Based Agents choose actions that maximize utility or value. They apply in contexts and work as virtual assistants to enable as chatbots and voice assistants, and robotics ensure autonomous interaction with the environment. As recommendation systems, it gives suggestions for products or services. I powered agent works as a tool for informed decision-making as a decision support system. They are intelligent and can learn, reason, and adapt. They have autonomy to operate independently and interact with humans and other systems. The applications of AI agents are transforming industries and revolutionizing the way we live and work. It has the power to create Job and displace it. World Economic Forum expects that it can create 97 million new jobs by the end of this year,2025. The jobs are created in AI development, implementation, and maintenance professionals, as well as positions focused on leveraging AI for innovation and growth. A survey from LinkedIn shows that a 30% annual growth rate for AI-related roles in fields like AI integration, organizational transformation, and AI implementation consulting. While the industry fears about a potential job displacement, many companies anticipate net job creation due to automation, with 50% of companies expecting automation to lead to new job opportunities. However, this revolutionary technology requires careful handling and regular updates to avoid potential downsides. The jobs roles that are at risks are those involve repetitive, rule-based, or data-driven tasks are those more susceptible to automation. The jobs of customer service representatives, car and truck drivers, data entry clerks, administrative secretaries, and accounting professionals have the potential to be absorbed by AI agents. According to US job loss data, AI was directly responsible for 3,900 job losses, accounting for 5% of the total in May 2023. The report says that AI may replace 300 million jobs globally, with 9.1% of all jobs worldwide potentially being affected. Manufacturing, customer service, and administrative sectors are among those most vulnerable to AI-driven jobs that faces the job displacement. Technology has a history that displaced many routine jobs and created new and promising avenues. To remain relevant, workers will need to develop AI-related skills, as 83% of businesses believe that AI skills determine job security, a way to upskill and reskill. The cut throat competition forces companies to reimage their workforces, combining human creativity with AI capabilities to drive innovation and growth and the industry adaptation is quick and faster in this sector. The AI Job market is continuously evolving, while AI poses challenges, it also presents opportunities for workers to transition into new roles and industries.
