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In­no­va­tion in yarn is at the cen­tre of growth at Vardhman

In this process of change, adding value has to be bal­anced by vi­a­bil­ity, both from a prac­ti­cal and com­mer­cial an­gle. The changing needs of the mar­ket and fash­ion trend too have to be taken into con­sid­er­a­tion. As of now, func­tion­al­ity (com­fort) has be­come very im­por­tant for the con­sumer – be it stretch fab­ric, easy main­te­nance or wrin­kle-free fab­ric, but things like th­ese are just a per­cent­age of the to­tal demand and not yet a mass demand for bulk pro­duc­tion, “Once we are in the process of de­vel­op­ment, we look at many as­pects, but what ac­tu­ally gets to the mar­ket de­pends solely on how the demand moves; some of th­ese de­vel­op­ments gain suc­cess, while oth­ers re­main in the R&D files; may be for fu­ture use. To get ideas for de­vel­op­ment, there is a lot of cross-ger­mi­na­tion of thoughts that happens be­tween the or­gan­i­sa­tion and the man­u­fac­tur­ers,” says Neeraj.

The com­pany ad­mits that com­pe­ti­tion in the yarn seg­ment has in­creased sub­stan­tially in last 3-4 years, par­tic­u­larly in the ba­sic qual­i­ties. Thanks to the change in poli­cies that have in­creased sub­si­dies for set­ting up spin­ning units in many states. Even in this tempt­ing sce­nario, Vardhman de­cided not to ex­pand their ca­pac­i­ties and in­stead con­cen­trated on value. “We have worked hard to study our sys­tems and pro­cesses and check what in­ter­nal changes we can make, what im­prove­ments we can bring to the sys­tem and what value additions we can do,” shares Neeraj. For the past 4-5 years, Vardhman has been dili­gently mov­ing its prod­uct range from com­modi­ties to value-added prod­ucts. As of now, 30 per cent of its yarn be­ing pro­duced is go­ing into the value-added seg­ment. Out of its to­tal pro­duc­tion of yarn, one third is used in­ter­nally, one-third sold in do­mes­tic mar­ket and an­other one-third is ex­ported.

Be­sides in­creas­ing com­pe­ti­tion in yarn mar­ket due to over­ca­pac­ity, which has re­sulted in the cus­tomer get­ting a lot of choices, the trend of fast fash­ion is also im­pact­ing the tex­tile value chain. More­over, the changes that are hap­pen­ing in the trend-driven fash­ion in­dus­try have re­sulted in de­crease of lead time along the sup­ply chain, and what used to be an ac­cepted de­liv­ery sched­ule of 150-170 days has now reduced to 60-90 days, which is ex­pected to de­crease even fur­ther. “Th­ese are is­sues with hid­den op­por­tu­ni­ties, the crit­i­cal dif­fer­en­tia­tors are: how big or­gan­i­sa­tions like Vardhman are looking to add value to their prod­uct; and how they are go­ing to in­te­grate it into their pro­cesses since the prod­uct range is also im­prov­ing. So, on one hand, the num­ber of days is de­creas­ing and on the other, you need to add value to the prod­uct. Whichever com­pany is go­ing to balance this equa­tion, will be the ul­ti­mate win­ner. I think it’s a won­der­ful and ex­cit­ing time and we are looking at it very pos­i­tively. At Vardhman, we are al­ways looking at adding value to the prod­uct for our cus­tomers and this is our growth strat­egy also,” con­cludes Neeraj with con­fi­dence about the fu­ture.

Neeraj Jain, Joint Man­ag­ing Direc­tor, Vardhman

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