Efficient supply chain management is crucial for timely delivery
Eastman Exports is a leading knitwear manufacturer based in Tiruppur, India. With a strong focus on product development and a creative design team, the company produces quality garments that guarantee customer satisfaction. In a chat with Fibre2Fashion, Chairman N Chandran talks about his company’s operations, sustainability practices, supply chain management, use of technology, design team, and the challenges faced by the Indian textile and apparel industry, along with the government’s efforts to support the industry.
What inspired you to start Eastman Exports, and what has been your greatest achievement so far?
Tiruppur has a semi-arid climate, which makes it extremely conducive to store cotton. Hence, before Tiruppur became popular as one of India’s largest knitwear exporters, it was a warehouse hub for cotton farmers and yarn makers.
In the late 1900s, it was one of the biggest white fabric producers but did not have proper modern dye houses to meet the export demand. After my graduation, I decided to bridge this gap. I began with a small home-based process system. From there to now having turnover of around ₹2,000 crore, we have come a long way with state-of-the-art fabric processing unit and yarn manufacturing capacities.
Presently, we are manufacturing apparel across our 30 factories to serve more than 50 customers across the world. About 60 per cent of the revenue comes from the US market, 25 per cent from Europe, and the remaining from other countries including Australia, Canada, and others. Our backward integration into yarn and fabric processing enables us to compete in the global market.
What are some of the key trends shaping the textile and apparel industry today, and how is your company positioning itself to capitalise on these trends?
Sustainability, traceability, and circularity are among the buzzwords now, and it is a good development. Garment manufacturing requires natural resources in considerable quantities, and it is important that manufacturers focus on minimising their carbon footprint.
The new and advanced technologies in material science have steadily contributed to the adoption of ethical practices by industry leaders. To reduce environmental degradation and extend traditional functionality, they have helped to create modern, eco-friendly, light, resilient, and easy-to-process fabrics. This will help in sustaining the growing demand for natural fibres.
I am happy to share that Eastman Exports’ production processes and practices are already in line with industry trends. We were one of the pioneers in using Zero Liquid Discharge technology to treat industrial wastewater in the 2000s.
To highlight a few of our measures, we recycle around 70 per cent of overall wastewater. We aim to become water positive by 2030. Moreover, organic cotton, regenerative organic cotton, recycled cotton, and sustainable fibres like linen, hemp, bamboo etc are often used in our products.
What steps have you taken to ensure sustainable and ethical practices throughout the supply chain, from sourcing to manufacturing to distribution?
Eastman Exports is a member of the Sustainable Apparel Coalition (SAC), which developed the Higg Index, a suite of tools for the standardised measurement of value chain sustainability. In addition to some of the measures that I have already mentioned, we at Eastman Exports have also converted 41 per cent of our coal-based energy sources to biomass, which has immensely contributed to lowering greenhouse gas (GHG) emissions.
We also plan to switch to renewable energy sources for 80 per cent of our electrical energy requirement by 2025. It will help in reducing around 44 per cent of GHG emissions. In addition to our energy initiatives, we are also committed to sourcing our cotton responsibly. We only use BCI, Fairtrade, and GOTS cotton, which helps to support farmers.
We also recycle PET bottles and sea waste into fabrics, as recommended by our clients. Overall, we are constantly looking for ways to improve our sustainability practices and reduce our environmental impact. We are committed to being a responsible and sustainable business.
How has the demand for textiles and apparel evolved over the years, and what changes do you foresee in the coming years?
Constant innovation has taken the industry to the next level. Industry players adopting data analytics, AI, Internet of Things (IoT), and 3D technologies have redefined clothing production. For example, 3D printing technology is becoming quite popular to minimise waste and improve sustainability metrics. Along with sustainability, customers are also focusing on digitisation at points in manufacturing and merchandising.
The skyrocketing demand for low-cost but sustainable clothing has prompted brands to inject funds into research and technology. Also, people are now inclined towards minimal living. It has led to a steep rise in demand for temperature-sensitive clothes, which will boost sustainability in the apparel sector. Moreover, the widespread adoption of the internet and the growth of e-commerce platforms have significantly contributed to the increase in consumerism.
The challenge is to meet the ever-evolving consumer demand with a fine balance between price and quality. Many high street fashion retailers have started procuring for more than 40 seasons a year, compared to 4-8 seasons earlier. We can successfully meet our customer demand as we are backward integrated and have an in-house design team and studio.
How do you differentiate your company from its competitors in terms of product quality, design, and customer service?
The biggest difference between Eastman Exports and its competitors is our ability to deliver customised products in a short time to our clients. The vertical integration of the manufacturing process helps us to do so.
At the same time, we have India’s only DSIR-approved research centre for the knitwear industry that is consistently filing patents with IPR India. The integrated R&D labs, equipped with the latest testing equipment and technologies, help us to develop quality and cost-effective garments.
Nevertheless, our diverse team is a brilliant mix of the best in technology, design and manufacturing, which has always helped us to be a step ahead of our competitors.
What steps have you taken to streamline the supply chain and ensure timely delivery of orders?
Efficient supply chain management is crucial for timely delivery to our customers worldwide. Our supply chain benefits significantly from backward integration into yarn and fabric processing. We manufacture more than 70 per cent of the required yarn type and quality in-house, while we procure specialty melange yarns and other yarn types promptly based on received orders, ensuring a smooth production flow. Processing, the core of the entire value chain, is also done in-house, which helps our company deliver quality products on time. Without exaggeration, we can confidently say that Eastman has the fastest product turnaround time of approximately ten days, compared to the industry standard of over 25 days.
What role do emerging technologies, such as automation and AI, play in your operations, and how do you see them shaping the industry in the future?
I have always believed that technology is an essential component of business growth and success. We continually upgrade our technologies and machinery to streamline our supply chain. Emerging technologies like automation and AI have helped us enhance our production, distribution, and supply chain efficiency while also pushing us to become compliant with Industry 4.0 standards.
Eastman has successfully automated several key processes, reducing human error and waste, and improving productivity with the help of advanced technologies such as machine learning, artificial intelligence, and the IoT. As a result, we can now collect and analyse real-time data to make informed decisions and optimise our operational capacities.
How has Eastman Exports responded to changing consumer preferences for sustainable and eco-friendly products, and what opportunities do you see in this area?
Eastman Exports is a consumer-centric entity. It is one of the few textile exporters which houses an integrated Research and Development (R&D) laboratory—the place where all the magic happens. The labs are focused on product development based on constantly evolving industry trends and consumer preferences. The company’s R&D centres and in-house labs are fully equipped with the latest testing equipment and technologies to introduce sustainable and eco-friendly products. This includes the development of new materials, yarn, fabrics, new processes, value additions, value-adding performance finishes and combinations of various processes and materials for unique product variety.
The R&D wing also helps to optimise consumption of natural resources such as energy, water, raw materials, process auxiliaries and chemicals and reduce the environmental impact by recycling and reusing solid waste, wastewater and salt. It also helps us to improve our products and processes to reduce GHG emissions.
Over 80 per cent of our processes are covered under Higg FEM/FLSM. This new trend of sustainable and eco-friendly products will bring in a gamut of changes and opportunities for the industry. Soon, it will become one of the primary parameters to attract new clients and investments. It will also be one of the key drivers of automation and streamlining of the entire value chain.
How do you ensure that your manufacturing processes are efficient and cost-effective, while also maintaining high standards for product quality and safety?
The adaptation of technological solutions and integrating them seamlessly in our supply chain has given us the edge to realise maximum efficiency whilst maintaining the quality of our products and ensuring the safety of our workforce. The constant upgrading of machines not only improves the quality of deliverables but also reduces energy (and resource) consumption, helping us combat rising costs.
Advanced specialised machines are procured for the operations that can be mechanised and yield the best consistency, ensuring quality. For most operations, the in-house industrial engineering team creates special zigs and profiles. This not only improves efficiency but also ensures consistent quality.
The protective equipment for operators and machines is consistently monitored to ensure the safety of workers. We provide constant training to our operators, equip them with the necessary skillset to handle operations, place operation specimens within their visual range, implement continuous monitoring systems, and promote doing things ‘Right First Time’ to maintain standards at all levels – efficiency, quality, safety, and deliverables.
How do you leverage digital marketing and e-commerce platforms to reach new customers and expand your market share?
We extensively use e-commerce platforms and digital marketing tools to sell our home grown brand – Huetrap. We understand the importance of collaborating with top marketplaces to expand our customer base. We have partnered with leading marketplaces in India such as Myntra, AJIO, Amazon, and Flipkart. Our partnership with these marketplaces enables us to showcase our wide range of on-trend products with compelling descriptions, high-quality images, and competitive pricing.
We rely on analytics tools provided by these marketplaces to measure our performance, make data-driven decisions, and enhance our offerings. Additionally, we take advantage of advertising and promotional tools to boost our visibility and attract more customers. Furthermore, we leverage the robust supply chain and shipping infrastructure offered by these marketplaces to ensure that our products are delivered to customers in a timely and efficient manner.
Eastman group’s infrastructure comes very handy to manufacture and market our Huetrap products. The group’s fully backward integration capabilities enable our retail operations to maintain and improve quality standards and timeliness.
What steps have you taken to ensure the health and safety of workers?
At Eastman, we are committed to expanding our employees’ health and safety practices through meaningful programmes that make a difference in the workplace. We have adopted a robust framework created through deliberate and consistent actions, resulting in long-lasting benefits for our people and their safety. We take responsibility for our employees and implement various measures to promote their safety and well-being, as they are our greatest human asset.
When employees feel safe within their working environment, they can make a significant contribution to their job responsibilities and the achievement of desired goals and objectives. On the other hand, when employees are not safe, they may feel vulnerable and apprehensive. Therefore, Eastman formulates effective measures that enable employees to feel safe and confident. Some of the measures we take include providing equal rights and opportunities, formulating and implementing effective policies and programmes, promoting effective communication, promoting workers’ participation and social dialogue, and promoting psychological safety.
Do you collaborate with customers to design and develop new products? What role does customer feedback play in this process?
One of the notable roles of our design team is to envision an idea and bring it to life using the capabilities of our organisation. Our aim is to align with the client’s requirements and/or wishlist. Research is a vital part of the overall design process, and we encourage our designers to attend leading exhibitions, fashion shows, and yarn & fabric fairs worldwide to understand current trends in the fashion industry. With a highly motivated design team, we also foster a co-generative model with our clients to reinforce their confidence in our offered ideas and designs. Our design adoption rate with clients is over 40 per cent. Our design team consists of 25 people, including two in New York, two in the UK, and the remaining team members in India.
What are some of the biggest challenges facing the textile and apparel industry today, and how can these be addressed?
One of the major challenges faced by the Indian textile and apparel industry is intense competition from neighbouring countries such as China, Bangladesh, Vietnam, and Indonesia. Indian companies are currently trying to resist their monopoly in the lower-priced garment market while battling a lack of tech and infrastructure development. This is coupled with increasing raw material prices. Additionally, global demand is contracting due to the increased effects of recession and inflation.
Eastman, however, focuses on mid to high-fashion apparel, where competition is relatively less. More than 75 per cent of our production goes to high street brands that are in the mid and high-fashion categories.
The Indian government is supporting the textile industry as much as possible to make India more competitive in the global market. This is being done through various measures such as the PLI schemes, PM MITRA parks, emphasis on synthetic fibre, and extending the RoSCTL scheme until 2024. We believe that the next decade is crucial for India in the textile space.
