Manufacturing is where most sustainability efforts need to be made
Shahi Exports, founded by Sarla Ahuja in 1974, has risen from a modest beginning to India’s premier apparel manufacturing giant, boasting over 113,000 employees and more than 50 advanced facilities nationwide. Renowned for its ethical and sustainable practices, Shahi combines cutting-edge design innovation with vertical integration to set the global standard in high-quality textile production. In an interview with Fibre2Fashion, AGM – Communications & Sustainability Innovations Gauri Sharma talks about the company’s sustainability, ESG and CSR activities.
How has Shahi Exports evolved since its establishment in 1974?
Shahi has come a long way since its establishment in 1974. Over nearly five decades, it has evolved into India's leading garment manufacturer and exporter, with over 50 factories and processing mills spread across 9 Indian states. Our company's unwavering commitment to ethical business practices, sustainability, and the delivery of top-tier quality products has solidified its position as one of the most highly regarded manufacturers of garments and textiles globally. Shahi has consistently been recognized as the preferred supplier for top global brands, serving key markets in North America, Europe, South America, Asia, and Africa.
What sets Shahi apart from other competitors in the industry, given that it is India’s largest apparel manufacturer?
What sets Shahi apart from other competitors in the industry is its vertically integrated textile operations and diverse product range. This integrated approach allows Shahi to have complete control over the entire product development process, from sourcing the raw materials to delivering the final product. This control is a significant advantage, enabling Shahi to ensure that its products meet the highest quality standards and are produced in a sustainable and ethical manner.
Shahi produces an impressive 168+ million garments per year. Can you share some insights into the product development process?
Shahi's production of over 168 million garments per year is a result of its vertically integrated textile operations. Our design and product development infrastructure is comprised of a dynamic team of over 90 skilled designers, each specializing in various domains such as CAD (Computer-Aided Design), 3D Draping, 3D Sampling, textile innovation, and apparel design. Our teams are resolute in providing clients with a seamless and all-encompassing service experience. The product development process involves several stages, starting from sourcing materials to designing and manufacturing garments.
Could you shed some light on Shahi’s ESG governance model?
Shahi has a well-defined Environmental, Social, and Governance model for managing and implementing sustainability initiatives effectively. This model is structured to meet stakeholder expectations, uphold ethical standards, and deliver on commitments transparently. It maintains a structured approach to ESG management, from goal setting and strategy development to execution and oversight. Key stakeholders, including the Executive Committee and the Board of Directors, play vital roles in shaping and overseeing the company's ESG strategy. Designated departments for various ESG projects have their own levels of management, which helps accountability. These include the Environment, CSR, Worker Well-being, Innovation, Training, Skill Development, and Communications.
Can you mention key awards and achievements by Shahi Exports for sustainability and their impact on the company’s commitment to sustainability?
Our sustainability strategy is divided into two areas: ‘Responsible for People & Planet.’ For the Planet aspect, we have made significant strides in water, energy, materials, chemicals, and waste. To share some notable achievements, we're heavily investing in renewable energy. In 2018, we set up an 84MW solar power plant in Karnataka, which caters to 68% of our electricity needs; the goal is to reach 100% by 2026. We have also reduced our dependence on freshwater in garment and textile processing by utilizing 81% and 71% recycled water, respectively.
On the People aspect, have multiple policies to ensure employee health, well-being, and protection of human rights whilst enhancing their soft and technical skills. In addition to this, we have a dedicated CSR team and initiatives across education, health, skill development, and migrant workers’ support.
Shahi has won numerous awards for sustainability and ethical practices. How do these recognitions align with Shahi’s long-term vision?
Shahi’s achievements have been validated through international and national awards from several leading industry bodies, including the Green Organization and the Confederation of Indian Industry. In addition to these, I was recently selected as the Vogue Business 100 Innovators: Class of 2023 as a 'Sustainability Thought Leader.’ This is a recognition of manufacturers’ role in achieving the industry’s sustainability goals.
Awards serve as external validation of Shahi's commitment to principles. They act as credibility for Shahi's claims about its commitment to sustainability and signal to stakeholders that its efforts are credible and effective.
How does Shahi ensure compliance with both national and international standards for sustainability?
Shahi ensures compliance with both national and international standards for sustainability through a multifaceted strategy. It aligns its materials, processes, and testing with global benchmarks to produce products that meet international sustainability standards. The company also holds a wide range of certifications, including Global Organic Textile Standard, Oeko Tex Standard 100, and Business Social Compliance Initiative (BSCI). It follows best-in-class industry standards such as the Social & Labour Convergence Project, Higg Index, and Zero Discharge of Hazardous Chemicals. Additionally, we support the development of new standards and certifications, such as the Yarn Ethically and Sustainably Sourced Standard.
How are Shahi Exports’ efforts in sustainability shaping and impacting sustainable fashion in India?
It is now widely acknowledged in the industry that manufacturing is where most sustainability efforts need to be made, where around 70% of emissions are produced. Shahi’s innovation team scouts for and tests new solutions across regenerative materials, traceability, dry processing, and recycling, among others. We’ve joined multi-stakeholder groups like Fashion for Good, Organic Cotton Accelerator, and the Fashion Pact, so we can be a testing ground for new innovative ideas that can scale across the industry in India and beyond. We are also actively working with the Ministry of Textiles through various advisory committees to shape the ESG framework for the textile industry.
Could you outline Shahi’s plans to achieve its carbon neutrality target by 2025?
Shahi has achieved 36% carbon-neutral energy. This includes both offsite (electricity) and onsite (thermal) energy. For electricity, we have already invested heavily in solar plants and are continuing our expansion of solar and wind farms. For offsite or thermal energy, all our garment factories have phased out coal already, and we are actively working on adopting more carbon-neutral fuels like biomass in our textile mills. Additionally, Shahi is collaborating with governments and innovators to overcome industry-wide challenges, such as a lack of stable and high-quality biomass supply and other alternative energy.
How do you see the future of sustainable fashion evolving in the next 5 years?
There’s already a growing recognition that a majority of the change has to happen in the supply chain, and that’s why manufacturers will play a critical role in sustainable fashion.
First, the next 5 years are critical in ramping up access to innovative materials and scaling up recycling technologies that allow for bringing back textile waste into the supply chain. Second, the industry will continue to accelerate the adoption of renewable energy and look for radical ways of reducing energy consumption or electrifying energy-intensive processes, such as moving towards dry or waterless processing of textiles. At Shahi, beyond investing in renewables, we are investing in research around the electrification of textile mills with renowned scientists.
Third, given the flux of legislation coming in the global North, we are seeing an increasing focus on traceability and transparency, a large responsibility of which will fall on suppliers. As a proactive measure, Shahi partnered with a group of suppliers to develop a comprehensive guide that provides insights into 12 different legislative initiatives across the EU, UK, and US that could impact the apparel value chain.
What are some challenges in implementing sustainability measures in the textile and apparel industry?
I think for a long time, there was a belief or understanding that sustainability creates efficiencies and reduces operating costs. While this is true in some cases, the transformation required in the industry now requires financing and investments in the beginning, and given the cost competitiveness in our industry, this remains a challenge. The question of “who pays” lingers in most dialogues around sustainability.
For ‘process’ innovations such as new dyes, dyeing technologies, or decarbonization in the supply chain, manufacturers must make significant investments that are difficult to make without a long-term commitment from customers or access to financing.
New ‘product’ innovations such as alternate materials and recycling technologies are at a nascent stage and have not scaled yet. They require industry guidance, support, and offtake to scale. Novel solutions will require unprecedented collaboration between brands, suppliers, and innovators.
What are the key CSR initiatives Shahi is focusing on for FY 2025?
Shahi's Corporate Social Responsibility efforts for 2025 are centered on four key pillars: Samarthanam (Skill Development), Soukyam (Health), Shikshanam (Education), and Swacchatam (Environment). Our aim is to make a meaningful and lasting impact on the communities where we operate, aligning with our founder's understanding of the ripple effect that sustained and meaningful employment can trigger. Under Samarthanam, we are empowering vulnerable populations through skill development programs, particularly women, youth, and low-income individuals. Soukyam focuses on improving health outcomes for women, children, migrants, and blue-collar workers. Shikshanam elevates access to foundational literacy, enhancing learning experiences for children in underdeveloped schools. Swacchatam emphasizes environmental sustainability through solid waste management and tree plantation initiatives.
