We presented a detailed roadmap to the Textiles Minister
Dr. SK Sundararaman stands as a prominent figure in the Indian textile industry, renowned for his multifaceted leadership roles and extensive contributions to the sector’s growth and development. Currently, as the Chairman of The Southern India Mills’ Association (SIMA), he plays a pivotal role in shaping policies and initiatives that impact the regional textile landscape.
Additionally, he holds the position of Managing Director of Shiva Texyarn Limited, a vertically integrated textile conglomerate involved in spinning, fabric production, processing, garmenting, and technical textiles.
Dr. Sundararaman’s educational background is equally illustrious, having earned an MBBS degree from Kasturba Medical College, Mangalore, and a master’s in business management from Cambridge University, UK.
Beyond his corporate responsibilities, Dr. Sundararaman is actively involved in academia and research, serving as the Managing Trustee of the Firebird Institute of Research in Management, Coimbatore. His commitment to education and scholarly pursuits highlights his holistic approach to leadership, aiming not only for business success but also for intellectual and societal advancement.
Dr. Sundararaman’s influence extends beyond individual companies and institutions. He has been a prominent member of various national-level business forums, leveraging his insights and expertise to advocate for industry-wide reforms and advancements. His past roles as Chairman of CII, Coimbatore, and Educational Convenor of CII, Tamil Nadu, highlight his proactive engagement in shaping regional industrial policies and fostering collaborative initiatives.
While serving as the Chairman of the Indian Technical Textile Association earlier, Dr. Sundararaman contributed immensely towards spearheading initiatives that promoted innovation and excellence in technical textiles, a critical growth area within the broader textile sector.
In a recent candid discussion with Fibre2Fashion at the SIMA Texfair 2024, SIMA Chairman Dr. SK Sundararaman shared profound insights into the challenges and opportunities facing the textile industry. His perspectives shed light on the industry’s evolving dynamics, emphasising the need for innovation, sustainability, and global competitiveness.
What are the key challenges currently impacting the textile mills in southern India?
The south Indian textile mills are some of the oldest and most established manufacturers of textiles in India and have long held a dominant position in the market.
The members of SIMA account for approximately 46 per cent of the spinning capacity in the country, setting a benchmark of excellence over the years.
Despite their historic success, these mills today face many challenges. One of the primary issues is the rising cost of living and increasing input costs, a situation comparable to that in industrialised or advanced economies. The cost of land and power have surged, alongside other essential inputs, putting financial pressure on these mills.
Furthermore, the aspirations of the local workforce have also shifted towards careers in IT and education-enabled sectors, creating a labour retention problem within the textile industry.
What are some strategies these mills can implement to address the challenges of rising cost and shifting workforce aspirations?
One needs to adopt a multifaceted approach to navigate the existing challenges. To deal with the issue of rising costs, the mills must focus on continuously adding value to their products, which entails enhancing the per-unit value addition, whether through more efficient use of power or by improving labour productivity.
Beyond traditional cost management practices, they also need to emphasise on softer aspects such as branding and maintaining trust in product quality. This trust, cultivated over years of consistent performance, is indispensable. Success in this context is not merely about investing in new machinery but rather about leveraging their well-established reputation and advancing towards higher standards in Environmental, Social, and Governance (ESG) practices, sustainability, and traceability.
By capitalising on their leadership in these critical areas, the mills can strive to enhance their overall value proposition.
A key initiative in this regard is spearheaded by SIMA, which is promoting the development of premium Indian cotton comparable to Pima and Giza varieties. This initiative aims to create a niche for premium extra-long staple cotton and cotton-based products within India, thereby establishing a new segment of high-value offerings in the market.
What key initiatives do you suggest the new government at the centre should introduce to address the challenges faced by the textile industry?
Recently we met the Minister of Textiles and relevant officials where we have articulated our needs, stressing the critical importance of achieving raw material dominance rather than merely maintaining parity. This entails ensuring an abundant supply of high-quality cotton available at prices approximately 10 per cent lower than those on the international market. Such a measure would significantly help mitigate the inherent and unfair disadvantages that the Indian textile industry currently faces, particularly in light of preferential trade taxation and tax exemption policies that benefit competitors from other countries.
To address the challenges, we are advocating for two principal actions. First, we propose the removal of duties on cotton to facilitate its free availability and to allow the entry of international cotton into the Indian market. This would help stabilise the supply chain and reduce cost. Second, we suggested efforts to double cotton production within India by increasing the yield per acre. Enhancing the yield would involve making cotton cultivation more financially rewarding for the farmers as well.
To support these initiatives, we have compiled and submitted a comprehensive 47-page memorandum. This document details the strategies required to achieve the goals, highlighting the need for coordinated efforts across various ministries. Inter-ministerial cooperation is crucial to address the multifaceted aspects of this challenge, from agricultural practices to trade policies.
We believe, by doing so the Indian textile industry can secure a more stable and advantageous position in the global market, fostering long-term growth.
What specific training programmes has SIMA implemented to address the skill gap issue amongst the workforce, which is considered a major challenge by the stakeholders?
The Southern India Mills’ Association is actively engaged in running managerial training programmes that focus on developing a comprehensive skillset among managers, with a particular emphasis on softer elements such as ESG practices, which are pivotal growth drivers in today’s textile industry. These programmes go beyond traditional technical training to foster a well-rounded approach to management.
At the workforce level, SIMA collaborates closely with government initiatives like Samarth and other skill training programmes aimed at enhancing technical skills within the textile sector. By partnering with these initiatives, SIMA ensures that the workforce is equipped with the necessary technical competencies to meet industry demands effectively.
In the realm of technical textiles, SIMA collaborates with associations such as ITA to cultivate specialised knowledge in niche areas. This strategic partnership allows SIMA to contribute to the development of advanced skills and expertise required in specialised segments of the textile industry.
While skills development initiatives are proliferating nationwide, SIMA recognises the importance of enhancing the textile sector’s appeal as an aspirational career choice. This involves augmenting value addition across the industry, making it more attractive to the future generations of workers.
What strategies do you think India should adopt to strengthen its position in the global market?
India possesses intrinsic strengths in cotton cultivation, supported by its extensive historical background and the largest acreage dedicated to cotton farming. However, the country faces a notable challenge: it currently records the lowest yield per acre among major cotton-producing nations. This challenge, fortunately, presents a straightforward solution through the adoption of cutting-edge international seed technology.
By embracing current-generation seeds, India has the potential to double its cotton yield per acre, thereby significantly enhancing its competitiveness in the global cotton market.
Cotton has maintained its status as the preferred material for garments for centuries, underlining its enduring popularity and demand. By focusing efforts on increasing the yield of Indian cotton, spanning from standard varieties to extra-long staples, India can pave the way for a promising new era in cotton production and the textile sector.
How do you envision positioning the textile industry for sustainable growth and global dominance during your tenure as the president of SIMA?
In its illustrious 90-year journey, SIMA has witnessed remarkable transformations within the textile industry. From pioneering the adoption of technology to witnessing the widespread expansion of textile manufacturing, SIMA has continually evolved and prospered.
Looking towards the future, my vision for SIMA revolves around nurturing a new breed of entrepreneurs who grasp the criticality of branding and exhibit a deep sensitivity towards ESG factors. These visionary leaders of tomorrow will harness India’s abundant resources and capabilities, creating integrated and transparent value chains. By articulating and promoting these values, they will establish strong partnerships with global brands and stakeholders.
I foresee this new generation of entrepreneurs not only capitalising on India’s inherent strengths but also addressing its challenges through innovative solutions. By fostering a culture of innovation and sustainability, they will propel the textile industry to new heights of success and global prominence.
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