Ashish Saraf
Managing Director Technocraft Industries (I) Ltd
We will continue to focus on value-added segments & reduce carbon footprint
From its inception in 1972 till 1994, Technocraft continued developing and increasing the production of drum closures until it became one of the largest and most recognised suppliers of drum closures in the world. Subsequently in 1997, the company diversified into manufacturing of cotton yarn. Its unit was accorded a 100 per cent export-oriented unit (EOU) status. The cotton yarn division has forward integrated its operations by production and export of garments through its subsidiary. In an interview with Fibre2Fashion, Technocraft Industries’ Managing Director Ashish Saraf discusses the current state of the Indian and global industry.
How would you describe the current state of the Indian textile industry?
The current situation of the industry is very bad. Probably one of the worst times in the last 15-20 years. There is absolutely no demand for textile products, in the value chain. Prices of yarn have come down by 20-30 per cent, and still there are no buyers in the market. Many spinning mills in the country are either completely shut or have reduced their production by 20-40 per cent. The largest consumer, the US, is battling high rate of inflation, which has impacted the sales of all the large retailers, as a result of which, most of them are sitting on large inventory, and are asking factories to hold all shipments. As a result, the entire value chain is badly affected. Europe is going through its own turmoil, with 10 per cent inflation rate, and high unemployment. All these economic and geopolitical factors have caused demand to dry up globally. India’s cotton yarn export is down by 40 per cent during Q2 (July-September) of this year.
Has the Russia-Ukraine crisis had an impact on the industry?
Yes, it has impacted very badly. Russia has cut all gas supply to EU, which has caused a huge energy crisis in Europe. Manufacturing sectors in the EU do not have energy to run their plants and are being forced to shut down. Costs of food, transport, energy are skyrocketing, making it very difficult for the families to manage financially. Euro zone is facing an unprecedented inflation rate of 10 per cent, as compared to an average of 2.2 per cent over the last 20 years. The Russia-Ukraine crisis has worsened the already depressed EU zone. Apparel is now the least of their priorities in terms of family spending budget. This is certainly going to have a negative impact for the textile industry in the short to medium term.
Do you see India being benefitted from the China Plus One strategy?
Yes, I certainly do see India being benefitted by the China Plus One policy in the long term. India is the largest producer of cotton in the world, and I believe that as far as the cotton textile segment is concerned, India is positioned very well to grab this China Plus One opportunity, if it plays its cards well. The only thing lacking in India is scale of operations. Large retailers in the world, who even though have the desire to come to India, are not able to do so due to the lack of capacity available. India needs good policies and government support, especially from the labour laws point of view, to create a sustainable environment for industries to go for large-scale operations. India can be a dependable one-stop solution for raw material, yarns, fabric, and readymade products.
Which are your major markets for textile products and accessories?
Our main markets are India, Sri Lanka, the US, Egypt, Europe, and Southeast Asia.
How has the import of cotton yarn from China impacted the domestic industry?
This is a very serious concern. Already many mills in India are either shut down or are working at 50 per cent capacity due to lack of demand. Now with China dumping the market with cheap yarn, the fate of the Indian mills will only get worse.
What new innovations and technologies are you working towards?
One of the biggest challenges we face in India is the low efficiency at which we run our factories. This makes us extremely uncompetitive in the global market. In our company, we are focusing on adopting LEAN manufacturing practices. We have already seen a significant reduction in our inventories, and shortened lead times. All of this has reduced our operational costs. In addition, the quality of the produce has also improved.
We are also aggressively working towards sustainability, with focus on water saving, energy reduction, waste reuse and reduction etc. We have registered our company on Higg platform, which is an international Index to measure and disclose a company’s sustainable levels. We have recently been verified with a score of 75 per cent on overall sustainability, and we continue to pursue higher levels.
What has been the growth story for the last two years and what targets are set for the next two?
Over the last two years, we have been extremely focused on value addition in our textile division. We have consciously increased the sale of value-added products like dyed and printed fabric, and garments. Our fabric sale has increased by 60 per cent, and garment sale by 100 per cent over the last two years.
We have started a new greenfield project of fibre dyed melange yarn, which is a value-added yarn.
We hope to see our company achieve sale of 1,000 tons of melange yarn a month, 1,000 tons of dyed and printed fabric a month, and 2 million garments a month over the next 2-3 years.
What are the future plans at Technocraft?
We would like to continue to focus on value-added segments and grow them steadily in the future. We also plan to further reduce our carbon footprint and make our manufacturing a more sustainable operation. We plan to expand our melange yarn production, fabric capacity, and garmenting capacity.
Published on: 03/11/2022
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
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