Textile coloration industry in India

Transcription

1 doi: /j x Textile coloration industry in India M D Teli Department of Fibres and Textile Processing Technology, Matunga, Mumbai , India drmdteli@udct.org This review paper discusses the diversity of the textile sector in India, including its nature, the number of stakeholders and its effect on the overall national economy. It focuses on the significant role the coloration industry is expected to play in the near future, as this is the most problematic step in textile production with respect to profitability, planning and technology. While carrying out analysis of the textile and clothing industry, it also deals with the transformation the industry has undergone in the last two decades in terms of the selection of textile product mix in different regions of India from the point of view of profitability, the use of modern technology and selection criteria of colourants and specialised chemicals. These changes are viewed in respect of improved quality demands, measures undertaken to minimise the pollution level of the environment, and other related factors. In parallel, the growth of the dyestuff and speciality chemical industry, which has a direct relationship with this industry, is also discussed. It attempts to reflect upon the efforts of the Indian government in encouraging modernisation of the textile processing industry in terms of the Technology Upgradation Fund Scheme and other policy supports in relation to the response from the industry. Finally, the paper highlights the amount of human resource development needed to achieve the ambitious targets the government has put before the textile and clothing industry. Introduction The textile industry is the major industry in India, contributing 4% to the gross domestic product (GDP), accounting for 20% of the industrial production and 17% of export earning. More than 40 million people in the country are directly or indirectly employed in the textile and clothing sector and, next to the agricultural sector, it is the largest employment generator. As per the latest Textile Policy 2000, modernisation intended to acquire a competitive edge has not been considered at the cost of eroding the capacity for employment generation. The present trade surplus of $US15.6bn is expected to grow substantially in the coming years. The ratio of textile to clothing, which was around 50:50 approximately 5 years ago is now around 40:60, indicating the growth of garment making at a higher rate than that of textiles. In , the export of textile and clothing increased by 19%. The clothing production in value terms was $US27.86bn, which included an export of $US8.64bn. Textile production amounted to $US19.14bn, with $US9.24bn worth of exports. The total value of textile and clothing production in India was $US47bn and an ambitious target of $US95bn has been set for , at least $US50bn of which is expected to be exports [1,2]. In 2003, the share of branded textiles increased from 21% to 24%. In India, a rapid growth in economy is predicted as, every month, a million domestic consumers are added [3] and over the next decade, a billion consumers will be added to the global market [4]. The Vision 2010 plan for India envisages a further generation of 12 million jobs and an investment of Rs crore in this sector for modernisation. Analysis of the Indian textile industry With textiles being a major industry of India and also one of the largest generators of employment, the impact of 1 billion is equal to one thousand million; an Indian crore is equivalent to 10 million developments in the textile industry is reflected not only on the national economy but also on the social fabric of the country. Obviously, any serious attempt to analyse this industry has to first take into account its internal and external environment; that is, to carry out an analysis of its strengths and weaknesses on the one hand and the opportunities and threats facing it on the other. Strengths A diverse fibre base is one of the major strengths of the Indian textile industry. India is the second-largest producer of cotton after China and has overtaken the USA (counting year (CY) 2006) [5]. India is also the second largest in silk production, the largest in jute and the seventh largest in the production of wool. India is the fourth-largest producer of synthetic fibres, with a 12% global share in cellulosics and a 6% share in polyester fibre production (CY 2004). This places the country in an enviable position [6]. India has large technical expertise and relatively cheap labour, giving a competitive edge. India has world-class spinning mills, which can offer flexibility in the production of smaller lots. The dyestuff and speciality chemical industry is well developed and there is a strong presence of Multi- National Companies of Non-Indian Origin (MNCs). The positive and responsive policy support of the Indian Government is reflected in schemes such as the Technology Upgradation Fund Scheme (TUFS), which gives 5% interest reimbursement for modernising the processing sector and a credit-linked capital subsidy of 10%. Weaknesses Weaving, processing and garment making are weak links and, to a great extent, modernisation is needed in these areas; the TUFS scheme initiated by the Indian government offers special incentives for modernisation of these weak links. ª 2008 The Author. Journal compilation ª 2008 Society of Dyers and Colourists, Color. Technol., 124,

2 The industry suffers from poor work practices and low productivity. The industry is decentralised (95%) and fragmented and therefore the advantages of economies of scale are not available. Clusters of smaller units are thus being developed to enhance the collective capacity of these units to take up orders from global retailers. The Indian textile machinery industry is not well developed and, in the majority of cases, textile and garment production still depended on foreign machinery. Utility costs (such as the cost of water, electricity and steam) are very high. The infrastructure is also not well developed and therefore time is often wasted in transportation, making it difficult to maintain delivery schedules. This is an important aspect with regards to the stiff global competition. Ever-increasing demands of buyers in terms of quality and production standards pose tough challenges to the industry. Because of high labour costs and stringent environmental controls in Western countries, it is well known that global manufacturing of textiles and allied industries has, for the most part, been shifted to Asian countries. Therefore, in spite of weaknesses in the Indian textile and clothing industry, India will continue to play an important role as a manufacturing centre for textiles and clothing. Opportunities The period after the multi-fibre agreement (MFA) offers a great opportunity in the new quota-free regime. A strong domestic market on the domestic front: the estimated consumer class population is projected to grow to 500 million by As the standard of living of this large young population improves, their need for clothing will also increase; for example, one estimate indicates that per capita consumption of the fabrics will increase from the current 19 to 32 metres, implying enormous scope for the growth of the textile and clothing sector in the coming years. The use of credit cards has grown by 26% per annum in the last 5 years and that of debit cards by 113% [7]. There has been a significant increase in the working female population in India (approximately 6% growth over 1991), providing additional spending power for the average household [8]. Occupied mall space in various urban and semi-urban areas has also increased significantly (2 million ft 2 in 2001 increased to 28 million ft 2 in 2005). Global buyers such as Wal-Mart, Levi, Gap, JC Penny, Marks and Spencer and other foreign retailers are sourcing their products from India as an alternative to China. Wal-Mart alone bought $US200 million worth of clothing in the last year and intends to increase this to $US3bn in the coming year. The American giant Gap is also outsourcing clothing from India. The Singaporebased Crocodile International has announced its plans to invest an additional $US52 million [9]. In order to exploit these opportunities and to overcome the challenges facing the Indian textile and clothing industry, the Indian government has established the Specialized Integrated Textile and Apparel Parks (SITP) and Export Promotion Zones (EPZ) with improved infrastructure facilities, and the industry has also been encouraged to establish exportoriented units in these areas. Threats Appreciation of the rupee in recent months has adversely affected export earnings and has significantly eroded profit margins. Measures taken by the Indian government, such as the refund of duties and levies, have not been able to contain the losses incurred. The formation of trade blocks and trade partnerships by various countries, excluding India, is working against the business interests of the country. Because of location, India is at a disadvantage as transit times to key markets are long. There is tremendous pressure on pricing and delivery schedules. The competition from other neighbouring, lowcost producing countries is intense. Indian industrialists are aware that, in a borderless, globalised, free trade economy survival of the fittest is going to be the governing principle of the industry. With the inherent strengths of this industry, all possible measures are being taken to satisfy customers with competitive costs, quality, after-sales service and proper delivery schedules, so that the opportunities are optimally exploited. Conscious of the weaknesses and limitations, as well as the threats, modernisation of the industry and development of the infrastructure are at the top of the agenda. Growth industry The MFA expired on 1 January 2005 and now it is a free for all trade, which brings in global players to compete with the domestic ones. In this emerging era, world textile and clothing exports are expected to grow from $US422bn in 2005 to $US655bn by 2010 with a compound annual growth rate (CAGR) of 6.3%, whereas that of India will grow from $US16bn to 50bn by Although the opportunities are many, the challenges of maintaining international quality, cost-effectiveness and proper delivery schedules are massive. The Indian textile industry is now consciously attempting to cater to the requirements of niche and high-end markets. In order to enhance the profitability, the immediate goal in front of Indian manufacturers is to climb the value chain by supplying finished fabric and or garments instead of supplying them in grey or unfinished form. Hence, the present weak links existing in the Indian textile industry, such as weaving, processing and high-end garment production, are being specifically addressed by putting every effort and resource towards modernising these sectors. Special weaving, processing and garmenting parks are being created in response to the challenges and opportunities faced by the industry. The investment for modernisation, which was only around Rs crore in , has gone up to Rs crore in and it was expected to have doubled in , sending a clear signal that the industry is getting the feel of the post-quota regime. 2 ª 2008 The Author. Journal compilation ª 2008 Society of Dyers and Colourists, Color. Technol., 124, 1 13

3 The 9% growth in fabric production and 22% growth in export during the quota-free regime (in ) substantiates the potential existing in this business, though continual enterprise and development in particular parts of the industry are required if this favourable situation for India is to be maintained. Investment aimed at modernisation has helped to improve the productivity and profitability of the industry in India. This has been demonstrated clearly and beyond doubt in the report on the Evaluation of Technology Upgradation Fund Scheme (worth $US5bn), presented to the Indian government s Textile Ministry during the interim period and in the final report by Technopak. Both these reports clearly suggest that the significant increases in the profitability, productivity and unit value realisation, in addition to domestic as well as export turnover, were as a result of the modernisation carried out under the TUFS. Having recognised this fact, the industry has thrown out its initial inertia and reluctance towards investment and is now coming forward to make additional investments in this sector [10]. The biggest challenge India is facing today is not only to increase its share in the global market from 3% to at least 6% by 2010, but also to protect its own domestic market, which is also open to global players. Obviously, textile fibre fabric processing in an eco-friendly way combined with international quality has become an immediate goal for the Indian textile manufacturers. Costeffectiveness with brand image and variety are the demands made by modern customers. As mentioned earlier, global retailers such as WallMart, JC Penny and Marks and Spencer are also looking at India as an alternative source for the manufacture of their branded garments. It is essential that the best technology and machinery are made available in India so that the other advantages, such as cheap labour, the availability of diverse raw materials and a skilled technical workforce, could be combined to manufacture high-quality goods cost-effectively. Indian industrialists and the government are conscious of these prerequisites and are taking necessary steps in this direction. The domestic scenario of fabric production India s GDP is increasing at a rate of 8% and there is a direct relationship between GDP and fibre consumption [11]. India is the second-largest cotton-producing country and in , India produced 270 lakh (27 million) bales of cotton (each of 170 kg) and this figure is expected to rise by 11% during , giving an anticipated amount of 300 lakh (30 million) bales [12]. Although, up until now, cotton has been considered as the fibre for the masses in India, currently there is a trend in the fashion industry whereby designers are using cotton as their style statement, instead of chiffons and georgettes. This is mainly because of the comfort factor, which is being given preference in niche markets. This is also becoming true globally as everyone wants to go green, representing its environmentally friendly nature. Natural fibres therefore become the designer s choice [13]. As mentioned earlier, even on the domestic front per Table 1 Fabric production [14] Year Cotton Blended 100% non-cotton Total (million m 2 ) capita fabric consumption is anticipated to rise from 19 to 32 meters as the purchasing power of the consumer increases. This, combined with the factor mentioned previously, indicates a quantum leap in fabric demand and consumption patterns in coming years. Data on the domestic production of cotton are given in Table 1. In the past decade ( ), there has been a 50% increase in blended cotton fabric production and a 117% increase in non-cotton fabric production, which clearly indicates a strong demand for synthetic and semisynthetic fibres. India has various sectors producing these fabrics and therefore the diverse fibre base, which is India s strength, will help to meet the demand for noncotton fabrics. Fabric production is dominated by the power-loom sector, which is decentralised and fragmented. It is reported that, in , the mill sector produced only 1487 million m 2 of fabric against the power-loom sector production of million m 2. The remaining fabric was produced by the hand-loom sector [14]. This is a result of the relocation of the composite textile business to smaller towns because of high utility costs and stringent environment controls in large cities such as Mumbai and Ahmedabad. During the last decade, rapidly increasing land prices in the best cities compelled the industrialists to shift their textile manufacturing businesses to more viable places, meanwhile exploiting the opportunity of developing their land in the cities into shopping malls or residential and commercial complexes. Also, a new trend of achieving higher profit margins by focusing on single activities such as only spinning, weaving or processing, became the norm in the textile industry. This gave rise to the establishment of clusters of spinners, power looms and processing houses. A relatively small volume of fabric is produced on hand looms, leading to a low level of production. However, this involves artisan work with ethnic designs and it represents India s rich cultural heritage. Over 15 lakh (1.5 million) hand looms exist in various villages of India. Every state has a hand-loom development centre where support is provided in order to alleviate the challenges faced by this sector in this era of modernisation and globalisation. Piracy of certain handloom products and motifs is also in practice and such imitated products made on power looms give stiff competition to genuine hand-loom products, which are relatively expensive by comparison. The government is therefore providing special incentives to come out with hand-loom brands and labels which guarantee that the items are manufactured on hand looms. This should have some enabling effect on the hand-loom sector which is currently faced with grave challenges to survival. ª 2008 The Author. Journal compilation ª 2008 Society of Dyers and Colourists, Color. Technol., 124,

4 Synthetic and semi-synthetic fibres In , the global fibre market was estimated to be 64 million tonnes, constituting 40% polyester, 40% cotton and cellulosics, 17% polypropylene, polyamide and acrylics, 2% wool and animal fibres, and 1% silk and other fibres. In India, however, the production of fibres constitutes 54% cotton, 31% polyester, 5% viscose and 10% the remaining fibres [15]. In India, the synthetic and semi-synthetic fibre and yarn industry constitutes staple and filament yarn manufacturing units of cellulosic and non-cellulosic origin. The cellulosic fibre yarn industry comes under the Indian government s Ministry of Textiles, whereas the synthetic fibre or non-cellulosic fibre industry comes under Ministry of Chemicals and Fertilizers (Department of Chemicals and Fertilizers). Naturally, the growth of this sector depends on the coordinated policy direction and support from both ministries [16]. In the case of nylon, filament fibre production was and million kg for 2002 and 2003, respectively [17]. The data on domestic production of synthetic and semi-synthetic fibres are given in Table 2. These data indicate that viscose experienced a 7.7% increase in production during , whereas during the same period, polyester registered a 46.9% growth. Among these fibres, polyester production (staple and filament) in 1990 was 53%, growing to 75% in 2006; this increase was as a result of the increase in size of the consumption class of the population, cost-effectiveness of the polyester fibre and its compatibility for blending with other natural fibres. In addition, the land available for cotton cultivation is correspondingly decreasing and hence such a rise in polyester fibre can be justifiable [15]. With a capacity of production of 2 million tonnes per year, Reliance Industries Ltd has become the largest manufacturer of polyester in the world and its capacity growth has been 25% CAGR since The cornerstone of this phenomenal growth has been as a result of their policy of backward vertical integration, wherein the manufacture of raw materials, the exploration of oil and natural gas, and the refining of petroleum were undertaken by the company. In addition to modifying the manufacturing processes with an aim to reduce costs and intensify the process, additives are also being manufactured to produce cationic and easy dyeable polyester, so that polyester blends with natural fibres can be very easily dyed without affecting the texture and strength of the natural fibre [18]. The dominance of polyester is clearly visible in the production and consumption of synthetic and semi-synthetic fibres. However, the polyester per capita consumption in India is still relatively low at approximately 1.4 kg in comparison to the world average of 3 kg, and consumption in China and the USA at 4 and 8 kg, respectively, which clearly indicates opportunity for growth in the consumption of polyester in future. Exports of textile and clothing In the year , India recorded $US12.45bn of textile and clothing exports, which was 23.76% of India s total export earning. In the year , this figure increased to $US17.88bn, with a 17.41% share of the total export earning. This clearly reflects remarkable growth, with an approximately 46% increase in the industry over the 4-year period [19]. An analysis of the exports with respect to variety of textile and clothing is shown in Table 3. The data suggest that the year-on-year growth ( against ) of the variety of textiles and clothing significantly increased from 25% to 43%, with the exception of synthetic and semi-synthetic textiles, which reflected a relatively restricted growth of only 9.7%. Of the total exports, almost 45% was garment export, 27% cotton textiles and 12% was the share of synthetic and semi-synthetic textile export. This further indicates that the potential for export in terms of garments is much more than fabric alone and thus it is appropriate that the Indian garment industry concentrates its efforts on consolidating its strengths. Therefore, as mentioned earlier, the government is establishing integrated garment parks and it is predicted that this sector, which is labour intensive, will play a paramount role in strengthening the economy, as well as providing large-scale employment. Of the cotton textile exports, the share of yarn, fabric and made-up garments varied as 30%, 20% and 50%, respectively [20]. The capacity for spinning in India is world famous and therefore such a Table 3 Exports of textiles and clothing a [20] Sector Growth (%) Ready-made garments Cotton textiles (yarn, fabrics, made-up items) Synthetic and semi-synthetic textiles Others Total a Value US$ (millions) Table 2 The domestic production of synthetic fibres [14] Year Viscose Acrylic Polyester Polypropylene Total (million kg) (57) a (668) a 1.97 (14) a (50.8) a (995.3) a 2.46 (24.41) a (53.17) a (1013.0) a 2.74 (20.82) a a Values in parentheses are for filament fibre 4 ª 2008 The Author. Journal compilation ª 2008 Society of Dyers and Colourists, Color. Technol., 124, 1 13

5 share of the cotton yarn export is understandable. The large-scale demand for cotton made-up items and garments is being met by a number of very modern units, which have been established recently, manufacturing bedlinen, pillowcases, terry towels, etc. It is fair to say that their dominance in the cotton textile export market (50%) is justifiable. The Indian textile processing industry The growth of consumption and export of fabrics and garments, implies a corresponding growth in the consumption of textile specialty chemicals and dyes used for coloration. The processing of such a large volume of fabric and clothing is carried out in different locations belonging to the hand-processing units, composite mills and independent process houses of various sizes. Within the Indian textile processing industry there exists a lot of diversity. Hand processors run their units with a processing capacity of 2000 metres day, while the composite mills generally have metres day capacity. There are independent process houses which process most of the fabrics and have a capacity of metres day (small), metres day (medium) and metres day (large). There are 2314 registered processing units, of which 83 are composite units, 155 are semi-composite units and 2076 are independent processing units. Of these processing units, 227 run using modern technology and 1775 are based on medium-level technology, whereas, in the remainder, out-of-date technology is still being used. In response to the growing demand of processing, in the last 5 years the number of power processing units increased at a rate of 8% per annum [7]. Among the power processing units, composite mills process 15% of the total woven 8.9 billion metres of fabric processed. Semi-composite units process 17%, whereas independent process houses do the rest. The low level of modern technology in processing is reflected by the fact that only 0.04 billion metres of fabric is being processed on state-of-the-art processing machines [21]. Hence, processing is the weakest link in the entire textile supply chain and it is highly fragmented. The lack of funds for modernisation, environmental restrictions and lack of a skilled workforce for the high-tech machinery are the issues the industry is faced with. In the pre-quota period, India supplied yarn and grey fabric to the world, whereas now it has become inevitable that each and everyone concerned should climb upon the value chain and supply ready-made garments, or at the most finished fabric, to take advantage of the enhanced profitability available at the higher level of the value chain. To meet these demands, the application of modern technology is a must and therefore it is appropriate that we reflect upon this sector in order to understand the present status of the textile machinery industry and its ability to cope up with the growing demands of new machinery. The textile machinery manufacturing sector During the 1990s, and when the quota regime was still in force, the indigenous textile machinery manufacturing sector in general was working under a protective environment. Hence, in the absence of competition from foreign manufacturers, they dictated the terms and often orders took 2 3 years to complete as it was a sellers market. This complacent attitude, which arose out of the protected business environment, hindered development of this industry. Only the spinning and texturising machinery sector showed great progress by providing world-class machines manufactured within India. Machines for other sectors, such as weaving, knitting and processing, as well as garmenting, are, at the present time, imported from other countries. The production of processing machinery in India is therefore relatively poor with very few players. To make matters worse, the whole machinery industry does not come under the Textile Ministry, but is put under the Ministry for Heavy Engineering Industry and therefore, unless and until a proper coordination of the two ministries is achieved, targeted growth in the textile and clothing sector will remain as a dream to be realised. The Indian government has been conscious of this need to bridge the gap and therefore holds inter-ministerial coordination committee meetings from time to time in order to take the stock of the situation in the context of the targeted goals. During the quota period, high import duty had been put on to foreign textile machinery, a practice that had proved to be counterproductive, as textile manufacturers in the country suffered in terms of quality and competitive costs. With the advent of the World Trade Organization (WTO), offers of such protection to the indigenous industry are slowly being abolished. The governmentinitiated TUFS also allowed the import of second-hand weaving and knitting machines, a policy that was not initially welcomed by the indigenous engineering industry. However, the policy had to be considered as a whole and, for the long-term benefit of the majority, these measures have paid up in improving the competitive edge of the Indian textile and clothing industry. The data on domestic production of textile machinery, as well as export import, are given in Tables 4 6. The data in Table 4 show that, over a decade, the production of textile machinery in general has increased by 100% and that of processing machinery by 150%. The increased demand for textile machinery has been a consequence of the enhanced textile and manufacturing activities in this region. However, the total volume of this business is still very small, indicating that the Indian textile and machinery industry has a long way to go to become a significant player in this sector. In terms of value, the export of textile machinery from India is also quite insignificant, although it has also increased by 42%; most of the export has been to the Middle East and African countries. The import of all kinds of textile machines during this period is indicative of the increased demand for the manufacture of textiles and high-quality clothing. Over a decade, imports increased by 260%, reflecting the ability of the Indian textile and clothing sector to grow. The garment and knitting machine sector exhibited a growth in the import of machinery of ca. 419%, a direct reflection of the tremendous boost received for the manufacturing of clothing as a result of international demand. ª 2008 The Author. Journal compilation ª 2008 Society of Dyers and Colourists, Color. Technol., 124,

6 Table 4 Production of textile machinery, parts and accessories (in Rs. crores) [47] Year (E) Spinning Weaving Processing (52%) a (22%) a (78%) a 250 Knitting Others Total (0.14%) a (26%) a (31%) a 3000 (36%) a a Values in parentheses indicate an increase on the previous year Table 5 Exports of textile machinery, parts and accessories (in Rs. crores) [47] Year (E) Total Table 6 Imports of textile machinery, parts and accessories (in Rs. crores) [47] Year (E) Weaving (73%) a (30%) a (95%) a 1610 Knitting garments (30%) a (140%) a 1460 Others Total (43%) a (109%) a 7500 a Values in parentheses indicate an increase on the previous year The manufacture of good-quality, defect-free long lengths of fabric is another pre-requisite in boosting the manufacturing of clothing and, to meet such demands, shuttle-less looms are imperative. An increase in the importing of weaving machines, mainly shuttle-less looms, by 494% over the decade is indicative of India taking necessary steps in strengthening its weak link of weaving. Although it is not yet possible to achieve a complete breakaway from the importing of processing machinery, these data clearly indicate the growth of the Indian textile industry. In general, except for a few manufacturers of stenters and curing chambers, most of the processing machinery is imported and India s reliance on foreign manufacturers of textile processing machinery is inevitable. As mentioned earlier, the processing sector is one of the weakest links in the textile value chain and the most critical one. The debate continues as to whether to go for batch processing or continuous processing and its pros and cons are being considered. In fact, both sides have justifiable reasons, given the diversity of the market available in India and the age-old flexibility of the Indian textile industry in terms of lot size as well as variety of lots. Hence, both kinds of processing routes will continue to be followed in India as the market is too competitive and, when lot sizes are smaller, batch processing has no substitute. However, to meet the demands of international retailers, continuous processing seems to be providing an edge in terms of quality, volumes and competitive costs. The utility costs get distributed over larger volumes and the per-unit weight bases turn out to be low; for example, water required for the continuous processing is 35 l kg of fabric vs 100 l kg required for batch processing. Reduction in use of water correspondingly decreases the load on effluent and it reduces thermal and electrical heating costs as well as chemical and dye costs. In the last 5 years, a number of continuous processing units have been established in different parts of India, as an increasing number of industrialists are realising the techno-commercial benefits of these. The nature of product mixes Although there has been a significant increase in the establishment of continuous processing units, the majority of the processing units making use of batch processing are of small or medium size. Over the years, the flexibility in processing different varieties of textile fabrics with varied lot sizes has been considered as one of the strengths of the Indian textile industry. Given the overall size of the industry, there is enough scope for both routes of processing to coexist and, with various levels of technological upgrading and the fragmented nature of the processing industry, a similar structure will continue. In order to meet the demands of multinational retailers for fabric and garments on a large scale, the Indian government is encouraging a cluster-development approach, whereby special processing parks are established that would collectively be able to meet such demands. In those cases, standardisation of quality, common effluent treatment plants and other norms could easily be maintained to meet the demands of international customers, as a cluster of these facilities would be made available for each individual processor. 6 ª 2008 The Author. Journal compilation ª 2008 Society of Dyers and Colourists, Color. Technol., 124, 1 13

7 Selecting the best route to follow for processing depends on the kind of product mixes being handled at the given point of time and the lot size. Therefore, it is worth discussing these variations. The major products contributing to a significant share of textile processing include: Dress material: this could be polyester, cotton viscose or a blend of those. Polyester wool blends are also in vogue. Depending upon the lot size, continuous or batch processing is followed. Plain and yarn dyed shirting and suiting fabric: often cotton dominates the production scenario, but polyester and cotton blended yarns are also used. Sheeting and furnishing fabrics: these are of cotton and linen fibres and often a continuous processing range is used to process them. In this case, the goal is to obtain long length, defect-free, wider-width processed fabric to a high quality standard. Denim: invariably it is made of coarse cotton, although blends with Lycra are also manufactured. The processing of denim is carried out on special ranges, as warp yarns are dyed while being sized and then the fabric is manufactured. Terry towels: this is another sector receiving increasing attention from the manufacturers as the demand from international consumers is growing. For the manufacturing and continuous processing of terry towels, most modern plants are set up in India to build up the capacity of this industry. As cotton is a major fibre in these product mixes, when batch processing, Jumbo Jiggers and JT-10 machines are employed for scouring and bleaching, whereas dyeing is carried out on jiggers or by the pad hot-flue technique. Stenters and curing machines are used for drying and curing and, finally, zero zero shrinkage finishing is applied. Polyester and its blends are processed on softflow jet and air-flow jet dyeing machines. The jet dyeing machines of both Fong and Devrekha have been found to save a lot of energy because of the low liquor ratios, as well as the use of air flow. The advantages of batch processing include low capital cost, flexibility to process smaller lots and better control over fabric quality, whereas the disadvantages are the high operating costs and lot-to-lot variation. The global retailers using India as an alternative sourcing base require large volumes of international quality, which is possible using a continuous processing operation, making use of continuous pre-treatment and continuous dyeing machines (cold pad batch, continuous pad steam and continuous pad hot flue) and stenter, curing and zero zero shrinkage machines. The majority of these machines are supplied by overseas manufacturers such as Monfrots, Beninger, Fongs, Storks, etc. An investment of about Rs million is required for a continuous processing unit for woven cotton fabric and an increasing number of such processing units have been established in India in the last 5 years. However, continuous processing of polyester and its blends requires a lesser investment, in the region of Rs million, as this cycle is relatively shorter than that of cotton processing. Printing is also a significant part of textile coloration and around 78% of the printed material is screen-printed; of that, 59% is done by rotary screen, 17% by automatic printing and 2% by hand screen-printing. Only 16% is roller printed and approximately 6% is transfer printed. Inkjet printing has just recently been in India and it is used in <0.1% of the total printed fabric. But, because of its operational ease and that almost no effluent problems have been observed, its use is expected to grow to approximately 10% by In addition, it is easier to get digital printed samples approved in a shorter time. The various colours used in different types of conventional printing include reactive, disperse, acid and vat dyes and various pigments. Similarly a lot of natural and synthetic thickeners are produced in India which are used for printing [22]. In other words, factors like the product mixes, sizes of the lot, and the types of market catered to decide the selection of textile machinery as well as the route of textile processing. The present situation regarding textile machinery appears to be that India has to continue to rely on imported machinery until such a time that local machinery manufacturing units with international connections are established within the country. Garment processing In the global market, a quick response to changing fashion trends is becoming the order of the day. Clothing plays an important role in today s market and it is used to make a style statement as well as to be an expression of the wearer s personality. The days when one would buy cloth to make garments by hand have gone with the present-day trend to buy ready-made garments off the shelf. To meet the demands of this type of fastchanging scenario in the retail clothing market, it is obvious that garment processing has become increasingly popular. Garment dyeing, denim washing and garment finishing are the most important aspects of garment processing. In India, the main centres of garment processing are Tirupur and Bangalore in the south, Ludhiana and Delhi in the north, and Mumbai and its nearby regions in the west. In the last decade, garment processing has gained increasing importance in business. More and more fabric manufacturing companies are producing branded garments to complete the value chain. Among them, denim has acquired the status of the fabric of today, and is accepted by all age groups worldwide. There are 900 installations for the manufacture of denim, with 7.7 billion metres of capacity in the world, with Asia carrying 46% of sales. With a global growth of 4% per annum, India enjoys 8% of the installed capacity. The Indian denim industry is growing at 15 20%, with 24 mills engaged in the manufacturing of denim, of which Arvind Mills and Raymond are at the forefront. Both these companies have gone into clothing, shirting and knits and their annual sales figures are around $US300 million each [23]. The relatively low cost of production, an increasingly young population and the boom demand have helped the denim sector to grow at a rapid rate. Obviously, garments made up of denim are further processed and washed to obtain a variety of special effects and finishes on the denim [24]. ª 2008 The Author. Journal compilation ª 2008 Society of Dyers and Colourists, Color. Technol., 124,

8 Consumer and retail preference for garments which have a pre-washed and distressed look, specialised finishes, etc. and a rapid response have been the dominant factors driving the growth of this sector. The majority of the young population of India, and overseas customers, need a rapid response by the market to their demands and thus it is natural that garment processing will continue to grow. Garment dyeing is widely practiced for knits and woven tops, and items like shirts, dresses, skirts, sweaters, t-shirts, trousers, pantyhose and jeans are increasingly processed in this sector. These garments are made of variety of materials, which include mercerised cotton, cotton loop-pile, acrylic high-bulk fibres, sheer nylon for hosiery, wool and wool blends, etc. With changing fashion and consumer demand, garment dyeing trends are also changing. Garment dyeing was first developed using paddle machines and now new machines are used based on the rotary drum principle. Some classes of dyes, such as reactive dyes, vat dyes, etc. are used only in the case of expensive garments where high fastness properties are needed. Sulphur dyes are used for navy and black shades. Pigment dyeing is carried out, first by cationisation of the garment, followed by application of pigments with binder. One-bath, one-step pigment dyeing has also been introduced in the industry. Garment finishing involves treatment with softeners to get a pleasing handle and drape; silicon elastomers are applied for such an effect. Denim washing, wrinkle-free finishing, antimicrobial finishing, stain repellent finishing, etc. are performed quite regularly [25]. Laser-based processing of garments and micro-encapsulated fragrance finishes are new developments in this field. Flameretardant finishes and finishes that absorb ultraviolet light and thus offer sun protection are employed as specialty finishes [26]. The dyestuff industry in India The coloration of textiles is an important aspect of the production process of any fabric and it adds value to it, be it dyeing or printing. Hence, the availability of auxiliaries that make the fabric receptive to the pigments, as well as the dyestuffs of different classes, depending upon the use of fibres, becomes an essential part in the growth of the textile industry. Having observed the growth of textiles and clothing, it goes without saying that the dyestuff industry has also played its role in this overall growth. During the 1950s to 1970s, the Indian dyestuff industry concentrated its efforts on import substitution, tariff protection, organised sector units and manufacturing based on imported intermediates. Beyond the 1990s, they mainly concentrated on reduction in import, export, thrust and growth. Indian Dyestuff Industries (IDI), a private sector company, was first to introduce vat dyes in India, whereas Amar Dyechem was the first to bring reactive dyes to the Indian dye market, Sandoz introduced disperse dyes, and then later ATIC introduced Procion dyes and Remazol dyes were brought into the market by Hoechst [27]. There are around 1050 units manufacturing dyestuffs and pigments, of which 50 can be considered as being from the large-scale sector, having market share of about 65%. The total production is somewhere in the region of tonnes per year. The states of Maharashtra and Gujarat constitute over 90% of dyestuff production in India. Most of the colourants needed by the Indian textile industry are supplied by the domestic dyestuff industry. Low-end technology is used in the manufacture of acid, direct and reactive dyes and thus the unorganised or decentralised sector plays an important role in the manufacturing of such colourants. The organised sector focuses on the manufacture of vat dyes, improvedperformance reactive dyes and disperse dyes, wherein advanced technology needs to be employed, which is beyond the reach of small-scale units in the unorganised sector. The Indian export of dyes and intermediates from the period 1994 to 2004 rose from metric tonnes to ca metric tonnes, thus showing ca. 300% increase. Currently, India contributes 6% to the total global market, with a CAGR of more than 15% in the last decade. The market size of the Indian dyestuff industry is approximately $US3.5bn, of which $US1.3bn is export. By 2010, this is expected to reach $US3bn and India s contribution to the world market will be ca. 10%. Globally, the usage of dyes is divided as follows: ca. 26% reactive, 31% disperse, 11% vat and indigo, and 32% others [28]. The share of the major players is as follows: DyStar 15%, BASF 12%, Ciba 11%, Clariant 7% and others 55% [29]. As the Indian textile processing and coloration industries carry out processing of a wide variety of fibres, the dyestuffs selected are obviously from diverse classes of colourants such as acid, metal complex and reactive for wool and silk; reactive, direct, vat, sulphur, indigo, etc. for cotton and cellulosics; disperse for all synthetics; cationic for acrylics; and pigments in general for almost all kinds of materials. Depending upon the nature of the fibres processed in the given textile cluster, the consumption of dyestuffs for dyeing and printing in that cluster varies. The major players in various clusters of India are Atul Products, Jaysynth Dyechem, Meghmani Organics, Colourtex, Clariant India, IDI, Metrochem, Ciba, BASF, etc. Besides these, there are hundreds of smallscale manufacturers of dyes, pigments and optical brighteners supplying their products at very competitive rates. The major domestic market for dyestuff includes Rajasthan, Gujarat, Maharashtra, Tamilnadu, Haryana, Punjab and Uttar Pradesh. Because of increasing awareness of protection of the environment, stringent pollution control is in place and hence a number of small-scale companies were closed down as a result of their inability to meet pollution standards. The mediumscale and bigger players are becoming increasingly important, as they benefit from economies of scale and are also able to provide quality dyestuffs while adhering to eco-regulations. Because of the abundant availability of dyes locally, the import of dyestuff to India is relatively low. The disperse dyes are mainly imported from China because of their cost-effectiveness as a result of the economy of 8 ª 2008 The Author. Journal compilation ª 2008 Society of Dyers and Colourists, Color. Technol., 124, 1 13

9 scale. However, the full range of colours is not available for import and, in certain critical hues, Indian manufacturers still govern the market in disperse dyes. Because of the exceptional performance requirements, the high-value textile products require application of the disperse dyes on synthetics and vat and reactive dyes on cellulosics. Hence, these classes of dyes dominate the major dyestuff consumption. In addition to shirting, furnishing and uniform fabrics, other products such as terry towels, fashion and sportswear also make use of vat dyes. Although vat dyes are expensive, they are preferred because of their high-fastness properties, and this increased cost of production is borne by the consumers. As the demands of the global consumers continue to become more stringent with respect to a high level of allround fastness properties, such as washing, wet rubbing, chlorine bleach and light, the dyestuff industry is challenged to manufacture such high-quality dyes and pigments, and this is one of the driving factors for their research and development activities. Looking at the developments in textile dyes, DyStar has introduced the DianixPLUS disperse dye range for right-first-time (RFT) dyeing, to be used on microfibres and weight-reduced polyester. Their Levafix CA range of high-performance reactive dyes, along with Levafix Fast Red CA, which is a copper-free dye, meet the requirements of ecological standards; that is, metal and absorbable organic halogenfree dyes offer excellent fixation as well as good wash-off properties. Clariant has launched Drimarene HF-CD, a new dye range for continuous dyeing of cellulosic fibres, and there is very little difference between laboratory and bulk-scale product performance. Cibacron LS, the low-salt reactive dyes and Cibacron NC dyes for RFT dyeing with earth tones have been introduced in the Indian textile processing industry [30 32]. The phasing out of azo dyes, based on banned amines, initially had an adverse impact on the growth of this industry. However, it was not long before such challenges were overcome and now the impact of European legislation with respect to Registration, Evaluation, Authorization and Restriction of Chemical Substances (REACH) compliance is yet to be seen since its implementation in June The issues faced by the Indian dyestuff industry include: falling margins with over capacity; intense competition; the need for innovation; demand for environmentally friendly dyes. Constant upgrading of technology is needed to make quality dyes that are cost-effective. The restructuring of a number of dyestuff industries in India has taken place in recent years, such as Ciba Specialty Chemicals being formed as a result of the spin-off from the dyestuff business of Hindustan Ciba-Geigy [33]. Ciba Specialty Chemicals later merged into Atul Limited to form Cibatul Ltd. DyStar bought the business of Colourchem. All these acquisitions and mergers in the Indian scenario clearly indicate the potential of the growth of the textile industry in general and the consequent growth of the dyestuff industry in particular. Natural dyes Globally, environmental compliance is becoming one of the three important bottom lines of any business, the other two being financial soundness and social compliance. The Indian textile industry experienced a number of challenges a few years ago when Germany put a ban on the import of textiles and clothing from India that had been dyed with azo-dyes based on banned amines, which are carcinogenic. The Indian textile and dyestuff industry overcame this challenge and the majority of these dyes were substituted by safe colourants. This trend slowly gave rise to the concept of the ecofriendly processing of textiles, wherein, even during the manufacture of the textile materials, the safety of the workers and their health issues required special attention. The demand for clothing dyed using green chemicals or with natural dyes the latter being considered less energy intensive and more eco-friendly is slowly growing. This demand comes mainly from the niche market and global interest in it is rising. Natural dyeing of cotton, wool and silk has been in existence for a number of decades in India and most of the material dyed with natural colours is produced in the cottage and hand-loom industries. A significant proportion of the population of India depends on the hand-loom sector. Hand looms constitute an enduring aspect of the rich cultural heritage of India. The production of cloth by the hand-loom sector during was 5722 million m 2 and, in , this increased to 6108 million m 2 ; it is expected to reach 6871 million m 2 in However, the hand-loom sector also makes use of other synthetic dyes, which are safe for obvious reasons. Natural dyes are extracted from various parts of plants, insects and from minerals, and they are used for coloration of the fibres, either in the form of tow, package or piece. The most famous natural colour used in large quantities is indigo and almost all the production of indigo in India is used for the dyeing of denim; Masulipattanam in Andhra Pradesh is one of the major producers of indigo. Natural dyes account for 1% of the synthetic dye production. It is important to note that natural dyes cannot be used as a substitute for synthetic dyes; the sheer volume needed and standardisation required are unattainable with natural colours. However, the manufacture of totally eco-friendly clothing desired by a small sector of the niche market could be attempted, where the consumers are prepared to buy clothing such as silk saris or dress materials, tops, shirts, shawls, etc. coloured with natural colours, at relatively higher costs, and they are also prepared to compromise on the dull shades and the limited range of hues available. In India, thousands of people and artisans are involved in the dyeing of silk, wool, cotton and other textile materials produced on hand looms using natural colours. Dyeing with natural dyes is carried out in the traditional style even today in a number of rural clusters in India, such as Sanganer, Bagroo, Burhanpur, Bagasara, Mahuva and Masulipattanam in states like Rajasthan, Gujarat, Madhya Pradesh and Andhra Pradesh. Also, in Bhagalpur (Bihar state) a lot of hank dyeing with natural colours is ª 2008 The Author. Journal compilation ª 2008 Society of Dyers and Colourists, Color. Technol., 124,