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An action plan to meet the challenges in post-MFA regime

Nandan Damani

With the emergence of new era of globalisation, hopefully, from January 1, 2005 many Indian manufacturing set-ups are gearing up to meet the challenges. It has been discussed, debated and stressed at length that the Indian textile industry will have to go on improving quality of its product and have a continuous cost control exercise. These two horses will have to run in tandem.

We have had and are having plethora of studies, reports, seminars, discussions and the latest being the DHL-Mckinsey study which is very positive and optimistic that India can be a major global clothier next only to China. To make this happen each one of us will have to travel on a definite and positive road map with an optimistic attitude.

Commitment for results

With its abundantly available natural resources and now also synthetic fibres like PSF and VSF, what is needed is to have a synthesis of top class committed top management and technical teams with a trained and motivated work force.

Yarn and fabric

We have a world class set-up of modern spinning mills producing best quality yarn and also can produce reasonably good quality fabrics despite inadequate number of modern weaving machines.

Processing needs major thrust

We have to set up modern processing units at a break neck speed. I would strongly suggest having joint ventures or at least long term technical knowhow to have desired quality-processed fabrics, so very essential for making and marketing readymades which has to be the ultimate goal.

Special areas of opportunities

Organic cotton

We also can fall back on traditional farming methods to produce organic cotton without use of chemicals in any form - fertiliser or pesticides. We have the means, knowhow and the manpower to do that. This needs active support from all agencies, government, semi government, industry bodies and large industrial houses. Products like yarn, fabric and garments from organic cotton have a great future and major value addition and will have exclusivity for a long time to come.

Compact yarn

Another very good opportunity is producing compact yarn, fabrics from which appear to be a final word in wearing comfort. Only inhibition is costly machines and I am sure our technocrats can innovate to bring down the costs by indigenous means. The TRAs are and can play a pivotal role in this innovation.

Committed production teams

In addition to modernisation, which has to be need-based and versatile, what is needed is religious commitment on the part of production teams. The production manager has to be on continuous alert to ensure that all control mechanism and all the instruments of all the machines are in operations at all times. He has to be bold and courageous to ensure that the machines will operate only with all control and instrumentation in perfect operation to serve the purpose they are meant with adequate and need-based maintenance schedules. This alone can ensure quality at minimum cost.

Change in attitude

A sea change in attitude from top to bottom will be required to achieve quality with minimum cost and it will have to be continuously imbibed at all levels.

Innovations

The top management will have to be continuously on innovative mode to offer new products on an on going basis.

Infrastructure constraints

It will be necessary to overcome all hurdles like weaker/inadequate infrastructure in the form of power, water and transport. The international or now even domestic buyers of quality products will be least interested in any excuses for not getting ‘just in time ’ supplies of required quality products.

Lead by example

The textile industry can take a cue from the success of the automobile industry, especially the auto components. If they can compete globally, textiles with its ancient root and history of excellence can and should be able to compete globally.

Meet the challenges on entire supply chain

It is heartening to note that many organisations have already geared up to meet the above challenges. These challenges have to be taken in a mission mode, right from cotton cultivation to the end product of ready mades by continuously strengthening the production chain from seeds, farming and picking practices, ginning, pressing of cotton, manufacturing of yarn, grey fabrics, processing and garmenting.

(The author is managing director, Simplex Mills)