Nahar Industrial Enterprises Limited (NIEL), a vertically integrated textile manufacturer, involved in spinning, weaving and processing, has been one of the leading names in the Indian textile industry for a long time now. Part of the diversified USD 1.5 billion Nahar Group with interests in sugar manufacturing, BOPP film, investments, lending, financial advisory, solar power generation, wind mills and non-conventional co-generation power plants, etc., the company has been moving from strength to strength in recent times.
In an exclusive chat, Mr. Abhinav Oswal, CEO of the company spoke in detail about NIEL’s strategies to deal with the situation arising out of the Corona virus pandemic, its production capacity, and the company’s future plans.
Here are the edited excerpts.
Almost every industry has been hit hard by the Corona virus pandemic, with the textile industry being no exception. However, entrepreneurs have been putting their thinking caps on and are trying out different strategies to deal with the supply chain and manufacturing disruptions. When asked about the impact of the pandemic on the Nahar group, Mr. Abhinav Oswal mentioned:” Major markets for Nahar is in US and Europe. As stores in these continents and all major brands in India are closed, customers have asked us to hold production. It has also impacted the order Inflow position for our organization also.”
To tide over the crisis the group has been pursuing innovative strategies to connect with its clients. Going into details about the same, Mr. Abhinav Oswal highlighted the fact that the whole team of Nahar has tried to use the entire period of lockdown at in a positive manner, guided by the senior management, and have stayed connected with each other over Phone and ZOOM calls.
“We have undertaken training sessions for our production teams to increase the technicians technical know -how and increase plant efficiencies. Also sessions were conducted for the marketing team on how to work effectively in this changing world environment, where travel shall be less and online communication will grow with our buyers. We have gone for procurement of software packages using which we can show the fall and drape of the fabric as it’s converted to garments, online to our buyers sitting in their offices. This shall help our buyers to have better view of our product range when distances divides us in this changed environment.”
“We are also in constant touch with our buyers both in their local sourcing offices in India/ Hong Kong and also buyers head offices at US and Europe, through online portals like ZOOM and WEBEX, to discuss ways to go forward in future,” he explained.
Post the lockdown while the group’s spinning Units have started production from 15th April, the fabric units have started production from 1st May 2020.
Listing down the details regarding OWM Nahar Group’s total production capacity Mr. Abhinav Oswal said:” The total production capacity of Nahar group in terms of fabric production is 108 million mtrs per annum. Of this 60 million mtrs/ annum is dedicated to woven fabrics in poplins, twill, dobbies, sateen in 100% cotton, cotton stretch, cotton polyester blends. We do PFD, piece dyed, prints and yarn dyed fabrics. All our units are Oeko Tex, GOTS, GRS certified.”
“We produce 48 million mtrs/ annum of denims from 3.5 Oz to 14.5 Oz. We do power stretch denims. Our denims comes in various shade of Indigos, SBIT, GBIT etc. Denim range include 100% cotton, cotton stretch & cotton modal blended fabrics. As a group we have approximately 1 million spindles running pan- India in Punjab and Madhya Pradesh. Our biggest production facility is based out of Lalru, Punjab.
How has been the impact of the pandemic on the group’s customers? When queried as to whether they are facing any cancellation of orders, domestic and exports, Mr.Abhinav Oswal replied:” As mentioned earlier, the impact of Pandemic on the customers is huge as globally all stores are closed since March 2020. This has impacted our orders inflow too. Customers have not gone for cancelations, but asked us to hold the inventory and create the liability so that they can lift the stocks as the stores opens globally.”
Optimistic outlook
According to the industry grapevine doing the rounds many global brands and retailers are said to be moving away from China and looking to increasing their sourcing from India. In such a scenario, does Mr. Abhinav Oswal see any initial trends of customers talking to the company for increase in sourcing? Sharing his views on the topic he said:” At present as all retailers sourcing teams are working from home they are in process of collecting data on capacities available and counter costing of products they have been traditionally doing in China. We also observe some development coming to India related to buyers due CSR issues related to Uighurs Muslims in Xinjiang Province China. However presently as retailers are sitting on huge inventories, any initial trends of shifting of orders from China is yet to start.”
The group has charted out a clear cut roadmap to emerge from the ongoing crisis and stabilize its business in the future. According to Mr. Abhinav Oswal, the group is presently focusing on strengthening of its basics and come out stronger as and when the business stabilizes in future.
“We are in continuous contact with our customers on a personal and professional basis. As a group we share a very practical and optimistic view for the future. Also we have gone for development of new products which shall help our customers in these pandemic times. We have successfully developed anti-viral finish fabrics partnering with European companies, Polygene and HeiQ. These anti-viral finishes help in keeping deadly viruses like Covid-19 and SARS away from mankind,” he said rounding off the interaction.