By Arun Rao
Under Prime Minister Mr. Narendra Modi’s leadership as Chief Minister of Gujarat, a forward-thinking initiative was introduced, coined as the ‘5F’ vision – ‘Farm to Fibre to Factory to Fashion to Foreign.’ This integrated approach was designed to promote the holistic growth of India’s textile industry.
Vaibhav Laxmi Spinning Mills, located in Kadi in Mehsana district of Gujarat, has successfully turned this vision into a reality. Led by Mr. Niranjan Patel, the company has achieved full vertical integration, extending its operations from cotton farming all the way to garment manufacturing and export. The journey of this family-owned business, spanning three generations, is a testament to innovation, resilience, and a deep-rooted commitment to sustainable practices in the textile industry.
A Family Legacy of Cotton Farming and Ginning
The story of Vaibhav Laxmi Spinning Mills traces back to 1975, when Mr. Patel’s grandfather established their first cotton ginning unit in a partnership. The Patel family belongs to a community with agricultural roots and which also grew cotton. Today, they own two ginning units with a combined capacity of 850 bales (weighing 170 kg each) per day, and have expanded their operations to include cotton exports since 2008.
Continuing the family tradition, Mr. Niranjan Patel joined the business in 2001, focusing on cotton ginning. However, he harbored dreams of expanding the company’s operations into spinning, the next value-addition step in the textile value chain. His opportunity came in 2012, when the Gujarat government introduced its first Textile Policy, encouraging investment and development in the sector.
Expansion into Spinning: A Bold Move
Mr. Patel seized the opportunity to fulfill his ambition of entering the spinning industry. In 2015, Vaibhav Laxmi set up its first spinning unit with 25,000 spindles on the same premises as the cotton ginning facility. The mill was equipped with cutting-edge technologysourced from leading global manufacturers. The blowroom and carding lines were procured from Trützschler, preparatory technologies were supplied by Rieter, ring frames from Toyota, and autoconers from Murata. The entire process was designed for automation, by means of a transport system from speed frame to ring frame as well as automated comber machines.
Two years later, in 2017, the company expanded further by setting up a second spinning unit of 29,200 spindles. Today, Vaibhav Laxmi operates nearly 55,000 spindles, producing compact and combed yarns in counts ranging from 20’s to 44’s. With an average count of 30’s, the mill produces around 42,000 kgs of yarn per day.
Vertical Integration: From Yarn to Garments
Mr. Patel’s vision for Vaibhav Laxmi didn’t stop at spinning. In 2021, the company took a significant step towards vertical integration by establishing a garment factory in Tiruppur. The factory now produces approximately 250,000 apparel pieces each month, supplying to well-known Indian brands such as Tata Group’s Trent, Reliance Trends and Myntra. The company also exports its garments to markets such as Israel.
To further streamline its operations, Vaibhav Laxmi recently established a knitting unit with nine machines. The knitted fabrics are dyed and processed in Ahmedabad before being sent to Tiruppur for garment manufacturing. The company is also in the process of setting up its own fabric dyeing, printing, and processing unit, which will further enhance its control over the entire production chain.
Commitment to Sustainability and Certifications
Vaibhav Laxmi bagged the Better Cotton Initiative (BCI) certification as early as 2010. This certification was earned through educating and training around 7,500 farmers. Today, Vaibhav Laxmi works with approximately 18,000 farmers who supply BCI-compliant cotton.
In 2013, the company began producing organic cotton on its family-owned farms and has since expanded to manufacture organic yarns. For this, Vaibhav Laxmi holds the Global Organic Textile Standard (GOTS) certification. The company has also embraced renewable energy, with 77% of its electricity needs being met through wind and solar power.
Vaibhav Laxmi’s commitment to recycling is also evident. The company has a certificate for recycled cotton, which allows it to recycle cotton yarn waste generated at the ring spinning and winding stages. Additionally, it holds IC2 and NPOT certifications, further validating its sustainable practices. The company has also been certified under the Primark Sustainable Cotton Program.
Supplying Global Brands
Thanks to its focus on quality, sustainability, and long-term reliability, Vaibhav Laxmi has earned the trust of several global apparel brands. Since 2015, the company has been nominated by H&M and many other brands for its high-quality cotton. Today, it supplies yarn also to vendors H&M and Stanley Stella and also other international brands such as Primark, Carrefour, and Tesco.
One of the key factors behind Vaibhav Laxmi’s success in maintaining long-term partnerships with global brands is its ability to honor long-term supply contracts. This reliability is made possible by the company’s strategy of stockpiling raw cotton. By keeping large inventories, Vaibhav Laxmi can ensure a steady supply of consistent quality cotton yarn throughout the year. While many spinners typically have contracts lasting only 15-20 days, Vaibhav Laxmi has yarn supply contracts in place until January 2025.
Kasturi Cotton
Mr. Patel also sees potential in government initiatives such as the Kasturi Cotton certification program; although he feels that the government needs to do more to brand and promote Kasturi Cotton in global markets. According to him, cotton ginners will adopt the certification only when there is clear demand for Kasturi Cotton from export markets.
Challenges and Opportunities in the Future
Looking ahead, Mr. Patel acknowledges that the textile industry faces certain challenges, particularly for standalone ginning and spinning units. He believes that the future lies in vertical integration, which allows companies to diversify their product offerings and reduce risk. By integrating operations across the value chain, from cotton farming to garment manufacturing, Vaibhav Laxmi is well-positioned to weather fluctuations in market demand and raw material prices.
Trusted Supplier:
By turning Prime Minister Modi’s 5F vision into a reality, the company has not only grown into a vertically integrated textile powerhouse but also positioned itself as a trusted supplier to global apparel brands and is a shining example of the future of India’s textile industry.
