In this interview, Pradip Roy, Head (Textile Machinery Division), Universal MEP Projects and Engineering Services Limited (formerly Voltas) outlines the company’s plans to capitalise on the expected growth in the textile industry while also highlighting their new products and technologies
Voltas’ textile machinery business recently had a name change. Can you please elaborate on the new entity and the significance behind reconstitution of the machinery business?
Voltas has a diverse portfolio in both B2B and B2C spaces. In order to focus on the B2B businesses and B2C businesses independently and to expand their growths horizons, the Board of Directors of the Company decided to transfer of its domestic B2B businesses including mechanical, electrical and plumbing (MEP) / heating, ventilation and air-conditioning (HVAC) and water projects, mining and construction equipment (M&CE) business and Textile Machinery Division (TMD) business to its 100% wholly owned subsidiary viz., Universal MEP Projects and Engineering Services Ltd. (UMPESL). The organisational structure remains the same at operational level and this new entity will work alongside Voltas on future as well.
India ITME is Asia’s largest textile manufacturing show. How important is the show for Universal MEP Projects and Engineering Services (Universal)? Can you summarise the products and solutions that would be exhibited by you and your principals at the show?
ITME is an apt platform for us and at Universal, we are fully geared up to participate enthusiastically in the ITME 2022 as almost all our principals are participating in this Fair with their latest innovative products which would be unveiled during this event. This show is very important in view of the following:
• This show is coming back after Six years.
• Such fairs give great opportunity to manufacturers for demonstrating their innovations. ITME is patronised very well not only by the decision-makers but also by the influencers of the Indian textile industry.
• It is an effective platform for the customers to understand new innovations in the textile industry and find relevant business solutions..
• This also enables us to capture the voice of customers in the form of their current needs and also future needs. The above understanding would help us a lot and play a role in influencing our strategic decisions and plans for the coming years.
Despite global and domestic challenges, the Indian textile Industry has been witnessing steady growth in the last couple of years and looks to benefit from the changing global geopolitical scenario. What is your assessment of growth in the industry and your expectations about future growth of the textile industry in India?
The Indian textile industry has huge opportunities for growth fuelled by the needs of both the domestic and export markets. Geopolitical developments like the China Plus One strategy, overall slowdown in many economies, etc. would only accelerate the demand further. The need for quality yarn for export as well as domestic markets would increase going forward. We expect that a good balance would be maintained between new capacity creation and modernisation.
Similarly, investments in post-spinning sectors like fabric forming and processing would also accelerate to meet the stringent needs of the export market and the ever-increasing needs on quality apparels from the domestic market. We anticipate that the investments would continue to focus on segments like home textiles, knit garments and women fashion textiles. The new polices announced by states like Jammu and Kashmi, Haryana, Uttar Pradesh, Uttarakhand, and many other States would also spur investments in both the spinning and post-spinning sectors.
The government has announced the PLI scheme, PM Mitra Scheme and many more to further boost textile manufacturing. The textile minister has set an ambitious target of achieving USD 250 billion by 2025 for Indian textile industry. To achieve this what is the kind of investment that would be required in new projects, plant and machinery?
The export incentives, PLI scheme, new TTDS, setting up of seven mega textile parks, followed by FTA with UAE and Australia and the expected FTA with Europe will make the Indian textile industry globally competitive. This will drive investments in greenfield and brownfield projects in the long run. Further, Atmanirbhar Bharat Abhiyan is expected to gain even more momentum in the textile industry, both in classical textiles and technical textiles, providing good opportunities for Universal.
Besides, the government is also planning to accelerate the export of synthetic garments, supported by the PLI scheme – providing new opportunities for Universal-TMD in synthetic textiles. Our customers would be availing these benefits and the demand would be more for machines offered by Universal-TMD (spinning, knitting, weaving and processing). We would be having a major thrust on this portfolio as many upcoming investments would be happening in this sector.
How is Universal planning to leverage on its decades of experience and close relationship with customers in taking advantage of the emerging growth opportunity? In your discussion with your global principals, how do they view the Indian market and its potential?
Universal has world-class principals in almost all the segments of the industry and all of them are positive towards the growth of the Indian textile industry. Our organisational structure coupled with cluster-based approach always helps us in strong customer relationships. Universal has been scanning the market at regular intervals and we keep on tying up with technology leaders whenever there is a gap. Recently, we have tied up for representing warping and sizing machines and we are exploring partnership for embroidery and nonwoven lines in near future.
In your opinion, which are the segments within the industry which are expected to show promising growth in the coming years (manmade fibres, apparels, technical textiles, home textiles)? And how is Universal positioned to cater to the requirements of customers?
All the segments of the Indian textile industry such as spinning, weaving, knitting, processing and finishing, garmenting, nonwoven and technical textiles are poised for growth, driven by both domestic and export markets. However, we see great potential for a leap jump in sectors like Man Made Fibre Spinning, Circular Knitting, Flat Knitting and Home Textiles which are thrown open due to the new normal post the pandemic. In fact, the pandemic has also changed the perception of the Indian textile industry towards medical textiles, which has a greatest potential for further growth. As a leading supplier of products and solutions to the textile industry, we expect to play a significant role in this growth phase.
Given that the textile machinery segment is highly competitive with solutions available at every price point, why should a customer look to work with Universal? What are the distinct advantages you offer vis-à-vis competition?
As the second-largest employer in the country, the textile industry significantly benefits from TMD’s offerings such as the sale of capital machinery, after-sales support, stock and sale of parts and accessories. Working closely with stalwarts (principals) in the textile machinery sector, our business adds incredible value by offering robust textile technological solutions. The division acts as an intermediary between principals and end-users by maintaining close contact with both sides to keep up with the dynamic environment. TMD provides end-to-end engineering services and represents many global manufacturers.
The division has a strong presence across 16 locations in India, which includes all major textile hubs. Our team can reach our customers at a short notice given their proximity. TMD also offers special services such as energy audits, yarn realisation and cotton management. TMD has been selectively adding new products to its portfolio from new principals, forging strong partnerships and focusing on high-quality products and services for the textile industry.
Globally there is an increasing focus on sustainable textile manufacturing. Global brands and retailers are setting sustainability goals specifically for their supply chain. How is Universal supporting its customers in their sustainability mission and targets?
As the government lays great emphasis on environment protection, sustainability has become a high priority for most Indian companies dealing in textiles, apparel and textile technologies. Stricter implementation of laws and policies has not only ensured compliance but also increased awareness amongst the end consumers to opt for sustainably produced textiles. It is also interesting to note that companies that invest in sustainable manufacturing technologies get the goodwill of designers and industry experts. For the past many years, fashion and interior professionals have been striving to embrace sustainable products to increase adoption by big brands. As consumers are eager to pick up ramp fashion from the retail stores, affiliations by such artists can increase the credibility of the products.
Most of the principals of Voltas are offering customised and uniquely crafted solutions ensuring cost-efficient manufacturing and operational processes. The machines produce less waste and use less energy, thereby reducing the overall operating expenses of the company. By going sustainable, companies not only garner goodwill but also create a competitive edge for themselves in this massive industry. As sustainability requires complete disclosure of the company’s investments and policies, the brand enjoys a greater trust of its investors and end customers. The company will be able to derive long-term benefits on the consumption of natural resources despite a higher investment to set up a green factory.
Sustainable production will not only increase brand acceptance but also help the company compete with global industries due to their inclination towards responsible manufacturing. This will lead to a rise in exports and allow the manufacturer to absorb additional costs for machinery and inputs. As these products generally sell at 10-15% higher prices than traditional textiles, it allows companies to tap higher profits in the long run.
Acknowledging the potential in this technology, Universal, India’s leading smart engineering and innovative solution provider in the textile space, has been offering Smart Spinning Solutions from LMW, Wholegarment Knitting, Virtual Sampling Solutions from Shima Seiki, Salt less Dyeing solutions from Thies and Smart Finishing solutions from Brueckner and smart processing solutions from Benninger, which uses less manpower, space, consumes less energy and chemicals, thereby reducing impact on environment and also generating lesser waste. Over the years, our textile machinery has been renowned in the market as progressive and futuristic with highly advanced technologies
Automation and digitisation are increasingly becoming important. The pandemic has further accelerated the need for these solutions. How is Universal helping customers in automating and digitising their processes?
The major need of the customers is to produce quality yarn at the highest productivity levels at competitive cost and using least resources. As already detailed above, all our principals offer the smart series of machinery to meet all the above needs. They offer smart solutions with innovative technology, have built-in automation and built with user-friendly features enabling customers reduce their dependence on labour. These machineries have set new benchmarks in terms of productivity, quality of yarn, power conservation, resource needs, etc.
The Indian textile industry’s major participants have been attempting to bring transactions online using e-technology for the acquisition of e-spares or electronic parts. The entire procedure is now done online, from procuring quote to order placement to payment. This has not only shortened the time it takes to place and deliver orders, but it has also improved the customer experience. Automation in the textile industry would further improve productivity and allow employment of both skilled and unskilled workers in the industry. Improved exports and better working conditions will not only make the industry an attractive profession but also invite young minds to explore the industry’s potential.
Service and availability of spares will always remain the most critical aspect for the success of any machinery manufacturer. How is Universal ensuring maximum uptime and productivity for its customers? With restrictions on travel during the pandemic, have Universal and its principals evolved new strategies for customer service? Are you working on remote diagnostic and prognostic service support?
After-sales is the key differentiator and a strong domain for Universal, as we strictly believe that the relationship with our customers should be reinforced on a continuous basis and does not end after supply of products. We have a host of initiatives for sustaining and improving our relationship with our customers by meeting their after sales needs. To name a few, we list the following:
• We offer rings, spindles, technological components and essential spare parts, ring travellers, card clothing, lubricants, motors, bobbin holders, e-bike for our spinning customers through our partnership with LMW, LRT, LCC, KLIND, LEDL, ALIL, respectively.
• In the post-spinning segment, we supply lubricants from KLIND, print inks and heads from Efi Reggiani, etc.
In the textile industry, service does not only mean installing and servicing the machine, and addressing the complaints of the customer. These are basic services as it meets only the hygiene needs of the customer. The Indian textile industry has gone through a lot of difficulties over the years. There were many pain areas that the customers faced for which they were looking for solutions from other stakeholders. Here we saw as an opportunity to reinforce a long relationship with the customers. We have a bouquet of special services, which deliver outcomes related to the productivity, quality, power conservation, safety and the recurring cost. These special services have been well-received by our customers. Our technologists are capable of and have delivered services to enhance productivity, improve quality, enhance realisation, conserve power, etc. We have also many testimonials from our customers appreciating us for the range of services provided by our service team.
What are your plans for the future, say, 2025 and beyond?
The Indian textile industry is poised to grow owing to the demand of classical as well as technical textiles. Additionally, the long-term prospects for Indian textile players vis-à-vis China have improved as a consequence of various political tensions. We foresee momentum in the ‘Make in India’ initiative for the textile industry, creating jobs in return. The Government of India is also making investments in developing infrastructure for the textile industry which will help the industry become competitive, globally. Besides, the government is also planning to accelerate the export of synthetic garments, supported by the PLI scheme. Universal TMD is fully equipped to address a majority of the textile industry’s needs. Universal TMD is a ‘one-stop’ solution provider through a comprehensive portfolio of products and solutions. The company has rolled out strategies to grow revenue and strengthen market leadership across its offerings.
Our expansion plans are multifaceted. The primary goal is to expand market share in each of the products we sell. We want to grow in every segment in line with market potential, using the market’s upswing. We also keep a continual eye on the market, looking for fresh prospects as well as new partners. Another important strategy is to strengthen customer relationships so that Universal is the first choice, whether it’s for capital equipment or after-sales products and services. While the capital machinery delivered is used to start a new project or modernise an existing one, the after-sales items allow us to stay with the customer throughout the product’s lifecycle. As a result, we are able to greatly improve and strengthen our long-term relationship with our consumers.