spotlight on India

The giant awakens

1 November 2006



India’s economy is undergoing big changes. Rajiv Kumar assesses the impact on the country’s textile care industry


Sometimes referred to as a “sleeping giant”, India will thrive economically in the next 10 years – and this growth, underpinned by its democratic traditions, will be apparent in all parts of the country.

India’s great strength lies in its manufacturing capabilities.

Although China is far ahead, India has a record of strong and flexible entrepreneurship, which is why some companies in the laundry and drycleaning industry are looking at India as a manufacturing hub.

The trend towards upward mobility continues to gather pace. Real estate prices are booming around the country.

A strong IT industry, expanding manufacturing sector and developing service industry are encouraging much greater middle class development. This group has a newly-found purchasing power and is hungry for the better things in life.

Joint ventures and technology transfers have been negotiated to manufacture the latest-generation drycleaning systems.

In the laundry sector, the local equipment manufacturers realise the importance of technology and this has resulted in the development of high-speed washer-extractors. However, an overall vision is still missing.

Product development cannot be done in isolation – companies need to develop solutions and products are a part of it. Understanding the variety of applications in the laundry customers’ businesses is very important.

There is certainly a change in attitude in the textile care industry but this needs supporting for it to develop it in right direction.

One of the examples is an ambitious proposal by the municipal corporation of Chandigarh city, in state of Punjab to convert all existing dhobi ghats in the city into laundry marts. The process has already been initiated by floating tenders and it will be interesting to watch how this project develops.

Growth in the laundry sector is helped by the development of markets such as religious tourism and initiatives like the “Incredible India” promotional campaign and the campaign for “Atithi Devo Bhavah” (ADB), which means “Visitors to our place are like Gods and should be treated as such”.

The dynamics of India’s domestic and international markets are driving its hotel industry.

The gigantic domestic market equates to over one-third of total international arrivals worldwide and is developing at amazing speed, but the potential for international tourism is much bigger. The demand for hotel rooms far exceeds the country’s supply so there is an opportunity to develop the hotel industry to meet this demand. If the present trends are any indicators, thousands of rooms will be ready in the next few years. In terms of the laundry industry, I estimate that the star hotel category alone will need around 50,000 tons of new linen annually.

If all hotels, hospitals and other institutions are taken into consideration then this figure could well be over 100,000 tons annually. While central laundries are best able to provide a cost-effective solution to process these loads, establishments in both commercial and institutional sectors must assess which approach best suits their needs – an in-house laundry which provides more control over quality and costs; or outsourcing, which allows them to focus on their core business.

It is essential that the laundry managers and planners take into consideration the volatile state of fuel prices in the world market. Given that prices will continue to increase, investing in energy-effective technologies will pay rich rewards.

There are stories about village people in India who have never even travelled by train yet have now enjoyed their first flight, thanks to the low-cost airlines and their price war.

The opening up of the aviation industry in India brings exciting opportunities for hotels, since they rely on airlines to transport 80% of international guests and now an ever-increasing number of domestic arrivals. This has stimulated demand for better service levels and has helped to improve India’s troubled infrastructure.

Domestic airlines entering international routes have also increased. This has led to an increase in demand for better and more organised laundry services, but so far there are few systems which take care of this niche market. India’s railways too have realised the tremendous opportunities tourism and better services offer. The rail industry has invited private partnership to develop 23 luxury hotels on land that it owns and to develop centralised laundry facilities at various locations.

It will be interesting to see how this progresses. The need to develop laundries arose because of a failure of local launderers to provide adequate service levels due to the nature of their operations, which are based on conventional washing systems. The new plants must take on expert advice and avoid the old technology if they are to do the job to the right standard.

Tourism in India is also benefiting from the stronger economies of India’s two major source markets, the UK and USA. The 2010 Commonwealth Games is all set to usher in a big boom in the hotel and tourism industry in the capital. The government plans the construction of 20 five-star hotels in Delhi before this event.

But there are many challenges in attracting international travellers. This will continue until the government addresses the quality of India’s infrastructure.

Hotel supply must catch up with demand whilst creating a healthier business mix. The creation of central laundries is the only way to provide world class laundry service levels whilst keeping the costs under control.

Healthcare projects

There are numerous healthcare projects being planned in India, with perhaps the most ambitious being the creation of a “health city” comprising 5,000 beds. Many healthcare experts feel that there is still scope for the government to take the initiative and promote healthcare as a growth area.

Promoting medical tourism will bring in huge foreign revenues, as has happened with the IT industry, and will also benefit other industries bringing job opportunities for many.

Laundry is an essential function in healthcare – not only contributing to comfort and aesthetics, but also assisting with infection control.

Because of its high level of energy, chemical and water consumption, laundry processing also has a significant impact on the hospitals’ environmental costs and financial bottom line.

The laundries must be planned meticulously; too many hospitals either depend on outsourcing from local launderers having scrupulous setups or buy their own cheap equipment comprising washers, separate extractors, low performance dryers and manual pressing. Some institutions have invested in high speed washer-extractors and flatwork ironers, and work with high quality chemicals – but there is still much to be done in developing healthcare specific barrier laundries with a focus on infection control, linen life, patient comfort and operating cost control.

Finding solutions

There is definitely a shift in the hotel industry’s view of laundry. Central laundries are seeing positive signs because handling larger work volumes efficiently requires expert advice, good planning and a partnership programme with suppliers to ensure the best solution. While it will be some time before tunnel washing systems are seen in India, it is always worth considering these when planning any laundry above 5 tons/day capacity.

Another option is to consider the combination of material handling systems with washer-extractors and dryers, automatic feeding and folding with Ironers.

All buyers must consider the total cost of ownership before purchasing even a single piece of equipment, whenever possible.

International suppliers

International equipment manufacturers should consider direct entry to the market. It is very important for machine manufacturers and suppliers to know how diverse India is. First-hand experience is necessary and only international manufacturers can afford to invest in creating the proper infrastructure.

Government, industry and planners must explore newer technologies, and as a responsible supplier, an international laundry equipment manufacturer should respond to this positively by forming partnerships with users.

Apart from government regulations which are predominantly related to water, pollution and other major issues, institutions like the FHRAI provide broad guidelines for the hospitality industry. Issues such as environmental effects are dealt with while more efforts are required to develop measures such as reducing solvent waste, improving housekeeping practices, modifying processes, equipment, and operating practices.

Another important development has been the increasing general awareness of the importance cleanliness and hygiene. This includes a series of publications for the cleaning and hotel industries, and several of these cover laundry-related matters.

Equipment manufacture

India is dominated by manufacturers producing conventional washer systems, due primarily to their supplying the garment exporters.

Major manufacturers include Stefab, Ramsons, and Fabcare, and there are a number of regional companies like Vision, Mutual, SR Engineers and Payal Industries.

Some of these manufacturers have foreign collaborations for certain finishing equipment, such as vacuum tables.

There have also been attempts to produce perc drycleaning machines with technology transfer, and some have tried producing high speed washer-extractors.

India’s industry is waking to the call of technology but it requires contractual partnerships between laundry equipment suppliers and customers. However, the problem here is that there is presently no common platform for both suppliers and users.

There are no forums or associations which cater specifically to the laundry and drycleaning industry, be it a supplier, user or service provider.


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