Breaking good

24 March 2022



India’s laundry and drycleaning sector is ready to break through in 2022, writes Eugene Gerden


The India laundry and drycleaning sector is steadily growing, thanks to a significant improvement of the situation with Covid-19 and a project rise of of 5% in the national economy

In general, India was among the counties most affected by the pandemic, which is reflected by the record number of deaths and tremendous pressure on the Indian healthcare sector in the middle of 2021. The situation, however, has stabilised in recent months, which stimulated growth of the Indian national economy, with many analysts expecting a 5% growth this year. Such growth is expected to also be ensured by implementation of various initiatives taken by the Indian government in its Budget 2022-23. Currently growth is being observed in the majority of segments of the Indian economy, including its laundry and drycleaning sector.

Industry specialists quoted in this feature believe amid the ongoing processes of urbanization in the country, the importance of laundry and drycleaning services for India and its citizens will continue to grow, that will create conditions for a further development of the industry.

In fact, the Indian textile care sector has long been of interest to leading global providers of products and services, many of which have long considered the local market as one of the priority for their development.

One of such companies is Renzacci Spa, whose general sales and marketing director Marco Niccolini confirmed the importance of India for the company's business. According to him, India is rapidly shifting to new technologies and products, which are used in textile sector although a number of problems continue to prevent a more active development of the industry.

Niccolini comments: "Washing machines, which use natural solvents and x-ray technologies for cleaning are currently rapidly gaining popularity in India and its textile care sector. Such growth is also triggered by the active development of big cities of the country. Still, high levels of bureaucracy, and the relatively low purchasing power of local populations complicates a more active growth of the industry. In the meantime, further development in "India remains a priority for another global major player, Jensen Group.

According to Kaj Andersen, regional business director, Jensen Group, as India is prioritising economic expansion and sustainability, the demand for sustainable textile care services in the world's sixth-largest economy will continue to grow.

"The laundry industry has seen a respectable growth in the past years, as customers are looking for more efficient equipment and a lot more emphasis on washing and finishing quality. The Indian laundry industry is still dominated by domestic and medium-scale laundries. The heavy-duty laundry segment is in a launching phase, with more automated laundries being set up in the near future, Andersen comments.

As the Indian overall population is one of the world's biggest, while the the rate of unemployment in the country does not exceed 8%, the workwear segment provides probably the largest opportunities for growth for local textile care companies and global players. This has been recently confirmed by Lindstrom Group, which in recent years has become one of the leading players in this segment of the market. Jayant Roy, managing director, Lindstrom Services India Pvt Ltd, says: “Lindstrom currently remains the only organised rental workwear service company in India with pan India operations. Today, we provide clean workwear to more than 500,000 persons on a daily basis with more than 2.2 million garments in circulation in India catering to more than 2000 customers across different industry segments. As the magnitude of the Covid-19 crisis became clear, we realised that we would need to meet twin challenges: supporting the increasing customer demand and keep continuing all our normal operations."

According to Roy, India continues to be a priority market for the company, which is reflected by the expansion of the range of services and customer base.

Roy continues: "Unlike countries which face a huge amount of workforce shortage and therefore high penetration of the service industry, in India, workwear rental services is a relatively new concept introduced about 15 years back. Most of the companies in India have been depending on their own in-house capability for meeting the various requirements of workwear for their employees."

At the same time the existing big potential of India is confirmed by Jan Meijer, an operations manager of MESAAPR, Cole & Wilson, which is part Christeyns: "India is a very strong growing economy and the expectation is that more people will find their way to the drycleaner. The professional hygiene market is also growing as higher standards in this market are required," continues Meijer. But he says, there are some major challenges the company is facing at present in India related to the lack of officially quality standards in terms of whiteness with and without UV, textiles damage, disinfection, and so on.

Meijer adds: "At this moment we are missing those standards which could help this growing market to put in place the right tools to wash correctly, to disinfect and to optimise all kind of utilities."

Last year was more successful for the company in the Indian market which together with its local partner Quickclean first entered the OPL market in hotels and hospitals with its Low Impact Laundry concept. According to Meijer, the company has also completed the launch of its drycleaning concept HiGlo, which is a green answer for drycleaning to make this a greener and healthier market.

At the same time, most of interviewed local companies also said the pandemic had a negative impact on the Indian textile care sector, although the market has big potential for a further growth. Choleshwar Ratne, managing director of A2Z Laundry Solutions, says: “Although everyone is aware of the challenges Covid19 posed to all businesses in 2021, it was still an year of experimentation and devising new methods of doing business. According to our observations, a few bigger laundry project plans are on hold - due to the panic waves investors and entrepreneurs faced due to uncertain business but fortunately most of them have not been dropped completely, and they are just waiting for the right time to start. During 2021, few new on-demand laundry projects got launched in India, mainly due to more demand for door-step services in a restricted environment.”

Cutting competition, A2Z Laundry Solutions is launching the first QR code payment collection based laundry solutions, (c), which is the first of its kind in South East Asia. Shortly we will be launching our own on-demand laundry platform with a target of 4o 5o franchises in this financial year."

As Ratne adds, the Indian sector of laundry and drycleaning services has been growing for more than a decade, and it has not even reached a quarter of its potential. He also says the demand is increasing rapidly, mainly due to consumers having less time at hand for their daily chores and laundry, due to changed lifestyle patterns in Indian society.

Ratne continues: "The only challenge I see is less friendly finance and debt options for upcoming entrepreneurs. But with the corning of a lot of NBFCs and private banks supported by government schemes, it will not take much time for the market to cover this gap."

Most of leading local players and foreign companies have confirmed their plans for further expansion in the Indian textile care sector this year. For example, Jensen will continue to place its biggest hopes on its tunnel washers.

Kaj Andersen says: "Jensen was the first to install a highly automated and efficient laundry plant exactly 10 years ago, namely at the Western Railways in Ahmedabad. Since then, Jensen has supplied more than a dozen tunnel washers in India and contributed to the transformation of the country's laundry industry. This paradigm shift has proven to be the right strategy, especially during the pandemic.

"The advantages of an industrial washing process in a closed system like a tunnel washer has become apparent: If you want to beat the pandemic, you have the beat the problems that come with it. Hygiene is a big issue, especially in healthcare laundries, which is why big hospitals are focusing on hygienic laundry solutions. Healthcare has become one of India's largest sectors, growing at a brisk pace both with public and private players."

According to Andersen and representatives of other interviewed companies, sustainability is a key focus area in India, which leads to the growth of demand for resources-saving equipment. Other leading players are also ready for acceleration of expansion into the Indian market in 2022.

According to Jan Meijer from Christeyns the company is looking for further growth inside this Indian textile care market with its Low Impact Washing Concept, "which can help to be more 'Green' and with our HydRO system."


ONE OF A KIND

Lindström India, a 100% subsidiary of the Finnish Lindström Oy, India’s only organised workwear and cleanroom service company has expanded its offering to serve the growing demand of ready to use sterilize/ ready to use sterile cleanroom goggles coming from Pharmaceutical and Biotechnology industry.

Inaugurating the new Cleanroom Goggle service unit, Shyam Khante, Lindström Pharma Advisory Board Member stated: “Lindstrom has brought one of a kind service to India which will help Pharma Industry to meet increased compliances. Lindstrom has a state of the art and compliant facility with complete Cleanroom portfolio offering for Biotech and Pharmaceutical companies.”

LAUNDREX INDIA SCHEDULED FOR JULY

So, as things continue to develop in India and with Covid declining there is a show to see and be seen at. Laundrex India is scheduled for 13,14.15 July, Hall: 5, India Exposition Mart, Knowledge Park-II, Greater Noida.

Billed as the fastest growing exhibition on Laundry and Drycleaning in the Indian subcontinent. Laundrex India Expo was conceptualised to create an exclusive platform for the laundry & dry-cleaning professionals in India to converge, communicate & collect information on innovations across the globe. It promises to be:

¦ The single largest sourcing point for the latest laundry, drycleaning and linen care products, systems and solutions.

¦ A Networking Point provider for product suppliers and solution seekers to connect, establish and grow.

¦ A knowledge centre for understanding the innovative and new technologies in commercial, retail and industrial sectors.

https://www.laundrexindiaexpo.com/

ON TRACK: Jensen was the first to install a highly automated and efficient laundry plant exactly 10 years ago, at the Western Railways in Ahmedabad
ONE OF A KIND
LAUNDREX INDIA SCHEDULED FOR JULY


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