Nandan Terry Limited (NTL), one of the top five towel manufacturers in the world, is a vertically integrated company that produces terry towels and bath linens for global clients. They are known for their high-quality products, commitment to sustainability, and use of the latest technology. NTL manufactures a variety of terry towels and bath robes, including 100% cotton, Egyptian, Supima, cotton blends, cotton bamboo, and cotton Tencel. NTL uses sustainable raw materials like bamboo, hemp, linen, Tencel, and cotton blended with recycled pet bottles. NTL supplies their products to retailers and importers around the world, including Walmart, Kohls, Biglots, TJX, Ross Stores, United Colors of Benetton, Trent Westside, Walmart India and Reliance Retail. Mr Ronak Chiripal CEO, Nandan Terry in conversation with TBD...

Can you please take our readers through the growth journey of Nandan Terry?

Nandan Terry’s growth journey has been extraordinary. Since its inception in 2016, the company has swiftlyrisen to becomeone of India’s top five terry towel manufacturers. This remarkable  progress stems from a commitment to world-class quality and continuous innovation, which quickly established Nandan Terry as a trusted name in the Indian textile industry. We aim to expand our production capabilities further to meet growing market demand, all while embracing advanced manufacturing techniques and sustainable practices. Today, our products reach 52 countries worldwide, with our turnover exceeding $190 million—a testament to our dedication and success in catering to both domestic and international markets.

What is the production capacity and business model of your company in the Terry Towel industry?

Nandan Terry operates with a robust production capacity designed to meet a rapidly growing consumer base. Our business model emphasizes a high-volume production approach while also offering customization, which enables us to meet the distinct requirements of both the domestic and export markets effectively.

What is your market share in India in the Terry Towel business?

Nandan Terry currently holds a 5% share of global terry towel market. We are committed to expanding our presence by continuously innovating and strengthening our brand.

What products do you manufacture? How is your business divided into various segments?

We offer a wide range of terry towels, including bath towels, hand towels, washcloths, beach towels, and bathrobes, catering to diverse consumer preferences from luxury to everyday use. Our business is divided into domestic and export segments to effectively serve a variety of consumer needs. Bath towels make up 70% of our product range, while fashion and beach towels account for 25%, and bathrobes represent 5%. We are also exploring e-commerce, with products available on our website, www.casalino.in, as well as on platforms like Flipkart, Meesho, and Shopsy.

Are you also into exports of Terry Towel? If yes, what proportion of your production is exported?

Yes, exports play a significant role in our business. Approximately 95% of our terry towel production is dedicated to  international markets, underscoring our global reach.

What is the export potential of Terry Towels, and what challenges do you face in exports?

The export potential for terry towels is substantial, especially given the growing demand for high-quality, sustainable products. However, we face challenges due to India’s lack of a Free Trade Agreement (FTA) with the U.S. and Europe, which impacts our competitiveness against countries like Pakistan and Bangladesh.Additionally, logistics have become a concern, with shipping times to the U.S. doubling due to delays in the Red Sea region. Strategic planning and partnerships are essential to navigate these logistical issues.

In which direction do you see the Indian Terry Towel Market heading over the next 5 to 10 years?

With economies strengthening and many consumers moving away from Chinese products, the Indian terry towel market has immense growth potential. We anticipate steady expansion over the next 5 to 10 years, driven by demand for sustainable, customized products and an increasing emphasis on home comfort. A supportive Textile Policy could further accelerate this growth.

What challenges do you face with raw materials? Is sourcing raw materials an issue?

The import duty on cotton is a significant challenge, driving up manufacturing costs and impacting competitiveness. Domestic cotton prices are volatile, adding uncertainty to our raw material procurement. Egyptian cotton availability is another issue, as securing it at a viable price can be unpredictable. Nevertheless, by building strong supplier relationships and exploring alternative materials, we work to mitigate these challenges.

What are the current trends and challenges facing the Indian Terry Towel industry?

• There is a strong trend of international buyers preferring India over China and Vietnam, but India’s infrastructure, including dry port availability, needs substantial development to support this demand.

• Logistical challenges include limited container availability, where China has a significant manufacturing monopoly.

• Issues like vessel call time, lead time, and transit delays, especially with re-routed containers, have extended U.S. deliveries by 3 to 4 weeks.

• Rising raw material costs and competition from countries with FTAs further challenge the industry.

Are there specific industry standards or certifications that terry towel manufacturers must follow?

Adherence to industry standards like OEKO-TEX and GOTS is essential for maintaining quality and environmental impact. We conduct regular social and technical audits and comply with AATCC, ISO, and ASTM testing parameters to meet global standards for quality, safety, and durability.

What are the latest design trends in terry towels, and how can towels be customized to meet specific customer preferences?
Current design trends emphasize soft textures, natural colours, and eco-friendly, Azo-free dyes. Customization is increasingly popular, allowing customers to select colours, patterns, and even add monograms. We leverage AI for trend forecasting, and through WGSN, we stay aligned with future colour trends.

What quality control measures do you implement to ensure consistent quality and durability in Terry Towels?

Quality and durability are crucial for customer satisfaction. From sourcing raw materials to final inspections, we implement strict quality control measures. Our processes comply with AATCC, ISO,and ASTM standards, ensuring our products meet high international quality benchmarks.

What recent technological advancements in Terry Towel manufacturing are you using, and what advancements are on the horizon?

We have integrated automated looms, significantly increasing efficiency and output per loom. Our highspeed air-jet looms can produce up to 350 kg of towels daily. We also utilize advanced tumblers in processing to achieve a luxurious feel in our towels, and we continue exploring new technologies to enhance production.

You are a pioneer in bringing sustainable Terry Towels to the market. What are the sustainability challenges in the industry, and how do you address them?

Sustainability is integral to our business. We prioritize eco-friendly practices, including effluent water treatment that allows us to reuse 98% of water and water-saving dyeing methods. Approximately 40% of our energy comes from renewable sources like solar power. Although these practices increase manufacturing costs, they significantly reduce our carbon footprint, and many of our customers are willing to pay a premium for sustainable products. Our packaging is FSC-certified, and when requested, we use recycled packaging materials.

What changes in technology and manufacturing are needed to produce sustainable products?

Sustainable manufacturing requires investing in eco-friendly technologies, such as energy-efficient machinery and water recycling systems. We also focus on using biodegradable or recyclable packaging and renewable energy sources within our facilities. Although recycled products can sometimes be less durable, new processes are enhancing their resilience, allowing us to meet sustainability goals without compromising quality.