The Indian laundry industry, both domestic and industrial, is undergoing a significant transformation. While it presents immense potential, it is also grappling with numerous challenges that hinder its growth. Akash Dharamsey, Director-ADD Laundry Concepts Pvt. Ltd, in conversation with Editor Mohana M discusses the factors that need to be considered to make India a successful laundry industry.
Consumer Education and Awareness
Possibly, lack of awareness is a common factor among end users, and is a common challenge in many businesses including the laundry service industry. Most essentially, the purchase of a laundry processing machine forms a major part of the investment for any medium and large-scale laundry set up. Cost has been and will be a determining factor in the purchase of the machine, however, what should be the criteria of buying the machine.
Lack of consumer awareness regarding the long-term benefits of investing in premium laundry equipment has been impacting on the business returns of maximum set ups in India. As Akash Dharamsey points out, “The solution is educating the customer.” When investing in commercial laundry equipment, several factors need to be considered to ensure optimal performance, efficiency, and longevity.
Based on the daily or weekly volume of laundry to be processed, the machine capacity becomes prime. The type of fabric that needs to be processed and the load per wash and the operational hours determines the capacity of the machine required.
Energy is a major cost driver and influences the total cost of the laundry operations across set ups presently operating in India. Energy-efficient machines and reduced downtime can lead to significant cost savings.
Machines equipped with high-efficiency motors and advanced drying technologies with water-saving features and environmentally friendly options need to be considered. Durability and reliability are crucial too.
Investing in well-built machines with sturdy components and reputable brands is important for laundry operators. Branded machines are known to last for 15 to 20 years. In short, considering the initial investment, operating costs, and long-term savings would be an economically sound decision. These factors enable informed decisions to select the right commercial laundry equipment to optimize operations, reduce costs, and enhance customer satisfaction.
Speaking on the present scenario, Akash points out that “With customers not willing to spend, suppliers are bringing in products that are cheaper. In fact, it is important for suppliers to also educate the customer by highlighting the potential reduced utility bills and smaller carbon footprint. Customers will need to start making informed decisions to establish a successful business.”
Make in India
India with its large market potential has not been fully realized due to various factors. In fact, globally India is looked at as a country with ‘cheap labour’ and hence the demand for quality machines with costs is challenging for suppliers. Most international brands find India “a difficult market to sell in”.
Local manufacturing of laundry machines is a major want in the country. With just two to three manufacturers for a country that has an estimated annual growth rate of the laundry requirement at around 9.1% (between 2023 to 2030), meeting demands is a huge challenge.
There is a strong need for “the Indian government to implement policies that promote ease of doing business, streamline regulations, and invest in infrastructure development”. Even though the roads have been cleared by the government to ‘Make in India’, the reality is complex.
The presence of small-scale assembling units claiming low-cost production over quality and innovation could mislead buyers, “the government should consider implementing stricter quality control measures and incentivizing manufacturers to adopt advanced technologies”, says Akash.
By offering subsidies, tax breaks, and other financial incentives, the government can encourage manufacturers to invest in research and development, upgrade their production facilities, and adopt energy-efficient technologies.
“The incentive from the government’s side should happen for the laundry industry, resulting in manufacturers adopting better technology,” emphasises Akash.
Supplying in India
Despite the challenges, the Indian laundry industry has the potential to become a major player on the global stage. Large and medium international manufacturers who have made presence in India through suppliers and subsidiaries are constantly looking at establishing themselves in India. Some of the major players are making inroads into India already. With the new regulations in place for joint ventures, contract manufacturing and setting up manufacturing base in India, it is a matter of time before we see international players operating with Indian manufacturers.
In the present scenario, “The Americans or Europeans at the leading end of owning technology, understanding technology in the laundry industry should design products as per Indian conditions and at an India specific price point to taste success.”
True to the point, India has specific needs. As commonly said, “We need international products at Indian rates.” However, international products need to be India-operable.
• Robustness and durability are paramount, as machines must withstand harsh water conditions, frequent power fluctuations, and extreme weather.
• Energy efficiency is crucial to reduce operational costs, especially considering India’s energy landscape.
• Water efficiency is another vital factor, particularly in regions facing water scarcity.
• Ease of maintenance and repair is essential for uninterrupted operations.
• Reliable access to spare parts and skilled technicians is crucial.
• Additionally, customization and flexibility are important to cater to the diverse needs of the Indian market, from small-scale laundromats to large-scale commercial laundries.
Hence, international manufacturers will need to consider these points while making for India or supplying in India.
By addressing these issues and capitalizing on the opportunities, India can position itself as a leader in the global laundry industry.
