On a humid morning in Chennai, the rhythmic hum of giant washing machines fills the air inside a busy commercial laundry unit. Piles of hospital linen, hotel towels and uniforms arrive in endless streams, demanding not just a spotless finish but also efficiency and speed. The business is booming, yet behind the piles of clean linen lies a reality check with rising operational costs and workforce challenges.
SN Ramkumar Raja, Director of Thee Washers Private Limited, explores the issues weighing down the industry and the steps needed to build a resilient and profitable future.
Competing only on price is a short-term game. To win long-term, we need to offer quality, reliability and hygiene standards that clients value over cost savings.
— SN Ramkumar Raja
Every day, commercial laundries process immense volumes of textiles. Hospital bed sheets, hotel towels and industrial uniforms consume thousands of litres of water and large quantities of chemicals in each wash cycle. Water treatment plants help reduce some of the burden, but the disposal of chemical effluents continues to pose a serious environmental challenge.
Although sustainable detergents and eco-friendly chemicals are available, many businesses remain hesitant to adopt them. The global laundry industry is moving towards greener practices, yet Indian operators often prioritise immediate cost savings over long-term environmental responsibility, creating the risk of falling behind international standards.
Workforce Puzzle
The human resource challenge is equally pressing. Finding skilled labour and keeping them is an uphill task. Many facilities recruit freshers and invest heavily in training programmes only to face high attrition rates soon after. As employees leave, businesses are forced to maintain a larger workforce than required simply to ensure operations continue without interruption when absenteeism occurs.
This dependence on manual labour slows progress towards modernisation. Introducing advanced machinery that can handle greater volumes with fewer workers would ease the pressure, yet adoption has been slow across much of the country’s laundry sector.
Price-Game Dilemma
Competition in the commercial laundry business brings another set of challenges. Clients frequently switch vendors for small price advantages, even when the existing service provider delivers quality work. Securing and retaining large contracts such as those with hospitals, hotels or railways often involves complex negotiations and highly competitive pressures. This constant price-driven churn affects stability and profitability for many operators.
Technology Pros & Cons
Technology promised to simplify operations, but the reality has been mixed. The arrival of laundry apps created convenience for customers while introducing operational headaches for service providers. Deliveries now require dedicated staff to collect soiled linen and return cleaned garments, yet almost half of all customers are unavailable during delivery attempts. Drivers often leave consignments with security personnel or neighbours or must revisit the address later, wasting valuable time & resources.
This delivery inefficiency impacts more than schedules. It complicates payment collections, particularly for cash-on-delivery orders. When customers are absent, payments get delayed, disrupting cash flow and creating administrative overheads. Instead of streamlining operations, last-mile delivery problems add new layers of complexity to an already demanding business environment.
Automation to the Rescue
The path forward lies in embracing modern systems. Investing in advanced water treatment facilities, eco-friendly detergents and high-capacity machinery may require significant capital initially but promises measurable returns through reduced water consumption, lower chemical usage and compliance with environmental norms.
Technology also offers scope to automate repetitive tasks, improve tracking and optimise delivery schedules. As systems evolve, they will help eliminate inefficiencies that currently eat into profits and prevent businesses from scaling effectively.
Retaining Labour
People remain at the heart of the business even as automation grows. Attracting and retaining talent requires more than training fresh recruits. Competitive pay structures, safer working conditions and clear career progression opportunities can transform laundry facilities into stable workplaces rather than transient job stops.
Over time, a balanced approach combining a well-trained workforce with automated processes will allow companies to manage higher volumes, maintain quality and control costs more effectively.
Plan and Strategy
Focusing on price alone will not ensure long-term success. Building strong relationships with clients and demonstrating consistent quality, hygiene and reliability can create a competitive edge beyond cost considerations. For large institutional contracts, introducing strict quality controls such as separate processing lines for different types of linen or specialised stain-removal techniques can build trust and preference among customers, even when lower bids appear on the table.
The Way Ahead
The commercial laundry industry in India stands on the brink of transformation. Growth opportunities abound, but the sector must overcome operational inefficiencies, environmental concerns and labour-related issues to realise its potential.
By adopting technology, embracing sustainable practices and building stronger client relationships, Indian laundries can create profitable enterprises capable of meeting both present challenges and future expectations.
