Lenzing Group, a leading global fibre manufacturer, is grappling with the complexities of a shifting global trade landscape and increasing regulatory scrutiny. In a recent interview, Rohit Aggarwal, CEO of Lenzing, discussed the company’s strategies to adapt to these challenges and capitalise on emerging opportunities.
Geopolitical Tensions and Supply Chain Resilience
As geopolitical tensions rise and protectionist measures become more prevalent, the textile industry is facing unprecedented disruption. Lenzing, with its diverse manufacturing footprint across Europe and Southeast Asia, is well-positioned to navigate these turbulent waters. However, the company acknowledges the need for agility and adaptability to ensure a seamless supply chain.
Sustainability as a Competitive Edge
Sustainability has emerged as a critical factor in the textile industry. Consumers are increasingly demanding eco-friendly products, and brands are under pressure to reduce their environmental impact. Viscose, a sustainable and versatile fibre, is poised to play a pivotal role in meeting this growing demand. Lenzing, a major producer of viscose, is committed to driving innovation and developing sustainable solutions to address the industry’s evolving needs.
India’s QCO and Trade Barriers
India’s recent imposition of a Quality Control Order (QCO) on viscose fibre imports has raised concerns among industry players. While Lenzing’s European units have secured the necessary BIS certification, its Southeast Asian facilities are still awaiting approval. Aggarwal expressed his disappointment with this situation, emphasising the importance of open and fair trade. He urged Indian authorities to reconsider the QCO and facilitate smooth trade between the two countries.
The Future of Viscose in India
Despite the challenges, India remains a key market for Lenzing. The country’s growing textile industry, coupled with a rising middle class, offers significant potential for viscose. However, the industry needs to overcome obstacles such as limited cotton production and environmental concerns. Viscose, with its sustainability credentials and versatility, can help fill the gap and cater to the evolving preferences of Indian consumers.
A Sustainable Future for the Textile Industry
As the textile industry evolves, sustainability will continue to be a driving force. Lenzing, with its commitment to innovation and eco-friendly practices, is well-positioned to shape the future of the industry. By embracing transparency, traceability, and responsible sourcing, the company aims to create a more sustainable and resilient textile value chain.
