Latitude of Indian Textile Sector Amid Manufacturing Push
Vikram Oza, Director - Finance, Jindal Worldwide, 0
India's textile industry is among the oldest sectors in its economy, with a history spanning several centuries. The industry is highly diverse, ranging from hand-spun and hand-woven textiles to the more advanced capital-intensive mill operations. The market for Indian textiles and apparel is anticipated to grow at a compound annual growth rate (CAGR) of 10 percent, reaching $350 billion by 2030. Additionally, India stands as the third-largest exporter of textiles and apparel globally. The country ranks among the top five exporters worldwide in various textile categories, with export figures expected to hit $100 billion. Textile manufacturing significantly contributes to the global economy, affecting both domestic and international markets. In an exclusive interview with CEO Insights, Vikram Oza, Director of Finance at Jindal Worldwide Limited, shares his insights on the challenges, growth and investment opportunities and how India competes within the global textile manufacturing domain.
You’ve spent over 40 years in the finance industry. What are your guiding principles?
Throughout my journey, I have learned that one should never decline any opportunity; whatever comes your way, embrace it and move forward. I believe in dedicating myself to achieving my goals. Whenever I am assigned a task, whether it concerns India or the global arena, COVID, economic downturns, weather challenges, crises etc., I focus solely on my work and the ultimate objective I aim to reach. By committing to this approach, I have accomplished several of my goals that have benefited not only my organization but also my family and society at large. I always give my best effort in everything I do, and that is my guiding principle.
What are the key responsibilities and challenges faced by a CFO in the textiles sector?
The CFO plays a vital role within an organization. Let me give you an example: envision a car with the CEO driving; in this analogy, the CFO serves as the brake. If the CFO believes the pace is too rapid, they will engage the brakes to alert the CEO to any mistakes being made. This illustrates the CFO's responsibility to manage the executive team, ensuring compliance and adherence to ethical standards. If the CFO identifies a lack of morality, it's their duty to highlight it and assertively address it within the management team.
The CFO is responsible for identifying wrongful actions and is committed to the organization rather than any specific individual. Thus, the true function of a CFO is to serve as a regulatory force, applying the brakes when the organization’s actions exceed acceptable boundaries.
What are your thoughts on incorporating Gen Z into the workplace?
The upcoming generation is incredibly proficient in digital technology. They bring a remarkable level of digital savvy and excel in this realm. In the past, banking & finance were more conventional, but now with the rise of FinTech, transactions are processed more quickly and accurately. However, one must exercise caution regarding the risks associated with digitalization; there are numerous opportunities for fraud that we still haven't fully addressed, even within FinTech.
The integration of AI and machine learning, along with user feedback, is accelerating progress, yet the latest generation seems less mentally alert. If you ask me to perform any multiplication or square, I can do it without hesitation even today. However, for simple addition or subtraction, many young people will resort to using a mobile calculator, even for something as basic as calculating monthly milk expenses. However, each generation has its advantages and disadvantages. We should appreciate that while there may be a tendency toward negativity, there is always something to learn from the emerging generation while also preserving our strengths.
What is the future of the textile industry in India? What are the areas that you look forward to that you think require more investment?
I have always viewed textiles as a timeless industry that will keep expanding due to the evolving preferences and passions of the younger generation, ensuring it will never fade away. Currently, India holds a significant advantage in its ability to produce natural fibers, particularly cotton, which many other countries struggle to match. With Trump's administration in the U.S. threatening tariffs, I believe India is in a much stronger position than countries like Bangladesh, Vietnam, or China. China struggles to compete in the realm of natural cotton-based clothing due to tariffs reaching as high as 245 percent, while Vietnam's tariffs are only at 49 percent. Regarding my company, which specializes in fabric manufacturing, the average American owns around eight pairs of jeans, and Europeans have about five. When we look at Brazil and Mexico, which I classify as developing economies alongside India, they average just one pair. In comparison, India has only 0.3 pairs of jeans per person. This demonstrates the substantial growth potential in this sector.
Also Read: Why is Financial Risk Management Important?
What would be your advice to young leaders who are coming up in the finance industry?
Future leaders should exercise patience. There will likely be obstacles along the way as you develop, and growth often comes from encountering challenges. By remaining patient, a solution will eventually appear. Secondly, the leaders should be straightforward. Nowadays, I observe that the newer generation often starts by complicating matters and then attempts to unravel them. The third piece of advice is to consistently keep your eyes and ears open. Seek to learn from every moment. What may look like a daunting task from afar might actually be less complicated than it seems. By delving deeper into a subject, you often uncover numerous opportunities, and these opportunities foster your growth. When you grow, you must also facilitate the growth of your team, leading to the overall growth of the organization.
The upcoming generation is incredibly proficient in digital technology. They bring a remarkable level of digital savvy and excel in this realm. In the past, banking & finance were more conventional, but now with the rise of FinTech, transactions are processed more quickly and accurately. However, one must exercise caution regarding the risks associated with digitalization; there are numerous opportunities for fraud that we still haven't fully addressed, even within FinTech.
The integration of AI and machine learning, along with user feedback, is accelerating progress, yet the latest generation seems less mentally alert. If you ask me to perform any multiplication or square, I can do it without hesitation even today. However, for simple addition or subtraction, many young people will resort to using a mobile calculator, even for something as basic as calculating monthly milk expenses. However, each generation has its advantages and disadvantages. We should appreciate that while there may be a tendency toward negativity, there is always something to learn from the emerging generation while also preserving our strengths.
By delving deeper into a subject, you often uncover numerous opportunities, and these opportunities foster your growth
What is the future of the textile industry in India? What are the areas that you look forward to that you think require more investment?
I have always viewed textiles as a timeless industry that will keep expanding due to the evolving preferences and passions of the younger generation, ensuring it will never fade away. Currently, India holds a significant advantage in its ability to produce natural fibers, particularly cotton, which many other countries struggle to match. With Trump's administration in the U.S. threatening tariffs, I believe India is in a much stronger position than countries like Bangladesh, Vietnam, or China. China struggles to compete in the realm of natural cotton-based clothing due to tariffs reaching as high as 245 percent, while Vietnam's tariffs are only at 49 percent. Regarding my company, which specializes in fabric manufacturing, the average American owns around eight pairs of jeans, and Europeans have about five. When we look at Brazil and Mexico, which I classify as developing economies alongside India, they average just one pair. In comparison, India has only 0.3 pairs of jeans per person. This demonstrates the substantial growth potential in this sector.
Also Read: Why is Financial Risk Management Important?
What would be your advice to young leaders who are coming up in the finance industry?
Future leaders should exercise patience. There will likely be obstacles along the way as you develop, and growth often comes from encountering challenges. By remaining patient, a solution will eventually appear. Secondly, the leaders should be straightforward. Nowadays, I observe that the newer generation often starts by complicating matters and then attempts to unravel them. The third piece of advice is to consistently keep your eyes and ears open. Seek to learn from every moment. What may look like a daunting task from afar might actually be less complicated than it seems. By delving deeper into a subject, you often uncover numerous opportunities, and these opportunities foster your growth. When you grow, you must also facilitate the growth of your team, leading to the overall growth of the organization.