Ginni Nonwovens manufactures Spunlace nonwoven fabrics in a state-of-the-art modern facility at Panoli, Gujarat in western India. The plant capacity is 12,000 metric tonnes per annum and it can produce a wide variety of roll goods. The quality produced in the plant is truly world-class with very wide acceptability and validation. GFL is also making Wipes Products made of Bio-degradable wipes of 100% Viscose and Cotton and Polyester from Recycled PET bottles. The process is designed to achieve higher recovery, lower waste, and lower energy and water consumption. The Production process can operate with Zero discharge of water and Zero discharge of solid fabric waste.

Yash Ji, can you just give a brief us about the Ginni journey from day one when it started and what are the challenges you faced till now and where Ginni has reached today in terms of rolled goods as well as wipes manufacturing?

We established our non-woven and converting units in 2007. The converting unit initially focused on medical products but later expanded to produce other items from spunlace non-woven. We also introduced a wipes manufacturing line in 2007. At the time, our primary focus was on exporting to global markets. The Indian market for non-woven products and wipes was still in its early stages, but we successfully collaborated with major international convertors like Rockline, NicePak, and Albaad. Unfortunately, the demand for wipes and non-woven products in India still remains relatively low compared to other regions.

Generally, wet wipe production is typically localized to the end market, meaning converters set up their units near their customers and non-woven and suppliers set up their units where converters are. Initially, we focused on the Indian market, which was still in its early stages. For four years, we supplied to small, primarily Indian baby brands. In 2011, a significant breakthrough occurred when we secured Johnson & Johnson as a client. They provided valuable support and guidance during this time.

When did you start this rolled goods manufacturing?

We entered the rolled goods business in 2007, establishing a conversion facility in Panoli, near Ankleshwar, Gujarat. The final product plant is located in Haridwar. Over the years, we’ve adjusted our strategies and relocated our manufacturing to five different plants.

Johnson & Johnson taught us essential quality systems and hygiene practices for producing wet wipes in India. As wet wipes are highly sensitive to quality and contamination by bactria and other microbes due to their composition of viscose fiber, natural fibers, water, and air, we must maintain strict hygiene standards. This is a critical aspect of our operations and we have zero tolerance in terms of hygiene levels.

When did you start to supply to Indian markets?

In 2011, when Johnson & Johnson entered the Indian market with localized production, they also focused on raising awareness about baby wipes. This led to the category’s rapid growth, with a CAGR of 30-35% from 2011 to 2018. This marked the beginning of the wipes market in India. Today, I estimate the market size to be around 1200 crores, which aligns with our study’s estimate of 1000-1100 crores. The market continues to grow steadily.

What do you think would be the market by 2030?

We estimate a conservative growth rate of over 20% and anticipate the market to exceed 30 billion rupees by 2030. The wet wipes market exhibits strong growth potential

Apart from personal hygiene, baby wipes, what are other products you’re doing?

Our journey with wipes and spunlace continued until 2018, when we operated in an excise-free zone, enjoying a near-monopoly situation. During this time, Indian brands gained traction, competing with Johnson & Johnson. However, Johnson & Johnson remained the market leader until 2018.

The introduction of GST in 2018 eliminated our excise benefits and eroded our competitive advantage. Confusion surrounding GST rates and the classification of wet wipes further exacerbated the situation as we were operating at 28%, people were working at 12%. This led to increased competition, which was intensified by the COVID-19 pandemic and subsequent oversupply. Today, the Indian market faces a significant oversupply of both rolled goods and converted products. While there are over 100 converters, only about 10 are major players. Domestic demand is only a fraction of supply (almost 20% of the supply), forcing most manufacturers to rely on exports. I anticipate future consolidation as companies struggle to survive in the domestic market.

What about export potential of this product, wipes, in the international market for Indian manufacturers?

While there is export potential for wet wipes as well as rolled goods, currently, we don’t export to any countries primarily due to competition from China and local suppliers. The industry tends to be localized due to high logistics costs, with supply following demand in most markets.

However, the ‘China Plus One’ strategy adopted by many companies presents opportunities for Indian wetwipe converters. We’ve recently seen an increase in inquiries, suggesting that export potential may exist for wet wipes as well as rolled goods. Nonetheless, entering foreign markets remains a challenging endeavor.

In terms of exports, what are competitive advantages/ disadvantages Indian exporters have?

In the export market, such as China and Turkey, Spun Lace suppliers have a competitive advantage in terms of pricing and converting due to lower fiber costs. Indian fiber supply is import-parity priced, making it 20% more expensive than Chinese alternatives. This creates an initial disadvantage for Indian products. Additionally, strict BIS standards for fibers hinder supply from international suppliers like Birla and Lenzing, as their plants in Indonesia and Austria do not meet these certifications. The strong lobby and monopoly in the Indian fiber market pose significant challenges to our industry.

Do you have your own brand?

Yes, but that is a minuscule part of our total sales. Basically, we are into OEM business for other vendors.

Let’s say if some converter wants to buy Ginni fabric, why he should buy Ginni fabric rather than other suppliers?

We have a proven track record of zero micro defects, a crucial aspect of wet wipes quality and very important for our supply. Contamination must be prevented from the initial stages of production, as even small amounts of microbes can multiply rapidly and consume preservatives in the solution. Our strong track record in this area has earned us the trust of our clients.

How the convertors can reduce wastages in terms of in line of converting if they are using Ginni fabric?

The quality of wet wipes is directly influenced by the quality of raw materials used. Precise physical parameters, such as machine direction strength, syncing time, cut length, and lotion weight, are crucial for preventing waste and ensuring product specifications are met. Variations in these parameters can lead to rejected products, increased waste, and higher production costs.

How do you ensure the equal length of all the rolls and the similar GSM across the width and across the length of the rolls?

We employ online measuring systems on our spun lace line to guarantee consistent GSM (gram per square meter) and fiber blend uniformity from the initial feeding stage. Additionally, we utilize online detection systems to measure GSM and fabric body throughout the length of the roll. Our quality control measures also include optical vision systems and metal detection systems to ensure consistent quality throughout the entire production process.

If you can share your future plans, it would be great.

The Indian market is highly competitive, with a current price war going on between major players. Survival is paramount for businesses like ours, but this competition benefits both brands and consumers. Despite the challenges, we remain optimistic about India’s market growth and economic stability. Our strategy involves aggressive price discounts to maintain market leadership.

Another significant trend is the global shift away from plastic. The UK’s plastic ban has led us to focus on 100% viscose products. Ginni has also pioneered the use of recycled PET bottles for wipes in the Indian market. This segment is expected to grow, as not everyone can afford fully biodegradable options. Many countries and states in the US have implemented regulations requiring a certain percentage of recycled content in wipes. We encourage all industry members to adopt this approach, as India is well-positioned to manufacture recycled f ibers economically and sustainably. With regulations on the horizon, this can be a promising avenue for the industry.

Are you already making this recycled PET fiber product?

We have developed wipes made from recycled PET bottles and have successfully recycled 100% polyester wipes back into fiber. We are currently in the process of patenting this technology. This initiative aligns with our commitment to environmental sustainability.