The FY 2024–25 progress report covers the period from April 1, 2024, to March 31, 2025, and primarily focuses on Shahi’s operations in India. 

Decisive Climate Action: A Major Shift in Energy

Shahi achieved significant milestones in its environmental journey this year. Driven by a crucial strategic decision to replace coal with sustainable biomass across its facilities. This move directly contributed to achieving a 51% carbon-neutral energy mix, up from 36% in the previous year, and surpassed internal targets earlier than projected.

Harish Ahuja, Managing Director and Chairperson, Shahi Exports Pvt. Ltd., commented,

“Our transition from coal to sustainable biomass was a bold and necessary step, helping us achieve 51% carbon-neutral energy across the company, up from 36% just last year. This progress does not happen by chance. It is a result of detailed planning, relentless execution, and our firm belief that we can and must do better as we transition toward a more responsible energy future.”

Investing in People and Community Well-being

The company placed significant emphasis on social responsibility, delivering substantial progress in employee development, empowerment, and community engagement:

• Upskilling and Training: The organization provided over 1 million hours of employee training and delivered technical skills training to 75,000 women.
• Worker Health: More than 17,000 workers participated in the company’s health camps.
• Worker Voice: Shahi ensured 100% access to Inache, its digital worker-voice tool, enhancing workplace communication and transparency.
• Community Outreach: Initiatives dedicated to driving education, health, environment, employment, and empowerment outcomes in communities served over 475,000+ individuals.

Expanding Influence Through Collaboration

Recognizing that industry-wide change requires partnership, Shahi broadened its collaborative footprint this year:

• Industry Innovation: Shahi co-founded the Fashion Producers Collective, an initiative focused on supplier-led research to drive systemic improvements.
• Global Stewardship: The company continued its dedicated work within The Fashion Pact and further solidified its alignment with international governance standards by joining the OECD Advisory Group on Responsible Supply Chains and the Coalition for Reproductive Justice in Business under UNFPA.

As Shahi moves forward, its objective remains to drive people and planet-positive practices that secure long-term value for all stakeholders and establish new performance benchmarks for responsible manufacturing.

The post Shahi Exports Reports Ahead-of-Schedule Sustainability Progress appeared first on Shahi.

How do manufacturing companies lead this transition while navigating financial risks and technological challenges? 

This article explores the steps we are taking toward renewable energy and how collaboration between brands and stakeholders is key to unlocking sustainable solutions.

Breaking down energy consumption in manufacturing

Our operations rely on two types of energy: electrical and thermal. Electrical energy powers daily activities, while thermal energy, mainly from boilers, generates steam and hot water for processes like dyeing and finishing fabrics. 

At Shahi, 81% of our energy comes from thermal energy due to our large textile operations, with the rest coming from electricity. While renewable electricity has been the industry’s primary focus, phasing out fossil-fuel-based thermal energy in textile production is where the biggest impact of decarbonization lies.

Toward 100% renewable electricity at Shahi

Over the past decade, we’ve invested heavily in renewable electricity, reaching 65% renewable energy for our operations. Supported by favorable government policies, in 2018, we strategically invested in two solar plants with a combined 84 MW capacity and 8.75 MW of wind power in Karnataka. These plants generate 130 million kWh annually, cutting over 610,000 metric tons of CO2 emissions since 2018. This year, we’re expanding with a 40 MW solar project in Karnataka and smaller ones in Uttar Pradesh and Tamil Nadu, bringing our renewable capacity to 151 MW. 

Driven by our commitment to sustainability, we are working toward 100% renewable electricity by 2027.

Phasing out coal in our operations

By 2022, we successfully transitioned all our garment factories from coal to biomass. The greater challenge lies in our textile mills, which require hundreds of tons of coal daily to operate. The UN The Fashion Industry Charter for Climate Action mandates that brands should not onboard any new factories and mills that use coal. This significantly accelerates the timeline for phasing out coal set by the Paris Agreement, which permits non-OECD countries until 2040. However, the Charter also states that brands should establish engagement and incentive programs to support their suppliers’ transition from coal. Thus making collaboration and a willingness to share risks essential.

We are addressing this by rapidly increasing biomass use, a carbon-neutral alternative. One of our mills has been 100% coal-free since December 2023, and two will be 50% coal-free by January 2025.

Challenges of decarbonizing thermal energy

Replacing coal with biomass as a fuel source requires substantial upfront investments from suppliers. For each of our 50 factories and 3 textile mills, we’ve invested substantially in biomass-enabled systems, including Atmospheric Fluidized Combustion (AFBC) boilers, Thermopac systems with electrostatic precipitators to capture fine particles, expanded biomass storage facilities, and automated ash handling plants to reduce health risks.

Sourcing and handling biomass also present challenges. Building a reliable supplier network is crucial to mitigate seasonal fuel fluctuations and ensure a steady supply chain. In India, like most of the world, biomass is still an informal industry compared to coal, which is well-established. To address the challenge of the biomass supply chains, we’re collaborating with biomass aggregators and experts to assess local agricultural waste availability. Our goal is to vertically integrate our biomass supply.

This, however, would be a temporary solution that will need replacing with more sustainable options, requiring additional investments in the future. We are excited by upcoming technologies such as green hydrogen, electric boilers, and heat pumps.

A study in India shows that electric boilers and heat pumps are capital-intensive and are likely to increase the cost of operations, driven by the price of electricity, which is higher than the current fuel prices per unit of energy. While the return on investment for these technologies is yet to be determined, and given that textiles is a low-margin industry, manufacturers need government and brand incentives to help switch to newer, cleaner technologies. Further, to drive emissions down further, it’s important that the national grid procures increasing amounts of clean electricity and shifts away from fossil fuels overall.

Collaboration as a catalyst for change

While the major impact of climate change lies in the supply chain, the entire value chain, including brands and other important stakeholders, must share responsibility for climate action. Collaboration with brands and stakeholders is key to reducing the risks of transitioning away from fossil fuels and creating innovative solutions that can be scaled and adopted.

First, it is crucial to accelerate R&D to find alternatives to biomass. Decarbonization isn’t just a fashion industry issue; it’s a global challenge that requires cross-industry collaboration. For example, we can learn from the tech industry, which is adopting renewables as its energy demand increases significantly with the rise of AI. 

Second, sharing the financial burden requires not only brand support but also financial institutions. Manufacturers can benefit from funding for higher-risk, long-term investments, such as infrastructure changes needed for climate adaptation that go beyond debt. 

Finally, reimagining suppliers as value-adding co-creators rather than just implementers ensures sustainability strategies align more closely with real-world operations. 

By aligning goals, pooling resources, and fostering transparent partnerships, we can develop scalable, unified solutions to decarbonize the industry.

The post The Decarb Diet: Insights into the Complexities of Supply Chain Decarbonization appeared first on Shahi.

Alternative materials are available, but most exist in the early R&D stage. It is essential for suppliers to partner with innovators to provide them with supply chain integration and unique insights to scale to an industrial level. Read below to learn more about how Shahi Alternative materials are available, but most exist in the early R&D stage. It is essential for suppliers to partner with innovators to provide them with supply chain integration and unique insights to scale to an industrial level. Read below to learn more about how Shahi and AltMat worked together to scale fabrics made from agricultural residue. and AltMat worked together to scale fabrics made from agricultural residue. 

About AltMat

The fashion industry and biodiversity are intrinsically linked as we rely on a naturally limited supply of resources to grow its raw material — natural fibers. The fashion industry is in search of new raw materials. In our quest to find lower-impact next-generation materials, in 2021, Shahi came across AltMat in one of the innovation showcases. AltMat is an Alternative Materials Science company that converts agricultural residues into high-performing natural materials called Altag. Using materials science and sustainable proprietary processes, they can transform biomass of certain food, medicinal, and industrial crops into natural fibers for the fashion industry.

The Impact

Shahi believes in the power of AltMat to bring exponential positive impact on the industry. One, as a solution to the industry’s and brand’s search for alternatives and, in parallel, a pathway for millions of farmers who burn their crop residues and set off dangerous emissions levels for want of better options. Additionally, we can divert several resources, such as water and energy used to grow raw materials, to alternate uses. 

The agricultural residue is converted into fiber using a series of proprietary traditional, microbial, chemical, and mechanical methods to retain the natural structure of the fiber. AltMat has carefully built the processing methodology to ensure sustainable production.

Fiber production uses zero hazardous chemicals, with more than 90% water savings, 50% less carbon footprint, and more than 80% reduction in energy consumption. AltMat fiber is recyclable and biodegradable, making post-consumer textile recovery easy.

The Collaboration 

As a vertically integrated manufacturer, Shahi is uniquely positioned to integrate Altag into the supply chain for scaling it with our strategic and innovative brand partners. To accelerate the market adoption of Altag, Shahi and AltMat have signed a Value Chain Agreement that underscores the importance of partnerships grounded in the ethos of equitable purchasing practices and sustainable transformation. As a value chain partner, Shahi has priority access to the Altag yarns and co-develops fabrics with our global chain of innovative customers. 

“Scaling sustainable alternatives like AltMat isn’t easy, but the journey is where the true impact lies. It is about shared learning, open collaboration, and a shared mission to rewrite the future of fashion. Suppliers like Shahi, working with innovators directly, can share their feedback to help refine the solution for industrial scale. AltMat is an example of how a successful partnership can build an enabling ecosystem to scale.”

— Gauri Sharma, Assistant General Manager, Communications & Sustainability Innovations, Shahi Exports

The R&D Journey: Scout, Pilot, Scale, and Support

Scout
The agreement and collaborative scaling of AltMat to the industry scale is the culmination of our numerous pilots for woven and knitted fabric made from agricultural residue. During an innovation showcase, we were introduced to AltMat in September 2021 by CAIF under their Project Accelerating Circular Economy (ACE). Post the showcase, we held several discussions between our technical teams and AltMat to understand the technology, implementation feasibility, and traceability guidelines. 

Pilot

In December 2021, we initiated our first woven pilot project with AltMat with two quality compositions. We undertook four pilots over two years to experiment with different structures, compositions, counts, and designs of the fabric. Working with innovators, we are able to provide feedback from the industry perspective and technical know-how that helps innovators such as AltMat to incorporate them, accelerating the process for scale up. 

The learnings from each pilot helped us explore the versatility of Altag with a myriad of dyeing techniques and finishes. Fabrics made with Altag have a hand feel similar to natural cellulosic fabrics. The fabric retains the natural structure, which changes over time. That is the beauty of the Altag fabric. 

The learnings from the pilot resulted in a synchronized swatch book with over 10 different woven fabrics made with Altag spread across four collections:

The collection was made in active collaboration with a diverse team at Shahi, ranging from the technical mill team, Fabric Innovations, and R&D to the Marketing team. 

Scale

After ensuring the industry quality standards, the woven collection is ready to be scaled up to the industry level. Shahi and AltMat, in collaboration with Fashion for Good, recently held a brand engagement session attended by over 15 brands. Being a competitive space, the brand engagement session is a testament to how the industry wants to collaborate with each other to achieve the common goal of making low-impact materials available to the typical consumer at scale. Currently, we have one bulk order in the pipeline from our customers for the AltMat collection. Shahi will be the first manufacturer globally to scale Altag. 

Support

But the journey continues. Together with AltMat, we continuously work on research and development to produce knitted fabric using agricultural residue. Shahi is the first supplier to pilot Altag for knitted fabric in India, and we have completed two pilot projects to date. The fabric hand-feel and processing have improved with each pilot and new insights. The Value Chain Agreement signifies our commitment to support AltMat in scaling and integrating them to the larger supply chain. 

“Both AltMat and Shahi are prepared with the infrastructure and learning curves required to scale a new natural fiber like Altag. We are excited to announce that the Shahi and AltMat value chain partnership milestone brings this possibility of scale to life.”

— Shikha, Founder, AltMat

Collaboration for the future

With each pilot, each experiment, and each swatch of Altag fabric, we’re paving the way for a cleaner, greener industry, one stitch at a time. With our fabrics made with AltMat, we are actively looking for brand partners to integrate the next-generation material into their supply chains. With each woven and knitted fabric, we’re rewriting the narrative – one where farmers are empowered, resources are conserved, and style goes hand-in-hand with sustainability. Join us in stitching a future where fashion thrives alongside our planet. 

For more information, please contact od@shahi.co.in

The post Farm Residue to Fashion: Our Journey with AltMat appeared first on Shahi.

Dear Stakeholder,

I am proud to present to you Shahi’s first Sustainability Report. For nearly five decades, right from when my mother started the company as a small home workshop, Shahi has put people and the planet at the forefront of business strategy in various ways. Sustainability has remained a key pillar of our success over the years. In a fast-changing global environment, our “Responsible For” framework guides our actions in line with our values. Our key stakeholders, including our customers, employees, business partners, suppliers, and civil society organizations, support us in achieving our goals.

At a time when natural resources are fast depleting and climate changes are intensifying, Shahi recognizes that to future-proof our business and continue providing high-quality employment to over 115,000 people—revitalizing our planet is absolutely necessary and urgent. That’s why we have set ambitious goals to achieve 100% renewable electricity by 2026 and use 85% recycled water in garment washing by 2024. However, we cannot achieve our goals alone; the global industry must rise together to elevate towards sustainability. In 2021, we collaborated with one of our customers to achieve the highest standard for circularity by becoming India’s first woven apparel and textiles manufacturer to create Cradle to Cradle Certified® Gold products. Our focus on innovation continues as we partner with academia, innovators, and NGOs to research and identify novel solutions to the immense challenges of this industry. 

The past year remained challenging. As we recovered from the COVID-19 disruptions of 2020, India faced a destructive second wave of the pandemic in the middle of 2021. With a strained healthcare system, we knew we had to play a proactive role in supporting our employees through this unprecedented time. We set up vaccination camps in factories and offices to vaccinate nearly 100% of our workforce across the country in partnership with local health services, NGOs, and private and public hospitals. Moreover, we ensured our medical dispensaries were stocked with essential medicines and oxygen cylinders. Our Migration Support Center was open to migrants across industries for medical, residential, and vaccination support. 

Despite these hurdles, we continued to support our employees’ development. In fact, we surpassed our target of training 58,000 women by 2024 in Gap Inc. P.A.C.E., a soft skills training for female workers, and delivered the training to over 70,000 women in FY 2021.  Our focus on creating a safe and respectful work environment remains undeterred as we continue to expand frameworks like the Social and Labor Convergence Project (SLCP) and access to digital grievance redressal mechanisms to 100% of our factories by 2024.

Our influence and responsibility extend beyond our factory walls, reaching out to the communities in which we operate and other vulnerable groups. We have trained 44,000 women from rural and disadvantaged backgrounds in sewing skills, and our efforts in skill development will continue to be accelerated. 

In 2021, our Corporate Social Responsibility (CSR) projects focused on enhancing education, improving public health, and promoting environmental and community management. We aim to reach thousands of women with menstrual, sexual and reproductive, and maternal health awareness and services. Similarly, our efforts in expanding green cover, migration support, and STEM education continue in full swing.

I hope you enjoy reading this report containing case studies, data, and insights about our sustainability efforts. With all humility, while we have made much progress, we have higher ambitions for the future. We call on all our stakeholders to join hands with us to create a thriving and sustainable industry for the future. 

Harish Ahuja,

Chairperson and Managing Director,

Shahi Exports.

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The International Green Apple Awards are conferred by the UK-based Green Organization in a campaign to find the world’s greenest companies since 1994. The awards saw close to 500 nominations this year. Shahi’s environmental work will now feature along with the likes of Infosys, TESCO, and BMW. 

The fashion industry accounts for 10% of global GHG emissions and 20% of global industrial-water pollution. With global forces rallying to fight climate change, India has committed to mitigating 1 billion MT in carbon emissions by 2030. As India’s largest apparel and textile exporter, Shahi has developed a strong commitment to environmental sustainability in its operations to meet the national goal, industry demand, and the necessity for constructive climate action.

Silver Award in Water Efficiency

Shahi’s denim production factories are equipped with best-in-class technology to meet high water efficiency standards. Conventional production methods require about 75-85 liters of water to produce a pair of jeans. The denim operations at Shahi recycle 100% of its water to bring it back into the process and reduce freshwater dependence. Overall, a pair of jeans produced by Shahi effectively utilize less than 5 liters of water.

MA Prasad, COO of the Denim Division at Shahi Exports, said:

“Denim washing and production is a highly resource-intensive process. Through continuous efforts, we have achieved zero liquid discharge from our facility, and through various green initiatives, we have created one of the most sustainable denim operations. We are humbled and encouraged by this recognition. “

Bronze Award in Carbon Reduction

Since 2019, Shahi has reduced 448,000 MT of carbon emissions company-wide by moving away from conventional energy sources to environment-friendly renewable sources. Today, Shahi uses 70% of renewable electricity with an established setup of 84 MW solar power plants and 8.75 MW Wind Power Plants. Shahi is currently on the path of becoming 100% renewable electricity driven by 2026. 

Shridatta Veera, Assistant Vice President, Central Maintenance and Environmental Sustainability at Shahi Exports, said:

“Driven by our company’s sustainability vision and policy, we have realized the need to act against climate change. Moving towards green energy helps reduce carbon footprint, hence we installed 84 MW solar power plants all at once to meet our requirements. Receiving an award for this milestone is heartening. It motivates us to further on our mitigation journey.”

The awards were presented by Jayne Drant, Chief Commercial Officer of Nurture Landscapes, at a ceremony at the Houses of Parliament, London, on November 21, 2022. The judges of the award shared their thoughts on Shahi’s win,

“The textile industry is often in the spotlight for its social and environmental impact. Shahi Exports welcomes this attention as they support and contribute to India’s reduction targets of almost half a million tonnes of CO2 saved in 2 years and much more to come. As India’s largest clothing manufacturer, Shahi wants to be among the greenest. They have added sustainability to most aspects of the production system. The push to reduce water use is a prime example, using less than half the water typically consumed in the denim manufacturing process.” 

The Green Apple marks a milestone in Shahi’s continued journey towards sustainability excellence. Shahi Exports is proud to have the opportunity to uphold the title of a Green World Ambassador.  

The post Shahi Exports Wins Two International Green Apple Awards appeared first on Shahi.

In 2019, Shahi invested in DXM, a software-as-a-service (SaaS) and manufacturing (MaaS) platform that enables on-demand manufacturing, optimized inventory management, lower lead time, and highly individualized garments at scale. The platform allows consumers to choose the design and trimmings of their clothes from anywhere in the world. Customization and on-demand manufacturing lead to better inventory management, lower returns, and established customer brand loyalty. This, in turn, means less waste and fewer resources used to make products.

“According to studies, the average number of garments produced per year has nearly doubled in the last two decades. Yet, the sell-through rate of full-price garments remains low, with a large portion of garments selling at discounted rates in retail stores. This is one of the biggest pain points and losses for brands and retailers – from an economic and sustainability point of view. The mismatch between what brands make and what consumers want can be resolved through custom, made-to-order production cycles. This was the genesis of DXM.” – Matthew Wallace, CEO, DXM.

The role of manufacturers in on-demand manufacturing

The fashion industry does not often see supply chain partners and brands coming together to work on long-term solutions. In the case of DXM, four of the world’s top manufacturers: Brandix, Busana Apparel Group, MAS Holdings, Shahi Exports, and a leading brand, Carhartt, came together in a pre-competitive, collaborative spirit to co-invest in the vision of disrupting business as usual. Trust and top management commitment played a central role in bringing this partnership together for all five co-founding members, who now compose DXM’s Board of Directors.

Although the problem of low sell-through rates is a major issue for retail, solving it requires the involvement of mass manufacturing in delivering consumer preferences. Mass-producing manufacturers have tailored their factories and production systems to large-volume and standardized assembly line production. In the DXM model, manufacturers have to switch to custom, made-to-order, on-demand production at scale. But what does that look like?

Shahi’s pilot with DXM and Carhartt

Between July and August 2022, Shahi partnered with DXM and Carhartt to pilot an on-demand production model to manufacture 295 pairs of workwear denim and non-denim pants on a rolling basis, delivered directly to the end consumer within 3 to 8 days of them placing their order. These pants were available to order for loyal Carhartt consumers.

Carhartt integrated the DXM platform into its website, where consumers could design their pants with a myriad of customization options, including including the fit, type of back and leg pockets, kick panels, gusset, and inseam, among many other elements. The consumer could also see the product in 3D and answer a series of simple questions to determine their fit virtually. The order was processed with all the digital assets required to manufacture the product in under a minute. Our manufacturing facility received the complete design pack and information from all these orders in real-time. This is very different from the current scenario, wherein Shahi would receive tech packs for bulk orders created based on forecasted demand.

With the on-demand model, a single, specialized sampling tailor is assigned to make every order from start to finish. For a single tailor to stitch an entire garment with multiple customizations requires them to be highly skilled and experienced. Usually, factories are tuned towards producing millions of pieces of the same garment, with perfection and the highest efficiency possible, using an assembly line set-up where each tailor only sews one component of the garment and passes on the garment to the next. 

Each garment is unique in the direct-to-consumer, on-demand model, with multiple customizations. This requires a rigorous quality assurance protocol ensured by our teams. A quality supervisor is designated to check the garment against a pre-made checklist from the pattern to the end garment. Each garment is also tried and photographed on a dummy of similar proportions and uploaded on the DXM platform. After the quality inspections, the pants are directly dispatched to the customer’s indicated address. 

The result: a zero-percent rejection rate during the pilot, i.e., no returns from the end consumer. 

The versatility and flexibility of the DXM model can disrupt the market. No limit is defined on any of the measurements on the customizations offered to the consumers, making the product truly inclusive. For instance, the waist sizes of the pants ranged from 28 to 55 inches on the orders we received. 

With these advantages that the platform offers, we were able to reduce the lead time of an average of 6-8 months to

• Minimum 2 to maximum 8 days for non-denim pants
• Minimum 3 to maximum 9 days for denim pants

Usually, denim pants have a longer lead time than their non-denim counterparts due to the time required for the particular wash selected by the customer.

Collaboration for the future 

Demand forecasting remains one of the biggest challenges for the fashion industry— one which has ripple effects throughout the supply chain affecting production planning in all tiers and creating products that may not sell at full price. 

On-demand manufacturing and real-time forecasting are hence gaining more traction. Manufacturers, brands and retailers, and technology platforms like DXM must work closely together to drive this change. Brands’ long-term commitment toward their suppliers is critical for manufacturers to invest in changing their production systems. Small batches of highly customized products can be significantly more expensive to produce as they require more resources and highly skilled workers. Here, the willingness of brands such as Carhartt to support this type of inclusive one-of-a-kind product is essential.

As our DXM Project Lead at Shahi, Sathish Kumar Sathya, Vice President, Operations, summarizes:

“With the Impetus on digital in the current situation, we are working towards focusing on direct-to-consumer channels, and our approach is to build a strong strategic partnership with DXM to ensure higher visibility. We are further expanding our pilot with Carhartt, as this expansion strategy was always part of the long-term plan. We are open to manufacturing on demand with other brands and retailers to do more pilots in the coming months.” 

The pilot has allowed Shahi to implement new tools to innovate our manufacturing model and develop our skills to become more agile and adaptive. The pilot’s success comes primarily from the dedicated and coherent work done by the operations, marketing, and sampling team to create these products — lowering the lead time while maintaining its quality.

We look forward to a future where clothing can be produced with more inclusivity and visibility on demand, leading to less wastage and more efficient use of resources.

The DXM-integrated Carhartt portal is now live. You can explore and order your own customized pair of beloved pants view more.

For product queries, please get in touch with od@shahi.co.in

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Over time, denim has crossed oceans and continents to lodge itself firmly in fashion history. What evolved from a completely practical utilitarian trend turned into a rebellious cultural shift in the 1960s and eventually a lifestyle choice. (read: The history of Denim Jeans).

But as it transforms from workwear to casual, how did manufacturers re-create that same worn-down look? 

Wearing The Pair Down

Denim washing and finishing is a highly resource-intensive process. Conventional methods of mass production also use a large amount of water, chemicals, and energy to produce a pair of jeans.  To find out more, we took a trip to Unit 23, Shahi Exports’ Denim Unit in Bengaluru.  

Pulling off Denim

Shahi set up the Denim Division in 2010, with Unit 23 in Bengaluru. Currently, Shahi has two denim garmenting units (Units 1 & 23) and a laundry with a production capacity of 12 million pieces per year. Since then, this newest addition has led the growth towards sustainable operations internally and with the customers.

“Judiciously utilizing the four essential resources— chemicals, energy, water, and our people define sustainability for us. Sustainable operations are not limited solely to environmental factors, but the well-being of our workers is equally important,” Mr. Nandheesh Gowda, General Manager, Laundry.

 Shahi has adopted the Laundry 5.Zero strategy that has been predicted to revolutionize the denim industry.

We bring together cutting-edge technology from all over the world to make a truly global product, not just fashionable but sustainable.

Scrubbing the Chemical Out 

Rethinking the production from the design stage, keeping in mind circularity, is key to ensuring the sustainability of the product. The design team at Shahi starts working from the initial stage– design to minimize the environmental impact of the production. We opt for lighter shades of denim which require a light wash. They demand significantly shorter washing cycles, thus reducing the environmental impact.

A pair of jeans can be ‘weathered or distressed’ using wet and dry finishing processes. Traditional methods of distressing the fabric require workers to scrub them by hand. As the scrubbing sheds layers of blue dust, it is harmful to workers’ health. The finishing process may also require washing with chemicals. Aligning with Laundry 5.Zero, Shahi uses laser technologies to reduce the use of grinders and scrubbers.

The intensity of the distressed look depends on three major factors: wavelength, power density, and pulse width of the laser beam. A computer inputs the desired design and guides the laser over the fabric to create a fading or distressed look. It concentrates heat to decompose the dye according to the desired wash style.

This novel technique provides an alternative to traditional methods such as acid washing, sandblasting, and using potassium permanganate and therefore helps us create a safe and comfortable working environment for our workers. Additionally, laser technology increases our flexibility, speed, and precision to meet significant production needs.

Shahi has developed a single window to facilitate the purchase of chemicals. It helps us to screen the required information about a chemical before purchasing it. The single window is compliant with international standards such as the Zero Discharge of Hazardous Chemicals Manufacturing Restricted Substances List. It makes sure that we do not use any restricted chemicals harmful to the environment in our production and eases the procedure to procure the chemicals. Streamlining the process also helps Shahi align with the needs of our customers. The larger goal is to protect our production workers, local communities, and the environment from the impact of banned or hazardous chemicals and, ultimately, the consumer.

Shahi constantly collaborates with the best chemical suppliers to better their processes in the Denims Division.

Sustaining the Classic Blue

The classic blue in denim is created through water-intensive washing processes. A significant way to develop a more sustainable operation for producing denim is to focus on its water consumption. Shahi explored technology providers from around the world to bring down our material liquid ratio (MLR) from 1:6 to 1:1.

The principle

e-Flow technology was ideal for reducing water consumption. The technology turns the chemicals into nanobubbles before being subjected to the washing machine. Nanobubbles of air act as a carrier to transmit chemicals into a garment with a minimal quantity of water and zero discharge. This has led to an average of 95% water savings for every denim washed.

Another technology is the G2 Ozone washing machine, which generates ozone from the air to catalyze the indigo fiber dyeing and produces the authentic worn-down look in the desired shade. The water consumed is reduced by 65% and the energy by 20%. The ozone is re-converted into oxygen and released into the air, leaving no harmful by-products.

While reducing water consumption in denim production is essential, it is equally important to reduce dependence on fresh water as much as possible. By installing state-of-the-art effluent treatment plants, Shahi recycles and reuses 100% of its water usage. Our denim laundry achieved the Zero Liquid Discharge (ZLD) standard in 2019. We constantly monitor the water conserved in laundry through our Environmental Impact Measurement (EIM) tools.

Going the Extra Mile on Energy

85% of the electrical energy consumed in Unit 23 is renewable. Additionally, the unit utilizes zero coal for its operations. Shahi set up a solar power plant of 84 megawatts and 9 megawatts of wind power. We aim to suffice 100% of our electricity needs with renewable sources by 2026.  Substituting conventional sources for low carbon and sustainable alternatives for thermal energy is a top priority for Shahi.

We have several initiatives running across the units, for example— converting most of our high-speed diesel-fired boilers into agro-waste or PNG-fired boilers to generate steam.

Our newer units are built to incorporate green building principles to minimize energy consumption and leverage natural lighting on the shop floor. All the new units harness sunlight to illuminate our shop floors, and the architecture facilitates natural ventilation that reduces heat dissipation from electric lighting fixtures. The reduced temperatures on the shop floor impact our workforce and their environment directly.

Synergizing People and Resources

People and their well-being are integral to sustainability at Shahi, and worker well-being focuses on providing a safe and healthy environment and creating opportunities for growth. 

In a study with the Good Business Lab, we observed that Replacing fluorescent lights with LEDs reduces energy consumption by roughly 85%, reducing the average indoor temperature by 2.4°C. Incidentally, a transition to LED lights also increases the workers’ productivity on the shop floor. 83% of all the lights at Unit 23 comprise LED lighting. We launched a campaign to replace conventional T8 task lamps with LED lighting for individual workers’.

What does it really take to pull it off?

With conscious consumerism on the rise, and the industry grappling with limited resources, the beloved go-to pair of denim will have to transform itself into its most low-impact versions that require minimal resources — and also maximize its life cycle. This means that manufacturers and brands have a pivotal role in revolutionizing the industry right from the designing stage. 

Shahi invested significantly in state-of-the-art machine equipment to upgrade the factory and laundry facilities. To name a few of our many initiatives in the Denims Division— 

• Laser machines from Jeanologia, 
• Chemical auto dosing, 
• Using Ozone, e-Flow, and other water-efficient technologies,
• Developing a single-window chemical purchase window to prevent the entry of restricted chemicals, and 
• Collaborating with the best chemical suppliers.  

Making it even better

But, Shahi is not stopping here. Our teams constantly look for ways to produce denim wear, maintaining Laundry 5.Zero principles; or synonymously ‘The Jeans of the Future.’ The key is to find the perfect set of equipment and technologies that complement each other in energy, water, and chemical consumption. 

We are working on additional strategies like:

Unit 23 showcases sustainable operations at every step of the way and progressively eliminates processes that degrade the environment in bringing a piece of denim alive. We look forward to what the future of the denim industry beholds.

The post Sustainability Spotlight | The classic blue denim appeared first on Shahi.

“We are grateful to our partner C&A for working with us to create this truly innovative, first-of-its-kind, circular product. At every step of the design process, C&A and Shahi worked together to find the right alternative materials, chemicals, and other raw materials to achieve the Cradle to Cradle Certified® Gold level.”

– Ruchi Asija, Vice President, Marketing, Shahi Exports

Cradle to Cradle Certified® is awarded by the Cradle to Cradle Products Innovation Institute, a global non-profit dedicated to powering innovation for the circular economy through products that have a positive impact on people and the planet. Product designers, manufacturers, and brands around the world rely on the Cradle to Cradle Certified Product Standard as a transformative pathway for designing and making products with a positive impact on people and the planet. This certified product standard is rooted in the Cradle to Cradle® design principles established by William McDonough and Dr. Michael Braungart. 

To receive certification, products are assessed for environmental and social performance across five critical sustainability categories: material health, product circularity, clean air & climate protection, water & soil stewardship, and social fairness. The product is assigned an achievement level (Bronze, Silver, Gold, Platinum) for each category. Shahi has achieved a Platinum performance level for Material Health, and the Gold level on the other four standard categories. The lead assessment body for this process was Eco Intelligent Growth (EIG) and the material health assessment body was MBDC. 

The fabric for the ‘Arth’ collection was made at Shahi’s weaving mill and the garments were stitched at our apparel factory. The entire collection is made using Global Organic Textile Standard (GOTS) certified organic cotton, more than 96% of which is rapidly renewable cotton. Further, 86% of the water used in fabric processing was recycled at our mill having Zero Liquid Discharge. The finished products are 100% carbon neutral. The products are made keeping the principles of circularity in mind and are 100% recyclable. 

“The Arth collection is a powerful example of how suppliers and brands can work together to design and create materials and products that meet shared objectives for circularity and sustainability,” said Christina Raab, Vice President of Strategy and Development for the Cradle to Cradle Products Innovation Institute. “By achieving one of the highest levels of Cradle to Cradle certification for the collection, Shahi Exports is not only demonstrating the scope of opportunity for supplier-brand partnerships but also the vast innovation and leadership potential of India’s textile mills.”

The Global Sourcing & Sustainability team at C&A said, “Shahi continues to be a steadfast strategic partner for C&A and a driving force for innovation across the global fashion supply chain. When we began bringing Cradle to Cradle Certified® products to market it was clear that Shahi would be a key partner in scaling Cradle to Cradle across categories. For a product and supply chain to become Cradle to Cradle Certified®  it takes an incredible amount of detail and commitment. Most of all, however, it takes supply chain partners with a deep understanding of sustainability, innovation, and their importance to customers, brands, and suppliers. Shahi is a leading supplier in this regard and we are deeply grateful for their continued partnership in driving circular innovation. We look forward to working together to drive Cradle to Cradle Certified® innovations and other ground-breaking sustainability initiatives forward.”

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In the decade of climate action 

The world must act now to minimize the worst consequences of climate change and limit global warming to 1.5 °C by 2030 as per the Paris Climate Agreement. The fashion industry is a major contributor to climate change responsible for 2.1 billion metric tons of greenhouse gas (GHG) emissions in 2018 (4% of the global emissions). On the other hand, this industry holds the potential to cut around 1 billion metric tons of GHG emissions by 2030 by improvements in energy efficiency and a transition from fossil fuels to renewable energy sources at the manufacturing and fiber production stage (Mckinsey, 2020).

At Shahi, resource conservation and pollution prevention have been the core values of our corporate leadership and sustainability strategy. We have a vision to power our operations with 100% renewable electricity. As India progresses towards its Intended Nationally Determined Contribution to reverse climate change, we are committed to doing our part to reduce our carbon emissions and become energy efficient. Here’s how*:

• We have set up two solar power plants of 32 MW and 52 MW capacities each in the South Indian state of Karnataka which catered to 65% of our electricity requirements.
• We have set up an 8.57 MW wind energy plant in the state of Maharashtra.
• Combining energy generation through process steam turbines, wind, and solar plants, 77% of electrical energy consumption across Shahi was carbon-neutral.
• Due to carbon-neutral energy consumption, we have avoided 103,000 MT of GHG emissions.
• From the baseline year 2016, we have reduced 50% scope II GHG emissions across our operations.
• We are investing in energy-efficient infrastructure in our factories like LED lighting, high volume low-speed fans, and servo motors in sewing machines resulting in significant power saving.

*Updated data for 2019-2020

Our energy conservation strategy

We started exploring clean energy and energy conservation solutions in 2013. Because electricity is the most commonly used type of energy and one of the key cost factors, our senior management commissioned a survey to the Environmental Sustainability team to identify major electricity consumption sources in our factories and textile mill in Karnataka. The survey analyzed that lighting accounted for a major proportion of electricity consumed on-site. A replacement in lighting to energy-efficient LEDs can significantly reduce power costs and result in energy savings. Based on the survey results, we launched a campaign to replace conventional T8 lamps with LED lightings in our factories leading to 50% power savings and a reduction in average indoor temperature by 2.5 °C. Since then, we have installed LED lighting in all our new factories.

While we were finding other ways to reduce our power consumption through energy efficiency measures, the Karnataka State Government was looking for opportunities to increase the quantum of solar energy in their state. Shahi operates more than 50 factories and a textile mill in Karnataka – a state with rich renewable energy potential. State Government Policies and the Regulations issued by the Karnataka Electricity Regulatory Commission (KERC) have helped the growth of renewable energy in the state. As per the KERC (Procurement of Energy from Renewable Sources) Regulations, 2011 and the amendments enacted in the year 2014-15, any consumer having electricity demand exceeding 5 MW, and using non-renewable sources, must procure renewable electricity through a power purchase agreement or generate renewable electricity for self-consumption. Thus, we started focusing on how to adopt renewable energy. The intention was clear – to pursue a long-term sustainable and economically feasible plan to reduce our carbon footprint.

Setting up our own solar power plants

It was a combination of our commitment and favorable regulatory policies in Karnataka which resulted in the development of a solar power project. In March 2018, we set up two solar power plants of 32 MW and 52 MW capacities each in the Bellary and Bidar districts of Karnataka. Spread across 300 acres of land with over 250,000 photovoltaic panels (Solar PV), the plants have a capacity to generate more than 130 million kWh of electricity per year under ideal conditions. This development involved the risk of creating a new asset and its outcomes in the long-term. However, the benefits included savings on conventional electricity costs in the long-term, increased energy independence, and less exposure to fluctuating electricity costs. In 2019-2020, the solar plants catered to 65% of our electricity requirement. Around 125,196 MWh electricity was generated through the solar plants avoiding 103,000 MT of GHG emissions. This emission reduction is equivalent to saving 70,000 MT of coal reserves used in a thermal power plant annually to generate the same amount of electricity.

Solar PV-based electricity generation in India faces certain challenges including the requirement for optimum sunlight and temperature conditions, high upfront costs, availability of land near substations for installation of solar panels, high transmission and distribution losses, varying charges and levies imposed by utilities, and different renewable energy policies and regulations in different states. Karnataka is emerging as a renewable energy surplus state and we believe that the benefits of investing in renewable energy in Karnataka will outweigh the challenges with the supporting policies and strategies in place. The state has also developed the world’s largest solar park which spans over 13,000 acres of land with a total capacity of 2.5 GW. With Amendments in Karnataka Solar Policy, more investment is likely to occur in the renewable energy sector in the state. In addition to the solar plants, we have also invested in wind energy in Maharashtra with seven windmills having a power generation capacity of 10-12 million kWh per year.

Different states have different policies and mechanisms for renewable energy installations. To increase the flow of investment in this sector, India as a country may need standardized norms and regulations across states. The Government of India is also supporting a business-friendly environment for the renewable energy sector. At the UN Climate Change Conference COP25 in 2019, the Indian Ministry of New and Renewable Energy has committed to de-risk investment in the renewable energy sector while involving farmers, commercial and industrial sectors into the renewable value chain.

Beyond renewable electricity 

We believe that balancing the generation of clean energy with operational energy efficiency measures will be key to a successful and sustainable decarbonization strategy. Process steam generated in our operations is being used in steam turbines to generate electricity and thereby reducing our power consumption and GHG emissions. Agro-waste is used as biomass fuel for steam generation through boilers. Further, we have converted most of our high-speed diesel-fired boilers into agro-waste or PNG-fired boilers.

By harnessing new technologies, investing in the right infrastructure, and eliminating process inefficiencies we are further able to accelerate our energy conservation efforts. This includes:

• Replacing T8 lamps with LED lights (50% energy saving), clutch motors with servo motors in sewing machines (55% energy saving), and conventional fans with high-volume low-speed fans (73% power saving)
• Increasing efficiency of boilers by adjusting motor speed through variable frequency drive
• Flash steam recovery
• Usage of occupancy sensors in sparingly used areas
• Comprehensive air leak audits and installation of solenoid valves to prevent compressed air leakages

In our new factories, we are incorporating green building design principles from the planning stage. For example, we are using sunlight illumination on the production floors leading to minimal energy consumption. New factories are being designed to use the maximum amount of daylight and good ventilation.

Future outlook 

Climate change is one of the most urgent challenges of our time. To achieve the scale of renewable power needed to reduce emissions globally, businesses need to follow the path towards 100% renewable energy. Because every business is unique, each transition will be different. However, with new and improving technologies, greater cooperation, favorable policies, and knowledge sharing around the globe, this transition will become increasingly possible. As a responsible manufacturer, we look forward to collaborating with our industry peers, customers, and policymakers to contribute to a sustainable future.

For more information, please write to us at od@shahi.co.in

This blog post has been updated on April 6, 2021. 

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The challenge

More than 80% of India’s agriculture sector comprises of small and marginal farmers* who play a vital role in India’s agriculture and rural economy. Small and marginal farmers, operating on less than two hectares of land, are reliant on traditional farming techniques such as rainfed farming, putting them at risk of water stress during critical growth stages of their crops. This ultimately leads to loss of yield and income, pushing Indian farmers towards a vicious cycle of poverty. Yet another challenge for the apparel supply chain is the large volumes of textile waste that is generated in manufacturing and not being recycled. One reason for this has been the challenge of separating blended materials. Solving both of these issues is critical to the long-term sustainability of the apparel industry.

HKRITA’s superabsorbent polymer (SAP)

HKRITA has developed a hydrothermal separation technology to recycle cotton and polyester blend textiles. The hydrothermal process has been successful in recovering polyester fibers and converting cotton into cellulose powder, which is then used to make a superabsorbent polymer (SAP). Due to its inherent properties, SAP can retain soil moisture for longer periods and reduce water consumption in farming.

https://www.youtube.com/watch?v=nntiSOjl1kE&feature=youtu.be

(A short video on the production of cellulosic superabsorbent polymer (SAP) from post-consumer textile waste)

A field experiment with SAP

In early 2020, HKRITA and Shahi partnered to conduct an experiment to understand the effects of SAP facilitated cotton plantation under different irrigation systems. The study utilized observational data generated from a field experiment on yield performance and quality. The experiment was conducted in Bellary, Karnataka in a land area of 2,000 sq meters.

The land was divided into four “replications” to test the impact of SAP in four different farming systems as shown in the illustration below:

• Replication #1: Drip irrigation with mulching (advanced farming techniques)
• Replication #2: Drip irrigation (slightly advanced farming techniques)
• Replication #3: Flood irrigation (conventional farming)
• Replication #4: Flood irrigation with extreme water stress (conventional farming + water stress)

Each replication had a “treatment line” (with SAP) and a “control line” (without SAP), and each line had 10 plants. Replication #3 and Replication #4 represent the most common ways of irrigation in India (reliance on rainfed farming), and Replication #4 was designed to mimic extreme water stress situations where the irrigation interval was around 10-15 days.

Findings and way forward

Across all replications, SAP (treatment) lines had a higher yield compared to the control lines. Replication #4 with SAP (L7 in the illustration above) which is closest to conventional farming was the best performing line with a 25% higher yield than the control line and 4.28 Micronaire (MIC), which is an indication of a premium and fine fiber. Thus, we conclude that:

• SAP improves water retention at critical growth stages especially in extreme water stress as seen in L7.
• SAP is eco-friendly: no traces were observed after the completion of the crop cycles.
• It can be used by cotton farmers to enhance their yield and potentially improve quality.

Results from the meticulously planned experiment are promising, especially for Indian farmers that largely rely on rainfall. Shahi plans to work with HKRITA to conduct larger trials in 2021 to further understand the application and impact of using SAP to grow cotton more effectively.

More resources

To learn more, watch the recording or read the press release of the “The Future of Fashion: Reimagine, Regenerate and Close the Loop” Webinar hosted by HKRITA on November 19, 2020, where we shared insights from this experiment.

*Ministry of Agriculture & Farmers Welfare, Department of Agriculture, Cooperation & Farmers Welfare, Government of India, 2015

For more information, please write to us at od@shahi.co.in

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