Panipat, a city synonymous with textiles, is rapidly evolving from a traditional weaving hub to a powerhouse of sustainable yarn and fibre production. While the world grapples with escalating textile waste, this Indian city is pioneering solutions, transforming discarded fabrics into valuable resources. Beyond the numbers highlighted in recent reports, a deeper look reveals a complex ecosystem driving this transformation.

The challenge and the opportunity

The global textile waste crisis is alarming. Ellen MacArthur Foundation says, less than 1 per cent of the material used to produce clothing is recycled into new clothing, a loss of more than $100 billion worth of materials each year. A report by Quantis, a sustainability consultancy, highlights the fashion industry contributes up to 8 per cent of global greenhouse gas emissions. In India alone, the Central Pollution Control Board (CPCB) estimates millions of tonnes of textile waste are generated annually, with a significant portion ending up in landfills.

However, this challenge leads to a substantial economic opportunity. The global recycled textile market is projected to grow significantly. A report by Grand View Research say the global recycled polyester fiber market size was valued at $6.7 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.2 per cent from 2023 to 2030.

Panipat's unique position

Panipat's strategic location and decades of experience in textile processing have positioned it as a key player in this growing market. The city's MSMEs, numbering over 2,000, are at the forefront of this transformation. These MSMEs have adopted various methods to boost their textile processing business.

Table: Panipat's textile industry snapshot

Diversification and service-based solutions: Companies are moving beyond mere product recycling to offer comprehensive waste management solutions. This includes handling specialized recycling of items like national flags, demonstrating a commitment to responsible disposal and corporate social responsibility.

Technological advancements in sorting: While manual sorting remains crucial, the adoption of advanced technologies like NIR scanners and UV-based conveyor systems is improving efficiency and accuracy. Innovations that allow for the sorting of multi blend materials is increasing the availability of usable fibre.

Focus on high-quality yarns: The shift towards producing finer count yarns (NE 10s and above) signifies a move towards higher value-added products. This allows companies to cater to a wider range of applications and meet the demands of discerning international buyers.

Vertical integration and R&D: Companies are investing in vertical integration, controlling the entire process from waste collection to yarn production. This ensures quality control and enables the development of specialized yarns. Moreover, significant investment in R&D is aimed at producing even finer yarns and expanding product offerings.

Emphasis on certifications: The growing demand for certified sustainable products is driving companies to obtain certifications like GRS, GOTS, OEKO-TEX, and ISO 9000. These certifications enhance product credibility and attract environmentally conscious buyers.

PET bottle recycling: Companies such as KS spinning are using recycled PET bottles to create polyester blends, reducing the reliance on virgin polyester. This practice is growing in popularity and is being adopted by more companies.

Despite its success, Panipat's textile recycling industry also faces several challenges. For example, access to capital and technology is still an issue. MSMEs often struggle to access the capital needed for technological upgrades and innovation. The inconsistent quality and availability of textile waste also poses challenges to maintaining consistent output quality. Growing local and global competition requires companies to innovate and produce differentiated products. And brands and manufactures need to design products that are easier to recycle to stay ahead of competition.

However, the industry's commitment to sustainability, coupled with increasing global demand for recycled textiles, presents a promising future. The implementation of policies like the EU's Circular Economy Action Plan and India's EPR framework will further drive the adoption of sustainable practices.

Thus Panipat's journey exemplifies the potential of circular economy principles in transforming waste into valuable resources. As the industry continues to innovate and adapt, it is poised to play a crucial role in shaping a more sustainable textile future.