As the textile industry grapples with environmental concerns and changing consumer preferences, sustainability has become a core focus for leading manufacturers. Rohit Aggarwal, who recently took over as CEO of Lenzing AG, an Austrian leader in sustainable fibers, shares his vision for the company’s future, particularly in emerging markets like India. In an exclusive conversation with Financial Express Online ahead of his meetings with ministers and representatives in New Delhi, Aggarwal outlines the company’s strategy to drive innovation, expand its global footprint, and contribute to India’s sustainability goals.
Aggarwal, who brings over three decades of leadership experience in the textile and chemical sectors, is poised to guide Lenzing through an evolving landscape. Under his leadership, the company is focused not only on sustainability but also on developing technological solutions that enhance transparency and efficiency across its value chain.
A New Vision for Sustainability and Innovation
For Aggarwal, the future of textiles hinges on two critical pillars: sustainability and innovation. Lenzing has long been a pioneer in producing fibers made from regenerated cellulose, which is derived from natural, renewable resources like wood pulp. This shift to plant-based materials is in direct response to growing concerns about the environmental impact of conventional textile production, particularly the excessive water usage and pesticide reliance associated with cotton farming, as well as the pollution caused by synthetic fibers.
“We see a promising future ahead, with sustainability at the core of what we do,” Aggarwal says. “At the same time, we recognize that continuous innovation will be key to staying competitive. Our ability to adapt and improve our products and processes will help us meet the evolving demands of the textile industry.”
Aggarwal’s commitment to both sustainability and innovation aligns with global trends. As the world shifts toward more eco-conscious consumption, Lenzing is working to ensure that its products not only meet but exceed the growing demand for more sustainable alternatives to traditional fibers. From offering biodegradable textiles to pioneering new technologies that reduce production waste, Lenzing’s efforts are helping set new benchmarks in the industry.
India: A Critical Market with Immense Potential
India represents a key market for Lenzing’s sustainable products, given the country’s large and rapidly growing textile and apparel industry. However, Aggarwal highlights that regulatory challenges have created hurdles to accessing this market fully. A recent Bureau of Indian Standards (BIS) order related to viscose fibers has limited Lenzing’s ability to export products from certain global production sites, which in turn has stifled potential growth in India.
“India is an important market for us, and we see a lot of opportunities here,” he explains. “However, regulatory barriers, such as the BIS Quality Control Order, have made it difficult for us to fully engage with the market. We are in talks with Indian authorities to resolve these issues so we can expand our presence and better serve local demand for sustainable fibers.”
These barriers have prevented Lenzing from offering its full range of products, despite meeting international quality and sustainability standards. However, Aggarwal remains optimistic about the future. “Once these issues are addressed, the investment case for India becomes much stronger,” he says. “India is not just a growth market; it’s a key part of our strategy to expand into emerging economies.”
The Rise of Regenerated Cellulose Fibers
As the textile industry faces increasing pressure to reduce its environmental footprint, alternatives to traditional fibers like cotton and oil-based synthetics are gaining traction. Regenerated cellulose fibers, which are made from renewable resources like wood pulp, offer a sustainable solution that is both eco-friendly and high-quality.
Aggarwal notes that while cotton has long been the go-to fiber for the textile industry, its limitations are becoming more apparent. “Cotton faces challenges around land use, water consumption, and climate impacts. As the demand for textiles grows, the need for alternatives becomes more urgent,” he says.
In this context, regenerated cellulose fibers are poised to play a pivotal role. “These fibers are plant-based, biodegradable, and require less water and energy to produce compared to cotton. They offer the same comfort, feel, and performance that consumers expect from cotton, making them an ideal alternative.”
Lenzing’s eco-friendly fibers, such as TENCEL and VEOCEL, are already helping lead the charge in replacing more polluting materials. These fibers are not only sustainable but also offer significant advantages in terms of reduced environmental impact during production. Aggarwal highlights that the future of textiles will likely see an increasing shift toward these plant-based alternatives, as they offer both performance and sustainability in a way that traditional fibers cannot.
Driving Transparency and Digital Innovation
In addition to sustainable materials, Aggarwal sees technological innovation as essential to Lenzing’s strategy. One of the most important areas of focus is improving transparency and traceability across the supply chain, an issue that is becoming more pressing as consumers demand greater visibility into the sourcing and environmental impact of the products they purchase.
“We are investing in digital technologies to improve supply chain visibility,” he explains. “Our fiber identification system, along with our E-branding platform, provides consumers and manufacturers with clear information about the sustainability credentials of our fibers. We’re also working on real-time ocean shipment tracking to give customers live updates on the status of their orders.”
He views these innovations as integral to maintaining consumer trust and driving the growth of sustainable products. “As sustainability becomes an increasingly important factor in purchasing decisions, providing transparency is critical. Our digital solutions will help ensure that the fibers we produce are not only high-quality but also verifiable in terms of their environmental and social impact.”
Overcoming Trade Barriers and Regulatory Hurdles
While Lenzing’s sustainability-focused approach positions it for long-term success, trade barriers remain a significant concern, particularly in markets like India. He is clear that these barriers must be addressed in order to unlock the full potential of the market.
“Regulatory hurdles and trade barriers often create inefficiencies and disrupt free market competition,” he says. “While they may offer short-term protection, they can hinder long-term industry growth. Allowing more freedom in sourcing and trade will ensure that companies have access to the best materials available, which in turn will help them remain competitive in the global market.”
One specific issue that could impact Lenzing’s ability to expand in India is the delay in the India-EU Free Trade Agreement (FTA). “It’s certainly something we are keeping an eye on,” says Aggarwal. “The FTA would provide more favourable conditions for trade between India and the EU, reducing tariffs and simplifying regulatory processes. If delayed, it could have an impact on our operations, as it would prolong the uncertainty around trade barriers and market access. As a global company, we are strong advocates for free trade, which ultimately drives innovation and economic growth.”
As India looks to meet its own sustainability goals, overcoming these barriers will be key. He stresses that removing obstacles to trade will not only help companies like Lenzing contribute to India’s sustainability efforts but also strengthen the country’s position in the global textile market.
Looking Ahead: The Role of Sustainability in a Globalized Economy
Aggarwal’s vision for the future is clear: sustainability will remain at the heart of Lenzing’s strategy, but innovation and transparency will be the driving forces behind its growth. As the textile industry continues to evolve, companies that can adapt to changing consumer demands and regulatory landscapes will be best positioned for success.
“Technology, sustainability, and transparency will define the future of the textile industry,” he concludes. “We are committed to staying at the forefront of these trends, ensuring that we not only meet today’s challenges but also shape the future of the industry for generations to come.”