Tag: Sustainability

  • Threads of Transition: Shahi Co-Hosts Climate Workshop

    Threads of Transition: Shahi Co-Hosts Climate Workshop

    AVPN, Shahi and Good Business Lab (GBL) co-hosted “Threads of Transition: Financing a Low-Carbon, Inclusive Textile Industry” at the Shahi Faridabad Facility. This day-long immersive curtain-raiser for the AVPN Global Conference 2026 brought philanthropic funders, impact investors, multi-stakeholder groups and innovators out of standard conference halls and directly into the rhythm of an active production environment.

    Across Asian manufacturing hubs, the textile sector contributes roughly 2% of global greenhouse gas emissions while providing livelihoods for over 90 million people, the majority of whom are women. As delegates gathered, the opening discussions framed four foundational inquiries for the day: understanding why proven green innovations struggle to scale, distinguishing real operational risks from simple unfamiliarity, exploring how catalytic funding can de-risk commercial investment, and shifting from isolated facility pilots to industry-wide transformation.

    Shahi’s Decarbonization Journey

    Priydarshini Gouthi from Shahi’s ESG and Innovation team opened the presentations by introducing the audience to the challenge of driving decarbonization across the apparel value chain, using Shahi Exports as a case study. She touched upon the various efforts that Shahi has undertaken to mitigate emissions, including building over 143 megawatts (MW) of captive renewable energy capacity, transitioning thermal boilers to biomass, implementing energy-efficient measures, and reducing water intensity.

    Underpinning the climate transition efforts is a focus on driving innovation through the ‘scout- to-scale’ process, in which Shahi applies a structured five-stage pathway to identify, evaluate, test, and eventually scale the best solutions.

    Decarbonization, Financing, and the Just Transition

    Aravindan Srinivasan from AVPN moderated a discussion with Anant Ahuja (Shahi Exports), Christiane Dolva (H&M Foundation), Karan Kumar (Laudes Foundation), and Eshika Gombar (Good Business Lab).

    The conversation opened with a shared call to demystify climate action, ensuring conversations stay accessible and grounded in shop-floor realities. Anant Ahuja emphasized that while regulatory frameworks such as India’s Carbon Credit Trading Scheme and brands’ net-zero targets create urgency, the operational and financial burden of piloting new technologies falls heavily on manufacturers. Christiane Dolva and Karan Kumar highlighted that philanthropic foundations must deploy catalytic risk capital to absorb early piloting uncertainties, prove commercial viability, and overcome the bottleneck between pilot innovations and market-wide adoption.

    The panelists stressed the importance of long-term co-creation between brands, innovators, and suppliers. Anant pointed to Shahi’s partnership with innovators, which required more than two years of iterative on-site trials before it was possible to confidently set specific targets. Eshika shared evidence showing that environmental upgrades directly support worker well-being: replacing older lighting with energy-efficient light-emitting diode (LED) fixtures across 26 factories reduced electricity demand and lowered ambient heat on the shop floor. Similarly, operational adaptations such as structured hydration and rest breaks during extreme heat protect health and reduce on-site medical clinic visits without lowering production output. 

    Her insights came in the backdrop of GBL’s work with  MSMEs to adopt energy-efficient technologies that cut both costs and emissions, supporting decarbonization across the textile sector without compromising worker health. The session concluded with a call for stable state policies, such as grid transmission fee waivers for off-site solar energy, to help small and medium enterprises adopt clean technologies.

    Factory Floor Immersion

    After stepping out of the conference room, delegates walked the shop floor at our Faridabad facility to observe apparel manufacturing firsthand. The guided walkthrough followed the journey of a garment through pre-production Sampling, fabric Cutting and waste segregation, assembly Sewing lines, quality Finishing, Packaging, Centralized Washing, Boilers, and the on-site Effluent Treatment Plant (ETP). 

    Walking through the production lines gave delegates a tangible view of industrial scale and operational complexity. Attendees observed how material flow, thermal steam distribution, water recycling systems, and line balancing work together in real time. The tour highlighted how physical safety measures, ergonomic workstations, and resource-efficient machinery operate alongside welfare facilities to create a safe, supportive, and dignified workplace.

    The Ultimate Game of  Waste Management with Thumbi Labs

    In the afternoon, Thumbi Labs led an interactive simulation that placed participants in the roles of enterprise decision-makers managing the post-consumer textile lifecycle.

    Delegates experienced the direct friction between financial viability and environmental sustainability as they balanced collection costs, logistics, and debt repayment against the risk of textile waste ending up in landfills. Managing capital constraints such as choosing between formal bank loans at 11% interest and informal credit at 36% interest revealed how access to finance dictates an enterprise’s ability to scale. The simulation made it clear that enterprises working in isolation quickly faced insolvency, whereas businesses that formed regional alliances, shared processing infrastructure, and coordinated collection networks successfully built viable, low-waste circular models.

    The Road Ahead

    The workshop closed with actionable takeaways on what the textile ecosystem must prioritize to move from ambition to implementation:

    • Start: Involving manufacturers from the beginning to co-design transition roadmaps, realistic timelines, and procurement criteria.
    • Stop: Re-diagnosing known industry challenges; move away from repetitive high-level reports and focus on financing execution.
    • Continue: Building candid platforms for multi-stakeholder dialogue, expanding blended finance mechanisms that absorb initial risks, and supporting innovators on the ground.

    Grounding climate conversations in the daily realities of manufacturing proves that true sustainability requires shared accountability. Shahi remains committed to working with platforms such as AVPN, brand partners, research institutions, and innovators to build a low-carbon, resilient, and inclusive future for apparel manufacturing.

  • Which Measures to Pick: ‘Bang for Buck’ Decarbonization Tool

    Which Measures to Pick: ‘Bang for Buck’ Decarbonization Tool

    For years, sustainability tools in the apparel sector have traveled down a strict one-way street: from brands and consultancies down to manufacturers. What they are missing are the variables and nuances that factory managers on the ground experience and must tackle to first prove the financial return on those upgrades to even begin the conversation with brands, banks, and their own leadership. But that can be fixed with a simple tool that no one built until now.

    Shahi Exports co-commissioned and led the development of Bang for Buck—a collaborative project facilitated by the Fashion Producer Collective, alongside fellow manufacturers Elevate Textiles and Epic Group, with support from GIZ FABRIC and technical expertise from Grant Thornton Bharat. Quietly radical in its approach, this free, open-access tool covers 22 decarbonization technology measures. These are practical, proven interventions selected by suppliers to work within real-life constraints across diverse factory setups. The tool enables sustainability managers to calculate the exact emissions impact relative to financial ROI, giving them precise data and the language to justify green investments to stakeholders.

    What makes Bang for Buck truly unique is the intensely collaborative process behind it. Suppliers weren’t brought in to simply “review” at the eleventh hour but were made co-designers from the very first page. Every assumption was named and debated out loud.

    We didn’t just stop at asking how much a technology could cut emissions, but went on to dig deeper. Does this data actually exist within a standard manufacturing company? Who will own it? Is the output robust enough for a plant manager to stand in front of a CFO and win the argument? Even the final paper was written jointly, making sure the manufacturer’s voice remained primary.

    The process ultimately revealed:

    While technical realities like grid factors and local infrastructure vary by region, the core pressures manufacturers face are identical worldwide.

    Whether in South Asia or Southeast Asia, suppliers grapple with accessing upfront capital, verifying technology performance, and communicating ROI. Bang for Buck engages with these realities and changes the traditional supply chain dynamic, proving that repeatable, supplier-led collaboration is not only possible but indeed essential for genuine industry transformation.

    Read the Full Article on Substack

    Download the Bang For Buck Tool Here

  • Heat Stress, Climate Adaptation, and Shared Accountability

    Heat Stress, Climate Adaptation, and Shared Accountability

    The inside of an apparel factory feels completely different depending on where you stand. In the raw fabric warehouse, the heat can be heavy, stagnant, and dry. Walk fifty paces into the finishing section, and the equipment adds humidity, driving up the wet-bulb temperatures (the metric that dictates how effectively the human body can cool itself).  

    Governments and global organizations have responded with a deluge of directives—by some counts, over 200 distinct heat stress reports and recommendations have been issued worldwide, including those from HeatWatch, the American Apparel & Footwear Association (AAFA), NYU Stern Center for Business and Human Rights. 

    The variance in felt temperatures, coupled with the structural malleability of factories, presents a unique challenge: guidelines are everywhere but not uniformly applicable. 

    At Shahi, we have spent time mapping out the operational reality of modern manufacturing. With more than 50 manufacturing facilities and over 100,000 employees, we are treating thermal comfort as an operational baseline. 

    Understanding Baselines

    Intense, dry pre-monsoon heat has always been a seasonal reality in northwestern and central India. However, climate change has fundamentally altered the baseline, requiring action to adapt to this new normal and to identify interventions across a diverse range of climates. 

    In April 2026, global interest in heat stress reached an all-time high. While Google searches for “what is heat stress” grew by 50% over the last five years, technical queries for “heat stress training” jumped by 140%. As global weather patterns continue to shift, what people are asking is “How do we deal with it?” and as the jump in the query really indicates: “How do we do it at Scale?”

    The decade spanning 2015–2025 was the hottest on record for India, with 2024 tracking as the warmest year since 1901 (+0.65°C above the 1991–2020 average). As nighttime temperatures rise, it can also become harder for industrial buildings to dissipate the heat accumulated during the day. This creates a compounding thermal trap before the next morning shift even begins. A recent study in the Delhi-NCR region indicated a 37% increase in worker absenteeism during peak summer heatwaves.  At Shahi, we ground our climate strategy in this internal baseline: mean factory floor temperatures can reach 35°C (95°F) during peak summer months. 

    Heat stress in India is not necessarily episodic; rather, it is the new, everyday reality we are grappling with. Hence, extensive contingency or extreme planning is necessary but not sufficient. Shahi’s focus is on driving year-round thermal comfort through a combination of measures. 

    Building Blocks: What are we working with?

    Mitigating heat stress at scale requires balancing significant capital with daily operational friction.

    Shahi’s newer manufacturing units are intentionally designed using built-in heat-reduction measures from the ground up.

    These include high ceilings, a limited number of floors to avoid vertical stacking, greenery planning, and more. Our extensive campaign to replace conventional lighting with energy-efficient LEDs achieved up to 50% power savings and reduced average indoor shop floor temperatures by 2.4°C, directly improving worker comfort and productivity. 

    Retrofits and upgrades in older buildings improve heat reduction and air circulation. This includes applying high-grade heat-reflective roof paint and installing automated insulated panel sheets to block radiant heat in existing brownfield structures. We are rapidly closing the gap toward our goal of 100% renewable electricity, with 68% of electricity currently coming from renewable sources.

    “It is clear to us that while a minimum threshold is set by the central policy; however, we must recognize that no two facilities or regions are identical.  This is where a centralized guideline must have a high-agency-driven, decentralized flexibility to determine the right set of measures at each facility.” — Jayraman Ramesh, Head of Governance

    Worker Wellbeing: Beyond Contingencies

    With a clear baseline, we integrated mitigation measures directly into our Occupational Health & Safety Management (OHSM) framework. 

    Hyper-Local Microclimate Analysis

    Ambient outdoor forecasts do not accurately reflect the internal dynamics of an industrial facility. Thermal conditions vary significantly across factory sections, including Sewing, Finishing, Packing, Cutting, Washing, Boiler rooms, and Effluent Treatment Plants. Shahi’s maintenance and engineering teams conduct targeted internal floor tracking systematically throughout the day across all operational zones. As temperatures rise, factory managers ensure that cooling systems are operational and that air circulation patterns and hydration supplies are in place.

    “A thermometer measures the temperature, but our workers tell us the actual impact. By integrating heat mitigation into our existing Occupational Health & Safety Management (OHSM) and worker-voice platforms, we ensure that safety protocols are driven by real-time human feedback, not just static legal compliance.” — Chithra Prasad, Head of Social Sustainability

    Access to Care and Work Protections

    Besides technical controls in place to manage ventilation, our on-site Health Centers and rapid-response first-aid teams step in. Shahi training protocols require responders to know how to distinguish between Heat Exhaustion and Heat Stroke and treat them. 

    Importantly, all hydration and cooling breaks are flexible and entirely non-penalized, protecting workers from operational or efficiency pressures. Moving beyond just plain water to distribute Oral Rehydration Salts (ORS), buttermilk, and traditional, nutrient-dense ragi malt via factory canteen interventions. Employees also participate in peer-monitoring networks to look out for early warning signs in their immediate teammates.

    Vulnerable Profiles and Residential Accommodations

    An effective heat management strategy should extend past active production lines to protect vulnerable individuals and cover residential facilities.

    • Housing Audits: We conduct rigorous audits of all residential facilities for migrant workers to ensure proper cross-ventilation and compliance with occupancy limits. 
    • Maternal Health Management: Pregnant workers are proactively relocated away from heat-generating lines or high-density machinery, re-stationed directly under active cooling vents, and given extra, structured rest periods.
    • Creche Climate Standards: On-site childcare facilities must comply with thermal standards and ensure that children receive frequent water breaks, suitable food, are dressed appropriately, and are kept out of direct sunlight.
    • Outdoor Work: Workers follow shift limitations during high-temperature warnings and receive training on working in high-temperature conditions. Heavy physical outdoor work is avoided between 12:00 PM and 4:00 PM.

    Amplifying Worker Voice through Digital Feedback

    While technical logs provide helpful baseline numbers, capturing the direct feedback and experience of the workforce is critical for identifying localized operational issues. Shahi bridges this gap by leveraging Inache, our proprietary digital worker-voice platform. Using anonymized digital channels, Inache enables operators to directly flag real-time floor conditions such as a broken fan matrix, a malfunctioning water purification station, or localized stuffiness on a specific line. This combination of technical monitoring and anonymous reporting transforms heat mitigation from a top-down policy into an active, responsive feedback loop.

    More than Mitigation: The Path Forward

    Mitigating heat stress undeniably extends to broader macro-level issues the world grapples with. As our baseline establishes, for each region on a floor, the intervention to reduce heat generation at the source will require a host of innovative solutions. Shahi is partnering with our value chain to dive deeper and find solutions.

    Let’s be candid: true partnership requires acknowledging what is difficult. When heat-stress metrics trigger safety protocols, it directly impacts the baseline mechanics of a factory.

    The Operational Friction                    

    • Production Strain: With average working hours declining by 0.4 hours and overtime dropping by 32%, meeting strict delivery targets while maintaining mandatory rest cycles requires deep alignment with buyers.               
    • Architectural Limits: Retrofitting older buildings presents physical limitations, facing a scarcity of scalable, commercially viable cooling technologies.
    • The Data Maturity Gap: The difficulty of tracking subjective, behavioral human outcomes with the same mechanical precision used for carbon or water data.

    The true value of guidelines is their clear focus on joint accountability and shared responsibility. Upgrading heavy factory engineering infrastructure, installing large HVAC systems, or automated insulation retrofits requires significant capital. These expenses are long-term supply chain investments, not isolated supplier overheads. 

    An Integrated Approach for Brands and Suppliers: 

    • Shared Capital Allocation: Executing co-investment programs to fund advanced structural cooling improvements and clean energy infrastructure.
    • Flexible Sourcing Timelines: Adjusting production metrics and delivery windows during extreme regional heatwaves so factories can manage safety adjustments without facing commercial or logistical penalties.

    “Climate adaptation is one of the most complex challenges facing manufacturing today. Building resilience will require suppliers to reassess both operational costs and factory design, while working closely with brand partners to align on practical, long-term solutions. Adaptation cannot be treated as a traditional compliance exercise where investments are simply mandated. Meaningful progress will depend on shared commitment, coordinated action, and strategies that are both effective and economically sustainable.” — Anant Ahuja, Director ESG & Sustainability

    Progress Over Perfection

    As global trade policies adjust to new climate realities, international buyers and retailers must prioritize progress over perfection. There is a need to place a higher long-term value on verified operating logs, transparent development roadmaps, and honest, continuous improvement than on static, flawless data points.

    At Shahi, our approach to heat stress guidelines is driven by proactive operational discipline and worker-centric sustainability beyond compliance. We view comprehensive frameworks as valuable references for benchmarking our internal progress, improving our data systems, and deepening our partnerships. Our ultimate commitment remains clear: to deliver world-class apparel products to the global marketplace without compromising the safety, thermal comfort, and fundamental dignity of the employees who drive our factory floors.

  • Shahi Exports and Innovo Fiber Scale Fibre52® Technology for Lower-Impact Cotton Processing

    Shahi Exports and Innovo Fiber Scale Fibre52® Technology for Lower-Impact Cotton Processing

    New Delhi, India [Date – April 21, 2026]: Shahi Exports, one of India’s largest apparel manufacturers and exporters, has partnered with US-based Innovo Fiber LLC to scale the Fibre52® cotton pretreatment technology across its integrated textile operations. This initiative at Shahi’s knits processing facility marks the largest industrial-scale deployment of the technology globally and a significant step forward in lower-impact cotton processing at scale.

    Together, the partnership brings Fibre52®’s patented biochemistry platform with Shahi’s manufacturing scale to advance more resource-efficient cotton processing within large-scale textile production. 

    Cotton pretreatment is one of the most resource-intensive stages in textile manufacturing. Fibre52® introduces a drop-in, low-temperature pretreatment system that uses ZDHC MRSL v3.1 and OEKO-TEX®-approved chemistries. The process can preserve the natural wax and softness of cotton fiber while eliminating the use of caustic soda and reducing resource intensity compared to conventional pretreatment. 

    Since early 2024, Fibre52®’s trials at Shahi progressed through a structured validation process of 5MT, 20MT, and, more recently, 100MT fabric trials. The results demonstrated reductions of approximately 25% in water consumption and 49% in steam consumption compared to conventional pretreatment systems. 

    As part of the scale-up roadmap, Shahi plans to transition approximately 25% of its knit processing capacity to the Fibre52® pretreatment system, representing close to 3,000 tons per annum. This marks the shift from controlled trials to industrial adoption within a large, vertically integrated manufacturing environment. 

    Shahi and Fibre52® are advancing this collaboration as a long-term innovation platform. The focus is on expanding applications, deepening integration across product categories, and reinforcing scalable pathways for lower-impact textile manufacturing.

    Laura Thornquist, President of Innovo Fiber, Fibre52®’s parent company, said:

    “What makes this partnership unique is not just the technology, but the alignment of vision. Shahi and Fibre52® came together with a shared commitment to rethinking cotton processing at scale. When innovation capability and manufacturing discipline work in sync, real transformation becomes possible.”

    Anant Ahuja, Director of ESG & Sustainability, Shahi Exports, said:

    “This collaboration reflects the value of close partnership. The Fibre52® team brought a different approach, and Shahi focused on how it could work within our production environment. Together, this has progressed from early validation to measurable production outcomes. It is encouraging to see how sustainability and performance can come together at an industrial scale.”

    About Shahi Exports

    Shahi Exports is one of India’s largest integrated apparel manufacturers and exporters, supplying leading global fashion and lifestyle brands. The company operates a broad network of textile and garment manufacturing facilities and continues to invest in manufacturing innovation, responsible sourcing, and resource-efficient production.

    About Innovo Fiber and Fibre52®

    Innovo Fiber LLC is a US-based technology company and the owner of the Fibre52® cotton pretreatment platform. Fibre52® is a patented system designed to prepare cotton for dyeing while preserving the fiber’s inherent qualities, while reducing the resource intensity compared to conventional cotton processing.

  • Shahi Exports Reports Ahead-of-Schedule Sustainability Progress

    Shahi Exports Reports Ahead-of-Schedule Sustainability Progress

    New Delhi, December 16, 2025: Shahi Exports Pvt. Ltd., India’s largest apparel and textile manufacturer, today shared its sustainability progress for Fiscal Year 2024–25. The report underscores the company’s deep commitment to adapt, impact, and inspire sustainability throughout its operations and partnerships, successfully navigating rising global expectations for ethical practices, climate action, and supply chain transparency.

    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:

    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 Missing Link in Scaling Sustainable Fashion Innovation

    The Missing Link in Scaling Sustainable Fashion Innovation

    Why Innovation Scaling in Fashion Has an Integration Problem

    For the past decade, the fashion industry has pursued innovation in materials, chemicals, and decarbonization with urgency, but one critical factor remains overlooked: supply chain integration.

    Brands, funders, startups, manufacturers, and ecosystem partners often operate in silos, despite sharing similar goals. Startups often prioritize partnerships with brands over manufacturers. Brands struggle to make off-take commitments to their manufacturers. Manufacturers are stuck in pilot frenzy, disproportionately bearing financial risk relative to their margins. Funders and VCs sit at a distance from all of this – wondering where to make the most bang for their buck.

    True scale is only possible when all four players—startups, brands, funders, and suppliers—work together.

    Brands: The Power of the Pull

    In fashion, demand signals start upstream. That’s why we begin with brands to convert promising pilots into larger production runs. Here, it’s important to understand the difference between product innovation (like a new material) and production innovation (like a new process). While a new process might offer immediate efficiency gains for a supplier, a new material requires a brand’s commitment to be adopted. But we’re lagging behind as an industry: A report by Fashion for Good states that while 51% of brands have committed to using preferred sustainable materials by 2030, the current global production of next-gen materials is less than 1%​. 

    Valley of death

    Brands often struggle to “pull” these innovations through long-term offtake agreements due to premium costs or minor quality differences before a startup achieves economies of scale. Brand commitments are crucial in derisking the investment for suppliers and helping innovators survive the “valley of death” — a stage between demo and scaling where innovations sink without the required support. Brand consortia can also play a vital role. For example, Fashion for Good has recently launched two “Fiber Clubs” to generate streamlined demand and provide much-needed orders to mills that have relentlessly tested these materials. This helps prevent pilot fatigue for manufacturers, where different brands conduct similar trials in silos.

    Startups: From Brand-First to Supplier-First

    Bio-based prepare-for-dye innovation trial

    For Production Innovation, startups must innovate for the manufacturer, not just the brand. Off-take commitments create predictable demand—but demand only converts if plants can actually run the process. That hand-off is where startups must shift from “brand-first” to “supplier-first.”

    A successful pilot doesn’t guarantee a viable integration in a factory setting. In our experience, the startups that successfully scale are the ones that prioritize direct partnerships with suppliers. They get on the ground, in the mills and factories, to run pilots, tweak recipes, and build trust. They’ve focused on making their value proposition to manufacturers operating on razor-thin margins clear: reducing costs or improving efficiencies. For example, we’re currently working with a bio-based prepare-for-dye startup that has honed its technology for its mill partners, showing tangible resource savings in steam, water, and time. It took us 18 months to go from pilot to bulk trials, and we are now working with them to forge a long-term partnership.

    Funders and VCs: Accelerating Commercial Feasibility

    Even supplier-first startups hit a wall if there are financial constraints. This is where aligned capital can be most effective.

    Financial institutions, VCs, and philanthropic funds are vital to scaling. By linking directly with suppliers, they can accelerate commercial feasibility and make better-informed investment decisions. Funders want their portfolio companies to have industry linkages for testing and validation, and suppliers hold the technical expertise.

    This collaboration moves a technology from theoretical to practical assessment. For example, we’ve worked with a research institution on a grant-funded study on electrification and decarbonization. We were also able to run a grant-funded pilot for an electrical water recycling technology. This helped us move quickly from a theoretical to a practical assessment of the technology for commercialization. 

    Suppliers: The Technical Heart of Innovation

    Financing and studies can de-risk the idea, but suppliers de-risk the integration.

    Suppliers are often seen as passive implementers, but they are the technical heart of innovation. They possess the operational know-how to make a startup’s solution industry-ready. By recognizing their power in innovation integration, suppliers can be proactive partners. They are the most savvy and technically sound stakeholders in the supply chain, and they have the knowledge to mentor and guide startups on the viability and scalability of new solutions.

    Across these roles, the pattern is clear: demand signal (brands), an impactful idea that can scale (startups + suppliers), and acceleration capital (funders) locked in a single plan—not a sequence of uncoordinated actions.

    At Shahi, we have developed a four-part process:

    This systematic approach allows us to find solutions that directly address our needs, reimagine ideas that aren’t a win-win, and mentor startups to navigate the complexities of a real production environment.

    Define: We frame the problem statement based on the requirements of a mill or business unit. For example, our mills are currently looking for technologies beyond biomass to phase out coal.

    Scout: We leverage our network of accelerators and partners to identify startups that solve our problems. For example, we collaborated with a corporate innovation accelerator to host a “Pivot with Purpose” deal flow session, where nine energy startups presented their technologies to our teams.

    Direct technical due diligence by engineering experts

    Pilot: We design a pilot plan in a controlled environment with a technical lead. For example, for an electrical water treatment technology, the pilot machine and the startup technician stayed at our facility for 10 days, being closely monitored by our Engineering Head. Together, they determined the efficacy of the solution, tweaking the system as they went along.

    Scale: Once a technology clears the pilot and commercial feasibility, it can move into scaling. We recognize that just because something works in a pilot, it may still fail in bulk. If it’s a product innovation, brand pull is needed. For example, we’re currently working with a couple of brand partners to produce bulk orders of a textile-to-textile recycled material.

    So what does a new innovation system look like?

    If we want to achieve true decarbonization and circularity by 2030, we must move beyond pilots that don’t scale. One-off experiments waste time, while integrated partnerships change systems. That means: brands committing to off-take instead of just targets; startups optimizing for factory floors, not press releases; funders underwriting the uncertain middle, where risks are highest but impact is proven; and suppliers leaning in to this process to make innovations industry-ready.

    At Shahi, we’ve built our Define–Scout–Pilot–Scale model to make this kind of integration practical and repeatable. We frame the problem with our mills, bring in the right innovators, and only scale when economics and reliability are clear.

    If you’re a brand, startup, or funder ready to co-design the future of sustainable fashion,

    Join Us

    * S. Barr, T. Baker, S. Markham, A. Kingon, “Bridging the valley of death: lessons learned from 14 years of commercialization of technology education”, Academy of Management Learning and Education, vol. 8, no. 3, pp. 370-388, 2009.

  • FED Case Study on Shahi Exports: Stitching India’s Manufacturing Success

    FED Case Study on Shahi Exports: Stitching India’s Manufacturing Success

    The manufacturing sector in India currently contributes 17% to the nation’s overall GDP. India has the advantage of a young and ambitious demographic dividend. Therefore, it aims to reach 25% of its economic output from the manufacturing sector by FY 2025-26. Several factors can fuel this growth: government initiatives, a young workforce, rising domestic demand, and global supply chain shifts. The textile industry plays a vital role in the manufacturing sector, contributing 13% to the overall industrial production. It is the country’s second-largest employer after agriculture. The industry plays a crucial role in job creation and warrants an in-depth study to identify the challenges and opportunities ahead. 

    To understand the sector’s unique challenges, the Foundation for Economic Development (FED) conducted a comprehensive case study. The study focused on Shahi Exports, India’s largest apparel manufacturer. FED is an organization focused on promoting sustainable economic growth through research, data-driven insights, and strategic partnerships. It aims to provide key stakeholders with the knowledge needed to address challenges and support development across industries. Shahi’s 50-year journey provides a valuable perspective on both the opportunities and challenges within the Indian textile industry.  

    FED’s Analysis of Shahi and its Manufacturing Roadmap

    In the case study, ‘Shahi Exports: Stitching India’s Manufacturing Success,’ FED examines Shahi’s history, evolution, and strategies for navigating India’s manufacturing challenges. Shahi’s rapid and sustained growth, high employment rates, and prominent presence in this labor-intensive industry made it a focal case. 

    FED’s study highlights the challenges that limit India’s ability to leverage its demographic dividend in manufacturing. These include a strict and complex regulatory framework, lengthy compliance management, customs and trade barriers, and logistical constraints from a highly fragmented textile supply chain. Such factors make it difficult for large-scale manufacturers to thrive. FED’s study examines Shahi’s journey and the factors contributing to its growth. From a small home operation with fewer than 15 employees, Shahi has grown into a major employer. Today, it supports over 100,000 individuals, 70% of whom are women. Shahi’s emphasis on leadership management, high operational efficiency, and a commitment to people and the planet have stood out in FED’s analysis. Here are the identified practices that have driven growth:

    • Professional Management in leadership and decision-making
    • Operational Efficiency through Vertical Integration
    • Scaling operations across 8 Indian states
    • Worker-centric policies catering to career, health, and skill development

    Industry-Research Collaboration and Actionable Insights

    The FED study offers a comprehensive view of the industry’s unique challenges, comparing India with competitors like Vietnam and Bangladesh. It is a combination of academic and industry perspectives, bringing structured methodology and actionable solutions. 

    This study also serves as a reminder of the importance of industry partnerships. These partnerships lay a foundation for targeted actions that stakeholders can implement effectively. Building on these insights, the analysis provides a more holistic view of the opportunities that need the synergy of stakeholders across the private and public sectors. Key enabling conditions and ethical business practices can propel the Indian apparel and textile industry towards sustainable growth. To get a holistic view of the study’s insights, read the case study here.

  • Shahi NextGen Partner at Bharat Tex 2025

    Shahi NextGen Partner at Bharat Tex 2025

    Bharat Tex 2025, held at Bharat Mandapam, New Delhi from February 14-17, served as a crucial platform for industry leaders, policymakers, and innovators to converge and chart the course for the future of textiles. As a NextGen Partner, Shahi Exports played a prominent role, driving conversations around sustainability, technological advancements, and workforce development.

    Prime Minister Modi’s Visit and Interaction

    Honorable Prime Minister Shri Narendra Modi visited Shahi’s display and discussed the future of the textile industry with Harish Ahuja, Managing Director and Chairperson at Shahi Exports. They explored strategies to advance sustainability, technology, and workforce development.

    Reflecting on the industry’s direction, Harish Ahuja stated, “The future of India’s textile sector lies in collaboration, innovation, and sustainability. Platforms like Bharat Tex provide valuable opportunities for industry and policymakers to work together. We appreciate the government’s initiatives and remain dedicated to contributing to this shared vision.”

    The Prime Minister also had the opportunity to meet Harshwati, a worker trained under the Samarth scheme. Harshwati shared her inspiring story of transformation, demonstrating how skill development programs can create real employment opportunities. She explained how 40 days of free skill training empowered her to operate various machines and become a skilled worker at Shahi, giving her a sense of independence and pride. Expressing her gratitude, she said, “Mai SAMARTH se Samarth ho gayi hu (SAMARTH has empowered me).”

    Government Engagement Underscores Collaborative Approach

    Key government officials visited Shahi’s stall over four days. Shri Giriraj Singh, Minister of Textiles; Smt. Neelam Shamirrao, Secretary; Shri Rohit Kansal, Additional Secretary; Shri Ajay Gupta, Joint Secretary; and Shri Pabitra Margherita, Minister of State for Textiles engaged in discussions. These interactions reinforced the importance of industry-government collaboration to drive growth and innovation in textiles.

    Bringing the Manufacturer’s Perspective to Industry Panels

    Our leaders participated in key panel discussions addressing industry challenges and opportunities.

    Harish Ahuja discussed manufacturing growth at ‘Scaling up Textile Manufacturing in India: Grabbing Opportunities, Addressing Challenges’ by KPMG.

    Anand PB, Director, Corporate Affairs, explored investment opportunities at ‘Unlocking Karnataka’s Growth Potential: Investment Opportunities in a Progressive Ecosystem’ by the Karnataka State Government. 

    Anant Ahuja, Director of ESG and Sustainability, spoke at ‘Sustainable Futures: Collaborative Pathways’ conducted by NIFT. 

    These sessions brought a range of partners and key stakeholders together from across the supply chain to discuss critical aspects of sustainability, supply chain complexities, industry roles in decarbonization, and government collaboration.

    Shahi’s NextGen Display: Innovation and Legacy

    Shahi’s stall embodied its legacy of excellence and its next-gen approach to manufacturing. The Milestones Wall illustrated key achievements, mapping the company’s journey in the textile industry. The product display featured cutting-edge fabrics designed for both innovation and environmental responsibility. As a NextGen Partner, Shahi continues to push the boundaries of textile manufacturing, integrating tradition with modern advancements.

    At the Sustainability Pavilion: A Five Elements Approach

    Inspired by Prime Minister Modi’s vision for Mission LiFE—”Mission LiFE borrows from the past, operates in the present, and focuses on the future”—the Sustainability Pavilion depicted initiatives by Indian industries that resonate with the five elements. Shahi demonstrated its commitment to representing the element Fire (अग्नि), signifying Energy and Transformation to this vision. Empowering employees through transparent grievance redressal systems and multilingual communication reflects our commitment to the energy of transformation, driving innovation and collaboration.

    Bharat Tex 2025 provided valuable engagement with policymakers, industry leaders, and stakeholders. We are grateful to all visitors and partners for their insightful discussions. Looking ahead, Shahi remains dedicated to innovation, sustainability, and strengthening India’s position as a global textile leader.

  • The Decarb Diet: Insights into the Complexities of Supply Chain Decarbonization

    The Decarb Diet: Insights into the Complexities of Supply Chain Decarbonization

    Albert Einstein famously said, ‘We cannot solve our problems with the same thinking we used when we created them.’ This insight couldn’t be more relevant in global efforts to decarbonize. For the fashion industry— responsible for up to 10% of global carbon emissions; a major problem to solve is halving its emissions in the next five years. With up to 80% of those emissions coming from supply chains, manufacturers like Shahi bear the heaviest responsibility. Accelerating progress on these fronts will require new ways of thinking and working.

    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.

  • Launching our third Sustainability Report for FY 2023-24

    Launching our third Sustainability Report for FY 2023-24

    We are excited to launch the third edition of our sustainability report, ‘Moving the Needle: Adapt, Impact, Inspire.’ In FY 2023-24, we focused on adapting to change, driving impact, and inspiring efforts across the value chain.  

    This year, we have deepened our dedication to sustainable practices for both people and the planet. We’re advancing environmentally conscious actions across our operations to ensure a circular value chain. 

    Anant Ahuja, Director of ESG and Sustainability at Shahi Exports, said,

    “The Sustainability Report has allowed us to track our progress more closely and reflect on both our immediate and long-term strategies. Many of the sustainability challenges the industry faces require innovative solutions, and the data in this report enable us to better understand where to accelerate our innovation efforts and where we are making measurable progress.”

    Key highlights from the report: 

    TO ADAPT:

    Our journey of adaptation aligns with industry shifts and environmental sensitivities, leading to strategic enhancements in governance and operations: 

    • Established a dedicated governance team in FY 2023-24 to uphold accountability. 
    • Partnering with next-gen material and dry processing innovators. We ensured that 50% of the materials we use fall under the sustainable category. 
    • Adapted to the evolving legislative landscape as our Knits Processing Division became one of India’s first mills to undergo the Yarn Ethically and Sustainably Sourced Assessment. 
    • Scaling our flagship digitization project, ‘Trakwel’, across factories.  

    TO IMPACT:

    Our efforts aim to create a positive impact on our workforce, communities, and the planet. In FY 2023-24, we implemented key initiatives to enhance sustainability and social responsibility, achieving meaningful outcomes: 

    People: 
    • Achieved 106% of our STITCH program supervisor training goal.
    • Reached 106% of our goal to train women in Gap Inc. P.A.C.E.
    • Surpassed training goals with 110% completion in BSafe- Grievance Redressal Mechanism awareness. 
    • Reached 98% of skill development targets with local communities. 
    • Reached 20,590 mothers and children under our Maternal and Child Health and Nutrition services, meeting 137% of our goal. 
    • Introduced EWASE (Empowering Women at Shahi Exports) to champion gender equality and support women in advancing to leadership roles.  
    Planet:
    • Achieved 100% coal phase-out in one of our mills. 
    • Scored 68.92% of verified Higg FEM Index Version 4.0 score against a global avg of 48.08%. 
    • Achieved 78% recycled water usage for industrial purposes in our textile mills
    • 100% of the dyes and auxiliaries used in our production processes are ZDHC MRSL compliant.
    • Achieved a CDP score of ‘B’ compared to the global average of ‘C’. 

    TO INSPIRE:

    A key objective is to inspire industry-wide change and elevate standards for environmental and social responsibility. To advance this goal, we’ve partnered with leading organizations:

    • Fashion Pact: Serving on the Fashion Pact Steering Committee, we engage and collaborate on critical industry and environmental issues. This helps us share a supply chain partner’s perspective and learn from the industry’s best practices.
    • Transformer’s Foundation: Collaborated with The Transformers Foundation and peers like Epic Group, Simple Approach, and Norlanka to create An Apparel Supplier’s Guide to Key Sustainability Legislation, outlining 12 upcoming laws in the US, UK, and EU.
    • Fashion Producer’s Collective: Serving on the Producer Committee to amplify producer voices, share knowledge, and drive sustainable fashion leadership. 
    • International Apparel Federation: Joined the federation to strengthen sustainable supply chains, industry standardization, and inclusive solutions. 

    Harish Ahuja, Managing Director and Chairperson of Shahi Exports, said,

    “As we enter our 50th year, we’re excited about what lies ahead. Our roadmap focuses on diversifying our product portfolio, prioritizing sustainability, and investing in our people. We look toward a more circular future as we remain steadfast in our role as catalysts for change.”

    Click to read our report and get deeper insights into our progress and projects in FY 2023-24