Good Prospects For Value Addition In Domestic Wool

India's low cost processing capabilities are being seen as an asset by New Zealand, which plans large-scale value addition of its wool in the sub-continent for buy-back arrangement and exports to the global market.

"It (India's low cost processing) offers great potential for value-addition to New Zealand wool, which can be exported back or sold in the international market," a Wool of New Zealand (WNZ) official said. Already, WNZ had identified 12 brand partners of leading mills to do value-addition to its wool in India and they were working on the project, WNZ official R S Roy said.

Under the brand partnership arrangement, WNZ, which has broken off from the international wool secretariat to promote its 'Fernmark' wool, would assist to establish direct link from grower to processor to manufacturer and finally to the retailer.

 

Such a link would ensure price stability, secured supply lines, effective feedback, improved quality and better profitability for all, he said.

WNZ was keen on introducing new and innovative products and would like its brand partners to venture into areas where business would grow.

WNZ had formulated a 'farm to retail' concept to promote its wool which was a unique system wherein a pool of wool growers are directly linked to processors, spinners and product manufacturers for consistent supply of quality wool, Roy said.

"This eliminates involvement of intermediaries besides ensuring farm-specific and timely deliveries," he said. The entire process was controlled and checked at every stage, supported by product development and marketing assistance.

WNZ's initial aim was to establish Fernmark as a high quality, up-market brand in the Indian apparel market and subsequently look at exports, provided the products met the organisation's stringent quality standards.

"Our strategy is to work on one-to-one basis with selective brand partners who have a high brand profile of their own," Roy said.

On its part, WNZ would do research and offer developed innovative products free of cost to the brand partners.

WNZ was especially looking into the apparel sector to promote Fernmark wool as most of New Zealand wool were used in interior textiles only, Roy said, adding that New Zealand made up 68 per cent of India's total wool exports.