We Transform Factory with Digital Systems, Solar Panels And Streamlined Processes: Abhishek Yugal, Groyyo Consulting

Abhishek Yugal, the managing partner of Groyyo Consulting, has 24 years of expertise in both manufacturing and consulting, and he holds a postgraduate in Garment Manufacturing technology. Having grown up in a small town, he had a solid background in manufacturing operations at the start of his career, which helped him succeed in the textile and clothing sector.

He spent the first 16 years of his career working for well-known factories in Bangladesh, Vietnam and India. He had a laser-like focus on operational excellence despite adjusting to new tools and technology over his time in manufacturing, moving from manual time studies to sophisticated digital techniques. He moved into consulting in search of fresh challenges, achieving a lifelong dream of working on a subject he had loved since his college days.

Abhishek joined Technopak’s apparel consulting division, where he contributed for nearly six years, gaining valuable experience in strategic advisory roles. This period also marked the beginning of his entrepreneurial journey. Through a mutual connection, he partnered with Pratik Tiwari and Subin Mitra to establish Groyyo Consulting, combining their industry expertise with a shared vision for creating impactful solutions.

In an interview with ResponsibleUs, Yugal spoke about how the sector has evolved over the years and shared his insights on its future trajectory.

Excerpts: 

Can you share more about your professional journey, particularly how your experience in manufacturing led you to transition into consulting and eventually start Groyyo Consulting?
Initially, the idea for Groyyo Consulting was to work with factories on a subscription model. Pratik was already managing a couple of factories, and the plan was to provide consulting services to these factories for a nominal fee, focusing on continuous monthly improvements. While this model seemed promising, I wanted to go beyond just working with a fixed set of factories.

My vision was to expand Groyyo Consulting’s scope and create a broader impact. That’s how I joined the journey, and we began shaping Groyyo Consulting into what it is today.

And then we agreed to officially begin operations in late 2022. That’s when we started laying the foundation for Groyyo Consulting, deciding on the areas we wanted to focus on, the scope of our work, and the verticals we could initially explore. To start with, we planned to work exclusively with factories.

We began by working with small factories in the Delhi-NCR region. Soon after, we expanded our operations to Bangladesh, where we hired a local consulting team. In Bangladesh, we primarily worked with smaller to mid-sized factories, as the concept of micro-factories is not common there. These initial projects helped us establish a foothold in the region.

Can you share more about the early projects Groyyo Consulting took on, such as the jewelry manufacturing factory in Surat and the home furnishings factory in Bangalore, and how these projects helped establish the company’s reputation in the industry?
At the same time, we began seeking opportunities beyond our partner factories. One of our earliest external projects was with a jewelry manufacturing factory in Surat. They were planning to establish a garment factory near Nagpur under a government scheme. Unfortunately, that project didn’t materialize at the time. However, we are now collaborating with the same client on a different project, and the progress is promising.

Another early project involved a small home furnishings factory in Bangalore. The owner, a woman we connected with through a contact, managed a small operation and outsourced a significant portion of her production. She aimed to improve her processes by 15–20 per cent to bring more manufacturing in-house.

Upon assessing her factory, we identified substantial potential for improvement. While we typically commit to an 18–20 per cent enhancement, we don’t hold back when we see greater possibilities. In this case, we achieved an impressive 57–60 per cent improvement in efficiency. Her factory's output increased from 28,000 pieces per month to around 49,000 pieces per month, doubling production capacity and achieving a 60 per cent efficiency boost. Such results are benchmarked against garment value, capacity utilization, and international standards.

Internationally, we’ve worked with an organization who has presence in over 40 countries, handling projects funded by European governments. While many of these projects are based in Bangladesh, they also focus on skill development and government-related initiatives.

One notable project involved a new apparel and textiles initiative. The client reached out to us because of our prior experience with similar projects. Although the project required applicants to have at least three years of organizational experience, they made an exception for us, reducing the requirement to two years. Even then, our firm was just shy of the two-year milestone. They waited for us to qualify and subsequently signed the agreement. This collaboration opened doors to work with major factories like Tarasima Apparels Limited, Teams Group, Mohammedi Group, and others on diverse projects involving jackets, sweaters, knitted outerwear, woven and more.

In India, we partnered with one of the top five in the industry. Unfortunately, they faced significant losses during the COVID-19 pandemic and had to slow down operations. When they restarted, they approached us to help make their machine-intensive factory profitable again.

We also undertook smaller projects across India, including work with the Indian government’s ordnance factories. These factories, which manufacture items such as army uniforms, tents, and shoes, were decentralized three to four years ago and are now Public Sector Undertakings (PSUs). Due to their PSU status, they typically cannot hire private consultants directly, adding unique challenges to these collaborations.

Can you tell us more about your experience working with government projects, especially the RFP process, and how it led to Groyyo Consulting's involvement in improving the performance of Indian government factories and expanding into retail strategies?
You know, in government projects, they have to go through an RFP (Request for Proposal) process. They were looking for someone to improve their factories' performance, modernize operations, and enhance processes.

They issued the RFP, and many companies applied. Eventually, they onboarded five consultants since they couldn’t rely on just one. Among the five, we were the first to start working on the project. Currently, we are collaborating with Indian government factories, focusing on their retail strategy.. It’s a small project, but we see potential for it to grow significantly.

Additionally, we’ve recently started working in the agro processing sector. Our Indian team is well-organized, and we have a robust pipeline of projects. We’re working on converting those opportunities into active engagements.

We’ve also begun targeting opportunities in Vietnam. We have visited locations and factories there, and are now in discussions with several stakeholders. We aim to establish our foothold in Vietnam in 2025.

This journey has been incredible so far. I started as a one-person team, and now we have a team of around 25 people working from our Gurgaon office. This growth has happened in just two years and three months.

Having witnessed the evolution of the manufacturing industry over the past 24 years, what significant changes have you observed, particularly in terms of automation, process optimization, and the shift in attitudes towards labor? How has this transformation impacted the overall efficiency and working conditions in factories?
Back then, the industry was not very organized. When we started, there was a quota system (Multi Fiber Agreement or MFA) in place. Quotas were imposed by US, EU and Canada, and manufacturers would purchase raw materials accordingly and ship products based on those quotas. The scenario was completely different. Even if you weren’t highly competitive, you could still secure business because of the quota system.

In India, factories in the southern region were far more professional compared to those in the north. Southern factories had established processes, and their workers typically avoided excessive overtime. In contrast, northern factories relied heavily on overtime and lacked basic systems and processes. In the south, workers were salaried, while in the north, the payment structure often revolved around piece rates.

Automation was almost non-existent at that time, and compliance standards were not a priority. However, over time, customers began implementing standardized systems, and people became more aware of compliance requirements. Slowly, factories started adopting compliance measures.

Initially, everything was done manually—plans were made on paper or in basic Excel sheets. But now, factories have adopted automation and advanced software for various operations. For example, factories in the garment industry now use scientific system to derive Standard Allowed Minutes (SAMs) for tasks. They use technology for planning manufacturing capacities, tracking production timelines, and following up on time and action schedules.

Today, many factories optimize their processes using advanced tools. Ten years ago, process optimisation relied heavily on manual methods and manufacturing science. Now, with the integration of technology, operations have become far more streamlined and efficient.

Back then, the industry was very different. Typically, the only way to handle workers was through intimidation. If production was lagging, supervisors would shout, abuse, or, in extreme cases, lock workers inside the factory. Thankfully, those practices have now disappeared.

When we entered the industry, educated individuals often avoided the manufacturing sector. In our batch from NIFT, almost 50-60 per cent preferred corporate roles to avoid working directly with laborers. However, as time passed, educated professionals started joining the manufacturing sector, and this brought about significant changes. We introduced many improvements in manufacturing, such as better processes, layouts, and systems, which greatly enhanced efficiency and working conditions.

Now, drawing from your extensive experience, I wanted to discuss pricing strategies. A few years ago, premium shirts were priced around Rs 3,000– Rs 4,000, but now they are priced at Rs 7,000– Rs 8,000. What has changed in the last four to five years to cause this price increase?
The answer lies in several factors. First, the product itself. Brands like LP and ABFRL (Aditya Birla Fashion and Retail Limited) offer multiple sub-brands, such as Peter England and Louis Philippe, which cater to different segments. Premium brands like LP use superior fabrics, high-quality stitching, and excellent packaging and presentation, all of which contribute to the higher price.

Additionally, the cost of raw materials has risen significantly. Cotton prices, for instance, have increased, and the overall cost of manufacturing has also gone up. About five to six years ago, minimum wages in key manufacturing hubs like NCR, Ludhiana, and parts of South India were below Rs 10,000. Now, they have risen to Rs 17,000– Rs 18,000.

Compliance costs have also increased as companies are now more conscious of adhering to regulations. These factors collectively drive up prices. It’s not just about margins; brands typically don’t keep more than a 60 per cent Gross margin. For example, if a product is priced at ?1,000, the company likely purchases it for around Rs 400, with the remaining Rs 600 covering retail, marketing, and other operational costs.

So, the rise in prices is primarily due to increased costs, not just higher profit margins.

Can you explain your ESG services and how you approach this space, especially since government spending is focusing more on ESG? We’ve faced challenges establishing an ESG and WASH division due to difficulties in retaining specialists. What advice would you offer to overcome these challenges?
Currently, our focus is on medium, small, and micro factories, particularly in Bangladesh. These factories often lack the manpower and processes required to manage their ESG services, which have become a critical component of compliance for both factories and their customers.

Our approach involves defining an ESG framework tailored to their needs. We calculate their baseline ESG score to assess their current standing and provide guidance on how to improve it. At present, our services are concentrated on micro and small factories in Bangladesh. Within a short period of three to four months, we help these factories improve their processes and systems, achieving at least a 20 per cent enhancement in their ESG performance.

We are also prospecting for a significant project involving Tier 2 and Tier 3 factories in Bangladesh. Looking ahead, we aim to hire a dedicated ESG expert to expand our capabilities and offer comprehensive ESG services on a larger scale.

Do you provide your services through an app or traditional methods, and how do you address ESG challenges in manufacturing, while optimising resources, improving efficiency, reducing waste, promoting sustainability, and fostering gender diversity in management roles?
Now, very few factories have implemented automation in this area. Even among the largest factories with the best infrastructure and green certifications, most are still using legacy tools for ESG-related tasks. However, we are working on developing an application to automate these services and plan to offer it for free initially.

This would help us understand how many companies and industries are not yet implementing ESG practices. Manufacturing is a core sector that needs ESG solutions, especially because of the fast fashion industry. Fast fashion changes every week, and consumption has increased significantly. Too much clothing is being produced, and people are buying more than ever before. That’s why we are focusing on this area.

When it comes to consultancy, what kind of advice do you provide regarding the circular economy in fashion?
For greenfield projects, our consultancy begins with factory planning and design. This involves creating layouts, selecting equipment, and defining processes. We prioritize maximizing natural lighting, using energy-efficient LED lighting, and recommending advanced automated machinery with servo motors to optimize energy consumption.

We also focus on resource optimization, including manpower, machinery, and space. For instance, the industry standard for the manpower-to-machine ratio was around 1:1.7 to 1:1.8 a few years ago. Our goal is to further optimize this ratio for greater efficiency. While factories in southern India have achieved this standard, factories in the Delhi region still operate at a ratio of 1:2 or 1:2.1. When setting up factories, we aim for a ratio closer to 1:1 by training the workforce—even experienced workers—to align with our optimized processes. This reduces the need for extra manpower and improves efficiency from the outset.

For ongoing projects, we assess training needs, provide necessary training, and optimize manpower and processes. By redesigning layouts and refining workflows, we minimize material movement and improve efficiency. For example, a factory producing 1,000 pieces in 10–14 hours can achieve the same output in just 8 hours with better processes.

In India, the average factory efficiency is around 45–50 per cent. When we set up a factory, we target 65–70 per cent efficiency, enabling the same resources to deliver significantly higher output. We also optimize material usage, particularly in cutting processes. While many factories use advanced CAD systems, they often fail to fully optimize fabric usage, which constitutes 55–60 per cent of production costs.

We introduce improved cutting room processes, material handling, and marker planning to reduce waste. Establishing checkpoints and providing continuous training further minimize rework and rejection rates. As rework decreases, production efficiency improves, and rejection rates drop.

Factories often overcut by 4–5 pieces to meet customer requirements, leading to unnecessary waste. We help reduce this waste to just 0.5–0.75 per cent, or a maximum of 1 per cent. For instance, if a customer orders 100 pieces, the factory produces 101 instead of 104–105, optimizing production and reducing wastage.

Additionally, we train workers in green skills, such as conserving water and electricity. For example, workers are taught to switch off machines and lights when not in use and to place paper under sewing machines overnight to detect and address oil leaks.

We also emphasize women's participation in management roles through extensive Job-Centered Instruction (JCI) training. When women take on roles such as supervisors or line signers, we observe significant improvements in factory discipline and overall performance.

Can we explore innovative energy solutions? One person developed a meter that detects and switches off unused machines and lights, while another provides loans for affordable solar rooftop setups. What are your thoughts on such approaches?
A factory we are setting up, which was initially designed for around five hundred sewing machines and currently operates above 100 sewing machines. We are handling the design and implementation, including solar panels that provide electricity and act as a shed for workers. We’ve also optimized processes to reduce waste and increase accountability, such as setting up independent laundry facilities on each floor to ensure precise washing, packing, and delivery.

We are exploring the integration of IoT devices for monitoring and preventive maintenance. While IoT is used in retail to track equipment efficiency, its application in manufacturing faces challenges due to high costs and scalability. To address this, we’re experimenting with smaller blocks of 50–100 machines.

In terms of environmental concerns, waste from overproduction and retail planning remains a significant issue, with one-third of products often ending up in landfills before even being sold. While progress is being made with made-to-measure and mass customization models, scaling these solutions remains a challenge. Innovations like fabric printing based on cutting markers are helping to reduce waste, and industries are working towards better waste management, though it will take time.

Why are people hesitant to invest in recycling due to the lack of immediate returns? How can we overcome this reluctance and encourage more investment in recycling to reduce landfill waste
Recycling in the textile industry is still evolving. While progress has been made with mixed fibers and recycled cotton, the demand remains low due to high recycling costs. However, consumer awareness is growing. Today, consumers are more conscious of the materials in their clothing, considering fabric composition and washing instructions rather than just brand. This shift in behavior is encouraging and will likely drive more demand for sustainable practices over time.

In Bangladesh, significant progress has been made, with over 230 LEED-certified green factories. In contrast, India still faces challenges. There is limited demand for sustainability certifications, and many factories only prioritize eco-friendly measures when required by external audits. For instance, I’ve seen unannounced visits from authorities checking water usage compliance, where factories sometimes take temporary measures to meet the standards.

I believe initiatives like the PM Mitra parks could help improve the situation. These parks aim to centralize infrastructure, offering shared facilities like solar power and waste management systems, making it easier to implement sustainable practices. However, India still lags behind countries like Bangladesh, which has taken the lead in this area.

What are the key steps involved in an effective textile recycling system? What does an efficient recycling process look like, and what steps should we follow if we are involved in textile recycling?
Promoting the use of recycled textiles should begin at the very inception of the design process. Designers play a crucial role in driving sustainability by integrating eco-conscious practices into their creative workflows. While conceptualizing collections or developing tech packs for buyers, it is essential for designers to actively research, source, and present a diverse range of recycled fabrics tailored to meet the buyer’s specific requirements. By offering innovative solutions and showcasing the versatility and quality of recycled materials, designers can influence buyers to adopt sustainable options, ultimately contributing to a more environmentally responsible and circular textile industry.

On the production side, factories need to optimize their processes and resources. For example, I have more customers in Bangladesh working on these kinds of projects than in India. Typically, Indian factories already have a set process and will only make changes if there is a significant customer demand. They don’t understand the kind of changes required, even though they might be making a profit of 7-8 per cent. To improve, they need to work on internal processes and optimize the use of resources, whether it’s manpower, materials, or natural resources.

On the customer side, buyers need to focus on more efficient retail planning.

Please elaborate on the changes the manufacturing unit experienced after your consultancy. Specifically, how did the factory benefit from the panels and other improvements, and how did it impact the number of orders?
We began with a new design, planning everything carefully. If you’d like, I can share videos and photos of the factory. Upon entering, you’ll notice it’s far from a typical factory. Unlike most factories where fabric pieces are scattered and workers hold papers, our factory is paperless. Everything, from input to output on the line, including quality reports, is digital and stored on the system. There’s no paper used on the line.

We also emphasise training. Before placing workers on machines, we train them for a week to ensure they understand our processes, aiming for higher efficiency and quality. We’ve hired trained workers and guided them through the entire process.

In traditional factories, cutting, sewing, and finishing are separate sections. We’ve streamlined the process, though cutting requires specialized equipment, so it remains separate. We’ve assigned packaging to one person because material often gets lost when responsibility changes hands. Even small losses add up.

Our factory is equipped with the best machines and systems, including solar roof panels. We have just started manufacturing and expect a higher efficiency rate. While factories in NCR typically operate at 45-50 per cent efficiency, we anticipate this factory will be at least 15 per cent to 20 per cent more efficient in a short time. We have proof cases of similar setups, though not many cases to share yet.

We did set up a Hosiery factory in Tirupur few years back, where the majority of workers were unskilled from central part of India. We started with setting up a training center for them and After seven months of training and on on job hand holding, they were working at 70+ Efficiencies.

Another example is a factory in Bangalore where we improved efficiency by around 57  per cent. We also worked with Jacket factory, a LEED-certified Platinum factory in Bangladesh, where we improved efficiency and quality by 22 per cent.

We also assisted Everbright Sweaters Limited, a sweater manufacturer based out of Bangladesh, We merged the linking and packing sections and trained workers on quality systems, reducing the rejection rate from 4 per cent to 3 per cent in two to three months.

Recently, at an event in Bangladesh, the factory owner shared their success story. The factory is also LEED-certified, and it was great to see them share their experience on stage.

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