Laundry giants aim for rapid expansion

Gaurav Nigam

The Indian laundry and dry-cleaning industry have been growing rapidly in recent years, fueled by a combination of factors such as urbanization, rising disposable income, and changing lifestyles. This growth has been particularly significant in Tier 2 and Tier 3 cities in India, where the market is estimated to be worth over INR 7,000 crores and is expected to grow at a CAGR of 7.5% over the next five years. With the expansion of organised players like Tumbledry, U Clean, Dhobilite, the laundry house, fabricspa etc. The industry is expected to continue on its growth trajectory.
The largest laundry service provider in India – Tumbledry with over 500 stores in 180+ cities, has announced plans to open 300 stores in tier 2 and 3 cities in 2023. The company aims to strengthen its presence in India and target the masses by offering affordable laundry services. The company is confident about reaching revenue of INR 100 crores in FY 23-24. To support its growth plans, Tumbledry is planning to invest heavily in hiring and training manpower. Additionally, Tumbledry launched Tumbledry Laundry Manpower Academy to hire, train, and employ manpower in the laundry industry.

Factors Driving Growth
There are several factors driving the growth of the Indian laundry and dry-cleaning industry. Firstly, the increasing urbanization and changing lifestyles of people have led to a rise in the demand for laundry and dry-cleaning services. With more people living in cities and working longer hours, they have less time to do their laundry and are willing to pay for these services.
The rise of organized players in the industry has led to increased competition, which has resulted in better quality services and more affordable prices for consumers. This has further fueled the growth of the industry.
The increasing awareness about hygiene and cleanliness has led to more people opting for professional laundry and dry-cleaning services. This is particularly true in the case of hotels, hospitals, and other commercial establishments, where hygiene and cleanliness are of utmost importance.

Challenges
Despite the growth prospects, the laundry and dry-cleaning industry in India faces several challenges. Firstly, the industry is highly fragmented, with a large number of small players operating in the market. This leads to a lack of standardization and quality control, which can be a major concern for consumers.
Secondly, the industry is highly labor-intensive, with a large number of unskilled workers employed in the sector. This makes it difficult for laundry and dry-cleaning chains to maintain quality and consistency in their services.
The high cost of real estate in urban areas makes it difficult for laundry and dry-cleaning chains to expand their operations, particularly in Tier 1 cities.

Innovations
To stay ahead of the competition, laundry and dry-cleaning chains have been adopting several innovative technologies and practices. One such innovation is the use of mobile apps to facilitate easy booking and payment for services. This has made it more convenient for consumers to avail of these services.
Another innovation is the use of advanced laundry machines that can wash and dry clothes more efficiently, reducing the turnaround time for services. Additionally, some laundry and dry-cleaning chains have started using eco-friendly detergents and cleaning products, which are more sustainable and environment-friendly.

Pandemic impact
The COVID-19 pandemic had a significant impact on the laundry and dry-cleaning industry in India. With the lockdowns and restrictions imposed by the government, many laundry and dry-cleaning chains were forced to shut down their operations temporarily. This led to a loss of revenue for these chains.
However, with the easing of restrictions and the gradual opening up of the economy, the industry has started to recover. Additionally, with the increased focus on hygiene and cleanliness due to the pandemic, the demand for professional laundry and dry-cleaning services is expected to increase in the future.

Future outlook
The future outlook for the laundry and dry-cleaning industry in India is positive, with the market expected to continue its growth trajectory over the next five years. However, the industry will need to overcome challenges such as intense competition and price sensitivity to maintain its momentum. Chains that can innovate and adapt to changing consumer preferences and behaviors will be well-positioned to succeed in this dynamic market.

Gaurav Nigam is Founder & Director, Tumbledry