INTERNATIONAL
NATIONAL
The textile industry in the European Union is keen on tapping the strengths of the Indian textile sector and come up with a “Make with India” policy rather than “Make in India”, says The Yarn Bazaar co-founder and CEO Pratik Gadia. “Make in India is great. But it seems to have a slight negative sentiment with the European industry as it feels that India is not opening up its imports. This was the crux of the message we recently got during an Indo-European Union meeting on free trade pact,” he said. Gadia was one of the Indian representatives during deliberations with the European Union on co-operation measures for mutual economic benefits at EU-India Leaders Conference at Brussels European Parliament. There was a separate panel for textiles during the event.
Win-win partnership The EU industry feels that with both knowing their strengths, it would be better to collaborate for a clear win-win partnership, he said. “The EU is not just looking at cross-border collaboration with India or simply looking to increase business between the two. The idea is, together how can we capture larger international textile market share? We are discussing how we can collaborate so that we can get a larger market share of the overall textile industry?” Gadia said. In particular, the EU industry wants India to buy more machineries even as India looks for better access for its textile products in the union. “In India, apart from a couple of companies, there are not many good manufacturing units to make machinery, whether it is spinning or weaving. Most of the machines are imported. The collaboration can probably provide a cost advantage,” Gadia said. Tech transfer? India and EU can opt for technology transfer or collaboration. “We can do a lot of collaboration in design and innovation. Post-pandemic, the global industry has changed. A lot of innovation is happening but India is yet to catch up. Collaboration can help that way,” he said . The collaboration will help the EU and India once a free trade agreement is signed. Currently, Bangladesh enjoys a duty rebate or preferential duty rate as it is considered a least developed country (LDC). “The FTA will put us at par with Bangladesh. Together with this, we can target a much larger global share for our textile,” the Yarn Bazaar CEO and co-founder said. Gadia said when it comes to textiles, the FTA between India and the EU may not be as complicated as say Basmati rice for which India is seeking a geographical indication tag. He said some of the European buyers are still concerned over the quality of Indian products and some of companies here are still casual in meeting delivery schedules. “It is not a cultural issue but a structural one. If we can assure quality and timely supply of products, we can gain,” Gadia said.
Source: The Hindu business line
The Madhya Pradesh government has signed a deal with the Centre to soon form a special purpose vehicle (SPV) for a 1,563-acre mega textile park in Dhar district, a senior industry department official has said. While the state government will have a 51 per cent stake in the SPV, the Centre will hold 49 per cent. The state signed the memorandum of understanding with the Centre on May 21. Currently, basic facilities like electricity, water, and roads are being arranged for the proposed PM Mega Integrated Textile Region and Apparel (MITRA) Park, according to the officials. About 25 industries have already given investment proposals of worth Rs. 7,000 crore. The officials said the project would generate around 200,000 direct and indirect employment. Under this project, mega parks like this will also come up in Tamil Nadu, Gujarat, Uttar Pradesh, Karnataka, Telangana, and Maharashtra. The central government is providing development capital assistance of Rs. 500 crore to greenfield PM MITRA Parks for basic infrastructure, along with an incentive for investors on a first-come-first-serve basis of Rs. 300 crore per park.
Source: Business-Standard
In the past couple of decades, Gautam Singhania, chairman and managing director, Raymond, has been busy getting out of businesses that aren’t a part of his vision for the group. In the past, he has exited businesses like steel, cement and synthetics. The recent sale of the consumer care business to the Godrej group for Rs 2,825 crore in an all-cash deal was part of that journey. “We have always said that if we can monetise some assets at a good price for the FMCG business, it will be a win-win situation for both parties. As a result, today the company is 100% debt-free,” he said, adding that every business can be sold for a price.And the numbers reflect his drive to make the group profitable and, of course, get rid of debt. In FY23, the net debt of the group was at Rs 689 crore, down sharply from Rs 1,088 crore in FY22. At the same time, net profit has also more than doubled from Rs 260 crore to Rs 529 crore. And once the first-quarter results come in, the group would indeed be debt-free.But what led to the exit from the consumer care business? “Covid had hit everybody hard. Besides that, there were management and other issues. And when all the problems come at the same time, you need to focus. We also made mistakes, every company does so. I am not getting into that, but we have to learn from the mistakes,” said Singhania. So at a time when the world was still grappling with the pandemic, a restructuring plan aimed at turning around the group was put in place. Under the plan, there was severe cost-cutting of about Rs 700 crore across the board. In addition, another Rs 400 crore of cost reduction in the long term was envisaged. The focus was on making the businesses efficient and profitable, and then deleveraging the balance sheet. And then, things started falling in place. “The restructuring was a launch pad to do more things. The turnaround has happened, but it doesn’t end here. Now the aircraft has to take off,” he added. Going forward, the group intends to restructure Raymond into three businesses – real estate, lifestyle/textiles and engineering. The recent announcement of the demerger of the lifestyle businesses into Raymond Consumer Care will create a listed entity with a pure-play B2C focus. Singhania said that two years back, his focus was on survival. However, he can focus on growth now. “In the last four years, we have built a solid real estate business, which is doing well for us today. It will continue to do well, as we have a lot of plans in the real estate space,” he added. According to him, every business has got a game plan over the next 3-5 years. Eventually, the target is to show 17-20% Ebitda growth and 15% revenue growth, and there is a strategy for each business to do that. The overall group’s target: Revenues of Rs 10,000 crore in FY24.At the company’s annual general meeting this year, Singhania told shareholders that next year’s meeting would be a “special one” as they would have two separate listed companies – Raymond and Raymond Consumer Care. While Singhania is holding the cards close to his chest, stating business plans are “confidential”, he is also optimistic. “The future looks bright.” The good news: After the restructuring and the monetisation initiatives, it has emerged as a zero-debt group, all geared up for a fresh start.
Source: Financial Express
The Reserve Bank is likely to maintain status-quo on the key interest rates for the third time in a row in its upcoming bi-monthly policy review despite the US Federal Reserve and the European Central Bank hiking benchmark rates, as domestic inflation is within the RBI's comfort zone, say experts. The borrowing cost which started rising in May last year has stabilised with RBI keeping the repo rate unchanged at 6.5 per cent since February when it was raised from 6.25 per cent. In the previous two bi-monthly policy reviews in April and June the benchmark rate was retained.The RBI Governor-headed six-member Monetary Policy Committee (MPC) is scheduled on August 8-10. The policy decision would be announced on August 10 by Governor Shaktikanta Das. "We do expect the RBI to hold on to a status quo position on both rates and stance. The reason is that while inflation is presently running at less than 5 per cent there would be some upside risk to this number in the coming months with prices of vegetables and pulses going up sharply. Therefore, an extended pause is expected," said Madan Sabnavis, Chief Economist, Bank of Baroda.In fact, he added that with the RBI having a forecast of inflation of 5.4 per cent for the third quarter, it looks unlikely that the repo rate or stance may be changed till the beginning of the next calendar year. Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank said: "On the policy stance, since the liquidity conditions have turned favourable post the announcement of the withdrawal of the Rs 2,000 note, we expect the RBI to continue to hold on to the current stance of 'withdrawal of accommodation'".All eyes will be on how domestic inflation plays out and the global cues that are suggesting a greater probability of a peak out of the US Fed's monetary tightening cycle, thus easing, Bhardwaj added. Last week, the US Federal Reserve increased interest rate by 25 basis points to 5.25-5.5 per cent, taking it to a multi-year high.he European Central Bank on Thursday announced a new rate increase of a quarter percentage point, bringing its main rate to 3.75 per cent. The European Central Bank too has increased its main rate by a quarter percentage point.India's retail inflation based on Consumer Price Index (CPI) rose to a three-month high of 4.81 per cent in June, mainly on account of hardening prices of food. The inflation, however, remains within the RBI's comfort level of below 6 per cent. The government has tasked the central bank to ensure retail inflation remains at 4 per cent with a margin of 2 per cent on either side. The central bank mainly factors in the CPI to arrive at its bi-monthly monetary policy decision.Aditi Nayar, Chief Economist, Head Research and Outreach, ICRA said that the surge in vegetable prices is likely to push the CPI or retail inflation above 6 per cent in July 2023. Moreover, the average for this quarter would exceed the latest estimate for the second quarter that the MPC released in June 2023. "As a result, we expect the MPC's commentary to be fairly hawkish, amid a continued pause on the repo rate and stance in the upcoming policy review," she said.On expectations from the upcoming RBI Policy, V Swaminathan, Executive Chairman, Andromeda Sales said the central bank will maintain the status quo and opt for hawkish stance in view of the recent rate hikes announced by the Federal Reserve and European Central Bank. "Secondly, the retail inflation may not ease to the anticipated levels on account widespread rains and disruption in supply chain due flooding in different parts of the country. Taking into account these factors the best possible course for the central bank would be to go in for the status quo for the third time in a row," he added.Lakshmi Iyer, CEO-Investment and Strategy, Kotak Investment Advisors said that the tone and texture taken by the MPC will be more relevant for markets. "But looking at global macro, India's wait for a rate cut may just get longer and an extended period of status quo remains," Iyer said.he last MPC meeting was held during June 6-8. The MPC consists of three external members and three officials of the RBI. The external members on the panel are Shashanka Bhide, Ashima Goyal, and Jayanth R Varma. Besides Governor Das, the other RBI officials in MPC are Rajiv Ranjan (Executive Director) and Michael Debabrata Patra (Deputy Governor).
Source: Business-Standard
As the world wakes up to the unarguable fact of limited resources, attention is turning toward sustainable and responsible use. Leading this dynamism is sustainable investing, which has undergone a significant shift from conventional practices towards aligning with digital trends. In the evolving world of Alternative Investments, digitization stands at the helm of transformational change. Integrating Environmental, Social Responsibility, and Governance (ESG) factors into investment decisions is a rapidly growing trend and the future of alternative investing.
The infusion of the latest technology
In this rapidly evolving landscape, technological solutions can serve as exceptionally effective tools. ESG integration has emerged as a critical strategic lever for the alternative investment sector to gain a competitive advantage. Investment managers are turning to technology to stay ahead in this intricate, game-changing terrain. ESG data is voluminous, multifaceted, and highly complex, and technology plays a pivotal role in decoding it. By leveraging advanced technology, investment managers can now streamline ESG data monitoring, enhance regulatory compliance and boost transparency, thus driving sustainable investing into the digital frontier.
Introduction of cloud-based platforms
Cloud-based platforms also play a significant role in the digitization of ESG investing. The scalability, fault tolerance, and reduced infrastructure costs make cloud-based platforms attractive alternatives to traditional systems. Through real-time data connectivity and robust analytics, these platforms provide investment managers with the tools to promptly evaluate ESG risks and opportunities. These platforms build trust in the ESG integration by facilitating transparent data sharing and real-time communication while concurrently scaling investor engagement. Cloud technology enhances operational efficiencies by enabling mobile and secure access to ESG data. Further, cloud technology enables swift adaptation to the dynamic landscape of ESG investing by affording real-time updates and trends. Swiftly assimilating ESG information, these cloud solutions facilitate educated and informed investment decisions.
Bridging the gap
Transitioning from static to dynamic, technology bridges the gap between sustainable investing goals and real-world outcomes. Technology solutions with powerful analytics capabilities can handle numerous ESG variables and massive data volumes, allowing investment managers to simulate future scenarios. This can be instrumental in enabling alternative investment managers to anticipate and plan for future shifts in ESG-related risks and opportunities.
Data visualization tools
Amid these considerable advancements, it’s also worth noting the significant role of data visualization in the digital transformation of sustainable investing. Visualization tools assist in distilling large volumes of complex ESG data into easily understandable formats, enabling informed decision-making. It empowers investors and fund managers by providing clear, concise, and actionable insights that can directly influence the deployment of sustainable investments.
Conclusion
As ESG integration and digitization fusion continue, technological advancements will undoubtedly remain at the forefront. They will persist in driving sustainability standards, influencing decision-making, and shaping the future of alternative investments to make it more sustainable, efficient, and transparent. As technological innovation accelerates, so will its transformative impact on sustainable investing growth. The integration of ESG principles into investing, powered by technology, has the potential to redefine the financial landscape. Whether using the latest innovations to sift through heaps of data or leveraging technology for transparency and seamless accessibility, technology enables a new era in sustainable investing. As we continue on this trailblazing path, aligning sustainability with digital strategies will only become more essential and powerful.
Source: Financial Express
The Indian textile industry demonstrates remarkable prowess throughout its complete value chain, covering a wide range of segments including natural and synthetic fibers, apparel and home furnishings. In fact, it is the second largest employer after agriculture and at 6 percent, contributes significantly to the nation's GDP. With aspirations of becoming a global powerhouse, India has set an ambitious goal of achieving USD 100 billion in textile exports by 2030. However, achieving such a formidable target will hinge on the industry overcoming various challenges, such as quality, innovation and design, as well as policies, that will help boost the sector and help it reach the benchmarks it needs for global success. Hence, it is crucial that we explore strategies and initiatives which can drive textile exports and fortify India's position as a reliable and competitive global textiles player. The Need for Emphasis on Rigorous Testing In the Indian textile industry, there is a significant challenge when it comes to the lack of emphasis on quality testing across the value chain. This issue is a key roadblock to India’s search for global textile supremacy, as international buying houses have very exacting standards for the products they source, and poor quality is a major cause for shipment rejection. However, this critical step is often neglected, leading to the production of material that may not meet the required benchmarks. Producing and delivering defective fabrics can have severe repercussions for textile manufacturers. Customer rejections and returns due to quality issues can lead to a loss of revenue, damage to the brand's reputation and, consequently, a decline in customer loyalty and trust. Additionally, the costs associated with rectifying or replacing defective fabrics, as well as the potential legal liabilities, can further strain the financial resources of the company. There are also serious environmental concerns to keep in mind, given that a lot of resources already went into the manufacture, which are then wasted, and that rejected materials often end up in landfills. To mitigate these issues, textile manufacturers must prioritise regular testing at different stages of production. This includes testing raw materials, spinning and weaving tests, as well as conducting intermediate and final product inspections. There are a number of different tests that help in quality assessment, such as count testing which analyses the coarseness or fineness of the yarn, twist testing which provides indicators for the yarn’s strength, appearance and final fabric performance, tensile strength testing which assesses the maximum load the yarn can take before breaking, hairiness testing, which quantifies how rough or smooth the texture of the yarn is, and evenness testing which evaluates the imperfections in the yarn, and therefore its consistency. A Shift in Perspective: The Indian textile sector is ripe for a fundamental shift in perspective, which will involve all stakeholders looking at the industry as service-centric rather than simply manufacturing-oriented, and prioritising customer expectations for quality and timely delivery. This will help enhance their reputation and improve business relationships. Policy Support: Since cost is a major consideration for the sector, all stakeholders need to collaborate on the creation of robust policies and international trade agreements that create opportunities for Indian manufacturers to cater to buyers across the world. Collaboration and International Partnerships: Strategic partnerships with international players offer a valuable opportunity for accelerating quality improvements in Indian textiles. By leveraging global expertise and advanced technologies through collaborations, manufacturers can drive growth and innovation. Strengthening the Supply Chain and Infrastructure: Efficient supply chain management is crucial for delivering high-quality textiles. This is why India should be laser-focused on strengthening its infrastructure, optimising logistics, and implementing robust tracking systems so that it can improve quality control and customer satisfaction. Innovation in Design and Branding: To remain competitive, Indian manufacturers must prioritise innovation in design. Investing in research and development, fostering collaborations, and implementing effective branding initiatives will create distinct identities and elevate their products in the global market. Sustainability and Adaptability: Sustainability is no longer a choice but a necessity in the textile industry. By aligning with sustainability standards, incorporating eco-friendly practices, and meeting evolving market demands for ethical and socially responsible products, Indian manufacturers can secure long-term success and contribute to a better future. In conclusion, driving textile exports and bolstering the industry requires a multifaceted approach that can help enhance the quality and costeffectiveness of its products and eventually help India realise its ambitious goals of leadership in the textile industry.
Source: The retail.economictimes.indiatimes.com
Retaliation against the European Union on its string of laws like carbon tax would be counterproductive and end up raising costs for local manufacturers but the grouping’s five regulations on climate change and trade could in some ways result in increasing the attractiveness of India against its competitors, a senior official has said. The carbon tax or Carbon Border Adjustment Mechanism that seeks to subject to additional tariffs goods with higher than permissible carbon emission at production stage, whether imported or produced within the EU, cannot be replicated by India because even for local markets the producers will have to make products confirming to EU standards The CBAM covers iron and steel, cement, aluminium, fertilisers, and electricity to start with. While the transition period for the new tax will start from October 1 of this year, actual collection will begin from January 2026 The EU Deforestation Regulation, one of the five recent measures announced by the EU to meet its net zero carbon emission goal by 2050, could aid India’s agriculture exports, the official said. Under this regulation exporters to the EU must ensure that farm products have not been grown on land which has been deforested after December 2020. The new rules will apply to large firms from December 2024 and small firms from June 2025. he products covered under the regulations include cattle, buffalo, meat of bovine animal, oil cake, soya beans, palm oil, cocoa bean, chocolate, coffee, leather, paper, wood and its articles. India can demonstrate to the EU that our forest cover has increased and forest land is not diverted for agriculture unlike in countries like Brazil which is one of the big exporters of these commodities and have some kind of an understanding with the 27-nation grouping, the official said. In coffee we have technologies to demonstrate entire value chains to buyers “Standards are high there, there is no advantage of fighting on them so we have to conform to those standards. We can discuss bilaterally with the EU on relaxations in conditions on certification of carbon emissions and other procedural issues,” the official said. The EU also wants to reduce its dependence on China and realignment is going on so we have to see how best we can participate in that, he said. “One thing is clear that this is a new way of doing business and we have to adjust to it. You cannot just sit out and fight. Sitting outside will not help,” the official said. “We have limited options to counter this (the moves by EU) mainly because of two reasons: one is these measures are on a Most Favoured Nation basis and their industry will also face issues in terms of price rise. Cost impact will be there on them also,” he added. As these measures are non-discriminatory they would be difficult to challenge at World Trade Organisation also.
Source: Financial Express
As India is gearing up to celebrate Independence Day (15th August), Surat, India’s leading textile city has received orders to make and supply over one crore tricolours. These flags, are made of polyester satin fabric, and the entire work — from weaving to printing, cutting and stitching will be done in Surat. The trend of making tricolours from polyester satin which looks shiny and has longer durability, was started by the city’s textile industry. Most of the orders are for flags of 20×30 inch size. As per reports, this orders have come from across the country and they are expected to play an important role in creating some vibrations in the textile industry that is passing through a challenging time. Previously as well, textile companies of Surat used to receive such huge orders. Companies like Laxmipati Group as well as various traders hvae huge orders of tricolours from across India. They are being asked to deliver the tricolours by 5th August. Kailash Hakim, president of Federation of Surat Textile Traders’ Association said that such huge orders will boost market sentiments.
Source: Apparel Resources
Sakho Group launched its latest roll-to-roll fabric relaxing and measuring machine called ‘G Relax Pro’ which operates at a maximum speed of 60 meters/min. The machine was launched at the Garment Technology Expo (GTE) which took place from 21st-24th July in Greater Noida. The newly launched machine is designed to save relaxing time and reduce labour costs, while also maximising product quality, and enhancing reporting to streamline processes while ensuring the fabric’s dimensional stability and relaxation before further treatments. The machine allows the fabric to go through an easy relaxation process, where the fabric will stretch, and reshape itself to its natural state, eliminating any residual tension or distortion. The process helps to improve the fabric’s stability, drape, and overall quality by enabling the fabric to retain its intended dimensions and shape. The machine features a full forward and reverse run of fabric with a compact and crease-free rolling on winding tubes allowing the maximum roll diameter to range up to 450 mm. With G Relax Pro, the fabric can be easily unwound off the roll without accelerating any tension and ensures calibrated pressure-adjustable digital output for length measurement. The machine allows multi-stage fabric relaxation like, blower based lazy loop lifting technology, and air floatation technology for higher relaxation.
Source: Apparel Resources
INTERNATIONAL
Bangladesh Bank (BB), the central bank of Bangladesh, has recently issued a directive to the country’s banks, urging them to align the interest rate of pre-shipment loans with the new reference lending rate. Reports underlined this adding this move is part of BB’s initiative to establish a more market-based approach. The primary goal behind this measure is to bolster the resilience of export-oriented companies, safeguarding them against potential shocks arising from the ongoing global economic crisis. By doing so, the central bank aims to support these businesses and foster more efficient credit management within the banking sector. According to the directive, banks are required to add a maximum margin of 2 per cent to the reference lending rate, also known as the SMART (six-month moving average rate of Treasury bill), while determining the interest rate for pre-shipment export credits. Pre-shipment credit refers to the financial assistance provided to exporters for covering expenses related to the purchase, processing, manufacturing, or packing of goods before they are shipped. Back in June, the Bangladesh Bank took a significant step by introducing a market-driven lending rate applicable to both banks and non-banking financial institutions. This new rate replaced the previous lending rate cap of 9 per cent, which had been in force since April 2020. Additionally, the circular outlines penalties for overdue loan installments. If all or partial installments of a loan are classified as overdue, a maximum penalty interest of 1.5 per cent can be imposed on the outstanding balance of a working capital loan or the installments of a demand loan that are behind schedule. This measure is likely aimed at encouraging borrowers to maintain timely repayments and ensure better credit discipline.
Source: Apparel Resources
Global textile solutions provider, Unifi Inc., announced the latest discovery of peer-reviewed Life Cycle Analysis (LCA) stating that in comparison with virgin polyester, its in-house brand REPREVE recycled polyester lowers climate change. The result of LCA for REPREVE recycled polyester narrowed down to clearly visible reduction in greenhouse emission, fossil fuels depletion, and water scarcity. The brand REPREVE makes recycled polyester with post-consumer plastic bottles and pre-consumer waste materials with the aim to address the growing concern about plastic waste. It consists of FiberPrint, tracer technology, and is certified by U-Trust which is suitable for multiple use including apparel, automotive interiors, and home furnishings. Meredith Boyd, Senior Vice President of Sustainability, Technology & Innovation said, “We believe in transparency and traceability, so it’s important for us to share our peer-reviewed LCA data to show the significant reductions that REPREVE polyester offers to critical environmental factors that otherwise accelerate climate change or deplete other limited resources.”
Source: Apparel Resources
July is set to be the hottest month on record, and over half of the US has been under excessive heat warnings and advisories this week. And with the climate crisis set to turn the heat up even further in the coming years, the need to keep people cool has never been more pressing, doubly so for doing it without emitting more greenhouse gases. Heat pumps have gotten a lot of the limelight, but a number of emerging climate tech startups are developing the next wave of technology that will keep us cool without frying the planet or overtaxing the grid. It’s a trifold challenge and one that industry experts agree cannot be fixed with a one-size-fits-all solution. Air conditioners use about 6 per centof the US’s electricity supply, and the refrigerants required to operate ACs have a global warming potential that is 2,000 times as potent as carbon dioxide. Heat pumps — which offer more efficient, lower-carbon cooling — have been touted as a solution, gaining steam thanks to falling costs and tax credits in the Inflation Reduction Act. But the current versions on the market aren’t enough on their own to keep the grid stable, emissions down and people cool. Startups are already building the next generation of cooling technology that can help fill in the gaps. One key way advanced cooling systems are trying to offer an upgrade over today’s heat pumps and air conditioners is by experimenting with ways to make homes’ cooling needs more responsive to power demand. With an increasingly rickety and strained grid, that’s taking on added importance. Carmichael Roberts, business lead of Breakthrough Energy Ventures’s (BEV) investment committee, pointed to BEV-backed Blue Frontier as an example of a startup working on doing that. Traditional air conditioners transfer heat from inside to outside through an evaporator that cools the home and a condenser that releases collected heat outside. A compressor moves refrigerant, a fluid that transfers the heat, between the evaporator and condenser. The Florida-based startup is designing a smart cooling and energy storage system that, in addition to other features, replaces refrigerant with a salt solution, or liquid desiccant. That liquid desiccant is kept in an energy storage tank that is currently designed to provide about four hours of cooling, allowing the roof-mounted unit to run even if there’s a blackout. “The utility can control your electricity consumption such that it is best for them, and the building user controls the thermostat, and they don’t have to match each other,” said chief executive officer and co-founder Daniel Betts. Mixing humidity with heat — a problem for many places in the eastern half of the country — adds to the challenges of staying cool. As air temperatures increase, the amount of water the air can hold also increases, making it harder for bodies to cool themselves. Conventional air conditioners are inefficient when it comes to humidity control, Betts said. Blue Frontier’s liquid desiccant technology can not MIMiC Systems, another advanced HVAC startup, has designed a solidstate heating and cooling system that uses solid material to transfer thermal energy, thereby requiring no moving parts like the compressors found in traditional ACs. The setup is fully modular, which means it can be more responsive to the differing temperature needs of individuals in a space. It also cuts the need for refrigerants completely, according to chief executive officer and co-founder Berardo Matalucci. Flexibility is another part of the energy efficiency puzzle. The majority of American homes have ducted central air conditioning systems that heat and cool homes uniformly throughout the space, regardless of where people are and differences in room temperatures. Another startup, Flair, sells a smart vent that can redirect air from one part of the house to another, effectively avoiding wasted energy and overcooling one room in order to get another to a tolerable temperature. Customers have told the company they’ve saved as much as 30 per centof their electricity bills by installing the system, according to chief executive officer and co-founder Daniel Myers. The company’s devices are installed in 30,000 homes. Myers called fully variable HVAC systems the company’s “North star,” both in terms of providing comfort and being responsive to the needs of the grid. They may be increasingly important as the grid strains under increasingly hot conditions. “At the end of the day, an average heat pump can use a substantial amount less electricity during periods of peak demand than central AC,” Azolla Ventures general partner Amy Duffuor, said. “Smart heat pumps are a really great way to start thinking about boosting the resilience of the electric grid.” Azolla-backed window heat pump startup Gradient is among the companies trying to do that. Its units are internet-connected so that they can participate in a demand response program. These voluntary energy conservation programs are already being used in states like California and Texas. During critical times when extreme heat could spike energy demand, these programs help ease the load on the grid. All heat pump systems should be able to communicate with each other and other household appliances and understand when peak demand levels are so that they can pre-cool homes during times of surplus solar energy and smooth out peaks, said Gradient chief executive officer. “Buildings don’t have feelings, but people do,” he added, and smart HVAC design needs to focus on comfort as well. Keeping people cool in extreme heat is not just about lowering air temperature but taking into account all the aspects of human comfort, which include radiant temperature, air movement and humidity, he said. While this summer’s heat is intense, climate change will lead to even more extremes in the coming decades. Today’s heat pumps could solve some challenges to stay cool in tomorrow’s climate, but the next generation of technologies will be needed to ensure comfort while not making the climate crisis worse.
Source: The energy.economictimes.indiatimes.com
