Led by founding partner IDH, the four-year programme will initially focus on cluster locations in the Indian cities of Ludhiana and Indore, with plans to expand into two additional clusters.
Cluster Collective aims to increase the capacity of India’s textile recycling sector by advancing sorting and recycling technologies, building shared infrastructure for waste collection, and integrating entrepreneurial supply chain stakeholders.
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The programme will also address labour formalisation and policy alignment within the sector.
Organisers say that by bringing together key actors around industrial hubs, clusters can access shared infrastructure, attract joint investments, and expand market opportunities.
Re-START Alliance stated that the initiative will connect key stakeholders at industrial hubs, allowing clusters to access “shared infrastructure, investment opportunities and scale”.
In addition, Cluster Collective will include three main elements. These include a collaborative model to create lasting value for the supply chain, a technical assistance fund managed by Navaka Social Business Fund that will invest €13m ($17m) in infrastructure and traceability, and early market integration with brands and recyclers through Letters of Interest, co-developed material standards, and offtake agreements.
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By GlobalDataCurrent partners involved in Cluster Collective include Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) under the EU – India Resource Efficiency and Circular Economy Initiative.
IDH country director Jagjeet Singh Kandal said: “Circular textiles have significant economic potential in India. However, one of the biggest challenges to overcome is that India’s textile ecosystem is fragmented, which has led to a lack of coordination and unrealised potential. That’s why we are launching the Cluster Collective programme, which aims to focus on organising the textile waste ecosystem through a cluster-based model, in a way that is socially inclusive and aligned with climate targets.
“Cluster approaches are already proven and widely used in other sectors. By focusing on existing textile hubs that are already processing and producing, this approach will connect aggregators, recyclers and manufacturers in a coordinated and structured manner and in a way that creates long-term value for all stakeholders. As a result, clusters will be able to benefit from shared infrastructure, shared investment opportunities and market linkages to accelerate scale. Moreover, those sourcing in the region will benefit from improved traceability, access to a fully connected supply chain and access to collective demand for recycled textiles.”
The Re-START Alliance was convened by Laudes Foundation with founding partners Canopy, Fashion For Good, and IDH.
Its mission is to create an environment conducive to scaling textile recycling efforts in India. The country is one of the leading contributors to global textile waste with roughly 7.8 million tonnes of textile waste annually.
While its prior activities centred on organising India’s recycling ecosystem and reducing fragmentation, Cluster Collective marks its first flagship project.
The initiative supports Re-START Alliance’s aim of introducing one million tonnes of recycled fibres into textile supply chains over time. The alliance intends to roll out further projects through its founding partners within the next year.
