The Fox & Lillie Rural India wool study tour group.

INDIA’S potential as a growing market for Australian wool was highlighted to a recent industry study group tour organised by broker-exporter Fox & Lillie.

Fox & Lillie believes raw wool still offers the largest international trade opportunity in India for Australia.

Fox & Lillie general manager-export David Martin said India has the potential to become a bigger market for Australian greasy wool.

Since the Australia-India Economic Cooperation and Trade Agreement there has been an uplift in demand and enquiries are received across all wool types, from fine Responsible Wool Standard-certified Merino to crossbreds and cardings.

“With 1.5 billion people, India does have a sizable domestic market and consumption for wool.

“In most cases, the products into which Australian wool is used, are manufactured in India which, of course, has a huge domestic garment production capability,” Mr Martin said.

“We estimate 30 to 50 percent of the wool that is imported is re-exported either in wool tops, yarns or garments.”

“Like China, the Indian domestic market for wool is very important, as is the Indian export market,” he said.

“The booming economy, growing middle class and advancing manufacturing capabilities make India an important market for Fox and Lillie and Australian wool now and into the future.

“It is still uncertain whether Trump imposing tariffs on China will directly impact Australian wool trade to either China or India,” he said.

Although India is the fastest growing major economy, China is currently importing 86 percent of Australia’s wool and Mr Martin thinks it is impossible for India to overtake China as Australia’s top wool export market in the near future.

“However, our view is that there is huge potential to grow their consumption of Australian wool from the current 5pc.

“This would require investment in all stages of the wool manufacturing pipeline.”

Fox & Lillie’s Alister Carr, left, and Jeff Angel outside the Taj Mahal.

The tour group was led by Alister Carr from Fox & Lillie Rural Bendigo and Jeff Angel from Fox & Lillie Rural Wagga Wagga. The 38-person group consisted predominantly of Fox & Lillie wool growers from Victoria and New South Wales.

Fox & Lillie said the tour’s purpose was educational, and growers enjoyed a unique opportunity to visit a variety of wool processing and garment production facilities, as well as experience some amazing sights, scenery, and cuisines, gaining valuable insight into Australia’s second biggest wool customer.

Fox & Lillie has a long-standing trading relationship with India. Managing director Jonathan Lillie recalls his father started trading with India in the 1960s. Since then, India has grown to become Fox & Lillie’s second largest export customer.

“India has a large sheep population and wool is one of the oldest industries in India.

“There is no doubt that the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA) has helped sales, but a lot of our business is also based on tradition and connection,” Mr Lillie said.

“Our customers respect Fox & Lillie’s heritage and the long-lasting relationships that we nurture.”

James Lillie, managing director of Fox & Lillie’s wool trading, export and early-stage processing business agrees.

“I recently visited India in November 2024 with some our trading team, Peter Maher and Andrew Worthington, to visit our customers.

“Our sales with India dropped considerably during COVID, but they are still a very important trading partner for Australia and for Fox & Lillie.”

Workers in the Raymond factory in Vapi, India.

The wool study tour visited Raymond Group, one of the world’s largest vertically and horizontally integrated manufacturers of worsted suiting fabric, and a long-standing Fox & Lillie customer and strong supporter of Australian wool. The facility processes predominantly raw Australian Merino wool and has a dispatch capacity is 1,500,000 metres per day.

Mr Carr said the Raymond factory in Vapi, 90 kilometres from India’s largest city Mumbai, was an eye-opening experience for everyone with the sheer scale and level of investment, their advanced manufacturing capability and the potential.

“We then visited a Raymond garment store in Mumbai, and this highlighted to growers how and where some of their wool ends up.”

There were also visits to Sharman Shawls in Ludhiana in the Punjab district that demonstrated that India is also using sustainable RWS wool for making luxury products, and the Wool Research Agency in Mumbai, connected to the Ministry of Textiles, which highlighted the level of R&D and investment in India’s wool industry.

The tour was registered as a trade mission by Global Victoria and ended with presentations and a networking function held at the Australian High Commission in Delhi, supported by state and federal government agencies with representatives from Global Victoria, the Department of Foreign Affairs and Trade, Australian Wool Innovation, the Department of Agriculture, Fisheries and Forestry, and Austrade, as well as India’s Wool & Woollens Export Promotion Council, Wool Research Association and other local Indian industry figures and customers of Australian wool.

During the visit, Mr Carr got the impression from several customers that, unlike Europe and the USA, consumers who purchase wool garments in the Indian domestic market do not care as much about the traceability or environmental credentials of wool.

Maldon wool grower Rebecca Hamilton said the tour highlighted the opportunities in India for Australian wool. India would be requiring more Australian wool, but there needed to be more investment in the domestic industry.

“There is so much potential, but what was really exciting was the aspiration of the Indian people for a higher standard of living.”

This would mean India’s consumers would be demanding more Australian wool products.

“Because they see Australia wool as the premium wool fibre.

“There is just so much work that we could be doing to invest in that country and gain more opportunity.”