The case describes the current state of the Indian textile (inclusive of apparel) value chain from a circular economy perspective. Looking through the lens of a small startup named Saahas Zero Waste (SZW), the case explores different waste streams in India, the current waste treatment activities, and the challenges in adding waste back into the value chain. Globally, textile is one of the most polluting industries; the rise of fast fashion has worsened the situation over the years. The complexity of the reverse supply chain, quality concerns in recycled materials, and lack of traceability and accountability for different types of waste make it challenging to ensure a closed-loop supply chain. SZW mostly looked at post-consumer textile waste and focused on ensuring both environmental sustainability by diverting waste from landfills and social sustainability by providing training and livelihood for women self-help groups (SHGs). Traditionally, brands were not even ready to take responsibility for their pre-consumer waste, let alone post-consumer waste. The scenario had started changing, thanks to the regulatory landscape in western countries. India being an important sourcing hub for global textile brands, many domestic garment manufacturers started investing in recycled yarn production. While continuing its operation in post-consumer waste, SZW was also eager to partner with brands to complete the cycle by facilitating responsible treatment of both pre-and post-consumer waste and seamlessly reintegrating it back into the value chain. Over the years, the volume of collected waste increased, and SZW started facing multi-faced challenges. Their in-house thrift shop was not ready to handle a higher volume of good quality reusable clothes and upcycled products; it needed proper marketing channels and selling platforms. On the flip side, the volume of recyclable waste was not high enough to achieve economies of scale and be cost-effective.

The case describes the disruption caused by the shortage of chips and sensors in the automobile sector. Although semiconductors used in the automobile sector are essentially low value and cost only a few dollars, they are technologically intensive in terms of both design and manufacturing. Moreover, only a few players in the manufacturing sector have the capability to produce chips, creating an asymmetry in the power equation. Interestingly, the semiconductor value chain is adapting to new geopolitical tensions, and the chipmaking landscape may undergo a significant change in the next 10-15 years. In this context, the case discusses the structure of the semiconductor industry as a whole and its characterization within the automobile sector. It also describes the current sourcing model of semiconductors used by automakers. The main objective is to help students better understand the complex and evolving supply chain structure and its implications for automobile companies worldwide. The case concludes with specific questions about how automakers should restructure their semiconductor supply chains and address future disruptions.