An Indian doctor assists a woman cancer patient (L) to try on a wig donated by a health care company during an event as part of International Women's Day celebrations at Kidwai Cancer Institute in Bangalore on March 7, 2015. AFP Photo
An Indian doctor assists a woman cancer patient (L) to try on a wig donated by a health care company during an event as part of International Women's Day celebrations at Kidwai Cancer Institute in Bangalore on March 7, 2015. AFP Photo
An Indian doctor assists a woman cancer patient (L) to try on a wig donated by a health care company during an event as part of International Women's Day celebrations at Kidwai Cancer Institute in Bangalore on March 7, 2015. AFP Photo
An Indian doctor assists a woman cancer patient (L) to try on a wig donated by a health care company during an event as part of International Women's Day celebrations at Kidwai Cancer Institute in Ban

India's human hair industry grapples with government export ban


Taniya Dutta
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For several years, Satwan Kumar has been bartering crisps and candy floss for tufts of hair collected from women in the northern Indian town of Kasgunj.

Mr Kumar, 18, is one of many hair collectors in India who roam villages and towns to gather the human hair that is raw material for making wigs for the multi-billion dollar world fashion industry.

The restriction will help revive the industry as the raw material would be available to all the manufacturers. We will become a finished product country
Sunil Eamani,
hair industry advocate

Since January, his business has been hit after the Indian government imposed restrictions on the export of human hair, part of an industrial policy to boost the local wig-making industry.

“My business is almost dead. My profit has halved because there are no takers for the raw material,” Mr Kumar told The National.

The teenager from Uttar Pradesh state learnt the trade from his father and elder brother as a child.

With no formal education or occupational training, it was lucrative work compared to hard labour.

A vendor (C) helps a customer with a wig sold at a roadside shop ahead of the Holi festival in Allahabad on March 15, 2014. Holi, the popular Hindu spring festival of colours, is observed in India at the end of the winter season on the last full moon of the lunar month. AFP PHOTO/ SANJAY KANOJIA (Photo by Sanjay Kanojia / AFP)
A vendor (C) helps a customer with a wig sold at a roadside shop ahead of the Holi festival in Allahabad on March 15, 2014. Holi, the popular Hindu spring festival of colours, is observed in India at the end of the winter season on the last full moon of the lunar month. AFP PHOTO/ SANJAY KANOJIA (Photo by Sanjay Kanojia / AFP)

Many women in India do not throw their fallen hair away in the belief that tresses are a part of their body and they preserve them according to age-old traditions.

India is one of the leading suppliers of human hair for wigs for the fashion industry and people suffering from conditions such as alopecia or hair loss through chemotherapy.

During last April and November, India’s hair exports were worth $145 million, a huge jump from $15.28m in the previous year, according to government data, with China a major export market.

In pictures: China's wig factories

Much of the exported hair comes from scores of temples, where female pilgrims tonsure their heads – clipping hair as a religious gesture for Hindu deities.

The hair, known as Remy hair, fetches high prices and is known for its quality as most of the donors come from rural areas where use of hair artificial beauty products is less common.

Hair derived from salons is not used in the industry as clippings are too short, increasing demand for naturally fallen or "virgin" hair that hawkers such as Mr Kumar collect from door-to-door.

Depending on the quality and the length, the hawkers buy the hair for 2,000 rupees ($26) a kilogram, which is sold to dealers for 6,000 rupees.

The hawkers make anywhere between 15,000 and 20,000 rupees a month.

Most of the hair ends up in the eastern part of West Bengal state’s thriving cottage industry, where workers untangle the clumps, wash it and straighten it.

Once ready, the raw hair, called “goli”, is flown around the world, mostly smuggled to China, where it is used in wigs, extension braids and curls.

But the government restrictions on exports of human hair – in part to address smuggling – have severely affected the small vendors and cottage industries as demand and rates paid for hair have fallen.

“Dealers are offering 3,000 rupees for a kilogram of hair. Our income has been slashed by half,” Mr Kumar said.

Local industry protection

But supporters of the government move say that the new rules will help to streamline hair exports, mandating licences for trading and helping to end smuggling.

They allege a large portion of the hair was illegally exported under the guise of other products, which deprived the local industry of raw material and damaged manufacturing capacity.

Sunil Eamani, a member of the Human Hair and Hair Products Manufacturers and Exporters Association of India who led the effort against smuggling, said the restrictions will help to revive the industry as the raw materials will remain in the country.

“At least 80 to 90 per cent of global human hair collected is from India as it is the biggest raw material supply source, but because of smuggling, we were losing our raw material,” Mr Eamani told The National.

An Indian doctor assists a woman cancer patient (L) to try on a wig donated by a health care company during an event as part of International Women's Day celebrations at Kidwai Cancer Institute in Bangalore on March 7, 2015. Hair-loss is one of the many side-effects of chemotherapy, which results in a loss of self-esteem in cancer patients and the gesture of donating them wigs was to boost their morale. AFP PHOTO / Manjunath KIRAN (Photo by Manjunath Kiran / AFP)
An Indian doctor assists a woman cancer patient (L) to try on a wig donated by a health care company during an event as part of International Women's Day celebrations at Kidwai Cancer Institute in Bangalore on March 7, 2015. Hair-loss is one of the many side-effects of chemotherapy, which results in a loss of self-esteem in cancer patients and the gesture of donating them wigs was to boost their morale. AFP PHOTO / Manjunath KIRAN (Photo by Manjunath Kiran / AFP)

“The restriction will help revive the industry as the raw material would be available to all the manufacturers. We will become a finished product country."

However, hawkers such as Mr Kumar and traders like Sikander Ali are not convinced as they believe the new laws will allow a monopoly and a glut of raw hair.

Mr Ali, 35, runs a third-generation hair exports company in Howrah in West Bengal.

His company deals in manufacturing of hair wigs and hair patches mainly used in the regional film industry and sold domestically, but it also exports limited quantities of raw materials.

“Government has banned raw hair, but who is buying it? Myanmar, Bangladesh and China and these countries will never buy our complete products because they have their factories and require raw material,” Mr Ali told The National.

“I welcome the move because it will help stop smuggling, but not every exporter was smuggling,” he said.

Mr Ali also pointed out that small manufacturing units like his where 100 workers are employed are not enough to finish all the raw material.

“Earlier, we exported the raw material left after making the wigs. We don’t have that level of workforce and infrastructure to complete all the raw materials.

"Expansion would require capital and if we fail to do so, we will face loss due to increased competition in the market,” Mr Ali said.

If you go

The flights

Fly direct to London from the UAE with Etihad, Emirates, British Airways or Virgin Atlantic from about Dh2,500 return including taxes. 

The hotel

Rooms at the convenient and art-conscious Andaz London Liverpool Street cost from £167 (Dh800) per night including taxes.

The tour

The Shoreditch Street Art Tour costs from £15 (Dh73) per person for approximately three hours. 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: February 22, 2022, 12:58 PM