The development of innovations has become one of the key factors for companies' competitiveness in the market. It is especially important for traditional industries, such as carpet manufacturing, to keep pace with progress. Among the leaders in implementing modern solutions is the SAG Corporation, a major carpet manufacturer based in Uzbekistan and represented in 10 countries worldwide, including Armenia, Azerbaijan, Georgia, Kyrgyzstan, and China. In 2019, the company entered the American market.
Said Khakimov, the Director of Production, Marketing, and Sales at SAG, spoke about the innovations the company is implementing at its enterprise and how this is helping the company grow.
Said, for many people, carpets are still associated with unique craftsmanship rather than large-scale production and modern technology. What's the real situation in the industry?
— Absolutely, the carpet industry retains significant cultural and historical importance, supporting traditional crafts. But today it's not just about heritage anymore. The industry took a rich cultural base as its foundation and combined it with new technologies. As a result, we have a significant sector of the global economy.
Today, there are still masters who weave carpets by hand, thus creating unique products. But the mass transition from manual to machine production happened back in the last century. And over the past decade, the industry has taken several more steps forward—businesses are actively implementing computer modeling, digital printing, automation systems, and using AI.
Speaking about your enterprise, how do you increase its technological level?
— We are constantly purchasing new equipment. This requires significant investment—on average, a modern carpet manufacturing machine costs around .5 million. But these costs are justified.
For example, the last four machines we purchased are already 95% automated. The proportion of employees' mechanical work has decreased to 5%—it has essentially been reduced to placing the threads in the correct position. The machine then does everything itself: it creates the product with a specific pattern, controls the quality of the output, and corrects errors.
The effect of implementing such machines is quite significant. First, they allowed us to reduce the volume of defective products. Secondly, they give us the opportunity to develop in conditions of a skilled labor shortage. Thirdly, all the new equipment is energy-saving, and if we replace all the old machines with the ones we are installing now, we will be able to reduce electricity costs by almost 70% in five years.
I'd like to note that we are automating not only the product manufacturing process but also business processes within the company, such as procurement, logistics, and sales. We moved business process management and control to the SAP system 8 years ago. In 2020, we even received a special award from SAP as a digital transformation leader in the CIS.
Additionally, for the past three years, we have been actively implementing AI in our work—integrating AI-based technologies into the order submission and goods shipment processes and using AI for design creation.
Your company was the first in the industry to recycle PET bottles into material for carpet production. How successful was this project?
— We highly value his results. If just a few years ago we viewed it primarily as an environmental initiative that would help reduce the volume of plastic waste in Uzbekistan, today it is an integral part of our production.
Every day, we recycle about 1 million plastic bottles, which we purchase not only domestically but also import from neighboring countries—Tajikistan, Turkmenistan, and Kyrgyzstan. From recycled materials, we obtain polyester flakes, which we use entirely in the production of carpet backing. This significantly reduced the consumption of virgin plastic.
The largest volume of recycled material is used in the production of artificial turf. It is also actively used in standard carpets. However, it's important to note that in each individual carpet, the proportion of recycled plastic threads is only 1–2%. However, due to the scale of production, the total volume of processed raw materials remains significant.
How did the switch to secondary plastic affect the company's business performance? Were you able to reduce raw material costs?
— Honestly, our costs increased after switching to using recycled plastic threads. But for us, this was fundamentally important—we consciously took this step because we wanted to develop production in the spirit of sustainable development.
Over time, we did feel a positive impact as well. For example, we were able to optimize our supply chains: whereas before we had to wait for our partners to deliver plastic threads to the enterprise, now we independently supply ourselves with the necessary volume of raw materials from recycled plastic. Plus, we received a lot of interest from the media and influencers, which gave the brand an extra boost.
In the end, a decision that was initially costly brought us certain benefits: we strengthened the company's image, expanded opportunities for further growth, and demonstrated how one can work effectively while contributing to environmental conservation. I hope other companies will follow our example.
You are quite actively implementing new technologies. And how did this affect the company's production figures?
— Our production volumes are growing every year. If in 2020 we produced 12 million square meters of carpets annually, by the end of 2024, the production volume reached 15 million square meters.
But it's important that this product finds its buyer. Therefore, we are working on increasing sales volumes in both domestic and foreign markets.
Do you get the impression that carpets are losing their relevance as an interior design element?
— Actually, it's the opposite: interest in them is only growing. And for both regular customers and businesses—whether they are large companies working in an office, restaurants, or hotels. People want their spaces to look cozier and are turning to designers. And designers almost always include rugs when creating projects—they are what help make an interior warm and complete.
What kind of carpets are in demand today?
— Nowadays, most buyers choose products in calm, natural shades that look harmonious in modern interiors. The Moroccan style is also trending—with its characteristic patterns and textures.
Speaking of materials, cotton and wool are most often preferred. Such carpets create a feeling of warmth and coziness that is impossible to get from laminate or tiles.
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