Monday, February 04, 2008

In The Footprints Of Time


IIPM Mumbai Parables - Stories that change life

Carrying In The Footprints Of Timeforward his textile dreams, Mukesh Ambani is charting out strategies to revamp the Vimal brand which is all set to don a new logo in September 2007. The Wadias too of late, have shown much enthusiasm about their Bombay Dyeing brand and are currently scouting for strategic tie-ups. Even the globally fashionable brand Louis Vuitton – a part of the LMVH Group – has chosen Pondicherry as the location for its first manufacturing unit in Asia. Surely, with the domestic market estimated to be worth a spanking $45 billion by 2012 (as per CRISIL), all organised players, too, will have reasons enough to smile where returns are concerned.

However, what we cannot overlook here is the vital entry and market capture element that bigwigs have clearly missed out on – the fact that relatively smaller players like Arvind Brands (with their foreign collaborations) and retailers like Biyani have already stolen the show in the Indian market. On the global front too, it’s the smaller fish that rule the global seas (with organisations like Gokaldas Exports stealing the show) as Nair testifies, “These small players from the beginning were much focussed and their core strategy has been to capture the global apparel market... and they’ve done well...”

What, however, tarun joshi: CEO (Retail), S. Kumarsmakes the picture ugly is the fact that while on one hand, we talk of the Indian sub-continent being conducive for textile manufacturing units, on the other, we have stood silent spectators to the blow inflicted to this very industry, through closure of 92 mills in the 10-year period 1995-2005 (as per Ahmedabad Textile Mills’ Association) which includes one of the largest mills in India, belonging to Mafatlals. At the same time, as surprising it is, big Indian conglomerates never thought of either backward integration or offering other products (like moving across the value chain to include handloom, silk et al). Little wonder why Vimal & Bombay Dyeing are not referred to as ‘power brands’ today!

On theWHO’S THE SILKIEST OF THEM ALL? contrary, there were smaller players like Gokaldas, Alok Industries, Rajasthan Spinning & Weaving Mills (RSWM) et al who never banked on just one category of products. Explains, Vivek Hinduja, CEO–Marketing, Gokaldas Exports, “We generated huge funds from export of silk yarn & products made out of such yarn, as silk was the prime revenue earner during the pre-1980s years. However, my grandfather & father realized that it’s not always safe to keep all the eggs in one basket. So we moved up the value chain and when the demand for Indian silk yarn started falling in global market, we already had equipped our self with power looms...” No wonder, with clients like Nike, Adidas, Reebok, Gap et al, Gokaldas produces 2.5 million garments per month and is the largest apparel exporter in the country. Surely today, it’s reaping the fruits of long term vision.... So while McKinsey in its ‘Apparel Trade’ Report has forecasted $16 billion in domestic sales by 2008, one aspect becomes clear – ‘apparels’ in India are shining brighter post-quota regime.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

For More IIPM Info, Visit Below....

Posted by at
Labels: , , , , , , , ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)