Low cost manufacturers have their own market; do not affect us
Inspiron Engineering Private Limited (IEPL) is one of the few suppliers of stenters to the textile machinery industry worldwide. With its new product- Sprinton on the anvil, IEPL plans to conquer the global stenter market. Sprinton will be its main showcase in ITMA 2015. In an interview with Fibre2Fashion, Amol Bhagwati, MD of IEPL shares insights on the markets for stenters along with his aspirations from the product.
What are the latest technological innovations taking place in the textile processing industry?
The global textiles trade will keep growing at 6.6 per cent to reach $1,180 billion by 2020. The textile processing industry in India is passing through a tough phase - with several issues such as effluent treatment plants (ETPs), emissions, higher cost of energy, paucity of labour, etc, coming to the fore. The thrust is predominantly on reduction of thermal and electrical energy needs, recovery of energy from exhaust air, elimination of value losses by means of reproduction through automation, user-friendly applications - thereby reducing errors in operation, efficient and quick diagnostics to reduce machine downtime, etc.
Which are your target markets for Sprinton? Which markets do you plan to tap in the future?
Sprinton is targeted at the higher end of the segment. We will be competing with the top-end segment of the competition, mainly from Europe. Our focus will be on technology-savvy corporate firms in India as well as markets which are adept at absorbing advanced technology. We will focus on Turkey, Bangladesh, Indonesia and Sri Lanka.
How cost efficient is your product for the Indian market? What are your plans to deal with competition from low-cost manufacturers?
We have been marketing Motex for the last two decades. It is considered the best stenter manufactured in India. We have Motex running in extremely competitive markets. We have Motex running in extremely competitive markets such as Gorakhpur, Surat, Bhilwara, Bhiwandi and Ahmedabad.
This bears ample proof of cost-efficiency of Motex. Low-cost manufacturers have their own market segment, and we are not affected by their presence.
Please give an approximate break-up on the manufacturers of stenters worldwide and in India? What is your strategy to counter the competition?
There are approximately 150 stenter manufacturers worldwide, with about 40 manufacturers located in India. We believe in offering the best value for money. Our basic technology is derived from leading stenter manufacturers in the world, with further enhancement on our inherent design strength and synergy and with professionals in the field of aesthetics, ergonomics, fluid dynamics, etc. We offer the lowest operating cost per unit of production in this part of the world.
What is the USP of the stenters from the IEPL stable?
Inspiron stands for inspiration and innovation. Our products always stand out from the competition on account of their sturdiness, high productivity, low utility requirement and superior quality of processing (backed by outstanding after-sales service). We are constantly evaluating our own performance - be it timeliness of supply, product performance, quality of our services or availability of spares. Apart from an enriched product offering, we also provide technology support to improve upon process parameters, operators' skill, and optimisation of production facility, to name a few. No other manufacturer offers these services; this is unique to Inspiron.
Sprinton has been designed to generate 15 per cent more productivity without any increment to other cost elements. The tremendous advantage offered by Sprinton can be easily visualised.
How do you view competition for this product from companies based in China, Germany and Italy?
We have already been competing with manufacturers from China, Germany and Italy for the last two decades. We have been increasing our market share in the last couple of years. Indian customers have benefitted from our European technology provided at Asian prices, without getting affected adversely by the currency pressure. The industry is mature enough to understand the distinct advantage Inspiron is offering on all the fronts of technology, price, service, spares and product support which none of our counterparts are in a position to offer.
What was your growth percentage in the last two years? What is your expected growth for the next two years?
We have improved our sales by 30 per cent in 2013-14. This year, our growth will be around 40 per cent as compared to the previous year. We believe the trend will continue.
What are the plans for the next two years?
We would like to further consolidate our market share. Sprinton being added to our product portfolio, we shall be looking at the export market.
What percentage of your overall profit is allocated towards R&D?
We are investing around `5 crore in the R&D centre which is under construction. This is a capital expenditure. However apart from this, we shall also be incurring recurring expenditure on account of the various R&D activities we shall be carrying out of our own as well as of associate industries like chemicals, auxiliaries, educational and research institutions, and the like.
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