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I started making profits immediately because I was trading, not manufacturing
It is a company that is barely ten years old, but after the first crore that came in 2008, it has been a whopping 30-35 per cent growth for Everflow Petrofils. Now rechristened Everflow Technotex , the group's turnover is more than ₹800 crore. Everflow was launched by Pinkesh Jain in 2006 after he broke off from his uncle with whom he had been working even as a student. With an investment of ₹40 lakh, some 70 per cent of which had to be financed, Jain imported a container of polyester spun yarn that the Indian industry hardly knew about at the time. Jain made his margin, and since then the trajectory has only been one of growth. In this full-length interview with Fibre2Fashion, Jain shares his success story.
So, how did it all start?
It started in 2006 when I parted ways from the old business of my uncle.
What was the old business of your uncle? Where was this? And, what was your role there?
That was yarn dyeing of polyester-in Bhiwandi. I was handling marketing over there, besides import of all partially oriented yarn (POY), which is made from by-products of crude oil i.e. PTA (purified terephthalic acid) and MEG (mono-ethylene glycol). The POY was being imported from China.
But, why did you separate? What is your uncle doing now? What are the reasons that Bhiwandi is at the centre of the yarn dyeing business?
It is a company that is barely ten years old, but after the first crore that came in 2008, it has been a whopping 30-35 per cent growth for Everflow Petrofils. Now rechristened Everflow Technotex , the group's turnover is more than ₹800 crore. Everflow was launched by Pinkesh Jain in 2006 after he broke off from his uncle with whom he had been working even as a student. With an investment of ₹40 lakh, some 70 per cent of which had to be financed, Jain imported a container of polyester spun yarn that the Indian industry hardly knew about at the time. Jain made his margin, and since then the trajectory has only been one of growth. In this full-length interview with Fibre2Fashion, Jain shares his success story.I started making profits immediately because I was trading, not manufacturing The reason was that many people were already there in the same business; one did not need to be there at all. I was 18 years old then, doing graduation from Hinduja College in Mumbai. My uncle is still a trader. He has stopped the dyeing business, and is trading in the same business (as us), and is buying yarn from us. Bhiwandi has availability of water, and at that time power charges too was less, and moreover drainage was easy in Bhiwandi (since yarn dyeing need some chemicals to be drained).
And, how did Everflow happen?
After separating from my uncle's business, I was studying and also looking at how to get into a new business area. At that time, there was one particular import from Indonesia that was new to the Indian market- polyester spun yarn (PSY). In the past, there had been products like DTY and FDY, but PSY was absolutely new. I purchased PSY and studied the quality which was really great, and our customers were also demanding more of PSY. The price was not comfortable those days. I therefore started searching in the B2B marketplace -on websites like Alibaba. Since 2006 I had been looking into this, and wondering how I can get a cheaper price of spun yarn since it has a good market in India. Then, I found a factory in China. I raised an order of one container costing ₹40 lakh. I sold it, and the margin was good. For this ₹40 lakh, I took a finance of about 70 per cent. When I separated, I had ₹15 lakh as a part of my share of the earlier business. I started working with my uncle when I was 16 years old, and I was studying in a private university at the time. I have also been in the textiles institute Sasmira and have studied for a year. Then I was in Bhiwandi, and learnt a lot about machinery, how they are operated, etc.
So, after this one container, buyers were so happy that they started to invest in me-like buying on an advance basis. I was directly putting money in the Chinese market. Later, we heard of recycled spun yarn in China which is made of used PET bottles and which is now commonplace in India. But in 2006, we were the pioneers in importing those. So, that's how it all started. In 2007, I had imported 15 containers. Then I went to the banks as the business was growing, but funds were in short supply. My margins increased, but I did not have much money in hand. At the end of 2007, Punjab National Bank gave me ₹2.5 crore. The next year, I was able to import 15 containers a month. In 2007, I introduced recycled spun yarn into the Indian market. Normal spun yarn is white in colour while recycled spun yarn is greyish; hence, people did not accept the goods initially. I went to Bhiwandi and Surat, sitting by the looms, and letting them make the fabric, dye it, print it, and the final result they obtained was the same. Then gradually, by word of mouth, the market for recycled spun yarn expanded in Bhiwandi as it was cheaper by 15-20 per cent than virgin yarn. After that, markets began to be set up in Surat, Malegoan, Puranpur (in Madhya Pradesh). By then, recycled polyester was a brand with brand name MC (Ming Chang, a Chinese company). We have had a monopoly in India since 2008. The spindle capacity of MC is more than RSWM. We have also been awarded by the Chinese government for establishing recycled spun yarn in India. People who didn't want to dye their fabric but wanted to print them bought the recycled yarn. So, there were two categories now-for print they used recycled yarn, and for dyeing they used virgin yarn. Whatever is polyester-made can be recycled; it need not be virgin yarn. There is no difference in the fabrics that have been made from recycled or virgin yarn. There are some difference in the strength though, as recycled yarn is a bit lower in strength. For running on high quality looms like waterjets or airjets, it was difficult to run on those machines because of the strength. So, on this we researched a lot to make the strength equivalent to that of virgin yarn. Now, the difference between the strengths of the two is barely 5 per cent.
What are the processes required to make recycled yarn equivalent to virgin yarn?
The process involves addition of some chemicals to the fibre. There are some high-quality strength used-bottles that you can use. This we started buying from airlines and five-star hotels. The bottles we bought from the collecting centre went to the manufacturing unit in Silvasa, where there were crumpled and converted into recycled yarn. The energy consumed for making both virgin yarn and recycled polyester is the same. The amount of chemicals being used and labour are also equal.
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