Mr. Deepak Seth
Founder House of Pearl Fashions Limited (HOPFL)
In general, textile-apparel companies run with high working capital. In the case of HOPFL it is positioned much better – how do you manage working capital so efficiently? In India and other countries, who else has similar business model like yours?
Our model works on just in time delivery where by delivery flows ensure that the customers do not have to sit on larger stocks which in turn reduces the working capital requirements and reduces costs to the supply chain. We focus on inventory management, be it fabric, trims, accessories/garments. Our model is very similar to Li & Fung model in many respects.
May we also request your outlook for future growth and opportunity?
The out look for the industry is challenging because of the world economic crisis. Fortunately, House of Pearl Fashions with its unique infrastructure is well placed to grow 25-30% year to year. As the going sets tough there are huge opportunities because of the consolidation going in the supply chain at manufacturing and retail level. We are in the right countries for manufacturing and in right countries for marketing and distribution world wide.
Going forward our focus will be to grow bottom line and give good return to our investors and share holders while at the same time ensuring 25-30% growth in top line.
That means as per the mentioned growth rate of 25-30%, your company will reach the top line of billion dollars by 2014. What growth factors will be driving this?
This would be in principle an organic growth leveraged through present capacities and strengths of the group. However, we are open to M&A too, provided it best fits our visions.
In addition, HOPFL has invested significantly on IT networks. Has it benefited in growing the business and acted as competitive edge?
We invested in IT solutions and have implemented SAP across our supply chain. SAP has helped us to bring transparency into the different processes of management and have made the entire supply chain very efficient. Long term it will also bring cost savings and better handling of wastage control, better yields and better returns.
Mr. Seth, Fibre2fashion is launching special feature on supply chain management focusing on apparel industry worldwide. In this context, we would like to know your comments on challenges and concerns allied to logistics in textile-apparel sector in India.
India has a very weak infrastructure resulting in very huge challenges to logistic especially for manufacturers who are not in port city. Also our ports have still lot to learn from Hong Kong and China where exporters can handover goods on day of sending the vessel. In India shipments have to be handed over a week or 10 days before sailing resulting in delivery time reduction causing massive pain in extra costs to the garment exporters. Also the connectivity to vessels schedule is no where near the frequency we get in Singapore, Hong Kong and China. There is a lot of work to be done in the field of cargo movement both inward/outward. If we have to compete with the likes of countries like China, Indonesia, Sri Lanka etc. serious thought has to be given to ensure improvements.
Your group also associates itself with field of education, imparting knowledge. can you bring out more about Pearl Academy of fashion, and developments therein?
Seth family promoted Pearl Academy of Fashion in 1993 with an objective to impart education to students for the garment export industry which was really starved for technical support till Pearl Academy of Fashion came up. There was lot of trial and error in garment export industry causing huge waste of time, money and manpower. Today Pearl Academy of Fashion has been ranked as No.1 private institute in the fashion industry with almost 2000 students in the campuses in Delhi, Jaipur and Chennai. The alumni of Pearl Academy of Fashion are today working as captain of the industry and responsible for great success in the retail, textile mills sector, garment sector and logistic. We are proud for what the institute has done for the garment / retail industry in India.
Fibre2Fashion has a diverse global readership, and delivers unique, authoritative and relevant content. Drawing on the expertise and credibility that we have built over the years and contextualising them with our in-depth research studies, we produce authentic news, articles, reports, interviews and interactive explainers through the F2F Magazine and compendiums, among others, which help readers stay abreast with the industry trends.