Interview with Mr. Dinesh J Hinduja

Mr. Dinesh J Hinduja
Mr. Dinesh J Hinduja
Executive Director Production & Marketing
Gokaldas Exports Groups
Gokaldas Exports Groups

Responsible for marketing and manufacturing functions. He holds a Bachelor of Science degree from the Bangalore University. He has been involved in the business of the Gokaldas Exports Groups since its inception.

Indian garment industry is poised for sea change. What are the factors instrumental for this change?

Obviously, the Indian garment industry is on a growth mode because of dismantling of quotas from January, 2005. This is the main factor which propels the growth of the Indian garment industry. Added to this favourable position, one more big advantage is that quotas have been re-imposed on China by both the trading blocks, namely EU and U.S. for three more years. This gave an additional impetus to the Indian apparel export industry.

How, accordingly to you, were the textile quotas affecting global garment industry?

The textile and apparel growth from India was restrained due to the non-availability of quotas. Now, it is a sigh of relief that the quotas are gone - growth can take place with any barriers.

ASSOCHAM study puts retail market size at Rs.1,60,000 crore by 2008 and garment retail sector is really looking up in India. How do you rate this and what are the prospects for this industry?

I feel that ASSOCHAM's estimate of Rs.1,60,000 crores of retail market size in India is too optimistic and should be much less than that. The retail industry will definitely thrive because of the innumerous small retailers and the manufacturers involved, but one cannot expect handsome profits in the initial few years.

What is its future and how will the garment sector function when biggies like Walmart & Sears make inroads, here in India?

At the moment, we do not feel retailers like Walmart and Sears can make an entry in India because of the prevalent FDI limits. Recently, FDI was allowed only for special brands. This is a step in the right direction but still hyper markets and high powered retailers like Walmart are not individual brands and therefore they will find an entry into India will take much longer now.

On the readymade garment export front, India seems to be sailing easy. What efforts are required to boost efforts in bringing the industry to respond to the global buyers' requirement?

"On the apparel export front, the biggest trouble presently seems to be threefold: Tough Labour Laws Transaction Costs Power Costs Transaction costs include port expenses, transport expenses to the port, and other general administrative expenses."

Turning to Gokaldas, with its recent successful public issue, could you elaborate its growth graph from its inception?

"Our export volumes have been growing and in the past few years our export figures have been as follows: 2002-03 - Rs. 450 crores 2003-04 - Rs. 550 crores 2004-05 - Rs. 740 crores 2005-06 - Rs. 850 crores (estimated) "

What strategic initiatives has your company taken to be globally competitive?

"To compete with our neighbouring countries, the salient points which we are pursuing are as follows: Improve productivity Climb the value addition chain Establishing large scale factories so that economies of scale can be achieved"

Is the pricing pressure more for those who cater to international retailers or do those who operate in the premium segment face it as well?

The present pressure, of course, is more for those who cater to retailers like Walmart, Sears, etc. and as you rightly said, those who offer value added products are better off. However, having said that, there is a certain competition in all the segments, be it low, medium or premium segments.

A lot of exporters are now looking increasingly at the domestic market, at a time when export markets are opening up. Why?

Presently, I do not agree that many exporters are looking at the domestic market. With the export demand opening up, exporters are presently busy increasing capacities to cater to the world requirement.

What innovation has your organization resorted to increase productivity in your cutting/sewing/finishing departments?

We are modernizing our factories by upgrading the sewing machinery and allied machineries required. To name a few are the conveyor assembly line systems, modern finishing units, computerized cutting machines that eliminate manual cutting and improve manufacturing efficiencies.

Foreign buyers always hark upon Good Labor Practices. What steps have been initiated to that end?

"This is a wide subject and can be debated about the reforms being done in India as a stand alone country, and reforms being done as compared to China and other neighbouring countries. However, we, as a company feel that a labour friendly atmosphere is the foundation for any good organization today. Factors like child labour, exploitation of women workers are looked into in a more detailed manner. We have set up medical dispensaries to cater to our workers and their families medical needs. We are also providing medical help to pregnant women workers and taking care of their medical requirements. The goal in sight is to keep the labour happy and comfortable."
Published on: 20/02/2006

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.