Interview with Aroon Hirdaramani
Aroon Hirdaramani
Director
Hirdaramani Group
Director
Hirdaramani Group
I think sustainability is possible anywhere; it is a matter of commitment from industry leaders.
Mr. Aroon Hirdaramani discusses the Sri Lankan textile industry in comparison to other textile industries of South Asia with Mary Christine Joy.
Synopsis:
Headquartered in Sri Lanka, the Hirdaramani Group is one of the country's largest conglomerates with interests in apparel manufacturing, hotels managed by the Hilton and Taj Group, renewable energy, IT, retail and finance. The group has a global reach, with over 40,000 employees across 6 countries and garments being sold to the world's leading brands and retailers including Marks & Spencer, Tommy Hilfiger, Levi's, Calvin Klein and Uniqlo. The group's production facilities across Sri Lanka, Bangladesh and Vietnam utilize lean manufacturing and produce approximately 12 million garments each month.
Aroon Hirdaramani has served as a Director of the Hirdaramani Group since 2003. Aroon earned a bachelor's degree in Business Economics from Brown University in 2001. After graduation, he worked as an analyst in investment banking at Credit Suisse in New York. Over the past 10 years he has helped to grow the Group's turnover exponentially and make it a model for operational excellence and environmental sustainability.
Excerpts:
Hirdaramani Group has moved from being a humble retailer to a major manufacturing and retailing group in Colombo. How would you describe the journey so far?
It has been over 100 years since Hirdaramani started and I have been part of that journey for the past 11 years. I think the best way to describe the Hirdaramani story is to say that it has been driven by the "spirit of entrepreneurship." We started with the concept of 'same day' tailoring for the ships that came into the Colombo port, then expanded to other apparel retail, and over the years have continually identified new business opportunities, constantly diversifying and growing. From one of the pioneering companies in Sri Lankan apparel export, we now have a presence in multiple industries - alternative energy, leisure, finance, retail and IT, to name a few. At Hirdaramani, we have never been satisfied with the status-quo and are always continuously looking for new opportunities.
Headquartered in Sri Lanka, how do you see the Sri Lankan textile industry as a sourcing destination in comparison to Bangladesh, Vietnam, and other Asian countries?
I think Sri Lanka is well known for its use of sustainable practices when compared to other Asian countries. This concept is prevalent across a large section of its textile and apparel manufacturing. Consumers today are more socially conscious and are looking for companies that deliver more sustainable products and Sri Lankan manufacturers are able to help our customers meet this goal.
You were featured in the Echelons 40 under 40 list. You have achieved quite a lot in a young age. What advice would you like to give to young, aspiring entrepreneurs in Sri Lanka?
I would advise young entrepreneurs to remain updated with the latest technological innovations. The world is changing at a rapid rate and in order to be competitive you need to keep at the cutting edge. Most importantly, it is important to keep learning and redirecting that knowledge back into your business. To be truly successful, you have to accept that your job is never really done, and always have an insatiable desire to learn more, do more and keep improving.
What according to you are the advantages of the Sri Lankan apparel sourcing industry in comparison to other sourcing destinations of South Asia?
The biggest advantage of the Sri Lankan apparel industry is reliability; this sector is very stable and labour relationships are very strong due to a top-down focus on working conditions and employee development. We are also very particular about environmental protection, compliance, and a high level of sustainability across the industry. In addition to this Sri Lankan manufacturers continually focus on manufacturing and product innovation. This has helped us to remain competitive and provide a one stop shop for our customers.
Sustainability is considered to be Sri Lanka's strength as compared to other South Asian countries. What makes sustainability possible in Sri Lanka?
I think sustainability is possible anywhere; it is a matter of commitment from industry leaders. In Sri Lanka, Hirdaramani and companies like us, took the initiative to invest and kick start the focus on sustainability by building eco-friendly factories - such as our first green factory, Mihila, which was also the first custom-built green apparel factory in the world. By taking the first step, we set the standard and led the way for other companies to follow. Then, the industry begins to almost regulate itself and these practices become norms. Another important point is that sustainability is inherent in our culture here in Sri Lanka, as we are an island with scarce resources so we do our best to conserve these.
How important is training in a work place? Can you elaborate your opinion?
Training is essential in any work place. Firstly, it is an essential part of an employer's commitment to create development opportunities for their employees. This is something we take very seriously at Hirdaramani and we run several programs that range from technical trainings to leadership development, all of which are geared to identify and develop individual capabilities and talents. By investing in training and education, we ensure that every single employee has an opportunity for advancement. Secondly, it is a key part of staying competitive, a company is only as good as the people who work in it, and as I mentioned with the rapid rate of innovation today, it is important that employees are up-to-date on the latest technology.
You have served as an analyst in investment banking in the past. How did that experience help in managing the Hirdaramani Group?
Being from a family business, in a way, the apparel industry has been part of my DNA. Stepping away from this and gaining experience in a different sector was an important part of developing a better-rounded understanding of business and corporates. By applying what I learned in investment banking to what I do today, I am able to bring a new perspective to problems and issues that crop up.
Energy efficiency is one of the major issues plaguing the South Asian textile industry. Do you agree? Do you suppose that South Asian textile industry is losing out to other countries like Vietnam and China for this reason? Please explain your stand.
I feel the issue that we face in South Asia is the relatively high cost of energy as compared to other regions. As energy is a major component in the total cost for textile mills this does put our mills at a slight disadvantage. However I know mills in Sri Lanka have worked very hard on using alternative energy sources as well as improving energy efficiency which has allowed them to remain competitive.
Which countries outsource their apparel manufacturing work to Sri Lanka majorly? What reasons do you suppose attract these countries to Sri Lanka when it comes to apparel manufacturing?
The US and Europe still remain our larger export markets. There are historical factors that do come into play here and in many cases our customers from these regions have been sourcing from Sri Lanka for years. Certain brands have remained loyal to Sri Lanka as ourselves and other leading manufacturers have provided complete supply chain solutions for them. More recently Sri Lanka has also become the destination for value-conscious brands, with our highly skilled work force, vertically integrated manufacturing and development of sustainability, we are the go-to option for brands that are conscious of these factors. With the change in market trends this continues to open up new regions for us.
Out of woven, knit, and bonded fabrics, which type is the strength of South Asian textile industry? Why do you suppose South Asia rules in this type?
I think South Asia leads in the knit and woven sectors, primarily because a legacy of manufacturing across these two verticals has led to a well-developed knowledge and skill set. The cotton industry is very strong in India and Pakistan, and when it comes to Bangladesh and Sri Lanka, the knitwear Industry is well developed because of the market demands over the years, which have led to an increased number of vertical manufacturers in this category. The polyester industry unfortunately is not quite as developed. This is one area where textile mills in our region needs to develop rapidly as consumer demand for synthetic fabrics continues to grow each year.
Published on: 28/08/2014
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.