In a world where women often take the back seat in manufacturing, Priyanshi Bodar and Shivani Khodbhaya are steering House of SP LLP, a knitted garment manufacturer, to new heights. The duo from NIFT Gandhinagar launched their venture in 2020, headquartered in Ahmedabad, Gujarat.
From humble beginnings with just 100 machines, they have magnified their output from 1.2 million pieces to an impressive 3.6 million annually. Their revenue has seen a remarkable jump from Rs. 18 crore to Rs. 47 crore in just a few years.
Shivani, armed with a fashion design degree, gained experience both internationally, with stints at ‘Kevin John’ in New York, and domestically with ‘Zwaan’ in India. Priyanshi, on the other hand, boasts a background in fashion technology, coupled with valuable insights gained as a buyer for a prominent domestic retail chain. Their primary market is domestic retail, partnering with major Indian retailers like Reliance Retail Ltd., Aditya Birla Fashion & Retail Ltd., Lifestyle International Pvt. Ltd., as well as international retailer Apparel Group’s R&B. In a freewheeling chat with Apparel Resources, Priyanshi Bodar, Founder, House of SP LLP, discussed the qualities needed to establish long-term partnerships with brands, the benefits of shifting to fabric production hubs, overcoming challenges while raising capital for expansion and more.
AR: What does a brand seek from a manufacturer?
PB: Clients in the fashion industry expect more than just basic products; they want designs that reflect the latest trends and styles. They look for partners who can offer them something fresh and appealing. I am stating this from our experience. We start by analysing sales data of our products and that of competitors, looking for patterns and sudden changes that might indicate trends. We conduct surveys and focus groups with our target demographic to understand their preferences and behaviour. By monitoring social media, blogs and forums, we identify popular styles and products. To get a broader perspective, we subscribe to trend forecasting services and consult industry reports. Once potential trends are identified, we test them with small-scale production runs and gather feedback to refine our offerings. During the first year, we could see that no client would give sustainable or continuous business until and unless we provided them with design solutions and input on the latest trends and new fashion-look fabrics. Also, sustainability has become a significant concern in the fashion industry due to environmental and social issues. Clients increasingly demand eco-friendly and socially responsible practices from their suppliers.
Our manufacturing facility is SEDEX-approved for compliance. Our sustainability efforts include sourcing eco-friendly materials, reducing waste through efficient production processes and implementing ethical labour practices. We are also focusing on offering more eco-friendly fabrics to our customers. Last year, 10 per cent of our business came from recycled products.
Lastly, given the intense competition, it’s crucial to not only meet expectations but exceed them. Despite being a relatively new entrant in the industry, we have installed industry-leading machinery from day one. We use CAD plotters and software from Gerber at our headquarters for quick pattern turnarounds and precise yields. Our sewing machinery, equipped with UBT (Under Bed Trimming), comes from reputable brands like Juki, Brother and Pegasus, ensuring high-quality and efficient production.
To keep our supply chain running smoothly, we’ve formed strong partnerships with vendors and adopted efficient inventory management practices. We’re all about data-driven decision-making, which is why we use ERP systems to manage production, inventory and procurement data comprehensively. Moreover, we use Demand Planning Software, Inventory Management Software and Business Intelligence (BI) Tools to stay ahead of the curve.
AR: What challenges have you encountered on your path to growth?
PB: One of the main hurdles we’ve faced is limited access to funding. The garment industry is often seen as high-risk, making it tough to secure traditional financing, especially without collateral. Then there’s the hefty price tag on technology. Investing in technological advancements can drain resources, especially for smaller manufacturers like us. And market volatility can scare off investors, leaving us stuck in a funding limbo when we’re trying to expand.
However, we’ve been tackling these challenges head-on. First of all, we’ve been exploring alternative financing options. From venture capital to crowdfunding, we’re on the lookout for funding to support our tech upgrades and expansion plans. Plus, forming strategic partnerships is vital. Such partnerships with technology providers helps us share costs and resources for implementing technological solutions.
To mitigate expenses, we look out for cost-efficient options. Whether it’s cloud-based software or modular systems, we’re prioritising solutions that won’t break the bank but still get the job done. Of course, we know investors want to see the numbers, so we’re making sure to provide clear projections and demonstrate the return on investment (ROI) of our tech upgrades and expansion projects. But we’re not stopping there. By branching out our revenue streams and product offerings, we’re not only spreading out the risks tied to market volatility but also attracting investors who like a bit of variety in their portfolios.
AR: What are your expansion plans?
PB: In addition to our knitted offerings, we’ve diversified into woven and rayon garments, particularly focusing on the childrenswear category. This year, we’ve allocated a portion of our capacity to produce resort shirts, capitalising on their popularity in the market.
We also plan to expand our product lines by introducing sustainable and tech-integrated fashion, catering to evolving consumer preferences. For instance, we’re exploring the integration of advanced textiles with embedded technology, enabling garments to adapt to various environmental conditions or user preferences. These fabrics may incorporate elements like temperature regulation, moisture-wicking capabilities or even interactive features that respond to touch. We’re also exploring hybrids that merge traditional fashion with tech.
Geographically, we aim to penetrate emerging markets such as Southeast Asia, Latin America, Africa and certain parts of the Middle East. For strategic partnerships, we are collaborating with suppliers, distributors and technology firms to enhance capabilities and expand market reach. Plus, we’re hitting international fairs to learn more about exporting. To further reduce lead times, we’re planning to manufacture closer to a major fabric hub – Ludhiana. Right now, we’ve got a sampling unit and design studio in Ahmedabad, perfectly placed for global connections and talent attraction. Our main manufacturing hub is in Vapi, Gujarat, rubbing shoulders with industry giants like Alok Industries, Raymond and Welspun, which ensures smooth operations.
We have even teamed up with Alok Industries in Vapi to boost our supply chain efficiency. With fabric travel times of under two hours, any delays in the production schedule can be managed swiftly. Post-pandemic, a seismic shift in consumer preferences unfolded, with comfort and cotton fabrics reigning supreme. Collaborating with Alok Industries in Vapi enhanced our supply chain, making us more efficient and responsive to market changes. However, within just two years, the landscape changed dramatically with the rise of fast fashion brands like Zudio. Emphasis shifted towards cost-effective, value-laden offerings, ushering in a new era dominated by man-made fibres and innovative styles. To adapt, we switched our fabric sourcing to Ludhiana, focusing on polyester. Despite longer transit times, our stint with a sourcing office there was successful. Now, we’re gearing up for a garment manufacturing unit in Ludhiana to streamline operations further.
| Our manufacturing facility is SEDEX-approved for compliance. Our sustainability efforts include sourcing eco-friendly materials, reducing waste through efficient production processes and implementing ethical labour practices. |
AR: What’s your take on the future of the market?
PB: The youth in our country are getting more fashion-conscious by the day, influenced by global trends, social media and Western culture. They want clothes that reflect their individuality and evolving tastes. With such diverse economic backgrounds, there’s a huge demand for clothing that offers value for money. And by that, I don’t just mean cheap stuff, but clothes that strike a perfect balance between quality, affordability and style. This shift towards democratising fast fashion signifies a departure from traditional notions of clothing affordability and accessibility. It implies that fashion brands and retailers are increasingly focusing on efficient supply chains, cost-effective manufacturing processes and streamlined distribution channels to offer trendy clothing at competitive prices.
When it comes to what’s popular, you can bet that T-shirts, jeans, dresses and athleisurewear are going to stay in demand.
