It’s challenging to objectively prove superiority in quality, claims Gurveer Singh, Director, United Exim, a Noida-based company, founded in 1995, currently working with all the top Indian brands like Raymond, Aditya Birla Group, Arvind, Blackberrys, French Connection, Park Avenue and more and targeting the overseas market with expanded capacity. Currently it has a manufacturing capacity of 800 waist coats, 3000 blazers and 5,000 trousers per day. Having an annual turnover of Rs. 250 crore, the company is expecting multi-fold growth after the expansion. In a candid interview with Apparel Resources, Gurveer shares insights into the company’s investment plans, market outlook and strategies for staying ahead in the competitive landscape.
AR: How does United Exim plan to utilise the Rs. 300 crore investment for its expansion project? How will it enhance the company’s operations and market presence?
GS: Our upcoming project is scheduled to be completed within the next one-and-a-half to two years. We’ve successfully acquired nearly 10 acres of land in Greater Noida for this. It’s expected to cover around one million square feet of usable area. As for the production capacity, we’re planning to produce approximately 11,000 blazers, 15,000 trousers and 2,000 waistcoats per day. Presently, the bulk of our business comes from the domestic sphere. However, to propel further growth, we’ve realised the importance of venturing into exports. To facilitate this transition, we’re heavily investing in our upcoming plant, strategically positioned to meet the needs of the export market. Our focus extends to key regions such as the US, UK, Europe, Australia, Russia and Japan. We aim to replicate the success we’ve experienced domestically by prioritising quality, timely delivery and exceptional service in the export arena. With developments like FTA agreement signed with Australia and the UAE, the proposed FTAs with the UK and the EU, we are planning for long term and as India is lacking on capacities, we want to have good capacity. We have strong know-how and with the support of capacity, we will be able to compete with the countries having stronghold on overseas buyers.
AR: Do you think the foreign market will improve soon, even though they are sluggish right now?
GS: Our decision to expand was taken in 2022 based on the sudden market boom post-Covid. It was a unique time when we saw two distinct scenarios unfold: some manufacturers closed their doors, while others experienced unprecedented growth. Thankfully, we fell into the latter category. However, over the past year, the market has slowed down considerably. This slowdown can be attributed to the peculiar spending patterns seen in 2022, where consumers splurged on discretionary items to boost their morale after the hardships of the pandemic. Unfortunately, this trend didn’t continue into 2023, resulting in an oversupply situation for both brands and retailers. At United Exim, we prioritise financial prudence and strategic planning to weather such market fluctuations just like in the stock market where it’s crucial to be prepared for downturns and seize opportunities when they arise, rather than waiting for peak times to take action. This principle applies not only to the garment industry but also to any sector.
AR: How do you scout potential foreign customers?
GS: The bases for our strategy aren’t too complex. Firstly, we gather import-export data to track the top 10 customers buying suits and blazers from each country. Secondly, if the volume is high, price isn’t usually a challenge due to economies of scale. Premium customers are also considered. Then, we use online platforms to identify the top-selling brands and their longevity in the market. We approach these customers through zoom calls or one-on-one meetings to onboard them to our company profile.
AR: Which regions within our own country are the biggest contributors to your business?
GS: Our focus isn’t so much on distinguishing between Tier-1, Tier-2 and Tier-3 markets because that largely depends on the sales strategies of the brands we supply to. From my discussions and experience with these brands, they’ve indicated that while Tier-1 markets performed well in the past, they’re now seeing significant growth opportunities in Tier-2 and Tier-3 markets. The appeal lies in the aspirational nature of products, where purchasing them provides a sense of luxury and prestige. In Tier-1 markets, where these brands are more established, consumers have become accustomed to them, resulting in less excitement and novelty. However, in Tier-2 and Tier-3 markets, where these brands are relatively new, there’s a greater sense of novelty and excitement amongst consumers. As a result, brands are expanding aggressively into these regions by opening new stores.
| “We measure our success by the percentage of shipments dispatched successfully on the first inspection. For example, if we have 100 shipments scheduled for this month and 95% pass inspection on the initial attempt, then our shipment success rate stands at 95%.” Gurveer Singh Director, United Exim |
AR: How do you distinguish yourself from your competitors? And in your opinion, is quality a significant differentiator?
GS: Firstly, I want to address the common belief that quality is the primary differentiating factor. According to me, quality alone isn’t enough to stand out because it’s challenging to objectively prove superiority in quality. Instead, what sets us apart is our commitment to service excellence. We’ve implemented various systems and automation to streamline processes, ensuring faster communication and seamless operations. This enhanced service level significantly contributes to our customer satisfaction.
Secondly, we focus on on-time delivery. When we make commitments to our customers regarding delivery timelines, we strive to fulfil them punctually. Our customers appreciate reliability and we’ve found that they are willing to pay a premium for timely deliveries.
Lastly, new product development is another crucial aspect. While quality may be subjective, we focus on meeting our customers’ specific requirements and preferences. We measure our success in this area by the percentage of shipments dispatched successfully on the first inspection. For example, if we have 100 shipments scheduled for this month and 95 per cent pass inspection on the initial attempt, then our shipment success rate stands at 95 per cent. This metric provides a tangible gauge of our efficiency and adherence to quality standards.
AR: Please discuss the average efficiency levels achieved on your shopfloor and how you tend to improve it going forward?
GS: Our production efficiency typically ranges between 60 per cent to 65 per cent, although this can vary based on factors like the scale of customer orders and the complexity of colour/style variations. Higher order volumes tend to improve efficiency by an additional three to five percent.
Regarding our technological advancements, we’ve been actively transitioning towards a more tech-savvy approach, continually updating our systems month by month. For instance, we’ve developed an in-house system aimed at reducing downtime. With this system, when a machine breakdown occurs, supervisors or floor managers can quickly report the issue by scanning a QR code and providing relevant details. This triggers an automatic message to the designated mechanic, who then has a maximum of 30 minutes to address the problem.
To monitor the effectiveness of these initiatives, we hold weekly executive meetings every Monday, where we evaluate performance based on metrics such as the percentage of work completed and timeliness. We also recognise that efficiency isn’t solely determined by machine performance. For instance, we’ve noticed instances where machines, ranging from 30 per cent to 5 per cent, remain idle due to delayed loading. These are the losses that we are try to address. They can stem from various reasons, such as delayed buyer approvals or trims not being readily available. Moving away from outdated reliance on individuals, we’re transitioning to real-time data-driven operations.
AR: What emphasis are you putting on software and hardware technology to improve productivity and efficiency?
GS: Our software arsenal includes AccuNest (Lectra), streamlining marker making processes autonomously. We use automatic cutters and spreaders from Gerber and Bullmer for precise cutting procedures. Additionally, we employ automatic machines to cut hard patterns, eliminating the need for manual methods. Regarding machinery, we have the latest models from Duerkopp Adler, PFAFF and MACPI, facilitating various tasks such as sleeve setting, automatic pocket welting, plaque making, flap pressing and lapel edge cutting.
AR: Share with us the employee engagement programs implemented within your organisation, particularly focusing on training and technical know-how development.
GS: We’ve established a dedicated team focused on training and upskilling both our existing workforce and new hires before they join the shopfloor. Each department undergoes periodic evaluations, with 10 per cent of workers randomly selected to take a short test, assessing their performance and identifying areas for improvement. We prioritise cross-training workers on multiple critical operations to mitigate the impact of absenteeism or turnover on our production lines. Our Industrial Engineering and Planning (IEP) team closely monitors individual efficiency levels and sets internal targets to enhance productivity. As the market becomes increasingly competitive, efficiency improvements are essential for managing costs amidst regular wage hikes, which occur approximately every six months. Unlike in Bangladesh, where wage increases are less frequent, we face the challenge of maintaining compliance with these hikes while remaining competitive in pricing negotiations with buyers. However, there are limitations to how much efficiency can be improved within a given timeframe, especially as technological advancements and new machinery set certain benchmarks for worker performance. This presents another significant challenge for us to navigate.
AR: What sustainability initiatives have you undertaken within your manufacturing operations and how do they align with your business goals?
GS: We have a clear strategy centred around sustainability, recognising its growing importance globally. Textile production has historically been a major contributor to unsustainable practices. To address this, we’ve undertaken several initiatives over the past six years. One significant step was the installation of solar panels covering the entire rooftop of our current factory, generating up to 30 per cent of our electricity from solar energy. Additionally, we’ve obtained Sedex (Supplier Ethical Data Exchange) certification along with Higg FSLM. Furthermore, our upcoming new factory is planned to achieve Green Platinum certification, with the necessary requirements already incorporated into the building design. While we strive to use sustainable materials like recycled polyester fabrics and buttons, customer acceptance and willingness to pay play a crucial role in our implementation efforts. Despite challenges, we continue to advocate for sustainability measures and propose them to our customers.
AR: Are there any plans to diversify your product offerings?
GS: Yes, we’re open to expanding our product range. Looking ahead, custom tailoring is a category we’re interested in exploring, along with premium half and full canvas blazers, which cater to a niche market. Additionally, government tenders for uniforms present a high-volume opportunity, ensuring consistent business throughout the year and bolstering our profit margins.
