Sector: Textiles: Garments
Client: One of India's largest manufacturers and exporters of knitted garments; sales have fallen 60-70% from peak levels and margins are down.
Promoter's Dream: To create sustained, profitable, growth by diversifying into sunrise businesses with branded products and services.
The Avenues of Opportunity Recommended by OPENMIND
Move into Branded Technical Textiles: The client has had some success in the past, manufacturing private label technical textile products for the medical market. OPENMIND MD, Mr. Richard Rothman, recommended that the client could uncover opportunities for sustained, profitable growth, by creating its own branded products in the medical sector, particularly in segments it has already identified as having strong demand and no domestic competition.
Rebuild Overseas Agent Networks: Sales have fallen largely because the client's overseas agent network has gradually withered away. OPENMIND recommended that the client should move quickly to hire qualified new agents in Europe and the U.S., and also explore opening overseas sales offices. By reinvigorating its overseas sales network, the client can dramatically increase export orders and recover a significant opportunity for sustained, profitable growth.
Become a Branded Builder: The client's family owns 200 acres of prime land outside Pune, which would eventually be ideal for real estate development. As members of the family's second generation are interested in diversifying, OPENMIND's MD, Mr. Richard Rothman recommended that they explore the opportunity to become a branded builder. By starting with small JV projects with other builders who can help them learn the business, the client can discover an opportunity for sustained, profitable growth.
Actions Taken: The client appreciated and accepted the OPENMIND recommendations and has begun to implement all of them. There has been promoter participation throughout the entire process and decision-making.
The OPENMIND Advantage
Industry: The textile industry is projected to grow at a Compounded Annual Growth Rate of 3-5% over the next five years.