My Experiencesin

World Market

Sunil Raithatha

• Mr Harish Baizalji • Mr. Sanjay Lodhaji• All of you.

Thanks

Goal of Presentation• To motivate Entrepreneurs to be a part

of Globalized Economy.

Why it’s IMP for You All• We are in Globalized

Economy• You can not remain Isolated • If you need to progress you

need to be a functional part of this Eco-System.

• Even if you are not Exporter.

Why it’s IMP for You All• Be a Part of Make In India.

Overview• History & Background• Entrepreneurship Bug• Training at L & T• Some initial Failures• Special Purpose machines.• Beginning of Rotational Moulding Machines• First Export• Journey & Transformation • Potential

Background• Born in middle class Gujrati Family at Jalna in 1956.

• Schooling in CTMK Gujrati School Jalna in 1972.

• Did Engineering from Govt Engineering Collage Aurangabad. Mechanical Engineering in 1977.

• Selected as GET at L&T Powai Works Mumbai.

Training & L & T• Placement in Process Development

Switchgear Assembly.• Worked till 1981.• Thanks to L&T culture & City of Mumbai• Started own Unit

Some Initial Failures • Jigs & Fixtures in Aurangabad.

Failed Partnership. 1981 to 1984

Some Initial Failures • Promoted Electromagnetic Relay

Mgf Unit. – No Success 1985-86

• Single Customer• Very Low Margin• Payment Cycle Erratic• Five Partners / Small

Turnover

Some Initial Failures • Developed Hot Water Shower.• Air Cooler Production.• Group could not develop required market &

too much of debt .

Special Purpose Machine Success • First taste of success and economic stability.

• Do What You Know the best.• Focus on Core Competency.

• Duraware , Jalna• Kabson Ind , H’bad• NRB, Jalna.• Modi Ind.,Jalna• Endurance, A’bad

Known CustomersIn and around Jalna

SPM Limitations• Tailor Made Machines.• Lot of Engineering but less reward.• No advantage of repetition, Every time

new engineering.

Focus on Rotational Moulding. • Rotational Moulding

Machine start up • Decided to standardize

on the Product.

Turning Point. • Recession in 1998-99 forced us

to look for New market.• Participated in Plastindia 2000

exhibition at• Pragati Maidan , New Delhi.• Small Stall of 3x2 mt.• Booked Stall at Rs. 48,000 with

instalments.

Eye Opening Experience • First Time realized size of Market • Realized our status • Feedback from Prospective Users.• Customer from all over the world at one

place.• Importance of Presentation.• It’s not expense It’s Long Term

Investment

Light @ the End Of Tunnel. • After struggle of more than 20 years

we saw light at the end of tunnel.

First Export Order from FIJI

First Export Order in 2001. • First Export Inquiry by Mr Jack of Fiji.• First Quote in US $.• First E Mail Account• First Export Performa Invoice• First Letter Of Credit• First encounter with Bank, refusal• First Commissioning Experience

A Satisfied customer Who is buying one machine every alternate year

First Export Order in 2001. • Story of Wood Cutter.• Same Product• Same Business

An Idea can make difference

Same College, Same Teacher & Same Students, You need to go out seek more information.

No Looking Back.

VietnamPlas

ChinaPlas

IndoPlasArgenPlas

DubaiPlas

Kazakhstan

ThaiPlas

SaudiPlas

24 National&

InternationalExhibitions

PlastIndia

Exports in 50+ Countries

Algeria

Argentina

Australia

Baharain

Belgium

Bulgeria

Cape Varde

Chile

Fiji

France

Cango

Yemen

Russia

Saudi Arabia

Ghana

Haiti

Indonesia

Ireland

Kenya

Kuwait

Lebanon

LibyaUkraine

Uruguay

Zambia

Zimbabwe

Sudan

Sultanate Of Oman

Tanzania

Thailand

Tunisia

Madgaskar

Malasiya

Malawi

Nepal

Nigeria

Qatar

258 Countries in World

• 208 Countries yet to be reached.

Z to A

• Zambia to America.

Export led Growth

98 99 2000 1 2 3 4 5 6 7 8 9 10 11 12 130

500

1000

1500

2000

2500

ExportDomestic

ExportsDomestic

Transformation by Export.• Export As tool of transformation. Not just higher profit.• It transformed our Attitude and our Organization.

Before Exports Started. • Limited Market• Local Customers• Customer could not absorb Technology• Profits very low• Credit Market with lot of bad debts• Competition form Delhi & Ahemdabad• Market Could not absorb Excise & Taxes

After Exports Started.

• Asia 550• North America 425• Europe 390• Australia 200

Growth Areas Africa & Middle East

• Vast Market Potential

Demanding Customers. • First Travelling Furnace –

demanded by Saudi Customer.

• First PLC machine with touch screen- demand by France Customer.

Handing Over Machine to Mr. Delamare by Our Mr. Naveed Ahmed

Never Say “No” attitude

Technology Up-Gradation. • PLC based machines.• Touch Screen based HMI• Software maintenance

and update by Remote Diagnostics

Started Matching International Competition

Expanded Product Range• Development based

on Customer’s need.• Customers

Participation in development.

Complete Range from 500 to 30000 lit. 24 Models

Handsome Profits. • Profits increased from Exports.• Profits increased from Domestic Business.• Could allocated Large amounts for R&D

and new machine development.• Could invest in Marketing.• Invested in Manufacturing

Infrastructure

Motivated Team. • Nothing motivates more that

foreign tour.• Work with pride.• Earn $ Pay $.• Profit Sharing Incentive Scheme.• Bright Future.• Flexible Hrs.• Child Education Scheme.

Advantage India

• Low Cost Engineering.• Low Cost Manpower.• Low Cost Erection & Commissioning.• Free of Cost Plant Engineering.• Trained Manpower Supply.• Low cost after Sales Support.• Better reputation than Chinese.• Very Large Population Working Abroad.

Historical Fact

Map Of Silk Route

Historical Fact

China

India

USA

Japan24.4%

22.3%

20.7%

Myth about Exports• Not my cup of tea, too small to export.• I do not have exportable product or service.• I need very high quality product and state of

art manufacturing technology.• I need to be fluent with English.• Export is too risky.• I am too busy serving local market.• Market Development Expenses are too high.

Conclusion• Our Fore fathers were expert in field

of International business.• We have to discover re-learn this

attitude

Thanks

Any Questions