Profile of Mr. Bhavin Parikh, CEO, Globe Textiles (India) Ltd
Bhavin Parikh, Chief Executive Officer at Globe Textiles (India) Ltd., is in-charge of chalking out financial and business strategies for the company. His ease with numbers and balance sheets has been one of the reasons behind leapfrogging revenues year-on-year registered in the books of Globe Textiles. He has driven consistent profitability and growth, with an eye on changing business horizons.
A graduate from the Swinburne University of Technology, Australia, with a Bachelors Degree in Finance and Marketing, Bhavin started his career at Adani Group, spending a year there. He later joined Globe Textiles in 2001 at a time the company was forging ahead with growth plans.
Patient, analytical and experimental, Bhavin’s steady climb on the ladders of business however, came about in a series of trials and errors which taught him to assess carefully and sieve the best bargain. Bhavin has always been upfront about the mistakes committed, and never shy to admit, even when his plans to acquire a processing house in Ahmedabad to benefit Globe Textiles went awry. That did not leave a dent to his spirit. Rather he turned the tides and went on to achieve newer milestones then on. Expanding into new products, visions and markets have been a daily routine while making sure there is a consistent improvement in products and existing customer services.
It is perhaps this attitude to test new waters where opportunities hold, that has ignited in him an interest in the world of start-ups. The glitches involved, the first hiccups and finally a solved jigsaw before a business innovation finally takes off, excites him no end and are territories he is familiar with, the reason why Bhavin wears many hats at a go.
He is the founder and trustee of Gujarat Innovation Society, a NGO that pledges to think big and act different. The tenure has led him to imbibe the spirit to never follow a herd. He is a member of a non-governmental organization named “Wake Up To Dreams” that teaches to fuel a psychological jolt to realize and fulfill dreams successfully. He is also associated with Jain International Youth Organization that seeks to empower the youth and make them the catalyst of change. He is an advisor on board Hrishee Strategic Advisors based in Ahmedabad as well.
Bhavin is the co-founder of FundTonic, an Angel investment platform that handholds and supports start-ups who hold promise by providing co-working space, accelerator programs, mentoring and helps secure funding. He is currently nurturing two—one that aims to make technical, innovative papers lasting nearly 300 years and the other that wishes to navigate through the complex world of digital data analytics. Bhavin’s task on hand is to fortify the ideas well, strategize their business plan and action, reach the market at large profitably and help start-ups to reach their goal.
The tenets of his personality transcends into his personal life as well. A Harley owner and an avid risk taker, Bhavin undertook a group bike ride to the treacherous terrain of Spiti Valley in 2015, a course less taken. The target set was met.
He is a singer at heart, Bhavin wants to test his agility in kick-boxing next and his multi-facets in a way replicate the time-tested mettle that Globe Textiles (India) Ltd. has so long, continued to hold dear in a world dotted with competition and changing leaders. Bhavin’s competition is not beyond but within and at every bend, has emerged a man better than what was last seen.
Globe Textiles has indeed benefited from his energy and is already eyeing a listing to extract more value and build a lasting brand for the future to savour.
1. What all Challenges / Hardship you faced during the journey?
Globe Textiles formally began its operations in 2008. Initially, while we were getting into Textiles, we faced difficulties like inadequate trained and skilled manpower in different fields, structural imbalances that hindered supply to international markets, and other constraints including new product developments, time etc.
2. What are your Achievements till date?
Our biggest achievement is our satisfied clientele, who have remained with us from beginning till now. This is due to Globe’s operational structure that has a very customer centric approach. Despite hindrances, we have been able to quickly enter newer markets and venture into new products, which is a result of efficient market research. Our understanding and grasp on the customer preferences has really helped us in expanding our capacities in Ahmedabad, the Manchester of Textile. Recently we also received an “A” Grade in BSCI certification for our ‘Home Textile vertical’.
3. Segment :
GTIL has a diverse product range comprising Home Textiles, Printed Fabrics, Denims and Garments are well- entrenched to fortify the company’s penchant to serve the best in its class.
4. What motivated you to focus on Denim Garments?
In terms of focus, we have a balanced approach across all verticals: Be it Denim Jeans, Suiting & Shirting, Printed Fabrics or Home Textiles. We are especially good in Denim Jeans and Printed Fabrics. We are well versed of heterogeneity in consumer needs for this product, its evolution, designing methods and technologies and the market for it.
We do want to widen every vertical and believe in the fact every product that begins its journey from GTIL should set a benchmark at every stage.
5. In India, in which clusters do you focus on?
We began with concentrating on the North and West textile market. We are going to expand the horizon to make Globe Textiles a nationwide brand, by 2020.
6. In which countries/continents do you focus on for exports? What are the reasons behind this choice?
South East Asia and the Gulf are our primary markets for sarongs. For other products, we have penetrated into Europe. For next one year, we will be focussing on the US market which we have been eyeing for long, as there is huge potential in North America. We have also received a positive feedback from our clients based in these counties regarding our value proposition.
7. Your company manufactures a very wide range of products. What has been your approach towards product innovation?
We have a dedicated team of R&D resources for the better development of techniques in operations. We have a very flexible team, with a proactive approach towards customers’ demands. Our work allows permeability towards new concepts and ideas, which is a huge factor in our customer upscale graph.
8. How has your company kept pace with the technological upgradation over the years?
Technological upgradation is a must in this industry. Keeping pace with the latest changes in technology enhances keeping tab on trends worldwide and helps us expand our own production capacity leading to enhanced customer satisfaction. We keep an eye on changes in technologies and latest trends. In fact, we have the most up-to-date and sustainable machinery to remain relevant in these changing times of the world.
9. What has been the impact of GST on your business?
The implementation of the Goods and Services Tax was a much awaited reform, which has brought uniformity to the tax structure in the country. The policy indeed will be written as a landmark development in the country and we see positive impact in the long run in every industry.
10. What are the current issues being faced by your segment? Do you have any suggestions for improvement?
Inadequate skill sets results in inferiority quality in most cases. Ineptness looms large and for the local workers, it is hard to compete, especially when regulations are fast changing and the industry faces reduced margins. Expertise can’t be achieved by spreading too thin.
There is no room for complacency, errors and stagnation. Our team at Globe Textiles has focused on continuous research to develop innovative products. Designs we create are exquisite and a class apart. Our market reach is well penetrated across. Our clients and vendors are equally attached with us because we push the farthest to deliver the best. We take pride in enhancing the overall experience of our customers, allowing them ample
scope to differentiate between us and other industry peers. For us, automation is the key and we have the best infrastructure in place to take care of evolving realities.
11. What is your take on the future scenario of your segment in the domestic as well as global market?
The current size of the textile market in India is an estimated USD 120 billion. The market is seeing a CAGR of 25 per cent each year. According to India Brand Equity Foundation, the total market size is expected to touch USD 220 billion in 3—4 years. The road ahead looks promising, backed by strong domestic consumption as well as export demand.
12. Vision for reaching for next level i.e. Future plan for next 5 and 10 years?
In the immediate future, we plans to add an in-house, state-of-the-art washing unit. The objective is to completely revamp the entire garment section and take it to the next level. The unit will be a one- of- a- kind and specialized one, competent to serve the biggest brands in the fashion industry. The unit will be designed around fashion, based on ethos of churning out exciting trends every day. The company is also inching its way closer to attaining a Worldwide Responsible Accredited Production (WRAP) certification for its units. WRAP is an indicator of corporate that promotes safe, lawful, humane and ethical manufacturing around the world through education.
13. Branding Strategies in Indian and International Market?
As we see, Indian market has large scope and vision to grow in terms of Research & Development. But we are very slow paced in understanding consumer behavior towards the fashion n trends in comparison to international markets. We do have an approach to fashion and trends but not savvy to something altogether new or risky. Our attitude towards the fashion is like secondary visionary i.e. we are not pro active to cater something entirely new or innovative. We wait to have the same to originate and get adopted from other country. So we can say that Indian market is like fashion followers in an international market but not fashion establisher.
Profile of Company
Globe Textiles India Ltd. (GTIL), an ISO 9001:2008 is a leading Indian manufacturer and a Star Export House of textiles, fabrics and garments based in Ahmedabad. The company started operations in 2008.
The key differentiator that marked its entry into the international denim market was that it chose to go against the tide. It began exporting denim fabrics to China and Hong Kong at a time when Chinese imports into India dominated the scenario.
The masterstroke right at the beginning of what was to become a longstanding journey, came through years of research, delving deep into fabric texture and feel, studying fashion trends and demands of the market and assessing self-preparedness to meet client expectations.
Globe Textiles is also Oeko-Tex certified and all its production facilities have been set up in an environmentally-friendly manner. Led by the deft hands of the members of the management— Bhavik Parikh, Bhavin Parikh and Nilay Vora — it has emerged as a leading manufacturer to some of the best known national and international brands as a consistent partner with zero rejections. Loyalty to oneself, a self-enterprising nature ingrained in the company DNA and a long term vision for future growth have assured consistent success.
A Time-Tested Journey to Growth
There has been no looking back. Dyed and printed fabrics right in the initial days helped the company clock revenues of approximately Rs. 94 million. For five financial years, from 2011-12 to 2015-16, GTIL recorded a consecutive rise in compounded annual growth rate (CAGR) of 30% with stellar growth numbers, well complemented by the company’s performance overseas and at home. GTIL crossed a cumulative turnover of Rs. 500 million in 2010—11 and recorded a 100% growth over this, doubling the number in just 2 years. In 2015-16, the total revenue figure strengthened to Rs. 1833 million.
All this translated into not only an encouraging growth rate but also a fast expanding customer base. Between 2008 and 2013, exports dominated the larger pie of operations. GTIL is still one of the most popular exporters of sarongs.
Despite all the glory, the members of the management have stuck to a philosophy of learning forever and have shunned complacency. Having understood the customers’ need to change with the times, GTIL has devised customer-centric strategies. Ethics, eco-friendliness, service orientation, reduced dependency on resources and being system driven are policies guiding the day-to-day operations in the company.
Efforts and a target-driven team speak of themselves. It is not just about being a quality manufacturer and supplier. GTIL sets industrial benchmarks and is a hub of innovation. It is a source of inspiration to anyone willing to delve into the dynamics of the textile trade and is a trusted source of learning for those with an interest in fashion and style.
Charting the Way Forward to Achieve Creative Success
GTIL is bullish about self-growth. Sales numbers are however, not critical. It is about being infrastructure ready to meet a surge in demand. In tandem with this thought, it has laid down an elaborate capital expenditure plan of Rs. 550 million for the year ahead. This will be invested phase-wise to install modern, cutting-edge, industry-first technology, machines and acquire talent to build a future ready foundation.
For GTIL, competition is within and the aim is to push barriers each day to earn sustainable customer relations and build new products through innovation.
The company dreams big. It is perhaps one of the few companies who aimed to go public within a relatively shorter time of operations with confidence. The aim behind ‘going public’ was to generate brand awareness, pool in crucial equity to aid future expansions and extract the best value out of the company. This is expected to happen within 2017—18.
Manufacturing Meets Market Dynamics
GTIL operates a futuristic manufacturing facility of sheer production brilliance dedicated to garmenting for international customers in an Apparel Park. Cumulatively, the company has its production capacity sprawled over 3.5 lakh sq. feet housing various divisions. Together, it manufactures 2 million bed sets, 36 million meters of fabric and 2.5 million bottoms per annum. It has over 1200 workers and a team of over 100 staff members on board cumulatively.
In 2017, it will embark on journey to start its own state-of-the-art washing unit with a motive to revamp the entire garmenting section and take it to the next level. The unit will be one of its kind, specialized and capable enough to serve the biggest brands of the fashion industry. The unit will be modeled on fashion centricity and the philosophy will be to not just wash but churn out newer fashion trends every day. The company is inching its way closer to attaining a Worldwide Responsible Accredited Production (WRAP) certification or an equivalent certification for its units, which is a benchmark to promote safe, lawful, humane and ethical manufacturing around the world through education. Once clinched in 2017, GTIL will be among the very few textile houses to bag this honor.
Machineries are purchased from Japan and Turkey, all customized in a manner that they stay relevant for a long period. These reduce human intervention and add speed to production. All workers undergo a rigorous training program before initiating work. Quality control is of essence. More than Rs. 200 million has been so far invested in machines and technology in the Apparel Park.
Having met business aspirations overseas, GTIL has now stepped into the interiors of the domestic market. A diverse product range comprising Home Textiles, Printed Fabrics, Denims and Garments is well- entrenched to fortify the company’s penchant to serve the best in class.
GTIL boasts of an exhaustive list of companies it has served. These include Being Human, The Bombay Dyeing & Mfg. Co. Ltd., Pepe Jeans, Splash, Amtex, Fox Home, Vogue International, Winfat, Heather Martin, Indian Trading Co., Vasco International Ltd. Part, Red Tape, Ventura, Ashima Ltd, Shufersal Ltd., Megastar Apparels Ltd., Vivaa Tradecom Pvt. Ltd. among many others.
Online is Exciting
E-commerce is not unknown to GTIL. What started off as just a test phase to market surplus products online on third party platforms were instantly lapped up. Brands such as AFFORD, INDIGEN and INDIEGIRL found avid takers. The company is now putting plans in place to rejuvenate the company-owned Globe E-shop through a round of aggressive and targeted digital marketing.
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