An ExporterFrom Jalna.

“Vinodrai Engineers”Date: 15 Dec 2010.

Sunil Raithatha

• I thank MACCIA , its president Shri Mansingh Pawar and members for giving me an opportunity to share my experiences and thoughts with you.• I also thank all of you for attending this meeting

Goal Of Presentation

To share experience as An Exporter from

A Small Town.

Jalna

History & Background Personal.

• 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.

Trainee Engineer at L&T • Selected by Larsen & Toubro Limited Mumbai as trainee engineer worked for four years. Left in 1981.

Thanks to L&T city of Mumbai.• Started my own unit with partners.

Some Initial Failures

• Jigs & Fixtures in Aurangabad.

Failed Partnership.1981-1984• Promoted Electromagnetic Relay Mgf Unit. – No Success• Promoted Water Geyser and Air Cooler Unit –No Success. • Started independent manufacturing of

Special Purpose Machines. 1993-94.

• Support of family & friends very crucial

1981To1993

Special Purpose Machine Success

• First taste of success and economic stability.

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

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

Known CustomersIn and around Jalna

SPM

• Limitations of SPM Business.

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

time new engineering.

Need for StandardizationLooking for Stable business

model

Focus on Rotational Moulding.

• Rotational Moulding Machine start up • Decided to standardize on the Product.

Turning Point.

. • Participated in Plastindia 2000 exhibition at

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

installments.

• Recession in 1998-99 forced us to look for

New market.

Light at 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

Mr. Jack & Mr Deshpande

A Satisfied customer Who is buying one machine every alternate year

No Looking Back.

• Started Participating in Exhibitions.• Plastivision 2001 , Plastindia 2003, Arabplast 2009

Chinaplas 2009 , Argneplas 2010, Plastivision 2004, Plastindia 2006

Export Worldwide.

Algeria

Argentina

Australia

Baharain

Belgium

Bulgeria

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

Nigeria

Qatar

Z to A.

Zambia

America

Everyone Pays $

Export Growth.

98 99 2000 1 2 3 4 5 6 7 8 9 20100

100

200

300

400

500

600

700

800

900

ExportDomestic

Exports

Domestic

In L

ac R

s.

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. • Vast Market Potential

Rotomolders Around the World.

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

Growth Areas Africa & Middle East

Demanding Customers.

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

• First Travelling Furnace – demanded by Saudi Customer.

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

Never Say “No” attitude

Technology Upgradation.

• PLC based machines.

• Touch Screen based HMI

• Software maintenance and update by Remote Diagnostics

Started Matching International Competition

Model to Suit Every Customer.

Complete Range from 500 to 30000 lit. 24 Models

Handsome Profits.

• Profits increased from Export Business.• Profits increased from Domestic Business.• Could allocated Large amounts for R&D and new machine development.• Could invest in Marketing.• Invested in Manufacturing Infrastructure

Improved Cash Flow.

• Banks started supporting.• Access to Low interest Packing Credit• Now getting advances from Customers• Excellent Supplier Credit

Healthy Competition.

• Competition with International Products. Italian Companies.• Competition to upgrade product and service. Not just reducing prices.• Competition to retain valuable customers.

Our Competitive Strengths. Low Engineering & Commissioning , Supply of Labour.

Excise Vat & Drawback. • No Excise & No VAT

• Less headache• Pease of Mind• 100 % business in books.• 1.5 % Duty Draw Back.• Excise & Vat refunds on Inputs.

• Focus on Market Development, Product and Manpower Development

Motivated Team. • With our first Export order……..

• Nothing motivates more that foreign tour.• Work with pride.• Earn $ Pay $.• Profit Sharing Incentive Scheme. Bright Future.

After Exports Started. • Motivated & Supporting Suppliers & Vendors.

• Very good support in form of Supplier Credits.• Improved Quality.• Our bank borrowing is less than supplier credit.• Supported vendors by finance for buying Machines.

Conclusion. • Reasons of Success

• Do what you know best.• Focus on core competence.• Extend Market & Product Range Globally.• Participation in Exhibitions.• Never Say No Attitude for new development.• Listen to Customer.• Give best to customer.• Exploit your strengths.

Transformation Because of Exports

What we should do for SSIto become Export Savvy.

• Most of SSI in China became Large Scale Unit by Exporting.

• Bank’s attitude towards export financing.• Implementation of GST at earliest, provision for immediate refunds.• Simplification of Excise Procedures.

Empty Container Inspection, Power to open 10% packed items, Proof Of Export Simplification. •

Thanks. • I once again thank Chamber for giving me opportunity to interact with you.

• I thank you all for giving me patient hearing.

Any Questionsor Your Suggestions.