Interview with Brandyn Prust, Vice President – Sales, DS-Concept
The apparel industry in India is viewed as a riskier market for traditional banks. Availability of finance has been an issue and textile industry has always been cash-strapped. Considering the significant increase in textile exports and identifying an opportunity, DS-Concept offers tailor-made solutions for the entire supply chain from financing raw materials, 100% credit guarantees, collection services, and financing against FOB shipping documents. The company entered the Indian market recently and has met with good success.
In an interview to The Textile Magazine, Mr. Brandyn Prust, Vice President – Sales, DS-Concept says that India is a crucial market for the future of DS-Concept.
Can we start with a brief background of DS-Concept?
DS-Concept was established in 2000 by Dr. Dieter Spickermann, an economist, and Mr. Ansgar Hütten, an attorney. In 2000, there was a financial crisis in Turkey similar to the world crisis of 2008. There was a lack of liquidity bothering many Turkish garment manufacturers. This offered a good opportunity, and the first two offices were established, one in Turkey to support the exporters, and the other in Germany to back up credit and collection efforts.
What are the solutions offered by DS and who are your target customers?
DS-Concept is a traditional non-recourse factoring company specializing in cross-border transactions. We offer trade finance and supply chain financing for exporters around the globe. Our target clients are exporters from around the world selling their products to North America, Europe, GCC and to countries in other regions. Our clients range in size from $10 MM to companies with over $150 MM in export volume.
Which are the major industries and markets worldwide for DS?
The apparel industry is in our DNA. However, we cater to many other industries, including but not limited to, auto parts, food and beverage products, electronics and general consumer goods.
Is the textile industry an important vertical for DS?
We started in the apparel industry and know it very well. Because of our global presence we can offer tailor-made solutions for the entire supply chain, right from financing raw materials, 100% credit guarantees, collection services, and financing against FOB shipping documents.
How important is the Indian market for DS?
The Indian market is crucial for DS-Concept. The apparel industry in India is viewed as a riskier market for traditional banks. We entered the market last year and have been successful in financing the underserved market with very competitive rates.
How important is the textile industry from an Indian market perspective?
Selling is sometimes the easiest part of the textile industry. Collecting is a different story altogether. It is important to know your customers well. It is sometimes an awkward situation for an Indian exporter to ask for the customers’ financials, because DS-Concept is offering a 100 per cent non-recourse product. It’s our responsibility to obtain this financial information to assure our clients that they are selling to a financially sound customer.
What are the specific services you are offering for Indian exporters?
DS-Concept services a number of mid-sized Indian exporters in the textile / apparel industry. We have a large client in Bangalore and a few other mid-sized exporters scattered throughout the country. An ideal client for DS-Concept would be a manufacturer exporting at least $10 MM in annual volume which he would look to factor with us.
Why should an Indian textile exporter opt for your services?
DS-Concept has many attributes which give us an advantage over our competitors. The first and most important is knowledge, DS-Concept’s motto is “Intelligent Trade Finance”. Our global presence enables us to easily feel the pulse of the markets around the globe. We only do what we know well and we do it very well. Our 11 offices and affiliates work as a team to share market intelligence, help with the credit and underwriting, and to ensure prompt payments from our clients’ customers. Our cost of funds is such that we can offer competitive rates to exporters which may be much lower than other alternatives as well.
Do you see India as a key growth market for the future?
I see India not only as a key element, but a crucial element for the future of DS-Concept. There are so many opportunities which cannot be addressed solely by local funding sources.
What are the future growth plans for DS globally and what other services do you plan to add to your existing bouquets of services?
We have major plans for the future of DS-Concept and have a marketing team dedicated to educating the marketplace on our strategies, alliances and products as they’re ready to be taken public.