Sudhakar Chowdary bullish on future prospects
The textile industry has always had this knack of attracting entrepreneurs. There have been several instances of entrepreneurs from other sectors venturing into textiles and making it big. One such remarkable growth story has been that of Mohan Spintex, headquartered in Vijayawada. From its inception about a decade ago to now being counted among the country’s largest vertically integrated textile groups is indeed a remarkable achievement.
A team from The Textile Magazine visited the manufacturing units of the company. In a freewheeling chat, Mr. Sudhakar Chowdary, the company’s Managing Director, spoke about various aspects of its working in detail, including its gradual expansion, its competitive edge and future plans.
Here are the edited excerpts of the interview:
The entry of Mr. Chowdary into the textile industry makes for interesting reading. After completing his graduation in Production Engineering, he joined his family business venture – a fertilizer distribution company. His father was taking care of the family’s other venture, i.e., tobacco cultivation.
Going further into details on his early days as a budding entrepreneur Mr. Chowdary said: “We were making a turnover of about Rs. 60 lakhs in 1992 in the fertilizer distribution business. I was actively taking care of the business till 2004. Even until 2008, I was involved in the business, although by this time my focus was more on textiles. By 2004 the fertilizer distribution company’s turnover touched Rs. 70 crores”.
Foray into textile industry
Then came the trigger for making a foray into the textile industry. Explaining what happened, Mr. Chowdary observed: “While we were doing very well in the fertilizer distribution business, it was still a trading business. And the restless entrepreneur inside me was not completely satisfied. I wanted to venture into manufacturing. In 2005 me and my colleague Mr. Ravi, were more focused on starting a venture involving steel. Things such as steel re-rolling and blast furnace were what we were looking at. However fate had destined something else for the duo. They had a chance meeting with one of their friends, Mr. Raghava Rao, who was already into the textile business.”
Adding further, Mr. Chowdary explained: “This was the time (around 2005) when policy initiatives such as excise duty abolishment had made textile business attractive. The meeting happened in March 2005 and by the end of the month we had decided to take the plunge. So on 7th April 2005, Mohan Spintex was born.”
The company’s first spinning unit with a capacity of 14,400 spindles was up and running in October 2006. The second phase with 15,600 spindles was completed by April 2008. The capacity subsequently in the second phase has increased to 30,000 spindles.
Mega project scheme
Encouraged by the market trends and response to the company’s products, Mr. Chowdary submitted another proposal to his bankers for starting a 40,000 spindle capacity unit in August 2009. “Basically I am an entrepreneur who wants to expand and grow fast. By October 2009 the proposal was okayed by the bank. Remember this was the time when the policies of the Government favored the textile industry. We started the civil work in February 2010. I then met up with a few industry experts. They told me that about the ‘Mega’ project scheme, wherein the investment would be Rs. 100 crores and above, for which the entrepreneurs will be given a two year moratorium for implementing the project. It was then that we added exclusive sections for TFOs, OE and Ginning. We then got the project approved under the ‘Mega’ project scheme.”
The expansion of Mohan Spintex has happened in a phased and planned manner, with a lot of shrewd strategy involved in the process. Delving into the efforts, Mr. Chowdary pointed out: “Right from the beginning we could sell our products, initially in the domestic and subsequently in the overseas markets. We focused on upgrading our unit I to compact spinning. Within two years we upgraded the entire 30,000 spindles to compact. By January 2012 our Unit 2 was ready with 44,064 spindles combed, 4,576 rotors of OE, 1,920 drums of TFO and 36 gins. During 2012-13 we stabilized our position. In 2013 we submitted another proposal for a unit worth Rs. 181 crores.”
Mr. Chowdary further added: “While submitting the proposal to the bank we were very clear that we will be doing the project in 2 phases. The 1st unit with Rs. 181 crores and the 2nd for Rs. 95 crores, where we wanted to have 47,424-odd compact spindles, 156 looms, about 1,696 rotors and 2,880 drums of TFO and state of the art Uster Lab.”
When asked for the reason behind the addition of looms, Mr. Chowdary explained: “I felt that until and unless you reach the end of the finished product then your total system is not complete. Moreover, you also don’t have proper control over the system. That is why the expansion into weaving and looms.”
Serious about processing
After spinning and weaving, Mr. Chowdary has other exciting expansion plans lined up for Mohan Spintex. “We are also seriously looking at processing. In weaving we are adept at both narrow and wider width weaving. Even in processing, we want to have similar expertise, i.e., in both narrow and wider width,” pointed out Mr. Chowdary offering a peek into the company’s future plans.
According to Mr. Chowdary, value addition is what marks the company off from others. Continuing further he added: “Value addition in terms of quality, consistent supply and committed delivery is what gives us the competitive edge. We have specified our quality, which is something very rare in this industry. Our consistently supply quality products. Plus we do it on time, every time. This is what separates us from the crowd.”
The company which counts several major corporates as its clients, exports close to 50% of its produce to countries including Bangladesh, Pakistan, China and Europe.
Several companies from Third World countries have been pushing their products aggressively in key global markets in recent times. Giving his take on the trend, Mr. Chowdary said: “No doubt this trend is a challenge. However, we have no control over it. What we need to ensure is to stay fit enough to face these challenges.”
Overcoming challenges
Looking back with at Mohan Spintex’s eventful journey so far, Mr. Chowdary said: “It has been a fulfilling journey, which we can look back with satisfaction. The fact that we have been able to create good employment opportunities, for instance, is something that gives us great satisfaction. We have close to 2,800 personnel on roll employed with us.”
In fact, availability and retention of workforce, which have emerged as major challenges in the textile industry, are issues that have been ably tackled at Mohan Spintex.
Elaborating on the initiatives of the company on that particular front, Mr. Chowdary stated: “Availability of adequate workforce is a challenge. We have certain quality systems and practices implemented in our manufacturing units, which while enriching the knowledge of our workforce, have also helped us retain manpower. We have also taken steps to ensure an amiable work environment. A few of our initiatives include, making availability free pick up and drop facility within a radius of about 30 km from the manufacturing units and establishment of a subsidized canteen.”
Future plans
Well thought out strategies have been key factors enabling the growth story of Mohan Spintex. Mr. Chowdary is very clear about the future growth path in which the company is headed. Going into details on the company’s future plans, Mr. Chowdary mentioned: “As mentioned earlier right now our focus is to start a processing unit and to convert my grey fabrics into finished fabrics.”
On a parting note Mr. Chowdary stated that home textiles is another area of focus for the company. Pointing out that there is excellent growth opportunities in this particular market segment, Mr. Chowdary said: “We have both wide and narrow width looms. Similarly, down the line we intend having both narrow and wider width processing. All these capabilities are going to help for a foray into home textiles. Home textiles will be definitely an area of focus for us.”
LMW’s exceptional association with Mohan Spintex
By Sanjay Jayavarthanavelu, Chairman and Managing Director, LMW
LMW is indeed proud to be associated with Mohan Spintex, a globally acclaimed supplier of quality textile products since its inception in 2005. Started as a 14,400 spindles project, Mohan Spintex today has an installed capacity of 1,20,000 spindles housed in one of the most modern spinning mills in India.
From blowroom to ring frames, Mohan Spintex makes use of state-of-the-art technology machinery supplied by LMW to manufacture products that cater to needs of the textile industry. LMW as a preferred technology partner has supplied textile machinery for all the three projects of Mohan Spintex, including the one with compact spinning system.
India being one of the few countries in the world to offer the advantage and scope for vertical integration within the textile value chain, it is important to note that the management of Mohan Spintex has had the foresight to build capabilities early enough to enable seamless manufacture of textile products.
LMW as a strategic partner of Mohan Spintex is glad to note that the company has managed to grow both in size and volumes and emerge as one of India’s leading manufacturers/exporters of textile products. Our partnership with Mohan Spintex has its foundation in our strong belief of providing our esteemed partner with quality products that ensure ultimate quality in end products. LMW shares the vision of Mohan Spintex and commits itself to enable Mohan Spintex to reach its goals.
We thank Mohan Spintex for giving us an opportunity to serve them and take part in their success story. At LMW we looks forward to many more years of mutually beneficial association with Mohan Spintex. We wish them all success in their future endeavours.
Murata’s decade-long relationship
Murata’s association with Mohan Spintex started in 2007 during their expansion of Unit 1. Thereafter, it became one of the fastest growing textile company in India. All credit goes to the dynamic leadership of Mr. V. Sudhakar Chowdhary, Managing Director.
It was great pleasure & privilege to be part of their expansions for almost one decade. They have always appreciated the state-of-the-art technologies invented by Murata and the continuous upgradation of existing machines to keep pace with the market requirements.
Suessen all praise for Mohan Spintex
By Peter Stahlecker, JMD, Spindelfabrik Suessen GmbH, Germany
When we think of rapidly expanding businesses, we think of the Silicon Valley or maybe of Bangalore or Chennai. Few of us would think about Vijayawada!
However, it is there where we find such a company, and which I have had the pleasure and the honor to be associated with Mohan Spintex!
The company was started in 2005 with 12 x 1,200 spindles. Within the short span of only 10 years, it grew to over 125,000 spindles, over 6,000 rotors and over 125 air jet looms! This surely rivals the growth of many high-tech firms, and it proves the validity of the old saying:
It does not matter what is made – it matters who makes it!
I have had the pleasure of meeting Mr. Chowdary, the visionary MD of Mohan Spintex, on several occasions. He is very polite, soft spoken and extremely well informed about any subject related to his industry. If you want to be successful with him, you better had all your facts together. I experienced him as a firm, but very fair negotiator.
No man is an island, as the saying goes, and surely Mr. Chowdary is supported by a very capable staff – but he is the engine, let there be no doubt about it!
The mills are extremely clean, equipped with state-of-the-art equipment. We at Suessen are proud that our EliTe is the compact spinning equipment of choice for Mohan Spintex, with over 55,000 EliTe Spindles running there.
At ITME in Mumbai, I personally had the great pleasure to hand over the 10 millionth EliTe Spindle to Mr. Chowdary. Frankly, I cannot imagine a more fitting recipient!
Everybody at Suessen, particularly myself and our Agent Venus Textiles Systems, wish Mohan Spintex and his leader many more years of growth and success – which I am sure will happen!
By K. Gopalakrishnan & M.K. Prabhakar