Mr. Radhakrishnan, Managing Director of the SKAAT Group, embodies the true spirit of entrepreneurship which Coimbatore is known for. He started his textile machinery business in 1994 and subsequently ventured into manufacturing of machines for fancy yarns. The group has now embarked on major expansion and diversification across a few industry verticals like renewable energy, medical, food and beverage industry.
According to Mr. Radhakrishnan, SKAAT’s first major diversification has been into the area of renewable energy. It entered into a joint venture agreement with FVG of Italy for setting up solar power projects. The company will handle most of the Asian markets as part of the JV. In fact, one of the first major projects which the JV will execute is a 6 mw one in Indonesia which is part of a 200 mw project funded by the Government.
Solar power is increasingly becoming popular in many countries, particularly in India. Being the initial years, we do have many organized and unorganized players in this segment. Indonesia as a market was one of the early users of solar power but the customers and the government has gone through the challenges of using cheap quality solar panels imported from China and now they are moving to high quality European solutions. This is SKAAT’s JV with FVG is confident of gaining more such projects in the future.
Solar power projects are gaining momentum in India as well but we are going through a learning curve. Companies are trying out various options, but price is still the main criteria driving investment decisions. SKAAT is trying to educate customers on the need to invest in the right technology for the long term. This will take some time but we are confident that we will be able to make good progress in the years to come.
SKAAT is also planning to set up a manufacturing facility in India for solar panels by 2017. The JV partner FVG also specializes in Bio mass plants, which SKAAT will be offering to customers in India.
The second important diversification is in the medical field where the company has set up a manufacturing facility for CHIP and BLOOD SCANER which are used in glucometer. This is an OEM business and SKAAT supplies these components to an American company, catering to their complete requirement. The third major diversification is packaged water business. This is a highly competitive business, but SKAAT is primarily focusing on the export markets mainly to a few Asian and Middle East countries.
On the company’s core business which is attachments for fancy yarns, SKAAT continues to grow consistently through introduction of new products and technologies which are advanced and cost effective. The company has recently launched a new color injection system for dual color on single yarn. This has received good response in the market.
SKAAT is continuously developing sophisticated equipments to match the new technology high speed machines. The company has so far sold more than 900 slub and core yarn attachments within India and all over the world. We are investing a lot on R&D and continue to offer differentiated solution to match customer demand, adds Mr. Radhakrishnan.
Mr. Radhakrishnan is willing to explore any industry where there is business opportunity. But, with the three new diversifications underway, he is focusing on getting each of these projects streamlined at the earliest. With his rich background, one can expect a lot more from this young, highly-talented entrepreneur.