Warsaw International is yet another famed enterprise that Tiruppur is known for. The company, established in 1989, is one of the leading exporters of a variety of garments like men’s wear, ladies wear and kids wear as part of its product portfolio.
A brainchild of Mr. Raja M. Shanmugam, Warsaw International caters to clients in Germany, Belgium, France and Canada. Together with its sister concern, Alpine Knits India Pvt. Ltd., which supplies industrial sewing machines, button hole machines and stitching machines, it has grown from strength to strength.
In an exclusive chat with The Textile Magazine, Mr. Raja Shanmugam gave detailed insights into the company’s growth strategy, the general business atmosphere in Tiruppur and what the future holds for the city’s exporters.
A first generation entrepreneur hailing from an agrarian family, Mr. Shanmugam entered the textile export business in 1989 by establishing Warsaw International. Recollecting his early days, he said: “At that time Tiruppur was not even a taluka or a subdivision of a district. But, thanks to the collective efforts of all the entrepreneurs, today it is a globally known city.”
The reason for Mr. Shanmugam choosing the name “Warsaw International” is simply strange. While preparing for his civil services examination, historical happenings centered around the “Warsaw Pact”. This made a deep impression in his mind and prompted him to choose the name later when he became an entrepreneur.
Warsaw International and Alpine Knits India together have a staff strength of 1,200. A wide variety of imported machinery, including top brand names such as Pegaus, Orizo, Lamberti and LMW, are being used in the manufacturing process. “Though with a humble beginning, we have been growing steadily. We started off with just 6 machines in 1989. Today we have around 800 machines working in our establishment,” said Mr. Shanmugam, going into details about the rise of Warsaw as a well-known exporter from Tiruppur.
Renewable energy initiatives
Mr. Raja Shanmugam is considered one of the trend-setters when it comes to utilization of renewable energy. Alpine Knits India has won the prestigious ‘Inter Solar Award 2013’ for its innovative, 1 MW rooftop solar plant which has been installed on the sloping roof of the factory premises.
Mr. Shanmugam is also Chairman of Apex Clothing Company, a joint venture formed by merging seven textile units in Tiruppur towards setting up of a captive 20 mw solar power plant.
Betterment of the lot of exporters and the overall development of Tiruppur have always been subjects close to the heart of Mr. Shanmugam right from the time he entered the industry. He said: “Tiruppur is unique for another reason. It is perhaps the only textile cluster where there is total unity among entrepreneurs. While we may be business rivals, we remain unified when it comes to collective efforts. This kind of ethical rivalry is hard to find elsewhere. This is one of the reasons for the phenomenal growth of exports from the cluster.”
The ability to share and discuss issues is one of the reasons why Tiruppur entrepreneurs are quick to adapt to the changing trends. “Sharing of information related to technology is commonplace here. Similarly, we openly discuss the latest global trends and try to follow them, thereby always maintaining our competitive edge,” he added.
This passion for the trade has enabled Mr. Shanmugam to attain key positions in industry associations. He served as the Founder-Chairman of CII (Tiruppur District Council) during 2014-15. Citing the work done by CII towards development of Tiruppur, he said: “We have come together under the umbrella of CII and chalked out a clear growth path for the district under the ‘Tiruppur First 2020’ vision document prepared by us. The document, prepared in collaboration with the reputed consultancy firm Grant Thornton, focuses on the initiatives that will facilitate the growth of the Tiruppur Knitwear Cluster turnover to Rs. 1,00,000 crores by 2020.”
Mr. Shanmugam served as the Vice-Chairman of NIFT-TEA in 2003. Subsequently he served as the Chairman of NIFT-TEA during 2007-2013.
The Chairperson of the Tiruppur Exporters Association (TEA) Banking and Finance Committee during 2003-06, he has also been a member of the Cotton Advisory Board for two years from 2011. He has additionally served as the President of the Forex Derivatives Consumer Forum and is also the Founder-Trustee of the Sripuram Trust, an industry body consisting of representatives from the textile sector.
Challenges facing exporters
The hosiery industry in Tiruppur is growing rapidly. However, there are quite a few challenges to be met. Primary among them is labour shortage. Mr. Raja Shanmugam said: “Affordable housing for the migrant work force that comes into Tiruppur remains an issue of concern. High rent rates often act as a deterrent for migrant workmen. We, at the CII have highlighted the issue and offered suggestions for solving it as part of the ‘Tiruppur First 2020’ vision document that we have submitted to the State Government.”
He felt it is time that entrepreneurs in Tiruppur took to technical textiles in a big way since the future lies in this particular market segment. Tiruppur is of course the undisputed hosiery capital of the country, contributing about 60 per cent of hosiery exports from India, and the diversification will only add to the city’s brand equity.
Further, e-commerce is emerging as a game-changer in the textile industry, and entrepreneurs in Tiruppur should have to embrace the technology as it will open up several growth opportunities, both in the domestic and overseas markets.
He also stressed the need for developing the NIFT-TEA Knitwear Institute into a holistic research centre.
As for his plans for Warsaw International, Mr. Raja Shanmugam is planning an exclusive residential township – ‘Warsaw City’ – on the outskirts of Tiruppur for the company workforce. Work on the project is expected to start soon.