This document provides an overview of Sunil Raithatha's experience transitioning his business from focusing solely on the domestic Indian market to becoming an exporter. Some key points:
- Raithatha started various small businesses in India in the 1980s that initially failed before finding success making special purpose machines.
- A turning point came in 2001 when he received his first export order from Fiji, which opened the door to expanding internationally.
- Since then, exports have transformed his business and team, increasing profits, motivating employees, and allowing for technology upgrades and new product development.
- Raithatha believes India's low costs and large skilled workforce give it advantages in manufacturing for export. He encourages other
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A to z export pune conference pawan group
1. Export
“Z to A” Approach
Sunil Raithatha 4Sunil Raithatha 4thth
May 2019May 2019
2. • I thank Pawan Group.I thank Pawan Group.
• I also thank all of you.I also thank all of you.
Thanks
3. Goal of Presentation
• To motivate You to be a part of GlobalizedTo motivate You to be a part of Globalized
Economy.Economy.
4. Why it’s IMP for You All
• We are in GlobalizedWe are in Globalized
EconomyEconomy
• You can not remainYou can not remain
Isolated from GlobalIsolated from Global
Economy.Economy.
5. Why it’s IMP for You All
• Be a Part of Make In India.Be a Part of Make In India.
MAKE IN AKOLA
6. Your Opinion
• Please raise hand if you are notPlease raise hand if you are not
satisfied with your Profit Margins.satisfied with your Profit Margins.
• Please raise hands if do not want toPlease raise hands if do not want to
increase your profits.increase your profits.
8. Overview
• About VinodraiAbout Vinodrai
• Why Export.Why Export.
• Ancient Tradition.Ancient Tradition.
• Some Myth About Export.Some Myth About Export.
• Participating in Exhibition.Participating in Exhibition.
• Use of Technology.Use of Technology.
• Breaking Borders.Breaking Borders.
9. Background
• Born in middle class Gujrati Family at Jalna in 1956.Born in middle class Gujrati Family at Jalna in 1956.
• Schooling in CTMK Gujrati School Jalna in 1972.Schooling in CTMK Gujrati School Jalna in 1972.
• Did Engineering from Govt Engineering CollageDid Engineering from Govt Engineering Collage
Aurangabad. Mechanical Engineering in 1977.Aurangabad. Mechanical Engineering in 1977.
• Selected as GET at L&T Powai Works Mumbai.Selected as GET at L&T Powai Works Mumbai.
02:48 PM
10. Training & L & T
• Placement in Process DevelopmentPlacement in Process Development
Switchgear Assembly.Switchgear Assembly.
• Worked till 1981.Worked till 1981.
• Thanks to L&T cultureThanks to L&T culture
& City of Mumbai& City of Mumbai
• Started own UnitStarted own Unit
02:48 PM
11. Some Initial Failures
• Jigs & Fixtures in Aurangabad. FailedJigs & Fixtures in Aurangabad. Failed
Partnership. 1981 to 1984Partnership. 1981 to 1984
Did well in market but
Could not Scale It up.
Bounty not sufficient for 3 partner
02:48 PM
12. Some Initial Failures
• Promoted Electromagnetic Relay MgfPromoted Electromagnetic Relay Mgf
Unit. – No Success 1985-86Unit. – No Success 1985-86
• Single CustomerSingle Customer
• Very Low MarginVery Low Margin
• Payment Cycle ErraticPayment Cycle Erratic
• Quality Issues.Quality Issues.
• Five Partners / SmallFive Partners / Small
TurnoverTurnover
02:48 PM
13. Some Initial Failures
• Developed Hot Water Shower.Developed Hot Water Shower.
• Air Cooler Production.Air Cooler Production.
• Group could not develop required market &Group could not develop required market &
too much of debt .too much of debt .
02:48 PM
14. Some Initial Failures
• Walked Away from the partnership and backWalked Away from the partnership and back
to Zero.to Zero.
• Strength of Family and Friends veryStrength of Family and Friends very
important.important.
• Asset of Engineering Knowledge.Asset of Engineering Knowledge.
• Started Making Special Purpose MachineStarted Making Special Purpose Machine
02:48 PM
15. Special Purpose Machine Success
• Do What You Know the best.
• Focus on Core Competency.
• Duraware , Jalna
• Kabson Ind , H’bad
• NRB, Jalna.
• Modi Ind.,Jalna
• Endurance, A’bad
Known Customers
In and around Jalna
02:48 PM
19. Light @ the End Of Tunnel.
• After struggle of more than 20 years
we saw light at the end of tunnel.
First Export Order from FIJI
02:48 PM
20. First Export Order in 2001.
• First Export Inquiry by Mr Jack of Fiji.First Export Inquiry by Mr Jack of Fiji.
• First Quote in US $.First Quote in US $.
• First E Mail AccountFirst E Mail Account
• First Export Performa InvoiceFirst Export Performa Invoice
• First Letter Of CreditFirst Letter Of Credit
• First encounter with Bank, refusalFirst encounter with Bank, refusal
• First Commissioning ExperienceFirst Commissioning Experience
A Satisfied customer Who is buying one machine every
alternate year02:48 PM
21. First Export Order in 2001.
• Story of Wood Cutter.Story of Wood Cutter.
• Same ProductSame Product
• Same BusinessSame Business
An Idea can make difference
02:48 PM
26. Transformation by Export.
• Export As tool of transformation.Export As tool of transformation.
Not just higher profit.Not just higher profit.
• It transformed our Attitude and our Organization.It transformed our Attitude and our Organization.
27. Before Exports Started.
• Limited MarketLimited Market
• Local CustomersLocal Customers
• Customer could not absorb TechnologyCustomer could not absorb Technology
• Profits very lowProfits very low
• Credit Market with lot of bad debtsCredit Market with lot of bad debts
• Competition form Delhi & AhemdabadCompetition form Delhi & Ahemdabad
• Market Could not absorb Excise & TaxesMarket Could not absorb Excise & Taxes
28. After Exports Started.
• Asia 550Asia 550
• North America 425North America 425
• Europe 390Europe 390
• Australia 200Australia 200
Growth Areas Africa & Middle
East
Growth Areas Africa & Middle
East
29. Demanding Customers.
• First Travelling Furnace –First Travelling Furnace –
demanded by Saudidemanded by Saudi
Customer.Customer.
• First PLC machine withFirst PLC machine with
touch screen- demand bytouch screen- demand by
France Customer.France Customer.
Handing Over Machine to Mr. Delamare
by Our Mr. Naveed Ahmed
Never Say “No” attitude
30. Technology Up-Gradation.
• PLC based machines.PLC based machines.
• Touch Screen based HMITouch Screen based HMI
• Software maintenanceSoftware maintenance
and update by Remoteand update by Remote
DiagnosticsDiagnostics
Started Matching International
Competition
31. Expanded Product Range
• Development based onDevelopment based on
Customer’s need.Customer’s need.
• Customers ParticipationCustomers Participation
in development.in development.
Complete Range from 500 to
30000 lit. 24 Models
32. Handsome Profits.
• Profits increased from Exports.Profits increased from Exports.
• Profits increased from DomesticProfits increased from Domestic
Business.Business.
• Could allocated Large amounts for R&DCould allocated Large amounts for R&D
and new machine development.and new machine development.
• Could invest in Marketing.Could invest in Marketing.
• Invested in ManufacturingInvested in Manufacturing
InfrastructureInfrastructure
33. Motivated Team.
• Nothing motivates more that foreignNothing motivates more that foreign
tour.tour.
• Work with pride.Work with pride.
• Earn $ Pay $.Earn $ Pay $.
• Profit Sharing Incentive Scheme.Profit Sharing Incentive Scheme.
• Bright Future.Bright Future.
• Flexible Hrs.Flexible Hrs.
• Child Education Scheme.Child Education Scheme.
34. Advantage India
• Low Cost Engineering.Low Cost Engineering.
• Low Cost Manpower.Low Cost Manpower.
• Low Cost Erection & Commissioning.Low Cost Erection & Commissioning.
• Free of Cost Plant Engineering.Free of Cost Plant Engineering.
• Trained Manpower Supply.Trained Manpower Supply.
• Low cost after Sales Support.Low cost after Sales Support.
• Better reputation than Chinese.Better reputation than Chinese.
• Very Large Population Working Abroad.Very Large Population Working Abroad.
37. International Trading
• India Needs Trading House.India Needs Trading House.
• Many Small Industries with ExportMany Small Industries with Export
Potential.Potential.
• Many CountriesMany Countries
lacking Trading Skills.lacking Trading Skills.
38. Myth about Exports
• Not my cup of tea, too small to export.Not my cup of tea, too small to export.
• I do not have exportable product or service.I do not have exportable product or service.
• I need very high quality product and state ofI need very high quality product and state of
art manufacturing technology.art manufacturing technology.
• I need to be fluent with English. LanguageI need to be fluent with English. Language
CommonCommon
• Export is too risky.Export is too risky.
• I am too busy serving local market.I am too busy serving local market.
• Market Development Expenses are too high.Market Development Expenses are too high.
39. How to Do It
• Visit International Exhibitions.Visit International Exhibitions.
• Participate in International Exhibition.Participate in International Exhibition.
• Network with NRIsNetwork with NRIs
• Find Our What is going on in WorldFind Our What is going on in World
Trade in Your Field.Trade in Your Field.
40. Use Technology
• Use World Wide Web.Use World Wide Web.
• Use E Mail. / SkypeUse E Mail. / Skype
• Participate in Group DiscussionsParticipate in Group Discussions
• Have your Website.Have your Website.
• Use You Tube. 2.4 million hitsUse You Tube. 2.4 million hits
• Commissioning by Skype.Commissioning by Skype.
41. Use Power of E Commerce
• Amazon / Ali Baba / FlipKartAmazon / Ali Baba / FlipKart
• Uber / OlaUber / Ola
• OyoOyo
• Make My TripMake My Trip
42. Breaking The Borders
• Political BorderPolitical Border
• Economical BordersEconomical Borders
43. Know Your Strength
• Experience of Low Margin HighExperience of Low Margin High
Turnover Business.Turnover Business.
• Young Talented Next Generation.Young Talented Next Generation.
• Exposure to Latest Technology.Exposure to Latest Technology.
• GST Regime.GST Regime.