For more than 160 years, Amann Group has been one of the global leaders in high quality sewing and embroidery threads ranging from regular use to high-tech applications. In India also, the Group has made its mark through its level of customer service and high-quality products. In conversation with Apparel Online , S. Suresh, CEO & CFO of Amann Sewing & Embroidery Threads Private Limited, shares the growth strategy of the Group in India.
Responding to market demands, Amann India is planning to upgrade its warehousing & logistics facility in Chennai as well as at Amann central warehouse in Germany that will enable Amann India to serve its customers more efficiently and promptly. “With coming new facility in India, we will have everything under one roof, including the expanded warehouse that will help us service our customers better and more quickly through varied quantities,” informs Suresh. Looking at growth, the company is strategizing as per its niche market strengths in leather, technical textiles and few core categories in apparel like lingerie, shirts & high-end garments. “We don’t have any real competitors in specialized threads for the leather industry. Amann’s quality has been proven time and again,” confirms Suresh.
Having gained market experience over the last few years, the company is now in a position to forecast the market needs and stocks up on orders accordingly so that it can maintain a lead time of 48 hours for regular products and 7-8 days for products that are not stocked in its warehouse. “We have finally stabilized our operations in the Indian market. Few years back we didn’t have a benchmark to work on, so we were not able to make any predictions on how the demand would move. But, we are now on track due to our more than 10 years of understanding of the market and the results are impressive in the last years,” asserts Suresh. The company is witnessing good growth in different sectors especially in technical textiles and leather segments, making its mark in the market for highest quality products and sustainability.
Having established leadership position in leather, the company is also now exploring the automobile industry through a different vertical, wherein specialists handling this niche category have been trained in Germany.
Very confident of its quality in products as well as services, Amann Group does not shy away from sending its technicians to compare its products with others and also practically demonstrate its customers, that’s why the thread is ‘worth’ the price. “For instance, if we are selling 1000 metres of thread in Rs. 100 and another company is selling 1,300 metres for Rs. 100, automatically the customer buys the 1,300 metres as it is cost-effective. But we go to our customers and run both the threads continuously for 3-4 hours practically demonstrating the breakage and knotting, which occurs in both the threads and comparing head-on in downtime and productivity. If you look at it that way, we are cheaper with first-class quality,” reasons Suresh.
Though the company is already present in the apparel segment, they are taking baby steps as shorter lead times are a problem area because of the lack of manufacturing facility currently. “The lead time is an important parameter for supply chain management and since the apparel market moves very fast, we don’t want to venture into a broader reach and fail in keeping pace,” informs Suresh. For now, the company is working mostly with shirt and innerwear manufacturers. Upbeat on the Prime Minister’s campaign ‘Make in India’, which is promising a better future with various reforms; Suresh feels that India is going to be a big market for the thread industry. “It is an exciting time to work in India, there is no doubt about it! With respect to technocrats, technology and human capital, India is going to be huge power. The Amann Group has full faith in the market growth story,” asserts Suresh. The Group is keen to have its own manufacturing setup in the country soon considering the positive outlook.
Nonetheless, the company is embracing the challenges and is looking forward to a year-on-year growth in the Indian market of double digits in percentage, with the existing corporate office & warehousing facility in Chennai and regional office in Gurgaon which caters India’s North & East markets. Due to its already existing infrastructure and close proximity to garmenting hubs of Bangalore and Tirupur, Amann has exciting plans to strengthen its position in these markets too. The company is also eager to expand geographically to the West as it sees a market for technical products such as industrial filters, etc. “What we are doing in India is not sales, but marketing, educating and upgrading the market for world class threads,” concludes Suresh.
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