| MR.R…….. Always a step ahead! | | | | commitment, which has resulted in his present |
| Submitted by | | | | achievement. |
| Ms.R.Thamaraiselvi | | | | Based on the results, Autotex Ancillaries private |
| MR.R…….. Always a step ahead! | | | | limited was promoted in the year 1992 with an |
| Case Summary | | | | initial investment of Rs.25 lakhs and with 25 |
| Coimbatore, the entrepreneurial belt in South India | | | | employees. The objective of the unit was to |
| has breaded numerous entrepreneurs during the | | | | manufacture sophisticated plastic components to |
| decades. One such individual was identified to | | | | serve the textile and engineering industry. The |
| develop into a case. “Mr.R……Always a step | | | | resultant outcome was bobbin holders, fluff |
| ahead!” brings out the real life experience, | | | | protectors and plastic automobile components. |
| efforts and outcome of a young technical | | | | Mr.R took over as the first managing Director of |
| entrepreneur located at Coimbatore. It narrates | | | | the concern. He takes care of CAD, new |
| his humble beginning with a focus into various | | | | projects, personnel, and marketing activities of |
| factors that influenced him to venture into | | | | the organization. Mr.R Director of the company |
| business. Three different units were established | | | | was involved in the administration and Finance |
| by him during a short span of fifteen years. | | | | function of the group. The General Manager who |
| Autocoats was established in 1989 as a service | | | | reports to the Managing director takes care of |
| provider to the painting requirements of pump, | | | | purchase, stores, and assembly and moulding |
| automobile and textile industries. Associated | | | | activities of the concern. (Fig 2) Mr.R takes the |
| Autotex Ancillaries (P) Ltd established in the year | | | | pride about his company that has grown to be |
| 1992 manufacturing bobbin holders and other | | | | one of the leading suppliers to OEM of Textile |
| related textile machinery accessories. 2001 Good | | | | machinery manufacturers the world over within a |
| luck Syndicate was setup to produce FMCG | | | | period of ten years. |
| product, namely mosquito coils and liquid. All the | | | | Fig 2: organization chart of Associated Autotex |
| endeavors turned to be a success story. The | | | | Ancillaries (p) Ltd. |
| main aim of this case-let is to highlight and inspire | | | | His major achievement was the development of |
| young management students to transform into | | | | designed patented Bobbin holders indigenously and |
| entrepreneurs by taking the leads found through | | | | further, successfully captured 90 percent of the |
| Mr.R’s experiences. Mr.R could be a role model | | | | global requirement. The bobbin Holder with multi |
| for budding entrepreneurs who may gain insights | | | | break system was the first of its kind was also |
| into starting a business and strategies to manage | | | | patented by the organization. They were also the |
| with competitive advantages. | | | | first to secure ISO-9001 certification in this |
| Introduction: | | | | manufacturing segment. |
| Coimbatore -a city in the southern region of | | | | Since inception, Autotex stands always a step |
| Tamilnadu has transformed itself into one of the | | | | ahead in understanding and fulfilling the customers |
| ten highly industrialized cities in the country and | | | | over increasing demands by providing products |
| now ranks fourth in terms of the potential for | | | | with outstanding performance and new |
| growth. The most striking feature of Coimbatore | | | | innovations in bobbin holders. Presently, there is |
| has been its diversity, enterprise and resilience. In | | | | about 124 employee strength and the company |
| its rise from strength to strength it converted to | | | | had achieved steady growth right from its |
| advantage even its disadvantages. Coimbatore | | | | inception from 396 lakhs to 750 lakhs in 2004-05. |
| district has achieved sustainable growth by a | | | | Transformation and acceptability for auto bobbins |
| variety of industries ranging from the traditional | | | | came to Autotex, when their product was |
| cotton textiles industries and foundries to the | | | | accepted by Reiter the textile machinery |
| manufacture of electric motors, pumps, | | | | manufacturers of Switzerland. In 1994, though |
| automotive parts and accessories, consumer | | | | only 5000 units were exported to them it was a |
| goods and computer peripherals. It offers | | | | great breakthrough for Autotex. The other OEMs |
| unlimited opportunities to the entrepreneurs with | | | | of textile machinery in India also accepted |
| diversified industrial activity and an innovative | | | | Autotex for bobbin holder supply. From then on, it |
| entrepreneurial spirit. There are, of course, | | | | was a success story for the organization. It has |
| countless success stories For instance, | | | | reached a production of 12000 units / day in |
| Mr.Ramanujam, Managing Director of Associated | | | | 2004 from the start of 50 units / day. |
| Autotex Ancillaries (P) Ltd. was chosen and | | | | The major scouring for their product was through |
| considered in this case description. His initiative, | | | | exhibitions and direct marketing. They channelized |
| growth and achievements during the last two | | | | their domestic sales and distribution through |
| decades are narrated in detail below. | | | | agents who are already dealing in textile |
| Mr. Ramanujam is a Coimbatore bred technical | | | | accessories. The expertise, skilled and efficient |
| graduate. In his newly built administrative office, | | | | manpower with added features of quality, service |
| sitting in his executive chair, he looks with | | | | and continuous development programs have |
| satisfaction and pride at the upcoming three | | | | contributed significantly to the position of |
| storeys building, which is fully modernized for his | | | | eminence and the trust of client’s world wide |
| business operations. He subsequently thought, | | | | Today the reputation of the company rest on |
| about his career and its development during the | | | | their quality products, customer service and |
| last two decades. Munching those thoughts was | | | | response levels world over. Their global network |
| like recharging his potentials for further endeavor. | | | | includes European, Asian, South American and |
| His thoughts went rolling to 1985. He was then a | | | | South African countries. Owing to the meticulous |
| young, energetic technocrat working as an | | | | effort of Mr.R in procuring export orders, the |
| assembly manager in a Textile machinery | | | | company has been accredited with EEPC |
| manufacturing unit at Ganapathy, Coimbatore. In | | | | (Engineering Export Promotion Council) regional |
| those days, his urge to start his own enterprise, | | | | award for export excellence for the consecutive |
| something new and which was not available in | | | | two financial years.( 2002-04) |
| Coimbatore, propelled him to look for | | | | . Fig: Indicating Mr.Ramanujam with his working |
| opportunities. Incidentally, he identified a great | | | | team |
| opportunity in a news paper article about powder | | | | Table-1: Showing the sales turnover |
| coated painting process. | | | | Financial Year Sales value |
| He recalled his memories about those days, | | | | (in Lakhs) |
| wherein motor and pump industries in Coimbatore | | | | 2000-01 396 |
| were highly dependent on small and medium | | | | 2001-02 403 |
| engineering (SME’s) units only. They did not | | | | 2002-03 555 |
| own their own paint shop and thereby owners | | | | 2003-04 628 |
| sought the help of part time painters for this | | | | 2004-05 750 |
| purpose. Painting was more of conventional | | | | The organization also expanded its service to |
| method and more dependency on painters was | | | | manufacture Ring frame Tubes, Dye Cones, and |
| felt difficult during heavy demand periods. His | | | | Cheeses to cater to the Textile Industry. Now |
| entrepreneurial character sparkled in him to start | | | | Mr.R, the Managing Director of the group is |
| a powder coating unit “Autocoats” – a | | | | currently planning to move to large scale |
| commercial painting unit based on job orders. This | | | | manufacturing of ring tubes, Simplex bobbins, |
| was the first of its kind in Coimbatore! | | | | separator card case production and other |
| Mr. R recollected as to how well, he had grabbed | | | | accessories. |
| this opportunity to set up a powder coating unit | | | | MR.R thoughts were now on how he established |
| with an electro static process in 1989 at | | | | the third unit. In 2001 after confident that |
| Peelamedu with an initial Capital of Rs.5 lakhs. His | | | | stabilization in both the ventures were achieved |
| investment included Rs.2 lakhs of his own and Rs.3 | | | | efforts were made for diversifying. Guiding |
| lakhs mobilized from bank. The company started | | | | factors here included: to go for a product which is |
| to function with the objective of: | | | | really consumable and it should come under the |
| - Adaptation of the product and tailoring of | | | | FMCG category. |
| coating in accordance with customer needs. | | | | He thought about how much time he has spent |
| - Taking care of pollution worries. | | | | initially to study rigorously the details for the new |
| Initially, marketing was conducted on door to door | | | | venture. Yes! it took nearly a year to study about |
| basis and gradually captured a place in the market. | | | | mosquito coil manufacturers, their problems, their |
| The company had a take off with the motto | | | | sustainability, production technology from the |
| “Try our coatings – Try is ensuring | | | | machine manufacturers in Malaysia. So the |
| See the difference - Seeing is believing” | | | | venture took its shape in 2002 for the |
| It was a great start for him with lot of job | | | | manufacture of mosquito coils and liquid vaporizer. |
| orders flowing on his way. He managed to | | | | GOODLUCK SYNDICATE was established during |
| achieve tremendous success with just 10 | | | | the year 2002. This was started with an initial |
| employees. It was right solution for people who | | | | capital of RS.50 Lakhs. They were launched in the |
| could not afford to have their own paint shop. | | | | brand name of GOODLUCK and MAJOR. During |
| Thereby motor and pump manufacturers brought | | | | the maiden year of operation the organization |
| their output for painting work creating enormous | | | | was able to achieve a turnover of 250 lakhs by |
| demand. He justified his success through proper | | | | which it was able to secure Third place in the |
| marketing and appropriate quality combined with | | | | state of Tamilnadu. Second year the unit was able |
| timely delivery. | | | | to double its turnover in spite of stiff competition |
| Later on, they started serving OEM, industrial and | | | | from multinational brands available in the market. |
| commercial customers with Hi-tech coating | | | | The Reasons for success of this venture flashed |
| solutions. It was a successful endeavor with an | | | | one after the other in his mind: efficient technical |
| ability to secure regular job orders from several | | | | persons with sound knowledge in manufacturing |
| OEM giants like Lakshmi Machine Works (LMW), | | | | quality coils suitable for remote pockets of the |
| Jeetstex engineering and Sharp group of | | | | state and 40 experienced sales personnel who |
| companies. Also multinational corporations like | | | | were able to penetrate the market were all |
| Bonfiglicli Transmissions Pvt Ltd, Reiter-LMW Ltd. | | | | responsible for the success of the unit. The unit |
| From the humble beginning as pioneers in this field, | | | | made inroads market into the neighboring states |
| Autocoats has developed into one of the leading | | | | of Tamilnadu, namely Kerala and Andrapradesh. It |
| powder coater with widest range of industrial and | | | | is also planning to enter the international market in |
| comprehensive coating system. After achieving | | | | the recent years. A great pride and satisfaction |
| the break even point in five years, the company | | | | engulfed him at the recollection of his memories. |
| has grown with 50 employees and turnover of | | | | Then he further thought, there are still miles and |
| Rs.1 crore in the year 2004. The Fig 2 brings out | | | | miles to go ahead with lot of avenues wide open |
| the sales turnover of Autocoats between years | | | | in front of him. |
| 2000-2004 | | | | Conclusion: |
| Mr. R enjoyed the state of monopoly for two | | | | Mr.R, a Coimbatore bred entrepreneur has thus |
| years after which few others slowly ventured | | | | shown a remarkable ability to survive crises by |
| into the trade. Now, Autocoats has developed into | | | | adapting and innovating. The result is a big |
| one of the leading powder coater with a widest | | | | entrepreneurial success at the international level. |
| range of industrial castings and comprehensive | | | | This is widely held to be the main reason for the |
| coating system starting from Zinc chromate / | | | | entrepreneurs of Coimbatore going global ahead |
| oxide, Stoving enamel, Polyurethane and | | | | of the country. |
| Electrostatic power coating. | | | | Questions for discussions: |
| Fig 2: Sales turnover of Autocoats | | | | 1. Identify the entrepreneurial traits of Mr.R ? |
| In this context, Mr.R is confident of attaining a | | | | 2. What are the insights one gains through |
| turnover of three to five times of the current | | | | Mr.R’s experience? |
| potential with the expansion of Autocoats, using | | | | 3. Is the growth and success of Mr.R during this |
| conveyor belt in the forthcoming production | | | | time period, compatible with Indian industry |
| process. Also they have an immediate plan to | | | | standards? |
| give a face lift to Autocoats by shifting its | | | | 4. Comment on his marketing strategies. |
| operation to a new building | | | | 5. If you were in Mr.R’s position, what may |
| Then his thoughts slowly shifted to dwell in depth, | | | | be the new paradigms for the competitive |
| the reasons for diversifying his business and how | | | | business world in 2025? |
| he emerged into a new sector relating to Textile | | | | References: |
| industry. In the art of industrial coatings, there | | | | 1. Krishna Kumar Asha, 2002, Enterprise and |
| was heavy demand for job orders, but however | | | | resilience, Frontline, Vol 19, issue 20, oct12-25. |
| there was also an inbuilt uncertainty with erratic | | | | 2. Krishna Kumar Asha, 2004, Enterprise and |
| schedules. At times, they had to wait for orders | | | | resilience, Frontline, Vol 21, issue 02, Jan 17-30. |
| and other times they were unable to manage the | | | | 3. Krishna Kumar Asha, 2005, Enterprise and |
| flow of work orders. And so it was more | | | | resilience, Frontline, Vol 22, issue 03, Jan 29-Feb 11. |
| dependent on customers and this made him to | | | | 4. |
| think that he cannot continue in the same manner | | | | 5. |
| for a longer perspective. | | | | 6. |
| Mr.R thought about how he ventured into a new | | | | Annexure |
| business owing to these reasons and what | | | | Sl.No Name of the Company Details |
| factors made him to choose the kind of business. | | | | 1. Lakshmi Machine Works LMW is the leader in |
| The ideas that were lingering in his mind included- | | | | the manufacture of textile machinery, CNC |
| • It should be their own product | | | | machine tools and metallurgy products with |
| • A light engineering product | | | | numerous high profile diversified activities with 60 |
| • Less dependent on labor and more on | | | | % of market share in the domestic textile |
| systems. | | | | machinery industry. LMW also has global presence |
| Then he landed up with Autotex. | | | | over the past seven years. |
| Coimbatore, the textile hub of South India | | | | 2. Sharp Group of companies Sharp are the |
| encouraged him to initiate and produce textiles | | | | leaders in the domestic water pumps and |
| related product. Guided by the thought that bobbin | | | | agricultural water pumps. With its brand well |
| holders were procured by his previous employers | | | | known among the households for Monoblock |
| from a manufacture in Ahemadabad from | | | | water pumps in India, has flourished successfully in |
| Gujarat, persuaded him to try out manufacture | | | | the pump industry. |
| of bobbin holders. Mr.R was reminded of those | | | | 3. Jeetstex engineering limited Jeetstex |
| days when, with an initial investment of just | | | | Engineering Ltd started in 1978 is a Manufacturer |
| Rs.5000/-, how the product was designed and | | | | & Exporter of Textile Machines and Importer of |
| tested for its acceptability in the market for | | | | Textile Machinery Components. After a long stint, |
| about one year. He was also reminded of how he | | | | its turnover is turned to be several crores now. |
| had toiled 12 to 15 hours of initial working with | | | | |