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Special series : INDIA/Bangalore-Chennai

Special series : INDIA/Bangalore-Chennai
Venturing of a Sri Lankan Major Exporter into India
Synergy Effect of Group/Know How and its Originality

REGENCY INTERNATIONAL CLOTHING PVT.LTD.
Manilka Perera, CEO of India operations
Anand .S, Chief Financial Officer
Mohanrajan .M, Manager-Maintenance
“The sewing machines from JUKI are the most suitable machines for our plant. We are looking forward to the next ten years as being a WIN-WIN period for both us and JUKI to grow.” Says Mr. M. M. Rahman, director and CEO.
Manilka Perera, CEO of India operations

Anand .S, Chief Financial Officer
Anand .S, Chief Financial Officer

Mohanrajan .M, Manager-Maintenance
Mohanrajan .M, Manager-Maintenance

Fully equipped for quality control checks like material test etc.
Fully equipped for quality control checks like material test etc.

New factory with thorough 5S implementation Atmosphere is bright and operator friendly
New factory with thorough 5S implementation Atmosphere is bright and operator friendly

High Speed Cylinder Bed Cover Stitch Machine MF-7823
High Speed Cylinder Bed Cover Stitch Machine MF-7823

High Speed Electronic Button Sewing Machine LK-1903
High Speed Electronic Button Sewing Machine LK-1903

2-Needle Lock Stitch Machine LH-3178
2-Needle Lock Stitch Machine LH-3178

Lockstitch, Automatic Welting Machine APW-895
Lockstitch, Automatic Welting Machine APW-895

Computer Controlled Cycle Machine with input function AMS-223P
Computer Controlled Cycle Machine with input function AMS-223P
Entry into India with full preparations
Key to this - overall prospective


Regency International Clothing, a company belonging to Hirdaramani Group of Sri Lanka was established in Chennai, Tamilnadu in year 2005 (Mass Production started from year 2006). The group besides having 9 factories in Sri Lanka is into Hospitality Industry owning chain of hotels. This giant group started with Garments making, possesses 4 factories in Bangladesh, one in Vietnam (very soon 2nd unit in Vietnam also would be operational). These two destination countries have shown steady growth, India is the third destination with the group's strong foothold.
Mr. Manilka Parera, CEO of the company said "Major at traction in Bangladesh is low labor cost whereas Vietnam has advantage of technically skilled and stable work force". Further to this, he added, "India is rich in textile. Technical work force is available to do minute work like beads and embroidery etc. Not only this, cost wise also it is quite competitive. Chennai has port too to ease out the shipments. In other words India is a country having vast potential in totality".
Since the group has extensive expertise and overseas experience, it could gear up well in advance with the preparations much before entering into India. Taking advantage of know- how the group has, it took just one and a half year right from inception till commencing the mass production.


Accumulated Know How
Realization of high level of productivity in mere one and a half year


For India Venture, managers and engineers have been deputed from Sri Lanka whereas Supervisors in the shop floor are local experienced people. Operators recruited are all local freshers. How fast one can start mass production in a short span of time after venturing is the key deciding factor for success or failure of a business.
Once a company is established, general perception is that hiring experienced staff makes launching easier and smoother but on the contrary, it is difficult for experienced staff to adapt to the new system/working culture of a new enterprise. At times it hampers the growth of the company and resultantly consistency in the production/quality gets affected. Therefore to avoid such unfavorable situation, according to CEO Mr. Manilka
Parera, "Shop Floor supervisors recruited were all local experienced people but operators hired have been all freshers trained under the supervision of IL & FS within the factory premises. As a result, as expected and desired, they could start mass production in one and a half year and were able to achieve high level of productivity". Also "sending supervisors, line incharges, IE people etc to Sri Lanka for training made them learn faster" said he. Or in other words group,s past experience has been utilized superbly to its best.


Customization of Standard System

As on August 2008, company has an employees, strength of 1550 including 1100 operators. Product Line up includes ladies, bottom, knit top & bottom, bathrobe. Company has plans to add more products gradually. "Decision making can be done at factory level. Or in other words Finance is very significant as responsibility for earning and profit making is the sole responsibility of the factory." said Mr. Anand. S- Chief Financial Officer.
In all, there are total 17 production lines having approx 70 machines each. Shift timings are from 08:30 to 17:30. In between three breaks of 15 minutes, 30 minutes, 15 minutes are there.
Hirdaramani Group principally has standardized organization structure however customization is done to match the culture, conditions of the respective country.
E.g. In salary system little allowances are there depending upon the system prevailing in that country. In India, besides salary, production linked incentive is also there. 10 to 20 % of the earning comes from the incentive. "As it is performance based, there are some excellent groups having incentive even up to 35%. Sewing operators get training from grass root level, they are quite sincere. As a result work and quality both are also consistent" (Mr. Mohanrajan.M, Manager-Maintenance)


Issues to be resolved are : minimizing lead time,
Developing Design・Product Planning capability


Hirdaramani Group has lot of expectations from its facility in India.
"Presently basic product development is being done by the group. Unit wise items are left to the sole responsibility of the said unit. As for India Unit, production has already started and designs/fabric proposals for the clients are also worked out partially. In future we would like to make proposals to our clients with our concepts and designing" stated Mr. Manilka Parera.
Utmost requisite for that is to develop "Designing Capability & Minimizing lead time which is presently between 90 to 120 days" in order to speed up rotation ratio.
Order quantity is also in small lots of 100 to 200 numbers. Average lot size is 10000 pieces. Effective item change over and production control are very important aspects to cope with the small lots orders. Lean production system has already been deployed.
Company policy is to utilize the best practices of the respective country and give unit a free environment to work and accumulate the know-how of the group.
--- It can be said that a splendid synergy effect, a peculiar feature of Hirdaramani Group has been utilized to its best!

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