AVADH TEXWOOD & SYSTEMS

Customer Interview

An Interview With Mr. Praveen Rander Director, Shri Bhagirath Textiles Ltd, Nagpur

Regarding ERP & Indian Textile Industry

Background

Shri Bhagirath Textiles Ltd [SBTL] is an ISO 9001 2000 company and engaged in the manufacture of synthetic and cotton Yarns, belongs to well-known Rander group. SBTL is committed to Global standards of Quality and has seen phenomenal growth over the last decade. The company has created a niche for itself by focusing on quality and best services. The company is one of the best quality producers of synthetic and cotton yarns in India. ATWSPL, an ERP solution provider has signed an MOU with SBTL to provide customized ‘TOPSPIN’ ERP solution, integrating their entire business activity of Mohali [Kalmeshwar] plant and Gandhibagh, Nagpur [H.O.], generating enterprise wide information for authentic resource management. Mr. Praveen Rander, a charted accountant holding ‘Masters Degree in Business Management’ from U.K., is in charge of SBTL spinning unit as ‘Director’. His leadership and creativity coupled with his academic qualification and experience under the able guidance of the Managing Director, Shri Ramesh Rander is taking the organization a long way in the business. This MOU is a path breaking outcome of the visionary thought process of Mr. Praveen Rander, [Director] SBTL and Mr. Prem S Bajpai [C.E.O. & M.D.], ATWSPL. This ERP project is a joint exercise of ATWSPL and SBTL professionals that indeed is going to create a landmark research and development in the larger benefits of textile industry.

Following are the excerpts of atwspl.com’s e-mail interview with Mr. Praveen.:

atwspl.com:

We understand that you have undergone extensive ERP market research that took around six months before signing MOU with ATWSPL for ‘TOPSPIN ERP’. Could you please elaborate what were the key factors under consideration to select ATWSPL as an ERP vendor?

Mr. Praveen Rander:

The key factors were :- 1) Features of the ERP. 2) Degree of customization possible. 3) Suitability of the package as per our product profile. 4) Clientele of the vendor.

atwspl.com:

The international brands are general fits and as such the ERP’s are able to cater the general requirements of the businesses concerned. Don’t you think ‘TOPSPIN ERP’ is an innovative & revolutionary concept that focuses over the business procedures and unique requirements of the business concerned?

Mr. Praveen Rander:

We did consider the standard packages as well. However, we realized that keeping in view the skill sets of our staff, initial costs involved and implementation failures the package like of yours will be a better fit for our organization.

atwspl.com:

In a manufacturing establishment, production is the major resource that requires certain technical skills and domain expertise as far as textile in particular is concerned. You being pretty sound in commercial areas looking to your academic qualifications and experiences have opted for ‘TOPSPIN ERP’ which indeed is an industry specific solution having detailed flow of information over raw-materials, count blend wise spinning machinery output evaluation/comparisons production & quality control, power [energy] consumption, technical & commercial MIS etc as USP. How did you make a balance?

Mr. Praveen Rander:

We were already running which was serving our commercial requirements quite comprehensively. However we realized that without proper integration with technical modules there were a lot of aspects which were getting skipped . Such information is must for cost optimization and better information availability.

atwspl.com:

Are you able to find similar balance in ‘TOPSPIN ERP’ and if not what are the areas of concern for you?

Mr. Praveen Rander:

Topspin ERP is more or less what we were looking for. I feel that some standardization in area of government statutory reports will further strengthen the reach of software to masses.

atwspl.com:

Do you agree that time has already arrived for industry/business specific solutions as a priority in the ERP market?

Mr. Praveen Rander:

Yes. I think that spinning industry has evolved enough to understand the benefits of ERP.

atwspl.com:

Do you agree that ERP solutions of international brands can be accommodated in Indian Textile Industry?

Mr. Praveen Rander:

Probably in very big industries. But for SME’s like of ours, I have big doubts in its success.

atwspl.com:

The dilemma about ERP market in Indian textiles is that spinning units are producing intermediary product like yarns and are sandwiched between fiber price impact and supply demand related price pressures of fabric and hence profits margins are restricted. On the other hand every service has a cost and ERP providers, especially the industry specific providers need certain cost to survive and grow. If the service providers are not able to survive, this will recoil over the investments made. Looking to this peculiar situation, what suggestions you have to offer to the industry as well as service providers?

Mr. Praveen Rander:

It has been conventionally like this always. The only way is to keep improving the internal processes for cost optimization.

atwspl.com:

Do you agree with ATWSPL incremental implementation methodology?

Mr. Praveen Rander:

Yes. Module by module implementation is the best approach.

atwspl.com:

Your organization [SBTL] has already achieved a milestone as for as ‘TOPSPIN ERP’ implementation is concerned. What hurdles were you faced to, during implementation and what level of support did you receive from ATWSPL?

Mr. Praveen Rander:

We are almost 70 % through and support has been exceptionally good. The team is very considerate for all our requirements.

atwspl.com:

Any ERP in general starts giving contributions in two to three years of deployments? What exact benefits do you expect in the near future and in years to come?

Mr. Praveen Rander:

More improved MIS reports in the areas of HR, production and maintenance.

atwspl.com:

ERP’S in general require trained users. Configuration requirements also require specific skills besides training over making inputs in the application? How would you like to place ‘TOPSPIN ERP’ considering the scarcity of such skilled, trained users and their cost to the organization?

Mr. Praveen Rander:

Since its industry specific, it makes user acceptability more easy compared to others.

atwspl.com:

How will you rate ATWSPL’s service out of 10?

Mr. Praveen Rander:

7

atwspl.com:

How will you rate ATWSPL’s ‘TOPSPIN ERP’ as a solution out of 10?

Mr. Praveen Rander:

9

atwspl.com:

Do you think ERP investments need ROI considerations? If so, what elements of expenditure & revenues would you like to consider while making such investments?

Mr. Praveen Rander:

It’s hard to compare it in ROI perspective but overall it will bring in improvements in the profitability of company for sure.

atwspl.com:

Suppose your organization had ERP in place from another international brand of repute. Later you came across with the functionalities of ‘TOPSPIN ERP’. Will you reconsider to deploy ‘TOPSPIN ERP’ as a replacement, the same being industry specific?

Mr. Praveen Rander:

Will have to take in account the change over hurdles, cost involved etc. But ERP is a long term decision and if it brings substantial value to internal systems, yes we will be taking the step.

atwspl.com:

Do you think the academic interactions between the organizations of your kind and ATWSPL and resultant R&D efforts to customize ERP application software undertaken can take Indian Textile Industry a long way in the international scenario? Please elaborate.

Mr. Praveen Rander:

It certainly can. Real time industry is the best learning ground from academic perspective also and results / outcome of this effort will be more objective.

Post Conclusion Interview with Mr. Praveen Rander, Director, Shri Bhagirath Textiles Ltd

Regarding ERP & Indian Textile Industry

Background

atwspl.com

has taken an email interview of Mr. Praveen Rander, Director Shri Bhagirath Textiles Ltd, Nagpur when the ‘TOPSPIN’ ERP was just in the seventh month of its implementation. After two years of consistent data entry, and auto-transfer of financial year wise data, now the time has come to review the ‘TOPSPIN’ ERP implementation. This will help all concerned to understand, whether the objectives of ERPdeployment are met and if yes up to what extent. Secondly, this will also help to explore the unexplored areas of ‘TOPPSIN’ ERP that atwspl.com believe, still exist and should be focused to reap the benefits. atwspl.com In your earlier interview you had described the key factor for the selection of ‘TOPSPIN’ ERP as:
  1. Features of the ERP.
  2. Degree of customization possible.
  3. Suitability of the package as per SBTL’s product profile.
  4. Clientele of the vendor.

Above key factors are still valid now or you would like to add/delete certain factor?

Mr. Praveen Rander

All criteria remain the same.Still valid.

atwspl.com

You had also mentioned that: “However we realized that without proper integration with technical modules there were a lot of aspects which were getting skipped. Such information is must for cost optimization and better information availability.” Will you kindly elaborate how exact you could do so by implementing ATWSPL ‘TOPSPIN’ ERP?

Mr. Praveen Rander

For eg :-
  1. Differences between average weights and actual weights of packing.
  2. Power study.
  3. Gradually attain the reconciliation between actual and costing profit.
Future plans :-
  1. Carry out HR appraisal based on ERP criterias.
  2. More exhaustive use of quality norms for planning the mixing.

atwspl.com

During the implementation phase, you visited Barcelona & India ITME 2012. After implementations at SBTL, how will compare ATWSPL ‘TOPSPIN’ ERP with the other brands those exist in the market?

Mr. Praveen Rander

After that we have realised that more than brand, it’s the effectiveness of delivery that matters most. Topspin being made and managed solely by ATWSPL, it gives a unique advantage of in depth understanding and customisation abilities to them which I think will be missing with other big brands.

atwspl.com

What differences you have witnessed about your users before and after implementation of ‘TOPSPIN’ ERP.

Mr. Praveen Rander

Users are more concerned about the data accuracy as there is a trail of their actions. Further there are a lot of duplications which are eradicated now which lets them focus on more value adding activites.

atwspl.com

We would like to repeat this question to better understand the same now: ‘The dilemma about ERP market in Indian textiles is that spinning units are producing intermediary product like yarns and are sandwiched between fiber price impact and supply demand related price pressures of fabric and hence profits margins are restricted. On the other hand every service has a cost and ERP providers, especially the industry specific providers need certain cost to survive and grow. If the service providers are not able to survive, this will recoil over the investments made. Looking to this peculiar situation, what suggestions you have to offer to the industry as well as service providers?”

Mr. Praveen Rander

Spinning industry has been going through a very tough period from past 3 years. Unfortunately, since the industry is in such a bad shape, the subsequent pressure is bond to pass on to inputs and service providers. This is evident form the fact that despite such attractive policies in state of Maharashtra, people are reluctant to invest in spinning including us (our own new spinning project is on hold for the moment). My suggestion for ATWSPL for this period is to just keep expanding the clientele at minimal costs till things get back to normal. I am sure that with wider client base, industry will gradually understand the potential of this product. Participation in textile events and word of mouth plays the biggest role in such products. Hence persistence for now should be the best strategy.

atwspl.com

In your earlier interview regarding ROI of ERP deployment, you had stated that: “Its hard to compare it in ROI perspective but overall it will bring in improvements in the profitability of company for sure.” What exact benefits SBTL could get?

Mr. Praveen Rander

Since we have just implemented this in terms of attaining stability. I need some more time to give you an exact feedback on the same.

atwspl.com

How will you rate ATWSPL’s service out of 10 now? Earlier you have rated as 7 out of 10

Mr. Praveen Rander

8.5.

atwspl.com

How will you rate ATWSPL’s ‘TOPSPIN ERP’ as a solution out of 10 now? Earlier you have rated as 9 out of 10.

Mr. Praveen Rander

Still the same as there always will be some scope for improvement.

atwspl.com

ATWSPL after signing MOU with your organization has offered a joint academic interaction with your professionals and yourgoodself in particular. You had positively opined that: “Real time industry is the best learning ground from academic perspective also and results / outcome of this effort will be more objective.” Do you think ATWSPL & SBTL have jointly achieved the same that can be treated as a milestone? If yes, kindly elaborate the details

Mr. Praveen Rander

Yes certainly we have achieved quite a few accomplishments. However a more elaborate answer will be given in a months’ time after linking the same with ROI perspectives above.

atwspl.com

Besides above what suggestion you would like to add.

Mr. Praveen Rander

Some working towards value addition like subscription based solutions like only KPI reports etc also should be worked out so that units who cannot afford ERP upfront cost can get a feel of it by running it on a trial basis on subscription model.

atwspl.com

Thanks & regards for sparing your valuable time in the largest interest of textile industry.