Ramco ERP helps a family business enter the international arena

ABOUT THE COMPANY

If you are or ever have been part of a family business that has been around for generations, you’ll know that living up to a legacy can be quite a challenge! Managing personal and professional objectives on an everyday basis, balancing a dynamic market condition while holding on to long-cherished family ideals, and getting your employees and other family members to fall in line can never be easy.

How did a company that started off with a personal vision cope with the sudden shift to an international arena? Ask JVS Exports, which is running into a fourth-generation business. Originated from its parent company C.Swaminatha Mudaliar Sons, established during 1931, it is now a leading exporter in the home textiles segment.

LEAVING A MARK IN HOMES ACROSS THE GLOBE

With over 77 years of weaving experience, business dealings in 25 countries, and a host of noteworthy partners like Tesco, ASDA, Carrefour, Sainsbury's, Shop Rite Stores, K-Mart, Dollar General, and Cole's, JVS Export has emerged as a respectable and trusted name in the home and kitchen textile segment.

The textile industry is an intensely competitive one; according to CCI (Corporate Catalyst India), the Fabric Industry in India accounts for about 20% of the total exports of the country and represents the largest net foreign exchange earner. However, in spite of the fierce competition that characterizes this segment, JVS Export has managed to not just hold its own but make a notable impact. What has been instrumental in the company’s success is its forward-thinking attitude and fierce pursuit of technology.

“Unlike many other players in the area, JVS Exports has a strong focus on technology,” says Gopalarethnam Ravi, Senior Business Analyst. “They are always asking, ‘What next? How can we do this better?’ And I think that is one of the major reasons why they’ve been able to make a mark.”

ROADBLOCKS TO SUCCESS

The journey from being a family-run business to a major player in the home and textile segment has by no means been an easy one. Often, it has meant that the company has had to wend its way forward by staying up all night, especially during the time of an audit. The biggest bottleneck was inventory management. With a head office in Madurai, manufacturing plants in Karur and Vadipatti, a fast-growing retail sales division, a subsidiary division, JVS Spinners, and a number of sub-contracted vendors for managing different aspects of the supply chain cycle, the company found that their materials were pretty much “all over the place.”

The company had two ways of procuring their loom: spinning their own or procuring it from vendors across the state and district. There were other factors too in the chain that had to be taken into account before the final product was released. For instance, the basic raw material cotton had to be purchased locally or imported, depending on the quality, price, and market availability. It then had to be spun into the required yarn and this activity had to be handed as a job contract to JVS Spinners.

The yarn was then subjected to multiple processes like dyeing, bleaching, and cone winding; each process was in turn subcontracted to various suppliers across Madurai and Karur. As the company grew, so did the number of vendors, middlemen, assets, and resources. “The entire process was a constantly evolving one and we began to feel the need for a system that would provide a comprehensive overview of what was where, who was doing what, and how it could be done better,” says Mr.Satagopan, Manager HR.