In conversation with S. Krishnan, Director (Sales), Garware Polyester Ltd.
Interview by Deven Lad
Q. From polyester films to the self-healing paint protection film how has the product development journey of the company been?
A. As the pioneer of polyester film manufacturing, we have been in this business for long, in fact, we were the first company to have launched a polyester film. Now we are introducing Paint Protection Film (PPF). We have also gone through the phase of introducing window films which are very popular and sold globally in about 80 countries. The paint protection film is an extension of that product in the automotive space. It is used for protecting the paint coat on a car. The journey has been long I would say and one that has helped us with valuable learnings in the manufacturing space.
Q. Give us a snapshot of the company’s growth pattern over the last eight quarters? Have you been impacted with a slowdown in the auto sector and economy overall?
A. Our growth over the last eight quarters has been fairly good. Our profitability has been extremely high in this period. I can’t comment on our last quarter (Q2-FY2020) as the results are yet to be declared. Our profit was Rs.120 crore in the last Financial Year (FY2019). Compared to the profit three years ago, we were at about Rs.29 crore. So from a profit of Rs.29 crore to Rs.120 crore, the growth has been phenomenal.
Q. As an early mover with the first of its kind plant in South East Asia, have you been able to build on that advantage?
A. We are diversified, unlike other companies who only continued to make polyester films. We went on to manufacture window films and moved on to PPF. Going forward you will see us manufacture several other products.
Q. Self-healing PPF is not a new technology per se. What are the product properties in the next generation of PPF? Does it address issues like film yellowing or bubbling and nasty residues?
A. Along with our product, we are also selling an installation gel, developed in-house. This installation gel helps in terms of proper installation of the product, therefore, there is no question of bubbling and other effects in the installation process. In addition to that self-healing property which quickly heals, there is no other form of treatment that is required by the film to function as intended.
Q. Does the PPF need an additional layer of coating for daily wash and care routine?
A. It does not require any further coating. The only thing required is regular soap solution and usual precaution that you take in terms of cleaning or maintenance that needs to be taken care of.
Q. How does a Garware PPF differentiate itself from competing companies both in the domestic and the global market?
A. Our product is unique given that it has all the advantages and all the requirements a PPF needs to offer. A similar product from global players offers at the most two or three benefits. Either its self-healing or scratch resistance or it is hydrophobic. In comparison, we provide all of that in one product. In addition to this, our product is also priced competitively.
Q. Do you have a reseller business model with partner vendors in the supply chain?
A. We have distributors in the global market, our largest market, for instance, is in the United States. We also have distributors and retailers in India. We have trained them on all the applications of our products to ensure a robust network and ease of availability for our customers.
Q. Is the PPF an after-sales product purely?
A. It is an after-sale product as well as for OEM equipment in some countries. In our oldest plant, we plan to sell it to the OEM where it can be used to protect some of the vulnerable parts of an automobile.
Q. With buyers looking at price-competitive products over genuine care products, how confident are you of creating a pull?
A. This product has not just been developed under certain ideal lab conditions, but also It has been subjected to tests under all sorts of weather conditions and patterns, especially for a country like ours. So we manufacture not only what’s best suited for our country but test the products by way of simulated conditions of other countries, covering both cold and hot weather cycles. In fact, some of our big customers have already started ordering from the middle east where the temperatures are recorded upwards of 48 degrees Celsius.
Q. How Green is the product?
A. It is environment-friendly.
The normal life of this product is five years.
Q. Tell us about the R&D capability, manufacturing capability, and dealership network of the company?
A. Garware has always prioritised R&D. Ever since the inception, one of the main objectives has been to introduce new products in the market. PPF is one of those products that bring to the fore our capabilities. The dealership network has penetrated from tier-1 cities to tier-2 regions where we have an entire chain of retailers and distributors.
Q. What are the export aspirations and which markets do you already cater to?
A. We expect to sell in 80 countries across the globe with the same markets doubling up as potential markets for PPF. With most of them already using PPF from fortune 500 companies, our aim is also to break into the top 500.
Q. What are your growth areas and challenge areas over short to medium and medium to long term?
A. PPF is going to give us access to a large market across the globe. With the company looking to enter 80 countries, we believe the big growth challenges will be to train human resources across demographies in these different countries and ensuring that the products suit a wide array of application type and sustain in different weather conditions. While we have tested the products in different conditions, its time to test it on the ground and gather learnings for the future.
