SME Times News Bureau | 11 Jun, 2018
From needles to toys, electronic
gadgets, consumer durables, Chinese version of the same in India at
a much cheaper price, said Nirav Patel, CMD,
Abaj Electronics Pvt. Ltd., adding that
Chinese counterfeit goods are affecting not only the domestic
business and Indian market but also affecting the export market of
our country.
Excerpts
of the interview…
Please tell our readers about Abaj World and its entrepreneurial
journey.
Nirav Patel: It's a riveting story of
success. Way back in 2012, the foundation of Abaj World was
laid. Hailing from the small village of Kadi Taluka of Mehsana
District of Gujarat, I graduated as BE (Electronic and communication)
in the year 2011. I left the family business to walk my own path.
After completing studies, I felt the need to make a name for myself
outside my family owned real estate businesses. Then I decided to
give the entrepreneur inside me a go and focused on starting my own
business.
Starting your own venture different
from a family business and harder than you initially think, but
interestingly enough, it gets easier as you set a vision and work on
it step by step. I started with share market trading but it was not a
smooth start. After bearing a loss of 50,000, I decided to switch to
stock Brokerage Company by the name SMC Global, which is listed
amongst top 5 franchises globally. This was not enough for me. In
2010, while working for KAYNET I came across a customer who had
imported LED TV from Thailand and was struggling with two to three
containers for its sales. I helped him out and managed to sell those
containers. While I had done this easily I thought that I could get
into this venture. Also, I had placed one of the LEDs in my own
office and perceived no difference between an LG, a SAMSUNG or this
product which that customer was selling under the name of Smart View.
Giving it a serious thought I felt if
China could establish itself as a strong player in the electronic
goods market in India then why is it that our country is lagging. Why
can’t an Indian brand be a game changer? I realized this lag as
electronics had no base in India. The ecosystem was completely
lacking. Also, there was no local manufacturing; electronic items
were often being imported. Then and there I decided to step in. And
this is how the seed of ABAJ WORLD was sown.
What are the products and services you
offer and plan to offer in the future? What is your competitive
edge?
Nirav Patel: LED Televisions has been the primary focus of the brand. But now
we are adding other categories as well. The company plans to
introduce Air Conditioners, Washing Machines, Smart Sound Bars,
Refrigerators and many other technologically advanced products. We
are constantly extending our portfolio focusing on innovation and
technology that's why we call ABAJ - Ultimate Life's Thing. With our
range of products, people will experience a whole new
lifestyle in the affordable price tag. We are currently selling
through our extensive dealer and distributor network. In future, we
plan to sell our products online too.
The company will be competing on quality and price. If you look at
the brands present in the market, the price range is beyond the reach
of the middle-class consumers. We at Abaj will be offering quality
products at an affordable price range. By positioning itself in a
competitive yet affordable price band, Abaj will provide relief to
consumers.
What is the current status of the Indian consumer electronics
market? What about its prospects for this fiscal?
Nirav Patel: Consumer durables market in India reached Rs 1 trillion (US$ 15.45
billion) in 2017. The industry is expected to grow at 13 percent CAGR
and reach Rs 3 trillion (US$ 46.54 billion) by 2020. Urban markets
account for the major share (65 percent) of total revenues in the
consumer durables sector in India. There is a lot of scope for growth
from rural markets with consumption expected to grow in these areas
as penetration of brands increases. Also, demand for durables like
refrigerators as well as consumer electronic goods is likely to
witness growing demand in the coming years in the rural markets as
the government plans to invest significantly in rural
electrification. Growing awareness, easier access, and changing
lifestyles have been the key growth drivers for the consumer market.
Do you think Chinese counterfeit products is a threat to the
industry? How to prevent it?
Nirav Patel: Be it anything from a needle to toys, electronic gadgets, consumer
durables, you will find the Chinese version of the same in India at a
much cheaper price. The price of Chinese goods is 10-70% lower than
that of Indian goods. Low price, bulk availability, and variety are
some of the favourable features of the Chinese goods in India.
Chinese products in huge quantity are put into the Indian market and
adversely affecting the Indian units. Chinese goods are not only
affecting the domestic business and Indian market but also affecting
the export market of our country. Indian goods are being replaced by
‘Made in China’ label both in India as well as abroad. Made in
China label is slowly capturing every segment of Indian market.
The need of the hour is to support "Make in India"
Initiative and boycott the usage of Chinese products.
You
are planning to open a 55,000 square feet manufacturing facility in
Gujarat. Please elaborate.
Nirav Patel: The brand which has started its voyage
with imports of LED TVs is geared up to set up its own state of the
art manufacturing facility at Ghumasan Village, Taluka: Kadi, Dist.
Mehsana (North Gujarat) to manufacture LED TVs. The proposed new
plant will come up on SH41 State Highway, 50 KMs from Ahmedabad and
equipped to produce 6, 00, 000 units pa of LED Televisions. In
addition to LED Televisions, Abaj has also debuted in other consumer
durable categories including ACs, Washing Machines and Sound System
etc.
The company will invest about Rs.54 crores in this plant. The company
today boasts of making volumes as high as 7000-8000 units per month.
And definitely, this plant will double up the capacity.
The manufacturing facility is likely to be operational by July 2018.
The investment in line with the government’s ‘Make in India’
initiative to produce energy efficient and innovative products for
the Indian market. The land has been procured and by the end of first
quarter of 2018-19 the first phase of the plant will be ready. In
addition to building a state-of-the-art facility, we are committed to
creating a world-class manufacturing ecosystem in the region, with a
base of globally benchmarked vendors and suppliers, which will
together generate over 100 new jobs, thereby accelerating the
socio-economic progress in the state.
Please share your future plans with
our readers.
Nirav Patel: Pan India Expansion: Abaj is currently operating in 8 states
like Gujarat, Maharashtra, Punjab, Chhattisgarh, Uttar Pradesh,
Madhya Pradesh, Rajasthan and Tamil Nadu. Further, the company will
be expanding operations in all major metro and non-metro cities
including Karnataka, Andhra Pradesh, Maharashtra, Kolkata, Bihar,
Jharkhand, Greater Punjab and Delhi NCR. The company intends to be
present across India by the end of the year.
Revenue: The
Company is growing at 259 percent annually and clocked revenue of
over 60 crores last fiscal. It is expecting a turnover of 150 crores
by 2018-2019.
Manufacturing in India: The brand which
has started its voyage with imports of LED TVs is geared up to set up
its own state of the art manufacturing facility at Ghumasan Village,
Taluka: Kadi, Dist. Mehsana (North Gujarat) to manufacture LED TVs.
The proposed new plant will come up on SH41 State Highway, 50 KMs
from Ahmedabad and equipped to produce 6, 00, 000 units pa of LED
Televisions. In addition to LED Televisions, Abaj has also debuted in
other consumer durable categories including ACs, Washing Machines and
Sound System etc.
The company will invest about Rs.54
crores in this plant. The company today boasts of making volumes as
high as 7000-8000 units per month. And definitely, this plant will
double up the capacity.
The manufacturing facility is
likely to be operational by July 2018. The investment in line with
the government’s ‘Make in India’ initiative to produce energy
efficient and innovative products for the Indian market. The land has
been procured and by the end of first quarter of 2018-19 the first
phase of the plant will be ready. In addition to building a
state-of-the-art facility, we are committed to creating a world-class
manufacturing ecosystem in the region, with a base of globally
benchmarked vendors and suppliers, which will together generate over
100 new jobs, thereby accelerating the socio-economic progress in the
state.
R&D: At present, the R&D of Abaj Group
is based in Ahmadabad. Also, we are planning to start the designing
of products in China as it has world famous designers. The operations
in China will commence in mid-August in 2018.