Reach Technologies plans new center @ Coimbatore

Bangalore-based Reach Technologies Ltd (RTL), a certified Microsoft partner and a leading integrated IT solutions provider to the soft goods industry, unveiled its Reach Enterprise Resource Planning (ERP) solution customised on Microsoft Dynamics here.

"The all-in-one solution is an attempt to propel the soft goods industry, which is currently facing problems like shifting consumer preferences, reduced time-to-market, and lack of the co-ordination across the supply chain," RTL CEO Shyam Raj said at the event organised to highlight the problems faced by the industry.

The event, jointly sponsored by RTL, Microsoft, Intel and the Tirupur Exporters Association (TEA), highlighted the need for collaborative partnerships between retailers, brands and manufacturers/sub-contractors in the soft goods industry through the strategic use of IT, enabling cluster adoption of IT by Tirupur apparel manufacturers.

"Under the arrangement between Microsoft and RTL for Reach ERP solution, implementation and customisation fee will go to RTL while the license fee will be shared equally by the two companies," Mr Raj told UNI.

Reach ERP, based on the business solution Microsoft Dynamics, will range from Rs 3.5-4 lakh to Rs 2 crore, depending on the usage and functionality of the solutions, and will be implemented in Tirupur in the next four months, Mr Raj added.

"Under the cluster initiative of the Government of India, there are 388 clusters which are industry specific, and Phase I of Microsoft, IT enabling these clusters, include the Tirupur Apparel Industry, Ahmedabad Pharmaceutical companies and the Pune automative component companies, by the end of this year," Microsoft Product Technoloy Specialist Lead Ashish Bhatnagar said.

He also hinted at a chemical manufacturing unit in Ankleshwar, but refused to divulge any details.

On the basis on which the clusters were chosen, he said, "we have a fixed criteria with the National Manufacturing Competitiveness Council (NMCC) and other Goverment organisations on the basis, on which we choose the clusters."

The annual turnover of RTL is over 4 million dollars.

"We expect a conservative 3 million dollar turnover from the Reach ERP solution, alone and are hoping to double the total turnover this fiscal," Mr Raj said.

The company has 450 customers in India, "and we are aiming to take that number to 5,000 by 2009. We have a development centre in Bangalore with around 200 people and are opening another centre in Coimbatore with a 400 capacity in the next nine months.

The company is also scouting acquisitions in North America and Western Europe and to access and tap into the market there.

"Out of the total 120 companies we were looking at for acquisitions abroad, we have shortlisted 120 companies and in the next two months hope to finalise 6-7 million dollar deal in Western Europe. However negotiations are on and details will be available as and when we finalise everything," Mr Raj said.

Tirupur, which is a Rs 8,000 crore cluster at present is aiming at being worth Rs 15,000 crore in the next five years time, besides breaking it's image from being a 'nightwear destination' to specialise in complete range of knitwear, Textile and Apparel Consultant G Somasundaram said at the meet.

As an emerging apparel and textile market, we are aiming at Tirupur achieving a 8 per cent share in the world textile trade and overall growth to reach 85 billion dollars by 2010, he added.

The solutions will IT enable the entire apparel value chain and soft goods retailers, brands and manufacturers compress mind-to-market times more quickly and at lower cost than with existing solutions in the market today.

Reach ERP will effectively streamlining and integrating customer service, design, sampling, merchandising, production, distribution and financial processes and optimally utilise resources across the enterprise, to help it deliver products faster, better and cheaper.

Tirupur is the second largest textile hub with a cluster of apparel manufacturers exporting more than 2 billion dollars worth of merchandise to Europe and the US markets.

The city is a leading source of hoisery knitted garments, casual wear and sportswear, and besides generating a majority of foreign exchange due to its exports, also accounts for 90 per cent of India's cotton knitwear export.

The textile and apparel industry contributes 14 per cent of the total industrial production in the country, and 56 per cent of India's total knitwear exports come from Tirupur. The total apparel market in India currently stands at Rs 400 crore, while the global apparel and textile market stands at 4,500 billion dollars.

"The Indian soft goods industry is the largest growing export market to the US and Europe and Tirupur, a large cluster of future-oriented apparel companies, can be seen as a knitwear leader through the strategic use of IT, which is a source of competitive advantage and can help tap new opportunities," TEA President A Sakthivel said.

The global soft goods industry is currently worth 1.2 trillion dollars.

RTL, which currently sells its products in China, Hongkong, Singapore and India, is in the process of setting up base in London, in the next 2 months, offers pre-packaged products, custom solutions, consulting services and offshore development facilities for the retail, apparel, textile, home furnishings, footwear and leather accessories and allied industries.

Courtesy : The Hindu