1

Why is it that Kerala lacks behind in the industrial field? IsitbecauseoflackofCapitalresources? Skilledlabour?Infrastructure?Oranegativemind set?oracombinationofallofthese?

3/8/2011

VKC GROUP

In my view the first and foremost change required is inthemindset. In spite of all efforts, we have not been able to convincethegeneralpublicthatindustrialisationisa desirablegoal,thebenefitsofwhichwillflowoverto allsectionsofthesociety. Time and again we have witnessed many a project being shelved or unable to take off because of frivolous objections from a section of the home crowd.Mostoftentheobjectionraisedaretrivialand capableofaquicksolution. Theimportantthingis,Educatethemandtakethem alongwithus.
3/8/2011 VKC GROUP 3

The next important factor to be tackled is Infrastructure development. We have the recent example of the National Highway widening, which could not take up as envisaged and we had to settle foranarrowversionof45mbecauseoftheobjections fromasectionofthepublic. These objections could have been avoided by a two pronged approach of creating a positive attitude in the minds of the people and simultaneously offering an attractive package for the affected people. Thus a winwinsituationcouldhavebeencreated.

3/8/2011

VKC GROUP

Very often a question is posed to me as to how our group could survive in a so called hostile state like Keralaandreachthepositionitpresentlyoccupies. Iwouldliketosharewithyousomeofmyexperiences andthemanagementprinciplesfollowedbyus. As in the case of conventional SMEs we were managing the units all by ourselves with no role for ourstaffandworkersinthedecisionmakingprocess. In other words their roles were confined to merely executingourdecisions. This could be compared to the conventional locomotive where one engine pulls up all other bogies.
3/8/2011 VKC GROUP 5

Initially when we conceived a new unit, a project report was prepared and the responsibility for the implementationofthesamewasgiventoapromoter director. It was his duty to implement the plan as conceived and once the objective was achieved everyone was satisfied. Theseriousdefectofthiswasthatnobodywasaware of how much was missed out. May be with a little more effort, we could have increased the production which would have been easily absorbed by the market.
VKC GROUP

3/8/2011

Gradually we decided to switch over to a new managementsetup. We set up a competent team of professionals who wouldtaketheinitiativeforsettingtheirowntargets. Theirinvolvementinthedecisionmakingprocessled tospontaneousactivitiesandtheresultswerebeyond ourexpectations. This was an important turning point in our growth, the result achieved by the empowerment of our teammembers.
3/8/2011 VKC GROUP 7

ItcouldbecomparedtotheShinkansen (bullettrain) whereeachbogyispoweredbyitsownmotor. When compared to the conventional locomotive whichattainsamaximumspeedofsay100 km/hr,the Shinkansen couldeasilytouch400500 km/hr. This is based on the principle that, when the team playsanimportantroleindecisionmaking,theirrole inimplementationwillalsobegreater.

3/8/2011

VKC GROUP

Inearlierdays,
Cost + Profit = Price

Now,
Price Cost = Profit

Thepriceisfixedbythemarketforcesandthechallenge todayisCostreductionbyallavailablemethods. Our motto which we have been constantly abiding right from the very inception is Quality at reasonable price.
3/8/2011 VKC GROUP 9

Another land mark in our management system was the introduction of incentive scheme for our work force. A scientifically devised incentive scheme can work wondersforachievingtargets. Equally important is timely appreciation and recognitionofgoodworkputinbyemployees. When an employee takes pride in his achievement it synergizes and acts as an incentive for further achievement.
3/8/2011 VKC GROUP 10

Onthemarketingfrontweintroducedanewscheme which resulted in establishing a strong relationship withtheretailers.Hitherto,alloursalesschemeswere confined to the wholesalers who were given prizes and gifts for target achievements. According to the new scheme, we targeted the retailers who would be selectedonevaluationofthefollowing a)thesalesvolume b)display c)commitmentoftheretailerandhisstaffstoour products d)performanceinthearea.
3/8/2011 VKC GROUP 11

Theresultwasthattheretailersidentifiedthemselves as part of our group and took all out efforts for improvingthesaleofourproducts.Arippleeffectwas created and there was unprecedented achievements onthesalesside. This played a major role in elevating our group to rank one among the PU footwear manufacturers in thecountry. More important was the close bondage built up with theretailers.Eventodaythisinnovativesalesscheme standsoutasoneofthebestinthehistoryoffootwear industry.
3/8/2011 VKC GROUP 12

VKC GROUPTURNOVER
900 800 700 600 500 400 300 200 100 0 200506 200607 200708 200809 200910 201011
48.18 75.91 69.79 106.75 113.26 153.63 193.70 174.13 279.33 259.74 418.26 395.00

AMOUNT(CRORE) PAIRS(LAKHS)

13

Our group was in the fore front in imbibing new technologies.ThereareseveralFirsts toourcreditin thefootwearindustrystartingfromuseofvirginPVC, airinjectedPVCandEVAFootwear. Althoughwewerealate entrantinthePUsectorwe maderapidstridesandsoonoccupiedtheNo.1 slot. So this is another principle that we strictly follow in ourgroupBringinthelatesttechnologyasfastaswe can" Inaconsumermarketwherepreferenceschangevery fast, there is no room for complacency. The pulse of themarketmustbefeltcontinuouslyandappropriate changesmadeinresponsetoit.
3/8/2011 VKC GROUP 14

3/8/2011

Soon after we ventured into the PU sector, the idea of conducting an International Exhibition cum seminar named 'PUExpo' was thought of. This was to be conductedwithKSSIAandtheteameffortsfromallother footwearmanufacturingunitsinCalicut. This turned out to be a meeting place of machinery manufactures, mould makers, raw material suppliers, techniciansfromEurope,Taiwan,Chinaandotherpartsof thecountry. This paved the way for many new entrepreneurs to venture into the field and Calicut has become a 'happeningplace'forthefootwearindustryaccountingfor 25 %ofAllIndiaproductioninthePUsector.Becauseof all these favorable factors Calicut has been selected for clusterdevelopmentandaconsortiumisbeingpromoted underKSSIAFootwearSectorCommittee.
VKC GROUP

15

With a view to provide employment especially for ladies a Training Center was established by the combined efforts of the units for imparting training. Thisunitisfunctioningwellandwasinstrumentalin employing600 trainees.

3/8/2011

VKC GROUP

16

To make the charitable activities more focused, a charitable institution named Veekesy Charitable Foundation was set up and this is doing exemplary serviceintheeducationsector.

3/8/2011

VKC GROUP

17

Our group has set up manufacturing units in the neighbouring states Tamilnadu and Karnataka and recentlywehaveventuredintoGujarat. In a gathering like this it would be useful and beneficialtosharemyexperiencesintheseplacesand comparethesituationtoourownstate. Themoststrikingdistinctionweexperiencedwasthat theindustrialcultureamongthegeneralpublicisfar betterintheotherstates.
3/8/2011 VKC GROUP 18

TAMILNADU KARNATAKA GUJARATH KERALA 1 2 3 LandAvailability Sufficient forIndustry LandCost Power GoneUp Insufficient (3hourcutat present) NotAvailable Scarce Good Good Sufficient GoneUp Insufficient Sufficient High Notset apart Reasonable

Availableat Availableat Highercost Reasonable cost Not Available Available Good Good Not Available Available Inadequate Needtobe improved Needtobe liberalised
19

4 5 6 7

Labour Water Infrastructure Supportfrom Govt Officials

NotAvailable Available Good Good

Statutory Easy formalitiesto setupanindustry

VKC GROUP

Easy

Easy

3/8/2011

THANKYOU

3/8/2011

VKC GROUP

20