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 Samsonite
first came to India six years ago with the objective of emerging
as a leading supplier of hardside luggage to its $740 million (Rs
3,404 crore) markets in the US and Europe, besides India. When it
came to setting up a manufacturing unit, our major concerns centred
around finding a location that provided good infrastructure (easy
availability of land and water, transportation network), effective
communications network, fewer regulatory hassles, better industrial
incentives, and skilled labour. It was also necessary to locate
the plant near a functional and containerised port since we had
big plans to export to Europe and Asia. We roped in Tata Consultancy
Services as advisors, and also sought help from SICOM, a premier
financial institution responsible for catalysing industrial development
and also foreign direct investment into Maharashtra. After extensive
feasibility studies and strategic planning, we decided to set up
the unit at Nashik.
The feedback received from other industrial
investors at that time was that Maharashtra was leading the country's
industrial development scenario and attracted the largest quantum
of investments, both domestic and foreign. The state offered good
infrastructure, excellent educational facilities, trained manpower,
professional work ethics, and a conducive business environment.
In terms of physical infrastructure such as supply and quality of
power, proximity to ports, presence of industrial zones and belts,
support to industrial development and policy implementation, Maharashtra
stood first.
The state scored favourably in terms of government
stability, labour productivity, literacy, and work culture. More
importantly, the cooperation and support demonstrated by the state's
officials and the favourable industrial environment served as the
key deciding factors. The state also offered a variety of incentives
for promoting industrial development. Industries set up in the functional
areas earmarked by the Maharashtra Industrial Development Corporation
received special relief and financial benefits in terms of sales
tax concessions, electricity, and stamp duty exemption. All these
were significant attractions for Samsonite, which was setting up
a greenfield plant.
It's been six years since we set up the plant,
and it has been a smooth going all the way. We have faced tough
negotiations with unions, but then we have always found them to
be very supportive in terms of achieving global standards in quality
and productivity.
The Nashik plant is Samsonite's second-largest
in the world. More than 80 per cent of our plant's production is
exported all over the world, including to very discerning markets
like Europe, the US, Canada, Latin America, Australia, Korea, and
China. Last year, Samsonite decided to relocate its Global abs Design
& Development Center from Belgium to Nashik, another recognition
of the abundant availability of a talent pool in and around Nashik.
Our future plans include increasing the production
capacity at Nashik to meet the growing demand for Samsonite abs
luggage globally. Simultaneously, we are expanding our design and
development capacity to meet the market demand. We are at the threshold
of starting a major design and development project for the Japanese
market. All this, and probably more, is possible with the continued
support of the local administration at Nashik and the state government.
Ramesh Tainwala is Chief Operating Officer,
Samsonite India.
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