Our future plan is to continue our growth momentum and achieve about USD one billion in revenue by 2015-2016.
Synopsis:
PDS Multinational Group is a subsidiary of Pearl Global Industries Limited (previously known as House of Pearl Fashions limited).
Mr. Pallak Seth heads PDS Multinational Group's strategy and development initiatives. He is currently the Vice Chairman and Managing Director of PDS Multinational Group and launched House of Pearl Fashions' design sourcing and distribution business in 1999 with establishment of Norwest Industries Ltd. in Hong Kong.
With a growing global network of over 1000 manufacturing partners, PDS Multinational Group manages supply chains for major brands and retailers worldwide.
Headquartered in Hong Kong, PDS Multinational Group's global network of 25 offices and distribution centres covers over five continents.
Today, PDS Multinational manages the supply chain of major retailers and brands around the world and deals in various consumer goods ranging from apparel, footwear, home products and beauty.
In an interview with Fibre2Fashion, Mr. Pallak Seth tells about the customized services provided by PDS Multinational, as well as its business model and constantly expanding global sourcing network.
Excerpts:
Can you please tell us about the progress and journey of PDS Multinational Group?
PDS Multinational Group’s flagship company Norwest Industries Limited was formed in Hong Kong in 1999. The business has strong relationships with key retailers supplying apparel, footwear, home and beauty products.
We have organically grown at 30 percent CAGR a year since inception and we are forecasting a turnover of USD 650 m for calendar year 2012-2013. Besides, we have a strong pool of over 1,000 outsourced factories in the various sourcing markets of the world.
Our customers are some of the leading retailers in Europe, Canada, South America, Australia, Middle East and South Africa. We are also planning to start operations in the US in the latter part of this year. PDS Multinational also has investments in retail business in the Middle East in partnership with George Davies.
You are operating in 15 countries and working with several manufacturers. Why do manufacturers prefer to work with PDS Multinational?
PDS group is operating 25 offices in 15 countries. Manufacturers do not have the reach that
PDS Multinational has or the customer relationship management, product development and marketing capabilities of PDS.
Manufactures also prefer to work with PDS as we provide various pre-order financing options, open LC on sight whereas most retailers today are offering longer payment terms like 60 or 90 days.
We take away most of the front end work required, book the business, and offer orders hassle free to factories. Manufactures can then focus on their strength - running their factories efficiently.
Your company has given more than 30 percent CAGR in top-line in last four years. This is highest in the industry. Therefore, please tell us that how did you make it happen.
We are company run on systems, strong SOP and most importantly a strong sense of entrepreneurship. Unlike most apparel manufactures, we are 100 percent professionally run company and an employer of choice for all textile/supply chain professionals.
We have strong incentive schemes in place that drives our team to excel. Finally, we are a truly multinational company and have management team comprising of people from various nationalities, backgrounds, ethnicities. We promote diversity in our group and this makes us a unique team, and consequently a business that facilitates growth.
What is ‘Integrated Global Supply Chain Solution’? Please, explain your business model.
“Integrated global supply chain solutions” refers to providing a comprehensive end-to-end service to the retailers. PDS Multinational is a design led business and over 90 percent of sales result from product designed by in-house design and product development teams.
We also have strong sourcing offices managing product development, merchandising, and quality control in the main sourcing markets. Additionally, we are providing complete logistical solutions to our customers as well as we have warehousing in key retail markets such as the UK, Germany, and Canada etc.
You have your own product development and design centre, which is based in United Kingdom. How many people are working there? And, what is there that inspired you to establish your development and design centre there?
The group operates design studios in various countries in addition to the UK. We are employing over 350 designers and product development experts across China, Hong Kong, Sri Lanka, Bangladesh, Turkey, UK, Spain, Germany, Canada, Australia and Chile. Our US design studio will open in the latter part of 2012.
How the great top-line growth will be translated into bottom-line results?
The PDS model is scalable and profitable. We run an asset light model and have about 1200 people contributing to the USD 620m sales. If we were a manufacturing company we would need at least 60,000 people contributing to this level of turnover. We are not stuck in any particular location and can adapt our business model fairly quickly.
PDS Multinational Group Companies that are over three years old normally achieve a five percent bottom line and this comes from driving efficiencies and cost savings. Customers demand lower prices every season and the only way we are able to achieve a healthy bottom line is driven by offering great design input and competitive global sourcing.
How do you maintain to stand ahead of your competitors?
Generally, our competitors are small to medium sized suppliers in various markets we operate in. However, on a global scale there are only few companies which are competing with us and these companies are
Li and Fung, and
William E. Connor.
Please, tell us about the customized services provided by PDS Multinational. And, why do big brands prefer to give orders to PDS Multinational?
PDS is a bridge between manufactures in Asia who are not capable of dealing directly with retailers due to lack of finance, product development and marketing capabilities.
We also operate a virtual manufacturing model and provide raw material free of cost to the factories. Retailers today are consolidating their supply base; therefore dealing with
PDS Multinational is a good option for them as we provide end to end solution.
PDS works as the eyes and ears of the retailers in the sourcing markets and ensures that retailers get excellent value which comprises of great product, excellent quality, sharp prices and timely delivery.
Please, tell us your future plans
Our future plan is to continue our growth momentum and achieve about USD one billion in revenue by 2015-2016. We are also looking at strengthening our offer in non-apparel categories and establishing a US business.
According to you, what is there that is required to be successful in business? What is your mantra for success?
To succeed in business one must be focused, have an appetite for risk, and have a strong vision.
