Mr Amit Poddar entered in trading and distribution business during Year 2000. He started with wood rippers & decorative laminates trading and quickly learnt the decorative market needs and distribution point relevance. He very soon adopted the organised working model in decorative surface products as well as allied products related to panel and décor industry. By year 2020, Mr Amit Poddar achieved his mission 2.0 lakh by crossing an average volume of 2 lakh sheets of decorative laminates and materials every month. Today, RSLD is one of the most admired and respected distribution firm in Karnataka who are dealing with multiple laminates companies and related products. They strongly believe in concept of brand building as he was very much inspired by being very first associated with Amulya Mica, who their mindset and after that unorganised, short term working became a history for them. Talking to the Ply Reporter for its Market Movers column, Mr Amit Poddar narrated his journey and the turning points that played an important role for the growth and can be vital for any dealer/ distributor. Excerpts.
“The owner and retailers’ relation and bonding is not possible at factory end that’s why wholesalers role cannot be diminished’
When did you enter in wood panel/decor business? Do brief us about the turning points and present state of your enterprise?
We entered in laminate and related product business in 2000 with my cousin Mr Bikash Poddar. As my elder brother was in plywood business (Shyam plywoods) we decided to enter in decorative laminate and wooden rippers segment. Our turning point was, starting business with Amulya Mica in year 2004. Working with Amulya Mica changed our mind set, way of working and business volumes. We began to understand the concept and importance of a brand from them. Because of that my inspiration grew, we found a motive with volumes and probably because of which, today I believe we are doing great with 2,00,000 sheets per month that include various laminates companies.
What changes have you observed during last 10 years that changed the distribution business in your region?
During last 10 years, businesses and business models both have changed drastically and to continue to survive and grow in these changing markets we also had to observe lot of changes. We felt the need of very strong infrastructure in the company at organization. Like we improved drastically upon storage area and infrastructure, planned inclusion of adequate man power and then skilled them by training. The efforts helped us to double our sales and effectiveness in 3 to 4 years time. Currently we have around 1,00,000 sq ft area for storage, with 26 senior sales personals managers on our own firm payroll. Each of them is managing different brand and products in various regions. Now we are also having a team size of 20 + trained office employees and around 70+ skilled workers doing their jobs efficiently. The entire restructuring was needed to keep pace with changing business environment and growing competition in markets. We feel proud and motivated that we took right step at appropriate time.
As a wholesaler, what are the changes RSL is adopting?
RADHESHYAM as a wholesaler is undergoing with lot of professional changes. We are a 100% billing company with lot of modern technology used by the company and sales team. For examples, we use GPL software in all 40 auto & commercial vehicles to be tracked by customers at their end and all accounts is done on app with paper less emails or watts app statements for payments to Dealers.
Lot of distributors are selling 0.92mm without informing dealers and consumers” and hence market is growing. But it is not good for manufacturers as margins drastically fall”
Secondly, we have opened two additional depots in Bangalore and Mysore and the other in Hubli. We are shortly going to open in Mangalore. As a whole seller, we are evolving by expanding and increasing our grip with markets.
Since a couple of years, factories approach dealers through their warehouses. Do the role of stockist diminishing with rising competition?
No, I don't believe that role of stockists will diminish or it is possible in laminate segment. In fact, companies and we are complementing each other. As a stockist, there are some important work that needs local attention like day to day sales collections, customer relationships and service issues etc. Most important is multiple items supplied by stockists under one roof which is not possible by any company. Last but not the least, the owner and retailers’ relation and bonding is not possible at factory end.
What change do you observe in laminate decor trade after COVID-19 pandemic?
There are lot of changes happening in Laminates market like, Non branded Laminates are doing better compared to branded Laminates because of pricing or cost cutting factors. The growth of OEM’s post covid is leading to small projects @ 5L projects where again non-branded players are taking the benefit of pricing what I believe. And third, the goods stocks with good service will help you to grow at present market.
What do you think about 0.92 and its future and other lower thickness of laminates?
In my opinion 0.92mm is the shift already happening in market without dealers’ information. Because of competition, stockists are pushing the manufacturer for lower prices @ 0.92mm thickness and lot of distributors are selling 0.92mm without informing dealers and consumers. I believe 0.92mm will stay and obviously it is not the good news for manufacturer as the margins will go down drastically. They will find difficult to sustain high expenses against it. As exports are largely below 0.8mm so I believe 1 mm will have its own difficulty.
How do you see the 1.25 mm laminate market?
I believe 1.25 mm laminate is temporary as the consumers are not having any benefits out of it and stockists are not happy as very low volumes and stocks are too high. So I don't think this will last too long but only possibilities if manufacturer pass on rates benefits to dealers, dealers to market then only some good news is possible in 1.25 mm laminates segment.
What is the credit period at present and what it will be in future?
Credit period before Covid was around 3 to 4 months but after Covid, it became cash & carry only with no credit. But, as we discussed non-banded players are growing, especially in MORBI Laminates companies are give credit against sales and pay with minimum stocks because 2000 trucks are dispatched per day of tiles from Morbi so they are using this to their benefits and this will remain so for non branded companies.
There is a trend in the market that a lot of certification is being given for quality assurance like ISI, green guard, antifungal, antibacterial and antiviral etc. So, what are your take in this direction?
Agreed! These days, lot of certification is being for quality purposes for quality, antibacterial etc but this certification are good at Architect & projects levels but at consumers level it doesn't make much of difference. This is just a tool to try and sell better compared to nonbranded companies.
How do you see the future of laminates v/s PVC laminates?
PVC LAMINATES are here to stay but I don't believe they will or they are cutting the market share of paper based laminates. PVC has its own limitations compared to normal laminates and its textures, paper designs & laminates life too. In PVC laminates I believe there are lot of limitations like bending or cracking, desalination of films etc. Laminates have fought well and replaced Veneers with its innovative and I believe paper laminates don’t have any competition so far.
Radheshyam Laminates & Decors Pvt Ltd
Bangalore based Radheshyam Laminates & Decors Pvt Ltd is an ultimate space & décor solutions provider with its unique identification in the industry. With over 20 years of experience Radheshyam Laminates is a multi-brand company with vast range of 4500+ laminate. Having a display center and stock space of over 50,000 sq. ft makes RadheShyam Laminates mesmerizing everyone with an excellent network of over 2500+ dealers across Karnataka. Currently they are selling 16+ certified, reputed & noteworthy brands from all over the world. RadheShyam Laminates & Decors is ISO 9001:2015 (QMS) Certified and is well known for on-time delivery and customers satisfaction and keep adding new brands to their stable. They also have their sales and support offices at Hubli - Shyam Laminates and Mysore - Keshav Enterprises.
What is your vision ahead and what is your suggestion to the dealers at present?
My vision for 2021 is to expand and organize from local to National and take Radheshyam Laminates to all major states in India under the banner of Radheshyam Laminates in next 5 years and for that we are entering in Tamilnadu in April 2021.
My suggestion to my fellow traders is things are changing drastically in our trade and it’s time for us to change our work culture too. Few things to change is eminent like All need to upgrade ourselves to full billing so that the dependency is less on manpower on we all really on RTGS, NFT etc.
Try and built infrastructure for your warehouse if possible, upgrade your logistics for laminates delivery such as have your own vehicles if possible. Covid market is tough so, we can sell against payments which we all need to continue in current situation and improve our payments cycle. Wish you all luck, happy selling.