In the pipeline

INTERVIEW: Sukumar Srinivas

'We are looking at Rs 1000-crore turnover by 2010'

Meet the hotshot IIM-A graduate who has created a brand called 'Shankara' being a distributor of steel tubes and pipes. Sukumar Srinivas, Managing Director, Shankara Pipes India Pvt Ltd., is setting benchmarks in his sphere. For instance, he has set up an inhouse quality lab, plans to get into retailing and has grabbed many kudos along the way.

Your company has created quite a niche in its space, how has this been achieved?

Shankara Pipes is among the largest distributors of wide range of steel tubes and pipes. We are a Rs 450-crore, ISO 9001 company and started business in 1995, Bangalore.

The group is professionally managed and the network includes computerised, fully equipped branches with warehousing facilities at Bangalore, Mangalore, Hubli, Kochi, Calicut, Chennai, Salem, Coimbatore, Hosur, Hyderabad, Vijayawada, Vizag, Mumbai, Pune, Goa and Ahmedabad. We sell 9000 M.T of steel tubes every month. We are a 300-strong team and above all, have over 10,000 satisfied customers.

What kind of change and innovation is possible in your kind of business?

The steel tube industry is a classic, brick-and-mortar business. Till a decade ago, distribution and retailing had a laid-back approach. In this milieu, we have made some dramatic innovations. For instance, we studied and segmented markets to create an organised retail network. Established professional management and were the first steel tube distribution company to get an ISO 9001 certification. We were the first to setup an in-house quality lab, and first to set up 250,000 sq ft warehousing space across 17 locations. We were the first to explore new markets and establish new uses of steel tubes. Finally, we managed to establish the Shankara Brand, despite not being a manufacturer. Some of our important customer's include Tata Motors, L&T Construction, IVRCL, TVS Motors, Ashok Leyland Ancillaries, Bajaj Auto Ancillaries and Patni Computers among others.

How can SMEs survive these tough times?

SMEs can easily do well, as they offer better quality of individualised service. Very large organisation lose their capacity to do this. SMEs should focus on niche areas and built capabilities. If the area of business is still difficult, they have to explore possibilities to become an outsourcing arm for large businesses.

What is the biggest challenge to growth today?

Finding the right person for the right job is the biggest challenge for us and most organisations today. In our line of business it is difficult to attract exceptional talent. However, our HR policy is very personalised and focuses on individual needs. We try to give our employees a good working environment (which is not available in the industry) and a home, away from home. This seems to have helped us.

Have you explored franchising?

We have our own outlets. Franchising may not suit a business like ours where the business margins are very low. In general, however, franchising is one of the fastest ways to grow and expand market reach.

What are your future targets?

We hope to tap allied business in steel and retail steel solutions under one roof. In fact, we have already opened five pilot outlets in Bangalore and Hyderabad. Other than this, we plan to establish manufacturing services for value addition and we are also looking at expanding distribution to overseas markets. On cards is also an IPO and we are looking at Rs 1000-crore turnover by 2010.