LARGE apparel companies are turning venture capitalists in order to create additional production capacities, with only a month to go for the phasing out of global textile quotas. They are in the process of funding entrepreneurs who can own and manage manufacturing facilities that will function as satellite outfits.
“We are looking at creating independent manufacturing facilities with a reasonable size. We are in the process of identifying entrepreneurs who can manage the business for us,” said Rajan Hinduja, director of the Bangalore-based Gokuldas Exports. Many large apparel exporters in Bangalore and Chennai have roped in HR consultants to hire CEOs to manage the satellite manufacturing outfits. Industry sources said that companies are offering a 10% stake to the CEO to create a culture of ownership. CEOs will be responsible for managing the bottomline of the outfits that will have the financial backing of apparel majors. Consultants have also zeroed in on some expats.
“We should have new strategies to manage growth. I feel that the best way of doing so is by fostering a culture of ownership. I am in the process of recruiting CEOs for managing manufacturing outfits for large apparel companies,” says V Saraswathi, president & CEO, CeoSearch Global Inc, a Bangalore-based hiring firm. HR firms have started identifying expats, with years of experience in the garment industry, to become CEOs. Professionals from China and Vitenam are mainly being chosen. Industry sources said that professionals from other sectors have proved to be a misfit for the garment industry.