From studying hotel management to leather, how did this dramatic transition happen?
When I entered this business I had absolutely no idea what I wanted to do. Thankfully, through several unsuccessful experiences and great mentors, I discovered an interest in leather and international trade. I learnt the ropes at two tanneries and joined the Netherlands-based Van Hoorn Trading. When I started looking after their India operations I had no finance but gradually got into an open contract. Senate Overseas now partners Van Hoorn and the terms of the payment entail a 30-day time limit. However, I am able to pay up within 20 days too. I love the negotiations, the pressure, the adrenaline high once a deal is closed, the meetings with various business leaders and entrepreneurs and hearing the stories of their lives too. And I’m grateful for the multitude of experiences shared with friends and business partners who trust me to be their preferred supplier.
How did Senate Overseas come about?
Senate Overseas is an international and domestic specialist, importer and supplier of pigskin leather lining in cooperation with Van Hoorn Company. We are a highly experienced company aiming to build a lasting relationship with our customers by providing them with the best customer service in the industry. In order to achieve this, we pay attention to every minute step of the process, from first contact right up to delivery of the high-quality leather products ordered. Our clientele is varied, ranging from small businesses to multinationals, and thanks to our passion for leather and our excellent business instinct, we’re growing every year. The minimum lead time required to supply the leather is 10 days and the maximum could be 45 days. Last year we grew by 40 per cent, and we usually maintain a 25-30 per cent growth annually.
What is your long-term sustainable competitive advantage?
We believe in the principle of economy of scale to optimise costs against best quality. To achieve this we have a 2 million sq ft fully stocked warehouse in Agra, which our competition lacks. Another warehouse, spread over 4500 sq ft, is set to open at EPIP Agra. With this the annual import is expected to go up to around 7-8 million sq ft of leather.
What type of product range and import strategy have you worked out for the present year with the euro and dollar shooting up?
We mainly deal in pigskin lining and supply to exporters catering to the global market. Some of our clients are brands like Deichmann, Bata Europe, Bugatti, Clarks, Birkenstock, Jackwolfskin etc. As for fluctuating euro or dollar, it is a change in global economy which no one can escape from. We believe in long-term strategy and so we are always open to discuss contracts in order to fix prices and delivery times.
You source a bulk of the leather from outside the country. Could you mention some differences that make leather from outside the country far superior to ours?
Firstly, it’s the bulk availability of pigs which helps in getting big volumes of leather. Secondly, tanneries abroad have big drums or larger capacity. Selection of skins is also better there and price is a big factor as in India production of leather is too expensive. Lastly, size of skins is around 16 feet which gives good cutting value to manufacturers.
What are the types of leather that you supply?
We supply the following: 1. Full grain; 2. Pigsplit glazed; 3. Pigsplit velour; 4. Economy pigskin; 5. Chrome-free tanned - full grain/ glazed.
What are the problems that aflict the domestic leather industry?
Apart from the country’s current economic situation, it is the increasing price of raw hides which worries us. Sometimes our competitors come up with cheaper prices but that’s mainly by selection of low quality hides. As for the footwear industry, globalisation is the key to a nation’s success. For the footwear industry, this shall open doors for newer business opportunities. It will make the market more competitive which is good for the growth of the industry and our country.
What new products or markets or initiatives have you taken up to set you apart from the competition?
As an international organisation, we believe in being consistent in quality and our strategies are aligned with the ‘quality first’ principle. Some key initiatives taken in the last year were:
- Introduction of economy pig leather in the market, an economical variant of the original leather at lesser cost but without compromising on the feel of the material.
- Introduction of chrome-free tanned pig leather, a newer tanning (synthetic) process that helps in ensuring lining complies with global industry standards.
- Catering to the ever increasing needs of the industry driven by volatile fashion trends like producing neon-coloured lining.
What are your plans for the future?
We are utilising this time of economic instability to plan for the future. A part of our strategy is to expand and build an infrastructure which provides better product delivery to our clients. Main benefits of this expansion will be shorter lead time and cost effective supply.
