In the first phase, centres have opened in Jaipur, Hyderabad and Varanasi
With a vision to digitise the MSMEs in India for global trade, Lal10, a cross-border B2B tech-enabled full-stack platform, has announced that it will launch seven satellite offices across seven states by the end of June 2023. With 2292 MSMEs in its fold, Lal10 has become the largest pan-India aggregator of textile factories.
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The MSME sector of India is one of the biggest contributors to the nation's GDP and the export markets, with a 30 percent and 50 per cent share respectively. Digitising these factories, Lal10 claims to be the largest cloud-export house from India to the world. This expansion is in line with the start-up's strategy to leverage technology and transparent supply chains to unleash the latent potential of these MSMEs for global trade.
It is opening offices in Varanasi, Hyderabad, Kolkata, Ahmedabad, Indore, Jaipur, and Noida, all of which are close to the country's major centres for textile production. These centres are at the mouth of manufacturing, where the company will digitise these textile factories. The supporting regional offices will be empowered with a Production Manager who will head operations, a Quality Control Manager who will be responsible for uniform product quality as per global standards and the Catalogue Manager who will look after up-skilling the manufacturers and teaching them how to 'come online' and reap the benefits of economies of scale in raw material and finance sourcing, efficient inventory management while being updated on global design trends.
This expansion is in keeping with the scale planned by Lal10 to service its midsize to large-scale global buyers in the US, UK, Japan and the Middle East. With its current base of MSMEs already on-boarded with an unutilised capacity of $600M, Lal10 is already among the top export houses in the country. It aims to add another 12,500 Indian MSME partners with an output of $1 billion in the next 3-4 years.
Commenting on this expansion, Maneet Gohil, CEO and Co-Founder, Lal10 said, "With such huge global demand for textiles, Indian MSMEs have enormous potential to grab a larger share of the export market. There is an immediate need to enable more textile hubs from India to plug this demand and provide a large assortment of products. The traditional Indian textile hubs are only contributing to domestic markets. We are leveraging technology to map these factories on production, streamline processes for quality and design and make the systemic changes which were due for Indian manufacturing to go global. Tech built to support our regional operational expertise at the satellite offices is helping us build for scale. We will be the largest export house from India in a span of the next 18 months.”
Currently, there is a huge discrepancy between the few big exporter belts of the country and the rest of the MSMEs which have tremendous production capacity but lose out due to systemic inefficiencies which are easily addressed through transparent technology solutions. Lal10 consolidates the raw material demand of our MSMEs helping them to get the best quality inputs at the lowest costs, eliminating the long line of middlemen. It also connects them to banks and NBFCs providing them affordable credit which is at least 10-15 per cent cheaper than what they currently get from the exploitative informal financing sector. To keep pace with global trends we also upskill our MSMEs with 300-400 designs per month.
Lal10's revenues increased by 1200% in the previous year with the current MoM growth clocking at 70-80 per cent. The company strives to provide the broadest selection of goods to its customers from all parts of the nation through an exhaustively mapped out, transparent supply chain and now services 200+ mid-size to large buyers and 12+ marquee brands in the United States, United Kingdom, Japan and the Middle East. Satellite offices in Jaipur, Hyderabad, Noida and Varanasi are already live with 3 more centres set to go live shortly.
It is opening offices in Varanasi, Hyderabad, Kolkata, Ahmedabad, Indore, Jaipur, and Noida, all of which are close to the country's major centres for textile production. These centres are at the mouth of manufacturing, where the company will digitise these textile factories. The supporting regional offices will be empowered with a Production Manager who will head operations, a Quality Control Manager who will be responsible for uniform product quality as per global standards and the Catalogue Manager who will look after up-skilling the manufacturers and teaching them how to 'come online' and reap the benefits of economies of scale in raw material and finance sourcing, efficient inventory management while being updated on global design trends.
This expansion is in keeping with the scale planned by Lal10 to service its midsize to large-scale global buyers in the US, UK, Japan and the Middle East. With its current base of MSMEs already on-boarded with an unutilised capacity of $600M, Lal10 is already among the top export houses in the country. It aims to add another 12,500 Indian MSME partners with an output of $1 billion in the next 3-4 years.
Commenting on this expansion, Maneet Gohil, CEO and Co-Founder, Lal10 said, "With such huge global demand for textiles, Indian MSMEs have enormous potential to grab a larger share of the export market. There is an immediate need to enable more textile hubs from India to plug this demand and provide a large assortment of products. The traditional Indian textile hubs are only contributing to domestic markets. We are leveraging technology to map these factories on production, streamline processes for quality and design and make the systemic changes which were due for Indian manufacturing to go global. Tech built to support our regional operational expertise at the satellite offices is helping us build for scale. We will be the largest export house from India in a span of the next 18 months.”
Currently, there is a huge discrepancy between the few big exporter belts of the country and the rest of the MSMEs which have tremendous production capacity but lose out due to systemic inefficiencies which are easily addressed through transparent technology solutions. Lal10 consolidates the raw material demand of our MSMEs helping them to get the best quality inputs at the lowest costs, eliminating the long line of middlemen. It also connects them to banks and NBFCs providing them affordable credit which is at least 10-15 per cent cheaper than what they currently get from the exploitative informal financing sector. To keep pace with global trends we also upskill our MSMEs with 300-400 designs per month.
Lal10's revenues increased by 1200% in the previous year with the current MoM growth clocking at 70-80 per cent. The company strives to provide the broadest selection of goods to its customers from all parts of the nation through an exhaustively mapped out, transparent supply chain and now services 200+ mid-size to large buyers and 12+ marquee brands in the United States, United Kingdom, Japan and the Middle East. Satellite offices in Jaipur, Hyderabad, Noida and Varanasi are already live with 3 more centres set to go live shortly.
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