This Kerala-based company is looking to climb the top spot in PVC pipe manufacturing
When Abdul Jabbar started working in the PVC pipe manufacturing industry 30 years ago, he never thought he would one day launch one of the top companies in Kerala.
With a motto to provide high-quality PVC pipes and other related gears to the industries, MM Abdul Jabbar (54) started Vajra Plastics in 2004 in Ernakulam, Kerala. His son MA Shafi helps him in the business.
Abdul was working with some of the top manufacturing companies in Kerala before he started Vajra Plastics. He initially started with a single pipe manufacturing machine, with an investment of Rs 17 lakh.
Vajra Plastics manufacturing facility
According to a Research and Markets report, the India PVC pipe market was valued at $3,159 million in 2016 and is expected to reach $6,224 million by 2023, growing at a CAGR of 10.2 percent from 2017 to 2023.
Abdul has so far invested around Rs 1.25 crore in the venture and has directly employed more than 400 people. The company is now seeing an annual turnover of around Rs 74 crore.
Operating under the brand name Aizar, the company manufactures products such as PVC pipes, pipe fittings, hoses, water tank, CPVC pipes, HDPE pipes, wiring pipes, etc.
However, the company has now diversified into different segments such as pipe fittings, rainwater gutters, water tanks etc. Abdul Jabbar says, the company’s products are known in the industry and the market for their reliability. Vajra is currently supplying its products to many industries such as building and construction (Cochin Metro), rural water supply, irrigation and rainwater harvesting.
The business
In order to manage the different critical areas in the business, the company has an Enterprise Resource Planning (ERP) system that synchronises the entire process from procurement to trading and the system covers all the segments of the firm i.e, production, logistic, sales, delivery and accounting. He says,
“We provide quality products at competitive prices with a fast delivery rate. Our delivery mechanism, including loading and route planning, are completely digitalised and automated. This helps in an efficient tracking mechanism and enables us to meet the customer’s expectations on time."
The company is conducting district, taluk and village-based market feasibility studies and identifies the potential markets and its segments for customer acquisition.
“We do work with other PVC product manufacturing companies for a few specialised products created just to meet specific consumer needs,” he says.
Abdul Jabbar won the ‘Best Entrepreneur’ award in Kerala for 2014-15 and was also conferred with the Paristhithi Janakeeya Award for 2015, by the Government of Kerala.
Challenges
In the past 14 years, the company has faced a number of setbacks and challenges and the journey hasn’t been easy. Jabbar says, “The unpredictable price variation in raw materials is something that we have to deal with all the time, along with the coming up of new technologies, new innovations and changes in techniques. The market trends also tend to change at a very fast rate and the business needs to be updated and keep up with all the dynamic changes and new trends.”
He says, the limited availability of land is also hampering its future expansion plans.
Abdul Jabbar expects the government to come up with industry-friendly schemes. He says, “The government must retain and provide new and better infrastructure for the growth of the MSMEs and the industrial areas. They should also create more relaxed and business-friendly schemes and policies.”
Future Plans
“We want to diversify in the next five years. Our vision is to increase our goodwill and reputation throughout the country and become the top PVC Pipe manufacturing brand,” he says.
He adds, “In order to be successful, one needs to be honest and transparent in the business and should justify their commitment to the customers. Maintaining good relations with the customers and the regulatory authority is very essential.”
(This story is published in partnership with the MSMEs Ministry to showcase success stories of SMEs)