Professionalizing the Unorganized Textile Industry

India's textile industry, one of the largest contributors to the country's economy, has long been dominated by unorganized and informal businesses. But times are changing, and there’s a growing need for structure, systems, and professional management in this sector.

In this week's edition of Bharat ke SMEs, we highlight the inspiring journey of Sumicot Ltd., a textile manufacturer that has managed to turn the tide and professionalize their business with great success.

In this episode, I sit down with Rakesh Somani, Director of Sumicot Ltd., to explore how he transformed his business from being just another player in the disorganized textile market into a 400 crore success story.

With minimal time invested in daily operations, Rakesh has built a self-sustaining organization that runs on trust, systems, and well-trained professional people. His insights provide valuable lessons for SME founders across India looking to professionalize their operations.

The Unorganized Challenge: Professionalizing Textile SMEs

The textile industry in India is a vast ocean of opportunities, but for many businesses, it remains deeply unstructured.

90% of the sector is still unorganized, relying on traditional methods, informal management, and often lacking the systems needed for sustainable growth. For SMEs operating in such environments, the challenge of professionalizing their operations can seem overwhelming.

But as Rakesh bhai demonstrates, SMEs can thrive in this space by implementing structured processes and placing trust in their teams.

Building a Team and Trust them

Rakesh strongly believes that people make or break your business.

From the start, his vision was clear: to create a business that could run professionally and independently of him.

Today, Sumicot’s core team of 500 people, many of whom have been with the company since its inception, handles day-to-day operations. Rakesh himself spends less than an hour a day on business operations—most of his time is spent in review meetings and strategy sessions.

What’s his secret? Trust.

He empowers his team to make decisions, even if they occasionally make mistakes. Rakesh knows that by trusting his employees to take ownership of their roles, they will grow into leaders who can drive the company forward. This level of trust is rare in the often family-run textile industry, where control is tightly held by owners.

Key takeaway: If you want to professionalize your business, you need to build a team you trust and give them the freedom to excel.

Systems and Processes: The Backbone of Professionalization

Rakesh's approach to business is rooted in structure and systems. He applied the same rigorous discipline he learned from competing in Ironman races to his company’s operations. Just like in fitness, small, consistent improvements can lead to big gains over time.

@Sumicot, Rakesh implemented weekly and monthly review meetings, where the team would dive into the root causes of problems and work together to find solutions. This system of continuous review and improvement led to exponential growth, and the company now runs like a well-oiled machine.

The result? Sumicot is a prime example of how automation in textile industry with a core team of 500, can grow with a CAGR of 20%.

?? Actionable Insight: Professionalizing your business isn’t just about technology—it’s about creating a culture of continuous improvement and accountability.

Overcoming Common SME Challenges: Trust, Delegation, and Systems

SMEs and family-run businesses often struggle with trust issues. Rakesh highlights how lack of trust leads to a lack of delegation, which in turn prevents the business from being professionalized. To grow, you need to delegate.

It’s important to remember that people make mistakes. Even if your marketing VP gets it wrong 1 out of 5 times, that’s still a better success rate than you might achieve without their expertise.

The solution? Hire people who are better than you in their field and let them take ownership.

The Ironman Mentality: How Fitness Transformed a Business

Rakesh attributes much of his business success to the discipline and mindset he developed while training for Ironman races. Just like in business, competing in Ironman requires focus, patience, and incremental improvement. Rakesh brought the same philosophy to Sumicot, ensuring every process was continuously refined and optimized.

Health and fitness, according to Rakesh, are directly linked to organizational success. By maintaining discipline in your personal life, you can lead your business more effectively.

Here are 3 quick fitness hacks Rakesh shared to boost your personal and business performance:

1. Prioritize sleep: Your body and mind need rest to function at their best.
2. Short workout sessions: High-Intensity Interval Training (HIIT) can keep you fit in a short amount of time.
3. Eat healthy: Proper nutrition fuels both your body and mind for better decision-making.

Professionalizing the Textile Sector: The Road Ahead for SMEs

Rakesh's journey shows that professionalizing an unorganized industry like textiles is not only possible but essential for long-term growth.

The key to success lies in trusting your team, creating strong systems, and continuously improving your processes.

By applying these principles, Sumicot has positioned itself as a leader in the textile industry, and the model can be replicated by SMEs across India.

India’s SME landscape is vast and filled with potential. For entrepreneurs who are ready to move beyond survival and sustenance, professionalization is the next step.

With the right people, systems, and mindset, even the most unorganized sectors can be transformed.

Are you ready to transform your business and take it to the next level?

Learn from the journey of Sumicot Ltd. and the incredible insights shared by Rakesh Somani in this week’s episode of Bharat ke SMEs.

Don’t miss out on the blueprint to professionalizing your SME and building a business that runs itself.

?? Listen to the full podcast here: https://open.spotify.com/episode/21ujhrQzMt6CiuXmduOOXa

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