GTA / A&E Hangers Upgrades Production Capacity

Garment Trims and Accessories Middle East, the exclusive licensee for A &E hangers for the Middle East and Africa will soon be relocating to the new 25,000 sq. ft premises in Jebel Ali Free zone in the United Arab Emirates

The new premises include state-of-the art office, high- tech manufacturing plant and high class warehousing and logistics facilities and landing docks for trailers and delivery fleet. With this facility GTA /A&E hangers will have an upgraded production capacity of 15 million pieces of hangers a day and will consolidate on 25 million pieces a month by 2004

A&E products, a subsidiary of the multimillion-dollar Tyco Group, are one of the world’s largest garment hanger manufacturers. TYCO a fortune 10 company has a turnover of US $50 billion and spans all corners of the globe with more than 25 offices worldwide. The company has a market share of 80-85% and is nominated by majority of garment stores.

Today hanger is an important accessory in garment trade due to the garment on hanger programmers initiated by the western stores and retailers and the success rate is 99 percent as the patents protect the manufacturers and thankfully there are no infringements worldwide. “Our parent company meets the vendors and presents are case for various programmers and obtains nominations for our brand,” comments Rajan Lall, managing Director of GTA Middle East. A&E hangers are nominated by 99% of stores and retailers including western retailing giants like Wal-Mart., K-Mart, and Kids-R –Us etc. A&E is the sole supplier to JC Penney, another retail giant.

Garment Trims and Accessories Middle East ventured into regional market under an agreement with TYCO, the parent company of A&E products, to supply A&E hangers to the clothing industry in the region. Today GTA Middle East is the exclusive licensee for the Middle East and whole of Africa.

The coming years will no doubt be very crucial for the garment manufacturers but what do people in garment accessories business think about the coming free trade era. TIU spoke to Rajan K.Lall, Managing Director, Garment Trims and Accessories Middle East at his Jebel Ali Office.

For the coming years, Rajan sees his company expanding into Africa and other markets and is not is not really worried about the post quota era as he says that his company will have to deal with a handful of major exporters and manufacturers

“When the quota system gets abolished, only those with better infrastructures will survive. I see 20-25% manufactures staying back rest will either close down or opt for offshore productions” says Rajan who feels the EU which needs quality product will emerge as a major buyer unlike the US which believes in getting cheaper products. Rajan is ready to brace the situation. Thanks to the infrastructures the turnaround time gets reduced which shouldn’t be problem! as Dubai offers best in logistics in the region. Wherever the industry is located we can cater to it by sitting here in Dubai, we have no problem in dealing with the situation as we have production and marketing team.

Efficient logistics is the company’s trump card. The new Customer Relationship Management (CRM) package enables the customer to go online and check the status of orders by the help of special passwords provide to them, says Rajan.

RAJAN K. LALL

Agreed his father ran his own insurance company in Karachi before the partition of India. Also agreed, business is in his gene. But still Indian millionaire Rajan K Lall is self made man who floated his company with a paltry sum of Rs. 500 some 17 years ago and today built it into flagship company ITL Industries with a $10 million turnover. A self-workaholic, Rajan claims to be a pioneer of sorts as far as launching of new business ventures are concerned.

Today, a number of multinational companies have a tie-up with ITL including YKK, the largest manufacturer of zips, A&E products, the worlds largest manufacture of hangers and Netherlandis Ten Café Perness, a leading maker of thermobonded non- woven microdot fusible linings along with weft inserts for jackets. Rajnanais business spread all over India with branches in Delhi, Bangalore, Madras and Tirupur and he soon he soon acquired the title f Inter- Trim Linings.

NIKHIL LALL
This enthusiastic 25 year old is out to enhance the corporate image of the company. He is more into research and analysis and a strong advocate of diversification and concentrate more on the business development side. He is proud of the customer service team who he feels provide the comfort levels to exporters. Today, in the global village environment, bringing them on line, says Nikhil, creates customer proximity.

He is of the opinion that one shouldn’t put all eggs in one basket and believes in teamwork and professional working environment. He is quite nostalgic about the Ajman factory where they worked in a small set-up and now looks forward to working in the new sprawling premises next door. Though Nikhil is happy with the plastic manufacturing aspect of the business in the Dubai he wants to expand base in India and South Africa and quietly braces to take over the reigns of the business once the senior Lall retires.