Higher returns in the foreign market and influx of foreign exchange have made Indian furniture manufacturers look outward. However, foreign markets of UK, US, Germany, and others have demand for products with high quality and specification. Right packaging and logistics quality and equipped facility are necessary to meet such demand of the foreign market. Startups in this market face several challenges due to high competition in terms of product quality and innovation. Procurement of quality raw materials (timber and wood) also becomes difficult due to supplier dominance.
Agarwal Industries is a startup established in 2019 that has emerged victorious despite the challenges in procuring quality raw materials for furniture manufacturing. Their success in such short span of time has been backed by their experience of about 30 years in plywood manufacturing. Given their stronghold in the supplier market, they are able to procure quality raw materials and give them shape of furniture through handcrafting.
Company director Shubham Goyal shares his experience saying, “Initially when we started working in the handicraft sector, we had two options to work; either domestically or as exporters. We started working domestically.
However, exporting products are more welcomed where there is greater income and benefit for India like adding foreign currency. This demand inspired us to move towards exporting these goods”. The company aims to export its products at reasonable prices which mark their USP.
Position in the Market
While a number of other startups in furniture manufacturing industry would have fumbled to establish their name as a quality exporter, Agarwal Industries has gracefully made its way to be a prominent name with its quality products. The company is based in Rajasthan with their own plants. Previous experience in the market is a key to its excellence in hiring skilled workforce. “Our experience from running plywood plant helps us in procuring the right material. Our contacts and healthy relationship with the suppliers is a trust factor on which we rely a lot for our product quality”. the director adds. Stable relationship with the suppliers allows Agarwal Industries to offer affordable price for their products.
Agarwal Industries offers a product range that covers all types of house furniture. The products from the plants of Jaipur is packaged and transported for exhibition in different foreign destinations. This requires a synchronized team effort and well trained workforce. Looking at its market affinity for the last one year, Agarwal Industries has produced a 5-year plan to expand their market reach. As per Shubham, “Given our goal to open showroom in Jaipur within a year, Agarwal Industries is developing employment opportunities to the local workers”. The company’s work culture is greatly based on local culture which holds significance in the Rajasthani community.
Besides, good performance history of the company shows its potential to make its place in top-5 handicraft furniture manufacturer and exporter in the world
Besides, good performance history of the company shows its potential to make its place in top-5 handicraft furniture manufacturer and exporter in the world. This makes it a good startup to work for that welcomes experienced and skilled candidates. As Harsh says, “We are happy to be able to develop opportunity for employment in the home country even during this grave situation”. Agarwal Industries’ future target is to export 200 containers per month in coming five years. Besides, it is also willing to enhance their demand in the local and domestic market at affordable prices.
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