GTS Tool Plast, established by R Selvam and S Vadivel in 2012, is a Limited Liability Partnership (LLP) firm based in Chennai and specialises in manufacturing of Press Tool, Injection Mould, Die Casting Mould and Checking Fixture. Though the organisation had a modest beginning, it has been able to carve a name for itself in the market through its expertise and in-depth knowledge about the industry. Injection moulds contribute 90 per cent to the company’s turnover. State-of-the-art infrastructure technology has been deployed in the manufacturing facilities, which is equipped with advanced machinery and tools. A capacious warehousing unit enables GTS Tools to meet the bulk demand of its clients within a committed time-frame. The company makes a conscious effort to stay updated with the industry standards to cater to the exact requirements of their clients in the best possible manner. GTS Tools works around objectives of providing global solutions and local execution. With competition being a part as in case of any other industry, GTS Tools strives towards providing cost effective and innovative technology solutions to stay ahead of competition. Its clients include Schneider Electric, BOSCH, Avalon, Alpha Maier, First Engineering Rane TRW and so on.

Challenges

Global market is governed by many factors ranging from boom in the economy to economic slowdowns, currency valuations, demand of the product, technology upgradation and oil prices. China has been a major exporter; from raw material to finished goods used at a large scale, in manufacturing industries. GTS Tools like many other manufacturing units in India used to import major components from China in order to meet the short development lead time demanded by Indian customers. The devaluation of Chinese Yuan against the US Dollar, which resulted in increased demand of Dollar around the globe and thus affected the Indian currency, which plunged to a new low. Import of goods by GTS Tools yielded a lower profit margin for the company because of fluctuation in value of currency.

Solution

GTS Tools took stringent steps, which enabled them to overcome the challenges faced in the past. Steps were taken to increase the in-house manufacturing capabilities and reduce import dependence on China. Latest machinery was deployed for more effective production of goods and employees were given formal training to operate and to ensure smooth run in production process. Diversification of business was deemed necessary in order to beat slowdown in one sector and focus was shifted to production of Electronic and Industrial Products manufacturing. South Asian and South-East Asian markets were also explored as export destinations. GTS Tools formed a business development and marketing team, which expanded the business in countries like Sri Lanka, Thailand and Philippines. This also gave a cushion to the company, which was facing a dip in its revenue due to slowdown in market dominated by the west. The senior management underwent Export Import Training from institutions like IIFT/DGFT to explore more efficient ways of doing business at a global scale. Participation in NSIC’s initiative called VIRTUAL Marketing helped in identifying new customers across India.

GTS Tools, expecting the sales increase in previously unexplored territories like Sri Lanka, Thailand etc, understood the need to tap the potential in countries where there was an emerging market.

Diversifying the range of products the company has on offer is also a critical area in order to stay ahead of its rivals in the business. The company has understood that it cannot depend on a limited range of products to sustain the business. The range should be such that the business does not get affected by economic downturns. Accolades include:

• Best Supplier Award: Rane TRW for Automotive Safety Product Development
• NSIC-D&B-SMERA Rating: SE2B (High Performance & Moderate Financial Strength company)
• Best Business Plan Award: IIFT/DGFT
• ISO 9001:2008 Certification from TuV India