Rainco has evolved from a manufacturing-oriented company to a lifestyle brand. What was the thinking behind this, and how did you achieve this transformation? 

The company began its journey four decades ago, but it is the last 20 years or so that truly defines who we are today. Rainco is not only a product brand but also our corporate brand. We do not merely manufacture umbrellas for a rainy day. Instead, we view ourselves as creators of fashion and lifestyle accessories. We have elevated the humble umbrella to a product that allows a person to make a statement about her or his uniqueness, lifestyle choices, and tastes. 

Manufacturing a functional product alone was never going to be enough for Rainco. We wanted to understand consumers at a much deeper level. We continue to invest in innovation to maintain or even improve the functional integrity of our products. We curate each component with extreme care. 

However, quite early in our journey, we also learnt that people choose umbrellas based on several factors, not just functionality. We understood how fashion tastes differ from person to person and across different demographics and geographies, leading to a greater focus on innovations around product design. We transformed umbrellas from a homogenous product that served a simple purpose (protecting from rain and hot sun) to a lifestyle brand. Rainco is connecting with consumers at an emotional level too. As a result, we deliberately expanded into adjacent product lines like rainwear and a range of mosquito nets: including special nets for infants – because rains bring out the mosquitos! By and large, Rainco has transformed into a brand that protects and empowers its core users.

How has the strategy worked so far in terms of performance? 

We have maintained steady growth, both in revenue and market share. Despite the unfavourable conditions from the Covid-19 pandemic and the lockdowns forcing us to shut down production nearly for a month and a half, 2020 was still our best performing year! We grew the domestic business and doubled our exports, a testament to the commitment and dedication of the team of people at Rainco. 

Our focus now is exploring opportunities to venture overseas and build a global brand. In the past, export earnings made up only around 1% of the company’s top line. However, last year we took it upto around 8% and we anticipate the share will increase to 20-30% over the next two to three years. We are seriously considering setting up production facilities in Africa and Asia and in many regional hubs to benefit from better manufacturing infrastructure and easier access to international markets. 

What is the boldest decision you ever had to make as a business leader? 

When Covid-19 first hit us, and the lockdowns became inevitable, we had no choice but to shut down operations. At the same time, we had just begun working on some of the exporting orders to two of our large customers overseas with whom we have been negotiating for a couple of years: and we had to deliver these orders if we are to retain them with us. Soon we feared we would run out of funds to meet our financial obligations including supplier payments and salaries. We had to let go of trainees and contractual employees which was a large base. 

It was certainly tough, but these decisions we had to make to ensure we could take care of our core employees and also be ready for production once the lockdowns ended. It is never easy to let people go, but sometimes when everything else fails, you need to do this to ensure the majority still have their jobs. Those in leadership positions including myself had to make compromises, taking only a minimum pay enough to barely get by. 

We did not cut pay for general staff and factory workers to ensure all employees had a bare minimum income to keep their livelihood afloat. 

We also began manufacturing PPEs because there was demand, and this helped the company contribute towards the national cause and to generate some revenue. We had to transform our production units to manufacture a different product which was not easy. But the learning along the challenges helped the company survive, so when normal orders returned post lockdown, we were in a position to generate a faster than expected turnaround. So, you need to confront the tough decisions and make the hard choices head on.

We are considering establishing production facilities in Africa and Asia to benefit from easier access to international markets