In an exclusive interaction with MediaBrief, Kshitij Kuthiala, Vice President, Head of Strategy and Investor Relations at ReshaMandi, speaks about how ReshaMandi, the B2B marketplace for fashion and textiles, is helping farmers optimize their production.
Kuthiala discusses how ReshaMandi is enabling its stakeholders to widen their profit margins through constant engagement and by providing technical assistance. He also talks about the impact of ReshaMandi’s AI and IoT techniques on agricultural output for farmers.
Read on.
How does ReshaMandi’s digital ecosystem contribute to the natural fibre supply chain? What are its key functions?
ReshaMandi was established in May 2020 and is India’s first and largest B2B marketplace for fashion and textiles, connecting farm to fashion. Our technology-powered innovations have brought all stakeholders in the natural fibre ecosystem — farmers, reelers, weavers, yarn manufacturers, designers, retailers, and even exporters — on a single platform.
This has enabled us to eliminate middlemen, which has, in turn, resulted in the profit margins of those at the grassroots increasing, while also ushering in transparency at each stage of the natural fibre supply chain.
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Our approach to solving multiple problems ailing the textiles sector is grounded in technology, the use of which has enabled us to usher in transparency into the natural fibre value chain. Additionally, we have been able to address other systemic problems such as inconsistent pricing, while enabling stakeholders to adopt technology to boost productivity, while enhancing the quality of both raw materials, and the finished products.
Whether it is our IoT-powered device that surveys the environmental conditions at a mulberry field to issue advisories to farmers, or our app, we have created an end-to-end ecosystem, for all our stakeholders.
Our digital ecosystem has helped farmers optimize the utilization of water – there has been a 70% reduction in the volume of water used at mulberry farms – while increasing the quality of the cocoons. The success of our model is best illustrated by our figures – our app has been used to trade 7800+ tonnes of the cocoon, 350 metric tonnes of raw cotton, and 17,500 tonnes of cotton bales.
How has the company’s revenue grown in recent years, and what do you attribute this growth to?
Since our inception in 2020, we have been growing at an accelerated pace, with our revenue rising from INR 20 crore in 2020-21 to INR 1,900 crore in FY 2022-23. We became EBITDA positive in Q3 in FY ’23 and hope to turn PAT positive this FY.
Our rapid growth is to be attributed to our unwavering commitment to all the stakeholders, who have, in turn, reposed their faith in us. In enabling all our stakeholders to widen their profit margins through constant engagement, and by providing technical assistance, we have created an ecosystem that is mutually beneficial. This has been the key to our sustained growth.
How has ReshaMandi expanded its product portfolio beyond silk in FY22, and what is the company’s plan for managing the entire natural fibre ecosystem?
We began with silk but have since added jute, cotton, and linen and also worked on other natural fibres like wool. We have a huge network of procurement centres across the country where farmers can get in touch with our representatives, either through a phone call or by physically visiting the centre with a prior appointment. Farmers can either place an order for raw material on the app or seek assistance from our representative to pick it up directly at the outlet. They can subsequently use our app to sell their produce.
Since we work with stakeholders across the country, we have 42 centres and warehouses across India Having mandis and procurement centres has helped us streamline the supply chain, besides increasing our geographic footprint. It has also eased the process of providing logistical support to our stakeholders.
Who are ReshaMandi’s target markets, and how does the company meet its needs?
We have partnered with retail brands that are very conscious about traceability and sustainability. ReshaMandi is involved in enabling the stakeholders at the back end of the natural fibre ecosystem.
Consequently, we have knowledge of the antecedents of the finished product going all the way back to the farmer. So, our partnership with domestic and international brands looking to cater to a growing pool of informed consumers is proving beneficial to all parties.
Furthermore, we are hoping to widen not merely our consumer market, but also widen our sourcing pool. We are looking to source raw materials from other parts of the world, ensuring a seamless experience for all stakeholders. Today, we cover more than 4000+ pincodes across India.
How does ReshaMandi’s marketing strategy assist the organization stand out in the market?
Our work and focused approach have earned us the rewards of positive word of mouth. This has enabled us to build a strong community of supporters and customers. Relationships matter to us and we have made a concerted effort to digitise the natural fibre supply chain through user-friendly technology interventions.
We are committed to our mission to bridge the gap between the creators and buyers of Indian fabrics by eliminating middlemen. The company is driven by its commitment to traceability, affordability, fair pricing, quality testing, accessibility, and ensuring profitability for all stakeholders.
What are the intentions for ReshaMandi’s international development in Europe and the United States, and how will the company replicate its successful Indian model in these markets?
Our objective in expanding to international markets is to ultimately become a one-stop natural and recycled fiber-sourcing platform. We want to lend a hand to our stakeholders both in India and abroad to source textiles of superior quality from any part of the world.
This can be accomplished by putting in place a streamlined supply chain that would enable seamless movement of finished garments, from say, Bangladesh or India, to the markets in, for example, the Middle East. We would be bringing together stakeholders of the natural fibre value chain on a single platform, enabling them to transact through the global supply chain we have built.
We want to enable the value chain of fabrics, apparel, home furnishings, and accessories through technology-first solutions that bring transparency, fair pricing, and quality to be the pillars of the fashion & textile industry globally. Our motive is to build a global supply chain where all stakeholders can seamlessly source what they want through our platform.
Can you tell us more about ReshaMudra and how it assists business partners across the ecosystem in obtaining working capital and long-term loans?
Strengthening the financial support system in the textile industry is one of our key objectives in the long run. What we have observed is that banks tend to assess the viability of loans offered to stakeholders using parameters not suited to the sector. Stakeholders in the natural fibre supply chain require a lot of credit and underwriting does not work in this sector.
The time required for the completion of the order-delivery cycle is considerably longer in this industry, which means that stakeholders will not be able to reap the dividends of their investment early enough to fulfil their financial commitments. Offering financial assistance to those working at the grassroots requires knowledge of the nuances of the sector. ReshaMudra aims to fill this gap in the ecosystem.
We offer personalized credit solutions to all stakeholders including the micro, small, and medium enterprises (MSMEs). From long-term loans to financial assistance with working capital, we are eager to infuse the natural fibre ecosystem with cash to ensure sustained operations.
How has ReshaMandi’s technology intervention and people-first approach assisted farmers like Gurumallesh in increasing productivity and income?
Our technological innovations have transformed the entire natural fibre supply chain, enabling us to regulate an otherwise unorganised sector. Technology has helped put in place a more efficient supply chain management model.
We are dedicated to helping all stakeholders associated with us to increase productivity and boost their revenue. We provide analytic tools to the farmers to help them plan their harvest cycle better, with information on best practices, use of IoT devices, and advisories.
The result is that with our technology interventions and people-first approach, farmers have been able to improve their productivity by 20% and boosted their incomes by nearly 30%.
What is the impact of ReshaMandi’s AI and IoT techniques on agricultural output for farmers, and can you give an example?
We have launched version 2.0 of our IoT device, aimed at stepping up technical assistance to silk farmers. A 10 to 15% boost in farm-level yield has already been observed with farmers using the latest device. Our calculations project this figure rising to 25 to 30% in the future.
We have reduced the likelihood of crop failure by 80% through the use of our devices and providing IoT-led advisories. Farmers have, as mentioned earlier, registered an increase in their yield, and recorded a rise in their income. We have also seen a 70% reduction in water usage by farmers by using our Mulberry IoT devices.
Anand and Devaraj, progressive farmers engaged in the cultivation of mulberry in Siddlaghatta in Karnataka, are among many who have benefitted from the use of our IoT devices.
The IoT devices provide them with real-time advisories on the environmental conditions such as humidity, and moisture content in the soil, at their farms, enabling them to adjust the conditions at their rearing sheds. Consequently, their crops are now guarded against fluctuations in temperature, effectively reducing their loss.
Is there anything else you’d like to say?
Our vision is to become the world’s largest textile and fashion marketplace to enable the value chain of fabrics, apparel, home furnishings, and accessories through technology-first solutions that bring transparency, fair pricing, and quality to the fashion & textile industry. The industry has immense opportunities and we want to make India the powerhouse of natural fibres.