Manufacturer emphasizes innovation in China business

Despite China's well-documented economic slowdown, Ravin Gandhi, founder and CEO of coatings manufacturer GMM, said his company is thriving on the mainland.

"In my business (housewares), we are doing very well and looking at growth of 15 percent this year," he told China Daily in an interview. "The purchasing power of the Chinese middle class is rising, and they are looking to replace items like rice cookers."

In China, GMM makes the non-stick coatings used in rice cookers and woks. "We sell our coatings both under our label and as a generic unbranded coating in China," he said. "It depends on what the client wants."

His strategy for success in the Chinese market includes using innovation as a competitive advantage. "GMM is the fastest non-stick supplier in terms of developing new products and getting them to market fast," Gandhi said. "China clients value this in addition to our low prices."

Gandhi has spent the majority of his career in the nonstick coatings industry. In 1995, he was director of global marketing at Coatings and Chemicals Corp, a family-owned supplier of non-stick coatings. CCC eventually became the sole supplier to most American cookware, bakeware and electrical appliance manufacturers because of its pioneering use of high-quality "non-branded" non-stick coatings.

In 2001, CCC was sold to Akzo Nobel, the world's largest coatings company, and Gandhi was named president of the merged entity. He left there in 2002 and founded Glenborn Partners LP, an investment company focused on private equity and venture capital investing. In 2007, Gandhi teamed up with Raymond Chung in China to found GMM Nonstick Coatings.

For his business, chemical manufacturing, China's advantages include speed and infrastructure. "The downside (in China) is a limited rule of law, particularly when it comes to intellectual property," Gandhi said.

Housewares are a $9 billion market in the US. "Ninety percent of the products (for the US market) are made in China. Major US companies like Newell Rubbermaid have invested in plants and R&D (research and development) facilities in China. They have engineers in the US and China."

Gandhi was born and raised in the Chicago area. He said China still dominates manufacturing, but he is aware of the trend called reshoring or manufacturing returning to America. "As an American, I am happy to see some manufacturing returning to the US. I have clients in America so I hope business does return here."

Because GMM has operations in both China and India, Gandhi is uniquely positioned to see the economies of both nations. "India is doing well at the macro and microeconomic level. The new prime minister (Narendra Modi) has an unbelievable mandate, and confidence is running very high for both consumers and businesses. We are looking at doubling our revenue there this year," he said.

And what could stop the surge in India? "If Modi fails to follow through on business reforms and if the government doesn't invest enough in infrastructure, things could slow down," he said.

Gandhi said India has an educated workforce and a good rule of law, but its downside is a weak infrastructure. "Right now, India is a cheaper place to do business than China, which has implemented more taxes."

paulwelitzkin@chinadailyusa.com