Svenmill President Greenblatt Weighs Risk of Expanding
August 7, 2002
South African Manufacturer and Exporter Needs to Increase Production Capacity
Cape Town (South Africa) - Svenmill, at 30 years of age, is one of the oldest and largest mill/exporters of jacquard and dobby fabrics in South Africa serving customers in more than 50 countries.
According to president and owner Frank Greenblatt, who acquired the mill in 1986, Svenmill''s 22-year old export business is limited only by current capacity, which is severely strained. Nearly 80 percent of production is exported to some of the world''s most famous editors and wholesalers. "We currently have a 12-week delivery period. If we want to improve that situation, we will have to expand the mill," he said.
Greenblatt is considering his possibilities for expansion, but he is painfully aware of the depreciation expense for such a commitment, given the low value of the Rand at the moment. Because most machinery in South Africa is purchased in foreign currency, it is very expensive in terms of the Rand to buy almost anything outside the country, Greenblatt explained. This lament is frequently heard throughout South Africa'' s textile industry, even when the line in question is in as much demand as Svenmill''s. Meanwhile, Greenblatt himself has become well-known throughout the world, primarily because he handles the export business personally, rather than employing an export sales manager. However, he uses an experienced network of sales agents to help cover each market.
In addition to upholstery, Svenmill produces a range of ready-mades under the Paul Steiger brand, and a line of warp-knit fabrics for tablecloths and curtaining for the Levinet brand. Svenmill also distributes specialized home furnishings in its local market under the Casatex label.
"We currently have a 12-week delivery period," Greenblatt said. "If we want to improve that situation, we will have to expand the mill."
Svenmill usually makes its major product introductions at Heimtextil in Germany. However, the company signed on for the first Living Space exhibition held in March in Cape Town. "At first I was negative on the idea," Greenblatt said, "but my staff convinced me otherwise and they made the right choice. We reached new customers in our own country whom we had difficulty in doing business with before.
"When they saw our stand at Living Space, it put us in a totally different light in their eyes. As far as I am concerned, it was very successful for Svenmill."
Cape Town (South Africa) - Svenmill, at 30 years of age, is one of the oldest and largest mill/exporters of jacquard and dobby fabrics in South Africa serving customers in more than 50 countries.
According to president and owner Frank Greenblatt, who acquired the mill in 1986, Svenmill''s 22-year old export business is limited only by current capacity, which is severely strained. Nearly 80 percent of production is exported to some of the world''s most famous editors and wholesalers. "We currently have a 12-week delivery period. If we want to improve that situation, we will have to expand the mill," he said.
Greenblatt is considering his possibilities for expansion, but he is painfully aware of the depreciation expense for such a commitment, given the low value of the Rand at the moment. Because most machinery in South Africa is purchased in foreign currency, it is very expensive in terms of the Rand to buy almost anything outside the country, Greenblatt explained. This lament is frequently heard throughout South Africa'' s textile industry, even when the line in question is in as much demand as Svenmill''s. Meanwhile, Greenblatt himself has become well-known throughout the world, primarily because he handles the export business personally, rather than employing an export sales manager. However, he uses an experienced network of sales agents to help cover each market.
In addition to upholstery, Svenmill produces a range of ready-mades under the Paul Steiger brand, and a line of warp-knit fabrics for tablecloths and curtaining for the Levinet brand. Svenmill also distributes specialized home furnishings in its local market under the Casatex label.
"We currently have a 12-week delivery period," Greenblatt said. "If we want to improve that situation, we will have to expand the mill."
Svenmill usually makes its major product introductions at Heimtextil in Germany. However, the company signed on for the first Living Space exhibition held in March in Cape Town. "At first I was negative on the idea," Greenblatt said, "but my staff convinced me otherwise and they made the right choice. We reached new customers in our own country whom we had difficulty in doing business with before.
"When they saw our stand at Living Space, it put us in a totally different light in their eyes. As far as I am concerned, it was very successful for Svenmill."
