Biznews (BN): Since His Majesty King Abdullah II’s 1999 ascension to the throne, Jordan has taken steps to encourage foreign investment and to develop an outward-oriented, market-based, and globally competitive economy. Mr. Kjeld Binger, CEO of Airport International Group told us they are a great example FDI works in Jordan. What is your assessment of today’s investment climate?

Mr. K. S. Sanal Kumar (K. S. S. K.): Indeed, I also consider myself as a living example of the success of FDI in Jordan. The main reason why FDI is working here in Jordan is mainly because of the support of the Government and the bureaucracy of this country. Other counties in Asia or South America are trying to implement FDI, however they are not as efficient as the Jordanian bureaucratic environment, and this is where Jordan makes the difference and set itself apart from the rest of the competitors in the world. Companies such as Classic Fashion would not have been able to grow at the size of today without the support of the institutions and government of Jordan. Classic Fashion has a lot of respect and admiration for this Country and we are committed to contribute actively towards the socio-economic development of Jordanians; we will do our best to establish more & more satellite units in rural parts of the Nation so more employment opportunities are provided. “Satellite factories” are those that we have established at the behest of The Office of his Majesty King of Jordan. These satellite units are supported by our main factories at Al-Hasan Industrial Estate. So far, these satellite units are more so reflective of our Corporate Social Responsibility efforts. In my opinion, there should be conscious efforts to move these CSR oriented projects into economically viable business models - & this will help secure the future of the socio-economic condition of the people of Jordan. At this stage, we are working on methods to make our satellite units more economically viable so at least their own costs are covered. As I see it, manufacturing is the most key area that Jordan should & will focus on for the next few decades. And there is huge potential.

Biznews (BN): You have been included in the Golden List of Companies established by the Ministry of Labor of the Kingdom of Jordan, who stated Classic Fashion helps in making the “Made-in-Jordan” label more appealing to the international clientele. What would you say are the “Made in Jordan” competitive advantages?

Mr. K. S. Sanal Kumar (K. S. S. K.): Yes, being included in the Golden List is an important recognition – because only those companies that are in compliance with all local labor laws & business regulations are part of this list. Exports out of Jordan have increased from USD10mil in 1999 to 1.6bil in 2017 – and this has been achieved only because the Government & the industry worked together towards promoting the “Made in Jordan” brand. With more efforts on vision creation & strategizing the economi growth, Jordan can very easily touch exports of USD 5 bil mark. Classic Fashion shall continue to play a pivotal role in this growth.

Biznews (BN): You supply top quality garments to world leaders in retail marketing such as Under Armour, Wal-Mart Stores, GAP and many more. Your production has been streamlined scientifically with the latest equipment and the expertise gained through years spent in the field. How important are technology and innovation to cater the needs of Classic Fashion’s clients?

Mr. K. S. Sanal Kumar (K. S. S. K.): Innovation and technological advancements are the only way to ensure business sustainability. To us the definition of business sustainability encompasses addressing all aspects that drive & guide the business – weather it is people development, product innovation, manufacturing excellence or just-in-time supplies. In 2012, we made a conscious shift away from traditional manufacturing practices and introduced concepts like industrial engineering / re-engineering and so on. By this we were able to bring about significant upgradations in the efficiency of our production lines and we were able to able to exceed Customer expectations of us. Constant innovation & advancements also help us to manage the growth of our business and we have a specific team that works on R&D so we are ahead of the curve at any given point in time. Our most important assets are our people – we give them ample opportunities to learn & grow with the company.

Biznews (BN): Your goal is to achieve the highest level of customer satisfaction at all times and to continually strive for improvement, and mentioned the company’s “secret weapon” is its tireless focus on value addition. How do you translate this affirmation to your day-to-day activities?

Mr. K. S. Sanal Kumar (K. S. S. K.): “Speed to market” – as strategic vendors of major retailers, we have to ensure speed & dexterity in our deliverables to them. & this involves a delicate mix of technology & skills development for people. Garment making is such a vocation that even those with no-skills can be trained within no time and deployed on the production lines. We have several hundreds of examples wherein people joined us as unskilled trainees and today manage production lines that have 50-60 highly skilled operators! We have developed some very good training methods by which we are able to establish skills into people easily. Just as we speak, Classic Fashion & the Ministry of Labor would be setting up a Vocational Training center here in Irbid – to train Jordanians on the skills of garment making. All candidates “graduating” out of these courses shall be provided employment by the garment industry here in Jordan. Speaking about value addition, we consider it as the service we provide to our customers. We strongly believe in our work ethic and the way we commit ourselves to our customers. Our esteemed clients believe in our ability to deliver quality, quantity & the responsibility behind making of these garments!

Biznews (BN): Classic Fashion is in constant expansion mode and even has a division that takes care of the construction of the new sites. How does this vertical integration benefit the business?

Mr. K. S. Sanal Kumar (K. S. S. K.): To answer this question we need to go back again to 2012 when we decided to make a complete change of the way we saw the future. Since most of the warehouse premises we rented were not up to global standards on safety, we decided to stop renting and we started building our own spaces. In order to have better control over the quality of construction, timelines & the materials used, we setup our own builders & developers division to meet our ever growing need for more space & buildings. Today all our construction needs - be it a factory, hostel, recreation area etc. etc., is managed in-house.

Biznews (BN): Since 2003, Classic Fashion Apparel Industry Ltd. Co. has diversified into different business verticals, across Jordan, Taiwan, China, UAE & India, and we read you are now studying to enter the Egyptian market. What is CFAI’s international strategy?

Mr. K. S. Sanal Kumar (K. S. S. K.): I wouldn’t call it diversification, since we are focusing in only one business. China and Taiwan are both sourcing and development centers for our garment manufacturing business in Jordan. We have offices in New York, which focus on the garment / fashion design & new product developments for our Clients.

Biznews (BN): You are recognized as an influential leader in designing the path for sustainable development, change management, team spirit and women empowerment in Jordan. What are the policies and strategies implemented by Classic Fashion in this regard?

Mr. K. S. Sanal Kumar (K. S. S. K.): Answering your question regarding sustainability, we are using today 13.5 MW of electricity per month. Our plan is to generate our own energy, and this will be done by building renewable energy plants, solar plants. This project is expected to be ready by the first half of 2018 with an investment of 15 million dollars. This investment will help us to generate our own energy. Speaking about management and people within our organization, we consider ourselves as a people company, we are here for our people and our definition for business sustainability is how we can improve ourselves on a daily basis and how to become better for tomorrow. We are putting in place multiple initiatives with the Ministry of Labor and we are happy to be a part of the growth and the development of the Jordanian youth and of course the development of the garment industry in this Country. Our idea is that the entire ecosystem within which we operate is benefitted and there is holistic development around us.

Biznews (BN): His Majesty King Abdullah II stated, “Relations between Jordan and Germany are very special... both countries enjoy a long tradition of friendship, mutual respect and admiration.” With a population of 81 million, Germany remains the largest consumer market in Europe - in terms of both population size and purchasing power and is also the fourth-largest exporter of clothing and textile products worldwide, and the second largest textile importer. You also mentioned that Adidas is soon joining as a partner as well. Is Classic Fashion open to partnerships and/or planning to enter the German market?

Mr. K. S. Sanal Kumar (K. S. S. K.): Of course we are open. We recognize the strength of the German manufacturing ability and are always open to any opportunities of working together. Incidentally, we have on previous occasions attended several industrial fairs in Germany.

Biznews (BN): When we interviewed His Excellency Nasser Shraideh, Chief Commissioner of ASEZA (Aqaba Special Economic Zone Authority), we spoke about the relaxation of the rules of origin for Jordanian exports between Jordan and the EU. He mentioned that the idea behind it was to bring European companies, do joint ventures with local companies, re-export to the EU and take advantage of the network and expertise of the European companies. Is there any opportunity you would like to convey to our German readers in this regard?

Mr. K. S. Sanal Kumar (K. S. S. K.): German companies can indeed contribute to the Jordanian garment industry. For example, we don’t have any mills to produce fabric, because the country doesn’t have enough water. I believe that a joint venture between Jordanian and German companies established in Aqaba could be a huge business opportunity considering the location of the city next to the sea. They could invest in a desalinization plant. This would also be an added business for the country and working with German companies in that direction could be an added value for the country. If we are able to implement this strategy I believe this industry could reach the 10 billion dollars in terms of numbers, but it will also benefit the country as a whole from a wider perspective.

Biznews (BN): Richard Branson once said, “If you aren't making a difference in other people's lives, you shouldn't be in business – it's that simple!” What is the difference Mr. Kumar wants to make?

Mr. K. S. Sanal Kumar (K. S. S. K.): My philosophy of life is to keep moving forward from one goal to another – there is no dreaming! My philosophy in life is to follow, what we in India call “Karma” – which means pure actions in all states of existence. I shall continue to mean & do well for my people & the society at large. We at Classic Fashion do not do anything for the purpose of getting a reward or an award – these are a mere encouragement for us to try & achieve more!