Technology: A Global Context
Q&A with Miro Radici, chairman of Italy-based ITEMA Group
Interviewed By Jim Borneman, Editor In Chief
G
reat entrepreneurs and companies that have adapted to change in the global marketplace
highlight the story of textiles in the 21st century. There has been a dramatic shift in the
development of textile mills throughout Asia and swift change in the traditional markets of Europe
and the United States. With this change, the demand for textile technology and the challenges the
shifting markets present have dictated that textile machinery manufacturers be flexible, invest in
development and grow their businesses globally. The following is an interview with one such
industrial leader, Cavaliere Miro Radici, chairman of Italy-based ITEMA Group.
Cavaliere Miro Radici, chairman of Italy-based ITEMA Group
TW Asia
: With Itema’s presence in more than 90 countries with approximately 2,890 employees, what is
the most serious challenge in growing your global business?
Radici: The Itema Group stands out for being the only group in the textile machinery industry that is present in all segments of the market — looms, spoolers, accessories and electronics — having seven integrated companies capable of supplying products with an ultra-high-tech content.
That’s why I like to call it a high-tech group. Our strength lies in introducing technological growth in the countries where we are active. In today’s turbulent and complex global context, our group has proven its ability to face up to and meet the challenges of the global market, serenely accepting the challenges posed by competition from China and the Far East as a whole. We’re now focusing on the development of new technology and improving our problem-solving capacity for our clients through far-reaching, continuous customer and technical service.
And that’s not all: We’ve adopted a strategy of growth based on industrial integration — both vertical and horizontal — letting us serve all areas of the markets and have the right structural size to meet each new challenge that arises.
TW Asia : As Itema Group was formed, what was your vision for investing and bringing together such strong brands in textile technology?
Radici: I’ve always been convinced that it’s only by creating a system that we can succeed in the global market. But what does “creating a system” actually mean? For us, it means creating synergy; working as a group; recognizing our individual merits under the aegis of a shared industrial policy; adopting homogenous strategies; and coordinating the companies to revive production, distribution and service. It also means gradually introducing a new business culture or, to use a different concept, is an innovative way of dealing with the market and our customers, through reciprocal dialog and a far less fragmented approach to the supply chain.
Radici pours celebratory champagne at the opening of Itema (Shanghai) Textile Machinery Co. Ltd.
Dancers entertained visitors at the inauguration of Itema India Ltd.
Radici: The Itema Group stands out for being the only group in the textile machinery industry that is present in all segments of the market — looms, spoolers, accessories and electronics — having seven integrated companies capable of supplying products with an ultra-high-tech content.
That’s why I like to call it a high-tech group. Our strength lies in introducing technological growth in the countries where we are active. In today’s turbulent and complex global context, our group has proven its ability to face up to and meet the challenges of the global market, serenely accepting the challenges posed by competition from China and the Far East as a whole. We’re now focusing on the development of new technology and improving our problem-solving capacity for our clients through far-reaching, continuous customer and technical service.
And that’s not all: We’ve adopted a strategy of growth based on industrial integration — both vertical and horizontal — letting us serve all areas of the markets and have the right structural size to meet each new challenge that arises.
TW Asia : As Itema Group was formed, what was your vision for investing and bringing together such strong brands in textile technology?
Radici: I’ve always been convinced that it’s only by creating a system that we can succeed in the global market. But what does “creating a system” actually mean? For us, it means creating synergy; working as a group; recognizing our individual merits under the aegis of a shared industrial policy; adopting homogenous strategies; and coordinating the companies to revive production, distribution and service. It also means gradually introducing a new business culture or, to use a different concept, is an innovative way of dealing with the market and our customers, through reciprocal dialog and a far less fragmented approach to the supply chain.
Radici pours celebratory champagne at the opening of Itema (Shanghai) Textile Machinery Co. Ltd.
TW Asia
: In developing Itema Weaving, what led you to invest in the four brands - Somet, Sulzer
Textil, Vamatex and Itema Shanghai?
Radici: My family's always played a leading role in the textile industry and, later on, that of textile machinery. When we founded Somet more than 30 years ago, followed by our acquisition of Vamatex, we created the right conditions for global success and the evolution of the entire textile machinery group. Our acquisition of Sultex, another classic brand, was a fundamental step for the Itema Group's growth thanks to the synergy thus created, letting us strengthen our technological leadership in the weaving machine sector.
Our clear willingness to accept the challenge of globalization and to be leaders in the world's largest market led to the Itema Shanghai project, with the opening of a cutting-edge textile machinery pole entirely dedicated to the production and implementation of solutions for the Chinese and Asian markets.
This has allowed us to compete with greater force on the global market, without having to limit our activities to exports alone. We are thus fully convinced of the need to be a leading name on the world's largest market today. This is the shape and ideal dimension of Itema Weaving, a well-organized team that's ready and willing to take on and solve today's continuously changing problems and challenges.
TW Asia: With Itema Spinning and the Savio brand, how have global market demands affected technology developments such as the POLAR I?
Radici: Winding technology always involves a small number of essential mechanical elements, but drives, operation times and on-line controls are carried out electronically - that is with simple settings using a computer keyboard to control the entire machine.
Field experiences, gathered from the sale of nearly 250,000 heads of ORION winders, have confirmed the positive choices made, but they have also provided developments and innovation during the evolution stage, which our customers and the products themselves require. Savio has attempted to implement suggestions by introducing to the market the new POLAR Automatic Winder, which we were driven to design based on input from customers worldwide.
The shift in textile production to the Middle East and, in particular, the Far East, has also contributed to determining and developing the technical features of POLAR.
In fact, countries developing their textile industries, on the one hand, operate in difficult climate conditions, which are extremely different than European standards, using personnel for operation and maintenance who are not completely technically qualified, with a high turnover. And on the other hand, they need to produce high-quality products, especially for export.
Furthermore, competition between these countries has led to a race to produce, which puts textile machinery under even greater pressure, minimizing maintenance times to guarantee deliveries of the end product.
TW Asia : Itema has a growing global presence both in service and manufacturing. With so much focus on China, how do you balance the development of China with other growing global markets?
Radici: The decision to set up Itema dates back to the year 2000 - the aim being to create a strong image for all our companies on all the world markets, without exception. We're aware that our companies don't end at the production site gates, but go much further. Even before the China project was perfected, we had taken great pains over other crucial projects, such as the creation of the new Itema India branch in Coimbatore (See " Itema India Ltd. Inauguration," TW Asia, November/December 2005). Although basically a commercial operation at the moment offering technical service and spare parts, we envision it may become our base for further expansion in production on this fast growing market in the years to come.
Radici: My family's always played a leading role in the textile industry and, later on, that of textile machinery. When we founded Somet more than 30 years ago, followed by our acquisition of Vamatex, we created the right conditions for global success and the evolution of the entire textile machinery group. Our acquisition of Sultex, another classic brand, was a fundamental step for the Itema Group's growth thanks to the synergy thus created, letting us strengthen our technological leadership in the weaving machine sector.
Our clear willingness to accept the challenge of globalization and to be leaders in the world's largest market led to the Itema Shanghai project, with the opening of a cutting-edge textile machinery pole entirely dedicated to the production and implementation of solutions for the Chinese and Asian markets.
This has allowed us to compete with greater force on the global market, without having to limit our activities to exports alone. We are thus fully convinced of the need to be a leading name on the world's largest market today. This is the shape and ideal dimension of Itema Weaving, a well-organized team that's ready and willing to take on and solve today's continuously changing problems and challenges.
TW Asia: With Itema Spinning and the Savio brand, how have global market demands affected technology developments such as the POLAR I?
Radici: Winding technology always involves a small number of essential mechanical elements, but drives, operation times and on-line controls are carried out electronically - that is with simple settings using a computer keyboard to control the entire machine.
Field experiences, gathered from the sale of nearly 250,000 heads of ORION winders, have confirmed the positive choices made, but they have also provided developments and innovation during the evolution stage, which our customers and the products themselves require. Savio has attempted to implement suggestions by introducing to the market the new POLAR Automatic Winder, which we were driven to design based on input from customers worldwide.
The shift in textile production to the Middle East and, in particular, the Far East, has also contributed to determining and developing the technical features of POLAR.
In fact, countries developing their textile industries, on the one hand, operate in difficult climate conditions, which are extremely different than European standards, using personnel for operation and maintenance who are not completely technically qualified, with a high turnover. And on the other hand, they need to produce high-quality products, especially for export.
Furthermore, competition between these countries has led to a race to produce, which puts textile machinery under even greater pressure, minimizing maintenance times to guarantee deliveries of the end product.
TW Asia : Itema has a growing global presence both in service and manufacturing. With so much focus on China, how do you balance the development of China with other growing global markets?
Radici: The decision to set up Itema dates back to the year 2000 - the aim being to create a strong image for all our companies on all the world markets, without exception. We're aware that our companies don't end at the production site gates, but go much further. Even before the China project was perfected, we had taken great pains over other crucial projects, such as the creation of the new Itema India branch in Coimbatore (See " Itema India Ltd. Inauguration," TW Asia, November/December 2005). Although basically a commercial operation at the moment offering technical service and spare parts, we envision it may become our base for further expansion in production on this fast growing market in the years to come.
Dancers entertained visitors at the inauguration of Itema India Ltd.
TW Asia
: What other markets [outside of China] do you find attractive; and do you approach each
market separately with regard to products, technology and possible manufacturing?
Radici: To sum up, the Itema Group is turning its attention to countries like Iran, Pakistan, Eastern Europe and Turkey — where we are already market leaders — as well as to India, needless to say, which has now become our third most important market. The current global scenario requires that we operate in every corner of the world, offering the same high-tech contents, while respecting the individual needs of each market.
Our strategy is therefore to ensure we have a wide enough offering of products and services to satisfy every market and customers’ different needs, while at the same time guaranteeing the same high standards of quality and reliability as in our top-of-the-range products.
TW Asia : If a textile mill owner asked you for advice regarding what market segments he should invest in, what would you counsel?
Radici: I’m fully convinced that businesses in the textile machinery industry must embrace the idea that their strengths in the past won’t necessarily be the same in the future. In a global context where the key word has become ”change,” we must accept that the equation “capacity for change equals added value” has become an indisputable truth.
Only those organizations that are capable of shedding their skin quickly enough can ensure their competitiveness and will survive in today’s market. This is the best investment that any modern businessman can — and must — make today.
TW Asia : Looking into the future, what do you see for the Itema Group and the global textile industry?
Radici: European textile machinery manufacturers will only stay on the European market for as long as there is a European textile trade. Given that I have no doubt whatsoever about the future of the European textile industry, it goes without saying that we shall continue to be there, offering the industry our efficient services, competitive technological solutions, and all the experience and reliability that no other company comes anywhere close to providing.
January/February 2006
Radici: To sum up, the Itema Group is turning its attention to countries like Iran, Pakistan, Eastern Europe and Turkey — where we are already market leaders — as well as to India, needless to say, which has now become our third most important market. The current global scenario requires that we operate in every corner of the world, offering the same high-tech contents, while respecting the individual needs of each market.
Our strategy is therefore to ensure we have a wide enough offering of products and services to satisfy every market and customers’ different needs, while at the same time guaranteeing the same high standards of quality and reliability as in our top-of-the-range products.
TW Asia : If a textile mill owner asked you for advice regarding what market segments he should invest in, what would you counsel?
Radici: I’m fully convinced that businesses in the textile machinery industry must embrace the idea that their strengths in the past won’t necessarily be the same in the future. In a global context where the key word has become ”change,” we must accept that the equation “capacity for change equals added value” has become an indisputable truth.
Only those organizations that are capable of shedding their skin quickly enough can ensure their competitiveness and will survive in today’s market. This is the best investment that any modern businessman can — and must — make today.
TW Asia : Looking into the future, what do you see for the Itema Group and the global textile industry?
Radici: European textile machinery manufacturers will only stay on the European market for as long as there is a European textile trade. Given that I have no doubt whatsoever about the future of the European textile industry, it goes without saying that we shall continue to be there, offering the industry our efficient services, competitive technological solutions, and all the experience and reliability that no other company comes anywhere close to providing.
January/February 2006
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