Panchanan International Private Limited

Learn how Panchanan International Private Limited managed to scale up its business to great heights by using innovative solutions

When you think of family businesses, it is not common to see a father-daughter duo slogging it out, mitigating working capital limitations, to solidify their market positions. In the case of Panchanan International Private Limited, that is exactly what happens.

As one of the most respected distributors of ready made garments in North India, Panchanan is headed by Mr. Naveen Goel, with a significant boost from his daughter, Apoorva Goel. We spoke to Apoorva to learn of how Panchanan got to where it is today.

For Mr. Naveen, Panchanan’s growth has mirrored his own. In 1998, the company began with a modest ready made garments retail outlet in Kamla Nagar, a major shopping centre located in North Delhi.

Panchanan Founders, Client of Credable Working Capital Finance Company

His training as a Chartered accountant allowed him to run the outlet in stellar financial health managing working capital requirements while being abreast with all the changing dynamics of the fashion business, and in 2001, they were able to take up the onerous task of taking up distribution of ready made garments for all of Delhi.

Musing on the distribution business, Apoorva Goel says, “The distribution business operates on razor thin margins and it’s extremely important to know what you’re getting into before embarking on a venture in this space.”

Since scale was built into the very survival of the firm, within the next four years, it expanded into offline distribution in the adjoining regions of Uttar Pradesh and Uttarakhand as well. For Panchanan, this was a good position to be in: they had grown into a force to be reckoned with and the company was looking to consolidate its position as one of North India’s leading distributors.

For the next decade, little had changed and Panchanan was continuing to do business without making any major changes to their core strategy.

Client of Credable Supply Chain Finance, Panchanan's Apoorva Goel

The distribution business operates on razor thin margins and it’s extremely important to know what you’re getting into before embarking on a venture in this space.”

Apoorva Goel

Director, Panchanan

By the time 2015 rolled around, the business landscape had looked very different. The emergence of online fashion portals such as Myntra and Jabong had created an entire market overnight and Apoorva (who at this point was heading Marketing for the company) decided to expand their distribution line by including an online channel as well.

For Panchanan, this turned out to be one of the best calls that had been made. When asked about how the online distribution channel has fared, Apoorva says, “Ever since we took our business online in 2015, we have seen continuous and consistent year-on-year growth on the e-commerce vertical. Despite the market challenges, changes in compliance and regulation, and even the 2016 demonetization debacle, our online business showed no signs of slowing down.”

Today, Panchanan’s operations are divided across four verticals: the Delhi offline distribution, U.P / Uttarakhand offline distribution, Delhi / Gurugram undergarments offline distribution and the Pan-India e-commerce vertical. But the road to success was not an easy one. When confronted with questions about how the business has evolved over the years, Apoorva points to increased competition that has fundamentally transformed the way they did business.

“Earlier, the credit period and the stock collection percentages were low. Today, the credit period has doubled, and the stock collection percentages are also higher. The working capital requirements have shot up and we were forced to rethink the way we structured our finances to facilitate further growth.”

Earlier, the credit period and the stock collection percentages were low. Today, the credit period has doubled, and the stock collection percentages are also higher. The working capital requirements have shot up and we were forced to rethink the way we structured our finances to facilitate further growth.”

Apoorva Goel

Director, Panchanan

After having tried out CredAble’s financing solutions, Apoorva’s been able to tame some of the forces that were hindering growth earlier. Longer payment cycles, expectations of negotiations with porters, retailers and brands are some of the challenges that she was able to tackle head on because of the on-demand liquidity that CredAble’s platform was able to provide her with.

“CredAble has helped us immensely with shortening our working capital cycles. In the past two years, we have grown in terms of how we manage our finances and how we divide our resources amongst all four verticals. We were able to take advantage of several business opportunities that presented themselves during the pandemic, and it’s all thanks to the liquidity that CredAble was able to provide us with.”