Surat Brothers Launch Affordable Apparel Brand, Make ₹9 Cr in 8 Months

In the small town of Saurashtra, where Hiren Lathiya grew up, dreams of a future beyond the simple life were often out of reach. 

Hailing from a humble family background and attending a government school, Hiren's journey was anything but ordinary. Post-schooling, he moved to Surat City, driven by a desire for higher education and broader horizons.

After graduating, Hiren began his corporate journey at IndiaMart, a turning point that changed his fate unexpectedly. His role involved convincing offline vendors to register and sell their products online, requiring both skill and a strong belief in the future of e-commerce in India.

"Every day, I talked to businessmen who wanted to enter the online market but were unsure how to approach it. My belief in the future of e-commerce in India motivated me to guide them," Hiren recalls during the conversation with Startup Pedia.

Hiren's conviction was so strong that he persuaded his brother Darshan, who completed his bachelor's in computer technology, to join and learn the technical aspects of the e-commerce industry. Viren, another brother who finished his master's in digital marketing from Toronto, Canada, also joined the team. 

"It took months to convince Darshan and Viren, but I knew that together, we could create something great and extraordinary," Hiren says while talking to Startup Pedia.

In 2014, they started selling apparel like sarees, kurtas, and Western wear on e-commerce platforms such as Amazon, Flipkart and Myntra. Their online apparel business, Leemboodi Fashion, quickly became one of the largest sellers on these platforms. However, Hiren and his cousins were not entirely satisfied.

"On e-commerce platforms, multiple brands sell the same products at low prices with substandard quality. We wanted to build a brand where we could sell high-quality products at affordable prices," Hiren explains during the interview with Startup Pedia.

Thus, in 2023, the Lathiya brothers together launched Sudathi, a Surat-based apparel brand offering affordable and high-quality apparel. 

Products and Pricing:

Sudathi offers a wide range of products, including sarees, kurta sets, and Western wear, all priced competitively because of in-house manufacturing. For instance, a three-piece kurta bottom and dupatta set to start at around Rs 899, while similar products from other brands might be priced at Rs 1500.

The co-founder of Sudathi points out, "If you purchase through our mobile app, you can get it for even less, around Rs. 900."

One of their bestsellers, the Banarasi saree, starts at Rs. 499 and has generated Rs. 1 crore in revenue in just three months. Similarly, their Maharashtra Paithani saree, priced at Rs. 749, often sells out within 5-6 days of its launch.

"Our affordability and quality have helped us build a loyal customer base," Hiren adds while discussing the growth of Sudathi with Startup Pedia.

Operations and Manufacturing:

Sudathi's operations are extensive, with around 70 employees working specifically for the brand. Including their other ventures, Lathiyas employs about 800 people. Their well-established manufacturing process, sourcing raw materials from Surat and utilising advanced machinery, allows them to reduce costs significantly.

Their production unit can produce 2.5 lakh pieces of Western wear and kurtis monthly. During peak seasons, they outsource to meet demand, increasing production to around 4 lakhs per month.

"Our large-scale production capabilities allow us to maintain quality while keeping prices low," Hiren told Startup Pedia.

The co-founder added that being located in Surat, India's textile hub, has enabled Sudathi to manufacture high-quality outfits at affordable prices.

Marketing and Customer Engagement:

Sudathi's marketing strategy is unique. Instead of bombarding customers with advertisements, they focus on quality and commitment to deliver the best quality fashion at affordable prices.

"The genuine word-of-mouth and customer testimonials are our true brand ambassadors. They inspire us to continuously grow and bring the latest fashion trends.," Viren explains.

These endorsements have organically grown our social media platforms and YouTube significantly: 40,000 on Instagram, 27,000 on Facebook, and around 4,500 on YouTube.

The Journey and Growth:

When Sudathi was launched in September 2023, it offered around 1500 SKUs. The first month was a trial, and to their surprise, they received 3800 orders, generating Rs. 15 lakhs in revenue. By the second month, their revenue jumped to Rs. 75 lakhs.

"We had defined the product perfectly on our website, and 12-13% of our customers are repeat buyers," the co-founder notes.

Their growth trajectory continued, and by the third month, they crossed Rs. 1.3 crores in revenue.

The Surat-based affordable apparel brand's monthly revenue is Rs. 1.3 to 1.6 crores. They aim to achieve a revenue milestone of Rs 100 crores within two years.

The brand also launched its mobile app- Sudathi in December 2032. Within 6 months, it has received over 2,573+ reviews and a stellar 4.4-star rating which is nothing short of remarkable. As a result, it has significantly boosted sales. 

"Our app has around 1 lakh downloads, and the average order value through the app is higher than through the website," Hiren notes.

"We are planning to launch Sudathi globally, starting with the USA. If we find investors who share our vision, we will welcome them, but we are also prepared to grow independently," Hiren shares.

While concluding the interview with Startup Pedia, the co-founder of Sudathi Hiren emphasised the importance of leadership and learning from failures for budding entrepreneurs.

"Most businesses fail because they are not clear about their goals. You need to manage people effectively and develop your manpower," Hiren advises.