Bootstrapping to $6M from Durgapur, West Bengal: Pinnacle CAD CEO Bimal Patwari (Part 6)

Sramana: Were you able to change the layers of service you provided from 2-D to 3-D? Would you talk about the technologies you were standardizing on?

Bimal Patwari: Absolutely. There were several companies that offered modeling software. However, Autodesk has a worldwide presence. Everyone works on their platform. We also bought some other software solutions for specialized solutions. In 2006 I invested almost $8 million into my company to accomplish this modernization effort.

Sramana: How did you finance that?

Bimal Patwari: Bankers financed me. Venture capital was not very popular there, and the ones who were there were not interested in backing me because my return rate was too low for their goals. I started with a small loan in 1992, and I always paid my loans on time. As a result, I had a very good credit history.

Sramana: Were you working with a bank in Durgapur?

Bimal Patwari: Yes. They were willing to finance me $5 million with a $3 million turnover because I was projecting a much higher turnover. The rest of the $8 million came from cash reserves from the company itself. I had so much faith in the company that I invested every penny that I had back into it.

Sramana: In 2007 you invested $8 million in technology and infrastructure. What happened after that?

Bimal Patwari: It took about two years to build out the infrastructure. To work with U.S. companies I needed to provide good accommodations and bring in outside people to work for me. As part of that expansion program I invested a lot into the actual infrastructure. We had fiber optic connections and a building management system from Honeywell.

Sramana: Because you had so many infrastructure developments, were you able to get a term loan for financing?

Bimal Patwari: Absolutely. We also created housing for 500 people on the campus. We have a fantastic campus with excellent facilities. If you make people happy, they will enjoy the workplace. We have a great atmosphere with tennis courts, swimming pools and everything else you could want. It is a great live-work environment.

Sramana: How did the business evolve from 2007?

Bimal Patwari: I could not afford to make mistakes, so I wanted to hire more experienced people. We started hiring from all over India. I also started hiring people who were returning from the U.S. The employment opportunities here are much more significant. I try to hire those people because they know U.S. construction.

Right after I started the technology reinvestment, one of my clients in Indiana called me. There was a lot of construction going on in New Orleans after the hurricane [Katrina]. He had me go to the U.S.and asked me to help him with his modeling and drafting support. It was the one factor that was holding back his company’s growth. He was not able to get the right people. I told him that I could help him, but I needed him to train my people so that they would know his processes. I sent one of my people to his site for three months for training.

This segment is part 6 in the series : Bootstrapping to $6M from Durgapur, West Bengal: Pinnacle CAD CEO Bimal Patwari
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