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Friday, May 16, 2008
Chase a small idea and strike it BIG
Publication: The Economic Times, Edition: Bangalore/Chandigarh, Journalist: Shailesh Menon, Page No: 15, Location: Top-Right, Width(cms): 24, Height(cms): 30
, Size(sq.cms): 720
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and strike it BIG
The secret behind a start-up's success is the entrepreneur's ability to see a market need that can be tapped. Shailesh Menon profiles four companies that have achieved this
SSEMBLY line production was an idea that laid the foundation of the industrial era in the US. Unmindful of his detractors and those who ridiculed him, automobile entre­preneur Henry Ford engineered a model that set the base for manufacturing in Amer­ica, and later in other parts of the world.
Ford's million-dollar idea not only made cars affordable, but also inspired other entrepreneurs to adopt a similar mass production strategy, which helped the industrial revolution gather pace. For sure, an idea can change the world. Far away from Detroit, a 26-year-old Indian Army recruit, Nalkur Sripad Rao, was seriously thinking about a business idea, that he hoped would help him start on his own, once he returned home. The year was 1946. Rao was posted in the Per­sian Gulf, and was in charge of relief supplies to Russia. One of his duties was to keep the wartime supply chain intact. This was his first brush with the use of pesticides. He often fumigated sup­plies with methyl bromide. And many a time, he also had to dust refugees with '10% DDT' against typhus-causing lice.
Soon after, Mr Rao returned to India with his savings and decided to start a pest control business. "I called my firm Good-will Pest Control," says the octogenarian Mr Rao from his Mumbai home. "But sadly though, the firm did not do well and I had to wind up in three months. People were clueless about pest control those days. Some even thought it was a taboo to kill pests and rodents then," he reminisces.
Ruined financially, Mr Rao took up a job with a plantation company as an estate manager. But he hadn't given up on his start-up dreams. He, along with his brother, decided to contin­ue pest control, but as part-time vocation. Soon they got their first contract with the Oil Seeds Trading Company, where they had to fumigate railway wagons carrying groundnuts for ex­port. A year later, they bagged a post-construction termite treatment mandate from Raghuvanshi Mills.
"Encouraged by these contracts, I gave up my job and rent­ed a tiny office near Flora Fountain in Mumbai and launched
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a private limited company in July 1954. My start-up capital was only Rs 3,000. That company grew into what is now the Pest Control of India (PCI)," says Mr Rao, who is currently the company's chairman emeritus. PCI is easily one of the largest pest management companies in India. The company logs a 30% growth year-on-year and claims presence in 150 cities with nearly 3,500 employees on its rolls.
"When I started, agriculture was the backbone of the coun­try. I had a hunch, there'd be a need for pest control specialists to protect grain houses and production mills. Looking back, I can say I made big on my idea," Mr Rao says.
Mr Rao says he has faced many challenges running his busi­ness. "Working capital was the biggest problem. I even had to pledge my wife's jewellery on three occasions," he says. "The oth­er big problem was finding unadulterated chemicals. We found it very difficult to implement quality control standards," he added.
Today, PCI, which has a turnover of over Rs 150 crore, now plans to expand to newer product lines. PCI's success shows that an innovative business initiative is one that addresses an obvious need in the market. But then, there are also other reasons that drive people to start new successful ventures. The suicide of a dose friend motivated the 19-year-old Shahnaz Husain to start a business in ayurvedic cosmetic products and beauty training.
"While I was studying in London, this friend, who was also a successful model, suffered burns on her body after using a sun tan lotion with chemical base. The girl was so mentally trau-matised that she committed suicide soon after. That was when I decided, I'd work towards creating cosmetics out of plants and herbs," Ms Husain says.
Having majored in cosmetic chemistry, it was quite an effort for Ms Husain to "unlearn" all that she had leamt from Helena Rubinstein and Schwarzkopf. "I trashed salon treatment methods and products of those times and offered a natural al­ternative based on the good health of the skin and hair," Ms Husain adds. Ms Husain started her venture in a very small way, on the verandah of her home in Delhi. "I borrowed Rs 35,000 from my father to start the business. Subsequently, I ex-
panded it on the franchisee system," adds Ms Husain.
Talwalkars Better Value is one good example how hobby-tumed-businesses have the potential to make it big. Popularly known as Talwalkars—it is India's largest chain of health centres with approximately one lakh members. Talwalkars Gym's roots can be traced to Vishnu Talwalkar, a wrestler of local repute, who started the New Physical Gymnasium at Khar, a Mumbai suburb, in 1939. Soon after, MrTalwalkar'ssonMadhukarjoined him.
Years later, Madhukar quit his job as a textile engineer and set up the first Talwalkars Gymnasium in 1965, on Linking Road in Bandra, another Mumbai suburb. Since then, thousands have sweated their way to health at Talwalkars at its 50-odd branches across Mumbai, Pune, Delhi, Indore and Cochin. And many of them, like Mr Talwalkar himself, have felt their lives change for the better. "Physical fitness became a passion. By making it my profession, I made sure I enjoyed every moment of my working life," says Madhukar in one of his interviews. The Rs 50-crore Tal­walkars plans to reach the 100-centre target by this year end.
Opportunities for growth are everywhere waiting to be tapped. However, we let countless growth opportunities slip through. Mumbai-based Aeon Software's example highlights this. Aeon is a privately held company that develops office management software for professional business people. The partners knew they could do a lot more with IT, rather than servicing bull-headed corporate clients. Thus mumbaifish.com was bom. The portal undertakes to supply freshly caught fish — cleaned and sliced — to Mumbai homes based on orders that are placed one-day in advance.
"The portal is just an extension to our core business, but mumbaifish.com is very well-integrated with its own suppliers. We have friends who go fishing in boats and trawlers everyday," says Leena Joseph of Aeon Software. "Mumbai fish is a good brand to sell. Just eight months into this business, we already have 200-2 50 regular customers. We have plans to take it on a larger scale, by having our own processing unit and adding more varieties to our product basket," Ms Joseph said.
shailesh.menon@timesgroup.com