Rising success
You are likely to encounter similar scenes in dairies, vegetable markets and even in many manufacturing units.
By Niranjan Mudholkar, TNN |
Walk into any FMCG retail outlet and you are bound to see goods stocked in plastic crates. You are likely to encounter similar scenes in dairies, vegetable markets and even in many manufacturing units. Thirty years ago, the goods may have been the same but the crates would have been wooden, corrugated or even of metal. The shift to a plastic economy was very much on the cards, and one name that played a key role in bringing about this change was Nilkamal.
Of course, it was not easy in the beginning (it never is!). The competition from the conventional material handling products was strong. But if you dream to achieve big, you have to persevere no matter how difficult the obstacles are. That’s why Nilkamal is a name to reckon with in the industry. In fact, today it has successfully diversified into many other fields.
It’s been a fascinating entrepreneurial journey that started sometime back in the 1960s. The Parekh Brothers – Vaman and Sharad, the founders of the Nilkamal Group – had a modest start. "Along with their two other brothers, they helped their father set up a plastic buttons manufacturing facility and graduated to house wares in the 1960s," says Manish Parekh, Nilkamal's Director and a 2nd generation entrepreneur. House ware was a very new business then and the company had a different brand name. "This was the genesis of the Parekh Brothers entering the plastics business in India. In 1980, the family amicably parted ways and the two brothers (Vaman and Sharad) joined hands to create the Nilkamal Brand," he informs.
The business started with manufacturing of crates for various material handling applications like dairies, SSI and so on. As mentioned earlier, Nilkamal had a tough time initially but it gradually became successful. "Plastic crates were a new concept and did not have immediate acceptance in the market, making it difficult to sell. Through persistence and hard work, the business began to gain ground. A motivated and enthusiastic sales and marketing structure was put in place to boost the marketability of the product line," says Mr Manish explaining the cause behind Nilkamal's triumph.
Nilkamal focused only on the material handling business until about 1990. Somewhere down the line, the people running the business realised the potential of moulded furniture in the country and Nilkamal entered into this business in 1991. Of course, it was not a decision taken all of a sudden and there were valid reasons. "Our manufacturing facilities were versatile and we realised the opportunity in the emerging plastic economy.
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Moulded Plastic furniture had its own advantages in terms of value for money proposition," explains Manish. Today, irrespective of the moulded furniture industry’s market condition, Nilkamal's share has been consistently rising. In India, it enjoys a substantial lead over its rivals. "Nilkamal is a clear leader in this space consistently being a lap ahead of the closest competitor," he adds. So, what sets Nilkamal apart? Manish answers, "The brand equity that Nilkamal enjoys in the market as the most trusted brand is what sets it apart."
Although it started small, Nilkamal today is probably the largest manufacturer of moulded furniture in the world! It is also creating a mark in the material handling business. Therefore, it is very likely that the bar must have been raised a little higher now. Manish confirms this by saying, "In the material handling systems business, Nilkamal aims to be a one-stop-shop for all material handling solutions with various international collaborations and joint ventures. Our focus also lies on international markets." This is reflected in Nilkamal's successful foray in South Asian countries like Bangladesh and Sri Lanka, where it has its manufacturing facilities and successful operations.
This is indeed a remarkable accomplishment for a company that started small. The Parekh Brothers did have a vision when they started the journey in 1960s. But what is it that sustained that vision and brought about this long and successful run? The answer comes from the man who has been involved with it right from the beginning, Vaman V Parekh – now the Chairman of Nilkamal. He explains it all, "Leadership, continued focus, reliability of the brand, unmatched quality systems and passion in both the moulded furniture and material handling systems have been the secrets behind Nilkamal's success."
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Today Nilkamal is being taken care of by the 2nd generation entrepreneurs – Manish, Hiten and Nayan Parekh. "By far, it is the entrepreneurial spirit that we have inherited from the founders of Nilkamal," remarks Manish. Together, these three have further expanded Nilkamal's reach. They have led Nilkamal's foray in retail through the home solutions segment under the brand name @home. In the material handling vertical, they have created newer openings for growth by spearheading international strategic alliances and collaborations in various countries including Germany, France and Belgium. Born with the right genes, one would say.The Nilkamal success story is something many budding entrepreneurs would aspire to replicate in their field of business. What is it that they can take from this story? It is the senior most Parekh who replies, "Relentless pursuit of excellence, passion for achievement, self belief and hard work has led Nilkamal to where it stands today. For budding entrepreneurs, my advice would be – dream big, have a vision and work relentlessly and persistently to achieve it." Perhaps, all success stories have the same ingredients; it's only the names that get changed!
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