Ingredients of Success: Innovation, Growth and Teamwork
Started way back in 1984 with a production range of 25 mixer-grinders and 100 nonstick cookwares, Jaipan Industries under the leadership of J N Agarwal is touted as one of the biggest manufacturers of home appliances and non-stick cookwares today
When and under what circumstances did you start your entrepreneurial journey?
We have a strong background in manufacturing and marketing home appliances in India. We started with marketing mixer-grinder in Mumbai in 1981. However, in order to cater to the rapidly growing market, we soon started our own brand of mixer-grinder, Jyoti.
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| J N Agarwal MD, Jaipan Industries |
Having spent a considerable amount of time in the market marketing mixer-grinders I had a certain edge. I could understand the market requirements and therefore could immediately modify and produce various type of home appliances. I was the first in India to introduce three-jar mixer grinders.
At a later stage we introduced our brand Jaipan to have global vision of our brand.
You are competing with giants like Philips, Bajaj, etc., how do you differentiate yourself from them?
Our vision is to produce good quality home appliances at economical rates for our customers belonging to middle and upper middle class.
We manufacture a wide range of reasonably priced home appliances like--mixer grinder, JMG, non-stick cookware, Roti maker, pressure cooker, iron, toaster, etc. for all those who’s priority is value for money.
That is how we have been able to sustain our brand among giants like Philips and Bajaj in India. However, we are not bound by boundaries, we have a strong market for our products in Middle- East, Sri Lanka, Nepal, Bangladesh and African countries.
What business strategies did you adopt in view of your vision to set up the largest domestic appliances factory in the world and to provide the Indian consumers with the world class domestic appliances?
We take part in various overseas exhibitions, seminars, conferences, etc where we try to do two things-- adopt latest technologies and try to learn more about the needs of Indian customers. Understanding the needs of our consumers helps us translate them into creating world class appliances to suit their needs. We are constantly innovating our products to make them world class. We have state of art factories in Silvassa and Mumbai.
What growth initiatives has your company planned in the near future?
We are importing two new automatic lines (plants) for our non-stick cookware products. Also, we are planning to set up automatic mixer motor manufacturing plant to cope with the growing demand of the domestic and overseas markets.
We have also acquired a large factory for manufacturing pressure cookers. Pressure cookers have the highest growth rate in India.
How do you see your company performing over the next financial year?
We have set a target of achieving at least 20 per cent growth in the next financial year. To achieve this, we are opening up new territories, appointing new distributors, and formulating various marketing schemes. Also, we are introducing various new products in our kitty. We have tied up with the media for telemarketing of products that are impulse purchases. We have also set up a direct marketing channel to reach the target.
What kind of marketing strategies have you adopted to get an edge over your competitors?
Just recently, we have launched a scheme wherein we are giving our dealers and distributors across India an opportunity to go on an overseas trip. Though it is difficult for such a small appliances market, we are still confident that these marketing schemes will kill the competition.
How do you keep your workforce motivated?
The company’s workforce is equally responsible for achieving success and growth. We have various incentives for our production teams at various levels to achieve the targets. Also, we promote bright candidates who come up with new techniques to be implemented in factories to cut cost and improve overall efficiency. We have training programs at regular intervals for quality control, at one end, and for management, at the other. We have motivational lectures for all levels for beating stress and being healthy. We also have a target-based incentive scheme for our marketing teams. Promoting the right people at the right time is key to our success.
Why did you decide to expand in the mobile hand set business? What specific plans do you have here?
In order to diversify, we decided to expand in the mobile handset business, which is currently growing at an alarming rate in India. We had conducted a market survey for mobile businesses across India, which showed that it is undoubtedly the best business proposition for an entrepreneur considering his options.
With the introduction of 3G, we feel that sky is the limit for this business. The rural market is still untapped, and there is a huge potential in there for this technology. And again, the right product at the right price will definitely succeed in the Indian market.
How has the tie-up with Kmart (a chain of discount department stores) helped you?
We had supplied a huge quantity of nonstick cookware to Kmart, which was our gateway to the US Market. This has helped us in identifying serious buyers in the US. With Kmart, we had very difficult challenge of competing with global leaders and delivering the best. We also supplied good quantities to Dollar General, One dollar, and various other clients in the US. We understood the requirements that were unique to each customer, unlike in India. This experience gave us a different thrust and boost to our confidence to be able to produce and supply in a very stringent time frame with the best of quality and quantity. It was a very satisfying experience for us.
Apart from home appliances and consumer durables, and now mobile hand-sets, do you plan to diversify in any other sector?
We plan to diversify into various other products, from small appliances to white goods. The transformation is difficult but not impossible. We are studying the market vis-Ã -vis the brand loyalty among our customers. Customer expectation is very important, and to be able to understand and deliver it, is the challenge. White goods is a very big market compared to the small appliances market, and we hope to introduce some very good products, which again will be value for money for our loyal customers. By this diversification, we will be able to achieve our target growth in a big league.
As a progressive entrepreneur, how important has innovation (in products) been to you? How has it helped you grow?
We are constantly innovating our products to suite Indian consumer. We believe, innovation can kill our competitors and give us an edge over our competitors.
How do you ensure customer satisfaction? How much of your workforce have you allocated to after-sales services?
We have a strong dealer and distributor lineup across India and have a dedicated workforce for after-sales service across India to cater to the large Indian consumer. Due to a strong after-sales service setup, we are able to satisfy our consumers; so they are loyal to us. We are also holding exhibitions to promote and educate consumers about various new products and also have free demonstration facilities at various places.
Three crucial learnings from your journey so far:
Innovation, growth and teamwork are key to our success. I have learned this through my journey.
Innovation is truly the key to success in any field. Today my requirements are different from yesterday and will be different again tomorrow, so we have to change ourselves according to the rapidly changing environment around us. This is applicable to business as well.
Next is growth. If we do not grow than we will be left behind. Growth is life and stagnancy is dead. So, if we have to live than we have to grow, and only if we grow, we can contribute to our society. Growth is very important for our life, but you cannot grow alone. For achieving success we must work as a team. It is a team that takes us from one level to another and one milestone to another.
This is my learning of business, and I still strive to succeed more in my new ventures with these three factors in my mind.
How difficult has it been to build a product company in India?
To succeed is an enormous challenge in India. First, we have to create a product, then create a market for it, and then sell the product. Each task in itself is huge.
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