The story of a uniquely Indian problem

This is how a ‘jugaad’ led to an Rs. 10,600 Cr company. 
The story of a uniquely Indian problem, with a uniquely Indian solution.

It’s 1977.

ACs and TVs have been around for a few years and refrigerators have just come into houses.

We all have seen electricity fluctuations…imagine those during the 70s.

Our hero, Mr. Kochouseph Chittilappilly smelled a business opportunity.

At the young age of 27, he borrowed a sum of ₹1 lakh from his father, took up a shed in the city of Kochi, hired a couple of high-school dropouts and began making voltage stabilizers!

Thus, V-Guard was born. A ‘guard’ for voltage fluctuations for your expensive electronic equipment.

One of the first problems our hero faced was the labour union.

Being the smart entrepreneur he was, he found a quick and smart way out.

He decided to get his manufacturing done by women’s societies in rural Kerela.

In doing so he:

1) Outsourced rather than spending Crores on setting up factories. 
2) Provided employment to women in rural parts of the country
3) Escaped the ruckus on labour unions
4) Got exemptions on excise duties

What a masterstroke.

Now, V-Guard has diversified both in product and geography.

It makes more than 8 different products and has strongly cemented itself in the stabiliser industry with a market share of 51%!

It has reduced its dependency on the south and has created a respectable foothold in the north.

At the end of the day, entrepreneurship is just problem-solving.

Do you agree?

#entrepreneurship #business #opportunity