Dalit Entrepreneurs


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Dalit Entrepreneurs

  1. 1. The Rise of Dalit Enterprise Source : Economic Times Under the guidance of : Prof. Chowdari Prasad (TAPMI) Presented by : Fenella Andrade Masters in European Studies and Management (MESM) 2010-2012 Manipal Centre for European Studies Manipal University, Karnataka, India
  2. 2. Harsh Bhasker (2005) – Kota tutorials <ul><li>Not a rag to riches story </li></ul><ul><li>Hailing from Jatav caste, had an option to join family leather shoe making business </li></ul><ul><li>Rebellious streak, always set his thoughts high </li></ul><ul><li>1995 – focus led him to gain admission in IIT Roorke </li></ul><ul><li>Shy, small town boy transformed into a young man </li></ul><ul><li>1999 – completed engineering and joined HCL in Noida as a software developer, job was too routine and mind-numbing </li></ul><ul><li>Year later, got together 7 colleagues to start a software firm out of Katwaria Sarai near IIT Delhi campus </li></ul><ul><li>Due to technology meltdown the company folded up </li></ul>
  3. 3. <ul><li>Returned to Agra to start a franchisee of Kota – based Career Point in engineering and medical coaching </li></ul><ul><li>Three years later, launched his own coaching centre and christened it Kota tutorials as people already knew it as Kota Institute </li></ul><ul><li>Three storey building was not sufficient </li></ul><ul><li>Owns two structures, 11 air conditioned classrooms with a capacity to teach 2000 students, two hostels to accommodate 250 students </li></ul><ul><li>Building a new brand coaching centre was not easy, educated Agra on career options </li></ul><ul><li>Students were from under privileged backgrounds </li></ul><ul><li>Earned respect </li></ul><ul><li>Kota tutorials is now in 12 cities, including Aligarh, Dehradhun, Bhatinda through franchisees </li></ul><ul><li>Disclose revenues, but estimated around 10 crore </li></ul>
  4. 4. <ul><li>CASTE ASIDE </li></ul><ul><li>Achieved his father’s dream – “Son is an engineer” </li></ul><ul><li>Compared to earlier he has gained a lot of respect </li></ul><ul><li>Obsessed with work </li></ul><ul><li>He works with professionals but doesn’t trust them and feels that he can do the work better </li></ul><ul><li>Keen watch on whatever happens in the building – LCD screen streaming live feeds from 16 close circuit cameras from reception lobby to office cabins and classrooms </li></ul><ul><li>See main job as motivation and counseling </li></ul><ul><li>He says, “I can walk into any classroom and start teaching, in business you have to be hands on. If there is no teacher, become one and if there is no peon, become a peon.” </li></ul>
  5. 5. <ul><li>2007, enrolled for IIM Calcutta, distance learning MBA programme for working executives. When he started he thought he arrived but then he realized he had just started </li></ul><ul><li>250 employees across Kota tutorials plan to grow the business further and promote it across India, 15 marketing executives who help him in expanding the industries footprints </li></ul><ul><li>Instead of engineering/MBA, he started with polytechnic </li></ul><ul><li>His wife ( MBA) plans to join him next year </li></ul><ul><li>Next big idea: To start with an agricultural industry, he needs 35 crore funding and eyeing international markets like Malaysia, Mauritius and Dubai </li></ul>
  6. 6. Balu (1995) <ul><li>Hails from lower middle class family </li></ul><ul><li>Family was against him starting a business but he was determined </li></ul><ul><li>1995, with a meager capital of Rs 18,000 he could not even purchase a wire-drawing machine </li></ul><ul><li>Two years later, he assembled his first machine using parts of herald car from the grey market, stripped the car of its gear box and assembled the machine </li></ul><ul><li>Decided to set up his own unit but money and discrimination came into picture, required finance, but bank rejected because he was a dalit </li></ul><ul><li>Received two lakhs through a family friend and repaid it in 2001 </li></ul><ul><li>2004, SBI initiative for entrepreneurs yielded Balu a loan of Rs 20 lakhs which he repaid in three years </li></ul>
  7. 7. <ul><li>YES TO RESERVATIONS </li></ul><ul><li>Serious problems for marriage, 32 girls rejected him </li></ul><ul><li>Fortunately his father in law who was a commercial tax collector saw beyond that and supported Balu </li></ul><ul><li>Was diversifying into manufacturing organic pesticides and agrochemicals </li></ul><ul><li>Paperwork for new company was ready and factory was about to come up in Ramnagar, outskirts of Bangalore within a year </li></ul><ul><li>Favors reservations for dalits as the economic conditions in rural areas hasn’t improved </li></ul><ul><li>He realizes the importance of affirmative action not just from the government but also from successful people like him to improve community development </li></ul><ul><li>Future dalit entrepreneurs are hiding their identity because of the dalit tag attached to them </li></ul><ul><li>Aim is to create more dalit entrepreneurs </li></ul>
  8. 8. Ashok Khade (1995) – DAS offshore <ul><li>Comes from a native village in Sangli district, was a bright student despite limitations like lack of electricity and nutrition </li></ul><ul><li>Hunger was an everyday reality for him and his 5 siblings </li></ul><ul><li>He may be an over achiever but has his quirks too – Fountain pen </li></ul><ul><li>His circumstances were far from being amusing or romantic, he recalls how his background was a stumbling block in his education </li></ul><ul><li>Brahmin boys in his class had an upper hand over him in Sanskrit because of the rituals </li></ul><ul><li>1972, during the famine met some good Samaritans </li></ul><ul><li>After school, went to Mumbai to live with his uncle, ended up working at Mazagon Dock </li></ul>
  9. 9. <ul><li>Financial constraints cut short his desire to pursue medicine </li></ul><ul><li>He says, “I went crying to the docks” </li></ul><ul><li>Worked at Mazagon from1975 to 1992 building a career as well as evitable networks </li></ul><ul><li>Was sent to West Germany in 1984 for an assignment related to submarine, quality control and married shortly after returning home </li></ul><ul><li>Managed to complete part time diploma in mechanical engineering along side his job </li></ul><ul><li>1992, Khade’s uncle passed away and this gave a trigger to his entrepreneurial ambitions </li></ul><ul><li>DAS offshore came into being named after the initials of the 3 brothers established in 1995 without announce of external capital </li></ul><ul><li>Did not have investors and did not want to start with bank loan </li></ul>
  10. 10. <ul><li>First project came from Mazagon Dock, their former employer </li></ul><ul><li>P V Nair retired Indian Navy Officer and former Chairman of Mazagon Dock recommended DAD to complete the project </li></ul><ul><li>Awarded a contract worth 1.82 crore </li></ul><ul><li>Khade battled against both financial and social odds, did not have positive discrimination towards dalits </li></ul><ul><li>Strong believer in merit and believes that only those who deserve should get the job </li></ul><ul><li>Have trained more than 1000 employees </li></ul><ul><li>Sitaram Agarwal proprietor of Shri Shiv Enterprises which supplies steel to DAS has known Khade since 1991 </li></ul><ul><li>DAS maintains ISO standards of quality and meets timelines, payments are always on time barring ups and downs during market fluctuations </li></ul><ul><li>DAS Offshore clients include ONGC, Leighton Australia, Essar, Hyundai and British Gas Exploration and Production India </li></ul>
  11. 11. <ul><li>Khade brother’s have their respective strengths: </li></ul><ul><ul><li>Elder brother D atta overseas goal management </li></ul></ul><ul><ul><li>A shok Khade looks after quality control because of his experience and skill in design drawing </li></ul></ul><ul><ul><li>Younger brother S uresh handles labour issues </li></ul></ul><ul><li>Last year DAS deployed 1760 workers at Bombay High and finished the work without LTI (Loss of Time and Injury) </li></ul><ul><li>Company completed skywalks at Sion and Ghatkopar in Mumbai and is currently building two more in Airoli and Kurla </li></ul><ul><li>Khade plans to launch the company’s Initial Public Offering (IPO) in 2012 </li></ul><ul><li>He purchased 140 acres of land near Murud – Janjira fabrication yard. India’s first private yard, project to be in operation by the end of the year </li></ul><ul><li>Intends to build a school, hospital and engineering college there </li></ul><ul><li>Khade does not give preference to Dalits but his family gives back to the community </li></ul><ul><li>Although he doesn’t like to quanitify, he estimates he has given almost 50 lakhs to the community </li></ul>
  12. 12. Pravin Meshram (2007) – Bharat Electricals <ul><li>Coming from a lower middle class family in Nagpur </li></ul><ul><li>From young age, wanted to do his own business rather than work under someone </li></ul><ul><li>Earned a diploma in Mechanical Engineering from Nagpur University in 1998 </li></ul><ul><li>Joined his father’s small electrical repairing shop where he mastered electrical repairs and equipment installation and formed networks </li></ul><ul><li>One of the shop’s clients was MSEB ( Maharashtra State Electricity Board) which outsourced small repair and installations for its plants and offices </li></ul><ul><li>Hand to mouth existence </li></ul><ul><li>Booked advertisements for publications, dispatched plastic boxes for nearby factories and after the last failure, went to work as a electrician for a salary of Rs 2000 </li></ul>
  13. 13. <ul><li>He wanted his own business and this time he chose electrical </li></ul><ul><li>2006, happened to visit’s his friends transformer factory, worked there for six months and understood the manufacturing process </li></ul><ul><li>Late 2007, he borrowed two lakh from his father and one lakh from his friend to set up a small transformer manufacturing unit </li></ul><ul><li>First transformer built was rejected by MSEB </li></ul><ul><li>After two months it got approved, first transformer supplied was 25Kv </li></ul><ul><li>Within a year Bharat Electricals crossed one crore in turnover </li></ul><ul><li>Public did not believe in him and it took years to build the reputation </li></ul><ul><li>Today in his one acre plot he has the capacity to manufacture 3000 transformers of 25 – 1000 KV capacity </li></ul><ul><li>About 80 per cent transformers are supplied to MSEB and the remaining to the SEB’s in Chattisgarh and MP </li></ul>
  14. 14. <ul><li>Two intermediate goals: </li></ul><ul><ul><li>Foreign travel for his parents </li></ul></ul><ul><ul><li>Rs 100 crore turnover for Bharat Electricals </li></ul></ul><ul><li>Seting up capacity to manufacture larger transformers of 2000 – 5000 KV which could increase the revenues to Rs 50 crore in 2 years </li></ul><ul><li>Wants new recruits from backward classes and is willing to train them </li></ul><ul><li>Trying to talk a Chinese company to partner him in this new upcoming project </li></ul>
  15. 15. Sushil Patil (2003) - IEPC (Indo – Engineering Project Cooperation) <ul><li>Setbacks were not new for Patil, from an early age he witnessed financial strain and prejudice </li></ul><ul><li>The day he saw his father bow down, he made up his mind </li></ul><ul><li>He saw the discrimination his father went through when he was a laborer in an ordnance factory </li></ul><ul><li>1995, after completing civil engineering, worked for several construction firms, but he soon quit as he did not want to work under anyone </li></ul><ul><li>1996, borrowed one lakh from a friend and started a stock broking firm, but the venture failed as he knew very little about the job </li></ul><ul><li>1999, started cleaning overhead tanks but went into loss again and lost Rs one lakh and was saddled with Rs seven lakh liability </li></ul><ul><li>2000, he sunk one lakh in poultry business </li></ul>
  16. 16. <ul><li>Returned to his calling: engineering, this time he played safe, worked for a small firm for six months and learned project implementation strategies </li></ul><ul><li>2003, used last Rs 5000 of his savings and started IEPC (Indo – Engineering Project Cooperation) </li></ul><ul><li>Today the company provides engineering, procurement and construction (EPC) services to companies – basically assembling power plant and handles projects worth 2000 crore </li></ul><ul><li>Beginnings were small, started with engineering and designing feasibility project for a 8MW plant in Rayapati, Chattisgarh through a friend’s reference </li></ul><ul><li>2008, big break, when he was asked to do a techno feasibility project for 108MW, gas based power plant of NDPL (North Delhi Power Limited) jointly commissioned by the TATA Group and Delhi Governement </li></ul>
  17. 17. <ul><li>Initially getting work done from big companies was a big ask </li></ul><ul><li>Did not believe in him as he was a Dalit </li></ul><ul><li>At times projects were denied because of caste2003, people from the upper caste were reluctant to work with him </li></ul><ul><li>To break this system he offered them concessions </li></ul><ul><li>Earlier 1 to 10 MW projects came his way, but now he handles 100 MW projects </li></ul><ul><li>Hires engineers who have retired from state owned or private companies and offering them with a 50 per cent mark up in salary over the market and other incentives </li></ul><ul><li>IEPC deals only with those companies who are capable of paying the money on time and not scrimp on consultancy fees </li></ul><ul><li>Aim is to provide clients with the best service in the shortest period on time </li></ul><ul><li>Projecting revenue of 380 crore this year </li></ul>
  18. 18. <ul><li>Biggest plan for them is to run power plants </li></ul><ul><li>ISPC wants to set up 5000MW of capacity across coal, solar, hydro and thermal </li></ul><ul><li>They are trying to collaborate with German and Spanish firms </li></ul><ul><li>Patil makes sure he gives back to the community, out of 480 workers 150 are dalits </li></ul><ul><li>He says, in the next five years, staff strength will be 1000 and we will try to get many needy people on board, irrespective of caste </li></ul><ul><li>Another dream is to construct a hospital in his hometown Nagpur where the poor and needy will be treated for free </li></ul>
  19. 19. <ul><li>THANK YOU </li></ul>