Shahnaz Hussain - A Successful Indian Woman Entrepreneur

1. Shahnaz Hussain - A Successful Indian
Woman Entrepreneur
Introduction
She captured the markets around the world and now she wants to
conquer space. In an innovative move, Shahnaz Husain has
started work on formulations that astronauts could carry with
them in their extraterrestrial sojourns to protect their skin from
the ravages of space travel and slow down the ageing process.

2. She has sent National Aeronautics and Space Administration
(NASA) free samples of her moisturizers, hoping that they will be
used on space expeditions. Shahnaz Husain is one of India's most
successful women entrepreneurs. Her company, Shahnaz Husain
Herbals is one of the largest manufacturers of herbal products in
the world. It formulates and markets over 400 products for
various beauty and health needs and has a strong presence across
the globe, from the USA to Asia.
In 2002, the Shahnaz Husain Group, based in New Delhi, was
worth $100 million. It employed about 4200 people in 650 salons
spread across 104 countries. The Group has seen a good growth
rate in the 25 years that it has been in business.
The average growth rate in the initial years (late 1970s to the
early 1980s) was 15-20%. In the 1990s the average growth rate
was 19.4%. A number of awards, both national and international
have been conferred on Shahnaz Husain.
Some of them are "The Arch of Europe Gold Star for Quality",
"One of the Leading Women Entrepreneurs of the World", "The
2000 Millennium Medal of Honor", "Rajiv Gandhi Sadbhavana
Award", etc. (Refer Exhibit I & II)
The Making of an Entrepreneur
Shahnaz Husain belongs to a royal Muslim family which migrated
from Samarkhand to India and later held high positions in the
princely kingdoms of Bhopal and Hyderabad before India's
independence. Shahnaz received her schooling in an Irish convent

3. and because of the influence of her father, Chief Justice N.U. Beg,
she developed a love for poetry and English Literature.
She thus had the advantage of growing up in a traditional family
and receiving a modern education. She was married at the age of
15 and was a mother by the next year. When her husband was
posted in Teheran, Iran, she developed an interest in beauty
treatments and decided to study cosmetology. To support the
expenses of the training financially, she wrote articles for the Iran
Tribune on various topics under different names.
In the course of her studies, she learnt of the harmful effects of
chemicals on the human body. Consequently, she turned her
attention to Ayurveda (Refer Exhibit III), which she believed was

4. the ideal alternative to chemical cosmetics, which not only
harmed the human system but also led to the deterioration of the
environment in the long run.
After leaving Teheran, she trained extensively in cosmetic therapy
for 10 years in some of the leading institutes of London, Paris,
New York and Copenhagen. On her return to India in 1977 she set
up her own salon at her house in Delhi with an initial investment
of Rs 35000. In contrast to salons offering chemical treatments,
Shahnaz offered Ayurvedic products.
Entrepreneurship-The Shahnaz Husain Way
Shahnaz Husain uses the Ayurvedic method of treatment, which
uses natural formulations to cure ailments. She is the pioneer and
leader of Ayurvedic beauty products in the world offering
"Natural Care and Cure". The Shahnaz Husain Group offers
exclusive salon treatments geared to individual needs as well as a
number of commercial formulations for the treatment of specific
problems like acne, pimples, pigmentation, dehydration, alopecia
(hair loss), etc.
According to the Group, ayurvedic products are well suited to
human skin and hair as they are non-toxic and have no harmful
side effects. The human body adapts well to the natural
treatments of Ayurveda while it has an inbuilt resistance toward
chemical treatments. This makes the system all the more
effective.

5. The Group's sophisticated R&D units develop the products and
put them through stringent quality control tests. These products
are environment friendly and no testing is done on animals. All
the products offered by the group are entirely natural and carry
the guarantee of purity and safety. Shahnaz offers a wide variety
of over 400 products for all age groups and for a variety of
problems (Refer Exhibit IV).
She uses natural ingredients - fruits, flowers, herbs, vegetables,
honey, - as the base for most of her products. More complicated
and exclusive treatments using gold and pearls have also been
developed.Shahnazhas recently launched the Oxygen Range with
an Oxygen cream, an Oxygen mask and facials using ingredients
which breathe life into the skin and revitalize it. The Shahnaz
Husain Group has two R&D units and a herb and flower farm near
Delhi. A degree of quality control is exercised at every stage of the

6. product development, right from the raw material stage to the
end product. Various methods of soil culture and cultivation are
followed to improve the quality of the final product. The
extraction of essential oils and decoctions, infusions, powders and
tinctures, is carried out using the latest technology.
All the procedures are carried out in accordance with the
Ayurvedic system. Shahnaz believes that high quality is ensured
only by the rigid exercise of control at every stage of production.
In spite of the huge size of her business and the wide variety of
products she deals in, Shahnaz Husain has never advertised. She
has relied entirely on word-of-mouth publicity to make her
products known to customers.
She believes that a satisfied customer is the best form of
advertisement. Before Shahnaz Husain entered the retail market,
her clinics were the only outlets for her products. By the 1990s,
the range and popularity of Shahnaz products had increased so
much that her products were carried by most of the big retail
stores in India and abroad.
She has been able to achieve growth due to the quality of her
products and the result-oriented treatments she offers. She
commented, "I have relied only on clientele feedback, based on
clinical treatments and this is what has made the ranges truly
unique and result oriented." In 1977, when she returned to India,

7. she set up a parlorat her home in New Delhi. She had then put up
a banner with her qualifications on it.
Within days she was booked for the next 6 months. She said, "I
removed the banner and since then I have never advertised. I
have let my products speak for themselves." Shahnaz was
disturbed by the fact that India was not represented in any of the
Global beauty forums of the world beauty congresses. Deciding to
change this situation, she represented the country for the first
time in the CIDESCO1 beauty congress in the late 1970s.
"It was my aim to get India on the world beauty map as I felt
terrible about the fact that India was never represented at any
world beauty congress," said Shahnaz. She was appointed
President for the day's proceedings at the congress and she used
this opportunity to focus the world's attention on Ayurveda
The Turning Point
The turning point in her business came when she represented
India at the Festival of India in 1980. Her team was given a
counter in the perfumery section of Selfridges in London. She
managed to sell her entire consignment in 3 days and also broke
the store's record for cosmetics sales for the year. As a result, she
was offered a permanent counter in Selfridges. Shahnaz was the
first Asian whose goods were retailed by the the Galeries
Lafayette in Paris. Although it was not easy to enter the highly
competitive western markets and especially difficult to attract

8. attention to the Indian system of Ayurveda, she was able to gain a
firm foothold in the markets. Shahnaz Husain products are sold at
many prestigious stores around the world such as Harrods and
Selfridges in London, the Galeries Lafayette in Paris,
Bloomingdales in New York, the Seibu chain in Japan and Sultan
Stores in the Middle East. Her products are also carried by other
exclusive outlets in the Middle East, Asia and Africa. Shahnaz
Husain has used the franchising mode to expand her business in
India and abroad.
She has a large network of over 600 franchises and associate
clinics around the world. All the franchisees are required to
undergo training in specialized treatments at Shahnaz Husain's
school of beauty therapy. All franchisees obtain the right to use
the Shahnaz Husain name and her specialized treatments and are
allowed a 30% profit margin on the sale of Shahnaz Husain
products. In 2002, the Shahnaz Husain Group obtained distributor
rights for Australia, New Zealand and the Fiji Islands.
Distribution channels were first set up in the major cities of
Australia, and later in New Zealand and Fiji. This was followed by
the setting up of herbal clinics, first in Sydney and later in other
Australian cities, New Zealand and Fiji by the first half of 2003.
The Shahnaz Husain Group has about 40 distributors and more
than 600 sub distributors all over India. The Group sells not only in
the cities but also in the small towns. In addition, the Group owns

9. about 20 clinics and outlets in New Delhi. All other outlets are run
on the franchise system. The Group does not make any financial
investment in its franchises, nor does it have any share in their
profits.
Diversification
It has also set up two Shahnaz Husain Ayurvedic Health Resorts,
one near Delhi and another in collaboration with the Hyakumata
group of Japan in the US island of Saipan. These resorts which can
accommodate about 200 people at a time, aim at providing
urbanites treatments and programs designed to counteract the
stress of modern life. The Group hasalso been holdingdiscussions
with major five star hotels in New Delhi and New York to set up
health spas. Shahnaz Husain products normally cater to the
premium end of the market and are rather expensive. Shahnaz
justifies the price citing quality, purity and high excise duties as
the reasons. In 2002, however, she developed a product for the
mass market, a Fairness Dream Cream, priced at Rs 68 for 50gms.
Training Future Entrepreneurs
Seeing the need for internationally recognized institutes that
offered professional training in beauty, Shahnaz Husain set up
Woman's World International. This was started at a time when
people who wanted to train in beauty treatments and therapy
could only get apprenticeship training. The institute which is
affiliated to ITEC, U.K3 offers training in cosmetic therapy and
combines theoretical knowledge with practical training. Students
study physiology and the human anatomy to understand the

10. scientific principles of beauty and become familiar with the major
systems of the human body. They are taught the practical skills of
massage and make-up under the expert guidance of a qualified
therapist. They also learn the use of various skin and hair gadgets.
In addition, they study nutrition, weight control and exercise.
Students are also given basic training on setting up and running
salons and maintaining hygiene.
In addition, they learn communication skills and general business
management skills. The institute has branches in New Delhi,
Mumbai and Noida. Shahnaz later started the Men's World
International because of the demand for men trained in beauty
treatments. These institutes offer Diploma Courses and Post
Graduate Courses in beauty and cosmetic therapy. They also offer
refresher courses and courses on personal grooming. (Refer
Exhibit VI for Shahnaz Husain Beauty Schools)
The Shahnaz Husain Ayurvedic Centre for Panchkarma, Dhara and
Kerala Massage also imparts training in these traditional
disciplines. Students are taught the Ayurvedic system of
"Tridosha" (Refer Exhibit III) for identifying ailments. A qualified
Ayurvedic doctor conducts these classes.
Shahnaz has also started 'Shamute', a free training school in
cosmetic therapy for the speech and hearing impaired. The
training they receive in this school helps them lead a self reliant

11. and purposeful life despite their handicap. Even after they qualify
as beauticians, they are offered guidance and advice throughout
their career.
Lessons on Entrepreneurship
Shahnaz Husain has acquired worldwide recognition. Her
dedicationand relentless hard work have paid off and she heads a
Group which is the largest of its kind in the world.
"It is important to have a dream and to believe in the magic of
your dreams" says Shahnaz, who has been able to convert her
own dream into a business worth millions of dollars.
Shahnaz believes that a true entrepreneur is a person who has
independence of spirit. "One should be innovative, dynamic and
willing to try every avenue towards success." She does not look on
her work as a career. It is more like an obsession and the sole
purpose of her existence.
Shahnaz says that to succeed, one must never give up and never
stop trying. "I always feel I have another mountain to climb and
another frontier to cross. I never rest on my laurels." She puts in
18 hours of work and diverts all her energies into her company.
Her business acumen and untiring efforts combinedwith excellent
products she creates have made the Shahnaz Husain Group the

12. undisputed leader in the market for Beauty Products and Natural
Remedies.