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Think LaOpala, and one conjures
up the image of a French company selling a popular brand
of crockery. However, the brand is very much Indian and
the creator is Sushil Jhunjhunwala, the 59-year-old MD of
LaOpala RG Ltd. And there are no tie-ups here; he has done
it on his own.
Hailing from a business background,
Jhunjhunwala was from the beginning clear about his future:
he had to eventually take over the family-run trade. His
father was a glass manufacturer who made bottles and tea
glasses.
Jhunjhunwala studied at Balkrishna
Vittal Nath Vidyalaya and did his commerce from St Xaviers,
Calcutta. Like the scions of most business families, he
spent his mornings in college and the latter half of his
day at his fathers factory. Says Jhunjhunwala: There
was so much to learn. From manufacturing, purchasing and
logistics to finance and accounting, I learnt it all. In
1967, at the age of 19, I took charge of my fathers
firm.
It was no cakewalk. Jhunjhunwala
had inherited a sick company. The company was facing
the usual problems of trade unions, low productivity and
low profitability, he says. He introduced some far-reaching
changes. For starters, he convinced the trade unions to
work with the management instead of against the management.
He then introduced incentives like productivity bonus. He
discontinued manufacturing loss-making products and increased
the price of the existing lines by 50 per cent. The result:
the company started making profits from 1971.
In the mid-80s, the parent company
was divided between Jhunjhunwala and his brothers. Jhunjhunwala
was clear that he wanted to remain in the glass industry.
But he wanted to add value to his existing products.
During my foreign visits,
I had chanced upon opal glass and decided this was what
I would manufacture in India, he says. Opal glass
required new technology. Jhunjhunwala invested significantly
in acquiring equipment from South Korea. He started commercial
production of opal glass in 1988.
Jhunjhunwala named his new offering
LaOpala. According to him, not only did the name sound exotic
but it was also appropriate for a product that was different
from the available glassware.
Despite doing his homework, Jhunjhunwala
did not succeed immediately. We faced a lot of manufacturing
problems at the outset. It was a nightmare getting the products
ready on time. We suffered a heavy loss.
But he was not a man to be defeated.
He tweaked the new machines to make them more suitable for
Indian conditions. Within six months, everything was in
order and they started making profits.
If manufacturing was a problem,
it was thankfully much easier in the marketplace. We
were the first to offer glassware that was hygienic and
colourful and usable in microwave ovens, he says.
Jhunjhunwala terms this phase
as a major turning point in his career. He could have continued
selling opal glassware for the rest of his life. But in
1996, the company decided to start manufacturing crystal
glass. Jhunjhunwala is proud that 70 per cent of his companys
crystal products are exported against 20 per cent of opal
glass.
Today, LaOpala is not alone; his
competitors include both Indian and foreign companies. What
is his take on the competition? Initially, we were
worried, says Jhunjhunwala. But it has improved
our efficiency standards across all processes, he
adds. He says his company has focussed on giving better
products and designs. He believes that Indians are no longer
afraid of the Chinese and in a matter of three years, the
tables are going to be turned.
His advice to young entrepreneurs?
Hard work always pays.A member of various glass
associations in India and abroad, Jhunjhunwala likes to
play golf and read when he is not working.
He has dreams for his company,
which is already a listed entity. I am looking forward
to being a Rs 200 crore company in the next three years.
LaOpala, says the companys advertising, adds style
to your lifestyle. With exports to more than 30 countries,
Jhunjhunwala is certainly doing that in style.
Based on a conversation
with Aparna Harish in Calcutta |