Remember
those days when family, friends, and other irritants around you
would get close to orgasmic at the sight of a Toblerone bar or other
such ''imported'' stuff? The vividness of those images would of
course vary depending on how young or old you were then, but these
days it's difficult to catch similar expressions of ecstasy on the
faces of those near ones when such goodies are chucked at them.
Reason? Unlike when the wait for a pack of foreign chocolates was
a bit like waiting for Halley's Comet to show up, today they're
all over the marketplace.
If you're one of those who've found their reason
for existing, thanks to the easy availability of these imported
products, you've got to thank two sets of people. The first group
is the wise men at the World Trade Organisation (WTO), who're responsible
for pushing of lifting quantitative restrictions (QRs) on the import
of 2,714 consumer products. You'd find it a bit easier to thank
the second set of people responsible for bringing home the ''phoren''
goodies: The importers themselves, who in the process of providing
you with the manna from the foreign heavens have become millionaires
themselves. To know more about them, read on:
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Laxman Rai: Moving with the
times |
Rai & Sons
Food
Owner: Laxman Rai, Director
Background: Diesel Engine Importer
Sales*: Rs 10 crore
Brands: Ferrero (chocolates & confectionery),
The Laughing Cow (cheese), Hero (jams/fruit juice/jelly), Ricola
(herbal lozenges) and Movenpick (ice cream)
Distribution: 1,20,000 retail outlets
(for Ferrero tic tac confectionery); 3,000 for all other brands
They've been importers
of Skoda diesel engines for the past 45 years, but clearly it's
food that fuels the Rai family. The late Ranjit Rai, father of Laxman
Rai, was a gourmet food cook and writer, with two Penguin titles,
Curry Curry Curry and Tandoor, under his belt. Way back in 1963,
the company even tried its hand at manufacturing Sun Sip, a canned-fruit
juice brand, but it was an idea ahead of its time. By 1999, though,
the time was ripe, and Rai plumped for Swiss food brand Ricola.
The dismantling of QRs gave Rai just the shot in the arm he needed
to leverage his relationships with European marketers.
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Atul Khanna: Persistence
pays |
Optimum Marketing Metrics
FMCG
Owner: Atul
Khanna, Director
Background: Service Apartment Owner
Sales*: Rs 8 crore
Brands: Clorox (household cleaner),
Crayola (stationery), Hershey's, Mars and Ritter Sport (chocolate),
Master Food (packaged processed food) and Kikkoman (sauce)
Distribution: 20,000 retail outlets
What do you do
when you crave for brands like mars and Hershey's and Ritter Sport
but there's not enough of them going around in the country? Simple,
you start importing them. That's what Atul Khanna, a small-time
service apartment owner, decided two years ago. Of course, there
was the small matter of getting those manufacturers to agree or,
to begin with, even condescend to speak to him. But Khanna persisted-and
got the go-ahead-steadfastly resisting the temptation of shipping
in stuff from free ports such as Singapore and Dubai. It's clearly
paying off: Today the Mars and Hershey's managers come to India
twice a year to meet Khanna!
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Puneet Gupta: First-mover
advantage |
L-Comps & Impex
Foods & FMCG
Owner: Puneet Gupta, Managing Director
Background: A foreign-trade graduate
Sales*: Rs 7 crore
Brands: Berri (fruit juice), Pascual
(yogurt), Betty Crocker (cake mix), Pasta Jarra (pasta), Edgell
(tinned food), Freeman (cosmetics), Remia (salad dressing) and Arcor
(biscuits)
Distribution: 25,000 retail shops for
biscuits; 7,000 for other brands
After pocketing
a foreign trade qualification from the Indian Institute of Foreign
Trade (IIFT) in 1996, Puneet Gupta had two straightforward options:
Either land a plum corporate job or slip into his father's cooking
gas cylinder-making venture. Instead he chose to introduce Berri
fruit juice in pet bottles for the first time in the country in
1997. By 2002, there were as many as 25 competing foreign juice
brands on Indian shelves. But Gupta, wiser by five years, is riding
on the headstart, and the experience: He's flagged off complementary
brands, which give him an edge on the shipments front as well as
when leveraging with the retail trade.
Beauty Concepts
Cosmetics & Toiletries
Owner: Rajiv Bahety
Background: Diversified manufacturing group
Sales*: Rs 4 crore
Brands: YSL, Davidoff, Intimate, Adidas,
Jovan, Esprit, and Diesel
Distribution: 100 top-of-the-line lifestyle
stores across the country
As in the case
of most of the importers profiled here, the removal of quantitative
restrictions was just the opportunity that Bahety was looking for
to find his place in the sun. Bahety flagged off his importing operations
in 1998 by bringing in cosmetics and toiletries brands from Europe,
a market he was not totally unfamiliar with since he would export
software to that continent. Bahety's focus has always been top-of-the-line
products, and select outlets only, and he's refused to spread himself
too thin by getting into other products. Consumers who just can't
wait to lap up his exotic product range wouldn't be complaining
too much about that strategy.
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Ajay Agarwal: Wooing customers |
Indo Cosmesi
Cosmetics & Toiletries
Owner: Ajay Agarwal, President
Background: A former duty-free manager
Sales*: Rs 11 crore
Brands: Julien d'Irvy (deodorant), Vidal
(skin cream and shampoo), Tromphy (baby care), Arrixaca (room fresheners),
Tabac, and Pupa (toiletries)
Distribution: 25,000 retail outlets
For 20 years he
helped build resorts, duty-free shops, in-flight kitchens, even
luxury airport lounges for his Singapore-based employer, the $500-million
NG Chye Mong. Then in 1998, Ajay Agarwal decided to head home and
start up on his own. Trade barriers were slowly but surely coming
down, but Agarwal didn't chase the big brands right away as he felt
the Indian consumer wouldn't be ready for them. Instead, he seeded
the market with middle-of-the-road brands, and offered huge retail
margins in a bid to wean consumers away from domestic toiletries.
That's one good explanation for the Rs 11-crore sales.
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R. Parthasarathy: Like father
like son |
Dhanya Associate
Cosmetics
Owner: R. Parthasarathy
Background: Second-generation importer
Sales*: Rs 4 crore
Brands: Bilgimogle, Berio and Musa (cosmetic
olive oil)
Distribution: Pharma and retail stores
across Tamil Nadu, Kerala and Karnataka
In a way, he is
following in his father's footsteps, whose company (Ravi & Company)
was once the country's biggest importer of branded milk powder,
9 to 3, from Holland. And this during the infamous Quota Raj, when
most quota holders were largely into rent-seeking on their quotas,
rather than any serious trading activity per se. Few took Parthasarathy
seriously when he decided to import a little-known cosmetic aid
in olive oil, and that too from Turkey, when whatever little was
coming in was from either France or Italy. When Unilever and Nestlé
caught on with their own European olive oil brands, Parthasarathy
just added on an Italian (Berio) and Spanish (Musa) brand to his
portfolio. He's taken seriously for now, for sure.
Premsons Trading
Toys, Crockery, Stationery
Owner: Bharat Gala, MD
Background: Third generation retail store owner
Sales*: Rs 13 crore
Brands: Silverline (crockery), Flying
Dragon and TCV (toys)
Distribution: All over metros and smaller
cities such as Chandigarh, Pune, Cochin and Ludhiana
Starting just
two-and-half years ago as a "backward-integration" (in
his own words) to his retail store operation in up-market Breach
Candy in Mumbai, Gala has reaped a quick windfall. He began with
crockery, mainly from Thailand, and quickly moved to toys and stationery,
with fruit juices being the latest addition. That's helped him maintain
a break-neck 30 per cent plus growth rate, on the back of a nationwide
55 distributor-strong network. What has helped tremendously is the
fall in import duties from around 50 per cent when he started to
around 20-25 per cent now. Trust Gala to think different: He is
now planning to launch his own brand, Gulp, a long-life (two years)
fruit juice.
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Ashim Saraf: All pay no work |
Hi Life Exports
Toys
Owner: Ashim Saraf , Managing Director
Background: Scion of a manufacturing group
Sales*: Rs 4 crore
Brands: Intex (inflatable toys), Creative,
Diamont and Egmont (activity games)
Distribution: Bulk sales to five wholesale
distributors
He's an importer
all right, so don't get taken in by his company's name. It's just
that Ashim Saraf was in too much of a hurry to change the company
name (from exports to imports) when he acquired it. He kicked off
by importing Walt Disney toys in 1998, and then went on to buy 20,000
different toys from 20 different manufacturers spread across China,
Turkey, Israel, and Italy. When smuggled imports from Dubai started
eating into his big brand legal imports, he changed his modus operandi
to concentrate on just a few product lines-inflatable and activity
toys for three-year-olds plus-and moved his entire business to selling
in bulk. Business has since trebled.
R.R. Oomerbhoy
Foods
Owner: Riyad R. Oomerbhoy
Background: Edible Oil Business, Fifth Generation Parsee
businessman
Sales*: Rs 30 crore (from just imports)
Brands: Bertolli (olive oil), Barilla
(pasta), Lee Kum Kee (chinese sauces)
Distribution: 100,000 stores, 1100 distributors
In 1991, Riyad
R. Oomerbhoy set up a JV to import and distribute soaps and toiletries.
By 1997, he exited it. That was the end of Cussons India, but the
beginning of Oomerbhoy's import sortie. Unilever's Bartolli was
his first choice. He hasn't looked back since, claiming that his
company will hit sales of Rs 100 crore by 2004. Not all of that
will come from imports. Oomerbhoy has expanded into production of
edible oil with brands like Postiano, RRO, Mastman and Tildil, with
an installed capacity of 300 tonnes a day. He's got 60 brands in
his quiver, 40 of which are imported. And he's still got miles to
go.
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