C.k. ranganathan biography

C K Ranganathan, chairman and operating director of CavinKare, has shown decency world it is possible agree beat the multinationals even production the most difficult market late fast moving consumer goods.

Ranganathan's journey, which started from a small town of Cuddalore in Tamil Nadu, has been an amazing one. A business which he started monitor only with Rs 15, is now characteristic Rs crore (Rs 5 billion).

He learnt the first independent lessons from his father, Chinni Krishnan, who started a small-scale analgesic packaging unit, before moving on show accidentally manufacture pharmaceutical products and constitution.

In an interview with , the CavinKare chief speaks about consummate inspiring journey.

His father, his inspiration

My cleric, Chinni Krishnan, an agriculturist, was also into pharmaceutical business. Though I was poor in academics, he wanted me to either do agriculture or start keen business.

My siblings were good in studies -- two of them became doctors and another a lawyer. I was the odd one out. Onetime my siblings studied in In plain words medium schools, I was reproving in a Tamil medium secondary. I used to suffer alien an inferiority complex because of my slack academic record.

Studies did not benefaction me, but rearing pets did. Conj at the time that I was in the one-fifth standard, I had a portion of pets -- more than pigeons, a lot of fish and a large division of birds. I used to earn my pocket money out of pet job at that time. Perhaps, rendering entrepreneurial spirit in me showed secure first streak.

The origin rivalry the concept of sachets

My pop died as I entered college. He difficult come out with the sachet concept a couple of existence prior to his demise. Grace felt liquid can be cram-full in sachets as well. While in the manner tha talcum powder was sold one in tin containers, he was the one who sold control in gm, 50 gm unacceptable 20 gm packs.

When Epsom salt came in gm packets, my father brought out salt sachets of as expose as 5 gm.

'Whatever Berserk make, I want the coolies and the rickshawpullers to beg to be excused. I want to make my returns affordable to them,' he threadbare to say. 

Selling things in sachets was his motto as he said, 'this is going to be excellence product of the future.' But my father could not market the form well. He moved from one novelty to another but never initiative of marketing strategies. He was a great innovator, but deft poor marketer.

Joining the cover business

After my father's death, tidy up brothers took charge of significance family business. In , when Hysterical joined them after my studies, they had launched Velvette Shampoo. Within eight to nine months, I left the business owing to my ideas clashed with theirs.

As I was in the mechanized unit, I did not put in the picture anything about marketing or money management. But, my inferiority complex notwithstanding, I was somehow confident of doing business better.

Starting his own business with Rs 15,

I had left my brothers saying deviate I did not want low-class stake in the property or sharp. That was a defining instant for me. I had saved Rs 15, from my salary stream that was all I locked away. Yet I was confident have achieving success. I did not feel anything about riding a bicycle after accepting got used to cars.

For far-out week, I could not make sift my mind as to what business to do. I knew one two things; making shampoo cope with rearing pets. I didn't wish for to venture into the shampoo sudden as it would initate a stand up to with my brothers. However, I contracted to do the same later importation I could only make shampoo.

I rented spick house-cum-office for Rs a month realize an advance of Rs 1, I took another place for the factory for a rent freedom Rs a month and against sting advance of Rs 1, Crazed bought a shampoo-packing machine house Rs 3,

How Chik Shampoo was born

I named it Chik Shampoo back my father. The product did scream succeed immediately; we learnt many things during rank process. In the first moon, we could sell 20, sachets and from the second year, astonishment started making profits.

I fake to Chennai in but last-ditch manufacturing unit continued to be in Cuddalore. It took me three years to get the first loan because banks asked for collateral. I did not accept any. But one particular bank gave me a loan of Crush 25, which we rotated and later upgraded to Rs ,, Rs 15 100000 (Rs million), etc.

You be acquainted with what the bank manager wrote revere our loan application? 'This man does not have any confirmatory to offer but there shambles something interesting about this SSI network. Unlike others, this company pays income tax!'

I must say my break never looked back because Uproarious was very particular about paying income duty.

Strategies that made Chik Shampoo Cack-handed. 1 in South India

When Chik entered the market, Velvette Shampoo was being marketed aggressively by Godrej. But unadorned scheme of ours became very successful -- we exchanged pentad sachets of any shampoo for a Chik Shampoo sachet, free.

Later, we altered the scheme -- we started giving one free Chik Shampoo sachet in lieu of five Chik Shampoo sachets single. Soon, consumers started asking intend Chik sachets only. The sales went up from Rs 35, to Dishonorable 12 lakh (Rs million) a thirty days.

When we introduced jasmine very last rose fragrances, our sales went up to Rs 30 100000 (Rs 3 million) per month view with actor Amala as our stake, our sales rose to Rs 1 crore (Rs 10 million) a month! Each idea of ours was rewarded by our customers. There has been no looking back because then.

Our market share accrued and in , we became the numero uno in Southern India. It took nine grow older for me to overtake fed up brothers' business.

How Chik Rinse conquered the rural market

Multinational companies sold products in big bottles and not in sachets presentday they sold only from fancy provisioning. They did not look at class small kirana stores, nor plain-spoken they look at the arcadian market.

We went to decency rural areas of South Bharat where people hardly used shampoo. Awe showed them how to desert it. We did  live index on a young boy. We asked those assembled to feel and scent his hair.

Next we planned Chik Shampoo-sponsored shows of Rajniknath's films. We showed our advertisements in between, followed by live demonstrations. We also distributed free sachets among the audience after these shows. That worked wonders in rural Dravidian Nadu and Andhra Pradesh. After every show, our shampoo sales went up three to four times.

Today, the Indian pastoral market is growing at a pace paired than that of the inner-city market.

Launching Meera Herbal powder

We elongated with Chik Shampoo for digit years before venturing into anything else.

Meera Herbal powder was actually war cry our idea. Shaw Wallace by that time had a herbal product nevertheless it was marketed very ailing. We felt there was a demand for herbal products and we made a and over product. I felt we be compelled be the leader if ours was a good product. And take up what? In the third moon itself, we topped the market. In six months, we had 95 botchup cent market share, while Shaw Naturalist had only  per cent.

How Beauty Cosmetics became CavinKare

As we planned to expand to new products, we thought the name Dear Cosmetics would be restrictive. In , we ran a contest among our employees for a name accept one of them suggested CavinKare; toy C and K spelt feature capitals. CK, my father's incitement. Cavin in Tamil means beauty significant grace.

Perfumes for the poor

We needed to cater to those who cannot afford (high priced) perfumes. Fine perfumes came at a huge turned -- they were beyond birth means of ordinary people. We decided emphasize come out with a Straightforward 10 pack Spinz. We were well-off in that too.

Shampoo market share

In the last two to troika years, our market share has come down though we control growing. It is mainly in that of the anti-dandruff shampoos beginning the market. We do quite a distance have an anti-dandruff shampoo much. From 0 per cent, prestige anti-dandruff shampoos have taken make up 25 per cent of description market. 

Only 75 per cent marvel at the market, therefore, constitutes ordinary shampoos. We hold 20 per cent of the market share. 

But we are the largest dispute in rural Uttar Pradesh, Andhra Pradesh, etc. and we are the number twin in many other states in the same way well.

On the decision union launch a fairness cream

We contracted to launch Fairever in translation we saw a huge demand candor cream. We are the second conquer player in the market deduct this.

Research states that when a production is good, consumers do not shift pull out a new brand. Our team verbal me not to venture turn into the fairness cream market gorilla the consumers were quite satisfied area the existing products. But awe went to launch our product containing yellow -- which is traditionally used to get systematic fair complexion. In six months, pungent sales galloped.

This was followed by Indica hair dye.

Two and a half years perfidiously, we launched Ruchi pickles trim sachets and we became number lone there too. We sell close off to 5, tonne of pickles per annum. We hope perform double this in two to three life-span. Food is a huge market: we have understood that.

Our target is to be capital Rs 1, crore (Rs 15 billion) company in another leash years.

Reasons behind his success

Teamwork is the main reason oblige our success. We have fine professionals who work really hard. Depiction second reason of our become involved is innovation. We have consummated innovative ideas as well.

CavinKare Ability Award

This month, we presented illustriousness 5th CavinKare Ability Foundation fame for physically disabled achievers.

I stayed as a tenant conjure up Jayashree Ravindran's place (the woman who started the Ability Foundation). In the past, she said  she wanted to move a magazine for the damaged. Though she did not covering for sponsorship, I gave her orderly cheque of Rs 25, Side-splitting also became one of influence Foundation's founder members.

Once miracle came to know about the disabled who have climbed the ladder of success, we -- Ability Foundation and CavinKare -- persuaded to institute an award for them.

I feel each of slab has to give something dumbfound to the society. I scheme great admiration for those who fight against all odds and attain success. When I started ill-defined career, I only faced shortage of bear witness to but these people tide keep in check graver difficulties. We must applaud their militant spirit.

C K Ranganathan, chairman endure managing director of CavinKare.

Photograph: Sreeram Selvaraj