Small Steady Steps to Success- Story of a Pioneer in Small Scale Industry

On a May Day (International workers' day), I met Mr N. Bhaskaran, CEO and MD Aquatech Tanks, headquartered  in Kerala. His success story is intriguing. He started a small-scale unit in his native Kodanad, a nondescript village, in the outskirts of Perumbavoor town at a time when Kerala was known as an "Unfriendly location" for industrial investment. 

Mr Bhaskaran started his first venture four decades ago, a PVC pipe unit under the brand name "Shakthiman", employing just 10 employees. Today his group of establishments are located across three states, Perumbavoor in Kerala, Coimbatore in Tamil Nadu and Vijayawada in Andhra Pradesh.  The group employs 445 employees and has an annual Turnover of 100 crores. The initiative pioneered by Mr Bhaskaran has seen the development of the region into a hub for small-scale  plastic units. Kodanad today boasts of being home to 75 Small scale units.

Mr Bhaskaran's company has bagged a number of awards including the prestigious citation for technology innovation in polymeric products “ - National award 2014-15.  The company has also secured the highest level, credit worthiness under the  CRISIL SME rating (SME1).  Today, in his late seventies, he looks back at his journey with a sense of satisfaction. It was a privilege and pleasure for me Rajeev Moothedath (RM) to interview Mr N. Bhaskaran (NB) to learn more about his extraordinary journey and success.

 RM:  Warm Greetings to you Mr Bhaskaran It gives me great pleasure to do this interview. Could you tell us how it all began? What prompted a qualified engineer to start a factory unit instead of seeking a job as was the norm those days?

NB: To be frank with you Rajeev, my career did not blossom by design or through meticulous planning. I am a product of the circumstances that existed in the late sixties and seventies in our country.  When I passed out in 1968, the opportunities available to an Engineering Graduate was very limited. As an Electrical Graduate, one avenue was joining KSEB (Kerala state electricity board). However, they had only around 20 to 25 vacancies, which were taken by the top ranking students.

Another alternative was to proceed to Bombay or Delhi for a job.  I was not interested in this option, as I did not wish to leave my home town. We owned agricultural land and my father was also running a rice/ flour Mill and Sugar Cane crushing unit apart from engaging in farming. After passing out from college, I took over the farm and introduced scientific farming in the form of power tiller, electric and diesel pump sets in the farm. As a result, we could raise two crops of paddy and the production increased in our farm.

Around this period, Union Bank of India, the leading bank in the area opened a branch in our village.  We availed financial loans from them and expanded our farm.  I had very good relationship with the bank officials and permitted them to conduct training programs for their officers at our farm. 

Frequent interaction with the bank officials created in me the confidence to set up a unit with the Bank’s help. There was a large requirement of good quality pipes for agriculture purposes. Yet, quality pipes were not available in the market. I happened to read an article in the Hindu newspaper about the huge prospects expected for the PVC industry in India and that a PVC resin unit was coming up shortly in the nearby state of Tamil Nadu. 

 I immediately contacted the PVC manufacturers, collected information, and other technical details from them with the intention of starting a unit in our village, 

Accordingly, a PVC Pipe Unit was set up with minimum investment utilising our own existing infrastructure.  However, we made it a point to procure the best machinery and equipment available in India at that time. 

RM: So can we say that it was comparatively ‘easy going’ for you? 

NB:  In real terms, nothing comes ‘easy.’ After my graduation, it had taken six years to set up an industry in my village. With each step, I was learning and gaining in confidence. With God’s grace, our product brand ‘Shakthiman Super’ became popular in the   market very soon and marketing was not a problem. Gradually, we expanded the capacity and increased the production and the variety of products.   Presently, our company is making bathroom items like flushing cisterns, seat cover, water tanks, septic tanks etc. Subsequently, we started supplying Defence products as well. We are an approved supplier for supply of Drop boxes and packing materials to the Indian Armed Forces.

 RM:  Were there any apprehensions in your mind about likely challenges at the time of starting out?  How did you deal with it? 

NB: It is true that I was taking a big step in my life, venturing into an entirely new territory. Therefore, now and then a thought would come “whether I am taking the right decision” but as I told you, my interactions with the bank officials and the correspondence with the PVC manufacturers gave me a kind of inner confidence that this project would succeed. 

 Coming to the challenges, getting an electric connection was a big deal and next to impossible in those days. Further starting a factory meant obtaining several other permissions such as Local Body License, Fire & Safety, Health Clearance, etc. The matter had to be handled with a lot of tact and initiative. Firstly, I arranged to get power supply for the premises and quietly managed to shift the power connection to my name.

 Now that I had a building with power supply, I approached the authorities with the proposal to start the unit and subsequently the authorities concerned for the Licence/Permits.  It was early days of industrialisation and I managed to get the unit working, 

 RM:  How did the interest in SSIs develop in a small village like Kodanad?

NB:  After I had taken the plunge and tasted success, my dealers, relatives and friends came forward to collaborate with me and pump in investments. This resulted in a steady growth over the years.

    

 RM:  Tell us about the circumstances that prompted you to venture out to make investments outside the state of Kerala?

NB: One problem that we faced at that time in Kerala was the militancy of labour. They tended to use muscle power and pressure tactics even when they were  paid fair wages and fringe benefits. I have always believed that it is futile to fight with them, It is better instead to circumvent the problem in some other way without confrontation. Fortunately, around that time the Tamil Nadu Government was encouraging and supporting growth of industries. It was the right time and Coimbatore an ideal place to to commence our new unit. The authorities there had made available one acre land for running the factory. 

At this time we were also fortunate to get orders for the supply of materials to defence. They had given us the design to develop the product. Once done,  there was no looking back as it was like a monopoly for those products. Another plus point in dealing with the defence is that any disruption caused to  supply to the defence can be reported to the police. They take prompt action as it is a defence establishment requirement that is being affected. Starting the Coimbatore unit was a turning point in our operations.   

RM: What is your secret of not only holding on but also thriving for so many years in a state that is held 'unfriendly to business'?

NB: As I mentioned earlier, I did not believe in a policy of confrontation with the labour. Persuading them in a logical and friendly manner was the method that I adopted through out. Besides,  it was sensible to continue operations in Kerala as the state had a good demand for our products and the people also had the buying power since money from Gulf was flowing to Kerala.           

RM:  Do you believe that Kerala continues to be an unfriendly state for investment?   Why do you think so?

NB: I do not think so. A lot has changed in the thinking and approach of the state Government and union leaders as well .They do not interfere much these days in day to day operations. Some annual donation to their union funds and they are happy.                  

 RM: Looking back, what do you see as your most significant achievement in a journey spanning four decades?

NB:   As I look back, it gives me great satisfaction that we were able to establish the brand ' Aquatech' as a quality product across south India. I was able to set up factories in three states including in Vijayawada Andhra Pradesh where the state Government had extended subsidy for setting up the unit.   

 RM:  Could you tell us a little about your family and their support if any that contributed to your success as an entrepreneur? 

NB: My family consists of my wife Suma and three daughters who have been rock solid in their support through out my journey . Of course, the girls are now married and I am now a doting grandfather. 

My elder brother, N. Achyuthan, a doctor in the armed services gave me the initial capital of Rs10,000/ when I started out. He was a person who believed that not only should he grow but all those close to him should also come up in life and therefore he helped people in which ever way possible. His death at a young age of 42 was a big blow to me personally and all family members & friends in general. 

Another person who impacted my life in a big way was my second cousin T.N. Sankaran who was a lot older and someone I looked up to for inspiration and guidance. He was very strong in mathematics and almost all of us relatives in the village learnt and honed our knowledge with his help. He also taught us science and his sister Sumathi, English. Sankaran chettan (big brother) could solve complicated geometrical problems easily. Learning from him, we could shine and get noticed in class. In matters of education, he was truly my mentor.     

RM:  What guidance would you like to give a young person today who would like to start out as an entrepreneur? 

NB: A lot has changed since the times when I was a young man starting out. At that time my main source of information was reading. I read the 'Hindu' newspaper regularly, known for its reputation of authentic news. Every Wednesday there was a feature called "Engineering & Industry" which I read with a lot of interest. In fact, it was from the article in the 'Hindu' that I first became aware of the huge prospects for the PVC industry in India. I would therefore say that reading and keeping yourself abreast of the latest developments is very important. Of Couse, today you have the internet and many other sources like podcasts & videos to gather information.

Another important thing is to take initiative. When you are convinced, have the gut feeling that an idea is good, go ahead and act without hesitating! Nothing much can be achieved if we do not act.         

 RM:  What are your plans for the future and how do you see your role and contribution to the eco system of Kodanad?

NB: At this stage in my life and career, no such plans come to my mind. I feel that I have done my bit by inspiring many in my village to take the plunge and become entrepreneurs.

RM:  So true. Thank you so much for this very informative and engaging interaction!

NB: It was my pleasure Rajeev. I enjoyed it very much.