India SME Forum (ISF) president Vinod Kumar insisted that ‘money grows on trees’ and he likened it to a person without formal qualifications turning into a business tycoon. He said that many of these persons owned family businesses which they built upon through novel ideals of marketing their products and keeping their workforce motivated to reach goals. “What is needed is figuring out by sceptics how money can be grown on trees,” he observed.
Speaking in a workshop on ‘Business leadership-mentoring India’s business leaders’ jointly organised by ISF and Andhra Chamber of Commerce and Industry Federation (ACCIF) here on Monday, Mr. Kumar cited L&T and Pune-based Parag Milk Foods (PMF) as two diverse examples of how businesses have grown into dominant players through constant innovation from the process of pooling the resources to selling their products to customers.
Started in Bombay in 1938 by Danish engineers Henning Holck-Larsen and Soren Kristian Toubro, L&T diversified into multiple sectors with its products ranging from switchgear to gantry cranes. Its integrated global presence was well known and its model is worthy of emulation by Indian companies looking to harness engineering capabilities available locally.
Similarly, PMF, which owns the popular Gowardhan brand of milk products grew into a dairy sector giant under the stewardship of its founder Devendra Shah who was only a 6th class pass-out. From a humble beginning at Manchar village near Pune, PMF achieved a staggering valuation of about Rs.3,500 crore.
Mr. Kumar said these companies could not have made their mark in the respective fields without the appetite for risk becoming an obsession to create wealth.
