|
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 Xavier’s, Calcutta. Like the scions of most business families, he spent his mornings in college and the latter half of his day at his father’s 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 father’s 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 company’s 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 company’s 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





