Pushkarvala & Co. Case

PUSHKARVALA & CO. – AN AVANT-GARDE BUSINESS Siddhartha Saxena wrote this case solely to provide material for class discussion. The author do not tend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to maintain confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced by any form or any means without the permission of the copyright holder. ACKNOWLEDGEMENT The case author is thankful to the Writer's Lab, Centre for Learning Future Ahmedabad University, for extending their sincere support and facilitating to make the case coherent and better presentable. Version: 2020-06-28 On 12 April 2019, Satish Rampuria - the Managing Director of Pushkarvala & Co. (PC) deliberated about the growth and expansion of the company while sitting in the warehouse of Devika House. It was the time when the second audit of the ISO1 had begun at their factory in Rakanpur, Ahmedabad. Before a month, the USFDA2 authority had stormed in to verify the standards of the products produced and exported. Though he seemed quite confident regarding the quality and safety measures of the products, the only thought that popped up repeatedly was, how will PC meet the increasing demands of products once they get the EW certification. Should they invest more in mechanization? The subsequent question was regarding the female employees required to handle the produce as they weren’t willing to join the business even if the management offered generous wages. So, should they stay content with their limited per-day production capacity? Then how would PC meet the targets of opening its 8th and 9th branch – one in Gandhinagar and the other in Mumbai this year? Thinking of possible ways for expansion, he stood up from his chair and pressed the elevator’s button to go to the retail store which is situated on the first floor of Devika House. History Devika Rampuria was born in a well-to-do traditional Jain family of Mrs Kamlesh and Mr Satyendra Rampuria in the year 1929. They belonged to the Jain Visha Oswal Community3 which consists of Jain people with origins in the Marwar region of Rajasthan and Tharparkar district in Sindh. Devika was later married in a middle-class family and hence to generate financial support, she had to resort to 1 ISO (International Organization for Standardization) is an independent, non-governmental, international organization that develops standards to ensure the quality, safety, and efficiency of products, services, and systems. 2The Food and Drug Administration (FDA or USFDA) is a federal agency of the United States Department of Health and Human Services which is responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs (medications), vaccines, biopharmaceuticals, blood transfusions, medical devices, electromagnetic radiation emitting devices (ERED), cosmetics, animal foods & feed and veterinary products. 3 The Oswal is a Jain community with origins in the Marwar region of Rajasthan and Tharparkar district in Sindh. Oswals are now subdivided into Marwari, Gujarati, Kutchi and Multani Oswals. laborious work like sewing, handicrafts and a job at the mill. The earnings weren’t sufficient enough to support the medical bills of her husband, so she thought of taking up a part-time job at one of the khakhra4 distribution centres that was run by her Community. Unsatisfied with that job, she thought of starting her own khakhra business by making and selling khakhras on her own. This is how a female entrepreneur generated the idea of having a business from making and selling khakhras in the city of Ahmedabad, India. “This was a risky plan because in the mid-1950s, there was no culture in Ahmedabad city that promoted eating-out habits. In fact, there was a possibility of social boycott. Additionally, khakhras fell under a category of ‘food for the sick’ for all the non-Jains, which implied that this food item was prepared only by the homemaker that too whenever it was required. So, it was a real challenge for my mother to grow and sustain this business.” -Satish Rampuria, the first generation successor of Devika and Managing Director of PC Since the beginning, Devika had an entrepreneurial nature. She took the risk and challenge as she could forecast a bright future of the Khakhra business with the increasing urbanization and industrialization in the country. Soon, in the early 1960s, Ahmedabad started becoming known for its food culture with the increasing number of “Farsan”5 shops in the city. With this, the idea of khakhra business got a boost as Devika started getting orders from the nearby “Pols”6, i.e., from the vicinity in the old city of Ahmedabad. “She used to collect flour from the people of her neighbourhood, toil for hours early in the morning to make khakhras out of that. Later she would go to distribute the khakhras as per the orders received from her community members. In one way, she was lucky because she had the community members as ready customers because khakhras were considered as a staple food for the Jains.” -Satish Rampuria, the Managing Director of PC The khakhra business continued this way for a couple of years till she got introduced to a new variety of khakhra which was twice in weight and better in taste as compared to the earlier ones. These khakhras were known as “Mangaroli Theplas/khakhras”7. As this variety was never introduced in her neighbourhood before, she got the advantage of introducing this variety, and hence the profits grew manifold, that too with lesser efforts than before. Soon, word of mouth spread regarding the taste and expertise of Devika in making these khakhras. Consequently, the demand sometimes went so high that a part of the work had to be outsourced. Nonetheless, Devika was extremely particular about the quality and taste of products she made and hence she would never rely thoughtlessly on outsourced work. She 4 Khakhra is a thin cracker common in the Gujarati and Rajasthani cuisines of western India, especially among Jains. It is made from mat bean, wheat flour and oil. It is served usually during breakfast. Khakhras are individually hand-made and roasted to provide a crunchy and healthy snack that can be enjoyed with a selection of spicy pickles and sweet chutneys or with milk and tea. 5 Farsan is a collective term used for a type of snacks in Gujarati cuisine and Maharashtrian cuisine, from the Indian state of Gujarat and Maharashtra. It includes some fried items which can be stored after drying and the other items are usually fresh or steamed. 6 A pol in India is a housing cluster which comprises many families of a particular group, linked by caste, profession, or religion. Pols are typical of urban centres in Gujarat especially of Old Ahmedabad. 7 Mangaroli khakhras are actually known as Mangaroli Thepla, though it is absolutely different from the popular Gujarati dish called thepla. These are known as Mangaroli khakhras because the taste and the production process is quite similar to that of the regular khakhras. would check the quality and ask about the ingredients used, which were to be in the proportion she had prescribed. “Today, even after five decades, the quality, taste, texture and the standard of the khakhras we make is precisely in accordance to what my mother had set in the early 1960s. This is what we are known for, and that is why we are preferred over the other brands selling the same products.” -Satish Rampuria, Managing Director of PC Evolution and Growth of the business Satish was around 13 years old when the business of Mangaroli khakhra started flourishing. Soon after pursuing his college education, he took an afternoon-job so that he would get time in the morning to help his mother with the khakhra work. In those days khakhra-making wasn’t perceived as a lucrative job and hence he never overtly expressed his involvement in the khakhra business to his friends. “One of the biggest challenges that I have personally faced was when we had to shift from the old city to the new city in Ahmedabad due to the change in the geographical structure of the city. This is when I believed that where there is will, there is a way because God always helps those who work hard.” -Satish Rampuria, Managing Director of PC Satish got married in 1979. Devika’s daughter-in-law, Usha, belonged to an affluent family and it helped them re-establish the business in Mithakhali area in the new city of Ahmedabad. The daughter-in-law engaged herself in positive word-of-mouth among her groups, and people from diverse groups expressed their interests to taste khakhras. Eventually, a new customer base developed which had to be catered to and thus, it required employees to be hired. Gradually, the business kept growing, and therefore, new methods of production and delivery had to be adopted. Till 1965, the production and distribution of khakhras happened only from Devika’s home. But, as the demand increased to a great extent, they decided to start their business from a shop in Mithakhali. Thus, Devika’s role changed from a sole producer and distributor to a customer relationship manager and quality check in-charge while her husband resumed the responsibility of the Store Manager and Cashier. “I remember how we used to wait downstairs to get hot and fresh snacks prepared by Devika in the Mithakhali branch. Today even after 25-30 years, my children, my 3rd generation and I, all eat snacks from PC only.

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