Cavin Kare - History & Future

Topics: Cosmetics, Marketing, Tamil Nadu Pages: 9 (3140 words) Published: December 12, 2010

Principles & Practises of Management

Submitted to: Prof. Mala Sane

Submitted by:
Name: Shubhranshu Mishra
Sec: E
Roll No.: 31
PRN: 10020441264

GRADE ASSIGNED: ________________________


It is the story of David taking on Goliath. A small company having its base in Cuddalore in Tamil Nadu, is now taking on the multinationals of the FMCG world. The Levers of the world now have competition breathing down their necks, from an all too Desi company, CavinKare. Pioneers in the field of sachet revolution, and mass marketing in rural areas, CavinKare has grown from a Rs 15,000 venture to a company making a turnover of Rs 700 crores . Year of Establishment : 1983

Chairman and Managing Director of CavinKare : Mr. C K Ranganathan History of Mr. C K Ranganathan :
Ranganathan's journey, which started from a small town of Cuddalore in Tamil Nadu, has been an amazing one. A business which he started with only with Rs 15,000 is now worth Rs 500 crore (Rs 5 billion). He learnt the first entrepreneurial lessons from his father, Mr. Chinni Krishnan, who started a small-scale pharmaceutical packaging unit, before moving on to manufacture pharmaceutical products and cosmetics. His father was his inspiration. His father, Mr. Chinni Krishnan, an agriculturist, was also into pharmaceutical business. As he was poor in academics, his father wanted him to either do to either do agriculture or start a business.

His siblings were good in studies -- two of them became doctors and another a lawyer. He was the odd one out. While his siblings studied in English medium schools, he was put in a Tamil medium school. He used to suffer from an inferiority complex because of his poor academic record. Studies did not interest him, but rearing pets did. When he was in the fifth standard, he had a lot of pets -- more than 500 pigeons, a lot of fish and a large variety of birds. He used to earn his pocket money out of pet business at that time. Perhaps, the entrepreneurial spirit in him showed its first streak. His father died as he entered college. He had come out with the sachet concept a couple of years prior to his demise. He felt liquid can be packed in sachets as well. When talcum powder was sold only in tin containers, he was the one who sold it in 100 gm, 50 gm and 20 gm packs. When Epsom salt came in 100 gm packets, his father brought out salt sachets of as low as 5 gm. Their marketing strategy is to make, what the coolies want and the rickshawpullers want to use. He wants to make his products affordable to them,' he says. Selling things in sachets is his motto and as he says, 'this is going to be the product of the future.' But his father could not market the concept well. He moved from one innovation to another but never thought of marketing strategies. He was a great innovator, but a poor marketer. Joining the family business after his father's death, his brothers took charge of the family business. In 1982, when he joined them after his studies, they had launched Velvette Shampoo. Within eight to nine months, he left the business because my ideas clashed with theirs. As he was in the manufacturing unit, he did not know anything about marketing or finance. But, his inferiority complex notwithstanding, he was somehow confident of doing business better. He had left his brothers saying that he did not want any stake in the property or business. That was a defining moment for him. He had saved Rs 15,000 from his salary and that was all he had. Yet he was confident of achieving success. He did not feel anything about riding a bicycle after having got used to cars.

For a week, he could not make up my mind as to what business to do. He knew only two things; making shampoo and rearing pets. He didn't want to venture into the shampoo business as it would initiate a fight with his brothers. However, he decided to do the same later as he could only make shampoo. He rented a house-cum-office for...
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