From Rangwalas to Berger Paints

By
Sonu Bhasin

From Rangwalas to Berger Paints

“Sohan Bhapa ji received a letter from Kuldip Bhapa ji, in which Kuldip Bhapa ji expressed a desire to stay in Holland a bit longer,” recalls Gurbachan as he gazes at his farmhouse’s lawn where his grandson plays on the swings. Kuldip was working in Holland and enjoying the freedom of being away from home as a young man. However, the strong family values instilled in him prevented him from staying without the required permission from his elder brother, Sohan Singh.

Kuldip wrote the letter and waited for a reply, but two months passed without any response. Interpreting the silence as a ‘no’ from his brother, Kuldip decided to return home.

“Actually, Sohan Bhapa ji didn’t receive the letter for over a month due to some reason,” chuckles Gurbachan. “And he did write back to Kuldip Bhapa ji, granting him permission to stay there. However, Kuldip Bhapa ji never received that letter,” explains Gurbachan. It was as if fate was calling Kuldip back to Amritsar.

“Once I reached Amritsar, I joined the business, and there was no looking back for me,” Kuldip states firmly.

Kuldip joined his brother and started working in the shops. Since the Working Partners had been running and managing the old 1898 shop, Kuldip took charge of the newer shop. “And business at this shop started growing significantly. I enjoyed my work,” says Kuldip, delightedly recalling those early years.

While Kuldip loved his hands-on sales training in the shop, Sohan Singh made sure he also spent time at the factory. After two years, Sohan Singh believed that his younger brother was ready to expand the business independently. “I was sent to Delhi to start the distribution business from scratch,” says Kuldip. He arrived in Delhi and operated from the family home. “I had the garage and the backyard to store the paints,” chuckles Kuldip. Working from home also saved money on rent.

“We were financially weak compared to our uncles at that time,” Kuldip simply states. Gurbachan agrees and adds, “There were times when we didn’t even have enough money to pay my college fees. Sohan Bhapa ji used to ask me to wait a day so that he could withdraw money from the shop’s sales proceeds the next day.”

Kuldip took charge of the Delhi and upcountry market. He met with customers and secured new dealerships for Rajdoot Paints. “I would work from Golf Links, our family home, and I would drive my old battered Fiat car with the stock of paint in the back to make deliveries to customers,” says Kuldip. The hard work and enthusiasm paid off, and the business in Delhi flourished. “Within 3-4 years, I achieved an annual sales of Rs. 10 lakhs mainly in the Delhi territory,” says Kuldip with deep pride. This pride is well-deserved since the two shops in Amritsar, even after many years of operation, were generating just over 9 lakhs in annual turnover, including the factory production.

The three brothers had informally divided the work among themselves. Sohan Singh focused on producing paints in Amritsar, while Kuldip Singh concentrated on sales. Gurbachan, an Economics graduate from Punjab University, managed the Amritsar shop and handled formulations at the factory. With Sohan Singh as his mentor, young Gurbachan quickly learned the intricacies of chemical engineering. With Kuldip as the salesman, the factory struggled to keep up with the demand. Competitors in the market couldn’t comprehend how a newcomer and novice like Kuldip could rapidly grow the business. “He identified the segment for Rajdoot and relentlessly focused on it,” says Sushil Luniya, a 30-year building industry expert. He adds, “they were the organized ones in the unorganized sector.”

From Russia with Love

The brothers were occupied with expanding their business in North India. “Russia or any other country wasn’t even on our minds,” says Kuldip. But fate had other plans.

“In 1977, one day I received a call from a Mr. Galgotia,” recalls Kuldip, “who claimed to be from M/s Jyoti Impex, located in Connaught Place. They were exporters and had received an order from the Soviet Union for white enamel paint.” The Moscow Olympics were scheduled for 1980, and the Russians were preparing the city. “To secure the export order, they requested one dozen 1 kg boxes of white enamel paint as samples,” Kuldip continued. “After examining the formulations, I knew we could meet their specifications,” says Gurbachan. Kuldip agreed to send the paint boxes immediately but requested full payment. The payment arrived, the boxes were sent, the Russians were pleased with the samples, and the first order of 50 tonnes was awarded to UK Paints.

“I realized what a fantastic business this is,” says Kuldip excitedly about the export business. The seventies were the heyday of the Inspector Raj, with matters of taxes, excise, and numerous other controls. Added to that were the credit terms of the dealers. “Here was a business that had no hassles and no credit!” says Kuldip about the export business. In fact, the Indian Government provided incentives to exporters.

The initial order of 50 tonnes led to intermittent orders from the Russians. All orders to UK Paints came through Jyoti Impex, which was owned by Mr. S K Jain and his two junior partners, including Mr. Galgotia. Kuldip speaks fondly of the three partners of Jyoti Impex. The feeling was mutual, and the three partners also grew to like young Kuldip. Mr. Jain would often take him to meet with the Russian buyers. “No one takes a supplier to meet the buyer, as everyone is possessive about their own relationships with the buyers,” says Kuldip. The fact that such meetings regularly took place indicated the comfort that existed between Mr. S K Jain and Kuldip.

“I remember one time when the Russian buyers were coming to Delhi,” says Kuldip. It was also the time when Mr. Jain’s daughter was getting married, and he was preoccupied with family matters. However, the Russian delegation could not be ignored. Therefore, Mr. Jain asked Kuldip to act as the host for the dinner organized for the Russians.



Sonu Bhasin
Author's profile:

Sonu Bhasin is one of the early and senior women professionals in the industry. In her career of over 30 years, she set up and managed large businesses, and diverse teams, across financial and non-financial sectors in India and overseas.

She now focuses on family businesses and is the Founder of FAB – Families And Business. She is a family business historian and is the Editor-in-Chief of Families & Business magazine – India’s only stand - alone magazine that addresses the concerns of family business owners/promoters/entrepreneurs. Sonu has worked extensively with both, the patriarchs and the inheritors of family businesses and has enabled them to focus on building multi-generational businesses.

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Excerpts from The Inheritors by Sonu Bhasin published by Penguin Random House.