From Rangwalas to Berger Paints
By
Sonu Bhasin
From Rangwalas to Berger Paints
From Rangwalas to Berger Paints
During the dinner, a couple of Russians approached Kuldip and expressed their willingness to give orders directly to UK Paints. Kuldip felt very embarrassed and politely informed them that he would only deal through Mr. Jain. After that dinner, there were several other occasions when the Russians would approach Kuldip and urge him to take orders directly. Each time, Kuldip gave the same response, stating that he would only deal through Mr. Jain. He kept the Jains informed of all such advances made to him. The orders continued to come sporadically, and the export business of UK Paints kept moving forward.
“One day, I received a call from the Trade Office of the Soviet Embassy,” says Kuldip. The Russian officers informed Kuldip that they wanted to meet him without Mr. Jain. “I was in a dilemma whether to go or not, but then I told myself that it was the Soviet Government officials who wanted to meet me – not the buyers,” reasoned Kuldip.
At the meeting with the Soviet Trade Office, the Russians informed Kuldip that they had numerous unresolved issues with Jyoti Impex and had decided to discontinue their business with Mr. Jain. As Kuldip’s heart sank at the thought of losing the business, the Soviet officers offered to deal directly with UK Paints.
“I was confused,” says Kuldip. He desired the export business with Russia, but accepting the offer meant going behind Mr. Jain’s back. “I wasn’t comfortable doing this and asked for some time to think,” says Kuldip. In their trademark style, the Russians gave Kuldip until noon the next day to make a decision.
Kuldip rushed back to his office, called his brother, and informed him about the meeting. Both brothers agreed that since they had no exclusivity clause in their dealings with Jyoti Impex, they could take orders directly from the Russians. However, they wanted to keep Mr. Jain informed and compensate him for any potential loss of business. Kuldip went to Mr. Jain’s office carrying a satchel filled with money. He sat in front of Mr. Jain and hesitantly shared the details of the meeting at the Soviet Trade Office and the offer. “Mr. Jain got up and shouted, ‘Tu bilkul bewakoof hai, Kuldip!'” (You are a complete idiot, Kuldip), says Kuldip, who was taken aback. However, before he could make a quick exit, Mr. Jain told him that UK Paints was the only supplier still dealing through Jyoti Impex. All other suppliers connected to Mr. Jain had left and were now dealing directly with the Russians. Mr. Jain advised Kuldip not to be an idiot and to go to the Soviet Trade Office to accept the offer immediately. Relieved, Kuldip then offered the satchel to Mr. Jain. “This time he was very angry,” recalls Kuldip, adding, “he got up and started abusing me in chaste Hindi. He said, ‘Dafa ho ja tu yahan se’ (Get out of here).” Mr. Jain was upset that Kuldip believed their relationship was solely about money. He refused to accept the money, but Kuldip discreetly left the satchel in a corner and made a hasty exit.
The next day, Kuldip returned to the Trade Office, accepted the offer, and life once again changed for the Dhingra family.
“Orders started pouring in,” says Kuldip with a satisfied wonder. The domestic business was also growing, but the export market proved to be far more lucrative. The Dhingra brothers relied on their grandfather’s trusted business model and brought in professionals to manage their domestic business. They appointed capable managers who ran the Rajdoot Paints business for the Dhingras.
Kuldip served as the face of the export business, dealing with a company called Sojuzchimexport. This organization held a monopoly in the Soviet Union for all imports and exports in the chemical industry. India’s exports to Sojuzchimexport included paints, pigments, soaps, shampoos, dyes, and textile dyes, among other items. Sojuzchimexport would then distribute these materials to factories and organizations within the Soviet Union that required them. It was a massive organization with an insatiable appetite for chemicals and chemical products. Kuldip worked diligently to meet all scheduled delivery dates and quality commitments, setting himself apart from others who failed to do so. Eventually, UK Paints secured a contract to supply 70% of the total paint orders from Sojuzchimexport. “I wasn’t able to secure a commitment for 100% of the orders,” Kuldip sighs regretfully. However, as deliveries continued to be sent out on time with maintained quality, UK Paints became the sole paint supplier to Russia. What started with 50 tonnes in 1978 had grown to over 20,000 tonnes per year.
As is often the case in corporate life, a trusted supplier becomes the supplier of choice for anything and everything. The same happened with Kuldip. “I was seen as someone they could trust,” Kuldip says. This trust began to develop even when all orders were funneled through Jyoti Impex. “The Russians were impressed that I kept saying no to direct orders,” Kuldip explains. He also mentions that in the initial days, there were always two people in the meetings. One of them had clear knowledge about paints, while the other remained silent and observed. “I can’t say for certain, but I believe he was part of the larger Soviet team, and I’m sure they maintained a file on all suppliers,” Kuldip remarks. He adds, “I’m certain that my file was the thickest one.”
The file had helped Kuldip secure the initial orders, and his honest work with timely delivery further enhanced his trustworthiness in the eyes of the Russians.
Once Kuldip gained clearance from the senior officials, the Russians started requesting him to supply other products such as paint products, pigments, chemicals, textile dyes, and colors. Kuldip, being in the paints business, jokingly told them that he didn’t know anything about textile dyes. However, they explained that textile color dyes were also chemicals, and if Kuldip could supply paints and pigments, he could handle textile color dyes and other chemicals as well. Gurbachan, the alchemist, collaborated with his technicians to meet the Russians’ demands. This “you can do this too” list kept expanding and soon included carbolic soaps, detergents, household chemicals, cleaners, shampoos, toothpaste, shaving creams, soaps, and even shoe polish. UK Paints had become the largest supplier to the Soviet Union. However, most of the products other than paints were outsourced by Kuldip.
