Two UP brothers turned ₹25K into ₹300Cr business idea
Two brothers from a small town in Uttar Pradesh have set up a large business empire.
Success Story: Sanjeev and Rajiv Gupta grew up in Gulavathi, where their father used to run a small grocery store. Seeing his father struggling, the two brothers dreamed of doing something big. He moved to Ghaziabad, where he initially borrowed air coolers on borrowed from wholesalers and sold them by making some profits. In the early days, they used to go door-to-door on a scooter to meet dealers in Faridabad. As the trade increased, he bought a better scooter.
Conflict of two brothers: In 1992, he started making his own coolers by borrowing Rs 25,000 from friends and launched the ‘Samarkool’ brand. He launched the first cooler for Rs 1600.
Sanjay and Rajiv faced many challenges, especially in winning the trust of customers. Large showroom owners hesitated to see Samarkool products. However, his cooler was different due to his affordable price, quality and mouth -spoken propaganda. Gradually, people began to believe their products and the business increased rapidly. In the first 10 years, his company increased at a rate of 50 times per year, showing their product quality and customer service.
‘Samarkool’ Business Model: In 2005, a fire caused a big loss due to a fire in one of his units. But his good credibility in the market saved him. Dealers and suppliers came forward to help. The distributors paid them in advance and lending by suppliers of raw materials. With this belief and support, he re -erected the business and now make more than 1 lakh products per month.
Their business model is simple: 80% of the products (except LED TV and washing machine) are made in-houses and 90% sales are from offline retail stores. Over the years, Sanjay and Rajiv have increased the range of their products by moving beyond the air cooler. Today, their products include sealing fans, exhaust fans, room heaters, LED TVs, kitchen appliances and other fast-moving consumer electronics.
His company, which is located in Ghaziabad, has four modern factories and about 200 people work. They work in 17 states with 250 distributors and their products are available in about 4,000 stores across the country. Online marketplaces like Amazon and Flipkart now contribute 10% to their business.
