vishal retail
TRANSCRIPT
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TOPIC
Ram Chandra Agarwal On What He Learnt From
Vishal Retails - 10 Big Mistakes.
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HISTORY
He Was Born & Brought Up In Calcutta.
Average Middle Class Family.
Worked As A Manager In A Rolling Shutter Company In
Calcutta (Salary- Rs.300/month).
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STARTING STAGE In 1980s :He Noticed That People Slowly Moving
From Suiting-shirting To Readymade Garments.
50 Sq.Ft. Store At Laal Bazaar Street In Calcutta For ALong Term Lease.
Initial Capital- 5,000-10,000 (Borrowed From Friends &Neighbors ).
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His Vision :- To Make It Big.
He Found People To Work With Him Quite EasilyBecause He Is Willing To Share His
1. Vision
2. Dreams3. Profit With Employees.
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EXPANSION In 1994:- First Big Store In Calcutta.
In 2001:- Company was incorporated under the
Companies Act, 1956 as Vishal Retail Private Limited
In 2006:- Company Converted From Pvt. To Public Ltd
On Feb.20th
Registered Office At New Delhi.
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TOPIC
10 MISTAKES
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He Recruit Too Many People Without Any Background
Check Up & They Did Some Wrong Things In The
Organization.
Example:- There a Was A Big Thief In The Organisation,
He Took Money From Landlord & Finalized WrongLocations & He Makes A Lot Of Money On The Side .
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REMEDYThorough Background Checks & Pre-recruitment
Screening.
Inner Circle Consists Of Loyalist .
Finance Department Given To His Wife (Uma Agarwal).
He Is Waiting For His Son (Akash) To Complete His
MBA To run his business.
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MISTAKE :- 2
HE NEED MANAGEMENT BANDWIDTH
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He Recruit A Large Number Of MBA Students. They
Know Theory But They Dont Know The Practical Part.
Like Planning, Making Entries In Software Etc
It will Effect Quality And Success.
He Says:- There Was No Strong Leadership In Senior &Middle Management.
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REMEDY
He Says:-
In V2 There Will Be A Good Senior Management Team
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MISTAKE:- 3
LACK OF PLANNING
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He Didnt Plan In Time.
Wrong Choice In Store Ambience (From Lighting &Fixtures To Flooring).
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REMEDY
First Thing Is That My 7 Shop Should Make Rs.1,500 Per
Sq.Ft. Per Month Of Sale.
Now It Is Rs.600 Per Sq.Ft. Per Month.
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MISTAKE :- 4
OVER CONFIDENCE
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He Used To Inaugurate 4 Stores A Week
He Open Total 4 Big Garment Factories & He WasConfident About Manufacturing Too..
He says:-Such Growth Is Impossible Without ManagementBandwidth (or) communication.
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REMEDY
Now The Philosophy- One Step At A Time.
7 Store Chain (Franchise) Now Sells Only Apparel..
SKU (Stock Keeping Unit) Are Being Working WithoutAny Hurry.
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MISTAKE :-5
LEARNING TO MANAGE SCALE
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He Doesnt Have The Power To Decide, When The
Company Cross 500 Crores .
He Need:- Professional Heirarchy, Corporate Structuring
& Processes.
Cannot Be A One Man Show
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REMEDY
Either MANSUKH TANDON / JP SHUKLA Will Take
The Charge Of CEO & Will Run The Company & I WillBe The Chairman
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Mistake :-6
DOWNMARKET IMAGE
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Concentrated only on low-level customers.
REMEDY
Concentrated on every class of people.
Flavour of the season with rising incomes & burgeoningdemand.
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Mistake :-7
UNPROFITABLE GROWTH
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His Growth Was Unprofitable.
Earlier Credit Was Cheap & He Was ExpandingRecklessly.
Remedy
Now He Is Going Slowly..
Once My Model Gives Me Rs. 1000-1500 Per Sq.Ft PerMonth Of Sale, I Can Easily Expand 10 Lakh20 LakhSq.Ft. In 2 Years
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Mistake :-8
RELIANCE ON CASH
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Transaction Were All In Cash Deals (Cash Was King).
No credit.
REMEDY
He says:- if the business is good, money will flow
Reliance on cash now slashed by 50% .
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MISTAKE :-9
LACK OF MANAGEMENT SKILL
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Agarwal Lacked The Academic Discipline To Run AVenture As Vishal.
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REMEDY
By Observing Ion Retail He Understand That The
Power Of:- The Right Good At The Right Time At The
Place And Good Fill Rate
He understand:- fill rate product, choice of customer,
pricing, marketing strategy much better.
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MISTAKE :-10
INADEQUATE TECHNOLOGY
BACKUP
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Applying OfSAP, They Suffered A Lot & They Loss a lot
of Datas.
Server Was Very Less & There Is Issues WithImplementation of SAP
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REMEDY
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