Sunday, 25 September 2011

subsidies-at whose cost?

Subsidies in punjab, for rice and wheat which are not responsive to price, are wasteful expenditure and lead to high fiscal deficits , meanwhile low supply of fruits and vegetables leads to inflation, here i quote steven landsburg on a similar topic-
the author is being served at a restaurant with a numbered queue, one person(no.37) got tired of waiting and gave her number to another person(no.45),everyone at the restaurant praised her for not wasting her place in the queue.What these people failed to realise was that one person moving eight places ahead means moving eight people one place back, without changing the only thing that matters-the number of persons being served
the underlying point is that things must addup.Politicians routinely give things away for free making economists wonder where the extra resources are going to come from.Tell that to the politicians in Punjab....!!!

Thursday, 8 September 2011

Ram ki Leela rang laayee shyam ne bansee bajayee-Wah Gujarat!!Gujarati business with a twist!!

This is the story of Nadeem Jafri and Wazir Ali, you must have heard of Nadim Jafri in these blogs earlier if not let me enlighten you , he is the Dilip Kumar Playing Ram in this story, he runs a chain of 11 convenience stores-Hearty Mart-in Juhapura, Ahmedabad and parts of North and Central Gujarat. Shyam is Wazir Ali who is Nadeems partner in Hearty Mart Enterprise. Nadeem faced a problem, he did not have scale to pass on heavy discounts to customers as other retail giants. So Jafri started supplying goods to hoteliers and partnered Wazir Ali, for a bulk business enterprise. Today, their partnership, Hearty Mart Enterprise, boasts private labels for tea, spices, ketchup, etc.

We know Ram’s story well from previous blogs, so let us hear Shyaam’s story.Wazir Ali started a papad factory called Ashish Papad between 2003-05, he had 50 to 60 clients between Ahmedabad and ankleshwar, these clients transferred to his wholesale supply business of mirchi, paapad, dhania, haldi and later jeera, variali, reqt increased, product range increased.In 2007 he started Ashish brand mirchi.He started a joint venture with Muhammad bhai a kiryana store owner in Kanodar.Bhai was aware of suppliers and purchasers.Company was growing but no vision.

This is when vision of Ram-Nadim Jafri started in 2008, Nadim did not have scale and manpower though he wanted to grow into hotel supplies. They started in July 2008 with Good Time-Whole Spices, non processed and lutf sauces and a range of processed masala called Chef ki well as Day break tea. The story of Day Break Tea is interesting as the nearby hotels in highways had huge tea demand this product picked up fast. From 200 hotels they have grown to supplying 500 hotels.

Their vision is to grow into a food company, meanwhile there is another division of Hearty mart called Hearty Mart logistics which provides supply chain connect between hearty mart enterprises and franchise. Logistics also provides distribution for Mr
Puff products. The connect between Nadeem and his franchises is due to bakr ali who looks after Hearty Mart logistics.Thus one part of the business feeds into the other.

From plain traders of spices like MDH, baadshah, everest, they have grown into suppliers. The business has grown and with it, they have. Future Plans includes a factory for their own products like Chef ki pasand which will be built in four to six months. Clearly Hearty Mart is growing from humble beginnings to modest growth to a grand future, from rented godowns and factory to own factory from trading to Production, to Corporate house.

Ram(Nadim) has two roles one as spiritual guide and Entrepreneur Creator and Two as Professional and adviser. But he has feet firmly on Ground. “Dabur etc took years to build up image, right now I am happy to operate within the humble model of providing to the community”

Clearly his vision is like the leela of Dilip Kumar in Ram aur Shyaam, will his vision lead us to say Wah(Taj)!to this story of Gujarati Entrepreneurship-One more feather in the Cap of Developing Gujarat!!