Historical Background of Entrepreneurship in India

HISTORICAL
BACKGROUND OF
ENTREPRENEURSHIP
IN INDIA
P.Baba Gnanakumar
School of Management
Kristu Jayanti College
Bengaluru

• Once you start working on
something, don’t be afraid
of failure and don’t
abandon it. People who
work sincerely are the
happiest.
POWER OF INDIAN
ENTREPRENEURS
– Chanakya
2

AGENDA
Creative Confidence:
Unleashing the Creative Potential
Within Us
David M. Kelley and Tom Kelley
Empowering Others
Brain Tracy
Rashmi Bansal's book
'Connect the Dots'
3

STARTED WITH RS 150,
NOW RUNS A CHAIN OF
DOSA RESTAURANTS
WORTH 30 CRORES!
4

• Born in 1973.
• At age 17, Prem Ganapathy left his native place
Nagalapuram in Tuticorin without informing his
parents in the pursuit of making money, after a
person promised him a job in Mumbai.
• After Ganapathy completed his tenth standard, he
did not want to study further.
• He worked for about two years across restaurants in
Mumbai doing all sorts of odd jobs. He soon realised
that there was a good potential in the catering
business
5

• "I was scared but I was willing to
take the risk. We took a local
train to Bandra and I was eagerly
waiting to see where I would
begin my new career. He took me
to a tea shop and vanished. My
worst fears came true. He had
just dumped me there,"
Ganapathy reminisces.
6

• I started to move out of the
hotel, to give tea/coffee to
shopkeepers around that
area. I used to earn Rs 1,000,
three times more than the
other boys as this service was
based on a commission
basis,"
7

• "I used to keep a note of every person's requirement, some
wanted strong tea, some wanted it without sugar. So I
established a good rapport with the outside world. One
person who had a small business saw that I was
enterprising and hard working so he suggested that we
open a food stall on the street on a joint partnership. He
invested the money and told me to do the work and he
promised me half of the profit," he says.
• But declined to do so
8

Self Confidence
• By 1992, Prem had managed to save up
enough to rent his own handcart. He
started selling idlis and dosas on the
street opposite Vashi railway station. “I
borrowed some money from friends
and rented a handcart for Rs 150. It
was really difficult in the initial days.
Many times, the municipality vans used
to come and pick our handcart. But I
was very positive and determined. I
never gave up hope,”
9

• Ganapathy was lucky to have helpful
roommates. They were very friendly
and supportive.
• "Since they studied at NIIT, they
guided me well. They even taught me
a computer course. They also spread
the word around about my dosas. My
business did well," he says.
• "I took a break of two hours every
evening and spent the time surfing at
a cyber cafe
10

• “I took a break of two hours every evening and spent the
time surfing at a cyber cafe. I used to read about various
businesses and learned quite a lot. My brothers also played
a crucial role in making the business a success,” he says.
After witnessing the success of a McDonald’s restaurant
which started beside his cart, Prem soon decided to venture
out and start his own restaurant.
• "I was amazed to see the long queues of people who
wanted to buy a burger. What is so great about the burger, I
used to think. That's when I realised how a restaurant can
make a big impact."
11 1

• In 1997, Prem leased a small
space for Rs 5,000 a month
nearby and named it Prem Sagar
Dosa Plaza. His business grew as
he started experimenting with
dosas. In the first year itself, he
introduced 26 different varieties
of dosas,
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• "In 2003, a new mall
called Centre One
opened in Vashi. The
people from mall
management team who
knew me suggested that
I open an outlet in the
mall."
13

• My father instilled in me a lot of positive
energy. This is what kept me going
strong. I have tried to see an opportunity
in every loss. Even when people teased
him, saying 'your son has ditched you
and gone far away', he always used to
tell them 'I am happy for him as I know
wherever he is, he will do well'.
14

• Dosa Plaza gained popularity, got a lot of media
coverage as well. Ganapathy started offering
franchises to people who wanted to set up the outlet
elsewhere.
• The first franchise outlet opened at Wonder Mall, in
Thane.
• Ganapathy went for a brand-building exercise for
better visibility. "The brand makeover helped. We got
a new logo design as 'approved by Dr. D', and
changed the name to Dosa Plaza. This was a big boost
to the business.
15

• "In 2008, we opened franchisee outlets
in New Zealand. About 50 per cent of
our clients in New Zealand are locals.
In fact, the former Prime Minister of
New Zealand, Helen Clark and other
ministers had dinner from our outlet,"
says Ganapathy. The next outlets will
be in the US and Dubai. Today, Dosa
Plaza has 35 outlets across 10 states in
India with a turnover of over Rs 5 crore
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(Rs 50 million).

• Another interesting instance
was when film star
Rajnikant's wife visited Dosa
Plaza
• Rajnikant also invited him to
attend his daughter's
wedding
17

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CASE II
•Sachin Bansal
•Binny Bansal
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CASE II
FOUNDERS OF FLIPKART
• Flipkart is an e-commerce company founded in 2007 by
Sachin Bansal and Binny Bansal. It is registered in
Singapore and it operates in India, where it is
headquartered in Bangalore, Karnataka. Flipkart has
launched its own product range under the name
“DigiFlip” with products including tablets, USBs, and
laptop bags.
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• Sachin Bansal and Binny Bansal are from
Chandigarh. Although they share the same last
name, they are not related. They both were students
of computer science engineering at Indian Institute
of Technology Delhi. Before the tremendous success
of Flipkart, Sachin Bansal wanted to become a
professional gamer.
• It was launch in 2007 by Sachin Bansal and Binny
Basal; who used to work for Amazon before starting
this project. Bansals went to Indian Institute of
Technology for getting their graduation degrees.
They initially invested their own money into this
business and later raised capital from big guns like;
Accel India, Tiger Global and Naspers Group. 22

Power of Promoting
• We used to stand outside Gangaram Book Stores on
Church Street and hand over Flipkart bookmarks to
the people coming out of the shop. In order to make
sure that our targeting was right, we would give
bookmarks to only those who were coming out 23 with
books in hands; the people who have made
purchases.

Power of Customer
• “ On a rainy day in October 2007, a man
bought a book online. We caught up with
the first Flipkart customer to hear his
story”
• Bengaluru: Delivered their first online
order in October of that year to V V K
Chandra, a customer in Mahabubnagar.
• But even Hyderabad’s best didn’t stock the
one book he craved – John Wood’s
memoir Leaving Microsoft to Change The
World
24

Power of
Communication
• “We looked for the book for
two days across 50 bookstores
in Bangalore and even called
up a few in Delhi and
Mumbai,” remembers Binny.
He dashed off an email to
Chandra.
• “I finally spotted the book at
Sapna Book Store in
Indiranagar,” Binny recalls.
25

• Flipkart announced that it has acquired
fashion and lifestyle e-tailer Myntra, the
Company said it has raised $210 million
led by DST Global, one of the leading
global investment groups focused on the
Internet.
• With this, the total amount of fund raised
by the online marketplace is pegged at
$750 million (Rs 9,000 crore) since its
inception in 2007. The company is already
being valued at $2 billion post the Myntra
acquisition.
26

Power Passion
• Flipkart have acquired several businesses
since its inception. This list includes;
• We Read,
• Mime 360,
• Chakpak.com and
• Let’s Buy.com.
According to Sachin Basal, they have
reinvented the wheel of e-commerce in India.
27

Empowering the Employees
• Ambur Iyyappa .... An apprentice
from Ashok Leyland.. Joined First
flight
• Iyyappa -. First employee of
Flipkart, salary less than 8000 per
month
• “Iyyappa used to manage all of this
manually,” Sachin says. “There was
no computerized system. He used to
create these sheets and email them
to the boys. He had taught them
how to login to an email id and
check the latest status.”
• He has been given share holdership
Flipkart says that Iyyappa owns is valued at millions of dollars
28

Empowering the customers
• NIFT students Praween KR and Sindhuja K
set up Young Trendz to target fashionconscious
20-somethings; their
bootstrapped brand sold 25,000 units on
Flipkart in five days during the 2017 festive
sale.
29

Power of
Managing Money
• Co-Founder of Flipkart Sachin Bansal,
got Entrepreneur of the Year Award
2012-2013 from Economic Times,
leading Indian Economic Daily.
• Flipkart.com was awarded Young Turk
of the Year at CNBC TV 18’s ‘India
Business Leader Awards 2012’ (IBLA).
• Flipkart.com- got Nominated for
IndiaMART Leaders of Tomorrow
Awards 2011
30 1

• According to reports,
Flipkart had declared a
loss of $1.3 Bn
(INR 8,771 Cr) in FY17.
31

Power to Exit
• Conflicting reports say that
while Amazon could buy 60
per cent stake in Flipkart,
32

THE FLIPKART-WALMART
DEAL IS A GAME CHANGER
• Walmart’s jaw-dropping investment in Flipkart is the
summer blockbuster we have all been waiting for—a
marriage between the iconic American brick-and-mortar
company and an Indian e-commerce start-up that has
shaken up the retail and e-commerce scene in India and
beyond.
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Power to Sacrifice
• Given Flipkart's high valuation of $20bn, investors
who exited got a good deal.
• Venture capital firms Accel and Tiger Global
invested more than eight years ago when Flipkart
was valued at just $50m - and they have now exited
with more than 400 times what they invested.
• The SoftBank Vision Fund led by Masayoshi Son
was a big beneficiary of the deal - it had invested
$2.5bn in August 2017 for a 20% stake and it exited
with $4bn.
• Flipkart co-founder Binny Bansal retains his stake.
So do Microsoft, eBay and China's Tencent, who
invested a total of $1.4bn in April 2017.
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Agreed to Differ
• In May, global retail giant Walmart announced it
would buy 77 percent of Flipkart for $16 billion as
it tries to make an entry into India’s growing e-
commerce market.
• Sachin Bansal announced his resignation following
this deal
35

• After Flipkart exit, Sachin
Bansal plans up to $1 billion
VC fund
• Bansal could contribute
around 40 percent of the fund
and could finalise the venture
by the end of the year.
36

•What is your Leadership
Values in Empowering the
Followers?