Risk is associated with growth. The greater the risk, the bigger the chance of growth. Taking risk is thus not only a business strategy but can also be a life-changing experience. Take the case of the founders of Galaxy Surfactants that is a leading manufacturer of surfactants and specialty chemicals which are used as intermediate raw materials by marquee brands.
The story of how Galaxy Surfactants came into being goes all the way back to 1979, when G. Ramakrishnan or Geera, wrote a letter addressed to his four friends on Valentine's Day. The letter harked about a vision of growth and prosperity and set out a way to achieve that "definite goal". The letter was so convincing that all five (including Geera) quit their high paying jobs and plunged headlong into the business. And they never had to regret that momentous decision.
Five friends shocked their families and friends by chucking their high paying jobs even before they could zero in on a business plan. This move largely influenced by Alexander the Great was to ensure that they did not have an exit options. Success was their only option and they used that option to the hilt.
Today, the Navi Mumbai-based Galaxy Surfactants has emerged as a leading manufacturer of surfactants and specialty chemicals which are used as intermediate raw materials to produce home and personal care products that touches the lives of billion people. These products, ranging over 70, find applications in oral care, baby care, skin care, hair care, sun care and home care segments.
Galaxy Surfactant caters to local and global giants like Colgate, Henkel, L'Oreal, Reckitt Benckiser, Unilever, P&G, CavinKare, Dabur, Emami, ITC, Marico to name a few. By betting big on innovation the company has acquired the "certified preferred supplier" status from most of its clients locally and globally.
The five promoters of the company-- U Shekar, G Ramakrishnan, Shashikant Shanbhag, Sudhir Patil and the late CR Ramakrishna -- had a laser-like focus on business strategy and saw the company hitting the growth path. This was also made possible with heavy investment in R&D and innovations. This has given Galaxy a competitive edge with over 30 IP registered under its name.
And all these are reflected in its financials. Between FY 2009 and FY 2016, its sales turnover has grown three times from Rs 594 crore to Rs 1807 crore. While its profit during the same period has jumped almost 4 times from Rs 27 crore to Rs 101 crore. It philosophy of being not just a supplier but co-creator for formulating innovative products for its customers is the cornerstone of its success. The future looks even more exciting.
In the latest episode of Luxury of Poverty AB Ravi, Editor - Special Projects, CNBC-TV18 speaks to Dr A Velumani, Chairman of Thyrocare Technologies discusses the amazing story of Galaxy Surfactants and how its success of its founders. Watch out for the show on 6.30 pm only on CNBC-TV18 on June 18.