'My struggle will last forever as I believe in innovation'
Founder of one of India's biggest private dairies, Devendra Shah believes that becoming complacent about success is the beginning of stagnation
August 17, 2013 / 12:41 IST
What's the connection between former world cricket champion Ravi Shastri and Devendra Shah, the man behind Gowardhan and Go brands of dairy products? Well, Shah is an entrepreneur with an active imagination, which has always driven him to innovate and push boundaries.
In this candid interview, Shah explains how a world-class cricketer once inspired him to become an entrepreneur. But before that, a little background. Although Shah's family was in the cattle-feed business, the young entrepreneur ventured into greener pastures in 1989.
He built his milk empire on a smart idea -- the two-day-a-week 'milk holiday' of the late '80s during Operation Flood. This was the beginning of Parag Foods. The de-licensing of the dairy sector in 1991 paved the way for private players to purchase milk from farmers and this gave Shah the perfect opportunity to launch his company.Over the years, Shah diversified into products such as ghee, flavoured milk and cheese, and today, Parag Foods is one of India's largest private dairies, boasting a turnover of Rs 1,000 crore. But this businessman says that's no reason to rest on his laurels.You have a very interesting story about how you started Parag Milk Foods. Let's begin with that.Parag Milk Foods Pvt Ltd started in 1992 in Manchar (Pune) when I would buy milk from farmers on the two days the government had declared as 'milk holidays'. On those days, when there were no chilling or storage facilities, these 'milk holidays' would cause huge losses to the farmers. I started buying milk from farmers on those two days. That was the beginning of Parag Milk Foods, which is today a Rs 1,000-crore company that also owns Asia's largest cheese plant.Was it a struggle to get where you are today?I am struggling every day and this struggle will last forever as I believe in constant innovation. The biggest challenge when we started was procuring raw materials. It is a very capital-intensive affair to get things going. You have to keep in mind the development and welfare of the farmers you are working with. The challenge is to maintain a balance between a profitable business and welfare of the farmers you work with.When did you first realise you were on the path to success?
This may sound funny but it's true. I am a big cricket fan and as a young man, when I watched India win the Cricket World Cup in 1985, I too wanted to be a champion like Ravi Shastri and own the Audi that he won. By God's grace, my business took off and I was able to buy an Audi. That's when I knew things were going my way.What do you love most about your job?I love the fact that I can experiment at every level and come up with new, innovative products.Let's go back a little. Where did you study?I studied at Gyan Prabodhini, Samgamner.
Devendra Shah, founder of Parag Milk FoodsTell us about your first job and what you learnt from it.I was always involved in the cattle-feed business. Early on, I learnt that success depends on how you take care of the last employee of your organisation.You have achieved so much, so soon. What motivates you?I want to be the leading dairy company in India.What's your favourite pastime?Swimming.How do you keep abreast of developments in your field?I surf the Internet and read the newspaper.What's your morning ritual?I start my day with a visit to the club for a swim.What are you reading currently?I love to read historical books. I am currently reading Sayaji.Your favourite movie?
Silsila and Kabhi Kabhi.What's playing on your iPod right now?Old Hindi film songs.Are you a foodie? What's your favourite cuisine?I am a true-blue foodie but I love to experiment with ingredients. I like all types of cuisine.What's your signature drink? Tomato and bottle gourd juiceIf you were to write a book, what would it be?
I haven't thought about it yet.If not a businessman?
Since I am Gujarati, I was destined to become a businessman.What do you admire most in people?Trust and honesty.Where do you see yourself 10 years from now?
Parag Milk Foods Pvt Ltd will be an MNC in the next 10 years.What's that one thing we don't know about you?
I am a very good table tennis player. As told to Nivedita Jayaram PawarYou can send your feedback on smementor@moneycontrol.com or simply post comments below Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
