'Success lies in the ability to reinvent one's venture'

Sonali Chowdhury

Hitesh Doshi was barely 16 years old when he came to the City of Dreams to get an education. But once the lad so much as set foot in Mumbai, all he could think of was running his own business. Although hungry to get started, Doshi first completed his graduation and finally took the plunge in 1989. From being a wide-eyed youngster from Rajkot to becoming chairperson of the Waaree Group has been a long and eventful journey, and one the 46-year-old Doshi cherishes more than anything else. For 18 years, the Waaree Group traded and manufactured instrumentation products while also entering into joint ventures with companies overseas. The group also operates a retail business in industrial products and process control instruments. But the flagship company is Waaree Energies, a solar energy company that is banking on the future to bring in the big bucks. "My family ran a medical shop in Rajkot and doing business comes naturally to me," smiles Doshi, who has reinvented his vision at every twist and turn and has never let an opportunity slip away. Starting With Merely Rs 5,000 As a 20-year-old, Doshi had no savings so he borrowed a princely sum of Rs 5,000 from a friend at the rate of 2 per cent per month. Then only trading in hardware products used for industrial purposes, Doshi made his first sale, which was a Vbelt for Rs 300. When he realised there was a market for instrumentation products, Doshi registered his venture and called it Waaree Instruments Ltd -- named after a temple in Maharashtra -- in 1989. "My top selling products were pressure gauges and I slowly ventured into all sorts of temperature and pressure measuring instruments used for industrial application," he recalls. Manufacturing Was Inevitable Waaree made its first profit in its third year of operation. "There were too many delays in supply and it was very tough to do business. So, in 1996, seven years after I started my company, I borrowed Rs 20,000 and bought two machines to start manufacturing temperature gauges," reveals Doshi, who adds that he also rented land for a manufacturing unit. That's when Waaree really took off and subsequently diversified into segments such as petro-station equipment, solar energy and industrial valves. Reinventing The Wheel Doshi was determined to be the best in the trade and won several awards for his instrumentation business. Why, he was also exporting to more than 60 countries. Now it was time to achieve bigger goals. "The market is very niche and further growth was not possible. The instrumentation business had reached saturation point and it was time to make an exit as I wanted to get into an industry that delivered bigger numbers. It was a tough decision, somewhat like getting your daughter married to someone else," laughs Doshi. Saw Scope In Solar Energy Enter Waaree Energies in 2007. Since solar energy is a capital-intensive industry, Doshi sold his instrumentation business to Swiss company Baumer in 2010. "Solar power uses low-cost resources and is environmentally safe. It is a big market worldwide and there is a lot of scope," reasons Doshi, who began manufacturing a range of off-grid as well as on-grid photovoltaic modules. That's when he experienced his first setback. "I lost Rs 7 crore in just three years due to the volatility in the market and in prices. I even began to rethink my decision to stay with this sector. Moreover, banks are not optimistic about acquisitions and expansions in this industry and I was on the horns of a dilemma," he confesses.                                   Hitesh Doshi, Chairperson, Waaree Group But Doshi persisted. "There are three things people can't do without -- energy, food and water. We don't have enough resources to meet the demand for energy at present and the requirement is constantly growing," he says. "One should not lose focus while diversifying and it is important for an entrepreneur to be able to visualise one's business for the future." Doshi's hunch paid off and the turning point came when Waaree Energies started offering solutions to the solar industry and made its first profit after three years -- Rs 42 lakh (Rs 20 crore in 2011-12). Now the company has two plants in Gujarat, and sells to companies in the US and Europe. Apart from its in-house R&D laboratory, it has brought in technical expertise from international companies through joint ventures. Key Learnings After 25 years in the game, this seasoned businessman has some valuable advice for starry-eyed entrepreneurs. "Being a commerce graduate, I am not technically qualified in either the solar or valves business. But I was open to learning and got into it in-depth. It is not difficult to understand a sector if you are determined and willing to spend time on it."  But that's only the first step. Being innovative and aggressive is equally important. "We have developed products such as solar power generators, solar water pumps, solar street lighting systems and have changed the way modules are manufactured in India. We have also installed the first automation solar plant in Asia and are coming up with solutions for steam generation and purification of sea water and industrial waste," reveals Doshi. A final word of advice. "If you want your company to grow, it is crucial to hire the right talent and create a strong team," he advises. Adds the group's Director, Finance, Hitesh Mehta, who has been with Waaree for 18 years, "Doshi is a visionary and fast executor." Doshi says, "Everyone may not believe in your dreams but you should have conviction in your ideas." You can send your feedback on smementor@moneycontrol.com or simply post comments below