'Teen entrepreneur' builds an empire bottle caps and paper

Sonali Chowdhury

In a country where job security still matters more than anything else, following one’s entrepreneurial dream calls for a huge leap of faith. And when dad means business about getting a ‘regular job with a regular income’, it calls for some quick thinking as well. But Sanjeev Modani was more than equal to the task. After launching his first company at the age of 14, Modani is now owner of Modani Enterprises and four sister concerns that operate in the pharma and processed foods industries. This senior entrepreneur is content to have fulfilled his life’s ambition but still cringes at the thought of what might have been had he not struck a deal with dad! A Teen Entrepreneur Modani dreamt of becoming a businessman while still in school. He had visited his uncle’s factory, Siddartha Tubes in Indore, and the three-month stint he did there further fuelled his inspiration. Alas, his dad was an average, service-class employee who wanted his son to tread the conservative Indian path of safe degrees and service-class jobs. But the lad was destined for bigger things. So he promised his father he would balance his business with a good education. The elder Modani reluctantly agreed and the teenager launched his first company, Modani Enterprises, with a princely sum of Rs 50,000, in 1984 – at the age of 14! The lad also kept his promise and went on to graduate from college and then secured a diploma in marketing. Relieved that his wasn’t a prodigal son, Modani’s father helped him with finances but made sure his son repaid the money on time with interest! Stepping Stone Modani Enterprises began by manufacturing aluminium bottle caps for the pharma industry – it still does – and its first customer was Plethico Pharmaceuticals. “I remember J Patel (owner of Plethico) whenever I see the colour magenta. He wanted a very specific shade to coat bottle caps and would not compromise. It was very difficult to get that shade but after deliberations with the technical team, we finally managed to get it right,” says Modani, smiling fondly at the memory. As he expanded his product portfolio, Modani went on to open three more companies. “In 2001, I began marketing products for Bengal Chemicals and Pharmaceuticals, the first Indian pharma company. My association with them lasted till 2004-5,” he says with pride. Our quintessential businessman has an insatiable hunger to keep expanding and he forayed into the food industry in 2006. “The trigger was the state I operated from – Bengal. Since Bengalis love ‘jhaal muri’ an other light munchies, I began to manufacture PVC and paper trays for processed foods and confectionary,” he reveals, adding that this led to the launch of his fifth company Synchro Packs. “It wasn’t long before I had some really big clients like Britannia, Haldiram and Monginis.” Dealing With Losses Over the years, Modani tempered his keen business sense with a practical and philosophical approach. Only three months ago, he took a hit of Rs 7 lakh on an order from a pharma company. “There was a communication gap between quality control and production. This money is stuck now and I cannot really attribute the loss to anyone. It’s my fault,” he shrugs. “Just as you cannot treat cancer with a bandage, you have to go to the root cause of the loss. Taking responsibility and not repeating your mistake is the key.” Mantra for Business Modani is an old-school entrepreneur, and goodwill and quality service mean as much to him as profits do. That’s why he did not need a business loan for 21 long years! How so?  Well, he used credit from his suppliers as working capital every time he needed to expand. “You should pay your dues before your creditors ask for them and that will resolve your working capital issues,” advises Modani. Thus, he secured his first loan, of Rs 70 lakh, as recently as 2006, during the second phase of expansion of Synchro Pack. Smiles All The Way This seasoned entrepreneur believes in earning the loyalty of his employees, which is why many of them have been with him for more than 25 years. “He tackles every situation with a smile on his face. He has also gone out of his way to help us professionally and personally,” remarks his 60-year-old Chief Operating Manager Deven Sen. As for his other employees, Modani has set up a charitable trust which provides assistance to the children of his employees. Rajesh Ray of Fenoplast, who supplies PVC film to Synchro Pack, says, “He is a man of his word. It is very difficult to get commitment when it comes to payments but Modani never dilly-dallies and goes the extra mile.” Modani says he wouldn’t change a thing if he had to do it all over again. Encouraging youngsters to follow their dreams, he has one final word of advice. “If you want something and cannot get it, it means you never tried.” QUICK FACTS > Sanjeev Modani owns five companies: Modani Enterprises, Synchro Pack Ltd, Synchronise Scientific Glass Works, Salus Pharmaceuticals, Hindole Exportex > Synchro Pack is registered as an MSME and is an ISO-certified, Crisil-rated company that manufactures PVC and paper cake trays used in the confectionery industry > The bulk of the revenue comes from Synchro Pack, which contributes 60 per cent of the total turnover from five companies > Synchro Pack is associated with leading brands like Britannia Industries, Dream Bakes, Bisk Farm and others > Synchro Pack has two manufacturing units, 130 employees and clocked a turnover of Rs 10 crore in 2012-13 You can send your feedback on smementor@moneycontrol.com or simply post comments below