'At The Bombay Store, we have stuck to our roots'

Given that his father is a legendary stockbroker, it is no surprise that Milan Dalal, chairman of The Bombay Store, turned out to be the astute businessman that he is. 

A man who believes in the power of real estate, Dalal says that it in business it is important to follow your instincts and learn from your mistakes.

In a candid conversation with Shashwat DC and Avinash Iyer, Dalal opens up about The Bombay Store, his mango pulp business and why he loves to invest in real estate.

Q. From selling designer dhotis to diversifying into a number of other items, how has The Bombay Store evolved over the years?

A. When we bought The Bombay Store, we knew we are getting a company with a history. We celebrated 100 years when the company was with us.  As a businessman, when my father decided to buy the store, it was the only chain of stores which had four locations with large real estate at Mumbai (then Bombay), Bangalore, Pune and Hyderabad.

In the late 80s, we bought a single store, the one at Bangalore. As businessmen, our policy was to expand the chain -- four should become five, six, but not reduce. Subsequently in the early 90s, by way of a friendly takeover, we bought the other stores as well. They were not just stores -- it was the real estate, the chain, the idea, the history and the ethos.

We did face initial challenges while sourcing merchandise from manufacturers. We eventually overcame them, but the one thing that has remained constant over the years is that we have stuck to our roots. Besides, we are also promoting artisans whose art is dying and new talent as well.

In 1995, we came up with the elephant motif – a symbol of strength and longevity. After this, we created a sub-brand called The Elephant Company.

Q. How has consumers’ perception of your store changed over the years?

A. We have been working to change public perception that we target only the elite. We are making our products available to youngsters. They have high disposable incomes. Though they are not big buyers yet, but they are getting into that culture. However, 50 per cent of our clientele is still foreigners or NRIs.

Q. To survive in the world of business, how important is it to trust your instincts?

A. Let me tell you an interesting episode. Many years back, going by gut and instinct, we got into the mango pulp business and now we have a turnover of Rs 350 crore. We supply our pulp to Pepsi and Coca-Cola. They do their own formulation in terms of colour, sweetening and consistency. That is how we have evolved.

Q. You place a lot of emphasis on investing in real estate. Tell us something about this.

A. I firmly believe in the value of real estate. If your business fails, real estate will bail you out. It’s a very steady and stable investment.

Q. What is your roadmap for The Bombay Store’s future?

A. For expansion, capital and choice of location is very important. In the last 2 months, we opened 2 new stores – one at Khar on Linking Road and the other at Colaba. These were under a new franchise model wherein the owner has the property, he does up the place and takes care of 50 per cent of my investments. I bring in my people and merchandise.

We have tried the franchise model earlier too but it did not work out as they did not have the same kind of passion for our brand.

Our focus on online is small right now, but there’s tremendous scope for expansion.

Q. What is your success mantra?

A. Be optimistic. Believe in yourself. Every business goes through ups and downs. Let there be integrity in whatever you do. I am also a firm believer in karma.

Q. Finally, how does it feel to be The Bombay Store in a city that is now called Mumbai?

A. It is an amazing feeling to retain the brand of Bombay in present-day Mumbai. It is something we are proud of. We did face some pressure initially to change our name, but all our systems were in place so we eventually did not have to.

Mumbai is a melting point of cultures and emotions and we are glad that The Bombay Store showcases the vibrant culture of this city in all its beautiful forms.