ranga on first generation Entrepreneurs

Challenges faced by a First Generation Entrepreneur

C K Ranganathan,(Ranga) Chairman and Managing Director, CavinKare

Ranganathan set up Cavin Kare in 1983. Under his leadership, Cavin Kare has grown from being a marketer of a single product – shampoo - to one offering consumers a range of hair care, skin care, and personal care products as well as packaging solutions, with a sales turnover of about Rs 3.50 billion. Smart marketing and clear product positioning have been the firm’s sources of strength, and these attributes have been instrumental in driving its growth. . The firm currently markets over 15 products in the hair care, skin care, and personal care segments.

Ranga said that the first generation entrepreneur requires belief, passion, the will to succeed and the hunger to grow. He began with a description of his struggles during the early days of Cavin Kare, which started operations as a manufacturer and marketer of shampoos. He was particularly handicapped as he had chosen to part ways with an established family business, had little experience in the manufacture of shampoos, limited amount of money, and only a moderate education. His strong will to succeed, however, helped him overcome these handicaps.

Ranga realised early that the firm could differentiate its products from those of its competitors only if it challenged existing norms and established new rules of the game, thereby creating a competitive advantage for itself. He identified product design and development, and marketing as keys to success in the FMCG business and therefore decided to outsource manufacturing, a strategy that continues till date. To ensure quality supplies, a strict quality assurance programme was instituted. Suppliers are rewarded by being paid ahead of due dates.

An interesting aspect of its product offerings is that its products span both ends of the price spectrum, ranging from the very low priced 50 paisa shampoo sachet to products priced higher than erstwhile market leaders. CavinKare has now integrated backwards, setting up associate firms that manage its advertising, media buying, product packaging, and R&D activities. It has also commenced marketing of pickles in sachets.

Summing up, he said that his success was driven by his belief that he was the master of his own fate. He exhorted students to seek out opportunities to create wealth and go ahead fearlessly. He called stretching beyond existing resources the hallmark of an entrepreneur and hoped that the efforts of the EVC Club and the WCED will help foster a spirit of entrepreneurship among students.