As a baby, Akuri Srinivas Reddy all the time cherished the dream of turning into an entrepreneur. Youngest of 5 siblings and hailing from a center class farming household of Srinagar village in Dachapally mandal of Guntur district, he got here to Hyderabad in 1997 with Rs 500 in hand, seeking a job. After doing menial job at a casting unit for a 12 months and operating an STD for a number of months, he obtained an opportunity to work as a supervisor for a portray contractor. That is the place he discovered his true calling. “Whereas working there, I sensed a giant enterprise alternative on this house. After working for six months, I established Techno Paints and commenced taking on portray contracts by myself. We clocked a turnover of Rs 10 lakh within the first 12 months. Our Fortune Group, which has 250 staff now, has an order ebook of almost Rs 1,200 crore. I’m all the time obsessed with enterprise and that is what has introduced me to the place I’m at the moment,” Reddy, founding father of Fortune Group that undertakes works and markets merchandise beneath Techno Paints model, tells Bizz Buzz in an unique interplay. Now, his dream is to rework his 25-year-old group right into a prime constructing supplies firm.
How did your entrepreneurial journey start?
I used to be not considering training since childhood. Our brother had small companies. I used to be concerned in his companies once I was simply 10 years outdated. Possibly I developed a ardour for enterprise due to that involvement. Instantly after finishing ITI (Mechanical) at Miryalagudem in Nalgonda district, I got here to Hyderabad in 1997 seeking a job. In these days, there weren’t many job alternatives within the metropolis. I visited many factories within the metropolis, in search of a job. Lastly, I obtained a chance to work in a casting unit, Crown Castings, for a month-to-month wage of Rs 1,250. My responsibility was to hold sandbags from exterior into the manufacturing facility as sand was used for making moulds.
However I used to be not glad with that job as I wished to arrange my very own enterprise. I may hardly work there for a 12 months. Thereafter, I took an STD sales space on lease. However that enterprise didn’t final lengthy due to the arrival of cell phones. Thereafter, I obtained an opportunity to work as a supervisor for a portray contractor who was doing portray work for Aurobindo Pharma. Whereas working there, I sensed a enterprise alternative on this house. I used to intently observe how a lot quantity was being paid to employees and the way a lot portray was being achieved by every painter every day. After gaining expertise for six months, I established Techno Paints in 1998 and began taking on portray contracts. We did a enterprise of Rs 10 lakh within the first 12 months itself. With order circulate rising, we established a paint store a 12 months later. The thought was to obtain paints immediately from firms as a substitute of sellers in order that we may generate extra margins. In 2001, we went on to arrange a small paint manufacturing unit in Hyderabad. That was the time when actual property initiatives began in a giant method within the metropolis.
What was the response to the paints manufactured by you at the moment?
We expanded our seller community and appointed 1,500 sellers throughout undivided Andhra Pradesh to market our merchandise. We had a gross sales and advertising crew of 100 individuals. Although we established our title in executing portray works, we didn’t have a lot expertise in gross sales and advertising of paints. Consequently, we dedicated some errors that value us dearly. Apart from, we stopped taking on portray works and targeted solely on paint merchandise. The end result was that our firm incurred losses between 2004 and 2012. I needed to promote my belongings to clear money owed. It was a foul section. However I once more began from the scratch in 2012. As my energy was in executing portray contracts, I re-started taking on portray works, principally company portray contracts. This time, we fine-tuned our methods by addressing weaknesses. And we by no means regarded again since then.
What number of initiatives did you full thus far?
After the restart, we principally targeted on massive company portray initiatives. It’s a bit simple to execute massive initiatives as we will deploy staff at a single location for an extended interval, thus enhancing productiveness. As I had good relations with many builders in Hyderabad, we may safe a lot of orders. Inside 4 years, our firm was again on a sound monetary monitor. Subsequently, we expanded operations to different main cities like Mumbai, Bengaluru, Chennai, Pune, Lucknow and Kanpur. So, our order circulate has additional elevated. We all the time accomplished initiatives on time with out compromising on high quality. That is our energy. Until date, we executed over 650 portray initiatives throughout India.
Not too long ago, you arrange a paints manufacturing unit once more. How is it doing now?
Sure, we established a paints manufacturing plant at Cheriyal close to Hyderabad in 2019. The present capability of our plant is 1 lakh metric tonnes (MT) each year. We’re planning to double the capability to 2 lakh MT. We’ve got plans for additional growth as nicely. We additionally developed a very good Analysis & Improvement (R&D) crew. With this, we’re capable of develop, manufacture and provide customised paints now. If somebody needs paints with marble end, we will do it with finesse. We provide over 60 styles of textures and finishes. We use solely our paints whereas executing the portray contracts we undertake. We developed a number of designer paints for exterior purposes. However, nowadays, designer finishes are additionally getting used for inside paints. For this, we collaborated with Realto, a 100-year-old Italian firm, which is current in 70 international locations. They make lime-based merchandise with out utilizing any chemical substances. These paints, which value from Rs 150-250 per sqft, are principally used for heritage buildings and for high-end finishes. As buying energy elevated in India now, individuals are utilizing them for villas and different residential items right here. We are going to import these paints and market them. Below this partnership, we’re additionally planning showrooms in all metro cities. The primary one will quickly come up at Hitech Metropolis in Hyderabad. We are going to ultimately have 10 such showrooms, every costing round Rs 50 lakh.
How large is your order ebook now?
At current, we’ve got an order ebook of Rs 1,200 crore, together with ‘Mana Ooru– Mana Badi/Mana Basthi-Mana Badi contract of the Telangana authorities. We’ve got 150 operating initiatives now. Residential initiatives account for 80 per cent of our order ebook. We’ve got over 250 full-time staff, and a couple of,500 painters as enterprise companions. We execute 15 lakh sq. ft of portray work throughout India every single day now. We intently monitor progress of every venture by means of WhatsApp teams and different means. We accomplished vendor registration with prime actual property firms in all metro cities. Henceforth, we’re hopeful of getting orders from 20-25 new firms yearly. If that occurs, we will improve our order ebook dimension by one other Rs 1,500-1,800 crore. Paints merchandise account for 60 per cent of our revenues whereas purposes enterprise contributes 40 per cent. We’ve got plans to go for an preliminary public supply (IPO) within the subsequent three years.
How is the portray business doing in India now?
On inhabitants rely, India and China are on the identical degree. However China’s portray business is valued at Rs 7 lakh crore whereas that of India is at low Rs 70,000 crore. That exhibits how large the expansion alternative is for firms like us. We’re assured of spreading our operations to each nook and nook of India if we successfully execute our enterprise companions’ mannequin beneath which we safe orders by means of our advertising crew whereas native enterprise companions execute the initiatives. To beat the established gamers available in the market, we’re adopting this distinctive mannequin.
Do you might have any plans to go abroad?
We’re planning to enter the UAE market quickly. We are going to open an workplace in Dubai by finish of the 12 months. As a lot of infrastructure initiatives are being taken up within the Gulf nation, we see a giant progress alternative there as nicely. My dream is to construct Fortune Group right into a prime development supplies firm with presence in a number of international locations. We’re working laborious to understand this dream. We’re additionally engaged on a method to have all constructing supplies beneath one roof. Other than paints, we’ve got unplasticized polyvinyl chloride (uPVC) home windows in our product lineup now. We are going to add development chemical substances quickly. Within the subsequent 5 years, Fortune Group could have a big development materials vertical.
What’s the secret of your success now?
Enterprise is my ardour. And I’ve a very good crew of staff now. I all the time deal with my staff as enterprise companions. Therein lies the key to our Fortune Group’s success. Lots of our staff have purchased villas, properties and settled very nicely now. I all the time attempt to rework my staff into entrepreneurs. Not many firms do this. I strongly imagine that our group will proceed to develop if it follows this technique.