Vishal Retail

7/31/2019 Vishal Retail

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TOPIC

Ram Chandra Agarwal On What He Learnt From

Vishal Retails - 10 Big Mistakes.


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HISTORY

He Was Born & Brought Up In Calcutta.

Average Middle Class Family.

Worked As A Manager In A Rolling Shutter Company In

Calcutta (Salary- Rs.300/month).


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STARTING STAGE In 1980s :He Noticed That People Slowly Moving

From Suiting-shirting To Readymade Garments.

50 Sq.Ft. Store At Laal Bazaar Street In Calcutta For ALong Term Lease.

Initial Capital- 5,000-10,000 (Borrowed From Friends &Neighbors ).


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His Vision :- To Make It Big.

He Found People To Work With Him Quite EasilyBecause He Is Willing To Share His

1. Vision

2. Dreams3. Profit With Employees.


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EXPANSION In 1994:- First Big Store In Calcutta.

In 2001:- Company was incorporated under the

Companies Act, 1956 as Vishal Retail Private Limited

In 2006:- Company Converted From Pvt. To Public Ltd

On Feb.20th

Registered Office At New Delhi.


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TOPIC

10 MISTAKES


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He Recruit Too Many People Without Any Background

Check Up & They Did Some Wrong Things In The

Organization.

Example:- There a Was A Big Thief In The Organisation,

He Took Money From Landlord & Finalized WrongLocations & He Makes A Lot Of Money On The Side .


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REMEDYThorough Background Checks & Pre-recruitment

Screening.

Inner Circle Consists Of Loyalist .

Finance Department Given To His Wife (Uma Agarwal).

He Is Waiting For His Son (Akash) To Complete His

MBA To run his business.


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MISTAKE :- 2

HE NEED MANAGEMENT BANDWIDTH


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He Recruit A Large Number Of MBA Students. They

Know Theory But They Dont Know The Practical Part.

Like Planning, Making Entries In Software Etc

It will Effect Quality And Success.

He Says:- There Was No Strong Leadership In Senior &Middle Management.


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REMEDY

He Says:-

In V2 There Will Be A Good Senior Management Team


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MISTAKE:- 3

LACK OF PLANNING


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He Didnt Plan In Time.

Wrong Choice In Store Ambience (From Lighting &Fixtures To Flooring).


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REMEDY

First Thing Is That My 7 Shop Should Make Rs.1,500 Per

Sq.Ft. Per Month Of Sale.

Now It Is Rs.600 Per Sq.Ft. Per Month.


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MISTAKE :- 4

OVER CONFIDENCE


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He Used To Inaugurate 4 Stores A Week

He Open Total 4 Big Garment Factories & He WasConfident About Manufacturing Too..

He says:-Such Growth Is Impossible Without ManagementBandwidth (or) communication.


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REMEDY

Now The Philosophy- One Step At A Time.

7 Store Chain (Franchise) Now Sells Only Apparel..

SKU (Stock Keeping Unit) Are Being Working WithoutAny Hurry.


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MISTAKE :-5

LEARNING TO MANAGE SCALE


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He Doesnt Have The Power To Decide, When The

Company Cross 500 Crores .

He Need:- Professional Heirarchy, Corporate Structuring

& Processes.

Cannot Be A One Man Show


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REMEDY

Either MANSUKH TANDON / JP SHUKLA Will Take

The Charge Of CEO & Will Run The Company & I WillBe The Chairman


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Mistake :-6

DOWNMARKET IMAGE


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Concentrated only on low-level customers.

REMEDY

Concentrated on every class of people.

Flavour of the season with rising incomes & burgeoningdemand.


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Mistake :-7

UNPROFITABLE GROWTH


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His Growth Was Unprofitable.

Earlier Credit Was Cheap & He Was ExpandingRecklessly.

Remedy

Now He Is Going Slowly..

Once My Model Gives Me Rs. 1000-1500 Per Sq.Ft PerMonth Of Sale, I Can Easily Expand 10 Lakh20 LakhSq.Ft. In 2 Years


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Mistake :-8

RELIANCE ON CASH


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Transaction Were All In Cash Deals (Cash Was King).

No credit.

REMEDY

He says:- if the business is good, money will flow

Reliance on cash now slashed by 50% .


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MISTAKE :-9

LACK OF MANAGEMENT SKILL


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Agarwal Lacked The Academic Discipline To Run AVenture As Vishal.


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REMEDY

By Observing Ion Retail He Understand That The

Power Of:- The Right Good At The Right Time At The

Place And Good Fill Rate

He understand:- fill rate product, choice of customer,

pricing, marketing strategy much better.


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MISTAKE :-10

INADEQUATE TECHNOLOGY

BACKUP


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Applying OfSAP, They Suffered A Lot & They Loss a lot

of Datas.

Server Was Very Less & There Is Issues WithImplementation of SAP


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REMEDY


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Documents

Vishal Retail