In entrepreneurial success stories, few tales are as inspiring and remarkable as that of R.G. Chandramogan, the visionary behind Hatsun Agro. Starting with a modest investment of Rs 13,000, Chandramogan transformed his ice cream business into a mammoth enterprise, now standing tall as India’s largest private-sector dairy company with annual revenue of Rs 8,000 crore.
Born near Sivakasi, Tamil Nadu, Chandramogan’s early life was marked by financial hardships. His father’s small provisional store couldn’t sustain the family, and to add to the challenges, Chandramogan faced academic setbacks, particularly in his favourite subject, Mathematics.
At the age of 21, Chandramogan took a bold step. He sold off his ancestral property for Rs 13,000 and ventured into the ice candy business. Renting a modest 250 sq ft space in Royapuram, Chennai, he named his brand Arunodyam, after the Tamil word for Sun rays. Finally, in 1970, Arun was reborn.
Chandramogan’s strategy was simple but effective – sell sticks and cup ice candies through pushcarts to college students. The idea resonated, and Arun earned 1.5 Lakh in revenue within the first year. The success prompted rapid expansion, with the factory doubling as Chandramogan’s bedroom at night.
In 1974, Arun strategically targeted ship chandlers, supplying food items to vessels, capturing 95% of the college canteen and ship chandler market. By 1981, Arun’s sales reached 4.25 Lakhs, but Chandramogan recognized the need for diversification.
Acknowledging the seasonal nature of the ice candy business driven by students, Chandramogan expanded into ice creams and dairy in 1981, founding Arun Ice Creams. However, breaking into a market dominated by giants like Dasaprakash, HUL’s Kwality Walls and Joy proved challenging.
Ingeniously, Chandramogan packed ice cream with rice and distributed it on trains, reaching rural parts of Tamil Nadu. This unconventional strategy not only saved on cold storage costs but also propelled Arun to become the largest ice cream seller by volume in the state by 1985.
Arun’s success continued to snowball. By 1995, it expanded to Kerala and Andhra Pradesh, making it the largest ice cream brand in South India with 700 outlets. Chandramogan diversified further, introducing liquid milk under the brand Arokya. By 2001, Arun and Arokya had become a 100 crore business.
Chandramogan’s entrepreneurial acumen led to the establishment of premium ice cream parlours under the brand Ibaco, offering unlimited scoops for customers. Strategic advertising, such as billboards for ice cream bookings in advance, propelled Arun Ice Creams into a 2000 crore business by 2014.
Going public in the same year and trading on the NSE marked a significant milestone for Hatsun Agro. The company, now encompassing both ice cream and dairy products, saw its revenue soar to over 5000 crores by April 2020.
Today, Hatsun Agro stands as the largest private-sector dairy company in India, boasting a staggering Rs 7,200 crore in revenue. With 10,500 milk banks, 50,000 employees, and 14 plants across 12,000 villages, the company produces 60,000 litres of ice cream daily.
According to Forbes’ real-time net worth, Chandramogan stands among India’s wealthiest, with a net worth of $2.2 billion (Rs 180 billion), ranking as the 99 richest person in India and 1,647 globally.
Source : News 18 Jan 2nd 2023