Introduction
The story of V-Guard and Kochouseph Chittilappally is of pure determination and grit. A typical boy from a normal middle-class family turning into the largest taxpayer of a state like Kerala is nothing less than inspiring.
The Beginning of V-Guard
In today’s article, I’m going to walk you through the successful journey of V-Guard and Kochouseph Chittilappally. The beginning of V-Guard is a well-known brand in India that manufactures Electronic Products, Home Appliances, and Innerwear. Mainly, V-Guard is known for its stabilizers, Inverters, Inverter Batteries, and other power backup systems. The company has now been highly diversified and offers multiple products and services.
The company was founded in the year 1977 by Kochouseph Chittilappally, a typical middle-class youngster hailing from the Thrissur district of Kerala. He started the manufacturing unit of V-Guard stabilizer with an initial capital of 1,00,000 rupees which he had borrowed from his father. From there on, there has been no looking back! Currently, the founder is one of the richest in Kerala with a net worth of around Rs. 4,144 crores!
A Humble Beginning
- Mr Chittilappally was not born with a silver spoon in his mouth. His life was no different than any normal middle-class guy then. He did his schooling in a Malayalam medium school and went on to do his M Sc degree in Physics.
- While in school and college he had never dreamt of being a businessman. In fact, he wanted to become a scientist. However, immediately after his studies, he felt like doing a job instead and fetching an income of his own so that he could stop depending on his parents.
- In the year 1973-74, he got placed as a supervisor trainee in a company named Telics which was then indulged in the manufacturing of electronic stabilizers. His initial wage was a mere Rs. 150 per month and it got increased to Rs. 700 per month when he left the job in 1977.
- The decision of quitting the job was hard to make as there were suggestions from the family not to discontinue the job. However, the parents of Mr Chittilappally were very much supportive and trusted in the ability of their son. Otherwise, his father wouldn’t have given one lakh rupees, which was a huge money by the then standard, which helped him setup the business.
Early Challenges in Business
Kochouseph chittilappally started his business in a small garage taken from his friend. During the initial days, he had two helpers to assist him in manufacturing the Stabilizer. Also, Read – Story of Meesho The initial months were hard While recounting his initial days, Mr. Chittilappally remembers how difficult it was to get people to buy their stabilizer. In the initial months, the company manufactured stabilizers at the rate of 50 pieces per month. He priced the products slightly on the higher side. This along with the already existing competition from the big players literally made the life of V-Guard and Kochouseph Chittilappally difficult. However, Chittilappally wasn’t the kind who would easily give up.
He ventured directly into the field and convinced the retailers why his product is better. The quality factor fetched rewards! Customers liked the quality and the company could sell all their products within two months!
The Boom in the Stabilizer Industry
Taking charge of every aspect of a business is something that comes from pure passion and the trust one has in the self. Mr. Chittilappally set a pure example of how one should believe in themselves and their products and services. The booming of the stabilizer Industry1990s played a vital role in the success of V-Guard. The Television Industry was highly booming and it was necessary to secure these television sets from voltage fluctuations which were pretty common in those days.
The combo of Television sets and high voltage fluctuation acted as catalyst for V-Guard and the demand for electric stabilizers was at its all-time peak. Literally, V-Guard couldn’t fulfil the demand for Stabilizers!
Overcoming Challenges and Diversifying the Business
- This made the company the most successful one during 1993-97. In fact, Mr Chittilappally was the most significant taxpayer for three consecutive years! Diversification of the business In the late 80s, the company had to face a strike from the labourers and V-Guard confronted an existential crisis. There were high demands for increasing the number of labourers from various Labour Unions. This rival approach is quite common even nowadays, something many businessmen regard as a potential barrier to enter the state.
- Mr. Chittilappally was reluctant to accept the demands of various trade unions. Rather he did something strange which is referred to as an entirely new business model.
- Instead of increasing the number of employees, Mr Chittilappally outsourced the production of Stabilizers to other firms through which both parties benefitted well.
- This was the time Mr Chittilappally thought of diversifying the portfolio and entering into new realms. This would make sense given the situation of Kerala.
- V-Guard ventured into other sectors. Veegaland was one such venture which turned out to be a huge success in the coming years.
- Mr. Chittilappally laid the foundation of the biggest amusement park in the country in Kochi which was opened in the year 2000. The park was renamed later to ‘Wonderla’ as part of promoting the new brand. They also opened an amusement park in Bangalore in the year 2005.
V-Guard’s Expanding Product Portfolio
V-Guard now also has a great variety of products and has a considerable market share in all those products.
- UPS Systems: 20% market share
- Pumps: 15% market share
- Water Heaters: 12% market share
- Wiring Cables: 7% market share
Currently, the company claims to have 500 distributors, 3000 dealers,20,000 retailers, and a network of service centers across India.
Kochouseph Chittilappally: The Philanthropist and Author
The company has also launched its textile wing, V-Star Creations which makes innerwear. Kochouseph Chittilappally in different roles Mr. Chittilappally is a multifaceted individual. He is a famous philanthropist, social activist, Author, and a great human being.
In 2011, he donated one of his kidneys to a stranger and is actively advocating the donation of organs throughout the country. He is a prominent author who has published a number of books including an autobiography ‘ Ormakkilivathil’.
Conclusion
V-Guard and Kochouseph Chittilappally is one of the exemplary stories of what determination, innovation, and staying power can create. His life is a fine example of believing in one’s dream and sticking by it, come what may.
Takeaways for Readers
As a business aspirant, you should believe in yourself and realize the potential of your ideas. Start humble, enjoy the process, and Don’t focus too much on the result, Start humble. The word is yours!
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