No. 1

Vikas Garg | Vikas Global One

With plans that require the company to grow 5X in the next four years,
there isn’t a moment to rest, insists Vikas Garg, the 38-year-old managing director. Next in line: build a robust team.

As told to Shreyasi Singh

Photograph by Subhojit Paul

We've grown upwards of 500 per cent in the past few years. In the next five years, we’ll grow by five or even six folds and be a Rs 800-crore company, and that growth rate will continue. The foundation that we had set up is finally showing results, as we near the end of our first stage in 2011.

Vikas Global One was founded in 1984 by my father. Till eight years ago, we were an NBFC (Non Banking Financial Company). Along the way, we understood that this wasn’t a business for the future. My father had a Masters in Chemistry and some contacts in the chemicals business so he got into the specialty chemicals and polymers business.

Last month, I formally took over as the managing director. It was my father’s decision to pass on the reins. Things were changing fast and he wanted to slow down. If you compare us, I think he had an easier style. I am much more ambitious. It isn’t just about making money. I want the whole hog—fame, money and the fulfilment that comes from creating something beyond just shareholder value.

We trade in specialty chemicals. These are catalysts and additives needed for plastic formulations such as wireless cable, agricultural pipes and auto parts. When my father started his business, India was far behind Asian, European and American countries. Now, there are enough opportunities in the specialty chemicals business. Across the globe, it’s one of the fastest-growing segments, and our focus has to be global, as we are a multiproduct company. Merely adding on volumes won’t do for us. Beyond a threshold, volumes actually decrease your per unit profit.

In India, the per capita consumption of polymer is negligible as compared to developed nations. We will grow by inorganic methods and by adding new capacity. We have two plants in Jammu and two in Rajasthan. They all have the capacity for further enhancement. In fact, we can double-up capacity when need be. We’ve also been granted land in Gujarat and are working on a greenfield manufacturing unit there. This is a critical project. It will help us cater to the industrial hubs in western India and the exports market. We are also actively on the lookout for buying available technology from Korea, Taiwan and China.

As far as acquisitions are concerned, we are in advance stages of discussion with two companies—it might happen in September and December. We’ve also established an export division though currently our exports are negligible. Although our focus is on the SAARC countries, we’ve also employed external agencies to scope out opportunities in Europe and America. Capital isn’t going to be a roadblock. We are funding plans with internal accruals and promoter contributions. That should see us through the next few years. We are open to private equity funds if we get good valuations. But we aren’t actively scouting. Some HNIs did show interest but we’re not interested. Money is always welcome, of course, but our plans won’t stop if we don’t get it right now.

My other priority is to build a good team. I don’t want to work with every kind of person. They shouldn’t be those who only wait for the seventh of the month for a salary. I need people who share my dreams. That said, I can’t be a preacher who just gives gyaan. I can command respect only if I perform myself. So, come what may, I’m in the office by 9am even if I’ve got off an international flight at 5am. I’m constantly trying to adapt. The boss has to live the changes in a growing organisation.

I feel guilty if I don’t work hard. I take work home every day. I constantly feel the pressure to perform and achieve. Having said that, it’s not that someone would haul me up if I don’t reach the Rs 800-crore mark. But I’m answerable to myself, and that’s good enough. My father always asks me to calm down and go slow. On his face, I agree. However, without aggression, without that something extra, one cannot achieve.

"I'm constantly trying to adapt. The boss has to live the changes in a growing organisation." - Vikas Garg

I don’t get distracted or disheartened easily though. Short-term problems and challenges shouldn’t get one down. My perspective is not limited to a six or 12-month goal. It’s a long journey and I have to keep myself focused on the larger picture. I really believe that if you just play with a straight bat, the mission will be reached. It might be a year here and there from the deadline, but you will get there.

	EMAIL THIS ARTICLE	PRINT THIS PAGE