CASE STUDY

ON
MR.VIJAY
aGRAWAL
 INTRODUCTION
So, who is an Entrepreneur?
Before we can talk about who is an entrepreneur, we first
need to understand what entrepreneurship is. Many Older
textbooks talk about the three production factors: land,
capital and labor. Read the image below to know what these
mean.
But land, labor and capital have always been around, though
widely unused or misused. What, then, has made these three
factors of production work together to create wealth and
improve people’s lives?
The answer is the fourth factor of production:
Entrepreneurship. This is the ability to see what others who
came before missed, to make connections between things
that others had not, to get all three other factors to work
together to create that which had not existed before. It is this
insight, this creativity that makes the other three factors
productive.
Definition
An entrepreneur is a person who has possession of an
enterprise, or venture, and assumes significant
accountability for the inherent risks and the outcome. It is
an ambitious leader who combines land, labor, and capital to
create and market new goods or services.
 OPENING SUMMARY
Mr. Vijay Agrawal is one of the most successful

entrepreneurs and businessman in Indore. Because the

concepts of entrepreneurship are essential in starting a

business, it would be best if we will be able to assess

the skills and the strategies being used by Mr. Vijay

Agrawal in his popular and prestigious company, the

“Smart wear clothing co.” Mr. Vijay Agrawal made a

difference in the entrepreneurial industry for he was

able to establish and was successful in establishing the

identity of “Smart wear clothing co.” to the various

segments in the market. Moreover, he was able to

manage the whole company, with the dedication and

alongside his successful and dedicated employees.

 Introduction of his
business
“Whatever progress humanity has
made have been due to the effort
of leaders whose visionary efforts
and innovations have changed the
way people live and see the
world”
Mr. VIJAY Agrawal is one of such
entrepreneurs. He deals in
manufacturing of ‘school and corporate
Uniforms’. He is the Founder and owner
of ‘Smart Wear Clothing Co.’

Trader to Tycoon (early

business)

In 1985, at the age of 22, he went to Delhi, to his uncles

house. In Delhi he started a small shop of old
newspapers and magazines. But, he was not satisfied
with his work, so after living for two years in Delhi in
1988, he came back to Indore. Here he started shop of
tailoring mans’ wear with a capital of fifty thousand
Rupees. Initially he appointed 5 tailors in his shop.

Business Model

The business model used by Mr. Vijay Agrawal is the

Focus Strategy Model, which is designed to address a

“focused” segment of the marketplace. Moreover, this

model or strategy is based on the concept of serving a

particular target in such an exceptional manner, that

others cannot compete, and this usually means

addressing a substantially smaller market segment

than others in the industry, but because of minimal

competition, profit margins can be very high .

 Childhood

Mr. Vijay Agrawal was always interested in becoming a

businessman and by his desire and hard work, he has

become a successful businessman of Indore. He was born

in July 11, 1963 in Barwah, Madhya Pradesh. He was

educated at Stowe School. His father, Mr. Vishambhar

Dayal Agrawal was a businessmen but he did not joined

his family business rather he wanted to establish

something out of his own hard work. His mother was a

housewife. His parents were able to impart in him a sense

of hard work and the need to be financially successful.

During his school times he could do well in his academics

and sports. He was one of naughty child in his childhood.

FAMILY BACKGROUND

“I don't care how poor a man

is; if he has family, he's
rich.”
~Dan Wilcox and Thad
Mumford

Mr. Vijay Agrawal belongs to a middle class

family. His father was a businessman and his
mother was a house wife. He has two sisters and
an elder brother.
He is married to Mrs. Sunita Agrawal and has
two daughters and one son.
Mr. Vijay Agrawal considers his family behind
his success. According, to him they are the one
who motivates him to take new ventures.

Inspiration

“The thing always happens

that you really believe in;
and the belief in a thing
makes it happen.”
These lines turned up to be an inspiration for Mr.
Vijay Agrawal. Once his mother told this to him
and from than these lines inspired him to do
something different. He just did everything by
having a strong believe on it. He always learned
to do things with full determination and strong
believe. He believes that if one wants something
in life than he should be fully committed to his
work. No, obstacle should be able to distract us.
 Why he choose this
Business?

“The secret of success in life

is for a man to be ready for
his opportunity when it
comes.”

This the thing on which Mr. Vijay Agrawal strongly

believes. He believes that if you are intelligent and
know how to apply your intelligence, you can achieve
anything. From childhood Mr. Agrawal was
ambitious, intelligent and competitive. These qualities
helped him to attain top position in the profession he
chose. To him entering to this business was just by
chance. His brother-in-law had a tailoring shop, where
he often visits where he realized the demand for
stitched clothes and established his own tailoring shop.

RESOURCING

• WORKFORCE – There are twenty employees

working in the firm.

• MATERIALS REQUIRED – Fabrics

• CAPITAL AND FINANCES – 50000

• MACHINERIES - Ten Stitching Machineries

• MARKET DEMAND – Schools, Colleges and

Corporate Firms
INITIAL CONDITION OF THE
BUSINESS AND FINANCIAL
POSITION

Mr. Vijay Agrawal started the business with a

small tailoring shop. It was a gents tailoring shop,
established in year 1975 with a capital of Rs.50,
000. At the start of the business he appointed two
assistants in his firm, Mr. Ratanlal Chauhan as a
tailor and Mr. Ram Mishra as one of the
employee to help with their business. The
business was established in Indore at R.N.T
Marg.
 WORKERS AND
EMPLOYEES

1. Mr. Raju Srivastav- Manager

2. Mr. Chottu Nisapuri- Assistant

3. Mr. Jorej D’souza- Accountant

4. Mr. Shiv Mehta- Chief Tailor

5. Mr. Asif Ali- Tailor

6. Mr. khalid- Tailor

7. Mr. Asmaul Husna

 PRODUCTION PROCESS
Our business ethics, streamlined
‘

and cost down production process

and commitment towards
customer satisfaction has helped
us to establish firm and long
lasting relationships with our
clients.’
Product Range
The production in the firm is done through tailoring
machineries. All the products manufactured by firm are
made from superlative quality raw materials sourced
from well established and reputed suppliers and
distributors. The wide and comprehensive range of
products includes:
• School Uniform
• Industrial Uniforms
• Hospital Uniforms
• Caps
• T-Shirts
• Doctor Coats
• Lab Coats
 • Official Uniforms
• Coverall Uniforms

PRESENT CONDITION OF
HIS BUSINESS

From childhood Mr. Vijay was ambitious,

intelligent and competitive. These qualities
helped him to attain top position in the profession
he chose. Today, SMART WEAR CLOTHING
CO.” has established a great name in the field
uniform manufacturing firms. It has an annual
turnover of Rs.7 lacks. It advocates for the
uniforms of all leading schools of Indore and
outside Indore, namely Daly College, Queens’
College and many more. It also holds a good
command on manufacturing of corporate
uniforms. Now, he has purchased one more shop
just near his old showroom and is planning to
merge it with the old showroom.
 SATISFACTION AS AN
ENTREPRENEUR
Success is not the key to
happiness. Happiness is the
key to success. If you love
what you are doing, you will
be successful.
Mr. Vijay Agrawal his one amongst those who do what there
heart says. He says that he is very happy today, being the
owner of such a renowned company. He to get success in the
work one thing is our like towards our work. He is proud of
being an entrepreneur.
According to Mr. Vijay Agrawal, his success was not
planned, for it just happened, though he has his five secrets
to success:
. You have to challenge the big one.
. Have fun working.
. Do the right things for the company.
. Move like a bullet.
. Be a common, regular person.

SWOT ANALYSIS

S - STRENGTH
W - WEEKNESS
O - OPPORTUNITY
T - TREND

Strength
Our dedicated team of designers, business oriented
professionals and quality conscious management has
always been the pillar of our strength.
Weakness
• Too few people to complete work on time, in
budget on a consistent basis.
• Financial issues
○ Cash flow inadequate to meet necessary goals
○ Clients may desire to pay less for services the
SHP desires to charge
• Lack of awareness of the firm could cause lack of
chance at existing opportunities, especially in first
several months.
• Could be trying to do too many things

Opportunities
. The utilization and maximization of the Internet
. Implementation of new information systems
. New market segments, which offers better profits
. Establishment of an identity in the market
. Brand loyalty of consumers
. Success in use of advertisement and other forms of
media
Threats
• Changing tastes and preferences of customers

• Competitors have new, innovative product or

service

• Increase in taxation

• Access of competitors to channels of distribution

• Terrorism, outbreaks, biological warfare, and

hijacks (airline threats)

• Failure of one group due to inadequacy of quality

materials in construction (Virgin Trains)

 CONCLUTION
Mr. Vijay Agrawal is a visionary person and works very
hard to achieve his vision. His belief in high intelligence
and hard work has put him where he is today. He does not
believe in mere luck or God’s grace, but just hard work
and competitiveness.

NEN
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Jumbo King Vada Pav

Would you be able to resist delicious roadside food - if it were hygienic? Dheeraj Gupta, the Jumbo Vada Pav King, bet
you couldn't. Now every day, at least 40,000 people prove him right.

Quick Facts

Entrepreneur :Dheeraj Gupta

Age :33

Company :Jumbo King Foods Pvt. Ltd.

Based in :Mumbai

Founded in :2001

Industry :Hospitality/ Service / Travel

Business Summary

Retail chain/ quick-service restaurants branding roadside food

The Idea

Ironically, it wasn't the Mumbai-ite's love of the vada pav that initially inspired Dheeraj Gupta. Though biting into one of
the piping-hot treats, consisting of deep fried potato dumpling served in a lightly-buttered bun, may be elevating,
Dheeraj's original inspiration for Jumbo King Vada Pav was much more prosaic.

While visiting London, Dheeraj stayed with a friend who owned a Burger King franchise. "That's when I saw how their
business worked," he says. Dheeraj was fascinated by the fast food franchise business. "Back in India, I happened to
come across a book about the person who set up McDonald's. It inspired me tremendously and I decided to follow the
same model."

But he wanted to give the business an Indian flavor. "Vada pav was the obvious food choice because Mumbai-ites love
it," he says. Vada pavs are one of Mumbai's favorite roadside fast foods.

Dheeraj took his idea further - he was willing to bet that, for snacks they knew were hygienic, people would pay him
more than twice the price than they would pay for a vada pav from a traditional street stall.

So in August 2001, Dheeraj set up an outlet called Chaat Factory close to Malad station, a suburb in Mumbai. "I
wanted to sell hygienic chaats in the market. But I started with vada pavs only." His success selling this one snack
focused his attention, and he renamed the company Jumbo King Vada Pav.

The Opportunity

It turns out that vada pavs are a young person's food. In fact, a feasibility study performed by Jumbo King showed that
75% of vada pav purchasers are 16 to 25 years old. Also, surprisingly, the majority of people purchasing the snack hail
from the higher income brackets.

At Jumbo King, Dheeraj and his team are therefore playing into some important trends: more young people today have
money to spend; and at the same time, they are increasingly health- and hygiene-conscious, wanting to know that they
are receiving good quality food. Jumbo King, explains Dheeraj, "is riding on this generation."

Thousands of street-side vendors still dominate the quick food market, and placed among these, Jumbo King is
distinctly different. "Right from deciding to use paper to wrap the product in, having processes and systems in place,
branding a common Mumbai-ite's food, to running the business like the Western style fast-food giants, we have
constantly innovated, dared and gone against the tide."

In one area, Jumbo King maintains a more traditional outlook - like all retailers, they focus on location, location,
location. Today, all Jumbo outlets are located near railway stations.

By combining the elements above, Jumbo King seems to have come up with a successful "secret sauce". Today the
company has 30 outlets in Mumbai, two in Surat, one in Ahmedabad, one in Baroda and one in Pune.

The Money

A loan of Rs. 2 lakhs kick-started the business. Growth has been helped by the fact that the business can generate
quick cash flow: the first Jumbo King outlet at Malad made money from day one.
"All the money from the business was ploughed back into buying the second store," says Dheeraj, who used to take
back home a salary of only Rs. 5,000 a month.

Dheeraj has been creative in funding additional growth, tapping different sources. He took a bank loan to open the third
store at Andheri (W). The fourth store became the first franchised store of Jumbo King. Since then Jumbo King has
followed the franchise model.

How will Jumbo King fuel future growth? Dheeraj and his team feel they would like to bring in investors, but only after
they reach the 100 store mark. "The money from this investment will take the product to a completely different league,"
says Dheeraj passionately.

The Team

Initially there were a lot of objections. "Everyone told me I was mad to waste my hotel management degree by selling
vada pavs. But I was determined to make it a success," explains Dheeraj.

Dheeraj started Jumbo King along with his wife and four employees, who helped with cleaning, packing and
maintenance. "We did all the accounts ourselves at the end of the day at the store. There was no office." Gradually, he
integrated franchisees into the system.

With the support of his wife Reeta, also an MBA, Dheeraj has managed to expand the Jumbo King team to a total of 35
employees, with an increasingly professional set up. In fact, they have brought in a CEO, and are looking for senior
people to join the team. Dheeraj puts forward a mature perspective, "The idea was to get in people who have seen
larger businesses, and who can anticipate issues of scaling better than I can."

The Company - today and tomorrow

What started off as a tiny experiment in 2001 has expanded to 35 outlets in five cities, catering to about 40,000 people
every day. This translates into some solid financials. This year, Jumbo King is looking at a turnover of Rs. 18 crores
(almost $5 million) and with rapid growth to a projected turnover of Rs. 60 crores in 2008-09.

Dheeraj anticipates continued growth in the fast food Indian market for Jumbo King. He believes "the Indian market can
easily accommodate 5000 stores in 8-10 years time. We are looking at Jumbo King doing a billion dollars worth of
revenue by then," he says.

Looking beyond India, he adds, "With such a huge local population and such a huge expat population, I don't see why
there can't be 12-15,000 Jumbo King stores all over the world."

And, it's not just independent vada pav stores that he's considering. Dheeraj wants to expand into food courts and
malls. "Vada pavs have the potential of becoming a big category by itself, with many brands competing in this category.
And we have an early mover advantage" says Dheeraj

What keeps you awake at night?

"That we are far from reaching an absolute comfort zone, where our company has become anti-gravity," says Dheeraj.
He explains that even with 35 outlets today, he's still plagued with the same fears that he had when he started. "Now
with new outlets in other cities we are playing the wait and watch game again. We are relearning all over again. We
need to see the sustainability of the model. And we feel the same fear of what happens if it doesn't work. After all, it's
not daily food for people outside," signs out a nervous Dheeraj.
Bottom of Form
PEOPLE BEHIND SUCCESS OF HIS
BUSINESS

PROFILE
Mr.Vijay Agrawal
 11 July 1963 (1950-06-15) (age
Born 43)
Barwah, Indore,India

Residence 15-n Dhanwantri Nagar ,Indore.

Nationality Indian

Ethnicity Marwari

St. Xavier's College, Calcutta

Alma mater
Bachelor of Arts/Science, [5]

Occupation Chairman and CEO, ArcelorMittal

Net worth ▼ US $19.3 billion (2009)[1]

Religious
Hindu
beliefs

Spouse(s) Usha
 Aditya Mittal
Children
Vanisha Mittal