From zero to Rs 3 Cr turnover per month, how this Ahmedabad-based company scripted a success story
Ahmedabad-based Nikshe MultiProducts, along with sister concern The Slipper Factory, has diversified the product range and boasts of an impressive clientele, including ITC Maurya, Taj Hotels, and Oberoi Hotels.
Chirag Kabra’s business journey started as a credit analyst in an investment firm run by his father in Mumbai. His life altered considerably when he decided to get into the business of exporting bedsheets and pillow covers in 2011. The business, though initially seemed tricky, turned out to be rewarding.
Chirag Kabra (L), Managing Director, Nikshe MultiProducts, with Chanchal Soni and Karan Soni, Co-founders of The Slipper Factory.
Starting from scratch
Nikshe MultiProducts Pvt. Ltd. was founded in 2014 when Chirag and his wife, Sheena, decided to enter the manufacturing sector after receiving an order to manufacture laundry bags for Marriott Hotel in Ahmedabad.
Chirag says everything was challenging from day one because neither of them had any experience in manufacturing. He says, “There are almost 40 to 45 chartered accountants in my family, and we had no experience in manufacturing.”
From setting up a manufacturing unit in Ahmedabad to getting clients onboard, Chirag says his firm has come a long way. “No company was ready to give orders to a new company with young entrepreneurs without much experience.”
The stitching, printing, and delivery was done by Chirag and his family. While the husband-wife duo procured materials from different parts of Gujarat, Chirag’s mother and grandmother helped them assemble the product, for which they sometimes worked through the night. Chirag's father Shantilal Kabra helped in the business by contributing an initial capital of Rs 1 crore.
The company incurred losses in the beginning. “Our first order was worth Rs 6,000 for which we incurred a loss of Rs 9,000.”
While setting up the manufacturing unit, the couple bought stitching machines from local players and imported some heavy machines from China.
Initially, Chirag had no idea how the machines worked and would end up getting injured. He even got an electric shock once while handling one of the machines. However, gradually as offers started pouring in, Nikshe MultiProducts Pvt. Ltd. started making a mark for its products.
Diversifying the product range
In 2016, Chirag’s sister, Chanchal Soni, and brother-in-law, Karan Soni, joined the business. They noticed a vacuum in the slipper industry.
Karan says, “Room slippers are a very distinctive product used extensively in the hotel industry. They were supplied mainly by unorganised players in India.”
These products had issues of irregularities in distribution and inconsistency in the quality. The couple decided to take the plunge and launched a disposable slipper manufacturing brand - The Slipper Factory LLP - under the existing business.
"While Nikshe MultiProducts Pvt. Ltd. is known for its dry amenities and surgical products, The Slipper Factory is known for disposable slippers," Chanchal says.
The business employs over 350 people and has diversified into 85 products, including face masks, laundry bags, bathrobes, room slippers, sherwani covers, and many more.
Years of hard work and expansion endeavours paid off. Today, the company clocks an annual turnover of Rs 22 crore; the founders claim it is clocking Rs 3 crore every month.
Nikshe MultiProducts Pvt. Ltd. and The Slipper Factory manufacture over five lakh products every month and boast of an impressive clientele, including ITC Maurya, Taj Hotels, and Oberoi Hotels. The products are priced in the range of Rs 10 to Rs 90.
In addition, the company is listed on Amazon and also sells through social media platforms such as Facebook and Instagram.
Chirag saysevery year they invest about Rs 25 lakh to come up with a new line of production, which is totally different from what they have done in the past.
The road ahead
Chirag says the present-day consumer is well informed. Hence, the major focus of their business is on personalisation and customisation.
Their aim has also been to stop importing products from China and start manufacturing everything in India. This will result in products that are five percent cheaper than those imported from China and will ease the procurement process for the tourism and medical industry.
Furthermore, in the wake of the COVID-19 outbreak, which has brought the world to a standstill, the business has ramped up its manufacturing process by using eight machines to cater to the growing demand of face masks. The masks come under the essential goods manufacturer category, and the unit has the approval of the local government to continue operations.
Post-coronavirus, Chirag, Karan and Chanchal also plan to enter the business of organic farming.
They are looking forward to merging the two businesses and developing another manufacturing facility in Ahmedabad on a two lakh sq ft area. In the next two to three years, they see themselves clocking Rs 100 crore.
(Edited by Javed Gaihlot)