First Generation Entreprenur: A Case Study of Modest Infrastructure Pvt Ltd.
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1 Global Journal of Management and Business Studies. ISSN Volume 3, Number 7 (2013), pp Research India Publications First Generation Entreprenur: A Case Study of Modest Infrastructure Pvt Ltd. A. Kumar 1 and Saroj Vats 2 1 Dept of Business Administration, M.K. Bhavnagar University, Bhavnagar, Gujarat, India. 2. Shree Sahajanand Institute of Mgt., Bhavnagar, Gujarat, India. Abstract Entrepreneurship has been centre of commercial activities in any economy. Grass root level economic and social development is mostly embedded and also powered with entrepreneurship. The crucial part is played by the first generation entrepreneurs always in the interest of society and economy as well. This paper aims to highlight the efforts and challenges faced by a first generation entrepreneur who has developed a fully fledged company engaged in ship building in Gujarat. The social setup, financial challenges and non availability of resources are common problems at initial level of business development. This personality has revolted with not only with the common teething problem but also managed very efficiently all relative issues in business development. The story goes for constitution and development a ship building company in Gujarat which caters the social and economic needs of over a thousand families living at bottom level in a coastal city in Gujarat. This company builds small and medium size ships and takes also maintenance work of ships. The entrepreneur also looks for social accountability of the business and has been evolved with a number of social and NGO activities. The contribution to resolve local developmental issues like employment has always the objective of such entrepreneurs which has perfectly been handled by the personality. The life of such entrepreneur creates a lead for the society and provides a message to protect and support development of entrepreneurships in the interest of the community.
2 770 A. Kumar & Saroj Vats Keywords: Ship building, coast, entrepreneur. 1. Introduction Modest Infrastructure Ltd is a premier shipbuilding and ship repairs shipyard based in Bhavnagar, Gujrat with its registered and corporate offices in Mumbai. The yard spread over an area of about sq. mts is well connected to Bhavnagar airport and Bhavnagar- Ahmadabad highway, giving it considerable logistical advantage. The yard has excellent facilities and competent work force to deliver high quality of ships and ship repairs services. The shipyard is certified for ISO 9001, 2008 by the Indian Registry of Quality Systems. The Shipyard has the capacity to build medium sized vessels up to 6000 dwt and has so far delivered various types of vessels like Product tankers, Oil tankers, Offshore survey vessels, Cement carriers etc.( both for international and domestic clients including Indian Navy) Shipping industry is a heavy investment business as it needs big infrastructure to support. Major players in world shipping industry are Korea with 34%, Japan 28 %, China 18 % and Turkey8 %. Shipping Business is a risky and highly profitable business. It has majorly 3 factors affecting shipping business are. cyclics international economices Though Indian ship building industry carries only 1 % of world shipping industry. On the creek of old port, Bhavnagar a big board is visible which carries a Name- Modest Infrastructure Ltd. Some big ships are visible from road side. Modest Infrastructure does not need any introduction to shipping industry, which carries 15 to 20% of Indian shipping industry. The Modest has its customers all over the world but majorly in Turkey
3 First Generation Entreprenur: A Case Study of Modest Infrastructure Pvt Ltd. 771 United Kingdom U.A.E Mauritius Italy Modest Infrastructure Ltd, is a professionally Managed company with its Management having the requisite experience and capability to handle any kind of challenges in the present day scenario. It has a capital worth of Rs. 180 crores. The Modest is owned by a first entrepreneur from a very traditional Gujarati family. Traditionally Guajarati s are businessman! Most of the time they are traders and interested in share market and diamond. Mehul Patel, the Chief founder member and partner of Modest Infrastructure was born on 28 th day of June 1971 in traditional builder family of Bhavnagar, Mehul Patel, who had passed his 12 th science from a local school, highly interested in business. During his summer vacations of schooling, he started searching business opportunities. Looking to opportunity in various business areas he acquired his diploma in mechanical engineering from Bharuch, Breaking his family line of business he joined his first job with Thermax India Ltd. As a sales and service franchise. It was first time in India someone took franchise of Thermax. In 1998 he joined Alcock as contractor. Later he joined Porbandar and Okha dock. He was travelling all the way to Jamnagar-Porbandar with least life resources with him. From 1999 to 2005 he worked with Gujrat Maritime Board, Kandla Port Trust, and Coast Guard Vessels and local ports just to learn more and more about shipping was turning point in his career. Along with 3 partners from Bombay, namely Ghanshyam Roja, Kishore Gambhani, Prakash Sadhvani, he applied for land at old port, Bhavnagar. Initial deployment of capital by him was only 3, 00,000 Rs, Rest what he was having was his enthusiasm, expert knowledge and experience. The other 3 partners managed rest of finance to start up modest. Mehul Patel, was having strength of expertise knowledge and vision. He was having extreme power of exploring and grabbing the opportunity. Sign of a true business man! Visionary! Modest always worked with core values like-
4 772 A. Kumar & Saroj Vats Within a short span of time Modest reached to its heights. Made huge profits and people across Gujarat started recognizing Modest. Many awards for Excellency were named after Modest. In 2012 Mr Narendra Modi, CM, Gujrat has visited Modest and inaugurated one of the major ship. On 27th July 2012 Dempo Shipbuilding and Engineering Pvt. Ltd., a subsidiary of Dempo Group of Companies, bought a majority stake in Modest Infrastructure Limited, with the intention of expanding shipbuilding vertical of Dempo Group. But before that he stepped in to another lucky charm business and take over Mascot Engitech Pvt. Ltd. 2. Development and growth of Modest Modest Infrastructure Ltd. originated in the year 1994, with an initial capital of only few lakh Rs. Later after joining of by Mr. Patel, as a partner it turned in to Shipping Agents and subsequently expanded its activities to develop as Ship Owners, Ship Managers, Charterers, Ship Repairers, suppliers of Bunkers/ fresh water and ship stores, and to its present status as shipbuilders having worth of 200 cores today. Year by year growth and development, stepping in to ship building from fabrication. It can be explained further by the details below- year Turnover (in cr.) Wip (in cr.) Profit (in cr.) n.a. o Source- P & L statement of Modest Infrastructure (* figures are in cr). sales, WIP and Profits. (* fig in crores) growth of Modest infraturce Ltd turnover WIP profit
5 First Generation Entreprenur: A Case Study of Modest Infrastructure Pvt Ltd Growth and Development of modest- Growth and development story of Modest was full of struggle. The struggle was not different than other industries where part owners have a fight of their existence. Being a first generation entrepreneur, and not having a sound experience of trade, it was a hard time for Mehul to get established. But he had extra capabilities of personal networking and a capability of working as a common man, he proved himself a successful entrepreneur during the hardship. The life struggle has made him strong in his approach and he got converted in to a hard task master. This capabilities well matched with typical characteristics of Gujarati workers and gave this industry a boost in to the state. Usually first generation entrepreneurs do not have likely business capabilities which they learn by time but their extra determination and social challenges make them success in devour. Mehul, is no exception to this.
6 774 A. Kumar & Saroj Vats
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