Ramchandra Agarwal's story is an example of how his physical challenges paled in comparison to his passion. Due to polio in childhood, the lower part of his body was non functional, but he refused to give up. After completing his studies, he took up a job, but soon realized that he wanted to do something big for himself.
Taking a loan, he opened a small photocopy shop in Kolkata, which did not work for long. After this, he tried his hand in the soft drink and clothing business. He ran a small clothing business for 15 years, but the desire to do something big brought him to Delhi.
Foundation of Vishal Mega Mart and its spectacular success
He started Vishal Mega Mart in Delhi in 2001-02. His focus was on middle class and lower middle class customers. His strategy of providing good quality products at low prices made him a public favorite. Soon he opened 645 stores in 414 cities. In 2007, the company's IPO came and its valuation reached Rs 2,000 crore.
The mistake of growing fast and ruin
On reaching the peak of success, the company started expanding very fast. Due to hasty wrong decisions and heavy debt (Rs 750 crore), the condition of the company started deteriorating. The economic recession of 2008 also gave a shock. Eventually in 2011, Ramchandra Agarwal had to sell Vishal Mega Mart to Shriram Group and TPG Capital for just Rs 70 crore, whereas once it was worth Rs 2,000 crore.
Starting again and new success
Ramchandra Agarwal did not give up. He started a new business named V2 Retail, which has now become a group of more than Rs 6,500 crore with more than 150 stores. His story tells that no matter how difficult the situation is, every difficulty can be overcome with passion and hard work.
Ramchandra Agarwal not only defeated his physical weakness but also gave tough competition to giants like Ambani-Tata in the Indian retail industry. A wrong decision ruined the company he had built with his hard work, but he got up again and built a new empire – this is his real victory.