Learning Curve – Set the expectations

During my last 13 years in business another lesson I have learnt is to set the customers expectation. We invariably tend to over commit. As a small scale manufacture who is always trying to grow, I have at times over committed to the customer to please him. This only helps in stretching the problem for some time but increases the problem manifold. And leads to firefighting at our end always for every thing. It’s impossible to work in firefighting situation as while doing so you are making shortcuts and bypassing the system.

In 2004 one of the customers ( I am refraining from using the name) was doing a reverse auction for there Bit Blocks in two lots. One lot was annual around 1 million dollar business and the other lot was annual around 4 million dollars. As on that day we were not prepared for any of these. The smaller lot was almost equivalent to then capacity of LNM. This required development of 16 Bit Blocks in a span of 12 weeks. And an investment of more than Rs 30.0 lacs in development only within this time period. We were not making die blocks in house at that time. We started getting in touch with job shop people to make the dies for us and were shocked to see the crude way they were doing there job and the time they wanted. They wanted almost 4 weeks for each die and this would have been disaster for LNM as we would have taken almost a year to develop all these parts. That’s when we decided to use technology and invested in CAD Cam softwares and human resources. We bought couple of Vertical Machining Centers and started making the dies in house. It was always firefighting situation and with all efforts possible we were able to deliver the Bit Block samples in time. But only developing was not the solution. We needed machines, people and vendors to be successful in making these blocks. This also resulted in delays in supply to existing customers. The whole “working in system” concept for which we were proud off got a back seat during the process. This resulted in increase of customer complaints and customer dissatisfaction. It took us almost two years to come to the level where we should have been in 2004. To cut the story short I have learnt to be truthful to our capacity and it’s always better to under commit and over deliver than vice versa. Your under commitment keeps the customers expectation low and over commitment makes him comfortable about the supplier.

Learning Curve – Patience pays

Patience pays – Beginning of a relation

Till 1994 I was deeply involved with Rotaract and as the DRR of RI district 3290 was couldn’t give much time to work. 26^th May 1995 – I landed bag and baggage at Faridabad to run LNM Auto. It was a tough period. We had a small workshop in rented premises and few conventional machines. My family was there at Purulia and here I was all alone in a new city to chart out a career for myself. Dad and his friend Raman Daga initiated LNM Auto basically with more patriotism than anything else as the country needed dollars those days. The product with which we had started was Dust Hog (used in mines for roof bolting). Dust Hogs have carbide brazed to its one end and are provided with openings into which the dust or cuttings produced by the bit as the drill advances may enter. We had set up a small line of production for these dusthogs. Our first order was for 18000 nos to be shipped in two months.

I was totally new to manufacturing. I had no idea how to measure or use a measuring instrument or for that matter what a Lathe or milling machine is. I went to lot of people for things, ideas and processes for manufacturing and was taken for a ride by most of them. Anyway our production started and we made the first 18000 parts from this new line. Dust hog had 13 machining operations to be done in its 80 gm structure. We used drawn alloy steel. It took us more than four months to make these 18000 pcs . During final inspection our foreman at that time Mr. Vinod Sinha informed and told me that there were around 400 nos in these 18000 which were not in spec and there was a deviation in one dimension. I was new into business and manufacturing. I had no idea about products application. And I only understood that I will be loosing in this batch if I had to scrap these 400 dusthogs and also will be short of the 18000 pcs quantity. I thought who is going to find out find out about these 400 nos from 18000 and asked Mr. Sinha to ship these with the 18000. It was almost two months of guilt and fear till shipment reached USA and as was to happen got rejected. Raman Daga called up to inform that the lot has been rejected as some of the parts there in has one dimension wrong. The fear came true. There was a sense of relief also as the guilt and apprehension was now over. The first consignment for export from LNM has been rejected because of my shortsightedness.

It took me some time for the shock to sink in and then I called Raman Daga. Those days Govt of India guidelines were very strict with regards to foreign remittance coming within 6 months of export and money was not to come in for the rejected lot. I saw LNM being blacklisted by the Govt before it has started. I requested Mr. Daga to send in the payment for the same otherwise I will have problems a plenty with the banks and told him some time in future I will credit this back to him. He replied back – I am sending the money and don’t want a credit back from you. THIS IS MY INVESTMENT IN YOUR LEARNING PROCESS. Never find shortcuts in business or for that matter life. It hurts more than it pays.

I have never forgotten these words and basically they still echo within me. I appreciate the foresightedness of Mr. Daga for whom the simplest thing could have been to say: Sorry , you guys are not capable of handling things and we can’t work with you”. Today wherever LNM is, it is because of the patience and foresightedness of that day shown by Raman Daga.

This was an early lesson for me in career and business. LNM at 5 million USD revenue would not have been there had Raman Daga not had this vision.

TB TO LNM

At Purulia, we have been known as TB group. TB represents Thakurdas Badrinarain. Thakurdasji was my great grand father and Badrinarainji was my grand father. Since more than 130 years, our family was doing business under that name and was recognized for our honest dealing. We grew from nothing to most leading business concern of the locality. And at Faridabad, it is known as LNM group and within factory, we including all our staff and workers are self designated as LNM Pariwar. LNM represents my name as LAXMINARAIN MALL .When I thought of exploring business at Faridabad, our family priest suggested to do business in my name and he further advised that I must make myself available and attached to the business for its prosperity and success. Otherwise I was inclined to do all in Sandeep’s name.LNM group as it stands today is the result of many year’s struggle and was not built up over night Yes, I had dreamt of the project and initiated it also, but three key persons are instrumental to make it as it is today besides sincere contribution from staff and workers. Hence to know how it all got built up, I must focus light on these three persons and their contribution first.

When I joined business after graduation, we were into wholesale trading dealing in food grains, oil and oilseed, tobacco, yarn etc. It never gave me job satisfaction. I was always interested to create or manufacture something. But Purulia did not have necessary infrastructure or facilities for industrial growth. Under compulsion of situation, I continued in business .Our transition from trading to industry; shifting from Purulia to Faridabad and total transformation from TB to LNM owe a lot to following three persons.

SRI A C MAHESHWARI (JIJAJI)

The first and foremost person instrumental behind establishment of LNM group was my Jijaji. Yesterday I was present in the function organized to inaugurate his statue at the Holy Hope Foundation School. He was the founder chairman of the institution. It took me to the most refreshing and rewarding memories of my association and long contact with him. And today I have decided to put these memories into black and white in response to interest of some of my close staff who wanted to know all about how LNM got initiated.

When I was 6 years old, he became my jijaji by virtue of his marriage with my cousin didi. I have blurred memory of him as the groom arriving at Howrah station with his barat. I have hazy memory of his subsequent visit to Purulia also. He was about 13 years senior to me. My first close interaction with him began during my marriage in 1965. He was with us for 10 days during the ceremony. He came all the way from AMRITSAR and accompanied us to NAGPUR for the marriage. He was the first person to congratulate me on my selection when he saw us as couple there. He presented us a view master with some very interesting photographs and slides from KHAJURAHO and KONARK temples to start with our married life. That was the opening of our intimate relationship which flourished with time. Next year when I happened to be in MUSSOORIE, he drove all the way from AMRITSAR to take me along with. I was forced to stay with him for 10 days, not only to enjoy his friendly fellowship but to learn all about steel rolling mill industries with a mind to explore into it. He ignited the spark within me and offered all possible help. In spite of my zeal and efforts, I could not succeed. Neither I was matured enough nor was PURULIA suitable for industries. Four years later in 1969/70 when he decided to move to Faridabad, he initiated to apply for an industrial land for me along with his up coming plant. But I was not in a position to leave Purulia and he had to withdraw the application on my request with great disappointment. There after I used to visit him more frequently with his shifting to Delhi. That made us very close. I had great entertaining time with him in and around Delhi and to Kullu Manali etc with him. But his emphasis for me to come into some enterprising business was always there.

A congress convention was held at Calcutta sometime in 1987 perhaps. Jijaji along with Sri Bhajan lalji, the then chief minister of Haryana were there on the occasion. I too joined them at grand hotel. During conversation he narrated all about his efforts to bring me in to production line with nil result so far. Bhajanlalji could not believe that. Being pioneer of steel industry, he could have brought me easily in to any relevant industry. He took a commitment from me not to back track if one more effort be taken. I agreed to it and returned back to Purulia. In fact I did not take the conversation so rigidly.

To my amazement, after three or four months, one fine morning I found his representative coming all the way from Faridabad to Purulia with bunch of papers for me to sign with an instruction to send a sum of one lakh to start with. I had no opportunity to discuss the matter with babuji even. I had no alternative then to comply with the request. This is how it all began. He used to send the person with documents when ever necessary and I used to send fund as per his instructions. I had no idea about the project or the location of site where it was being installed to start with. Once I had to visit the site to take possession of the shed. Then only I could know how under developed and backward was the place known as ROZ KA MEO near Sohna in Haryana, about 60 kms from jijaji’s residence in Delhi. But I had full trust on his action and was ready to take over the challenge. Mean while Sandeep got engaged and was to be married on 30^th Nov 1989. We performed opening pooja of our unit on 12^th sept 1989. Shobha and Minoo as would -be -daughter in law attended the tiny ceremony with me. Some machines were installed; foreman and some staff were appointed. All this was done courtesy jijaji. Now it was my turn to run the plant. After Sandeep’s marriage, I took over the charge on and from 1^st January 1990. My idea to hand over it to Sandeep from the beginning had to be deferred as per jijaji’s advice. He wanted Minoo to be at PURULIA for sometime to get acquainted with our family culture and customs. He also wanted me to be in charge to face the initial struggle period over. So unwillingly I had to be at the helm of affairs of this business for five years though Sandeep used to come over there in between. It was jijaji’s moral and otherwise support that I could carry on there with all the inconvenience. It was his and only his company that made me to live so away from family. In spite of all odds, he wanted me to succeed. I took over in January and in July I reported to him that our plant was likely to earn some profit for the first time after incurring initial loss. He was so delighted that he celebrated this happy information with champagne in presence of my visiting friend Biren. The glow on his face made me determined never to let him down with his trust up on me. His efforts to build my business platform since last twenty five years seemed to be heading towards positive ending.

For the first year I stayed with him in Delhi around two weeks every month. Our factory was around sixty kms. I used to go to factory partially by auto and bus. It was a tough time and hard life but that made me love my plant more. Biscuit, banana and tea only were available as snacks or lunch. No suitable company was there to develop. My accepting the tough life made him confident of success and he provided all possible support to make me sustain my momentum. Unfortunately his business was on back foot since 1991 and could never recover in spite of his best efforts. But so far our unit was concerned, all possible and sometimes even out -of- way support was there from his side. After one year he managed to bring us in to a small flat very near to his factory to provide us his guidance and company at hand. He used to visit us and take lunch with us at times. We used to meet almost everyday for good amount of time. On week ends we used to be together in Delhi. We became known as made for each other. All his staff and family members were very particular to be admiring and respectful to me. He was my guardian, friend, councilor and what not. At short notice or need we used to visit each other even during odd times. We shared` all joy and worries of life during that period. From a rustic life in Purulia, he brought me to five star life style of Delhi. He taught me many lessons of live; from shaving, eating to meeting VIPs. He contributed a lot in shaping me and my surrounding in modern way but he always reminded me of my cultural and family root for which he had great respect. Today we are into export business by virtue of his support. He provided me the initial technical support to develop the first component to be exported. I was more intimate to him than even with my didi. Similarly he considered me more into his confidence than his brothers or sons. It was the shock of life to witness his rise and fall in business.

With his sad and sudden demise, an era was over. It all began with a moderate beginning at Amritsar. In due course his business got spread over to Ballabgarh, Hyderabad, Jaipur, Govindgarh, Indore. Many national awards were rewarded to the group by different government agencies. Within his own life he could achieve this and unfortunately rounded off too. He was a far sighted person. He could visualize the future of his business and family, of late. That is why he got one of his sons settled in Dubai. It was his vision that he could institute a well equipped school for didi to run and manage it. It was on his 2^nd death anniversary that his statue was installed there at the school campus. While going to our factory every day, we cross across his factory dail. It is painful to see the ruins. I have seen and enjoyed its glory with him for many years. I as well as Sandeep and all our family members who know his selfless contribution in building LNM AUTO will be ever grateful to him and will always cherish for his sweet memories. Even after death, he will remain a guiding and inspiring source to us.

RAMAN, my friend.

Good memories are the most precious of our treasures. Nurtured and caressed, they remain with us all our lives like favorite books. And to peep into the sweat memories of period spent and shared with friend is pleasant experience.

What LNM Auto is today, it owes to Raman a lot. We have been very closely associated since childhood. This association has instilled its mark at many important crossings in my life. We were class mates from class 4 to 11 in Rajasthan Vidyapith, a hindi medium school. He was the topper in class from very beginning and continued to be so, though he was never a very systematic student. His conception about any subject was very clear and distinct. That made him the first boy with vast difference in grades. I was never near him. During early years we were never good friends. He used to tease me and was never in my group of friends in school though we had family relations. Perhaps while in class 6, we had been to Sindri on an educational tour to see the fertilizer plant there. Thereafter we were not in that good terms for years, reason I don’t remember specifically. Gradually I improvised my result and was second to him in class ten. Then in matriculation board we both and only we both passed with first division from our school. Thereafter we came closer and became friends as ever. We both joined JK College with science stream. We used to go to same professor for tuition. We used to study together for hours in my home and he was very helpful to me in studies. But for some or other reason I could not come out with good result. He as usual passed with higher first division and I got second division. We decided to take admission at Ranchi or Chaibasa with Purulia having no good college for higher study. It was because of his company that my parents agreed to send me out of town for studies. We applied for admission into St. xavier’s college, Ranchi. My application was not to be considered for admission with second division marks though he canvassed for me very strongly before the principal. Next ay when we met the principal, he returned back our application forms with one accepted and one rejected. He had wrongfully rejected Raman’s application in place of mine. Raman did not allow him to rectify his mistake and pleaded so strongly for me that the principal had no choice but to accept us both to be admitted. Otherwise also, he had decided to be with me in any other college. We also took admission at Rajasthan Chhatrawas, about three miles away from college and thus became room partners in the hostel.

In August 1961, our session started. We could feel the difference between Purulia college and St. Xavier’s. It was a very rustic and small college at Purulia with only five rooms, two trees as the common room specified for boys and girls to stay during leisure periods, a small laboratory with one spirit lamp to work around and with no other facilities available though the teaching staff was good. On the other hand, St. Xavier’s was having a four storied building with more than fifty spacious and equipped rooms, laboratories, library and sports complex. It had three sessions going on in morning, day and evening in all three streams of arts, commerce and science with thousands of students around. In fact we felt to be lost in the vast see of students initially. We faced great difficulty in matching with the situation, to start with. I decided to switch over to commerce to enlighten the burden. And it was Raman’s good gesture to switch over to commerce only to be together without any other consideration. Well ultimately good sense prevailed and we continued with science. This way, Raman’s influence had been there up on my life since quite early. It was due to his persuasion and company that I was permitted by parents to go to hostel and was in St.xavier’s. Otherwise I would have missed the golden opportunity of being in such college and hostel. I was a home sick person. I used to visit Purulia every week end. That hampered regular studies. Usually he used to be with me to Purulia. But he could make up the lapses through his God gifted extra intelligence. In hostel also, he was like guardian cum friend to me. Our room number was 14 and it used to be one of the dirtiest rooms in the hostel. In fact, we used to sleep in one bed out of two provided with and other one used as store. Although no one from my family ever visited us, we never allowed any distant visitor to enter into our room. One of our classmates, a charming south Indian girl, was Laxmiraman and we together constitute the same name. So in college boys used to call our names at a time to draw her attention and to annoy her. She could ultimately understand the reason after having clarified the matter with us.

Following incidence will further reflect Raman’s impact on my education. Due to home sickness and frequent visit to Purulia I could not perform well in my first examination in spite of Raman’s help. I could not pass in one of the subjects. My preparation for the 2^nd term was good but I got very nervous on the eve of examination. I wanted to escape away. But Raman persuaded me to appear in examination by any means and helped me to obtain pass marks in the same subject. There after he took me to the college notice board where it was clearly notified for every student to clear all the papers at least in one of the terminals. I could continue my studies further because of his insistence only.

Thus the year ended. Raman passed with higher first division as usual and I was placed in 2^nd division. And reluctantly we had to depart. He got admitted into engineering and I had to continue with B.Sc at St. Xavier’s. He took admission into BIT,Ranchi but soon got transferred to BIT, Sindri about 150 kms from Ranchi. Though leaving apart, we kept our contact intact. We used to meet at Purulia during vacations. In addition he used to visit Ranchi in between. He joined our hostel sponsored trip to Rajgir, Telaiya, Pawapuri and Hazaribagh National Park. It was a three days trip with about 50 wards from our hostel. Our photograph taken in the ruins of Nalanda is on my office table still. Its memory is still very refreshing. We enjoyed at all the places.

In two years I completed my graduation when he was in the third year of engineering. We had an opportunity to visit Biratnagar in Nepal to attend one of our classmate’s marriage.. It was our first tour to any foreign country. We brought a lot of imported goods from there. Raman started importing stainless steel utensils from there. He was business minded from the very beginning. He had the urge to become self dependent even during student life.

In 1965, I got married when he was in the final year of engineering. 11^th May was my date of marriage and his final examination was to commence from 14^th May. I had doubt about him being present at the ceremony. But he made it. He accompanied the barat to Nagpur, attended main ceremony on 11^th, left for Purulia on 12^th, reached Sindri on 13^th and appeared in examination on and from 14^th and scored as ever with higher first division. He was exceptionally brilliant. Next year he completed engineering and decided to go to US for further study. He executed all his plans by himself .To start with his plan was to return back after MS. He suggested me to plan accordingly to be in US for a pleasure trip together. I was blessed with Sandeep on 23^rd July and he left for US on 4^th September perhaps. I was there to see him off at Calcutta airport. When he was to board on to the plane, he put the motherland’s soil on his fore head. . That brought tears in our eyes. He was leaving away initially for one year only. But he was destined to be there for good. He did M.S and then PHD and got settled there gradually.

He used to visit India frequently in quest for a suitable bride and ultimately engaged with Shashi bhabhi. We used to have good amount of time together when ever he be in India and in particular in Puruila. In addition we were in close contact through intermediate correspondence and sharing of our well being and developments at our ends very regularly. In 1972 he got married with Shashi Bhabhi at Jaipur. I was through out with him during the process of sermonizing the marriage ceremony from Purulia to Jaipur, which was enjoyed by all including his foreign friends. During that stay he informed about his plans to take an East West coast trip of US in next summer and he wanted me to join along with Shobha. So I started with its preparation. Meanwhile Shobha was conceived after seven years. It seemed that she would not be in a position to join the trip. Sangeet was to young to be taken with. Hence I had to go alone. Regarding US trip, I had mind to write about separately.

Thus our friendship and intimacy remained intact in spite of living so apart. In fact it developed into an ever lasting relation. When ever he used to come down to India, we had very good opportunities to renew our relation. He was gracious to attend Sandeep’s marriage in 1989 with full family. By that time he was blessed with Amit and Ritu. I had also laid foundation of our manufacturing business at Sohna during same period. It was a surprise information for him also.

During his next visit to India, I took him to our plant. I had a mind to develop some export business. Our country was facing foreign currency reserve crisis. With an honest idea to bring a little foreign currency to our country in need, I wanted to venture into it. We were in the process of moving to Faridabad and Raman being in US, situation was ideal for some export business. I took him to Sohna to see to believe that the process of our shifting had begun. I simply suggested him to identify some item to be manufactured at our end for export to US to bring some dollars to the national kitty even without making any profit. He accepted the proposal and provided with the drawing of dust hog for me to explore the possibility. He was not very hopeful to be competitive price wise with Taiwan. But we ventured into exploring with such noble cause.

Initially what appeared to be a simple job, it ended into a challenge. It took us three years or more to develop the component with unexpected good amount of investment. It was a testing time at both ends. Raman kept his patience in spite of early set backs and so did we. It was a great achievement for us along with technical staff of Partap steel,who helped us by all means when our samples were reported to be near approval. At that time I was at the helm of affairs as Sandeep was totally involved with Rotaract affairs at Purulia/Calcutta. The first consignment of 6000 numbers was exported as learning process to know various formalities and to establish the whole system of export. In between Raman visited us and was very supportive through out. His staff in US and even Shashi bhabhi was of little hope about our success, but Raman kept his hopes alive. Once first lot got approved, we decided to install specific machineries needed separately in a hired shed at Muzesar, Faridabad under the name and style of LNM AUTO INDUSTRIES PVT LTD exclusively to manufacture and export various components to Raman. But quality problem persisted. And for a while it took serious nature and Raman wanted desperately to stop production. I had to intervene with a request to keep in mind for always about Sandeep’s career in future. And there after he never came with any such negative idea in spite of all odds. On the contrary he wanted to join LNM as equal partner once we got shifted to sector 59 in 1997. I left the matter to be decided in between Sandeep and Raman. We discussed all the aspects and decided to make it a joint venture. It was Raman’s great gesture to consider the initial burden backlogged due to bad quality as the training investment on Sandeep.

Thus it all took shape and improvised on the path of success. The story of success under Sandeep with Raman’s full co operation is being left for Sandeep to focus some time conveniently.