Change of Wheels
Source: Business Outlook, Aug. 05, 2007

India is the last post of the dreaded
disease Polio. The debate on injectable versus oral polio
vaccines, however, endures. And in this crossfire, was caught
Pratap Dube, son of a tea planter, who took his first shot at
entrepreneurship in 1983. His company Multivac India
was to facilitate a vaccine unit - predominantly for oral - in
India. Everything had been sewn up; a Canadian collaboration
and a $7.5 million grant from the Swedish development agency,
SIDA following years of groundwork by Dube. Then, a change in
government put paid his plans in 1984 as the new
dispensation was in favour of injectables as the solution for
polio in India. Yet, Dube was hopeful and kept as it till
1988, when he finally realised he was chasing a
mirage. India, even today, imports polio vaccines.
This, he attributes to agencies like the WHO, UNICEF and a
cabal of multinationals. "It was a body blow to me," says
Dube. For the period - 1988 to 1991 - he almost hibernated. He
had to start all over again.
A New Day
Eventually, he invested a few lakhs in a
friend's unit manufacturing injection moulded dashboards. In
1995, he grabbed an opportunity to resurrect Multivac, albeit
in a new avatar, when car manufacturer Maruti Udyog sought an
Indian replacement for moulded roof liners, which were then
being imported. The plant was setup in Gurgaon, near Delhi, in
six months. Technical support came from a German partner. He
also managed to raise a loan of Rs. 4 crore from the Haryana
Financial Corporation.
Multivac is a pioneer in
moulded roofliners. Though they look simple, roofliners are
quite complex, for, the acoustic and thermostatic stability of
the car depends on them. Costing Rs. 1,100 each, his product
replaced expensive imports. "Maruti, over the years, could
have saved Rs. 10 crore," claims Dube. Yet there was a
constant pressure to reduce costs. In 1998, Maruti asked for a
16% price cut. Multivac has to marshal more investments -
another Rs. 5 crore - for, the cost cutting could be brought
about only if he made the foam, a crucial ingredient, himself.
Orders flowed. From a turnover of Rs. 5 crore in 1995, the
company peaked as Rs. 28 crore by 2000. "But we also made the
maximum losses that year," laments Dube. In 2005, he topped
all Maruti vendors in the ranking for quality and delivery.
However, around this time Maruti identified another vendor
with a Japanese link, and the tide turned. What prompted this
move is unclear, but Dube claims he was called on to help them
run their presses. "I saw what was coming," says Dube. He was
still getting orders, but for only end-of-lifecycle cars in
the Maruti stable. From three shifts he was down to single
shift but instead of showing the door to any of his 130
workers, Dube decided to try and break new ground - even as
sales dropped to Rs. 15 crore by 2005-06.
Turning Point
The sight of a government employee struggling
to work everyday on his manual tricycle used to haunt him.
Having time on his hands and skilled manpower to boot, Dube
turned towards motorised trikes and wheelchairs. The cost of
imported wheelchairs was prohibitive - between Rs. 75000 and
Rs. 7.5 Lakh. Dube and some of his engineers started
playing with wheelchairs designs. The challenge was to make a
low-cost model offering maximum access. Conventional motorised
chairs have three motors for directional movements. Could he
bring down the motors to one? Muslim Khan, an 8th standard
pass fabrication expert in his team cracked it. The front,
right side wheel of the chair was placed a wee bit ahead of
the other front wheel. "It is just a small quirk of the
front wheel that makes the wheelchair turn 360 degrees on a
single motor," points out Dube. This unique design got
Multivac an Indian as well as a European patent. And Muslim
Khan, as one of the inventors, is a joint holder of the
patent. The company now boasts of a range of wheelchairs -
from the basic active version for Rs. 5000 to the motorised
one for Rs. 25,000, perhaps the cheapest anywhere. Also, being
refined is a metal rod fitted with a motor and controls that
can be strapped on to a normal wheelchair. The government,
considering the wheelchair's societal impact, has waive4 all
taxes and duties. However, Dube would like to bring down
the price further to Rs. 20000 or thereabouts. This requires
economies of scale and a big marketing push, something he is
poor at. He is therefore in talks with the electric scooter
company, Ultra Motors lndia. The idea is to sell motorised,
battery - operated wheelchairs in Ultra's auto showrooms
across the country. And the State Bank of India has apparently
agreed to support the physically challenged people seeking
motorised wheelchairs. There are over 40 million
orthopaedically handicapped people in India. "My dream is to
ensure affordability and reach the maximum number of this
section of people," says Dube. Multivac has orders for 10,000
chairs. He is now looking at developing dual fuel wheelchairs
and trikes. As luck would have it, his auto business, too, is
now looking up, thanks to the green wave sloshing the US and
Europe. In Europe, especially in Germany, auto majors are
embracing environment-friendly recyclable parts. A German
company, R+S Technik is picking up a stake in Multivac. The
duo has readied a strategy to make auto door panels,
roofliners and other auto components with Mesta, a fibre from
the jute family available in India. In fact, Mahindra &
Mahindra's (M&M) multi utility vehicle Scorpio being
exported to the US will be fitted with Mesta panels soon. "Our
material passes the US side-impact tests, which plastics do
not," claims Dube. Multivac has already commenced supplies for
M&M's Bolero. In 2006-07, Multivac's turnover touched
Rs. 20 crore. West Asian markets are already buying his
roofliner panels. He hopes to be a Rs. 45 crore company by
2008-09. It seems innovation is what has made Dube
third-time lucky. But, will the charm help him scale up from
here? We will know as the wheel slowly turns.
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