The Success Story of True Entrepreneur,Inspiration,Social Worker- Mr. H.R. Gaikwad(BVG India Ltd.)
Mr.H R Gaikwad,
Chairman and Managing Director,
BVG India Limited.
Inspired by thoughts of the great thinker Swami Vivekananda and Chatrapati Shivaji Maharaj,The teenage engineering student set out in 1991 to contribute to India’s Progress (Bharat Vikas).
The 38-year-old Gaikwad’s success has more to it than a good business decision. His childhood in Pune had been a tough one: A chronically ill father had depleted the family savings and, on his father’s death, he was left scrounging for his fees in the third year of college. Unable to afford the Re. 1 bus fare to college on most days, he cycled 21 km each way.
Former colleagues remember Gaikwad as a man in a hurry. But until 1997, he — an engineer at the Pune Tata Motors plant for three years by then — had no idea he would get into the business of cleaning.
In 1997, a couple of events changed the course of his career.
Gaikwad and a colleague, Ganesh Limaye, saved the Tata Motors management Rs. 2 crore by suggesting ways to use old electric cables worth Rs. 2-3 crore that were simply going to waste at the plant. “At that time, no one would bother with old cables,” says Limaye, now in charge of BVG’s purchases. Gaikwad and Limaye studied the cables and realised they could be used for new car models after some modifications. This won Gaikwad instant recognition from his employers and this would help him in future deals and projects.
The second incident was when some people from Gaikwad’s native village in Satara, Maharashtra, approached him for jobs at Tata Motors. The plant management agreed to hire eight of them, but could not employ them on the company rolls. Gaikwad suggested that he could employ the people in a trust he had registered and Tata Motors could pay the trust. Given their confidence in him, Tata Motors not only accepted his suggestion but also helped him get Rs. 60 lakh in loan from Tata Finance to buy cleaning equipment.
By the time Gaikwad quit his Tata Motors job in 1999, he began formulating a vision for BVG: They would not refuse any job that guaranteed a reasonable rate of return; good and reliable labour would distinguish him from competitors; he would innovate and offer a larger array of
services to stay ahead of the pack.
The FMS business is one in which companies claim they’re locked in a race to the bottom. “With little to differentiate between firms, the one that quotes the lowest price bags the contract,” says Gorakh Nakwa, director, Dirt Busters India.
BVG got its first big break in 2001, when GE Power outsourced its cleaning. Gaikwad and eight workers drove overnight to Bangalore, arrived on a Saturday morning, and cleaned up the factory by Monday. Eight other contracts came in from Bangalore over the next few months, as did enquiries from Chennai and Hyderabad.
It was his work at the Mumbai Fiat plant in 2005, however, which showed that cleaning was not his only forte.
The Fiat plant was located in the flood-prone Mumbai suburb of Kurla and the company wanted to shift it to Ranjangaon near Pune. This was a new job for BVG. Gaikwad remembered that in 1998, Tata Motors had imported an old Nissan plant from Australia for manufacturing the Indica. He tracked down former Tata Motors employees, many of whom had retired, and put them to the task of dismantling the Fiat plant. Fixtures were neatly labelled and trucked to Ranjangaon, where they were reassembled.
Over the years, Gaikwad has realised it is fatal to compete on cost alone. While its competitors are locked in the cost-plus-10 percent margin game, BVG bids for projects on the basis of area.
“We believe the customer should only be concerned with the end result and not the cost per person,” says Umesh Mane, vice chairman, BVG.
Investing in technology and getting the best cleaning equipment helps reduce costs by 10 to 20 percent and provides a consistent standard of work. BVG was one of the first companies in India to invest in street sweeping trucks when it got a contract from the Pune Municipal Corporation.
The Next Stroke
Later on BVG diversified and expanded their business in the
- AGRICULTURAL PRODUCTS
BVG has dedicated team of 8-member housekeeping company to India’s Largest Integrated services company with 70000+ employees, serving 800+ sitesfor 750+ customers in 70 cities across 20 states across India.They are recently made an agreement with Bahrain related to Agricultural Products and Services,they are opening their office in UK.
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