No Field is as Productive as Farming
When a farmer’s son who manufactured pumps that are useful for farming
decides to buck the trend, he creates a history. Dhirubhai Patel has set up
a chain of one-stop-solution outlets under the name Champion Agro Mall
that offers to famers under one roof a vast range of items from seeds to
bank loans. Dhirubhai has opened as many as 35 such stores across
Gujarat-Saurastra. He dared to think differently and consequently reaped a
rich harvest
By Parthiv Vora
A farmer hailing from village Jashapar based in district Jamkandorana in Rajkot
has preserved an old submersible pump for the past 20 years. Earlier, he would
use it, but now it has become part of his life.
What is so special about this pump?
Way back in 1992, when Saurastra was reeling under power shortage, voltage
fluctuations would damage pumps but the pump mentioned above endured the
vagaries of power shortage. The owner of the pump in question had had a good
crop. Those days the farmer had a bicycle, but he now possesses a car. The
farmer is convinced that the pump has been a lucky charm for him.
Even the original pump manufacturer wanted to buy this machine back at Rs
15000/- but the farmer declined the tempting offer saying that he would not part
with the pump even at a price of Rs 50000/The brand name of the pump is Champion and Dhirubhai Patel the manufacturer.
Today as many as 50000 farmers have joined hands with him and his company.
Champion is looked upon as the savior of the farmer and the credit for this goes
to Dhirubhai and his vision towards farming.
India is an agricultural country and nearly 60-70% people are directly or indirectly
associated with agriculture. But what is the current state of India’s agricultural
scenario? Farmers are committing suicide and they are denied reasonable price
for their produce. They say all sorts of negative things about farming such as ‘it is
no longer as lucrative’, ‘it is expensive’, ‘one should not go for agriculture’ and so
on and so forth.
But Dhirubhai thinks differently. He believes that there is no other field as
productive as agriculture. This may not sound convincing to farmers today but
Dhirubhai’s belief is backed by facts, as being a farmer’s son, he understands
farming.
Dhirubhai’s father Dhusabhai hailed from village Gundasara in Gondal district
near Rajkot. Dhirubhai claims that he knows the A to Z of farming. Though he no
longer does farming, he knows how farming should be done. He has not done
any course in agriculture and is a B Com from Rajkot and later got his MBA
degree from Mumbai.
An MBA would easily get a job, but Dhirubhai always aspired to go for industrial
sector. He worked for a while in a Mumbai-based pump shop. When he came to
Rajkot, there was a great demand for submersible pumps.
Says Dhirubhai, ‘we wanted to do something new in this field, but had no
experience. However, since we insisted on giving quality product to farmers, we
roped in those who had a 15-year experience and made them technical partners.
We started manufacturing Champion pumps and set up a company Magnetic
Electricals and got success. Those days power supply was erratic and lowvoltage
was rampant that burnt the farmers’ pumps. So we made pumps that
could function even under low voltage. We were successful and in five years the
production went up three times’.
Dhirubhai was happy but after a span of five years he did encounter some
hurdles. The business was on credit and some scheming dealers led Dhirubhai
to think: we must do something new
Dhirubhai says ‘by that time we had acquainted ourselves with various aspects of
farming and also had a firsthand knowledge of what problems farmers usually
experience’. For loans, farmers had to move from pillar to post, they do not easily
get quality seeds, manure and medicine and most importantly, they do not get
right guidance. This led Dhirubhai to think: farmers should get all these essential
things under one roof and this thought gave birth to the idea of Champion Agro
Limited.
Dhirubhai was still hovering between production problems and enthusiasm to do
something new. In the year 2000 he founded a new company for the new project.
A blueprint was prepared on what a one-stop-solution for farmers should be like.
And at Kotadasangadi, Champion Agro World was kick-started.
Dhirubhai says that in this Agro Mall, farmers get things from sickle to tractor.
Besides seeds, medicine, manure, they give farmers proper guidance on various
aspects of farming ranging from sowing to harvesting. In case of any farmers
joining them we carry out test of their lands. They are guided on what seedling to
use and which crop to go for and also give him tips on how to ensure optimum
production. Not only that, in case of tie-up with farmers, they would also ensure
buyback of their produce.
According to Dhirubhai, farmers’ produce is sent to market yard which incurs
transport charges and also commission charges to middleman. ‘We instead go to
their fields, weigh their produce there so they are benefited. Whoever has
entered into a tie up with us, they are advised by our agricultural experts who
visit them every fifteen days’.
Dhirubhai claims that in India it was he who pioneered the concept of Agro Mall
offering one-stop-solution to farmers. Several companies have malls but they
offer only limited range. At Agro Malls, farmers have choice as they get standard
products from various companies. It would therefore be a surprise if such malls
did not get success. According to Dhirubhai, in six months seven malls were
opened and in four years as many as 35 malls came into being. Dhirubhai has
set the target of 400 malls in Gujarat alone and now he is looking beyond
Gujarat.
Gujarat’s farmer is hard working and has a robust common sense and this
explains why Gujarat is ahead in cotton-peanut production. Dhirubhai too is a
farmer’s son but he is not dogmatic and this is why he is busy thinking something
new every time.
The company has also started contract farming. In Gujarat-Saurastra, cottonpeanuts
are favoured crops but Dhirubhai is focusing on diverting them to
modern horticulture farming. He has already started growing pomegranate. .
Dhirubhai says they have also got Baby corn farming started, which fetches the
farmers more money. ‘We are also prepared for organic farming but farmers are
not readily willing to go for it as of now. It takes three years to shift from
traditional farming to organic farming and it also calls for investment, but you start
getting returns in three years. You get better prices for organic produce’
Dhirubhai shares his observation.
Champion Agro has also started sale of Saurastra’s Kesar mangoes under a
brand name. Today mangoes are not grown systematically and this is harmful for
one’s health. But Champion has a plant and in its Ripening chamber, mangoes
are ripened scientifically, which helps retain its taste as well as its flavor.
Dhirubhai says, ‘we started selling in Rajkot and now there is a growing demand
in other cities as well. In South Gujarat likewise we obtain-ripen and sell
bananas. As much as 150 tones of bananas are sent to North India. We want to
set up a plant in North India. We will procure apples from there, process in our
plant and send it elsewhere.
Champion Agro is keen to give the farmers value addition of their produce. ‘We
want to not only give infrastructure but offer them value addition as well to the
farmers. Since peanuts are grown here, we will produce peanut butter and sell it.
There is a great demand outside for this product. If we offer ready-to-eat
products, there is a greater scope, provided it has quality.
They have put ready-to-eat products under the name Champion Fresh. The
company is ever willing to explore this field. Champion is also contemplating a
Greenhouse project and even the farmers are taking keen interest in it.
Dhirubhai says ‘now even young generation is taking interest in agriculture and
there is a growing awareness among the farmers. But I can state with certainty
that agriculture is one field where profit margin is quite substantial. Show me any
other business that gives you returns of Rs 30000 against investment of Rs
10000/-it is possible in agriculture. Yes, what are required are good crop, sowing,
nourishment, scientific attitude and technology. If you make a Greenhouse in one
acre, you get Rs 10-15 lacs annually, and there is not much of labour involved. I
will cite an example of a Kalavad youth who could have got a 50k job, but he
opted for Greenhouse instead.
It is high time to look at agriculture from a fresh perspective and Champion Agro
Chairman and managing director Dhirubhai and his younger brother Jitubhai
(company’s Joint Managing Director) are all too willing to take fresh initiatives.
Both brothers share a great understanding. While Dhirubhai conceptualizes and
prepares blueprints for his new project, the onus of its implementation is on his
brother Jitubhai. Jitubhai says ‘the opening year of Champion Agro was pretty
difficult and challenging. Farmers would not easily accept change though they
would never look back once they develop trust. The name Champion is quite
popular in Gujarat-Saurastra. And as such we do not have to do much
marketing’.
Jitubhai too knows farming. He says they have office in Shaper-Veraval and they
spend one hour every evening there and that is when they feel that the day
ended on a good note.
The horizons of Champion Agro are widening, as the company now wants to
create a model farm. They have asked the government to help them with a piece
of land. Both brothers say in unison that they want to create a model farm where
every farmer can come for guidance. They have also entered into a Rs 400 crore
MOU with the state government and their plan is to have an Agro mall in every
district.
Champion Agro is growing in size, as the turnover of Rs 325 crore in 2011 is
expected to touch Rs 400 crore this year. This is a source of inspiration for young
entrepreneurs. Dhirubhai advises the latter to think up something new. He says
there is a great deal of scope in agriculture. Do not think of profit and loss in the
beginning. Take a plunge, you will surely get success.
I get natural inspiration
*While studying in school, Dhirubhai had dreamt to be an industrialist. Being a
farmer’s son, he started with agriculture.
*He faced a lot many hurdles in the field of production of submersible pumps,
though Dhirubhai says he was absolutely confident from the word go, but his coworkers
did not share his confidence. I kept telling them that these are temporary
obstacles, let us move ahead. We went ahead and became successful. I clearly
believe that one must think up something new, something that is useful to
society, start with a scientific temperament and you will surely be successful.
*Dhirubhai says that his father who influenced him immensely was his role
model. He was a good farmer and I too did farming. Earlier we had 50 acres
land, today it is 1000 acres.
*He says he gets inspiration from Nature, from divine powers. I keep thinking
something new. This is God’s blessing. I do keep reading business related
books-magazines.
Dhirubhai Patel Unplugged
Dhirubhai and Jitubhai are fond of old Hindi film songs. They also love gazal and
Pankaj Udhdhas is their favourite gazal singer. Their favourite film actor is
Amitabh Bachchan.
Dhirubhai likes to visit places where he can see natural beauty. Especially he
loves Munar in South India. Jitubhai has been abroad several times, but in India
he loves Kulumanali.
Jitubhai is crazy for cars. His first car was fiat and since then he has changed 1214 cars. Presently he has a BMW. He goes to gym for workouts to keep himself
fit.
Both have austere taste for food. Kathiawadi food is their preferred meal.