It is no surprise that A.V. Birla group, one of the organized retail players in India, had to close down 39 retail stores in Gujarat. They may withdraw from remaining retail business in Gujarat. This withdrawal was forced upon Birlas as they could not compete with the gujrati businessmen, the real retailers in businesses. As Birlas entered retail business with take over of 170 stores in South India in the year 2007. They are not early birds in organized retail business in India. When they bought the Subhiksha chain in South India, the flame of their inner ambition was lit. With the ambition fired, they had little time to evaluate the business model developed by earlier Subhiksha chain. Hurriedly they set the target of starting thousand stores all over the country. Initially they began with Subhiksha model, the one that was rejected even in South India. Inclusion of Gujrat in expansion plan with the same model and fashion was, no doubt, a mistake. South Indian CEO obviously doesn’t know the Gujarat and gujratis. With such CEO, how Birla business house could succeed in Gujarat?
What I am surprised is how marwari business house chose to increase its retail stores business in Gujrat. The western Indian state of Gujrat is truly home land of self made business. The boys and girls are groomed to be sales persons and girls almost in every family. They even phoo phoo MBA courses: MBA atelay mool buddhino abhao ( MBA means lack of basic talent; they fanciful abbreviations of the letters MBA).
In marwari families like gujrati families, the business practices are taught to the boys and girls since childhood; however there is a slight difference. The thrust in Gujrati families is on salesmanship where as the thrust in marwari families is on account angle. Almost all the marwari boys and girls are groomed to be accountants since their childhood. Some may be cost accountant or auditors either! Most of the marwari business is run by young persons who enroll themselves for college education. While studying in colleges marwari boys (and recently girls too!) are handling petty works assigned by their parents who are in mid fifties. Off course, these boys have to work under the guidance and strict superintendence of their parents. No class room type lecturing or guru sermons either. The boys, if they make mistake, are seldom punished for the mistakes. The guidance mainly pertains to cost conciseness. Marwari boys can work out the funeral cost or can be entrusted to hire the wedding reception. If someone wants to buy the community hall including the current wedding reception, marwari boys are capable to do the valuation of that place including the reception its bridegroom , may start the bidding process within no time . The similar nature of job may take months to evaluate the business by established agencies!
On this back ground of such business environment in Gujarat and Maharashtra, it is surprising that A.V Birla Group Company started its retail stores in Gujrat. This decision is just like running a laundry business in a town where digambar sect of jains is dominating the township. The unclad digambar jain monks walk across the country to spread the spiritual message. They are most revered community in the country because they control the needs. Digambar monks themselves don’t require the laundry. The malls in Gujrat may prove as worthless as laundry for the monks
-Ramesh Zawar
Senior Journalist
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