Indo Rama group When the Lohias of the Rs 2,000-crore Indo Rama group decided to enter the grocery retail business, they handpicked Ravi Deol, the ex-CEO of the Barista coffee chain, to spearhead it.
Though the venture looked promising, a foolproof business plan remained elusive. So, the Lohias decided to can their plans and disband the Indo Rama Retail Holdings Ltd team. And out went Deol.
"Deol is no longer with us," the Lohias confirmed, though Deol insisted he was still working as a consultant with the group.
If the market buzz is to be believed, Deol is all set to sign up with a telephone services major.
Not too long ago, Barista, the pioneering homegrown coffee bar chain and Deol, its high-profile CEO, featured prominently in most B-school case studies on how to build a world class, indigenous retail brand.
For Kotler-worshipping business students, the imagery of a homegrown Starbucks and the Howard Schultz comparison that followed, was appealing.
Suddenly, Deol became the posterboy of Indian marketing. (Before Barista happened, Deol, an alumnus of St Stephen's and FMS, Delhi, had made his mark in Coca-Cola India, where he helped set up its vast distribution network.)
Even Deol's soundbytes to the media had the rich flavour of roasted coffee beans. When Deol, an avid golfer, was asked about his handicap, he would reply that it was somewhere between a cappuccino and a mocha (the cost of these brews at Barista was then Rs 20 and Rs 30, respectively).
A turnover of Rs 65 crore in three years, 130 company-owned outlets across the country, and an ambitious plan to roll out 25 overseas outlets in one year, made for some heady brew.
However, the rapid expansion was bleeding the company. The pricing was seen as too high. And the then promoter, Amit Judge of Turner Morrison, had serious differences with the management, according to former Barista managers. It was estimated that in 2002-03, Barista had run up a loss of Rs 12 crore on revenues of Rs 52 crore.
After his departure from Barista in June 2003, Deol led an uncharacteristically quiet life for almost a year. He had then said that he quit to pursue something close to his heart.
Deol's reputation as start-up specialist prompted the Lohias to engage him as a consultant for their national grocery retail venture.
While with Indo Rama, Deol stayed away from the media and ducked questions on the new venture. He could be spotted only in Gurgaon's golfing greens or in the last rows of the many retail 'summits' that take place in the Capital.
Yet, the venture got grounded even before it could take off. According to sources close to the development, the grocery retail plans never went beyond the drawing board as they involved huge investments.
Also, the diversification from being a textile intermediary to selling groceries to end customers seemed too big a step for Lohia.
Deol, whose record now includes a venture that got off to a rollicking start only to lose steam midway, and another that never took off, seems to be passing through a bad patch.
But, its too early to write him off. As a top Delhi-based headhunter says, "Barista's problems were not of Deol's making. Indo Rama may have been a bad choice, but one can't overlook his overall track record as a marketer."
