Water, water everywhere

OUR BIG IDEA

Anand & Rajul Parikh

Anand & Rajul Parikh came up with the idea of a water purification company because they foresaw a huge business in water, which like oil could become a scarce resource.

They set up a small outfit to manufacture water filters using ultra-violet technology despite tough competition.

Today, turnover has crossed Rs 70 crore. Now they are looking at expanding the export business and reach in the domestic market as well.

Humble beginnings

Anand: My father migrated to Mumbai after marriage and started a textile trading company. I had a happychildhood, typical of small business families.

After my commerce degree I wanted to start something in the plastics business so I went to Chennai to pursue a technical course in plastics processing. However, I came back and realised that it didn't interest me much.

I worked for a few years with a chemical company.When I started, my salary was Rs 710 a month and when I quit to join the family business in 1983 it was about Rs 1,500. In 1996-97, Rajul and I came up with the idea of the water purification company. We borrowed Rs 50 lakh from the family and set up a small unit in Dadra with 20 people.

Rajul: My father was a professional in Indian Aluminium and despite perks, we were still a salaried class family and we grew up respecting limited budgets.

After completing my Economics degree from Elphinstone College, I worked with an organisation for a few years. Then domesticity followed and I got involved with the business only when we came up with the idea of setting up Ace Hygiene Private Limited.

Challenges galore

Anand: The market was the biggest challenge because we had to explain what Alfaa the brand was all about, how it differed from the major competition "" Eureka Forbes' product Aquaguard.

Even today we get asked the same set of questions "" who are you, what is Alfaa and how do you differ from your competitor? But that also keeps us on our toes and in many ways it helps because we start with a clean slate with most of our customers.

It gives us a chance to prove what we're capable of offering. It was a tough market then and even now. Also in terms of the product, we had to make sure that the technology was well adapted to Indian conditions. The technology we chose had no side effects whatsoever and was the most natural way to purify water.

Rajul: The biggest challenge was being pitted against such a big brand. Despite the quality of our product we didn't have the muscle to advertise and make our product known.

So every sale is a clincher. The challenge lies in the thrill, knowing that you are the underdog and still making a sale.

I remember going to Jamnagar to the Reliance plant when we were expecting a bulk order from them.

Due to some reasons I had reached later than expected and was made to wait, negotiations went on till the wee hours of the morning but I stuck to my guns to get the price we wanted. I remember feeling so elated when we signed on the dotted line.

Road ahead

Anand: We started at 10,000 units per annum when we started and now capacity is 60,000 units. The team size is roughly 165 today. Our products have undergone change in terms of design and features as well, and we have five models today.

Rajul: Exports are going to be our major growth thrust this year. We are looking at exporting to the SAARC countries and we have sent out samples to many players in the last four months.

Often I go out on the field with my marketing boys to see how they interact with customers, what customers say about our products and to gain feedback.

It helps keep us ahead in the game. To expand further in the domestic market we need to find good partners. Currently, the western region "" especially Maharashtra "" is our strongest market, but we are also present in Hyderabad, Bangalore, Delhi and Jaipur. This year we hope to add more regions to the list.