Drive Through Iceland 4: Fun Begins!

Map of Iceland

Map of Iceland

This is In continuation of earlier blog DTI 3 Understanding the Logistics……….

Rental for a car navigator was $140 for a week. Online reviews said that Simminn telecom’s SIM card would be reliable even on mountain tops, valleys and glaciers. So, I skipped the independent car navigator and purchased a SIM card with 1GB data and 500 free calls for US$ 25.  I fixed the SIM card in the extra phone I had. The label on the pack instructed me to send a message to the company to activate it.  I sent the SMS and the navigation started working for my first stop, Reykjavik, the capital city.

Equipped with car, guided by the sim navigation, snacks and provisions duly stacked up, everything was turning out as per plan. I am smart – I thought!

Reykjavik is popular for its night life and pubs.

Hallgrimska Church, Iceland

Hallgrimska Church, Iceland

Since, our focus was to explore the exceptional geographical sites, we skipped the entertainment events in the capital. Instead, we used our time to drive through the city roads.  We visited Church Hallgrímskirkja, also the tallest building in the city.This Church has fascinating shapes and forms.  The church features a mechanical pipe organ system standing at an 50 feet high and weighing all of 25 tons.  This is driven by 4 manuals and 5275 pipes, all designed to reproduce powerful notes capable of filling the huge and holy space with a range of tones.

Pipe organ in cathedral

Pipe organ in Cathedral

India, where even the remotest of roads have enough people strolling by eager to guide passers-by, the roads in this city were deserted. We did not know where we were, let alone know which direction to move towards. I grew restless for many a reason.

I had an idea! A solution seemed plausible. Though it might be expensive,  I could use my other phone which had my Indian SIM card.  I switched it on.  ‘No service’ it showed!  How silly of me! I forgot to activate international roaming for the card. Oh wait! My wife had her phone with an Indian SIM.   ‘No service’ either.   Obviously, even if it was her phone, it would not work without international roaming activated.  Every time I leave India, I get our phones activated for international roaming.  But I had missed on doing it this time! What a blunder. We were lost.

The fun had truly begun.

To be contd……………

Written : Badri Baldawa

Edited  : Meeta Kabra

Drive Through Iceland 3 : Understanding the Logistics

 

Hekla Ice Glacier, Iceland

Katla Ice Glacier, Iceland

This is in continuation of earlier Blog: 2 Preplanning………..

Food – How do vegetarians survive?
We are strict vegetarians.  Pushpa, my wife was on a month-long shraavan fast, when she has only one meal a day. Unsure of what we would get for lunch, it would be best to have a heavy breakfast before leaving the hotel.  With enough cereal, bread, nuts and/or fruits for breakfast, even a sandwich is usually adequate for lunch. If breakfast and lunch are taken care of, dinner would depend on the vegetarian options we had on the given day.

As soon as we arrived at the airport, we picked up some snacks, bread and juice from a super market located right at the airport and went for replenishment wherever we got an opportunity. Considering  vegetarians options would be few, this would be our emergency backup. Water was taken care of since Iceland has the purest possible tap water!

As it turned out on this trip, our attempts at restaurants were not encouraging since they carried a heavy non-vegetarian odour.  We ended up back in the hotel’s restaurant or have the packed food we had with us – theplas, fruits, chutney, pickles and yoghurt. Nishi was happy as she would invariably get pasta and ketchup or sauce – very much to her taste. The last day was a feast because we got nice Italian pizza!  In any case, it was understood amongst the three of us that the main focus of our trip was to enjoy Iceland.  Quality of food was more or less irrelevant.

Cash or Card?

Visa and Master Credit cards were accepted everywhere in Iceland, even in the smallest of shops at the most isolated places.  Though I carried some local currency, it was not really necessary

Shopping was in restricted range as everything in Iceland is very expensive.  Practically everything is imported.

Going places

Iceland’s public transport system, especially the mountain buses, can get you to more or less all the places you would like to visit. But, I wanted to drive myself.  Besides, self drive would surely be more convenient and save a lot of time. I hired a car right from Keflavik airport –  a 4-wheel drive version of the Nissan CX5.

Iceland is shaped like a human heart!   Ring route No.1, a highway, goes around the country’s circumference, along the coast.  Most tourists with 8-10 days at hand, take this well-surfaced highway.  But, Route 1 misses out on a lot of interesting, though difficult to reach sites located in the interiors.

In August, the day time lasts about 18 hours from 5 AM to 11PM.  My average daily plan included a 3-4 hour drive and 5-6 hours of sight-seeing.  The plan was to start after breakfast at 8-9 AM, finish by 4-6 PM and then relax the rest of the evening.  We had enough cushion for any breakdowns or emergencies.

Since we had a child with us, we restricted the driving time to just 3-4 hours a day. That was a mistake.  Nishi enjoyed every moment of the experience, be it food, drive or trek. The so-called child, Nishi, had more energy than both of us and she would be absolutely fresh for nana-masti or a pillow-fight at the end of the day.  Had I properly assessed her level of energy earlier, I would have included a few more interesting places in my itinerary!

Contd as DTI 4 – fun begins…………….

Written : Badri Baldawa

Edited  : Meeta Kabra

 

Drive Through Iceland 2: Pre-planning

This is in continuation of earlier Blog: DTI:1:Setup………….

The planning for the big trip began!  The research convinced me that an Iceland trip needed proper planning, even better than planning a trip to all available parks in Orlando.

As usual, I didn’t opt for package tours with travel agents.  I wanted to learn about the country on my own. Its geography, specialities and then plan the trip as per my interests. From the reviews and research, I noted each major and minor point that I should be careful about while travelling in Iceland.  This, not only saved my time and money, but I now also knew my options in case of an emergency.

I made a list of interesting places after looking up photos and information on each site.  The list was long. I flagged the selected places on Google map.  A rough estimate looked like I would need at least 15 days to cover it all.  However, 50% could be covered in 4 days, 75% in 8 days and about 85% 10-11 days.

I picked a balanced “8-days”. I would miss some waterfalls, glaciers and the like but would be able to visit similar features elsewhere in my trip.  To avoid criss-cross travelling,  I would have to stay at a different place on each of the 7 nights.

Hotels were few and far between.  And for sure, very expensive.  At best, there were 3-star hotels at some places.   Rooms with attached bath were about INR 25 to 40 thousand a night!  Guest houses were clean, comfortable and relatively economical at about 15 to 20 thousand Rupees per night.   Most of the hotels and guest houses on our route offered only “shared bath”.

While selecting accommodation, another thing I looked for was “rooms with breakfast included” as it would be difficult to get right breakfast on the roadside particularly when driving on highland remote roads.

We wanted attached bathrooms which were few in the first place, and the ones that existed were already booked.  Out of these, those with “breakfast included” narrowed down the availability further.

At an additional 10-15% Booking.com offered rooms with free cancellation.  I started booking whatever best was available on the day as per my planned route. At the same time, I made a list of better hotels in the area. Every day since then, I would check for fresh vacancies (due to any cancellations) and book better hotels when available.  I did this practically every day for over a month.

We would be staying in remote places on five out of seven nights. For these 5 places, I made 28 cancellations and re-bookings!  I had to, for better accommodation!  Every change meant a change in my route and itinerary. Finally, I froze the plan just a week before I left.

There were many local agencies that provided tour plans. But, I always enjoy the thrill of driving myself, on routes that interested me the most.   I realised I would not be able to reach some of the highlands, if I rented a 2-wheel drive. So, I went for a 4-wheel drive. Many local set-ups offered vehicles at much lower prices, but I wanted to go with a known brand in car rentals, so that the vehicles are reliable while driving on mountains, crossing rivers and passing through rough lava fields.  I selected Thrifty as that seemed the most popular amongst the International car rental agencies in Iceland.

I felt reasonably comfortable to take on the trip.

To be contd...

Written : Badri Baldawa

Edited  : Meeta Kabra

When Nargis and Indira Gandhi Rescued Me!

Way back in 1984, I had to visit Cyprus to negotiate some business deals. Cyprus was very competitive for import of products like detergent, edible oils, paper reams etc in bulk, repack them in consumer packs and export them to European and Middle Eastern countries. Most of the manufacturing units were located around Larnaca and Limassol, on its South Coast.

I had to stay there over a weekend.   I was alone.  All commercial offices were closed.  I had nothing to do.  On the Saturday, I hired a car from Hertz.   I went for a beautiful drive to the popular historical places over the south coastal stretch of about 150 km from Limassol to Pephos and back.

After my Saturday drive, I was relaxing in the Hotel lounge and was wondering what I’d do the next day.  Just then, I found a pamphlet in the hotel rack with details of a drive to Mountain Troodas.  The mountain base was at a distance of 45 km and thereafter a steep climb of 6,500 ft.  From the base, it was about a 10 km road to the top of the ice-capped mountain.  It was winter season and was snowing almost every day on the mountain.

Unfortunately the mountain was closed except to those who took it up by foot and had a skiing permit.

Immediately, I wanted to rent a car to drive to the top of mountain Troodas as far as I could.    The car tyres had to have snow chains.  The chains provide grip while driving on snow and keeps the car from skidding.   The car rental company informed me that driving on the mountain was not permitted during winter beyond 2-3km.  Only skiers with permits could climb during that season.  Hertz refused to rent a car to me.  I tried Avis and they refused too.

I wasn’t going to give up, of course.   I decided to drive as far as permitted even if I had to return from the first security gate.  For that distance, I presumed I didn’t need the tyre snow-chains.  I did not go to Hertz or Avis.  I went to a local car rental company and hired a car.  I did not ask for the snow-chains.

I kept the car at the hotel over the night and made an early start on Sunday.  It took me about 45 minutes to reach the base.  I started driving up.  After about 3km, I reached the security post and the gate was open!  There was no guard either.  Maybe, the security did not expect any vehicle to come at that hour in winter!

I had the option to wait there or return.  I had underestimated how cold it would be.  I was not appropriately equipped to face 0-5 deg temperature.  I had just one a formal coat, a jacket, thick socks, woolen gloves and formal leather shoes.  For me, a change from warm weather to snow was an excitement.

There appeared to be no restrictions to go up.  I decided to go further up.  The mountain was covered completely with snow .  There was a thin layer of fresh snow on the road.  It was just thin flakes initially to about a couple of inches or so as I went up.

Slowly and steadily I drove further about 3-4 kms when I heard a car sounding a horn behind me.  I could see it was a security jeep.  I could see in my rear view mirror that they were signaling me to take my vehicle slightly to the left so that they could overtake.  But the road was narrow and covered with snow.  I could not take the risk of giving them enough space to overtake me. Moreover, it was not safe to stop the vehicle on that skidding slope.  After about half a km, there was a spot created for overtaking, where the road was slightly wider and flat.  The security asked me to stop.  I took my car to the side and halted.

They interrogated me severely with several security-related questions.  There were three gentlemen in the jeep, one of them was wearing a military uniform.  They asked me to show the permit to drive up the mountain.  I told them that I was not aware of the need for a permit.

To the question if I hadn’t read the sign at the security gate, I said it was snowing and hence could not notice it.  They said I was silly to have come to that height in a small vehicle without any snow chain and on and on.

Troodas, Cyprus

The car heater was not effective. I told them that I would answer all their questions, but I was shivering and needed a warm place and a hot drink, before I collapse.    The chief security officer ordered me to leave my vehicle there and join him in his vehicle.  I was sure they would investigate further as we were moving further up.

He: Passport?

Me: In Hotel

He: Which country?

Me: India

His colleague busted loudly: “Aaah!  You, from Mother India Nargis and Indira Gandhi!  Joker Raj Kapoor!”  There was a broad smile on his face.  He grasped my hand and continued, “We are friends! We like India.  We love Indians”.

I let out a big sigh of relief, bigger than his smile!  What happened thereafter was very exciting.

After a drive of another half a kilometer, he took me to a small hall.   It was isolated.  There was no one there except a lady sweeping the floor.  It was a coffee shop for the skiers.  They would normally come after 11 am and it was not even 9 am.  My fingers were swollen to the size of my greater toe due to the cold.  There was a fireplace at the center of the restaurant which kept the room warm. Gradually, I stopped shivering.  The coffee house was not yet ready to serve hot beverages.

The Cypriot took me out to his jeep, poured a cup of hot coffee from his flask and said ‘warm up’.  He probably could see a broad smile on my face. As both of us finished our coffee, he asked, “Now what do you want to do?  Stay here for a while or go down right away”.

I said “Neither.  I want to go up. Up further”.  He said something in their local language to his colleague, probably telling him, “This is a mad guy”.  He said, “Even the vehicles with chains cannot go up.  Roads are covered with 3 to 4 feet of snow and in fact it is difficult to trace the road under the snow.   My colleague will take you back to your car” and he left me with him to attend to something else.

I thanked him and asked the person with me, “Are you from security too?”

He: “No, I am the engineer in charge. I maintain the cable line and the satellite tower at the top of the Troodas mountain”.

I asked him, “If there is a problem with the cables at a higher level right now, how would you go?”

He: I have a special 4-wheel drive vehicle.  A dumper truck with snowplows clears the road and my vehicle follows it.   It is a slow process and takes hours to clear even one kilometer.”

Me: “Then I will sit in your vehicle and go with you.  If you can please take me up!”

He gave a friendly stare at me. I reminded him, “Nargeesh, Indeeraa Gyandhi”.  He started laughing and said. “Ok. The mountain peak is about 3 kilometers from here.  I think in this weather, I would be able to take you up about 1.5km.”  “Thank you” I said.

He made a couple of calls, called for the dumper to clear the snow.  It was like a bulldozer.  Within 30 minutes, the bulldozer started clearing the road and our vehicle followed.  After a couple of hours and climb of about one and a half km,

He: “Now we should go back”.

Me: “No, we should go further up”.

He: “How far?”

Me: “Right till the satellite tower”

He stared at me and said, “Nargeesh, Indeeraa Gyandhi.  Ok my friend we will go up, risky though”.  It was snowing and we continued.  After about two more hours I reached the top of Troodas mountain, the top of Cyprus.   There was a small one-room structure with some sophisticated machines and a tall tower at the peak. I walked, jumped and slided for about half an hour.

Cyprus Mountain

Dumper Clearing snow ahead of our car

When we started returning, the cleared road now had a thick layer of fresh snow.   The dumper ahead cleared the way and we returned to the spot where I left my little car.  It did not take long to return.  By then, it was already around 4pm.   We had a coffee at the coffee house and then he escorted me to the car.  I reversed the direction of the car to return.  “A lazy day converted to a complete thrill!”

When I was about to leave in my car bidding him good bye, my Cypriot friend said, “remember 3 things.

  • One, engage your car in 2nd gear and do not change the gear till you reach the base.

  • Two, do not apply brake when your car is on snow.

  • Three and most important, you will not go up again now.

Nargeesh, Indeeraa Gyandhi”

It is over 30 years, I still follow these lessons while driving down on slopes.  I am sure this will help when I drive in Iceland next fortnight!

Experienced and Written By: Badri Baldawa

Edited By : Meeta Kabra

Trust or Written Agreements ?

There were many suppliers of stainless steel glasses from India. In my first deal, since I had taken the samples from Mr. Vishnu Goyal, it was ethical on my part, to buy the products from him.

After executing  my first order of $84,000, I felt that I had scope to expand in this business of stainless steel housewares and was worth a try in this range of product whole-heartedly.   If I made sure of maintaining quality and price, it wouldn’t be difficult to take a lead in the Middle East in this trade.

In my initial deals, I found Vishnuji very trust worthy, honest and sweetly cooperative. When I brought up the idea of making stainless steel housewares products as a regular export range, he consented to be associated with me.

Normally the next step would be to sign a partnership agreement defining the business relationship between us.  But I wanted to try non-conventional method.   In many cases, misunderstandings come up because of interpretation of what was written in documents. These disputes start, extends to legal battles and aggravate to a level where the business cripples down to closure.  But if nothing is written, both the parties had to be reasonable and not greedy. Knowing that nothing has been written down, they figure out a practical solution together.

Yes, doing business without written agreements is dangerous.  The written agreements could be restricted to where there is slightest doubt on trust or if the Law  needs it.

This was one of the experiments I wanted to try in my business. We trusted each other and hence suggested Vishnuji that we would have an understanding and avoid a written agreement.  Both of us agreed willingly. We mutually understood our roles, financial arrangements and the nature of decisions each of us would take independently and those which needed joint decisions.

We were ambitious but not greedy.  Both of us believed “if I am destined to get something, it is bound to come? If it is not destined for me, how will I get at all?”.  It is now over 25 years since that arrangement. There isn’t a single word in writing till today. We have executed many multi crore value orders over the years. Touch wood, there have been no disputes. Of course, there have been differences of opinions very few and far between, for the good health of the organisation. When such differences come up, we have a lot of respect for each other’s opinion.

When friends in business ask me  what is your relation with Vishnuji in business,  I start thinking and I don’t get an answer even to myself.

We were able to maintain peaceful atmosphere between us. If Trust works, Peace prevails. And Peace brings better Prosperity.

Written Agreements can go wrong, but Trust always Cherish!

Experienced and Written: Badri Baldawa

Edited By : Meeta Kabra

Best Marketing Guru

“Look, shops open at 9 in the morning and it’s fine if we leave for airport at 10 to catch the scheduled flight tomorrow.  We have that one hour.  Let us try to meet some buyers”. I had a quick talk with my agent in Riyadh late in the night.

I was on one of my business visits to Saudi Arabia in 1988.  As usual my trip was very hectic trying to book orders for my normal product range. I was to return to India the next day morning.  At night while I packed, I realised I had samples of a new product, stainless steel glasses, which I had forgotten to explore till then on that trip.

The agent said, “Normally 9am is the time when the shop owners (importers) discuss the previous day’s progress with their salesmen and make their marketing plans for the day. It is too early in the morning for them to discuss purchases.  We could pursue that business on your next trip.”

I said, ” never mind, if we are able to meet one or two buyers, we will get an idea about that line of business.  No harm. Atleast we will get prepared better for the next trip”.   He agreed “Ok, let us take a chance”

We left in time to catch as many importers as possible.  The first one was not prepared to discuss purchases at that time, as expected.

We went to the second Saudi buyer.  He was busy cleaning and setting his table right, and on our offering the stainless steel glasses, he very casually asked,

He: What price?

Me: 72gms a piece, 7.5 cm dia, 2dz to inner and 12 inners/ctn, non-magnetic stainless steel, 90 days L/C though we may ship in 60 days, $3.75 a dozen

He was still busy cleaning his table, duster in his hand.  He said casually, not even looking at us, “$3.50”

Me: No, 3.50 is slightly below my cost.  Can’t go below $3.75.

He said firmly: $ 3.50…. pause..….. I could have started with $3.00 and you would have given at $3.50.   But I don’t waste time.  You are the first one I am seeing this morning, hence don’t want to disappoint you nor get disappointed.  If no $3.50, then no interest”

Me: Quantity?

He: One container.

I was expecting the first order to be around 5,000 dz.  One container equaled 24,000 doz.  For this quantity, I would save some freight and other expenses and my cost would be around $3.50.

Me: Fine. Accepted. We want to start business with you so that you can test our quality of product and services!

He: Proforma banao. Usme Bank details mauzood.  Bank L/C details bukra mazboothan. (Make the proforma with your bank details, I’ll arrange and advise you the Letter of Credit details by tomorrow).

I prepared a proforma invoice for US$.84,000.  He signed and said in Urdu-Arabic to mean, “Without knowing you, I have placed an order because somehow I felt you are genuine.  But make sure you surely dispatch and ship right quality.  Don’t let down my judgment”

We concluded the deal and I left for the airport.

By the time I reached Mumbai, the cost of raw material had reduced by about 2%.  By the time I exported the goods, the exchange rate went 6% in my favour.  By the time I completed the order, I had made a decent saving of about 10%.  The value per container was high and the profit margin for this product ultimately turned out to be quite satisfactory.  I was tempted to expand my product range to stainless steel housewares!

After executing the order, when I met the same customer on my next visit, I was curious to know what made him place the order with me without knowing of me.  His reasons were interesting.

He said something to the effect that, “We have 3 major problems when we place orders with exporters from India.

One, they normally give a price and sometimes show a sample.  Intentionally, they do not give full details of the products unless we specifically ask for each of the details.  They try to keep an escape route ready for them.  In case, later, if the cost goes up, they compromise on the details missed out, and give an inferior, smaller or cheaper product.

Two, when we tie them down in the L/C with all specifications, in many cases they opt not to ship at all when the cost goes up.

Three, when the price increases, they divert the order to our competitors at a higher price. They might supply to us later when they have excess stocks.   Sometimes they even fail to supply which is a double loss to us as we lose our customers to the competitor to whom they supplied products meant for us.

But in your case, while quoting the price, on your own, you gave all the details of weight, size, packing, grade, delivery and price which I needed, without my asking for it.  This built my confidence that you are honest.  So, I took a chance and placed the order with you!”

I was completely got carried away by his reasons!  It enlightened me “If I could take care of these worries of the customers, it would make a difference to my business”.  I made these as guide lines.  Never did I compromise in quality.  Never did I fail to supply.  Never did I tried to take advantage of the situation.  It worked.   It gave satisfaction to both, me and my customers.  Within 2-3 years, we had around 60% of the Saudi Arabian market in stainless steel housewares!

I thank the customer, who was my best Marketing Guru

Experienced and Written By: Badri Baldawa

Edited By : Meeta Kabra

Every Activity Has Inbuilt Opportunity – Explore !

“Badri, we need stainless steel utensils in bulk for Bellary’s Ganesh Temple. They are produced and marketed in Bombay. If I come to Bombay, can we get reliable quality at competitive prices?” This was a call I received in 1988 from my cousin, Bhagwandas who stayed in Bellary, my home town. I had moved out of Bellary twenty-three years before that.  We were all very active in maintaining our town temple and celebrating traditional functions at the temple.

The stainless steel dining and serving dishes were required on dinners organized during festivals.  The temple’s hall was also rented out for wedding and other functions. Having dinner sets ready for such occasions would attract more people to have their family celebrations at the temple, thereby increasing the funds available for the upkeep of the temple.

“It would be a pleasure.  Though I don’t know anyone in the stainless steel trade, I will get some contacts by the time you come next week,” I said.

At this time, I was settled in Mumbai and running a business in exports.  We were merchant exporters, mainly dealing with spices and imitation jewelry.  Dubai and Saudi Arabia were our main markets then.

I contacted a neighbour who I knew was in the steel business.  It turned out that he was dealing in steel products used in the construction industry and not in houseware.  But he introduced me to Mr. Vishnu Goyal (Goyalji), who was a manufacturer of stainless steel glasses and had his wholesale outlet at C P Tank in Mumbai.

I visited Goyalji with my cousin.  Since the products were for a temple, he volunteered to supply his products at cost and to arrange for other items from reliable sources at a competitive price.  In no time, he arranged for everything.  In fact, while I was discussing how to pack and dispatch the utensils to Bellary, he overheard the conversation and asked me to give him the address. He’d get them packed properly to avoid damage in transit and send them over.

We were relaxed and happy with the purchase.  It went out smoothly and was quick too! It was a time to celebrate!  We were offered biscuits and tea. As the trend prevails in the market, it was just half of a tiniest cup!  We had to ask for more!  Tea and biscuits go well with small talk and we had a casual chat.

He: Baldawaji, what do you do?

Me: I am a Chartered Accountant, but I don’t practice.  I am in export business.

He: Oh, Bahut Achhaa! Where do you export?

Me: Middle East – UAE and Saudi

He: Are Wah!  Even steel glasses are exported in large quantities.  Why not try?

Me: Goyalji, it is not in my range of products; but I will let you know if it interests me.

When we were about to leave, Goyalji gave me six glasses with specs and said, “These are the ones which were being exported there.  Please keep them with you in case you decide to carry these as samples on your next overseas visit.  Price is xx per kg.”  I accepted the glasses, hesitatingly, as he was giving them free of cost.

I had a suitcase in the office to collect samples of new exportable products as and when I got them.  I worked the pricing on a cost sheet and dropped those glasses in the suitcase.   Later this business developed to the extent that we had almost 60% of Saudi Arabian market.  An opportunity sent by Lord Ganesha, when explored, proved to be one of the Turning points in my career.

Lesson learnt:  Every activity has inbuilt opportunities.  Look for them and Explore!

Experienced and Written By: Badri Baldawa

Edited By : Meeta Kabra

Business With Strangers:

“We are large importers in Sultanate of Oman and have an procurement office in Mumbai. We know you export spices to the Middle East. We have substantial orders on hand. If you pay a 10% commission to our Mumbai indenting office, we can place these orders with you.” A welcome call from a unknown prospective customer Harish Gupta on a Thursday morning!

Me: “It is too high a commission”
He: “You can cover the cost in your product rates and we will still get you the order.”
Me: “Who will guarantee payments?”
He: “This is for supplies to the Oman palace. You will be covered with a confirmed L/C (an export document that carries guarantee). If you are interested, please send us a Proforma Invoice for all the products you have, for the trial order.”

I was certainly interested. I sent the Proforma on Thursday evening and got a call from one Mr. Harish Gupta on Friday morning stating that it is their normal practice to visit the supplier’s office before placing the order. Mr. Gupta, visited us the same day. Since, he came in hurry, he said he forgot to get his visiting card.

Friday evening kept me happy as I received an order for US$ 85,000 from a new customer. Gupta called me on Friday evening to say: “Even though your prices are high, we will confirm the order to test your services. Before we establish L/C on Monday, Sethji, our boss, would like you to meet him.”

Saturday morning, I was at their office in a building opposite Jaslok Hospital, Peddar Road, Bombay. The front room was a large, dim and dark hall of almost 20 feet by 30 feet. It had a well-used sofa in one corner and a table and chair for the receptionist, at the other end. Nothing else. Dirty walls and confusing, uncleaned balconies. The moment I entered, the main entrance door was closed and quietly locked. I handed over my business card to the receptionist and asked for a card of the boss. I was told that the cards are with the boss himself. I was told that the name of their boss is Mr. Rajesh Agarwal. Until then, it was a secret.

After about 10 minutes, Mr. Gupta took me to Mr. Agarwal’s room which was a decent executive office. The room also had a relaxing chair for boss to stretch and relax. Mr. Gupta mentioned that Mr. Agarwal is delayed at the Mahalaxmi Race course and would be at the office in a few minutes. He also mentioned that the boss was crazy about horse-race betting. Anyway, delays have to be tolerated when one approaches customers!

While I was waiting, a dhoti cladded decent middle-aged gentleman came in to offer daily prayers with agarbattis (essence sticks) to the deity photo in the office. After his prayers, he introduced himself as Abhishek Pandit, sat next to me, and started gossiping. Within minutes he got pretty friendly and gave me a lot of information about the boss. Boss had a lot of investments in real estate and luxury farm houses and he shuttled between the properties in his own chopper. He was cash rich by hundreds of crores. Most of this he had accumulated from betting in horse races and Mr. Abhishek was the retainer for the boss and helped him win.

He said he was not referring to the horse races which are played in the racecourses but which could be played in any room. He took out 6 symbolic horses in the form of conches and 52 sea-shells. He kept the horses in one line and told me to select any one. He played a few games and challenged me that the way he played the game, the horse that he desired, won, not even 1% chance of failure. He went on to explain how he played this game. Mathematically, I was convinced, that there were no chance of going wrong.

Then came the secret of secrets from Abhishek Pandit, “In fact, boss doesn’t even know how this game is played. He makes a lot of money because of me and I just get a token monthly retainership fee. I don’t know why, I feel you can be trusted. I suggest you play against boss, the Sethji. Of course, I will play on Boss’ behalf, I’ll allow you to win and we can share the amount you win. Even if he loses a Crore, It wouldn’t bother the boss, it is insignificant for him. You contribute Rs.10 lakhs which I guarantee, you will not lose and we can earn about a Crore and share the loot.”

I teased myself. “Look at my good luck, I came to get an export contract and I am being lead to gain Crores effortlessly!”

The moment I entered the office, it all sounded fishy. I could have tried to return, but I smelt it might not be a safe move.   The door was closed and any attempt to get out may invite huge risk.  They might hold me back as hostage for ransom. If they were convinced that I knew it was a trap, they might want to get rid of me forever instead of allowing me to leave and complain to the intelligence authorities. Yet, I felt this could be my negative way of thinking and they could as well be genuine businessmen. But one thing was sure, I had to be careful.

I realised the safest thing for me was to stay calm and try to be deceptively genuine in my moves. I told Abhishek, “Look, we are strangers to each other. I cannot take full risk. Though I have no problem in putting in full stake, it is fair that if you share profits, you should also share investment. You bring in 5 and I’ll put in 5. I assure you I will never disclose this deal to the boss.” He hesitatingly agreed.

Abhishek explained, “I have never done this type of cheating with my boss earlier. To get his confidence, we should initially lose a couple of games with small stakes. Once he wins a couple of times, he will go for bigger stakes and then we can have our kill.”

Just then, the boss arrived, holding a mini suitcase like briefcase. My friend Abhishek whispered to me, “we will speak about this later” and walked out.   In fact he said he was waiting for Sethji and when the Sethji arrived, he walked out!

Mr. Gupta, the guy who visited our place came in and introduced me to the Boss. While making himself comfortable to sit, boss told me “I am not feeling well. I have that damn BP problem. I have already called the doctor and he should be reaching any moment. Give me 5 minutes till the doctor is done.”

The boss pressed the call bell and asked the guy “call Vermaji” (guess, their accountant). Just then, the doctor entered, Boss lied down on the relaxing chair and started checking his blood pressure. Just then the accountant came in. Boss says, “the bag has 12 ‘peti’ (12 lacs). Keep it in the safe.” Verma asks what he should do with the 30 ‘peti’ he has received from the other guy. Sethji told him to keep that amount also in the safe and that a payment of 1 ‘khoka’ (1 crore) had to be made on Monday towards some real estate he had purchased.

At this stage, Verma picked up the briefcase and put it on the table very close to me. He opened it in such a way that I could see the currency and then took it away.

I wondered, “Would I expose cash in the presence of strangers?” No. I got the answer for my doubts. A reel of observations flowed. No visiting card so far, deserted office, intentional showing of cash, sequence of entry and exits of people and above all, this bait of 100% win to a stranger by cheating one’s own Boss. I was now convinced, that it was a trap. Export business was just an excuse to get me in to that place.

If I try to walk out or protest, they would not allow me to go out and would most likely harm me. I had to be extremely careful in my moves. Now, surely, my primary aim had to be to get out of that place convincingly.

Since the Boss was not well, he had to leave. He ordered tea for me and requested that I have the tea. By then, Abhishek, the retainer for playing games, entered. He said, “We are lucky, inspite of his not keeping well, Boss has agreed to play the horse race game. Before boss changes his mind, we should play with him, preferably today itself.”

My strategy was to get out of the place convincingly. I replied, “why not, let us play today itself. Such opportunities are rare. I wish I had known this earlier, I could have brought cash with me.” He proposed that let us make a start with whatever money I had with me at that time. I said it is my nature that I don’t I carry money with me except where necessary.

He said, “I can send someone to your place to get the money for you while you can relax here.”

I told him that I don’t keep 5 lakhs at home. I would have to withdraw from the bank. In the meanwhile, I proposed to him to contribute on my behalf and deduct it from my share of the win.

He said in a filmy style “I am a man of principles. In betting partnerships, it does not work that way. Everyone has to put in his stake. It’s okay, if you don’t have 5 lakhs, we can start with 2 lakhs each.”

I said, “I don’t have even 2 lakhs at home. I have no problems getting even 5 lakhs, but I have to withdraw from the bank. Unfortunately, today is Saturday, the Banks are already closed. Why don’t you fix Monday morning for a game.”

He: “okay, 11 in the morning?”

Me: “No. No. Why not earlier, at 10? Banks in suburbs open at 8.30 and I can reach here by 10. I am quite excited. I don’t want to delay any more than necessary.”

He: “Fine. We will play a major game on Monday. But why not start today evening with one lakh?”

Me: “That is possible. I may not have one lakh ready, but I can accumulate from my wife and friends. It is a good idea to play today; else I may not be able to control my excitement during the weekend. I will revert by 5 in the evening and you get this confirmed with your boss.”

He spoke to the boss in my presence over phone and meeting at 5pm was fixed.

As I was leaving, I asked him to check with Guptaji, when I was to expect the L/C, so that I could start working on the order. He said, “Don’t worry, Guptaji already told me. We will get that formality done next week. For you, earning from that order is negligible compared to what we are planning together.”

On my way out of the premises, I was nervous about what might happen till I reach home. For the time being, it looked like I had a temporary lease of life. They looked really dangerous. Every well-built person passing by was looking like a spy following me!

I was pale when I reached home. I narrated the entire episode to my wife. She was worried too. Right at 5 pm, I got a call from Abhishek that they were waiting for me. I said, unfortunately, I could not accumulate 1 lakh. He asked if I had at least accumulated 50,000. I hadn’t. But I promised we could certainly meet on Monday with full 5 lakhs as my stake.

My biggest worry was that they had already marked my home. On Monday, I got the dreaded call. I said, “Look, I was feeling humiliated and that’s why I told you that I have adequate funds. In fact, I am starving for funds. I do not have any balance in the bank to withdraw cash. I was expecting the bank to sanction me a temporary loan on Monday. But they did not oblige.”

I answered their calls for next 5-6 days, each time giving them similar story – that the bank would probably approve the loan the next day. I even told them that, it would be easier for me to get a loan if I had the L/C for their order!

After a week, I told them that my loan application was rejected and hence have no funds. I did not go there. Right or wrong, I did not lodge an official complaint about them.

I have been waiting for almost 3 decades and the L/C for that order is yet to come!

I did mention this incident to people I knew, so that they wouldn’t fall prey to such calls. When I narrated this incident to one of my close friends at Napean Sea Road. He said “You are saved. Once they mark you and your place, be careful. One of my other friends had the same experience with similar guys, but at a different location, a month ago. They snatched his money. My friend complained to the relevant authorities. He was asked to lodge an official complaint the next day and was kidnapped the same night. I have not heard from him since.”

I decided, I would be more careful before I do business with strangers and extra careful, if I had to visit them.

Experienced and Written By: Badri Baldawa

Edited By : Meeta Kabra

Support, But Do Not Spoil

Just like I was  looking for moral and financial support when I started my career, many youngsters need support from people who are established. I have been an active participant in trying to provide similar assistance and support, to the best of my means and limitations, for the last 20 years.  It is a pleasure to share a couple of experiences I learnt out of my experiences on matters of financial assistance.

Majority of the people who seek help come with genuine repayment plans and fulfill their commitments on time.  It is always a pleasure extending support to persons with such an attitude. If the loan is for commercial purposes, there is nothing wrong for the lender to have a fair return, as the objective of the loan was to earn money.

If the loan is for an essential nature, I consider providing assistance ‘free of interest’ as getting them out of the financial strain is an adequate satisfaction.  But the borrower should realise that the lender has given the help depriving himself of the earnings that he otherwise would earn on that amount.

However, I have experienced that this ‘interest free’ tag has a  negative effect.   In such cases, the borrower instead of being grateful for receiving concessions, unfortunately, feels that it was his ‘right’ to have received that assistance.  In certain cases it was taken for granted as a gift.  Besides the borrower conveniently takes the repayment of interest-free loan as a last priority, as it doesn’t cost him to delay the repayments.  In most of the cases, the borrower avoids talking to lender as he considers it is the duty of the lender to ask for money.  In some cases, because of the relationship in question, the lender does not talk about it, converting “good money” to “bad money”.

Who is responsible for this?  The borrower?  No. My experience says, it is the me the lender’s fault, for very many reasons.

  • First of all, the loan given was emotion-based and not merit based
  • Secondly,  I mis-judged the borrower, in his attitude
  • Thirdly, I reduced the value of money, by giving the loan interest free
  • Fourthly, if the loan was given for non-essential purposes, I helped the borrower in  investing the funds for non-productive purposes.

Thus I was the one who spoiled them.  I could have been wiser in taking the borrower in confidence by explaining that I value my relationship with him and wish to avoid misunderstandings in future citing Shakespeare, “neither a lender nor a borrower be.”

Had I said a firm “No” and avoided getting emotional, I could have saved them and their deterioration in quality of attitude.  Above all I could have retained my relations with them!

Written: Badri Baldawa

Edited: Meeta Kabra

Expanding Business? Take care !

Expanding Business?  Take care

Expanding a medium size business needs to take care of certain tricky problems like expanding business vs infra-structure for increased activities and safety of capital already earned.    .

Any business is run to make money, of course, in a fair way.  Once a business starts earning money, the owner wants to make more money!  He realises soon that expansion or diversification of activities are the solutions. This invariably needs infrastructure which in turn needs further investment.

Expansion of activities also means a bigger uncertainty in revenues. Any unnecessary investments in infrastructure might eat up on the profits and liquidity, including that of the current business.  While, without taking business risks, it is close to impossible to expand business, an expansion without proper infrastructure is suicidal.  Therefore the owners have to adequately balance strategy between expansion of business and additional costs of larger infrastructure.

4-5 decades ago, our family business went through a similar balancing act or lack thereof.  The reasons stand good even today.  My dad owned iron ore and manganese mines.  He was as good at looking for and selecting remunerative mines as he was at obtaining Government permissions to operate those mines.  He started with a small mine of a few acres and expanded to 9 mining leases. From the records, I found out after his death that just two of them were as big as 1064 acres!  These could have been sources of unimaginable and unlimited revenues.

He was the lone manager of this enterprise.  Infrastructure for expansion was not planned.  We, all his sons, were still students.  Management was not adequate and therefore the controls on the resources were inadequate.  If controls are missing, the funds would go missing too!  The entire business turned out to be unremunerative whereas it should have earned multi-millions.  It was all due to inadequate infra-structure.

My son Anand, who earlier was in UK, took over operations of my business over a year ago. He wanted to expand and diversify the business.  His first thought was about infrastructure.  He spent almost a year in planning and building additional infrastructure for future activities and wisely limited it within affordable means.  We occasionally felt that the business could be managed without additional infrastructure, but learning from my dad’s experience, I was very happy to support him.

I have seen some not-very-large businesses that they were very successful when they were small, but failed miserably when they expanded.  On analysis, it was clear that the main reason for their failure was that only the value of fixed assets was taken as investments and funds for expansion were arranged accordingly. The need for working capital for day-to-day activities and transition costs were ignored.  This is extremely important and is a significant amount in most businesses.

A businessman I know, failed to notice another significant problem. “When one heads towards the top at top speed, he had to ensure that he doesn’t drop down”. At whatever height one is, it is a human tendency to assume that the peak is yet to come.  But one cannot judge when one is at his peak. Therefore, to be safe, at every stage of climbing, one should secure themselves from a fall.

How do we secure that?  Simple, set aside a good percentage of earnings for a rainy day, a saving for safety from failures.  Do not put entire capital at risk. For any reason, if expansion investment is lost, at least you are left with a base capital to survive for future.

These are some of the lessons learnt while analysing the reasons for failures of some of the prosperous businesses while undertaking expanded activities.

Take care!

Written: Badri Baldawa

Edited: Meeta Kabra