Kochouseph Thomas Chittilappilly, the founder and chairman of V-Guard Industries, is an icon of corporate Kerala. He is someone who has rewritten the history of entrepreneurship in the state. He talks to TNIE about his struggles, life philosophies, ventures, and how Kerala’s business climate has changed over the years. Edited excerpts:
You began a startup and ran it successfully, much before the term startup became fashionable. How was the beginning?
To tell you the truth, entrepreneurship was nowhere in my wildest dreams. I always wanted to be a scientist. I had applied many times to ISRO. Fortunately or unfortunately, I never got selected. So I joined a small company, but it was struggling financially. I tried for other jobs, unsuccessfully. It was then that I decided to start something of my own. I never imagined that it would become this big. I became an entrepreneur out of compulsion (chuckles).
The life of a first-generation entrepreneur is never that easy. How was your journey?
I began my journey 46 years ago. At that time, entrepreneurship was not much appreciated. We did not have many successful examples then, and had to overcome many hurdles. I started very small. We grew up gradually, but steadily.
Have heard that you had a learning disability...
Yes, I had. I used to jumble letters and my writing speed was very low compared to others. I had difficulty completing exams on time. I was just an average student.
You had faced strikes and tussles with trade unions in the initial years. Now the Left government has become proactive and business- friendly. ‘Nokkukooli’ has been banned... How do you view this change?
We had faced many such issues initially. Strikes were very common in those days. All political parties — both Left and Congress — had a negative attitude towards business. Things have improved a lot now. Politicians have realised that entrepreneurship is important. Development will happen only if political parties take things seriously. Now one can see the change and that is a good sign.
During the early struggles, did you ever feel like leaving everything?
No. I could not afford to leave it as I did not have any other choice.
It is said you grew up taking advantage of the inefficiency of our system...
(Chuckles) That is correct. Voltage stabilisers are required because there is voltage fluctuations. You will not find stabilisers in the west as they don’t experience such power fluctuations. Then, I also realised that I need to diversify as voltage fluctuations will soon be a thing of the past. Now stabilisers account for only a small portion of our products.
Have you stopped the production of any products?
We stopped producing wall clocks and PVC pipes as they were not profitable.
You started the first amusement park in the state when most Malayalis had never heard of it...
I sat on the idea for a long time as it required quite a lot of investment. Many had warned me against investing a huge amount of money in a field where I had no expertise in. But my gut feeling was for it, and once V-Guard got stabilised I started it. It became a success soon. We started one in Bengaluru and another in Hyderabad. Now, all are running quite successfully.
You have been in this business for 46 years. Why didn’t you attempt to scale up from electrical to electronics?
V-Guard doesn’t make exclusive or patented items. We are manufacturing quality products for the common man. But we keep upgrading our products regularly and ensuring quality. I am happy producing what the market demands and that is what our growth denotes. You can say I am scared of MNCs (chuckles).
Did you have a succession plan?
For the past 10 years, I have not been involved in the activities of V-Guard. So, I have no role in the current growth. When we had an expansion plan, I decided to go for a public issue. And that was a right decision, as it has made the company more professional.
What is your employee strength now?
More than 6,000 permanent employees.
Have heard that you hired 10th failed persons initially...
That was mere common sense. I knew that well-qualified people would not join my new company (chuckles).
What is your philosophy regarding hiring?
I give more importance to one’s attitude and commitment than academic excellence. I always remember that I was an average student. If I can perform this much, then anybody can. So academic qualifications don’t matter much.
How do you assess Malayalis as employees?
Malayalis have many strengths and are a step ahead of others. That is primarily because we have been educated for generations. Some say Malayalis don’t stick to a job for long. But I would say that is because they deserve more money.
Do you think Malayalis lack entrepreneurial skills or business acumen?
I don’t think so. Many Malayalis have performed well in other countries. Social climate was not encouraging towards entrepreneurship earlier.
V-Guard is branching out more in North India these days. Why?
We entered North India only after the second generation took over. Now there is a huge demand from the markets there.
Do you think Kerala is becoming more business-friendly?
Certainly. Things have improved drastically in Kerala.
In what ways?
Earlier, if you approached a minister with a problem, he or she wouldn’t even understand it. They used to view investors as bourgeois and class enemies. Those who make money were looked down upon as criminals. Though some apprehensions still exist, the mood is much more welcoming now.
Kitex MD Sabu M Jacob had to shift his business to Telangana. Wasn’t it very damaging to Kerala’s image?
His decision to shift operations has made the government more alert. It has turned more cautious, to avoid similar incidents. So in a way, his move has helped improve the overall climate.
Are you still part of Twenty20?
Not, any more.
Why did you decide to join it?
I thought it was a good concept. Sabu proved that if there is a vision, one can improve a panchayat. But I realised later that the process is not as easy as was expected.
Some of your social media posts had courted controversy... One also gets a feeling that your politics is anti-Left...
I normally share newspaper cuttings on issues I feel connected to. I am not against BJP or CPM or Congress. When I have some difference of opinion I express them. I am neutral, I have no political leanings.
Do you agree with the idea of businessmen joining politics?
It is difficult to handle business and politics together. I think one can be passionate about only one thing at a time. Otherwise, both will suffer.
How do you assess the Pinarayi Vijayan-led government ?
This government is trying hard to make things better. We have reached the brink. Our GST collection will increase only if there is production within the state. So it’s important to focus on more manufacturing units. How long can we go on depending on loans?
Have they ever taken your suggestions or advice?
P Rajeeve calls me occasionally and we exchange ideas. He and his team are trying hard to make changes. But the problem is that they are reaping what they sowed earlier.
You got some bad press recently over an accident that happened in the amusement park. The allegation was that you offered Rs 5 lakh to a woman who questioned a road blockade but that you refused to give proper compensation to someone who met with an accident in your park...
He was drunk and that was how the accident happened. We had all the proof. But still, we helped him initially. Later, with the support of a political party, he started to cause damage to our reputation. Then we also decided to take the legal route. Now, the matter is settled.
Do you think the Indian rich are yet to wake up to philanthropy?
There was such a time. But Tata Group, Azim Premji and Infosys are all very much into philanthropy these days.
You donated a kidney at a time when organ transplantation was not much heard of...
I started thinking about it when I saw one of my distant relatives struggling to find a donor. She died without one. When I heard about the struggle of another man, I decided to donate. The only condition I set was that his wife should donate a kidney to someone else. She did it and it went on like a chain. I was 60 when I donated a kidney and I am still healthy 12 years after the surgery.
You had earlier approached the court for euthanasia...
I believe we must have the right to decide how our last days are. I have already written a will on how it should be and have got it registered. I have said that I don’t need a ventilator or other life-saving support systems. One should have the right to decide that, I believe.
What does ‘V’ in V-Guard stands for?
(Chuckles) Actually, there is no particular meaning. When I started, I did not have money for any advertising activities. So I myself named it ‘V-Guard’ with the simple logic that it is something that protects. People now say ‘V’ in V-Guard stands for victory. Let it be so...
Kerala is going through a financial crisis…
Yes. The state is in a very bad financial condition because successive governments have been pampering their employees. Also, the government has taken up all the responsibilities, including salaries, for teachers in aided colleges. There is too much spending in the social sector while there is not enough money for developmental initiatives.
Are Malayalis spending? Is money coming to the market?
Yes, Malayalis have money individually. Their spending power is very much intact. The state economy is very much vibrant if you look at the market for consumer products or cars. Gulf money also plays a major role in keeping Kerala’s economy robust.
Do you think we lag behind other states because Malayalis are still in the clutches of ideology?
That is because of two reasons. One is historical. We had a blessed geography while most other states like Gujarat or Rajasthan were reeling under drought. So while they were forced to turn to trade, we were happy doing agriculture. Another reason is that we used to believe that socialism and communism were the best. As communism is against capitalism, that thought process affected our entrepreneurial culture.
What advice would you give to somebody who wants to invest in Kerala?
This market offers a great opportunity, provided their idea or product is innovative. There are multiple challenges but there are many who have made it big here.
You have very often opposed trade unions. Do you think trade unions have no social relevance?
Trade unions do have their relevance. But at the same time, they have to be aware of their responsibilities, too.
Are there trade unions in your companies?
No. There were trade unions initially. There is relevance for trade unions only if an employee has to bargain to get his rights. There is no such scenario in our companies as we insist on keeping employees happy.
What is your take on the SilverLine project?
I have been opposing it from day one because it is unviable. The state government is not capable enough to implement it. It was supposed to end this way. It is the responsibility of the central government to implement high-speed rail projects in the state.
It is difficult to get cheap labour in Kerala. But, don’t you think it is a sign of a more egalitarian society?
Kerala is way ahead of other states when it comes to socio-economic indicators. We are better educated, we have better standards of living and high aspirations. There is no poverty... If other states emulate Kerala, the whole country will become developed.
There are stories about you carrying V-Guard products in your scooter for sale. You have come a long way. When you look back, what is one thing that has helped you the most to achieve all these? Is it luck or is it hard work or a combination of factors?
I don’t believe in luck. If there is luck, then there should be bad luck, too. So it gets nullified that way. What is most important is willpower and determination to face hardships. One should not crumble during a crisis situation.
You do business in many states. Compared to others, where does Kerala stand in terms of levels of corruption?
I would say Kerala is one of the the least corrupt states in the country.
What is the one thing that you don’t like about your character?
I have this temptation to react to injustice. I have suffered because of that. But I have no regrets.
Do you advise your kids?
I don’t believe in giving advice to anyone. All that one can do is set examples with our lives. I am someone who has not listened to anybody’s advice. I may listen to suggestions, but the decision will always be mine. That being the case, I don’t think advice is of any use to anyone (chuckles).