I had to drop out of engineering as all hands were needed: Joseph Thayyil of Johns Umbrellas

Success Quotient is a weekly feature that appears every Friday on Firstpost, which looks at the pains and joys en route to success for a head honcho - whether a CEO, MD or an entrepreneur. The column looks at the ideas that helped launch a company, its highs and lows. When the monsoons play frenetic music across various parts of the country, it is time to keep pace with it by pulling out long-forgotten umbrellas. If you can’t locate any, time to go join the queue in shops to purchase one. One of the four major players in the quality segment of umbrellas in the country, Johns Umbrellas from St Johns Umbrella Mart, based in Alapuzha in Kerala which claims 35 percent share of the segment, is busy putting out its latest innovations. Joseph A. Thayyil, the firm’s 42-year-old Managing Director, talks of what it took to set up a business after the family-owned business of over five decades broke up and how the new brand Johns Umbrella established itself in the industry. Excerpts from the conversation: You were a part of a family-owned business, St George Umbrellas until you split in 1995. My grandfather, Thayil Abraham Varghese created St George Umbrella Mart in Alapuzha in 1954. He was a former employee of an umbrella manufacturer. He set out on his own and created a new brand. My grandfather was particular that the umbrellas he would make would be of good quality. In those days when cotton was used as a fabric on umbrellas, he would procure superior material from Century Mills. In Kerala, an umbrella is not a commodity but a product that is used throughout the year. The climate is such that you need to use an umbrella through the year. When my father and his brother split, both decided to continue in the same trade. My elder brother and I joined the business ( I had to give up studying while in the final year of engineering as all hands were needed) and we started Johns Umbrella. When we started out, we would make 24 dozens umbrellas a day against our competitor’s (Popy Umbrellas owned by cousin) 6000 umbrellas a day. [caption id=“attachment_2292804” align=“alignleft” width=“380”]  Joseph Abraham Thayil, Managing Director, Johns Umbrellas[/caption] What changes did you bring to the business? We decided early on to get into the entire manufacturing of the umbrella. Like others, we were assemblers of various parts of umbrellas brought from other vendors and also from China. We decided to set up our own manufacturing unit in China as labour was very cheap there then. Later, we shifted our manufacturing base to Chennai. We invested Rs 1.8 crore and got Delcam software that is used in the automobile industry to design the product and is known for precision and zero errors. We are the only company in India to manufacture every part of an umbrella.  Our production capacity now is 8,000 umbrellas a day. What is the price range of your umbrellas? Our products are meant for those who are looking for quality and can invest money on it. Our starting range for children’s umbrellas is Rs 175, for adults – two-fold at Rs 225 and three-fold at Rs 290. We don’t consider an umbrella a use and throw product and ensure it lasts for a year. We have launched a sunblock coating umbrella that will not reflect light even if a light is kept on the outside of the umbrella. It costs Rs 360. We have high end umbrellas like I-Auto, the world’s first fully electric umbrella powered by a lithium battery, automatic gear shift control, Teflon fabric protector and fully integrated water proof casing at Rs 6,500 this season. It opens and closes automatically. How much do you think will the Make in India scheme of the government benefit the umbrella industry? We are not a priority sector for the Indian government. China is the world’s biggest supplier and exporter as well. It has no other competitor and we could be its competitor. However, we have no infrastructure to cater to the kind of quantity as China does. When Johns Umbrellas started working in China in 1998, labour was cheap there but now it is prohibitively expensive and we have shifted to India. We can reach where China is today and even surpass them provided the government provides the required wherewithal for the industry. What was the turnover when you started the business and what is it now? When we started out, we had a turnover of Rs 60 lakhs. I was just 23 years old when I joined the firm. We struggled initially, arrived at the understanding that manufacturing would be the game changer, invested for software, etc and got ROI in two years of investment. We reached profitability in 2000 and our turnover now is Rs 60 crores. In 2005, we moved on to the automobile dealership business in two wheelers which is handled by my younger brother. Next fiscal, we expect to touch Rs 180 crores. We are also entering into the hospitality sector with a 60-room hotel in Alapuzha. What strategy paid off hugely in the umbrella business? We were the first umbrella manufacturers to retail from airports. Rentals at airports are very high but we can sustain that as we are manufacturers. We wanted to create a brand awareness for our product and began our first retail store at the Kochi international airport. We have now stores at international airports in Trivandrum (also in the domestic terminal), Hyderabad, Goa, Mangalore and a unit at Lulu Mall in Kerala.  People who want quality products come to our retail stores in the airport. What is a typical day in your life? My life is a normal man’s life. We do not have any distraction like parties, etc in Alapuzha. It is a small town where people go to work and come home in the evening back to the family. I start work around 8.30 and am back home by 7.30 and hit the bed at 10 pm. I go out for expositions and exhibitions. However, that is so that I can keep myself updated about how the industry is evolving. We go out as a family during the October and Christmas vacations. Summer is our peak season and so I am busy with my business. Every day is a challenge, pleasantly so, trying to see what are the newest designs and how to keep a humble product innovative and interesting for the customer.