 "Buying Rajesh Khanna's bungalow a personal high point for Allcargo's Shashi Kiran Shetty")
Success Quotient is a weekly feature that appears every Friday in Firstbiz, 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.
He is a first-generation entrepreneur who was in the news recently for buying erstwhile Hindi film superstar Rajesh Khanna’s bungalow. However, Shashi Kiran Shetty’s firm Allcargo Logistics had crossed a few milestones before the purchase of the bungalow put the spotlight on him. Arriving in Mumbai from Bantwal, a village in Mangalore in 1978, Shetty had a goal clear in mind–to become an entrepreneur. Within a short span of four years he embarked on an entrepreneurial journey with a logistics company and later the close to Rs 5000-crore (Rs 4851 crore) behemoth, Allcargo Logistics. The company’s total revenue grew 37 percent YoY to Rs 1,476 crore in the quarter ended September 30, 2014.
In a conversation with Firstbiz, Shetty talks of the various paths he took before fulfilling the goal he had set for himself-to be his own boss and the underlying strength and self-belief that got him there.
You started off as an entrepreneur with a capital of Rs 25,000 that were your savings?
During my initial years in the shipping industry I had the opportunity to work with good organizations where I learned a great deal about how the industry operates, what customers are looking for and how service providers innovate themselves to win business. That experience combined with my vision to make a mark in the industry motivated me to start my own company. Initially, with my savings and help from friends and well wishers, I was able to realize my dream which over time became a major business house. The journey is still on - Allcargo today is one of India’s largest listed logistics companies with presence in over 90 countries, 200 offices and over 8,500 team members across the globe.
What do you consider the high point of your career?
Setting up the first container freight station (CFS) and the acquisition of Belgium-based company ECU-LINE that we pursued in 2005-06 are the turning points for me as a leader, a professional and organisation. Our success is the result of those decisions. Besides financial gains, I got an opportunity to learn and lead a global company and succeed in managing it. The ‘contrarian calls’ - of international acquisitions that others saw as big risks - became the benchmarks of my career.
What were you particular about when setting up your business?
I have always considered it valuable to be customer-centric i.e. to keep customers at the heart of our business and to ensure we have the right people at the right place in a talent-starved industry. I am always mindful about the healthy debt: equity ratio in the company and pay a lot of attention to best in class systems, processes, compliance and governance. In any business one must be mindful about these aspects to create sustainability and achieve growth.
You have your brother and brother-in-law supporting you in your business. How important is it to have family at the workplace?
For creating a successful organisation you need professionals who are driven by their intellect, experience and are passionate to excel in their endeavors. With Allcargo we have a fantastic leadership team across our group. My younger brother Umesh Shetty and Adarsh Hegde share a lot of responsibilities.
What is your strategy to meet with competition?
Our focus is always to understand the evolving needs of our customers not only from India’s perspective but also from a global perspective. The focus is always on our competition to assess and benchmark so as to be superior to them.
What are the five lessons that you would advise an upcoming or to-be entrepreneur?
Belief in oneself, tenacity, hard work, integrity and have the attitude to excel even after one becomes successful. It is also important to keep oneself fit physically and mentally to have the required energy to deal with challenges. Hence, health and personal grooming becomes equally important.
You purchased cine star Rajesh Khanna’s bungalow? Was that a dream as well?
It was more of an opportunity which presented itself, as we were looking at various options for purchasing a house. This is indeed one of the high points of my personal life. We have a good memory and imagination of Mr. Rajesh Khanna’s life which he largely spent in that property.
What are your hobbies? How do you pursue them? What do they mean to you?
I like to read mostly business-related matters, watch television and movies. I am an avid sports enthusiast, especially golf, tennis and cricket. I am someone who is addicted to physical fitness. I love nature and water sports. I make time for them. I feel sports is a good way to also socialize. I love meeting people and making new friends all the time. I love to spend time with my family and take them for holidays of their choice.