Shahnaz Husain - A Successful Indian Woman Entrepreneur

"I do not sell products. I sell an entire civilization in a jar."

- Shahnaz Husain

"She lives, sleeps, breathes her business. She is consumed with building a successful company
which she has done."

- Janine Sharell, Correspondent, CNN

Introduction
She captured the markets around the world and now she wants to conquer space. In an innovative
move, Shahnaz Husain has started work on formulations that astronauts could carry with them in
their extraterrestrial sojourns to protect their skin from the ravages of space travel and slow down
the ageing process. She has sent National Aeronautics and Space Administration (NASA) free
samples of her moisturizers, hoping that they will be used on space expeditions. Shahnaz Husain is
one of India's most successful women entrepreneurs. Her company, Shahnaz Husain Herbals is
one of the largest manufacturers of herbal products in the world. It formulates and markets over
400 products for various beauty and health needs and has a strong presence across the globe,
from the USA to Asia.

In 2002, the Shahnaz Husain Group, based in New Delhi, was worth $100
million. It employed about 4200 people in 650 salons spread across 104
countries. The Group has seen a good growth rate in the 25 years that it has
been in business.

The average growth rate in the initial years (late 1970s to the early 1980s) was
15-20%. In the 1990s the average growth rate was 19.4%. A number of awards,
both national and international have been conferred on Shahnaz Husain.

Some of them are "The Arch of Europe Gold Star for Quality", "One of the
Leading Women Entrepreneurs of the World", "The 2000 Millennium Medal of
Honor", "Rajiv Gandhi Sadbhavana Award", etc.

The Making of an Entrepreneur

Shahnaz Husain belongs to a royal Muslim family which migrated from Samarkhand to India and
later held high positions in the princely kingdoms of Bhopal and Hyderabad before India's
independence. Shahnaz received her schooling in an Irish convent and because of the influence of
her father, Chief Justice N.U. Beg, she developed a love for poetry and English Literature.
She thus had the advantage of growing up in a traditional family and receiving a modern
education. She was married at the age of 15 and was a mother by the next year. When her
husband was posted in Teheran, Iran, she developed an interest in beauty treatments and decided
to study cosmetology. To support the expenses of the training financially, she wrote articles for the
Iran Tribune on various topics under different names.

In the course of her studies, she learnt of the harmful effects of chemicals on
the human body. Consequently, she turned her attention to Ayurveda (Refer
Exhibit III), which she believed was the ideal alternative to chemical cosmetics,
which not only harmed the human system but also led to the deterioration of
the environment in the long run.

After leaving Teheran, she trained extensively in cosmetic therapy for 10 years
in some of the leading institutes of London, Paris, New York and Copenhagen.
On her return to India in 1977 she set up her own salon at her house in Delhi
with an initial investment of Rs 35000. In contrast to salons offering chemical
treatments, Shahnaz offered Ayurvedic products.

Entrepreneurship-The Shahnaz Husain Way

Shahnaz Husain uses the Ayurvedic method of treatment, which uses natural formulations to cure
ailments. She is the pioneer and leader of Ayurvedic beauty products in the world offering "Natural
Care and Cure". The Shahnaz Husain Group offers exclusive salon treatments geared to individual
needs as well as a number of commercial formulations for the treatment of specific problems like
acne, pimples, pigmentation, dehydration, alopecia (hair loss), etc.
According to the Group, ayurvedic products are well suited to human skin and hair as they are
non-toxic and have no harmful side effects. The human body adapts well to the natural treatments
of Ayurveda while it has an inbuilt resistance toward chemical treatments. This makes the system
all the more effective.

The Group's sophisticated R&D units develop the products and put them through stringent quality
control tests. These products are environment friendly and no testing is done on animals. All the
products offered by the group are entirely natural and carry the guarantee of purity and safety.

She uses natural ingredients - fruits, flowers, herbs, vegetables, honey, - as the base for most of
her products. More complicated and exclusive treatments using gold and pearls have also been
developed. Shahnaz has recently launched the Oxygen Range with an Oxygen cream, an Oxygen
mask and facials using ingredients which breathe life into the skin and revitalize it. The Shahnaz
Husain Group has two R&D units and a herb and flower farm near Delhi. A degree of quality control
is exercised at every stage of the product development, right from the raw material stage to the
end product. Various methods of soil culture and cultivation are followed to improve the quality of
the final product. The extraction of essential oils and decoctions, infusions, powders and tinctures,
is carried out using the latest technology.

All the procedures are carried out in accordance with the Ayurvedic system.
Shahnaz believes that high quality is ensured only by the rigid exercise of control
at every stage of production. In spite of the huge size of her business and the
 wide variety of products she deals in, Shahnaz Husain has never advertised. She
has relied entirely on word-of-mouth publicity to make her products known to
customers.
She believes that a satisfied customer is the best form of advertisement. Before
Shahnaz Husain entered the retail market, her clinics were the only outlets for
her products. By the 1990s, the range and popularity of Shahnaz products had
increased so much that her products were carried by most of the big retail stores
in India and abroad.
She has been able to achieve growth due to the quality of her products and the result-oriented
treatments she offers. She commented, "I have relied only on clientele feedback, based on clinical
treatments and this is what has made the ranges truly unique and result oriented." In 1977, when
she returned to India, she set up a parlor at her home in New Delhi. She had then put up a banner
with her qualifications on it.
Within days she was booked for the next 6 months. She said, "I removed the banner and since
then I have never advertised. I have let my products speak for themselves." Shahnaz was
disturbed by the fact that India was not represented in any of the Global beauty forums of the
world beauty congresses. Deciding to change this situation, she represented the country for the
first time in the CIDESCO1 beauty congress in the late 1970s.

"It was my aim to get India on the world beauty map as I felt terrible about the fact that India was
never represented at any world beauty congress," said Shahnaz. She was appointed President for
the day's proceedings at the congress and she used this opportunity to focus the world's attention
on Ayurveda.

The Turning Point

The turning point in her business came when she represented India at the Festival of India in
1980. Her team was given a counter in the perfumery section of Selfridges in London. She
managed to sell her entire consignment in 3 days and also broke the store's record for cosmetics
sales for the year. As a result, she was offered a permanent counter in Selfridges. Shahnaz was
the first Asian whose goods were retailed by the the Galeries Lafayette in Paris. Although it was
not easy to enter the highly competitive western markets and especially difficult to attract
attention to the Indian system of Ayurveda, she was able to gain a firm foothold in the markets.
Shahnaz Husain products are sold at many prestigious stores around the world such as Harrods
and Selfridges in London, the Galeries Lafayette in Paris, Bloomingdales in New York, the Seibu
chain in Japan and Sultan Stores in the Middle East. Her products are also carried by other
exclusive outlets in the Middle East, Asia and Africa. Shahnaz Husain has used the franchising
mode to expand her business in India and abroad.

She has a large network of over 600 franchises and associate clinics around
the world. All the franchisees are required to undergo training in specialized
treatments at Shahnaz Husain's school of beauty therapy. All franchisees
obtain the right to use the Shahnaz Husain name and her specialized
treatments and are allowed a 30% profit margin on the sale of Shahnaz
Husain products. In 2002, the Shahnaz Husain Group obtained distributor
rights for Australia, New Zealand and the Fiji Islands.
 Distribution channels were first set up in the major cities of Australia, and later
in New Zealand and Fiji. This was followed by the setting up of herbal clinics,
first in Sydney and later in other Australian cities, New Zealand and Fiji by the
first half of 2003.

The Shahnaz Husain Group has about 40 distributors and more than 600 sub distributors all over
India. The Group sells not only in the cities but also in the small towns. In addition, the Group
owns about 20 clinics and outlets in New Delhi. All other outlets are run on the franchise system.
The Group does not make any financial investment in its franchises, nor does it have any share in
their profits.

Diversification
The Group has diversified into Ayurvedic centers for Panchkarma, Dhara and Kerala massage.2

It has also set up two Shahnaz Husain Ayurvedic Health Resorts, one near Delhi and another in
collaboration with the Hyakumata group of Japan in the US island of Saipan. These resorts which
can accommodate about 200 people at a time, aim at providing urbanites treatments and
programs designed to counteract the stress of modern life. The Group has also been holding
discussions with major five star hotels in New Delhi and New York to set up health spas. Shahnaz
Husain products normally cater to the premium end of the market and are rather expensive.
Shahnaz justifies the price citing quality, purity and high excise duties as the reasons. In 2002,
however, she developed a product for the mass market, a Fairness Dream Cream, priced at Rs 68
for 50gms.

This product will not only be advertised (unlike her other products), it will also
be made widely available through all sorts of retail shops and even at railway
stations. She claims that she has always wanted to create a product for the
masses and the R&D department had been on the job since 1995 to create such
a product.

The group has also launched a line of herbal drinks under the brand name
Fitness Fiesta Shadrink. These drinks are low calorie, cooling drinks to be
consumed in the summer. The drinks are based on rose and khus (poppy seeds)
extracts and contain essential nutrients, vitamins and minerals which nourish
the body and help purify the blood. Shahnaz's love for animals prompted her to
introduce a special range of ayurvedic products for pets – Shapet.
This range includes hair care balms, anti-tick hair cleansers, talcum powder, anti-scabies skin oil,
antiseptic balm, and anti parasitic lotions Shahnaz believes that chemical products and pesticides
destroy the natural luster and health of the animal's coat. Natural products not only prevent this
but also help soothe and cure infections.

Training Future Entrepreneurs

Seeing the need for internationally recognized institutes that offered professional training in
beauty, Shahnaz Husain set up Woman's World International. This was started at a time when
people who wanted to train in beauty treatments and therapy could only get apprenticeship
training. The institute which is affiliated to ITEC, U.K3 offers training in cosmetic therapy and
combines theoretical knowledge with practical training. Students study physiology and the human
anatomy to understand the scientific principles of beauty and become familiar with the major
systems of the human body. They are taught the practical skills of massage and make-up under
the expert guidance of a qualified therapist. They also learn the use of various skin and hair
gadgets. In addition, they study nutrition, weight control and exercise. Students are also given
basic training on setting up and running salons and maintaining hygiene.

In addition, they learn communication skills and general business management skills. The institute
has branches in New Delhi, Mumbai and Noida. Shahnaz later started the Men's World
International because of the demand for men trained in beauty treatments. These institutes offer
Diploma Courses and Post Graduate Courses in beauty and cosmetic therapy. They also offer
refresher courses and courses on personal grooming.
The Shahnaz Husain Ayurvedic Centre for Panchkarma, Dhara and Kerala Massage also imparts
training in these traditional disciplines. Students are taught the Ayurvedic system of "Tridosha" for
identifying ailments. A qualified Ayurvedic doctor conducts these classes.

Shahnaz has also started 'Shamute', a free training school in cosmetic therapy for the speech and
hearing impaired. The training they receive in this school helps them lead a self reliant and
purposeful life despite their handicap. Even after they qualify as beauticians, they are offered
guidance and advice throughout their career.

Shahnaz Husain has acquired worldwide recognition. Her dedication and

relentless hard work have paid off and she heads a Group which is the largest of
its kind in the world.

"It is important to have a dream and to believe in the magic of your dreams"
says Shahnaz, who has been able to convert her own dream into a business
worth millions of dollars.

Shahnaz believes that a true entrepreneur is a person who has independence of

spirit. "One should be innovative, dynamic and willing to try every avenue
towards success." She does not look on her work as a career. It is more like an
obsession and the sole purpose of her existence.

Lessons on Entrepreneurship

Shahnaz says that to succeed, one must never give up and never stop trying. "I always feel I have
another mountain to climb and another frontier to cross. I never rest on my laurels." She puts in
18 hours of work and diverts all her energies into her company. Her business acumen and untiring
efforts combined with excellent products she creates have made the Shahnaz Husain Group the
undisputed leader in the market for Beauty Products and Natural Remedies.

What are the major reasons for her success and continuous growth when other similar
herbal products could not get such worldwide acceptance and brand recognition?