Amrut Mody School of Management

Winter Semester (2018-19)

History of Indian Business

(MGT105)
Section 1
Group 3

A report on the brief history of

“New Irani Restaurant”

SR No. Name Roll No. Programme Tasks carried out

1 Sanaiya Jokhi AU1811391 BBA Visiting the place, compiling and editing
the report.
2 Simran Saraogi AU1811332 BBA Visiting the place, making the PPT.
3 Persis Patel AU1811398 BBA Visiting the place.
4 Vineet Patel AU1811372 BBA Visiting the place, writing some of the
content of the report.

Submitted to faculty:
Prof. Tana Trivedi
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  Acknowledgement:
First and foremost, we would like to thank our faculty, Tana Trivedi, for the
valuable opportunity, guidance and advice who inspired us greatly to work on this
project. Secondly, we would like to thank our parents for giving encouragement,
enthusiasm and invaluable assistance. Thirdly, we would like to thank our fellow
classmates and groupmates for helping and contributing to this report.

 Index:
Topics Page Number
A BRIEF INTRODUCTION TO THE RESTAURANT: 3
INTRODUCTION TO THE CITY THE BUSINESS IS 3
LOCATED IN (AHMEDABAD):
Manek Burj 3
Legend regarding Ahmed Shah choosing Ahmedabad as 3 and 4
its capital:
INTRODUCTION TO THE AREA AROUND THE 4
RESTAURANT (BHADRA FORT AREA):
ECONOMY OF AHMEDABAD AT THAT TIME: 4 and 5
Quit India Movement 5
Historical Textile Strike 5 and 6
ABOUT THE BUSINESS: 6
Owners of the Business 6
Generations of the owners 6
Vision of the Business 7
Problems faced by the business 7 and 8
Changes made after taking over 8
Timings 8
Famous dishes 8
Main Competitors 8 and 9
Key Learning from the Project 9

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A BRIEF INTRODUCTION TO THE RESTAURANT:

Started in 1946, by Behram Irani, the ‘New Irani Restaurant’ is a 73 years old legacy.
It is situated near the Bhadra Fort in Ahmedabad. It may have started in 1946, but the official
government registration of the business took place only in 1950.

INTRODUCTION TO THE CITY THE BUSINESS IS LOCATED IN

(AHMEDABAD):

Ahmedabad’s history started with king Karan conquering it from a Bhil king Ashaval
in around eleventh century. On the banks of the river Sabarmati, king Karan established a city
which came to be known as ‘Karnavati’ (Karan’s town). However, the city was founded by
Ahmed Shah I on 26th February,1411. He established a foundation bastion on 26th February
itself. Its construction completed after two years, in 1413. The foundation bastion is known as
Manek Burj after the Hindu saint Maneknath. Maneknath helped Ahmed Shah I in building
Bhadra Fort. He announced it as the capital of Gujarat Sultanate on 4Th March,1411.

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Manek Burj:

Manek Burj is fifty-three feet high and a stepwell named name Manek Kuva resided
in it. After the flow of Sabarmati river changed, it was filled up as it was dry in 1866. A
bridge across the river was built in 1869 near the bastion which came to be known as ‘Ellis
Bridge’. In May 1989, the Ahmedabad Municipal Corporation (AMC) announced that Manek
Burj, Ellis Bridge and its boundary, and the natural water drain nearby would be considered
as protected sites. As the original bridge was not strong enough for heavy traffic, a new
concrete bridge was constructed around the old steel bridge. For the construction of the new
bridge, Manek Burj had to be partially broken. After the consequences in the early 2000s, the
people believed that the city suffered damage due to the bastion being partially broken. So,
the Ahmedabad Municipal Corporation made some changes and restored Manek Burj in
2003. Ahmed Shah I established both, Manek Burj and Manek Chowk in the name of saint
Maneknath.

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Legend regarding Ahmed Shah choosing Ahmedabad as its capital:

Legend has it that Ahmed Shah I, upon his arrival in the city for the first time, saw a
hare chasing a dog. He kept thinking about the incident and then asked a sage about its
explanation. He said that the land had special characteristics which made a timid hare chase a
ferocious animal like dog. Ahmed Shah I had been finding a capital for kingdom and amazed
by this explanation, he declared the city as his new capital.

Introduction to the area around the restaurant (Bhadra Fort Area):

Bhadra Fort was built by Ahmed Shah I in walled city area situated in the old
Ahmedabad city. There are two stories behind why the fort was called ‘Bhadra’. One story
said it was named after the goddess Bhadra Kali and the other said it was named after a
fortress that the Sultans had first conquered near Patan. The fort was also known as ‘Arak
Fort’. The foundation of the fort was laid by Ahmed Shah I in 1411. However, he died soon
after that. The grandson of Ahmed Shah I, named Sultan Mahmud Shah I built a second
fortification. Sultan Mahmud Shah was commonly known as Mahmud Begada. Begada
meaning conqueror of two forts i.e. Pavagadh and Junagadh. Bhadra Fort had 12 gates.
Ahmedabad was then ruled by Mughals. The Mughal era ended when the joint army of
Peshwa and Gaekwad conquered Ahmedabad. Bhadra Fort consists the mosque of Ahmed
Shah. The entrance to the royal square of the city is known as Teen Darwaja. The road from
Teen Darwaja leads us to Manek Chowk. Manek Chowk is a mercantile square. Teen
Darwaja is featured in the official logo of Ahmedabad Municipal Corporation. A legend says
that many years ago, Goddess Lakshmi came to the gate of Bhadra Fort. The watchman
pleaded the goddess to stay there until he got the permission from the King. He went to the
king and killed himself in order to keep Lakshmi in the city. In the memory of the watchman,
Siddique Kotwal, a tomb is built near the fort. A lamp has been lit continuously at Teen
Darwaja for 600 years by a Muslim family in the memory of this legend.

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ECONOMY OF AHMEDABAD AT THAT TIME:

Ahmedabad is known as ‘Manchester of the east’ or ‘Manchester of India’.

Ahmedabad is called so because there are many similarities between Manchester and
Ahmedabad. Manchester’s climate is cold and therefore, there is a need of thread. More
clothes are made in order to save people from feeling cold. Manchester is located on the river
bank of Mershey. The water of Mershey is good in dying of thread. Similarly, Ahmedabad is
also situated on the banks of river Sabarmati. Just like Mershey, the water of river Sabarmati
is also good for dying threads. Thread needs spinning after being dyed. Ahmedabad’s climate
is suitable for spinning the dyed thread as well. Cotton textile of Ahmedabad developed due
to this. Skilled labour workforce is readily available in Ahmedabad. Ahmedabad is situated
near sea, so the export and import of raw materials and products become easy. Textile mills
were established in Ahmedabad as the cotton industry bloomed. As Ahmedabad city is
famous for handloom spinning and also weaving, it came to be known as ‘Manchester of
India’.

The main industry of Ahmedabad has always been the Textile Industry. The first ever
mill in Ahmedabad was established by Ranchhodlal Chhotalal, also known as founder of
modern Ahmedabad on 30 May, 1861. The mill was named ‘Ahmedabad Spinning and
Weaving Company Limited’ but it was famous under the name of ‘Shahpur Mills’ later on.
Mills like Calico Mills and various other mills established by people like Kasturbhai Lalbhai
and Ambalal Sarabhai helped the cotton textile industry in Ahmedabad city to grow. In
between all of this, there was a reduction in growth of textile industry, but it again caught up
speed after the Swadeshi Movement introduced by Mahatma Gandhi in the struggle of the
freedom fight against the Britishers. Arvind Mills was started in 1931, which would

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eventually grow to become one of the three largest producers of denims in the world.
Ahmedabad was one of the largest jewelleries and gemstone supplier in the country.

Quit India Movement:

As the struggle for the freedom fight was prevalent in those times, many incidents
took place which affected the businesses in various ways. A curfew of two and a half months
was obtained in Ahmedabad because of the communal riots starting on 18th April,1941. ‘Quit
India Movement’ started on August 8th, 1942. Gandhiji in his speech, demanded ‘an orderly
British withdrawal’. Within some hours of Gandhiji’s speech, all the main politicians and
leaders of Indian National Congress were imprisoned. During this movement, many of the
businessmen did not support the cause as they benefited heavily in the wartime.

Historical Textile Strike:

August 9th is celebrated as ‘Quit India Day’ every year in our country. Its importance
is not just limited to the beginning of Quit India Movement. On this day, in 1942, around
1.25 lakh mill workers went on a strike. Under Majoor Mahajan Sangh (Textile Labour
Association – TLA), the workers in Ahmedabad city went on a three-and-a-half-month-long
strike demanding for the British to Quit India. This incident took place after the leaders were
imprisoned because of Gandhiji’s ‘Do or Die’ speech.

ABOUT THE BUSINESS:

About the owners of the business:

As stated above, ‘New Irani Restaurant’ is a 73-year-old legacy located in Bhadra

area of Ahmedabad. Its registration was done under the name of Behram Irani. It was only
after a few years that he decided to sell this restaurant in around 1953.

Yakubbhai took over the business on 21st October, 1954. This restaurant is one of the
few and among the oldest Irani Restaurants in the city of Ahmedabad. Yakubbhai was a mill
worker prior to this. Yakubbhai took over the business with the help of Ali Ghulam Raza

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Irani. Ali Ghulam Raza Irani was a companion of his in the mill he used to work in.
However, Yakubbhai conducted and performed most of the business activities. Yakubbhai’s
uncle helped him in the capital investment in order to run the business.

Yakubbhai’s uncle had already worked in the bakery and the hotel industry for quite a
few years. So, he had the experience of how to run a business in this industry. He helped
Yakubbhai in a lot of matters related to the business.

The generations of the owners:

Today, 5th generation of Yakubbhai’s family is indulged in operating the business.

 Allarakhbhai Motibhai (Yakubbhai’s uncle)

 Yakub Ibrahim (original owner of the business)
 Yusufbhai and Shabbirbhai (Yakubbhai’s sons and the current owners)
 Moin and Zuber
 Moin and Zuber’s kids (although they are small, Yusufbhai, the current owner, is very
positive about them handling the business when they grow up)

The vision of the business:

The restaurant was run in order to serve the mill workers, other labourers and college
students with meals. Some of the people didn’t bring a lunchbox and therefore, the vision of
Yakubbhai was to provide the people with good and nutritious food for cheap prices. There
were no ultramodern hotels or restaurants in those days but the people in that area could not
afford even the moderately priced restaurants.

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The problems faced by the business:

In those days, the people were hesitant to go out to a hotel or a restaurant to eat.
People preferred home-made food only. The main reason being they couldn’t afford to eat
food in a hotel, of course. Even when this restaurant provided good food at a cheaper price,
the business faced some hurdles. The women in those times hesitated to go out to a hotel or a
restaurant as they would have to sit amongst many other men. Also, because of the orthodox
thinking, the men in the family would avoid taking their wives or sisters or any other women
in the family out for a lunch or a dinner to a restaurant.

One of the other hurdles the business had to face was investments were less that time.
Also, the customers were not very much. Yakubbhai being a mill worker, with the help of his
companion and uncle collected a little amount of investment, but it was not enough. As he
had recently took over the business, he made some changes in the business. Due to this, in the
few early years of the business, the business needed more capital. Yakubbhai, however, came
out of this problem with a lot of struggle.

One such problem the business faced in its early years was the riots and the curfews.
Curfews were very common in those days as India and its people were struggling with the
freedom fight against the British. Communal riots as such were very common in India in
those times. Due to the partition of India and Pakistan, the Hindu-Muslim communal riots

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took place very frequently. The area being s Muslim community dominated area, whenever
there was a slight distress in the environment, curfews were obtained. This affected the
business drastically. Another reason for the loss in the business was, when curfews were
obtained, the Government allowed the businesses to be opened for few hours a day. The time
in which they would allow the businesses to be opened was not specific. It depended upon the
Government. Sometimes they got to open the restaurant for 5 hours in a day, sometimes 1
hour in a day and sometimes they didn’t allow at all. The worst part about the communal riots
affecting the business was that the curfews were obtained for months at a time. They would
get the news from the government officials regarding the time they would allow the
restaurant to be open. They would make all the preparations to make the food and then the
authorities would not allow them to open up. All of the food they prepared beforehand or
which needed preparation was wasted.

The changes made after taking over the business:

When they took over the business from Behram Irani, they made some changes in the
business. The production pattern has changed since then. Yakubbhai changed the staff after
he took over. Raw materials for preparing the food are chosen and bought personally by the
owners to increase the quality and decrease the cost price. For example, wheat is personally
bought by the owners and then milling is done in the restaurant itself. Intermediaries were
also cut out. They specially go to the place where they find the best quality of a particular raw
material.

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Timings in which the business is conducted:

The restaurant is open from 6:30 a.m. in the morning till 1:30 a.m. next day in the
morning. The restaurant obtains two shifts, the morning and the evening shift. There is a total
staff of around 12 to 15 people. The staff is paid on the basis of daily wages.

The famous dishes of the restaurant:

This restaurant is very famous for its ‘Irani styled tea’ and ‘Maska Bun’. Irani style
tea is made with specially boiled milk at a certain temperature for a specific amount of time.
Maska Bun is a very simple dish which contains of a lot of butter applied on a bun. Other
famous dish of theirs is Kheema roti. It is basically a minced mutton dish induced with a lot
of spices eaten with roti. In the early days of their business, Malpudas were also one of their
famous dishes.

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The restaurant’s main competitors:

The restaurant’s main competitors are Paramount Hotel, Food Inn and Lucky Café.
However, not a single one of them offers the same cuisine and the delicacies as New Irani
Restaurant. Lucky café is a famous café just nearby the restaurant. It has a famous painting of
Mr. M F Hussain.

The key learning from the project:

We, hereby, conclude the project. Going through this entire experience helped us to
get a better understanding of our past to connect better with the future. We were able to
correlate theory with practical evidences and see how society relates to each other. Till now,
history is what we learned using textbook stories about kings and dynasties but through this
project we were able to perceive history in a completely different way. Visiting the old side
of the city and interacting with the people made us realize how history occurs over a period

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of time and how it a part of the environment we inhabit. Using a historical approach also
helped us understand certain specific traditional, social, economic and cultural contexts
within with businesses developed in Ahmedabad. Interaction with the people also taught us
how these businesses survived some of the most difficult times and still came out strong
standing in the 21st century. It also gave us an insight in how Ahmedabad developed as a
business hub and how business thrived in it. Focusing on family business also taught us how
families work together to make a dream turn into reality and still stand by it. Given the
backdrop of this project we learned how a man with a strong vision and commitment is able
to create ventures which emerge as market leaders of today.

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