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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. (Refer Exhibit I & II)
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.
The Making of an Entrepreneur Contd...
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. Shahnaz offers a wide variety of over 400 products for all age groups
and for a variety of problems (Refer Exhibit IV).

Entrepreneurship-The Shahnaz Husain Way Contd...


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 Contd...
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 deparment 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.

Training Future Entrepreneurs Contd...


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. (Refer Exhibit VI for
Shahnaz Husain Beauty Schools)

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" (Refer Exhibit III) 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.
Lessons on Entrepreneurship
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.
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.
Exhibits
Exhibit I: Major Awards Won by Shahnaz Husain
Exhibit II: Shahnaz Husain Receiving "Udyog Rattan Award" from Former President of India,
Giani Zail Singh.
Exhibit III: Ayurveda
Exhibit IV: The Shahnaz Husain Product Range*
Exhibit V: Ayurvedic Panchkarma and Dhara
Exhibit VI: The Shahnaz Husain Beauty Schools

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