Title : SUCCESSFUL AGRO BASED INDUSTRY IN RURAL AREA: A CASE STUDY

OF GHODAWAT GROUP.

Author : Mr. Purushottam Arvind Petare. (Assistant Professor, Sanjay Ghodawat

Institute, Faculty of Management, Kolhapur.)

Co-Author : Dr. Pratapsinh.V.Mohite (Associate Professor & Head, Department of

Accountancy; Arts & Commerce College Ashta.)

ABSTRACT

The agro based industries assume great significance in the Indian economy, where
agriculture is backbone of the Indian economy through providing employment opportunities to
more than 60% population & live hood to majority of the people. In india more than 70% of the
people are living in rural area. Hence there is a need of rural development for accrediting overall
economic development.
Rural development can only possible through establishment of agro based industries in rural
area which help for the development of agriculture & rural economy. Hence it is necessary to
focus on contribution of Agro based industries in rural economy thus researcher chosen
Ghodawat Group a successful agro based industry in rural area.

KEYWORDS: - Sanjay Ghodawat Group, Agro based industries, Stature, capabilities, and
offerings.

Introduction:

The economy of India is primarily dependent on agriculture. About 70 percent of the total
population live in rural areas and are directly or indirectly engaged in a wide range of
agricultural activities. It sustains the livelihood of rural people and plays the principal role in
building their household food security and meets all the needs. The agriculture sector comprises
crops, horticulture, forests, fisheries, and livestock sub sectors. Grain industry, Jute and textile
industry, Sugar industry, Tea industry, Leather industry, Frozen food industry, Salt industry,
Small and Cottage industry, Fish industry, Poultry industry, Dairy industry, Seed industry, Paper
and Hard- board industry are the representative of our agro-based industries. So, agro based
industries in rural area playing an important role and help in the development of agriculture & rural
economy.

OBJECTIVES:-

1. To take an overview of Sanjay Ghodawat Group situated at Jaysingpur a rural area.

2. To study the Agro based industries run by the Sanjay Ghodawat Group in Jaysingpur.
3. To take an insights about the success of Ghodawat Group Agro Industries with respect to The
Stature, Capabilities, and Offerings.
RESEARCH METHODOLOGY:-

DATA COLLECTION METHOD:-

Primary Data:
The primary was collected by discussions and interviews with various plant heads, supervisors
and staffs working in Ghodawat group at different units.

Secondary Data:

Secondary Data was collected by websites, journals, articles, newspapers & books.

INTRODUCTION:

The man behind the Sanjay Ghodawat Group is Mr. Sanjay Ghodawat. He has many Businesses.
But his Core Business is Tobacco Products mainly “Star” Gutkha (Pan Masala) which is a very
popular brand in Western Maharashtra. Sanjay Ghodawat has made his fortune from Star
Gutkha.

From pan masala to wind power and now iron ore mining is a major jump, but one that Sanjay
Ghodawat, the dynamic young CMD of the Kolhapur-based Ghodawat group of industries, has
facilitated with ease. Ghodawat Pan Masala Products (I) Pvt. Ltd. was set up in 1994 to
manufacture pan masala under the brand name 'Star'.

Mr. Sanjay Ghodawat, a well-known personality in business circles, is regarded a legend in

Kolhapur, one of the largest districts of Maharashtra for his immense contributions in the
professional and social arena. He is a Chief Patron of Jain International Trade Organization and a
member of many social clubs.

Sanjay Ghodawat has started his fortune in 1993 with 2 main divisions - Mouth Freshener and
Floriculture. Within 15 years only the group has achieved a strength of 5000 employees and the
annual turnover of Rs.800 Crore.

Today the group is present in various sectors like - Wind Power, High-Tech Agriculture,
Chemicals, Flexible Packaging, Edible Oils, Real Estates, Heavy engineering, Textile division
and FMCG.

Mr. Ghodawat set up India’s second largest manufacturing plant of Oxalic Acid having a
capacity of 25TPD under the name – ‘Star Oxochem Pvt. Ltd.’ at Chipri (Jaysingpur) with most
of the production being exported. Going further, the Group diversified into manufacturing of
flexible packaging under the name ‘Star Flexi-Pack Industries’ and acquired three companies
with interests in real estate and wind power – Everready Investments Pvt. Ltd., Diana Watches &
Ancillaries Pvt. Ltd. and Topaz Investments Pvt. Ltd.
In 2002, Mr. Ghodawat further expanded his horizons and ventured into FMCG and established
one more industry under the name ‘Shrenik Industries’ at Chipri (Jaysingpur) which got into
marketing of edible salt under the brand name ‘Star Salt’. The product was a huge hit within six
months of entering the market. In the following year, 2003, Mr. Ghodawat set up two more
companies: ‘Ghodawat Foods International Pvt. Ltd.’, for manufacturing edible oils from
Sunflower, Palm, Soyabean, Groundnut, Kardi, etc. under the ‘Star’ brand and ‘Shreya Exports’
to manufacture, sell and export tea products under the ‘Star Tea’ brand. In 2004, Mr. Ghodawat
launched a new brand ‘Star Mosquito Coil’ and by 2005, he started the manufacture of ‘Steel
Tubular Tower for Wind operated Turbine’ under Heavy Engineering Unit of Shrenik Industries.
Currently, Mr. Ghodawat is working on his new project – Sanjay Ghodawat Institute, which
comprise Engineering, Management and Polytechnic College and an International School.

INSIGHTS ON GHODAWAT GROUP

Under the dynamic stewardship of the visionary Mr Sanjay Ghodawat, the Group is India’s No.1
in floriculture and manufacturing of oxalic acid, has strong presence in renewable energy,
FMCG, textiles, mining, real estate and growing substantially in education.

Headquartered in Kolhapur in Maharashtra - India, the Sanjay Ghodawat Group has turned
conventional wisdom upside down by leveraging the lower cost of land and the availability of
dedicated manpower to more than offset the increased cost of logistics resultant from being
located away from the industrial concentrations. As a result each company within the Group
delivers high value products economically.

It has been a hallmark of the Group that it has identified areas which will be greenfield in the
future. It has used this uncanny capability of picking winners to create a substantial
conglomerate that always enjoys the first mover advantage. Developing infrastructure and
resources locally has been a key thrust area. By creating employment and opportunities locally,
the Group has earned immense respect and loyalty from the local populace. The Group is now
poised to go places by replicating its successful model in remaining parts of India and also plans
to look globally for further opportunities.

Vision
To become an enterprise worth emulating by delivering customer satisfaction through value
added products in diverse industries.
This vision has provided the road map for diversification into high value industries of the future
critical for the Country’s economic development and for investment in technology to earn
customer satisfaction.

Mission
To build enduring relationships with Customers, Suppliers, Employees, Associates, Channel
partners and Peer groups by leveraging the very latest technology to provide high quality
products and services, thereby creating a productive work culture while ensuring betterment of
the society and preservation of the environment.
The single-minded devotion to build lasting relationships with its stake-holders at the same time
contributing to betterment of the society and preservation of environment has been instrumental
in the Group’s meteoric rise in stature.
Philosophy
Grow to be the biggest, the best and the most valuable.
This simple philosophy has enabled the Group to treat each success, each achievement as a
milestone and has spurred it to redouble its efforts to go from strength to strength by raising the
bar to the next level.

Values
Treat people – Employees, Associates, Channel partners, Peers, etc. - as part of our extended
family and work incessantly towards their welfare.
• Follow fair trade practices and utmost transparency in all business dealings
• Be a socially responsible corporate citizen by paying back to the society what we earn from it
by contributing generously to social, medical and educational causes to help the down-trodden
• Contribute to the development of the Country.
• Work ceaselessly for protection of the environment such strong values prove the Group has its
heart and soul in the right place.

DATA ANALYSIS & INTERPRETATION:

GHODAWAT GROUP: SUCCESSFUL AGRO BASED INDUSTRY IN RURAL AREA.

The cornerstones of the Sanjay Ghodawat Group’s journey have been the mantras of Integrity,
Meticulousness, Discipline, Value Creation, Social Relevance, Sustainability and Total Honesty
whether in creating products or in transacting business. Looking several years into the future and
planning accordingly has been the key strength of the group.

So whether it’s Floriculture or Renewable Energy, Consumer Goods or Education, Packaging or

Textiles, Food Processing or Chemicals, Infrastructure or Real Estate, whatever they do, is with a
clear eye on the future.

1) GHODAWAT AGRO:
Ghodawat Agro is India’s No. 1 in the field of greenhouse based flower supply. It has taken the
Group just over a decade to stamp their presence in the Indian market and to gain strong
footholds in key export markets. The Group will soon be a world class entity both in terms of
size as well as portfolio. Ghodawat Agro currently supplies more than a quarter of a million
stems of flowers each day from approximately 60 hectares under greenhouses. This capacity is
set to increase to more than 200 hectares and over 1.5 million stems per day in the near future.
Armed with the coveted Global Gap, SEDEX and ISO 9001:2008 accreditation, the company is
well entrenched in sophisticated markets of Asia, Asia Pacific, USA and Europe. Ghodawat
Agro’s offerings include such global favourites as Roses, Gerberas, Lilies, Carnations, Gladioli,
Bird of Paradise, Gypsophilla and many more to be launched. Its herb and exotic vegetable
portfolio includes Chinese Cabbage, Iceberg Lettuce, Tarragon, Ginger, Chives and Oregano.

2) GHODAWAT CONSUMER PRODUCTS:

‘STAR’ brand of consumer products are significant players in their markets today and enjoy
tremendous consumer loyalty and preference. Ghodawat Consumer Products is on the cusp of
explosive growth into other products and regions and aims to become one of the largest
consumer brands on the sub-continent. The ISO 9001: 2000 accreditation has contributed to
the acceptance of the ‘STAR’ brand by consumers across the Country. The Group currently
produces more than 1000 MTPD of edible oils and supply triple refined, extra free flow, white
crystalline, dirt-free salt conforming to IS: 7224 standards and mosquito repellents across the
region. The group offerings Edible Oils - Soya, Sunflower, Groundnut and Cotton Seed,
Salt and Mosquito Repellents.

3) GHODAWAT TEXTILES:

Right from the outset, the Group will be a very significant player amongst Indian Denim
manufacturers in India. By the time the Kolhapur unit attains full capacity in three years it will
be manufacturing 3-4% of India’s denim. The Group’s vision is to be among the top 10 players
globally. The first unit at Kolhapur is being set up with a capacity of 30 million meters per
annum. Between 25-30% of this production is earmarked for exports. Over the next 3 years this
capacity will increase to 75 million meters per annum and group offerings Denim fabric in the
medium to premium ranges. The company is a reputed player with a capacity to produce 6
million meters of fabrics per annum. The company is currently in expansion mode. The fabrics
are produced on the most advanced Picanol Omnijet and Picanol Gammax Rapier weaving
machines equipped with 8 colour weft insertion with fancy let-off attachment to produce a wide
range of fancy fabrics. The weaving shed is equipped with Luwa Humidification Plant. The
Group plans to enter the garment manufacturing and export business in the near future. they
Offerings a wide range of fashion and functional fabrics including Shirting, Voils, Cambric,
Popline, Stretch Fabrics, Oxfords, Cambrays, Yarn dyed stripes and checks as well as structural
fabrics in Cotton, Polyster, Viscose,Linen, Lycra and high performance blends.

4) GHODAWAT EXCELUS STAR FOODBEV:

Back ending snack food manufacturing for many consumer giants speaks volumes for the
quality, consistency and reliability of the company. We are already a large operation and are in
rapid expansion mode. The company will grow its manufacturing capacity by more than 200% in
the next 2-3 years. Starting with a 10,000 MTPA manufacturing facility for the snack food range
at Kolhapur, the company is already in the process of expanding to another facility in Gujarat. A
plant in southern India is also on the anvil. The capacity upgrade in the next 2-3 years should
bring installed capacity in excess of 25,000 MTPA. The group offerings Fried Snacks, Ethnic
Namkeens, Non-fried Snacks, and Potato Chips.

CONCLUSION

Sanjay Ghodawat Group has its presence in almost every field including agriculture, renewable
energy and chemicals. A person starting from scratch and scaling great heights is not always a
Bollywood story. Sanjay Danchand Ghodawat who heads the well-known Sanjay Ghodawat
Group based in Jaysingpur, Kolhapur district has done it in real life. Rural development can only
possible through establishment of agro based industries in rural area which help for the
development of agriculture & rural economy & Ghodawat Group is a Successful Agro Based
Industry in Rural Area.
References:-

1.http://www.ghodawatagro.com/
2. http://economictimes.indiatimes.com/topic/Sanjay-Ghodawat-Group
3.http://www.businesstandard.com/article/companies/http//pagead2.googlesyndication.com/
pagead/show_ads.js
4. http://www.ghodawat.com/Consumer_products.html
5. http://www.ghodawatenergy.com/
6. http://www.ghodawat.com/Mining.html
7. http://www.ghodawat.com/Realty.html
8. http://www.ghodawat.com/Textiles.html
9. http://www.ghodawat.com/Oxochem_chemicals.html
10. http://www.excelusstar.in/
11. http://www.sginstitute.in/