He left his chartered accountancy course midway to start his own business. And he has no regrets about his decision. For the seed he sowed twenty four  years back is now a tree bearing fruits of success. In an interaction with The Dollar Business, Rakesh Dugar, Chairman & MD, Mitashi Edutainment, talks about his journey as an entrepreneur and what it takes to build a successful business from scratch

Interview by Neha Dewan | The Dollar Business 

TDB: From humble beginnings as a distributor of some gaming brands in 1991 to a leader in TV video game industry in the country and one of the fastest growing brands in the consumer electronics segment, Mitashi has certainly come a long way. How did it all begin?

Rakesh Dugar (RD): After completing the undergraduate course, I started sitting in the family gold shop. But within 15 days I realised that it was just not my cup of tea. I felt I needed to do something different. It was during one of those days when I met Hasmukh Gada, my business partner. We decided to venture into gaming as it was the latest thing and not many were aware about gaming in India at that time. We started taking small but steady steps. The first few months were troublesome for us, but the business started taking shape after that. We decided to create our own brand – Mitashi. In 2004, Mitashi entered the consumer electronics segment and became the first company in India to launch DIV-X DVD Player and Progressive Scan DVD Player. In 2009, we launched a new brand GameIn to focus on gaming. And Mitashi started concentrating on the consumer electronics segment. And after that, there was no looking back for us.

TDB: Over the years Mitashi has diversified into consumer electronics space. What has been the logic?

RD: After decades of rich business experience we know what the consumer is looking for and accordingly try to keep pace with the ever-changing consumer needs. Every Indian buyer consciously looks for how much more can be bought at lower prices. Having understood this typical thought-process, we have been creating products which are high on quality and have multiple in-built features. As we all know, every product has a life and it gets reduced if care is delayed. We have a dedicated and strong service team which addresses technical glitches and is always available when needed.

TDB: Mitashi has always believed in competitive pricing and is known as a value-for-money brand. How has this strategy worked for it?

RD: Being in the consumer goods industry, customer needs and wants are our top priorities. For Mitashi, everyone is a potential customer and is of prime importance to us. Keeping this in mind, customer satisfaction and pricing go hand-in-hand for us because we aim to see our products in every household, thereby catering to all social groups. Our products are optimally priced, such that everybody is happy and satisfied to have bought a value-for-money, branded product. This strategy has worked for us and we hope to continue with the same philosophy and keep launching products that comply with all international standards in the Indian market. 

TDB: What is the differentiating factor for Mitashi vis-a-vis the giants in the consumer electronics space such as Sony, Samsung and LG?

RD: We strongly feel there is no competition from MNCs like Sony, Samsung and LG. Mitashi wants to deliver innovative and quality products to the mass audience at competitive prices, backed by a strong service delivery. As mentioned earlier, we have already created our own space and position in the market. Moreover, there is big potential in the market for all players and there is a lot of scope for growth. I think, if the fundamentals of a company remain same and strong, everything else falls into place.

TDB: What are the primary challenges that hinder growth in your business?

RD: Catering to masses is definitely a big challenge for us. However, by increasing workforce across various verticals we have been able to overcome this hurdle. Knowledge is power and it definitely comes with a good set of experience. Over 20 years of rich experience handling specialised products gives us that edge. And because of this edge we can now tackle any challenge tactfully.

TDB: Going forward, what are some of the new segments that you are planning to carve a niche in?

RD: Mitashi is a household name in the video games market in India. We have already expanded our portfolio by adding consumer electronics products, including audio-video products and electronic products for kids, to it. Recently, we had conducted a consumer survey to figure out the potential market for Mitashi air conditioners. We have received good response and will soon be entering this one of the fastest growing consumer goods categories. Our target is to reach Rs.2,000 crore in revenues by 2020, and we are working on certain drivers that can make this target achievable.

TDB: You mainly import from China and Taiwan. What are the main challenges that you face while importing from these countries?

RD: We have not faced any major challenges while importing from these countries so far. The only issue that I can think of is that the transit and the clearance takes a bit of time. But, that is the case in India as well. So, it is not such a major issue to deal with. 

TDB: Has the ‘Make in India’ initiative in anyway persuaded you to emphasise more on manufacturing?

RD: At present, manufacturing in India makes up only about 10% of our business. Make in India, initiated by Prime Minister Modi, is definitely very attractive if implemented at the policy level. In fact, a lot would depend on the policy implementation.

TDB: What has been your import strategy that has made you thrive in this business?

RD: I think factors such as how you serve the product in the market, how you source, how you take the right products to the right people are all significant aspects that we have always concentrated on. I think all these core fundamentals have helped us along our journey as a brand and has made us grow over the years.

TDB:Import of TV sets is subject to countervailing duty in India. Do you think it’s justified?

RD: I feel the duty is justified as it is equivalent to excise duty when manufactured in India. So, both are the same and it is justified at this moment.

TDB: What are your plans for international markets?

RD: After handling specialised products and catering to the Indian market for over two decades, we now feel these specialised products along with many other innovative products can be made available in the international markets too. We plan to widen our horizon starting from Middle East and Europe in the first phase. We would also be tapping into the US market in near future.