MSMEs which have become BIG – Hospitality & Food Services

When one were to look behind all larger organisations, we will note that at some time they were MSMEs before they became larger organisations starting again as a Small Cap, to becoming a Large Cap. It is this fascinating journey that is key to economic growth of nations, providing the national and international prosperity. That one small idea which turns out to be path breaking, the one process innovation that makes for efficiency and rapid organic growth, that one tech solution which revolutionises the entire industry

Let us look at some very interesting examples of how small organisations have grown to become large enterprises beyond being an MSME

The main industries where MSMEs see opportunity and growth are Hospitality / Restaurants, Retail and of course Business Services

Hospitality and Restaurant / Food Services have seen innovation and a clear differentiator in their product / service as compared to others making them the name identified with the specific category. Soon they have expanded to becoming larger chains and have grown to becoming larger organisations

Lets look at this segment / industry first and in other posts at other industry examples

In the North, we have examples of Dharampal and Sons (https://catchfoods.com/) which is a 1929 started organisation. The Dharampal Satyapal (DS) Group is a multi-business corporation with a strong Indian and international presence. Founded in the year 1929, it is an inspiring and successful business story that blends a remarkable history and legacy with visionary growth and innovation. Catch Spices made its debut in 1987 with the launch of a path-breaking tabletop Salt and Pepper dispenser and the brand has since grown to encapsulate the very essence of cooking which ranges from whole, straight spices to myriad blends.

Another name which comes into mind is the MDH (https://mdhspices.com/), in an amazing career started in Sialkot, present day Pakistan and exposed to the horrors of partition, Mahashayji PadmaBhushan, Dharampal Gulati, re-started his spices business in 1958 and was over time named the Spice King through innovating marketing and packaging, leading to a current capacity of manufacturing 30 tonnes of spices in a day!

Other famous and innovative businesses in a crowded market place are Bitto Tikki Wala (https://www.btwindia.com/) from a road side hawking retail shop selling street food to now a restaurant and packaged foods business, Tunday Kabab of Lucknow established in 1905 in the crisscrossed lanes of Chowk area by Haji Murad Ali where it is still today (https://www.tundaykababi.com/) or Dana Choga (https://danachoga.com/), started in 1994 now with about 15 restaurants, or Pind Baluchi which is operating since 1992, now across nearly 50 stores. We already have mentioned about Haldiram (https://haldiram.com/) and Bikanerwala (https://bikanervala.com/) in another post

Down South, a few names crop up when one were to look up Food Services business – Saravana Bhavan (https://saravanabhavan.com/) which was started in 1981 by P rajagopal is now having more International Outlets (81 across 25 countries), and only about 30 within India. Sangeetha (https://www.sangeetharestaurants.com/) on the other hand started in 1984 has grown to 35 Indian outlets and about 15 overseas restaurants. Thalappakatti (https://thalappakatti.com/) a 1957 formed Biryani Restaurant from small town Dindigul has a chain with over 81 locations where they serve their customers.

In the West Sankalp comes in mind which started in Ahmedabad in 1980, and now operates 250+ operating restaurants globally.

Cafe Coffee Day (https://www.cafecoffeeday.com/) is the Indian home grown Multi location Coffee chain which held back the expansion and growth of other coffee chains including Star Bucks in India. Started in 1996, CCD at one time had nearly 1000+ outlets before controversies embroiled the organisation.

A great place to learn about the Restaurant and Food Services business is from the 1991 established Devyani International Limited (https://dil-rjcorp.com/) which is one of India’s largest operators of chain quick-service restaurants (QSRs). DIL boasts a diverse portfolio of iconic global and successful in-house brands, with an extensive network of over 1,782 restaurants as of March 31, 2024, across India, Nepal, Nigeria and Thailand. It is the largest franchisee for Yum Brands (KFC & Pizza Hut) in India. Devyani International Limited also caters to Coffee enthusiasts with Costa Coffee, is strong in the Food Retail Business category through its Food Courts. Through other business venture, Varun Beaverages which bottles for Pepsico in India ( the largest outside of US), the RJ group has grown in size and business performance on the base of its wisdom of market, a deep understanding of the grassroots realities, the key ability to manage people, and the food and supply chain.

More on these organisations and what makes them grow larger or in some cases remain small but rooted to their limited destinies. Reach us at contact@nat-cons.com if you wish to know how your business can grow beyond the current trendline