40 Stress Busters for Executives

by Atul Sharma

  The three of them sat after dinner to deliberate on this issue.

  “Raghav is a grown up boy now. I think we should go by his opinion,” suggested Neha.

  “Raghav, do you see some merit in it or is it an outright no from your side? “asked Vijay.

  “I appreciate your concern about my future. I also foresee good returns from this venture. But I can achieve something in life with my efforts also. Moreover, I want to fulfil Bauji’s dream on that land.”

  “Setting up a mineral water plant on that land will not destroy Bauji’s ambition in any way. On the contrary, it’ll provide us additional financial resources to pursue his dream in a big way,” said Vijay.

  “How’s that possible?” asked Raghav.

  “We should accept Jagdeep’s proposal. Our land near the Giri river is most suitable for this purpose only. You have to wait till the income pours in. I assure you that I’ll then buy a bigger land in Devpur itself where we’ll construct an orphanage and an old age home. This way Bauji’s dream will be fulfilled and you too will have a secure career,” said Vijay.

  “I leave it to both of you to decide,” said Neha.

  “Raghav, it’s a father’s request. Please give your consent,” pleaded Vijay.

  Raghav’s mind was pulled in different directions. He was averse to go against Bauji’s wishes. But Bauji himself had advised him to be a dutiful son. There was value in the proposal as well. Moreover, all this was planned for their financial security only. Ultimately he gave in.

  “Papa, you are the head of the family now. I bow to your wishes but please don’t forget to fulfil your promise.”

  “It’s a gentleman’s promise,” reassured Vijay.

  Vijay’s intuition proved right as the apple crop that year was far below expectation. The last year’s earning of twelve lakh rupees dipped to four lakh rupees only. It strengthened their conviction for having an alternate business.

  Raghav shared this proposal with Nandini.

  “This year the apple isn’t as large and tasty as it was last year,” said Nandini after eating one.

  “Perhaps the apples are also mourning dadaji’s demise,” said Raghav.

  “What did you want to discuss with me?” asked Nandini.

  “Papa’s friend Jagdeep uncle has come up with a proposal for us. We have a land near river. He wants us to start a mineral water plant there in partnership with him. I wasn’t inclined as dadaji wanted to construct a charitable home there. But papa is insisting to go ahead, although for my sake. He says we can fulfil dadaji’s dream by purchasing new land. I have given my consent but I want to know your opinion.”

  “Raghav, I’m a layman in business matters. I’ll suggest you to go by your parents’ wishes. They understand life better than us.”

  Jagdeep felt triumphant when he learnt that they had fallen with his scheme of things. He reached them with a concrete plan.

  “Jagdeep, we have unanimously decided to put our hand in this venture. Now you lay out your plan.” Vijay asked as Neha and Raghav also joined them.

  “I would first like to know that are you willing to start this enterprise in partnership with me or do you want to pursue it yourself?” asked Jagdeep.

  “What are you saying? Are you an outsider?” said Vijay.

  “We have full faith in you and we can be assured if you are involved in it,” said Neha.

  “Raghav, what’s your take?” asked Jagdeep.

  “Uncle, I want that everything should be crystal clear between us in this joint venture, right from investment to profits.”

  “Absolutely. The project needs land and money. You have the land, so your share ought to be more than mine. My proposal to you is that we divide the share between us in the ratio of 60:40. You’ll be the major partner owning 60% assets while I’ll be the minor partner with 40% share. As far as the initial investment of buying equipments and installing machinery is concerned, I’ll contribute 60% of the total cost while you’ll have to contribute 40% only. It is so because I have to cover up the cost of the land. Vijay and I are getting old. After sometime it’s our children who’ll run the show. This way Raghav will own 60% of our company while I’ll distribute 20% each among Sahil and Mayank. Your major share will cover the cost of your land,” elaborated Jagdeep.

  “I think your plan is very transparent and judicial,” said Vijay.

  “Raghav, are you happy with it or do you want some change in it?” asked Jagdeep.

  “Uncle, your plan looks perfect on paper. What about the investment part? Where we’ll get money from?”

  “Raising money is not a problem now-a-days. Banks vie with each other to give loan. We’ll make a registered private company first and then apply for a loan,” said Jagdeep.

  “How do we proceed further?” asked Raghav.

  “My friend in Uttarakhand runs the same business. He bought all

  the equipment from a Delhi based company, ALC Private Ltd. They’ll help us too. We’ll go to Delhi to discuss our project with them.”

  “When should we go?” asked Vijay.

  “I’ll call them to fix an appointment,” said Jagdeep.

  Jagdeep was quick in contacting the management of ALC Private Ltd. through his friend. The company asked them to submit some details to ascertain the ground realities to which they responded swiftly. The appointment was fixed ten days later.

  

  Vijay was impressed to see the premises of ALC Private Ltd.

  “How’s the business of your friend doing?” asked Vijay

  “Fantastic! His success motivated me to embark on this mission,” replied Jagdeep.

  “Is he also doing it in partnership?”

  “He’s a big landlord. He had the land and money to start this enterprise. He has borrowed a small loan from the bank for technical reasons, to avoid taxes etc.”

  “Sir, the boss has called you,” informed the peon in the lounge.

  K.C. Bhatnagar, Vice President of the company, was the person who could transform their plan into reality.

  “We want to start a mineral water plant in Devpur, which is just ten kilometres far from Shimla. We need your guidance to carry our plan forward,” said Vijay.

  “Mr. Jagdeep has already put in the details on my desk. I have got a project report made from the evaluator. Your land is more than sufficient for this project. You have an advantage that it’s near the river.”

  “We also have our own water resource on this land,” informed Vijay.

  “That’s good! I must say that the prospects look very bright for you,” said Bhatnagar.

  “My friend has some reservations about this industry. Can you please clear his doubts?” Jagdeep asked Bhatnagar.

  “Mr. Vijay, I’ll be happy to remove your misgivings,” said Bhatnagar.

  “Do you believe that starting a new brand of mineral water is profitable since the market is already flooded with many options?” asked Vijay.

  “Why not? Every big venture has to start from somewhere. The first step is half the distance. The market is always willing to accept something new, only you should have the conviction to sell your idea,” replied Bhatnagar.

  “But how can a small player like us compete with the multi-national companies?” asked Vijay.

  “Look, you should not think of competing with the big brands in the beginning. Create your own niche, your own identity. This market still requires much more than what is available currently. The concept of bottled water is fast catching up, especially in the urban areas. For hygienic factors, people prefer bottled water to regular supply water. They can afford it now. The inflow of the tourists has increased by 15% from last year and they are the ones who form the biggest market for bottled water. Your place Devpur is in close proximity to Shimla, which is a popular hill station. There are numerous hotels in Shimla and around. Id
ea of a local brand can certainly click there,” explained Bhatnagar.

  “We are completely new to this trade. How’ll we handle the marketing part?” asked Vijay.

  “There are scores of marketing agencies operating around the world. Tie up with them and pay them. It’s then their job to promote your product. As far as the launching of the product is concerned, rope in any event management group,” suggested Bhatnagar.

  “My partner has some apprehensions about the infrastructure part as well,” said Jagdeep.

  “Mr. Vijay, shed your fears. What are we meant for? Ours is a reputed company in the market. Our role is not just limited to start the plant for you; we are there for any further help also. Once we take the task in our hand, we make sure that it goes through smoothly. We have a team of efficient engineers and workers who have technical expertise to start the plant within short duration of installing the machinery.”

  “Can you please elaborate the project report?” asked Jagdeep.

  “Sure. The detailed project report covers all the aspects of the business from analysing the market, evaluating the land, confirming availability of machinery and raw materials to financial requirements. For your plant, the plant capacity will be 10,000 litres per day. The cost on plant and machinery will be rupees 60 lakhs while the working capital required is rupees 47.5 lakh rupees. The total cost of investment (TCI) is 1 crore 60 lakh rupees. The guaranteed return on it is 32.5% when the production starts,” elaborated Bhatnagar.

  “It means we’ll have to mobilise rupees 1.6 crores to start the project,” said Vijay.

  “This is the total cost of investment which includes equipments and labour charges. It’ll take four months to start the first supply in the unit,” informed Bhatnagar.

  “Do you also assist in getting bank loans?” asked Jagdeep.

  “Yeah, we do. But I’ll suggest that you take the loan from a bank in Devpur or Shimla. It’ll be easier for you to transact in a nearby branch,” suggested Bhatnagar.

  “How long it’ll take to complete the process?” asked Jagdeep.

  “It’s up to you. If you can mobilise money in ten days, we’ll take a week only to initiate further,” said Bhatnagar.

  “Thanks. We’ll shortly get back to you,” said Jagdeep.

  Bhatnagar gave his card to Vijay.

  “Feel free to question if you have any further queries,” said Bhatnagar.

  Vijay reached home late. Neha and Raghav were eagerly waiting for him. He elucidated to them their discussion with Bhatnagar.

  “What’s your reading? Are we on the right track?” asked Neha.

  “ALC Private Ltd. is a very reputed company. The VP of the company was very cordial and helpful. I was day dreaming there about the day when Raghav will also become one like him. I see a good fortune for us once the production at the plant starts,” said Vijay.

  Next day Jagdeep and Vijay had a long session with their accountants and legal counsels to deliberate on all financial and legal issues. They reached the villa with complete details in hand.

  “Jagdeep, explain the whole procedure to them,” asked Vijay.

  “We’ll float a company first. The total cost of the project is rupees 1.6 crores. As per our agreement, I’ll pay 60% of the total cost i.e., 96 lakh rupees while you have to pay the remaining 40% i.e., 64 lakh rupees. I have decided to sell my land at Gurgaon because I don’t want to borrow a loan,” said Jagdeep.

  “Will you sell your only property as you live in a rented one here?” asked Neha.

  “I don’t mind selling my property because if I’m selling a property there I’m also making one here. The buyers are standing at my door with one crore rupees in hand,” said Jagdeep.

  “Papa, how’ll we raise our share of amount?” asked Raghav.

  “Don’t worry,” my son, Vijay said with a smile on his face. “I want to disclose it to you that I have a total of about 40 lakh rupees in banks in the form of regular and fixed deposits. Now we have to raise another 25 lakh rupees only.”

  “What have you thought regarding that?” asked Neha.

  “My accountant has settled this issue with a private bank. We’ll borrow a loan of 25 lakh rupees. We’ll have to pledge our orchard in return. Once we pay the complete loan, we’ll retain its rights,” informed Vijay.

  “How much time will it take to clear the loan?” asked Neha worriedly as they had never borrowed a loan in their life.

  “Don’t worry,” said Jagdeep. “Once the production in the plant starts, this amount will be like peanuts for you.”

  “What about the name of our company and our mineral water brand?” asked Raghav.

  “You suggest something,” said Jagdeep.

  They deliberated on a lot of names before Raghav came up with an appropriate choice.

  “Himalayan, how’s it?”

  “It rocks,” said Jagdeep as Vijay and Neha also nodded their heads in confirmation.

  “The name Himalayan will give a local identity to our brand,” said Raghav.

  “Do you also have any name in mind for our company?” asked Jagdeep.

  “Nothing in particular but I think that we should name it on the same line,” replied Raghav.

  ‘‘Himalayan Products Limited. Does it suits?” asked Jagdeep.

  “Perfect. But we’ll make one product only,” said Raghav.

  “If we get a good response, we can start the production of other items like juices, jams, squashes etc.,” opined Jagdeep.

  “Congratulations to all the Directors of the HPL,” said Vijay giving a short name to their company.

  “Everything looks so exciting. Will the real picture be so rosy?” asked Neha.

  “Have faith in God,” replied Vijay.

  “One more thing,” said Jagdeep. “We’ll have to visit Delhi frequently before and after the work starts in the plant. It’ll be convenient if we have a single representative to deal with them.”

  “Who’ll be that?” asked Raghav.

  “My view is that Vijay should represent us,” said Jagdeep.

  “No way,” replied Vijay immediately. “Neither do I know much about the paper work nor do I want to go to Delhi every second day.”

  “Raghav, can you shoulder this responsibility?” asked Jagdeep.

  “I don’t mind toiling hard but I have to complete my study first,” replied Raghav.

  “Bhaiya, you know the paper work more than anyone else,” Neha said to Jagdeep. “Why don’t you represent us?”

  “I have no qualms in shouldering the extra burden but I was apprehensive because for this purpose you’ll have to give General Power of Attorney (GPA) to me. Under it I’ll have the right to decide any matter related to the company on your behalf as well,” said Jagdeep.

  “What’s the dilemma in it? Do you think we’ll doubt your intentions?” asked Vijay.

  “Business matters are different from personal relations,” said Jagdeep.

  “What’s the procedure to make GPA?” asked Raghav.

  “It’s a registered document made in the court of law,” informed Jagdeep.

  “Get the papers ready. I’ll sign the papers tomorrow as I have to visit Shimla to get the loan amount transferred to our company’s account,” said Vijay.

  “Is it wise to give all the powers to Jagdeep uncle?” Raghav asked after Jagdeep had left.

  “I know him from childhood. I have spent more time with him than I have with Vineet,” replied Vijay confidently.

  “Shouldn’t we take chachu’s opinion?” asked Raghav. “He is a lawyer.”

  “No,” replied Vijay. “Vineet always had a disliking for Jagdeep. He’ll pin-point many faults in our collaboration.”

  Vijay went to Shimla to submit the registration papers of the orchard to the bank. He then signed the GPA papers in the Court.

 
‘The major partner of the company Vijay Anand authorises the minor partner Jagdeep Sahni to attain the General Power of Attorney and to take any step in behalf of the company.’

  Above stated clause in the agreement gave absolute power to Jagdeep. Raghav realised this when he read the agreement but he was a spectator in this game and not a player.

  Raghav met Nandini in the Mehfil Restaurant one day.

  “You spend most of the time at home now-a-days,” said Nandini.

  “It has all to do with our new business and do you know we have got our company registered,” said Raghav happily. “We have named our company ‘Himalayan Products Limited’ and the name of our mineral water brand is ‘Himalayan’.”

  Nandini was overjoyed.

  “So today I’m sitting next to the Managing Director of Himalayan Products Limited. Sir, can I take your autograph,” she asked euphorically.

  “Nandini, just pray that everything falls on place. We have given our land as well as all our money for this project.”

  “Relax. You’ll definitely succeed,” said Nandini.

  Some days later Jagdeep reached the villa with a box of sweets in hand.

  “Why are you so happy?” asked Vijay.

  “I got one crore ten lakh rupees for my land in Gurgaon. I have

  submitted the whole amount to ALC Private Ltd. These are the clearance

  papers and the work will start in a few days,” said Jagdeep joyfully.

  Raghav read the papers which stated that the total amount of 1.6 crore rupees has been deposited in the account of ALC Private Ltd. It includes rupees 1.35 crore by draft and rupees 25 lakhs in the form of a loan amount. The company takes the contract to install complete machinery and equipments in the plant of HPL in Devpur.

  “I’ll leave. I have a lot of work to do now,” said Jagdeep.

  “I told you that I know my friend very well,” said Vijay.

  “I am relaxed after seeing the documents,” said Raghav.

  “Thank God!” said Neha. “I’m most relieved. I talked to Vineet last evening. He was angry that we didn’t consult him before embarking on this path. He was very furious to learn that we gave GPA to Jagdeep bhaiya. Even Rajni didi isn’t convinced with the idea of setting up a mineral water plant.”