• About us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI हिन्दी
TFI Global
Friday, February 3, 2023
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Dr Jaishankar

    Left’s lobby’s plot to tarnish Jaishankar’s reputation

    The Final Word on Bharat Jodo Yatra: An In-Depth Analysis

    The Final Word on Bharat Jodo Yatra: An In-Depth Analysis

    Artificial Intelligence India

    Unlocking Artificial Intelligence Potential: India’s 2023 Budget and the Future

    new tax regime

    Budget 2023: Income Tax breakthrough for India’s middle class

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Budget 2023’s Delicate Dance: Balancing Fiscal, Populism and the Public Interest

    Budget 2023’s Delicate Dance: Balancing Fiscal, Populism and the Public Interest

    Artificial Intelligence India

    Unlocking Artificial Intelligence Potential: India’s 2023 Budget and the Future

    new tax regime

    Budget 2023: Income Tax breakthrough for India’s middle class

    Union Budget 2023 live updates

    Union Budget 2023 live updates: Modi Govt announces New Tax slab

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Defence budget India

    Modernization of Indian defence: Right trajectory but low velocity

    AK-203 rifles

    Amethi has started producing the dreaded AK 203 for India and the world

    HELINA and VSHROD

    Amidst build up on China and Pakistan border India gets HELINA and VSHROD

    K9-Vajra

    K9 VAJRA: The Made in India weapon that China fears

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    In the Presidential year of G20, they have waged an info war against India

    In the Presidential year of G20, they have waged an info war against India

    Macron-Modi-Biden: France gives India an edge in dealing with the USA

    Macron-Modi-Biden: France gives India an edge in dealing with the USA

    Ajit Doval Jake Sullivan

    The Quiet Revolution: India’s Diplomatic Success in Bringing Tech Transfer

    India UNSC

    UNSC Row: Time for China to choose between Competition and Cooperation with India

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • History
    • Indology
    Ram V. Sutar

    The legacy of Ram V. Sutar: A gift from Bhagwan Vishwakarma

    Dilip Kumar Indira Gandhi

    When Dilip Kumar silenced Indira Gandhi

    Bhagwan Vishnu Bhavishya Badri

    Is Bhagwan Vishnu leaving Badrinath and shifting to Bhavishya Badri?

    Banjara community

    Banjaras are Sanatani and everything else about them is cropped up

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Sharad Kelkar: An underrated gem of Indian Cinema

    Sharad Kelkar: An underrated gem of Indian Cinema

    Sayaji Shinde

    Unrecognized in Bollywood, but Celebrated Everywhere Else: The Tale of Sayaji Shinde

    Anurag Kashyap

    Anurag Kashyap’s new facade: Bollywood’s left intelligentsia plans to befool the nationalist audience

    Govinda congress

    When Govinda started literally pleading in front of Sonia Gandhi

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Dr Jaishankar

    Left’s lobby’s plot to tarnish Jaishankar’s reputation

    The Final Word on Bharat Jodo Yatra: An In-Depth Analysis

    The Final Word on Bharat Jodo Yatra: An In-Depth Analysis

    Artificial Intelligence India

    Unlocking Artificial Intelligence Potential: India’s 2023 Budget and the Future

    new tax regime

    Budget 2023: Income Tax breakthrough for India’s middle class

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Budget 2023’s Delicate Dance: Balancing Fiscal, Populism and the Public Interest

    Budget 2023’s Delicate Dance: Balancing Fiscal, Populism and the Public Interest

    Artificial Intelligence India

    Unlocking Artificial Intelligence Potential: India’s 2023 Budget and the Future

    new tax regime

    Budget 2023: Income Tax breakthrough for India’s middle class

    Union Budget 2023 live updates

    Union Budget 2023 live updates: Modi Govt announces New Tax slab

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Defence budget India

    Modernization of Indian defence: Right trajectory but low velocity

    AK-203 rifles

    Amethi has started producing the dreaded AK 203 for India and the world

    HELINA and VSHROD

    Amidst build up on China and Pakistan border India gets HELINA and VSHROD

    K9-Vajra

    K9 VAJRA: The Made in India weapon that China fears

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    In the Presidential year of G20, they have waged an info war against India

    In the Presidential year of G20, they have waged an info war against India

    Macron-Modi-Biden: France gives India an edge in dealing with the USA

    Macron-Modi-Biden: France gives India an edge in dealing with the USA

    Ajit Doval Jake Sullivan

    The Quiet Revolution: India’s Diplomatic Success in Bringing Tech Transfer

    India UNSC

    UNSC Row: Time for China to choose between Competition and Cooperation with India

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • History
    • Indology
    Ram V. Sutar

    The legacy of Ram V. Sutar: A gift from Bhagwan Vishwakarma

    Dilip Kumar Indira Gandhi

    When Dilip Kumar silenced Indira Gandhi

    Bhagwan Vishnu Bhavishya Badri

    Is Bhagwan Vishnu leaving Badrinath and shifting to Bhavishya Badri?

    Banjara community

    Banjaras are Sanatani and everything else about them is cropped up

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Sharad Kelkar: An underrated gem of Indian Cinema

    Sharad Kelkar: An underrated gem of Indian Cinema

    Sayaji Shinde

    Unrecognized in Bollywood, but Celebrated Everywhere Else: The Tale of Sayaji Shinde

    Anurag Kashyap

    Anurag Kashyap’s new facade: Bollywood’s left intelligentsia plans to befool the nationalist audience

    Govinda congress

    When Govinda started literally pleading in front of Sonia Gandhi

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
No Result
View All Result

HOME » Premium » The story of MDH and the uniqueness of Hindu Business Model

The story of MDH and the uniqueness of Hindu Business Model

Abhishek Kumar Singh
by Abhishek Kumar Singh
7 October 2022
in Premium
0
MDH
707
VIEWS
Share on FacebookShare on Twitter

MDH business model: A few years ago, a term called “Hindu rate of growth” was highly popular in economic circles. It was a slanderous attack on people following Hinduism. The term was used in reference to the stagnant state of the Indian economy during the 1950s to 1980s. Unfortunately, these economists were inspired by the fly-by-night growth model of the Western World.

In India, on the other hand, the Hindu model of growth has always had a better chance of bearing fruit. Businesses built on the foundational values of Sanatan take time to grow, but their growth is more tangible and has higher chances of surviving market onslaughts. And, MDH has shown it.

MDH wale uncle is a school dropout

MDH is believed to be the brainchild of Dharampal Gulati, also known as Mahashay Dharampal Gulati. However, its original progenitor is his father Mahashay Chunnilal. Chunnilal and his wife Mata Chanan Devi used to run a spice shop named ‘Mahashian Di Hatti’ in Sialkot, of modern day Pakistan. The shop was a major hit in the city since the family had a well-established social network. This network was built on the family following the Hindu way of life by gracefully contributing to religious, social and philanthropic activities.

Dharampal, whom we fondly call “MDH wale uncle”, was born to Chunnilal and Chanan Devi on March 27, 1923. By the early age of 10, this child showed no interest in studies. From that tender age, Dharampal started trying his hands in various businesses. He learned the hardships of life quite early, when he was engaged in carpentry, as a cloth merchant, in the hardware business, and rice trading to earn sufficient bucks.

The father and son duo expanded the business

His father came to his rescue and established mini businesses like selling mirrors and manufacturing soaps for him. But Dharampal could not succeed, and at the end of the day, he joined his father’s business. By now, his genetic business mind had learned all the required lessons from multiple failures. It did not take long for Dharampal to establish his authority over Chunnilal’s business. Within a few years of Dharampal’s joining the business, the demand for his family’s spices had expanded to areas like Lahore, Multan, Sheikhupura, Nanakana Sahib, and Lyallpur, among others. And then came the horrors of partition.

Hardship after partition

His family had to flee the reign of terror in Pakistan. Initially, they were stationed in the refugee camp in Amritsar. But soon, the Gulati family realised its futility and headed towards Delhi, where his sister was living with her husband, a government employee. Dharampal’s brother-in-law helped him to attain refugee status and availed whatever benefit was attached to it. But Dharampal was a smart man and had Rs 1,500 in savings.

He spent Rs 650 on buying a tonga, a horse carriage. At that time, it was a popular mode of public transport. To feed his family, Dharampal operated around New Delhi railway station, Qutab Road, and Karol Bagh. He used to charge only 2 annas for a one-way trip. It was only a matter of time before Dharampal Ji gained the confidence to start his own business.

Ready to start a business

He was not only earning enough for his family but was also saving a lot of money. However, his savings were not turning out to be good enough for his family, since Dharampal Ji’s family was a combined one. More and more relatives from Sialkot started flooding his house, and the Gulati family did not find it morally right to turn them away. He started selling cane sugar, which, later, had to be shut down due to low demand.

After witnessing this failure, Dharampal decided to focus on his strong areas only. In 1948, he decided to re-establish his family’s spice business. He bought a small wooden shop in Karol Bagh and gave life to the dying spice trade. But, there were lots of challenges for the Gulati family.

Challenges for business

First and foremost was convincing people to buy spices. At that time, 80 per cent of Indians were living below the poverty line. Naturally, the majority were just keen on buying enough to sustain them. Spices’ being an add-on flavour was considered just an extra, if not a luxury. The second challenge was that Dharampal Ji was not willing to compromise on his integrity to gain market share. He just refused to sell spices of substandard quality.

Both these challenges combined to produce a third challenge, which was producing a standard product while keeping the price low. Additionally, it meant that the initial cost of production would be high while profit margin would be extremely low, with the chances of the shop, ultimately, being a loss-making entity quite high. There was only one option for Dharampal Ji, which was to acquire cheap sources of labour.

Overcoming challenges and expansion of business

That is where the experience of his hardship days came in handy. Dharampal ji and his immediate family forgot the concept of time and worked tirelessly to ensure the quality of spices. The increase in sales was also catalysed by the shop’s advertisement in ‘Pratap’, a popular Hindi newspaper of the time. His consumer base included not only Delhites but also those who had migrated from Sialkot, Multan, and other areas in Pakistan where Gulati’s spices were popular.

Within no time, places like Khari Boli, Gaffar Market, and Chandni Chowk area were flooded with Gulati’s spices. The Gulati family’s second big store was opened in the Chandani Chowk region. But now it has become tougher to manage his business. Dharampal Ji needed more business partners as well as more manpower in managerial positions. He went ahead with the market demand and contracted many suppliers. To keep a watch on the quality of the product, he entrusted extended family members with quality control.

Betrayal forced him to go solo 

Dharampal Ji was doing all this because he could not give 24 hours to his business, not because he did not have an eye for details. But contractors perceive it as some sort of weakness. They started to engage in malpractices which did not go unnoticed in Dharampal Ji’s eyes. His expert senses could catch even a minor change in composition. No wonder he cut ties with a business partner who was engaged in mixing lentils with the turmeric spices.

Dharampal Ji used to give 12 to 15 hours to his business and expected the same from his business partners and friends as well. But his own childhood friend betrayed him. Even his family members started to create trouble for him. Frustrated by all of this, Dharampal Ji decided to go solo and established a large-scale manufacturing unit in Delhi’s Kirti Nagar in 1959. It was an instant hit, and a company named MDH (short form of Mahashian di Hatti) was incorporated in 1965.

The burgeoning profit helped MDH to establish its manufacturing units in places like Delhi, Ghaziabad, Gurgaon, Nagaur, Sojat, Amritsar, Ludhiana, and even Sharjah in the United Arab Emirates. A large part of the credit for this expansion goes to the way MDH was advertised all across India.

Advertising led to exponential growth

By the 1970s, televisions had started to become a regular feature in Indian homes. Additionally, the Hindu ethos also teaches us to respect the elderly. This is where Gulati Ji took advertising into his own hands after a sheer coincidence.

You see, MDH always wanted family-friendly advertisements. For instance, MDH masala is used in family functions like marriages and birthdays, among others. While shooting for one advertisement, Dulhan’s father could not arrive on time, and so, as a stop-gap arrangement, Dharampal Ji himself appeared as Dulhan’s father.

The coincidence became a huge hit, and Gulati Ji’s face became more popular. The spending on TV advertising brought in revenues of gargantuan proportions, and today, this family-friendly brand is estimated to be valued anywhere between Rs 10,000 crore and Rs 15,000 crore. The total turnover of the business is more than Rs 2,000 crore at the current juncture. The company sells 62 kinds of spices, available in 150 packages. They do it through a network of over 1000 stockists and over 4 lakh retailers.

Today, MDH is the second largest player in the Indian spice market and occupies around 12 per cent of it. Not only in India, its products such as black pepper, red chilli, cumin, dhania, coriander, turmeric, blended spices like biryani and chicken masalas, and curry powders are exported to places like the US, Canada, Europe, the United Kingdom, South East Asia, Japan, the UAE, China, Malaysia, and Vietnam, among other geographies. The key sources of its raw materials are Kerala, Karnataka, Iran, and Afghanistan. Even American sanctions have not affected the import of raw materials.

Also Read: Radhakishan Damani – The silent billionaire and the brains behind D Mart

He did not forget his Sanskaar

Despite that level of success, Dharampal Ji walked his talk of staying on the Dharm path. He has established many schools and hospitals and has contributed by marrying off girls from poorer families. Mahashay Chunnilal Saraswati MDH International School Dharampal Ji established more than 20 schools, including Mata Leela Wati Kanya Vidhayala, Mahashay Dharmpal Vidhya Mandir, to name a few.

Dharampal Ji established an eye hospital at Arya Samaj, Subhash Nagar, New Delhi. In memory of his mother, Mata Chanan Devi, Dharampal Ji established a 20-bed hospital in JanakPuri, New Delhi. Today, this hospital has up to 300 beds with facilities such as MRI, CT scan, Heart Wing, Neuro Sciences, and IVF. Poor people are treated for free in the hospital, and the MDH family provides millions to ensure it. In other words, it won’t be wrong to call Dharampal Ji a pioneer of the concept of corporate social responsibility in India.

It is hard to believe that it was done by a person who died with Rs 5,400 crore in his personal kitty. You should not blame yourself for this mistaken assumption because modern capitalism produces highly unequal outcomes that favour the privileged few. But, the Hindu business model does not give such disastrous results. This business model is built on long-term trust rather than instant gratification. MDH’s success is a primary example of that.

Support TFI:

Support us to strengthen the ‘Right’ ideology of cultural nationalism by purchasing the best quality garments from TFI-STORE.COM

Also Watch:

Tags: AdvertisingBusinessDharampal JiHindu Business ModelMahashay Chunnilal Saraswati Shishu MandirMahashay Dharmpal Vidhya MandirMahashian di HattiMata Leela Wati Kanya VidhayalaMDHMDH International SchoolSpices
ShareTweetSend
Previous Post

With the approval of Kejriwal, his minister is on a mass conversion spree

Next Post

Rahul Gandhi at Sonia’s feet: Liberals’ hypocrisy at its best

Abhishek Kumar Singh

Abhishek Kumar Singh

Truth Seeker. Columnist at TFI Media.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Most Read
  • Comments
  • Latest
Xi Jinping, coronavirus, Shinzo Abe, china, Japan, coornavirus, COVID-19, Wuhan Virus

‘Pack up and get out of there,’ Japan to spend $2.2 billion to get Japanese companies to exit China

9 April 2020
ajay devgn karan johar

The man who bullied the Bully – How Ajay Devgn made Karan Johar’s monopoly a joke and forced him to apologize

22 June 2020
Huawei, China, Trump, USA, Xi Jinping

‘Our survival is at stake now,’ Chinese Telecom giant Huawei crumbles after US ban on Semiconductor exports

19 May 2020
T-Series Sonu Nigam Divya Khosla Kumar Bhushan Kumar

T-Series forced to take down Atif Aslam’s video, Divya Khosla trolled. T-Series has a bad day in office

25 June 2020
Meat Ban

A Jain responds to Meat Ban in Mumbai

Public Sector Bank, Government, Bill

Dear bank employees, continue your stride but PSBs will be privatized

anti-Hindi

Anti-Hindi Forever?- In search of a National Language!

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

Sharad Kelkar: An underrated gem of Indian Cinema

Sharad Kelkar: An underrated gem of Indian Cinema

2 February 2023
In the Presidential year of G20, they have waged an info war against India

In the Presidential year of G20, they have waged an info war against India

2 February 2023
Macron-Modi-Biden: France gives India an edge in dealing with the USA

Macron-Modi-Biden: France gives India an edge in dealing with the USA

2 February 2023
Budget 2023’s Delicate Dance: Balancing Fiscal, Populism and the Public Interest

Budget 2023’s Delicate Dance: Balancing Fiscal, Populism and the Public Interest

2 February 2023

Popular This Week

Preity Zinta
Cinema

Preity Zinta – The woman who stood up to the underworld, but paid a heavy price for it

by Paurush Gupta
30 January 2023
Adani-Hindenburg row: Decoding the hidden agendas
Premium

Adani-Hindenburg row: Decoding the hidden agendas

by Abhishek Kumar Singh
29 January 2023
Jacinda Ardern ccp chinese donations
Asia Pacific

Jacinda Ardern is under probe for alleged links with CCP. That makes Kiwi politics completely Sinophilic

by Abhinav Singh
20 July 2020
Govinda congress
Cinema

When Govinda started literally pleading in front of Sonia Gandhi

by TFIPOST News Desk
31 January 2023
Reality of Bageshwar Dham
Analysis

The Bageshwar Dham: The Reality of Dhirendra Krishna Shastri

by Tejasvi Malhotra
31 October 2022

©2023 TFI Media Private Limited

  • Terms of use
  • Privacy Policy
  • Sitemap
No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFI Official Merchandise
TFI हिन्दी
TFI Global
  • About us
  • Careers
  • Brand Partnerships

©2023 TFI Media Private Limited

Follow us on Twitter

and never miss an insightful take by the TFIPOST team

Follow @tfipost