V-Guard: Young MD takes guard

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The CPI(M) 20th party congress is on in Kozhikode and in Kochi the youngest scion of V-Guard has taken over. Coincidental but also significant in that V-Guard has debunked the notion that Kerala has been hostile to entrepreneurs because of an overdose of trade unionism.

With a small amount from his father and a borrowed capital of Rs 1 lakh, Kochouseph Chittilappily set out to build the V-Guard industrial empire in his home state way back in 1977. A quarter of a century later, it stands tall with a turnover of more than Rs 1,000 crore, defying the perception that Kerala is not investor-friendly.

And, this Monday saw a change of guard, with the son taking over the reins at V-Guard Industries Ltd, ironically at around the time the upcoming CPI(M) party congress is seeking to reinforce the relevance of the Left – an ideology that is seen to have cut at the roots of entrepreneurship in the state for half a century.

On Monday, Kochouseph handed over the baton to his son Mithun, who would carry out a five-year expansion plan for the company that aims at an annual growth rate of 25-30 per cent. For Kochouseph, who diversified the V-Guard activities to have nine products, starting with stabilizers and moving on to the likes of cable wires and gold business, the transition was a well-planned affair. He is sure, he says, his son as managing director “is capable of doing things better than I did”.

Kochouseph hadn’t had a cakewalk all the way, though. He has fought tooth and nail the militant trade unionism that raised its head at every turn, and proved that industry can withstand such odds and flourish in the state. It was just a few months ago that he, on his own, even unloaded material defying pressure from headload workers, that had the Marxists fuming.

Mithun has his hands full, going beyond the micro-management that he had been doing for the last six years as marketing and finance director. “My father will not involve himself in day to day affairs now, but will be part of the strategy team,” says Mithun. He adds that a few more products, like domestic switch gears and induction cookers, are set to roll out of his production line very soon, though it would not be from within the state. Another product, details of which are not revealed, is also in the pipeline.

On capacity building, he says that at present there is sufficient spare capacity and the setting up new units would be decided later. The company has five units, of which two are in Uttarkhand and Himachal Pradesh. The former, manufacturing wires, was being upgraded and would go full steam by December, he added.

A relaxed Mithun says that the company is a well-oiled machine and taking it to greater heights would be a smooth sail.

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