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Running a cement plant in Purulia, West Bengal, is perhaps not every woman’s idea of a dream venture. Though the industry is regarded as a traditional male bastion, Vanita Chamria has broken the mould and runs Purulia Cements profitably, churning out 1,000 tons of cement a day.

“I merely wanted to be in a sector that was profitable. I had to work as hard as any other successful entrepreneur,” says Chamria, shrugging off the woman-in-male-territory tag. Today, her company employs 600 people and has an enviable dealer network across the districts, thereby reaching out to the entire populace in West Bengal. Chamria plans to increase the plant’s capacity by 200 tons.

Profitable area
The only comfort zone that Chamria hit when deciding upon her venture was the location—Purulia. That’s because her maternal grandmother lived there. Not only was Chamria familiar with the area, she was also emotionally attached to it. The biggest draw, however, was that in the early 1990s, the West Bengal government handed out incentives and subsidies to those who set up industries in the backward districts of the state.

After doing some research on what sector to enter, Chamria opted for cement after considering options such as pig iron and iron and steel. “I realized that cement was a product that was suffering from the usual scenario of supply not meeting demand in West Bengal,” she recalls. She also realized that this product would always be in demand, especially in West Bengal, which was just about opening its doors wider to industrialization.

However, being armed with incentives and subsidies wasn’t enough. Chamria put in Rs.40 lakh of personal investment, and with an initial loan offering from West Bengal Finance Corporation (WBFC), the plant began to take shape. Interestingly, WBFC remains its oldest loan financial body. Then there was the competition from the big daddies of the sector—L&T, ACC, JK, ACC and others. Pragati Cements, Chamria’s brand of precast, prestressed concretized (PPC) cement, was a new entrant. Selling a local brand in the face of such stiff competition was a source of worry for Chamria.

However, she was aided by a local phenomenon. There are no limestone quarries in West Bengal, which means that clinker—one of the components used to make cement—was to be brought from outside, usually from the Satnam Belt, which comprised Madhya Pradesh, Uttar Pradesh, Maharashtra and Rajasthan.
Chamria followed this pattern, as did the other cement companies. So, any arguments that Pragati Cement could be of inferior quality was ruled out at the outset.

Planting deals
But Chamria’s job was to convince the dealers about the same. Her strategy was to have them visit the plant and see the production for themselves. “I had chemical tests done by independent bodies to prove that my cement quality is at par with the best,” says Chamria.

This faith in the product also made her obstinate about her pricing; she refused to mark it lower than that of the best. She also took part in seminars and conferences organized by the government on issues like industrialization, and urged government bodies to encourage a local brand of cement—hers. She would tell them to buy a fraction of cement from her and test her product first.

She had full confidence in the quality of her cement, and this gamble ultimately paid off; gradually, she started to get orders from government organizations. Chamria even went to the extent of telling dealers that she would compensate them if there was any problem with the cement. This proved to be a very good approach. The dealers started to come around, and today, Purulia Cements has a network of nearly 800 dealers in West Bengal.

Chamria still believes that they are her biggest clients; the company keeps coming up with plenty of incentives and special prize schemes for dealers. “I also have my ears firmly to the ground where dealer feedback is concerned because they are crucial to my future growth,” she says.

Small makes big business sense
And that’s how Chamria launched Ordinary Portland Cement (OPC) three years ago. Dealer feedback also pointed Chamria toward a bigger market: people who wanted five to 10 kg cement for small repair work. “[These consumers] are not completely sure about the quality of cement that they get from an opened 50 kg bag, which they can opt for at a hardware store. Thus, we came out with five to 10 kg bags five years ago,” Chamria elaborates.

These products are being stocked even by dealers who don’t normally deal with Chamria’s brand. “I agree that it doesn’t really make business sense, since the cost of packing material and transportation is nearly doubled. But it does give us access to a far bigger playing ground,” says Chamria with a smile.

Talking about her insights and strategies, Chamria stresses that an entrepreneur must be calculative. “Whether it is about taking risks or sensing the market, an entrepreneur has to be very calculative. There’s no such thing as a ‘gut feeling’,” she says, adding that for her, everything has to be on a balance sheet. “I also put a lot of faith in rigorous planning, in dotting all the i’s and crossing all the t’s,” she says.

Gender bender
But coming back to the question of gender, didn’t Chamria ever feel she was at a disadvantage being a woman in a primarily male-dominated sector like cement? “After the initial pleasantries, the person you are negotiating with is concerned with how well-versed you are with your line of work and how well you have done your homework,” says Chamria. In fact, she does confess that she is more organized and a far better planner than most of her male counterparts. So, what’s next on Chamria’s to-do list? “Apart from diversifying into real estate and the infrastructure sector, you mean? To lose a few pounds,” she signs off.

©Entrepreneur May 2010

Tags:
cement, Purulia Cements, Vanita Chamria, women