From being duped to a Rs. 1,500 Crore empire. Story of Shashank Paranjape

Shashank Paranjape is one of those who truly define the "Never Give Up" attitude in business. As a young lad, he pursued Chartered Accountancy and initially did plan to finish it too. That is the time when a friend approached him with a brilliant business idea to enter the industrial chemical segment since those products were in demand. He also gave Paranjape assurances that he would help with the technical setup, knowledge and other requirements. On top of that, he gave his word to buy the entire range of products. So, there was ready demand, a ready customer all that was needed was the supply. Paranjape thought this could not get any better, so he dropped out of CA, commenced his entrepreneurial journey and started Paranjape Chemicals in 1982.

Firstly, Paranjape took a Rs. 15 Lakh loan from a public bank. He purchased a plot of land in a western suburb of Mumbai for one - fifth the loan amount and invested the rest into plant and machinery, raw materials and working capital. He spent the first six months into learning the business and was not worried about marketing his products because his friend would purchase them. It was smooth sailing until soon after six months, his friend asked him to ship all his raw materials and he would pay back as soon as they were sold. In good faith, Paranjape did so and his friend duped him and disappeared with goods worth Rs. 7 lakh.

All he was left with Rs. 30,000 worth of chemicals, no network of clients and the spirit to continue doing business. Like a Phoenix rising from its ashes, Paranjape did not lose hope and hired a couple of Marketing Professionals to help him sell the chemicals. Within no time, he was back on his feet and making decent profits. Five to Six months later, at the end of the first year, Paranjape Chemicals made a turnover of around Rs. 1.5 lakhs. But he did not stop here.

He continued the chemical manufacturing business but was not happy with the returns. In 1987, he bought a vacant plot in Pune and planned to build a multi-storey building. He did not have to invest more than Rs. 1 lakh from his own pocket as most funding came from the advance payments made by those who wanted to purchase the flats. Paranjape seeked guidance from his uncle who was a contractor by profession and he guided him (Paranjape) through the processes. This was the beginning of Paranjape Schemes. He also took up a project to develop a family land. Both projects were completed on time and he earned a profit of Rs. 20 Lakhs right at the outset. There was no turning back after this. In 1989, he shut down Paranjape Chemicals and focused on growing the construction business.

From being duped to being an entrepreneur who owns an enterprise worth Rs. 1,500 Crore, Shashank Paranjape has come a long way. His philosophy was simple, he would reinvest every bit of profit he made back into the business. Till date, Paranjape Schemes has completed more than 160 projects and most of his business comes from referrals. His organization has more than 1,000 employees, a turnover of more than Rs. 1,500 crore, a net profit of over Rs. 200 crore and a target of achieving a turnover of over Rs. 2,000 crore.

If you too have entrepreneurial dreams or wish to have a venture like the ones listed above, you need to have faith in your Chatur Idea. You will always wonder who will fund this idea and from where will you find investors. In that case, you can participate in the #BeAChatur Contest and not only be mentored, but also stand a chance to win a whopping Rs.10 Lac funding for your dream startup idea.

Devesh Chawla is the author of this article on Business Mentors. Find more information, about Business Startup Ideas