Did you know that the famous business tycoon Vijay Mallya once owned one of India’s biggest paint companies, Berger Paints? Even more incredible is the story of how he lost it, and how two brothers turned that failing company into a ₹10,000 crore success!
This is a true story of risk, focus, and the power of Indian entrepreneurship.
Mallya’s Distraction and Berger’s Decline
Back in 1991, Vijay Mallya did indeed own Berger Paints. However, Mallya’s attention was elsewhere. He was heavily focused on his other ventures: the liquor business and his ambitious Kingfisher Airlines.
As a result, Berger Paints suffered from neglect and was severely underperforming. It was, in business terms, running on “God’s grace”—a complete mess.
The Entry of the Dhingra Brothers
Enter the Dhingra Brothers from Amritsar.
The Dhingras were already successful in the paint industry. Starting with a small shop 20 years earlier, they had worked their way up to become one of the largest exporters of paint from India to Russia. They had big dreams and saw a massive opportunity.
They decided to go all-in: they put everything at risk and acquired Berger Paints from Vijay Mallya. This was a company ten times bigger than their existing business!
The Shocking Truth and the Turnaround Plan
After the acquisition, the Dhingra brothers were shocked. The company was in even worse shape than they imagined. They realized a massive overhaul was needed.
They got straight to work and implemented a brilliant two-part strategy:
- Employee Motivation: They transformed Berger from a slow-moving multinational into a homegrown Indian powerhouse. They motivated employees for growth by offering them stock options, making every employee feel like an owner.
- Smart Management: They cut out all unnecessary costs and implemented strict cash management protocols. No more wasteful spending!
The Unbelievable Result
The results of their focused approach were nothing short of spectacular.
The Dhingra brothers grew Berger Paints from a struggling company with minimal sales to a massive enterprise hitting ₹10,000 crores in sales!
Today, Berger Paints stands tall as the second-largest paint company in India, a testament to the vision and focus of the Dhingra Brothers. They prove that with the right focus, even a failing business can be turned into a spectacular success story.