Product details

Shweta, Manmohan, Shivam, and Piyush started a new venture Herbico Beauty Care Pvt Ltd with a registered office cum manufacturing unit in SolanBundi near Bhopal. The initial investment came as INR4 lakh, a lakh of INR from each Partner. With this initial investment, they brought a few pieces of machinery, a computer for office work and some other necessary things for the business operations. Shweta, as per her expertise, looked after the accounts, Manmohan with his limited experience in the field started looking after the Production while Shivam and Piyush distributed the work related to Purchase, Marketing, Logistics and Dealer network amongst themselves. The initial coverage area was the local market of Gwalior. They hired 3 salesmen to market and deliver their products into local markets. Their target segment was directly supplied to the Beauty Parlors and small and mid Size retail shops feeding to these parlors. The initial few days were dull and the first decent and biggest order came after 3 weeks of launch. The order, worth INR 5,000/-, was placed by Amrit Enterprises located at MahrajBada, Gwalior. The first financial year, 2014-15, did not give much response to Herbico. The annual turnover of 3 lakhs left them with a loss of INR40, 000/-. What went wrong at Herbico at the branding front?