A large amount of money is not required to run a business; rather, it is necessary to invest funds wisely in the right place to then expand your enterprise. This is the path R.G. Chandramogan took, who started his activities with only 13,000 rupees, and today his company is valued at 20,000 crore rupees.
Early Years and Education
For R.G. Chandramogan, obtaining a university degree was never a prerequisite for success. After failing a mathematics exam, he left college and started working for a salary of 65 rupees per month. Later, he opened a small ice cream stall in Chennai. More than five decades later, he became the head of Hatson Agro Products. According to Moneycontrol, this company is a public dairy company with a market value of about 20,000 crore rupees.
Origins and Hardships
Although he was born into a family of entrepreneurs, he came from a modest family in a small village in Tamil Nadu. Later, his father moved to Chennai in 1956 and opened a grocery store near Chennai Central station. However, in 1968, the business failed, and the family had to return to their hometown empty-handed.
Motivation for His Own Venture
These circumstances also influenced his education. Chandramogan enrolled in a pre-university course at St. James' College in Palayamkottai but could not complete his studies due to failure in the mathematics exam. After that, his father found him a job in a wooden warehouse in Viluppuram, about 160 kilometers from Chennai. Chandramogan earned only 65 rupees a month and spent a year taking orders and doing physical labor. This experience convinced him that he was capable of running his own business.
How 13,000 Rupees Changed Everything
With the determination to become an entrepreneur, Chandramogan returned to Chennai without involving investors, consultants, or a formal business plan. His father sold the family ancestral land for 13,000 rupees to finance his venture. In 1970, Chandramogan rented a small 250 square foot space in Royapuram, Chennai, purchased a simple ice cream production machine, and hired four employees. This setup could produce 10,000 servings of ice cream daily under the brand 'Arun'.
Transition from Ice Cream to Dairy Business
In the initial stage, he sold the products himself, often moving a cart through the streets of Chennai to reach customers. After working in ice cream sales for about ten years, he realized that there were more opportunities in dairy products than in seasonal frozen desserts. The dairy market in India was growing, but organized business was lacking in most places.
As a result, in the 1980s, he expanded his scope into milk processing. The company gradually added butter, ghee, and yogurt to its range, transforming Arun from an ice cream brand into a comprehensive dairy business. Instead of chasing rapid growth, Chandramogan focused on strengthening distribution, establishing ties with farmers and retailers, and expanding supplies.
Achievements and Recognition
This long-term approach helped Hatson Agro Products become the largest private dairy company in India. By July 2020, the capitalization of the public company exceeded 20,000 crore rupees. According to Forbes, Chandramogan's total net worth is $1.6 billion. In 2023, he ranked 99th on the list of India's richest people, and in 2026, 2481st on the global billionaires list. In 2018, he received the Patron Award from the Indian Dairy Association for his contribution to the dairy industry.