If you are a Millennial, then you have definitely come across the MDH advertisements on your television set with an old man advertising about spices instead of any young age model. This attention-grabbing advertisement was first introduced in 1984 and featured “Mahashay” Dharampal Gulati, the founder, brand ambassador, and CEO of MDH, an Indian spice company.
Mahashay Dharampal Gulati, known as the Spice King or Masala King of India, was a visionary who revolutionized the spice industry. He was the first to introduce and successfully promote the concept of producing and marketing ready-to-use ground spices on a large scale, which was unprecedented at the time.
Regarded as the second largest player in the Indian spice industry, this spice giant had humble beginnings as a small shack in Karol Bagh, but gradually grew over the years to become an indelible brand.
Mahashay Dharampal Gulati journey is inspirational for all of us. From driving Tonga to leaving a legacy of INR 5,400 crores, he faced many hardships and difficulties. What makes his story even more remarkable is that he built a business during a time when people were struggling hard, even to stay alive.
Back then, India was still recovering from the massacres of the India-Pakistan partition.
The early days:
Darampal was born in 1922 in Sialkot, which is now modern-day Pakistan, into a Hindu family that valued honesty and simplicity. Despite his youth, Darampal had a strong drive to accomplish something extraordinary. However, his journey was fraught with failures. He dropped out of school in fifth grade and tried several jobs, but none provided him with a sense of fulfillment.
Following his unsuccessful attempts at various jobs, Darampal tried his hand at selling Henna cones (Mehendi) by going from street to street. However, this approach did not prove fruitful. His father then attempted to set up a separate shop for Darampal and his brother, but unfortunately, luck was not on their side, and the business venture ultimately failed.
After years of trying his hand at various jobs, such as selling mirrors and wood, Darampal ultimately made the decision to settle down and take over his father’s spice shop, which was called ‘Mahashian Di Hatti.’
Darampal was only twenty-five years old when he decided to settle into his business. However, during this time, the India-Pakistan partition occurred, throwing the entire nation into turmoil overnight.
As Sialkot became a part of Pakistan, religious riots erupted, resulting in a great deal of violence and the death of many innocent people. Despite the turmoil, Darampal and his family managed to secure a spot on a train that brought them to Amritsar, located in the Indian state of Punjab.
After arriving in Amritsar, Darampal and his family stayed in a refugee camp for a considerable period before eventually relocating to Delhi. There, Darampal took up the profession of a tonga driver.
Given the responsibility of providing for his family at a young age, Darampal was determined to offer them a good life. However, after just a few months as a tonga driver, he realized that this profession was not sufficient to sustain the kind of life he desired for his loved ones.
Determined to improve his family’s financial situation, Darampal resolved to revive his father’s business. He established a small spice shop in Delhi, which he named “Mahashian Di Hatti,” and which is now recognized as M.D.H.
When Darampal set up M.D.H., India was still struggling to recover from the horrific effects of partition. The country was in a dire situation, with millions of people having lost everything and 80% of the entire population living in poverty.
During that period, running a profitable business by selling quality products was nearly impossible. As a result, most products sold in the market, including milk, spices, and salt, were heavily adulterated.
Despite the challenges of the time, Dharampal dedicated himself to ensuring that his shop sold only pure spices, putting in a great deal of effort and hard work to make this a reality.
Dharampal worked tirelessly with the noble intention of providing the common people of India with the taste of pure spices. He closely monitored every step of the production process, going to great lengths to keep costs low and match the prices of contaminated spices. Despite his best efforts, he made very little profit despite producing the best product in the market.
However, throughout those trying times, Dharampal persevered, driven by the hope of building a brand that the mothers of every household in India could trust when making meals for their families.
When the tables turned:
As Dharampal continued to ensure the purity of his spices, people gradually recognized the difference between his high-quality products and the adulterated spices sold elsewhere. Soon, customers began lining up at his shop to purchase his spices, and Mahashian Di Hatti masala (M.D.H. spices) quickly gained fame as a trustworthy brand in Delhi.
With the growth of his business, Dharampal started to enlist the help of his friends and family, hoping that they would share his vision of providing high-quality spices to the people. Additionally, he began to outsource some of the processes, such as powdering the spices.
Hurdle in the way:
As his business continued to grow, Dharampal faced tougher challenges. He discovered that the contractor who was powdering his turmeric was mixing chickpea flour to adulterate the turmeric powder, despite Dharampal’s insistence on using only pure ingredients.
He realized that many of the outsourcing ventures were using adulterated ingredients, which would betray the trust of his customers. To maintain the trust of his consumers, he decided to end all of his outsourcing practices.
Upon further inspection, Dharampal discovered that even some of his childhood friends and family members, who he had trusted to help grow his business, were taking commissions from the suppliers and agreeing to substandard quality materials. This revelation led him to cut ties with those individuals and build a team of loyal and trustworthy employees who shared his vision of providing pure spices to the people.
Feeling let down by his friends and family, Dharampal decided to invest his entire life savings in opening his own factory. He wanted to ensure that all the spices were powdered under his direct supervision and maintain high quality standards.
Dharampalji’s dedication to providing pure spices led him to establish a brand that became trusted by the mothers of India. Thanks to his efforts, people can enjoy mouthwatering dishes made with high-quality spices.
Perseverance in the face of obstacles paid off:
Because of his remarkable dedication and persistence, as well as extraordinary business acumen, Dharampalji transformed his small spice shop into a globally recognized brand. Today, M.D.H. exports its spices to countries including the U.S., China, Vietnam, U.A.E., Malaysia, Saudi Arabia, Germany, Singapore, and Sri Lanka, with export revenue valued at 351.6 million dollars. His hard work, perseverance, honesty, and efforts paid off as MDH became a well-known brand under his leadership. Additionally, he established a charitable trust, hospitals, and schools to give back to society.
So, this was the story of a man who believed in himself and was able to turn the world upside down by expanding a regular spice business into a full fledged spice empire.
Here are the key takeaways that entrepreneurs can learn from his inspiring journey:
- Perseverance and hard work can help you overcome any hurdle: Despite facing numerous failures and hardships, Dharampal persevered, putting in a great deal of effort and hard work to ensure that his shop sold only pure spices.
- Quality is key: Dharampal was determined to produce and sell only the best quality spices, even though it was difficult to do so during a time when most products sold in the market were heavily adulterated.
- Building a brand takes time: It took years for Dharampal to establish his brand and gain recognition for his high-quality products. Entrepreneurs need to be patient and continue to work hard even when results are slow to materialize.
- Sharing your vision with others can help your business grow: As his business grew, Dharampal enlisted the help of his friends and family, hoping that they would share his vision of providing high-quality spices to the people.
- Outsourcing comes with risks: Outsourcing can be a cost-effective way to grow your business, but it comes with risks. Dharampal discovered that some of the outsourcing ventures he used were using adulterated ingredients, which could have damaged his brand’s reputation.