‘Govt support is key to ensure competitive pricing and expansion,’ says Ramesh Kumar of Haryana Petro Chemicals

Company: Haryana Petro Chemicals

Founder: Ramesh Kumar

Place: Karnal, Haryana

Turnover: Rs 1.5 crore

Petrochemical products are usually used in medicine, agriculture, and food, or in household commodities. But, in 1986, 65-year-old Karnal-based entrepreneur Ramesh Kumar saw an opportunity to target the niche application of petrochemicals in machinery oil. He decided to set up his own company to manufacture good quality machine oil and spindle oil.

With help from the local and state governments as well as some other oil manufacturers, he launched Haryana Petro Chemicals in March 1986 and has invested Rs 10 lakh into the business so far. Kumar’s business clocked a turnover of Rs 1.5 crore last year.‍

Excerpts from an interaction with SMBStory:‍

SMBS: Why and how did you set up the company?

Ramesh Kumar: Initially, I had seen that there was a need for good quality machine oil and spindle oil, which was available at reasonable rates. Looking at this demand, I wanted guidance on how I could manufacture a product. For this, I met officials from the Haryana state government as well as officials from the Centre.

I also met some old machinery oil manufacturers and they guided me on how to use petrochemicals to make machine oil, which made a huge difference. With this technical knowledge, I was able to launch a business to develop and sell the product.‍

SMBS: What is the market size of your sector?

RK: Right now, we are supplying our oil in two states: Haryana and Uttar Pradesh. We also sell in some other nearby areas. In our country, there is a lot of scope to expand our business and we will do our best to do so. We have a big advantage because of our strong relationship with our customers, which I nurtured for forty years of this business. ‍

SMBS: What are your challenges in terms of sustaining and growing the business?

RK: Our main challenge is maintaining the quality of our products and boosting production levels at the same time. It is difficult but I believe challenges can be met if one works hard, is honest, and takes help from the MSME Ministry wherever required. This is especially true if somebody new wants support to establish a new business. Another trick is to maintain all records and document all processes and transactions in writing.‍

SMBS: What is your dream for your business in the future?

RK: Firstly, I will always maintain discipline in our workplace and continue having faith in the relationships we have with our customers. In terms of the market, I wish for our products and brand to settle comfortably in the minds of the customers and also ensure optimum quality of our machine oil and spindle oil. This will certainly help us expand our business quickly. Further, with the right support from the government in aiding Indian manufacturers and motivating local industries to produce good quality products at competitive rates, expansion can happen sooner rather than later. ‍

(This story is published in partnership with the MSME Ministry to showcase success stories of SMEs)