How Udit Mittal built a Rs 10 crore consultancy firm 'Unison International'
Udit Mittal figured he could build a business empire on giving advice while he was in B-school, and gradually build a Rs 10 crore consultancy firm.
Most of us love giving free advice, solicited or otherwise. However, 39-year-old Udit Mittal figured he could build a business empire on it while he was in B-school. "When I was pursuing my masters in business administration programme in human resources from the Delhi School of Economics, I realised I was good at networking. I had developed good contacts in various companies, so many of my colleagues would come to me for job advice," he explains. Mittal managed to help several batchmates land summer internships and final placements, and this is what sparked off his business idea: a company providing manpower and consultancy services. "I found out that there was a huge shortage of people in the textile and fashion industry, so I decided to plug this lacuna," he adds.
Instead of jumping head first into entrepreneurship after bagging his degree in May 1998, Mittal took time to understand the workings of the fashion industry. He even shelled out Rs 60,000 for a specialised threemonth course from NIFT, Delhi, to learn the finer details. Then, armed with Rs 10 lakh, which was a loan from his parents, Mittal went about setting up his company. It took about two months to zero in on the office location—a rented Rs1,500 sq ft space at Panchsheel, Delhi—and get his venture registered.
Finally, in December 1998, Unison International was born. "Initially, I employed just one person to handle the back-end operations, while I took on most of the other marketing-related work," shares Mittal.
He got his first lead from a college friend working for Shoppers' Stop. "I learnt that ITCBSE 1.51 % was starting a new company, Wills Lifestyle, so I pitched my work. I got the deal and was given a free hand to scout for the right talent, right from trainee business executives to head of marketing," he says. Once he pulled off this challenge, 10 other clients came knocking on his door. His turnover in the first year of operations was Rs7 lakh, of which Rs5 lakh came from ITC alone. "We invested heavily in advertising to woo more customers. In fact, nearly 50% of our seed capital went into buying ad space in B2B magazines," says Mittal.
The first year was tough for him on many counts. "I realised that starting a new business in India was very difficult. It requires a lot of formalities and time is wasted as government officials walk into your office and demand money," he says. He also ended up paying a heavy price for being unaware of government regulations. "I didn't know the rules and was operating my business from a residential apartment, which is prohibited. This resulted in the Municipal Corporation of Delhi shutting down the office in the first year itself," he adds. So Mittal had to shift base to a commercial space in the same area.
Just when the going seemed smooth, the recruitment business took a hit as many companies put a freeze on hiring in the face of the recession in 2008-9. "Our revenues nosedived and the thought of quitting the business came to me several times. However, my father encouraged me to hang on. He told me that if I worked hard, I could even convert my HR consultation business into a legacy for the future generations," he says. He took this advice seriously and hung on. In a curious twist, he even shifted his then 30-strong team to a larger 7,500 sq ft office space at Cyber City, Gurgaon, in June 2008. The efforts and confidence paid off. Today, Unison has 60 employees, including backoffice staff and headhunters, and serves around 350 clients across India. "Our business is growing at around 20-30% annually, and last year, we clocked a turnover of around Rs10 crore," shares Mittal.
Next on the cards is an attempt to undertake diversification. Mittal is not only planning to start a matrimonial website, but is also eyeing several verticals like pharmaceuticals. Given his persistence, he is likely to taste success here too.
Instead of jumping head first into entrepreneurship after bagging his degree in May 1998, Mittal took time to understand the workings of the fashion industry. He even shelled out Rs 60,000 for a specialised threemonth course from NIFT, Delhi, to learn the finer details. Then, armed with Rs 10 lakh, which was a loan from his parents, Mittal went about setting up his company. It took about two months to zero in on the office location—a rented Rs1,500 sq ft space at Panchsheel, Delhi—and get his venture registered.
Finally, in December 1998, Unison International was born. "Initially, I employed just one person to handle the back-end operations, while I took on most of the other marketing-related work," shares Mittal.
He got his first lead from a college friend working for Shoppers' Stop. "I learnt that ITCBSE 1.51 % was starting a new company, Wills Lifestyle, so I pitched my work. I got the deal and was given a free hand to scout for the right talent, right from trainee business executives to head of marketing," he says. Once he pulled off this challenge, 10 other clients came knocking on his door. His turnover in the first year of operations was Rs7 lakh, of which Rs5 lakh came from ITC alone. "We invested heavily in advertising to woo more customers. In fact, nearly 50% of our seed capital went into buying ad space in B2B magazines," says Mittal.
The first year was tough for him on many counts. "I realised that starting a new business in India was very difficult. It requires a lot of formalities and time is wasted as government officials walk into your office and demand money," he says. He also ended up paying a heavy price for being unaware of government regulations. "I didn't know the rules and was operating my business from a residential apartment, which is prohibited. This resulted in the Municipal Corporation of Delhi shutting down the office in the first year itself," he adds. So Mittal had to shift base to a commercial space in the same area.
Just when the going seemed smooth, the recruitment business took a hit as many companies put a freeze on hiring in the face of the recession in 2008-9. "Our revenues nosedived and the thought of quitting the business came to me several times. However, my father encouraged me to hang on. He told me that if I worked hard, I could even convert my HR consultation business into a legacy for the future generations," he says. He took this advice seriously and hung on. In a curious twist, he even shifted his then 30-strong team to a larger 7,500 sq ft office space at Cyber City, Gurgaon, in June 2008. The efforts and confidence paid off. Today, Unison has 60 employees, including backoffice staff and headhunters, and serves around 350 clients across India. "Our business is growing at around 20-30% annually, and last year, we clocked a turnover of around Rs10 crore," shares Mittal.
Next on the cards is an attempt to undertake diversification. Mittal is not only planning to start a matrimonial website, but is also eyeing several verticals like pharmaceuticals. Given his persistence, he is likely to taste success here too.
Source : By Amit Shanbaug, ET Bureau
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