Enterprise

Immigrant taps lucrative deals in high-end hotels

shah

Businessman Sudhir Shah, owner of Clique Limited at his business premises on Mombasa Road, Nairobi last week. Photo/Correspondent

After clearing his secondary school education in India, Sudhir Shah flew to Kenya in search of greener pastures. An optimistic Sudhir embarked on a journey to achieve his dream to own a business.

“My experience in school was not enjoyable, but my uncle  told me that I may  have failed in education but  I had a rare passion for entrepreneurship that if developed could translate to successful business,” Mr Shah, Clique Limited owner told the Business Daily at his office on Mombasa Road in Nairobi last week.

“I was deeply  passionate about owning a successful business.’’

The company is a supplier in the hospitality industry.

After he arrived in Kenya, he sought his friends and spent most  of his times with them doing menial jobs. At the same time, he maintained a close link with his uncle who was monitoring  his progress.

“I used to earn peanuts but this offered me an opportunity to learn the struggles that underline any successful business,” he says.

“When you have passion for something, God always provides  you with the people to take you where you want.’’

However, Mr Shah faced a lot of challenges in his quest to own an enterprise. His attempts to borrow from banks did not succeed.

However, he had support of his uncle as well as values gained from his close family.

According to Michael Musau, an investment  adviser at Assante Global Associates, many Indian-owned businesses owe their success to family values.

“Inheritance is another factor that favours them and this creates continuity to the offspring when they come of age,’’ he says.

But for Mr Shah, he had very few options but to seek friends who acted as guarantors for a Sh2.5 million bank loan. To start him off, he bought out Clique Limited, then a struggling company based at Lang’ata in Nairobi, in 1995.

“The company was involved in cosmetic business, but after taking over, I diversified  into hospitality industry targeting high-end hotels with supplies like toiletries, linen, crockery and glassware,’’ he says.

“I retained the name when I took over to  ride on its brand.”

After the acquisition, he spent the first months planning his next move.

“In every business, strategies must be put in place to ensure continuity. This took me longer than expected to get things right,’’ he said.

“My uncle continued to guide me and offer insight on opportunities in the hospitality industry in Africa and the need to market myself as a brand.

“He also advised me that reference in business is the best strategy  to success and this only comes with quality service delivery and fair pricing,’’ says Mr Shah.

“We slowed down on consumer products line because  it was very involving and costly.’’

He adds: “At that time, the industry was not competitive and I was able to tap many clients. The returns were not disappointing.’’

His initial client was Sarova Hotels then followed InterContinental Hotel, Serena Hotel and Grand Regency Hotel now known as Laico Regency.

With the growth and new clients, Shah introduced new products as he sought new manufacturers looking distributors in the country.

“I discovered that as the demand for the products went up, financing (the business) was becoming  a big challenge. I had to act fast and look for partners who could  supply me the products on credit,’’ says Mr Shah.

“Another strategy  involved acting as the manufacturers’  distributor in Kenya and earn a commission. Since I was dealing in bulky sales, I made a killing out of the venture and this gave the capital I needed to expand  Clique Limited.’’

He started by importing towels and bedsheets. As the manufacturers gained trust in him, they offered him some of the products on credit.

The strategy worked out very well and within a span of three months, Clique Limited had not only become a powerhouse in the distribution chain but had also struck deals that made the entrepreneur a millionaire few years after he left India with almost nothing.

“We made Sh30,000 in the first month as profit and this was a humbling experience given I had five employees to pay and bills to foot,’’ says Mr Shah. “After some months of dry business, I made Sh500,000. This inspired me.’’

Today, Mr Shah is a successful businessman who rakes in nearly Sh15 million a month as net profit. I am not rich yet, I am also trying to get there,’’ said the businessman who also has operations in Tanzania, Rwanda, Burundi, Sudan, Ethiopia and Uganda.

Currently, Clique employs 50 workers with 200 clients in East Africa.

“We plan to expand to other markets as the demand goes  up in the industry,’’ said Mr Shah.

The businessman adds that the main hurdle in the business is the high cost that comes with the importation of the products, which sometimes affects the  pricing.

The company imports the products from South Africa, Germany and India.

Mr Shah, the man who once lived in squalor says he is not done yet and is ready to take up his next challenge.