How the Cycle Agarbattis brand was built Ground up – part 3
Synopsis
This article is the last and concluding episode of the 3 part series in which we briefly delve into the diversification of the NR Group of companies – the Cycle brand Agarbattis parent company. The NR Group turnover is over Rs. 1500 Crores and is growing fast.
In the first episode, we read about the origins of the Cycle Agarbattis. In the second episode, we briefly examined the company’s strategies to grow its business into a multi-product conglomerate.
Diversification is the key to growing business
Organizations that have grown betting on a single vertical generally get into the saturation phase after some time. To earn more revenue, they diversify their business into other verticals. All companies do that, for example, Tatas, Birlas, Amabanis, Adanis, Vedantas, etc. They have become multi-billion dollar companies because they have diversified into related OR unrelated verticals and managed them well.
Cycle Agarbattis: Competition and the market share
When the market was flooded with “me too” products, the NR Group had to face tough competition. Looking at the success of NR Group in the Agarbatti segment, biggies like ITC too launched their Cycle Agarbattis with a bang.
However, after spending Crores of rupees over 18 years, they still are a distant second in market share. That’s the kind of grip Cycle Agarbattis have in the market. No wonder they are the largest-selling brand in India with a market share of 22%, as per Neilson – a market research company. The NR Group’s all fragrances, Pooja Items, and Agarbattis are available Here.
Core strength
The group’s main strength lies in making and selling Agarbattis, Frangances, and perfumery. To make a big splash in the business, they perfected the art of brand and distribution management in the FMCG sector. Doing it over and over for several decades, it has become their core strength.
NR Group companies
NR Group has diversified into related and unrelated verticals. The group companies are as follows
- NR Ranga Rao & Sons – Founded in 1948 and is into Fragrance and prayer products.
- NESSO – NESSO deals with Floral and Herbal extracts.
- Rangsons Aerospace – They are into technology developing and making products for aerospace and defense.
- VYODA– VYODA provides Solar powered irrigation solutions.
- Greylinx – They are into designing and making AI & IOT devices.
- MindfulTMS – MindfulTMS is into offering Neurocare services to patients.
NR Foundation (NRF)
NR Foundation, an NGO, was founded by the patriarch N Ranga Rao to give back to society a portion of the profits made through his business. The foundation is set up for the well-being of all individuals in society.
It is said that when the late N Ranga Rao was starting his fledgling business, he got a lot of support from people who slogged with him to make and sell hand-rolled Agarbattis. He credits his business success to them. With his empire having grown to a multi Crore venture, he started the foundation to give back to society as much as possible.
Activities of NR Foundation
Activities of NRF touch the lives of the poor and downtrodden and have brought a spark in their lives. The foundation undertakes the following works
- Education: Educating and training poor & disabled people so that they can succeed in life. The education also includes skill training.
- Women empowerment: Helping women in every aspect so that they can stand on their own.
- Community development: The NGO help poor communities stand on their own by imparting necessary skill training and even employing them at their units.
- Calamity support: The Foundation lends a helping hand to support local communities in times of natural disasters, by actively taking part in relief efforts, and contributing in many ways.
The activities of the NR Foundation can be understood Here
Conclusion
NR Group has been an inspiration to many. The founders’ passion for what they do, their work ethics, compassion towards people, and above all, determination to meet the goals with all the vigor, can motivate a whole lot of people.
The group has set an example for other business families on how to stay united under one umbrella and march toward excellence together with “Josh”.