Loading Ticker...
You Are Here: Home » Entrepreneurship

Here Is How Hitendra Chaturvedi Established A Rs. 100 crore Business In Reverse Logistics

Have you ever heard about reverse logistics? It refers to the backward supply chain network, where a product moves from the end-consumer- the purchaser-to the manufacturer for reuse, discarding or excess sale. This increases the manufacturing company’s overall efficiency by reducing the cost of storing such products and offers an eco-friendly way of disposing them.

Hitendra Chaturvedi

But when I established Reverse Logistics Co. (RLC) in Delhi in October 2008, no one had a clue about what my work entailed. My assignation with the by-and-large untapped potential of reverse logistics did not begin in India.

After graduating in software engineering from IIT Roorkie in 1990, I made my way to the US to pursue an MBA from SMU Cox School in Dallas, Texas, a year later. I spent the next 16 years job-hopping around the country working for Ernst & Young, AT Kearney and Newgistics. It was through my two-year stint at Newgistics, a Texas-based reverse logistics company, in 2000, that I first learnt the ropes of the concept.

In 2006, while I was working with Microsoft, I was sent back to India as an émigré to head their OEM division in India. This gave me an occasion to do my homework on the reverse logistics vertical at home.

Had I known this earlier, I would have been frightened to start a venture. Nonetheless, five months later, armed with a seed capital of Rs 1.2 crore-half of which came off my savings while Mumbai Angels funded the balance-RLC got off the ground.

I made money by negotiating my price with the OEMs and charging them a product-processing fee for overhead costs, such as transporting and repacking these unwanted products, which ranged from garments to electronics and home appliances.

via, image

Share this post

Subscribe to our updates via e-mail or get our  RSS Feed
Enter your email address:

Other Related Stories: