BakeryBiz, Nov-Dec, 2020:
Atul Vekariya, Director of Atul Bakery (Multigrain Food Pvt Ltd) talks to Bakery Biz about his daring, dedicated and no compromise attitude which has helped his business to grow from a single outlet in 2007 to the targeted 150 outlets by end of 2020. The group’s focus on exports has seen its growing range of products being supplied to 12 countries. Plans are in place for opening their first international outlet in New Jersey in early 2021. His passion and desire for growth has earned him many accolades and outlined a future path for making Atul Bakery a national name.
Target 150. It must be a wonderful feeling to see the chain of Atul bakery grow. Tell us about your journey? How and when did it all start?
The journey of Atul Bakery started on 26th January 2007 in Surat with a small outlet. By 2010 we had four operational outlets. However, the big expansion came about in the year 2012-13 when my two brothers and my cousin joined hands with me, giving me the much needed support. In 2013 we formed a private limited company and during the same year we moved from having 10 outlets to 18 outlets of Atul Bakery.
Just before the declaration of the COVI D lockdown, we had opened our 100th outlet, and set up our second production centre in Ahmedabad. Between June and end of November this year, after the lockdown was opened up, we added 36 new outlets of Atul Bakery and a new factory in Vadodara. Over the years we have moved to the district levels of South Gujarat and today am happy to inform that we have a total of 136 operational outlets in various parts of the state. In addition to servicing in Gujarat extensively, we have also focused on exports and our range of products is successfully being sent to more than 12 countries.
From an employee strength of 2 in 2007 we have moved to having more than 500 employees. We have received many awards and accolades over the years, including the one for the fastest growing bakery chain. Taking strength from the support that we have garnered, we are targeting to have 150 outlets in this year.
We have always wanted to do something new, showcasing our creativity and new innovative ideas. We became the first Gujarat bakery to be ISO 22000: 2018 certified, become USFDA approved, and bring to our credit the prestigious Guinness World Record.
Tell us more about your Guinness Award?
Since the year 2016, we have been celebrating the birthday of Prime Minister Modi as Atulya Shakti Diwas on 17th September and have got to our credit more than 13 world records for our innovative celebration styles. On 17th September 2016, Atul Bakery entered the Guinness Book of Records by creating a specially designed pyramid cake of 3,750 kg with 7 feet height that was served to 35,000 people.
Please tell us about your development model. How has the franchise route helped you grow?
Development and the model being followed are two sides of the same coin. If you have a proper and well-designed model, only then you can be successful and move on the path of development. Our development model has been based on natural organic growth. Our stakeholders and employees have been the pillars of strength for our growth.
For those who have shown faith in us and have invested in the project from the initial days, it is our responsibility to take care of them. We work towards increasing profitability for our business partners. We have created many training modules for their development. We have identified SOPs for every model, be it production, overall management, transportation, marketing or sales.
A strategy is in place with a micro analysis of day to day operations to focus on better and improved business for our partners. At the same time, we also take care of our employees and ensure that their skills are upgraded continuously. From a humble beginning of 1 outlet and 2 employees, today we have more than 500 employees and are aiming to touch the 150 outlet mark by end of the year. From our initial production of kilograms per day today we produce tonnes per day. We attribute this growth to our approach of understanding the needs and requirements of our customers, partners and employees, who have all supported us and helped us reach this position that we are in today.
What are the future plans for the organisation? Are we going to see outlets of Atul Bakery outside the state of Gujarat too?
We believe in the philosophy that one should not stop and one cannot get tired. Our journey on the path of growth has been currently limited by region. We have now reached out to most of Gujarat, and continuing our journey we will make our presence stronger in Rajkot and Saurashtra region. Thereafter, in the coming years we will reach out to our nearby states of Maharashtra, Rajasthan and Madhya Pradesh. This is our short-term goal.
Our long-term goal is to make Atul bakery a Pan-India brand by 2030. We want our customers to be able to find Atul Bakery wherever they go, from Kashmir to Kanyakumari. We will be opening our first international outlet in New Jersey in the first quarter of 2021. We strive to make Atul Bakery a global brand.
What are the challenges being faced?
Challenges are a part of life and every business has its own peculiar set of challenges. But it is these challenges, which help you grow and are bound to improve your focus and efficiency. I faced many challenges. My first thought of starting a bakery without any subject knowledge was a big challenge. Getting knowledge of bakery products was a big challenge. Going from one outlet to a production centre was a big challenge. Increasing from one outlet to more was also a challenge. Making proper supply chain and taking care of transportation was also a big challenge. We faced all the challenges and converted them all to success. In life and business, there must be challenges. If there are no challenges, there would not be growth. We should be ready to accept the challenge, then we would easily be able to overcome them.
What do you feel about the industry’s future post COVID? What steps must be taken by the industry members to stay afloat during such times? The fight against COVID is not over. Could this be considered as the new normal?
Initially there was a lot of panic and fear amongst people. Now people have understood the ways of precaution and got used to the situation. We should be cautions. We need to be aware. We should focus on ensuring how to best apply COVID guidelines laid down by the government. We must work on ensuring that we deliver our products untouched, hygienic and fresh. This also should be well marketed for customers to be aware. If we follow all the protocol property, then the industry will continue to grow.
The fight against COVI D is going to be a long drawn one. Face masks, sanitisers, and other social distancing measures need to be factored in as the new normal. This new normal is going to be with us for some time. We also need to ensure that we take care of our staff, teach them the value and importance of hygiene and at the same time train them well for following the new normal guidelines.
Your thoughts on the availability of quality manpower in the bakery industry.
It is the responsibility of every industrialist to empower their manpower and make them valuable. A good employer ensures that his employees get quality knowledge, become good quality humans and based on that are able to deliver great quality work. Employees should be treated like a rough diamond and polished and shaped using training and knowledge sharing so as to make them valuable manpower. By doing this and motivating their employees, employers are able to generate quality manpower.
Tell us about your company’s HR policy, and how it does help the staff and the organisation to become successful. Is there impetus on training for your staff members? What is the strategy followed?
HR policy, along with training strategy and modules are used to empower the employees and help them get ready for bigger roles. At Atul Bakery, we do micro analysis of our employees and give them a job based on their skill set and capabilities. We also encourage our employees to move up the ladder and offer regular promotions, to keep them motivated. We have examples of sales executive moving up the ladder to the position of general manager and a kitchen assistant moving to the position of head chef within our organisation.
What do you think about the existing bakery industry scenario in India? How are we fairing when compared to the international counterpart?
Bakery in India is a very big opportunity. Over the years, bakery industry in India has grown substantially. Only those players are moving ahead who have been using technology and training their employees on a regular basis. India is a very big market and people are becoming more aware of the bakery products. We can also capture international markets, as every state and region have special products which can be exported as signature products which would get great support from Indian buyers in the international markets. We need to frequently upgrade our products and systems with the support and use of new technology. To stay competitive one has to move from manual to automation and use technology to increase the scale of business.
What is your take on the existing Bakery industry exhibition scenario in India? Which areas can be looked at for improvement?
There has been a lot of improvement in the bakery exhibitions being held in India. Bakery Business has been continuously bringing new platforms and experiences for the industry and continue the process of creating awareness. Exhibitions play a very important role for the bakery industry professionals. Be it the aspects of ingredients, machinery, packaging, transportation, or consultancy for upliftment of hygiene standards, ISO certifications and export consultancy, there is a lot to learn from the exhibitions. It is important that when one visits the exhibition, it should be in the learning mode. The moment that happens, there is a whole lot that can be achieved, helping in the overall development.
I owe my success to the bakery exhibitions. As a farmer’s son, who has only had primary education, and almost no knowledge about the bakery segment, I attribute all my learnings to exhibitions which I visited. Exhibitions provides a strong base for any business. There are new innovative equipment and products which help in new product development and in creating better finished products for the bakers. In a nutshell, exhibitions help us in improving our business.
What are the emerging trends in technology that the bakery segment is seeing?
To be able to compete in the market and to grow, it is important to adapt to the latest automation techniques. While there are manual and semi automation work areas, it is the fully automated areas, where the products are untouched offering high hygiene standards and use less manpower, that can be helpful in delivering consistently high quality product and cost cutting. In times to come, automation and technology advancement would be the mainstay for overall business development and growth.
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Year of Establishment : 2007
Number of production units : 03
Project -150 : by December 2020
National presence : by 2030
Number of Franchise outlets : 98
across Gujarat. (Plus company operated outlets.)
No of Central Production Units n Surat : 01
Areas of Operation : Entire Gujarat
Number of Units in Surat city/district, totaling : 46
Doing Export business in : 12 countries
No of SKUs : 250 approx.
Production Capacity : 10,000 Tons per month
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