At Dharan, the seeds of Vishal Group were sown. There was a textile store run by the Agrawal family\'s first generation of business owners. After their foray into the steel manufacturing industry, the family-owned textile firm was handed down to the following generation as an industrial manufacturing house. At Biratnagar, the company has two steel plants.
After that, the group entered the financial services sector and expanded into imports and distribution. One of the group\'s main firms, United Distributors Nepal Pvt Ltd, distributes over 50 of the world\'s top brands throughout Nepal. Similar to this, the organization is active in a number of industries, including manufacturing, financial services, real estate, and education.
Diversification of Vishal Group
According to Arpit Agrawal, Director of Vishal Group, his father, grandfathers, and uncles were instrumental in advancing the organization. According to him, their family-owned business\' success was largely due to their exposure to international business techniques and the ideas they brought to the organization. While beginning its diversification strategy with the production of steel, the corporation today accounts for 40% of its revenue from distribution.
The Agrawal family has diversified the company into its many sectors. Agrawal believes that the family\'s entrepreneurs\' experience influenced the choice to diversify. One of the family\'s youngest company owners, Agrawal, continues, "If I had to choose between a manufacturing or distribution firm, I would choose the latter. The manufacturing industry\'s market is condensed and tiny. The latter gives me room for both my personal and professional growth. Most significantly, I like working in this specific field.
The Vishal Group and its affiliates are authorized to distribute 50 different FMCG brands in the areas of personal care, food and beverage, electronics, alcoholic drinks, and medications. Agrawal said that Vishal Group wants to be the top FMCG powerhouse in Nepal when asked about the group\'s potential concentration. He gave the impression that the company will keep some of its manufacturing operations, nevertheless.
Leaving behind the competitors
It is difficult to detect the presence of Vishal Group\'s competitors. Agrawal claims that despite selling everything from autos to potato chips, the business barely experiences any competition. We spend so much time working that we don\'t have time to consider competition much. Although it is always helpful to be aware of what our rivals are doing, we are not actually impacted by what they do. We don\'t really care about out-competing our rivals; we just want to expand as a company," he says. Agrawal goes on to claim that the organization is not at all haughty and that arrogance negatively impacts the image of a company.
The group has a sizable market share since it has serviced 35 cities and towns nationwide. And in those cities and towns, it has 60 distributors. These distributors distribute the products that the organization imports and make sure that they are easily accessible to the intended consumers. According to Agrawal, the group\'s items are sold in even the smallest shops in the smallest of towns. He said that the group\'s sales force currently employs more than 100 employees.
The group\'s many goods each have a specific target market, ranging from the general public to high-end niche customers. Agrawal estimates that Mars and Snickers hold roughly 40% of the market, whereas Procter & Gamble goods have a 35% market share in the personal care category. In a similar vein, Volkswagen, which targets luxury clients, has between 10% and 15% of the market for cars in its category. In addition, he says that within a year, the recently launched Royce energy drink hopes to surpass Red Bull as the second most popular beverage.