“AT YOUR SERVICE”

Entrepreneurship Development Presentation

Group no . 07Dr. Siddharth Darji PR no. 28Ms Dolly Darshan Singh PR no. 29Dr. Nitin Yeola PR no. 32Dr. Raj Rishi Meena PR no. 33

• Name : Mr. Chender Baljee• Age : 59 yrs• Designation : Chairman, Managing Director and

Founder• Royal Orchid Hotels limited • Qualification : BCom and MBA ( IIMA)• Annual Compensation( INR ) : 12,000,000• Corporate headquarters : 7676 Hazard Center

Drive San Diego, California 92108 United States

INTRODUCTION

• This is a Real story of Mr. Chender Baljee ,who worked hard for three decades to establish “Royal Orchid’ a 150 crore Hospitality Business.

• Even though having own family business set – up at Shimla Chender Baljee carved out his own niche

• During his entire 35 years of business journey he saw every possible ups and down

• Certain factors are really not under our control and sheer bad luck may strike again and again leading to repeated failure.

• Repeated bad luck, litigation, strikes, debt, 9/11, SARS all these factors delayed Baljee’s IPO happening by 21 years.

• Enormous amount of patience we need to keep for success to come in our life.

Chender Baljee’s Journey of Business• Initially Mr. Baljee joined his father’s

business at Shimla, but left that very soon. • Then he started a restaurant called

“Fascination” in Shimla. • He started his first hotel as “Harsha”. • He took the risk to start the hotel business in

off-season period. • He subsequently started two restaurants

and a bakery.

• “Harsha” was doing well, but “Fire in belly” compelled Mr. Baljee to do something more. He tried to file his company’s prospectus for an IPO. Unfortunately at the same time the market crashed. His restaurants closed due to some lease issue. The hotel staff went on strike. He has to sell his bakery unit to meet the cash needs.

• Subsequently, the lease of Harsha hotel expired and Baljee had to take bank loan to buy it. Baljee then bid for a land near airport and after facing lot of ups and down, he built a 5 star hotel.

• Simultaneously on family front he has to struggle hard in terms of money as his son went to US for education. All such situations forced Baljee to borrow more and more money.

• Fortunately, in 2001 the Royal Orchid hotel was finally launched but this to followed with misfortune in terms of shock of 9/11. This affected occupancy of hotels. He had debt to repay and at the same time his two sons studying abroad.

• Careful money management and cost control helped in recovery. Baljee did everything in honest manner, he never defaulted on any financial institution payment or salaries to employees.

• Honesty and good relation and his track record allowed him to get loans at lower interest rates.

• 2003 gave Baljee success and ‘Royal Orchid Central’ got its birth.

• In 2004 Baljee won the contract of the hotel METROPOLE.

• By 2004 turnover of Baljee’s company was 15-16 crores.

• In March 2007 , Royal Orchid Revenues stood at 125 crores and PAT (Profit after Tax) at Rs. 35 crores

• Baljee’s 27 year old son Arjun (Hotel management graduate from Combell) is handling an independent project – setting up a budget hotel chain called ‘PEPPERMINT’.

• His Younger son Keshav (24 year old, graduate of Wharton and ISB) looks after new projects and sources deals.

LESSONS WE LEARNTSTATEMENTS PERSONALITY

TRAITS“I wanted to move out of Shimla and do something of my own. I could have gone to any place like Delhi or Chandigarh, but at that time the Bangalore proposal seemed pertinent”

Calculated risk taking

Focused

Motivated

“Pyaar kiya to darna kya. Business kiya to absocho karna kya”

“Basically I am an optimist so I said, chalo- let's see”

Optimistic

High emotional quotient

“But the business could be made bigger andbetter so I decided to go for an IPO”

Ambitious

“The easiest thing is to make a spreadsheet but assumptions are on paper only.”

Practical

“When business is tight you monitor every expense ,its only when you are doing well that inefficiencies creep in.”

Business acumen

Non complacent

“One thing I have always believed is that whatever you do, you do in a very honest manner... I never ever defaulted on any financial institution payment or salaries to employees.”

Honesty

Integrity

“An IPO that should have happened in 1985 only became a reality in 2006.”

Patient

Persistent

Advice to Young Entrepreneurs: • Follow your passion and success will

follow.• Learn the business you want to get into

for a couple of years. • Be prepared to make sacrifices.• Enjoy your business; this will take care of

everything.

THANK YOU