From ₹700 a Month to a ₹20,000 Crore Empire: My Business Journey

This is the incredible story of Dr. Faruk Patel, the founder of KP Group. He started with very little, facing numerous setbacks, but his determination and smart strategies led him to build a massive business empire. His journey is a powerful reminder that with hard work and the right mindset, anything is possible.

Key Takeaways

• Believe in Yourself: Trust your instincts and build a team of people smarter than you. Don't let criticism hold you back.
• Purpose Beyond Profit: Don't just focus on making money. Think about the greater good and how your business can help society.
• Embrace Failure: Don't let setbacks stop you. Keep learning and stay updated with market trends.
• Balance is Key: Maintain both credibility and healthy cash flow to ensure your business thrives.
• Hard Work is Non-Negotiable: There's no substitute for hard work. Keep pushing forward.

Humble Beginnings in Surat

Dr. Faruk Patel grew up in a small home in Surat, Gujarat. His father was a bus conductor for Gujarat State Transport Corporation, working for 23-24 years and raising four children on a modest salary. The family moved to Surat when Faruk was just two years old. They lived in a small 10x10 room where, during heavy rains, his mother would place him on a metal trunk to keep him from getting wet from the leaks.

As he grew, the family moved to an area that was neither a slum nor a fully developed neighbourhood. He attended municipal schools until the fourth grade and then moved to a private school. He remembers getting just 10 paise a day to share with his siblings, a small amount that felt significant back then. The fees for his private school were ₹30, a considerable sum for his father's income.

Attending a private school exposed him to children of doctors and engineers, creating a different environment. This exposure opened his eyes to a bigger world, where some people were wealthy, drove cars, and had packed lunches. This experience significantly impacted his mindset and aspirations.

The UK Setback and a New Beginning

When Faruk was 16, his father, who owned some ancestral land, sold it to send him to the UK. However, his first attempt in 1987 ended in failure; he was sent back from the airport. This setback erased any perceived value he had, leaving him at zero in the eyes of many.

His father's friend offered him a job at an optical shop, with no salary, just the task of cleaning glass and being present. During this time, he wanted to pursue a computer course, but his father couldn't support him financially. He then took a job at a clothing store, earning ₹700 a month. He gave this entire salary to his mother, asking for a portion back to fund his course.

After a few months, the agent who had initially sent him to the UK brought him back. He worked in various jobs in the UK, including Pizza Hut, a petrol station, and a leather factory. However, due to visa issues, he returned within six to eight months. This second return was even more disheartening, with people saying he would amount to nothing.

The Entrepreneurial Leap

After returning, Faruk was married. The day after his wedding, he realised the new responsibilities that came with marriage. He decided to start a business. He went to the Bombay Market in Surat, known for selling construction materials like bricks, sand, and gravel. He was told he could earn a commission by selling these materials.

His first earning from this venture was ₹50 for selling one truckload. The next day, he earned ₹1000 by acting as a middleman, connecting truck owners with customers and taking a profit. Realising that ₹1000 wasn't enough to build a future, he decided to invest. He bought 1 lakh bricks with a loan, promising to pay back ₹1 lakh in a month. He quickly found a buyer for these bricks and secured a contract for 25 truckloads of materials for a telecommunication cable project.

He worked tirelessly, even unloading trucks himself late at night to ensure timely delivery. He took a truck on finance and moved to Bharuch with his family, starting KP Transport. Initially, he owned 10 trucks, and later, 67 trucks were operating under his company. The name KP stood for 'Kothiwala Patel', with 'Kothiwala' being his village and 'Patel' his surname.

Diversification and Resilience

By 1999, Faruk realised that the transport business had limited growth potential. He sold his trucks to his investors, making a profit for them, and returned to Surat with no money. This was his third time starting from zero.

He then ventured into construction, taking on plastering work and sewerage line projects. A significant opportunity came when he was offered work with Vodafone in mobile communication. He built a strong team and executed projects across 16 states, leading to the growth of KP Buildcon Private Limited. The company received an award for fastest execution.

However, the 2G spectrum issue caused a major downturn in the telecommunication sector. This led to a sharp decline in business, leaving him with significant debt and 450 employees to pay. He had to sell off almost all his personal assets to meet his obligations. This period was deeply stressful, pushing him into depression.

The Renewable Energy Success

In 2008, Faruk decided to start a business that would have a positive impact and leave a lasting legacy. He founded KPI Global Infrastructure, now known as KPI Green Energy, focusing on renewable energy. This company now has a market cap of around ₹10,000 crore. He also started KP Energy, with a market cap of ₹3500 crore, and another company that recently had its IPO, also valued at ₹3500 crore.

He learned from his past experiences, focusing on asset-building and annuity income. His strategy was to generate electricity from solar power and supply it to consumers, ensuring a steady income. Despite starting with a ₹28 crore deficit and facing criticism, his integrity and consistent hard work built trust among people.

He began with small projects, and today, KPI Green Energy, which had an IPO of ₹127 crore, is valued at ₹10,000 crore. Those who invested ₹1 crore have seen their investment grow to ₹100 crore. This success was replicated with KP Energy and KP Green Engineering.

The Five Golden Rules

Dr. Faruk Patel shared five golden rules that guided his journey:

1. Believe in Yourself and Build a Smart Team: Trust your capabilities and surround yourself with intelligent people. Don't be deterred by criticism.
2. Business with Purpose: Don't just chase money. Focus on societal benefit and a larger mission.
3. Learn from Failure: Never give up. Continuously research and adapt to market changes.
4. Manage Credibility and Cash Flow: These two are the pillars of any successful business. Maintain both diligently.
5. Unwavering Hard Work: There is no alternative to hard work. Keep putting in the effort.

At 54, Faruk still works 14 hours a day, emphasising that hard work is essential at any age. He believes that continuous effort in the right direction, learning from every fall, will inevitably lead to success. He encourages everyone to keep climbing, as stagnation leads to decline. His journey from earning ₹700 a month to building a ₹20,000 crore empire proves that with vision, hard work, and determination, the impossible can become reality.