Saakha's Saga: Playing Safe In A Risky Business

  10 min 17 sec to read

You may get on top, but you can't stay there for long without persistence, honesty and commitment, says Kiran P Saakha, the director of Saakha Group. A long established name in Nepal's ready made garment (RMG) industry, Saakha accredits all his success to the three virtues he learnt from his father and grandfather. These three virtues, shares Saakha, have helped him prevail for over two decades in an industry where many have perished.

 

 

Abnormal profit always hides a trap. If anyone tries to attract you with huge abnormal profit, you have to be extra careful.

 

 

Born to Ganesh Bhakta Saakha and Late Janak Laxmi as the first child, Kiran was raised like any ordinary Kathmandu Valley child. He went to Nepal Adarsha Vidhyalaya, a normal government school where every other kid from the neighbuorhood went. Though he came from a well-off business family, he was never allowed to feel any more privileged than a kid from an average-income family. As a child, Saakha recollects, his biggest dream was to have a bicycle. I thought I would be the king if I had a bicycle, he goes down the memory lane.

Unable to get one, he used to play marbles in the chowks and streets of old Kathmandu. Because of the time and environment back then, he didn't have big dreams as a child. And hobbies? I couldn't afford to have any, he puts it candidly. So he never thought of becoming a doctor or engineer or a pilot. But somewhere at the back of his mind he pictured himself as a businessman.

After finishing school, he did his bachelors from Trichandra Campus and masters from the Central Campus, Tribhuvan University. Saakha thouroughly enjoyed his college days. He learned to play new sports such as table tennis, tennis and squash. He also learned swimming and started going to health clubs, a habit which has kept him fit and fine until now.

Soon after leaving college, he found himself working in the factory his family owned. He was completely engaged in the company that manufactured adhesives and also carried out trade activities with China. But life had other plans for him. Young Saakha was gradually attracted to the RMG industry, a promising enterprise in the 1980s. The slow and steady player of the Nepali apparel business believes all the name and fame he has today is because of the RMG. He says he may not have made a fortune but is doing quite well in Nepal's RMG industry, perhaps the most hardhit sector in recent times.

And the interesting thing is it was a betrayal, not an inspiration as many would think, that propelled him into the apparel business. Perhaps I wouldn't have been what I am today if it wasn't for a betrayal, says Saakha who got into the RMG business just to show to his betrayer.

It was the early 80s and RMG was fast evolving into a lucrative business. Orders from neighbouring India were pouring in. Foreigners would come to Nepal, find a Nepali citizen and set up a factory as citizenship was mandatory to register a company. They would take care of everything else: investment, machines, technology, labour, orders, and shipments. He was lured into RMG by a friend and his relatives showing these possibilities. They promised him a joint venture. When the plan was ready for execution and he was expecting the business to start, they ditched him. The betrayal hurt Saakha very badly. And the best way he could answer them, he thought, was to start an apparel business on his own.

This is how the foundations of what is today known as Prasuna Fashion were laid. Saakha started small, setting up his factory with just 50 sewing machines. He was a novice in the apparel industry, without much knowledge and experience. So at the beginning, he hardly got any orders as he had no major contacts abroad.

Shipping was a major problem back then. The failure to complete the orders on time meant the products had to be sent by air instead of on a ship. This in turn meant not only giving away almost all the profit but also incurring a huge loss. Soon there was a tough competition with the mushrooming of many units. The companies grew greedier and greedier, trying to get as many orders as possible by overstating their production capacity. But most of them couldn't deliver the orders on time, leading to either the cancellation of the orders or the selling of the products for peanuts. This greed and overtrading, he believes, is the reason why many garment firms collapsed. But Saakha's strategy was different.

PERSONAL SIDE
  • Loves music, watches MTV a lot
  • Loves long drives
  • Is scared of flights in small planes
  • Is religious but not superstitious
  • Loves to cook
  • Avoids nancial transactions with friends
  • Scared of atheist people

 

In the first place, he never tried to bite more than he could chew. He was also committed and honest, never exaggerating his production capacity to grab more business than he could handle. He discloses his success formula: At a time when most companies were overtrading, as a rule I always accepted orders slightly less than I could actually produce. Thus I was always able to make the deliveries on time by a ship, and never had to resort to delivery by air. And my clients were always happy This is a formula he has always adhered and it has always worked for him.


Having spent more than two decades in the RMG business, Saakha certainly knows most of the tricks of the trade. Saakha has a very sound advice


for those who are tempted to go for a quick, abnormal profit. An abnormal profit always hides a trap. If anyone tries to lure you with a huge abnormal profit, you have to be extra careful, says Saakha.

Being on the safe side and avoiding risks is his philosophy, both in personal and professional lives. Clearly a safe player, he is never enticed by gains that involve risks. In all his undertakings, he moves ahead only after analyzing the worst case scenario.

He has already held respectful positions in the Garment Association of Nepal as the treasurer, joint secretary, vice president and finally the president.

No matter how busy he is, he always finds time to be with his family. If you don't give importance to your family, then you're finished. Having a rolling business and all the riches is of no use if you don't share a good bond with your family. The proud father of a son and a daughter, he is blessed with a very understanding wife, Kusum Saakha, an LLM from the Harvard Law School. The couple have been happily married for 32 years now. We are very much compatible with each other. Our marriage was an arranged one but I already knew her as we both were in the same college,recalls Saakha. Kusum is involved with several NGOs and also teaches in colleges.

Saakha considers his bad temper a major drawback of his personality. As he can rarely control it, he doesn't go for inspection rounds in his factory. I know in advance that the carelessness of the workers will trigger my bad temper. He is occupied mostly by desk work and maintaining public relations. I don't get on well with many peple. I can handle everyone but cannot have a close relationship with everyone, so I have very few close friends. I only make friends with those who are on my wavelength, he reveals. Whenever he is free, he likes to spend his time with close friends and family at his own residence. Many would envy the fit body of Saakha, a man in his late fifties. He goes to the health club at Hotel Radisson every day and works out for about an hour. Paying for the health clubs is much cheaper than going to the doctors and paying for the medications. It is because of my regular workout that I have never been bed-ridden for the last 20 years, says Saakha proudly.

He is not that brand conscious. As a student of economics, he looks for the value for money and utility in whatever he buys. I go for brands provided that I get them at a reasonable price, says Saakha. However, he accept that he always wears readymade suits from Menz. I have been wearing them for the last 20 years, says Saakha. He doesn't believe in showing off the brands. He just needs to feel comfortable in whatever he wears. But when it comes to watches and glasses, he always chooses the best brands. I am very fascinated by watches of different brands. I think of them as a status symbol. He loves Omega, Rolex and other top brands.

Saakha, who currently drives a Toyota, doesn't allow anyone to drive his car, not even his family. The busy businessman doesn't go for holidays much. My holidays and business trips are tied up together, he says. Whenever it's possible, he goes with his family to Pokhara and Sauraha for holidays. He doesn't like to spend much on foreign tours but prefers going to Goa as it combines economy with utility. He prefers Vietnam, Cambodia, Bangkok and other Asian destinations to Europe and the USA as the Asian destinations are far more economic and equally entertaining. I like to keep a balance of what's coming in and what's going out in every aspect of life.

The MD of the Saakha Group doesn't have any immediate plans for new investments. The time is not right for expansions. I think it is better to take care of and hold on to what you already have, he says. At present, his company is providing employment to around 400 people. From his long experience, he suggests that aspiring entrepreneurs should not overtrade. Although it can help you make quick money, if it backfires, then you're done. Believe in honesty and commitment as you cannot sustain without them, he concludes with a quote from his late grandfather.
 
 
 

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