Ramasamy completed B.Tech and joined an MNC during Campus Recruitment. His CTC was Rs. 4 lakhs. His relatives & family friends wished him all success. Ramasamy’s face glowed like Petramax light. He thought to himself ” From today onwards every day will be a happy day.”
Madasamy, Ramasamy’s neighbor failed BA. All his relatives & family friends criticised him. In Hyderabad every one is a B.Tech but Madasamy was not even BA! Madasamy received many suggestions to eke out a living by selling Idly, Dosa…. Pan …or sell Milk… His father was very embarrassed. Now what to do…? Madasamy asked his Rs. 2 lakhs from his mother and borrowed ₹2 lakhs from an uncle. With this money, he bought a few buffaloes and started a Milk Business. Ramasamy used his credit card to purchase a motorcycle , commuting each day to office. Madasamy on his TVS moped loaded with milk cans also started to sell milk. Ramasamy proudly said ‘Hi” to Madasamy whenever they met. Madasamy with an embarrassed look muttered Hi and each attended to their respective duties.
6 months passed, Ramasamy re-paid 20% of the motorcycle cost.He still had to repay ₹80K. Madasamy cleared ₹1 lakh out of his ₹2lakh borrowed money. When both met Ramasamy gave a small smile , thinking of his debt of 80K. Madasamy also smiled reminiscing about his remaining loan of ₹ 1 lakh.
1 year passed, Ramasamy had high hopes on a salary hike. Suddenly, due to recession, a company mailer informed all employees of no hike in salaries. Half liter of milk increased in price to ₹14/-from ₹10/-.This profited Madasamy by 30% and helped him repay the remaining ₹ 1 lakh loan.
By now, with difficulty Ramasamy cleared his motorcycle loan and took a personal loan of ₹2 lakhs @ 16% interest. Ramasamy bought furniture, LCD, laptop with the loan money. Every one applauded Ramasamy as he had purchased these accessories in just 2 years time. Now Madasamy with his business profits bought 12 more buffaloes and his income doubled. Again they both met. Ramasamy gave a feeble smile thinking about his personal loan. Madasamy gave a big smile since he was debt free. After 2 more Years Ramasamy got a 10% salary hike. He then bought a Maruti Wagon R car through a Car Loan. Mean while Madasamy bought 2 acres of land for his 3 dozen buffaloes.
Milk prices again increased by 30% again. Now Madasamy was earning 200% more than Ramasamy. Madasamy owned one Auto to sell Milk. Once more both met. With loans and accruing Interest Ramasamy was unable to smile. Madasamy smiled merrily driving his own Auto.
2 more years passed, Ramasamy applied for a ₹40 lakhs home loan and bought an apartment. Madasamy’s buffaloes numbered 126. Madasamy bought 2 apartments. Ramasamy got 10 more percent salary hike. Milk price crossed ₹ 40 per liter now. Total income of Madasamy was 500 times that of Ramasamy. Madasamy owned 1 Skoda and 1 Innova Car. Both met again Ramasamy grimaced struggling to clear ₹40 lakh loan. Madasamy smiled ear to ear since he owned a medium sized Milk Factory with more than 170 buffaloes and 25 workers. That night Ramasamy was in deep frustration. Because after 5 years Madasamy owned ₹4 crores , had a monthly income of 5 lakhs & provided jobs to 25 workers. Ramasamy’s salary was Rs. 7 lakhs p. a. with ₹40 lakhs debt and unbearable job dissatisfaction. This was the Balance Sheet.
Facts: In 2008 Milk was ₹10/- per litre. Now ₹40/- per litre. Gold ₹12,500/- for 10 grams and now ₹30,000/-. In the last 5 years salary hikes for software professionals was just 30%. All commodity prices increased by 300%. Despite this, most Indian parents think engineering is the only worthwhile profession for their children!
This article was gathered from a forward from a whatsapp group of “Bihar Entrepreneurs Network” sharing inspiration with “Bharat Entrepreneurs Network” (www.ben.org.in).