Within 20 years, Moser Baer became the world's 2nd largest CD manufacturer.
The crazy part?
It's worth nothing today.
Here is the story behind Moser Baer's steady rise and sudden demise👇👇👇
The crazy part?
It's worth nothing today.
Here is the story behind Moser Baer's steady rise and sudden demise👇👇👇
Deepak Puri was born and brought up in the state of New Delhi.
Entrepreneurial to begin with, he was always launching the next big idea.
The first one - a manufacturer of aluminum wires, pipes, & conductors.
Entrepreneurial to begin with, he was always launching the next big idea.
The first one - a manufacturer of aluminum wires, pipes, & conductors.
It started off well but the violent pressures from the labor unions forced a sudden shutdown.
But that was no big deal for Puri, he dusted it off and went about building.
The second venture - a time recorder for bankers. A very promising start...
But that was no big deal for Puri, he dusted it off and went about building.
The second venture - a time recorder for bankers. A very promising start...
The problem? The same old.
His equipment and factory were destroyed by the unions.
They dropped acid on his machines and threatened his family.
His equipment and factory were destroyed by the unions.
They dropped acid on his machines and threatened his family.
With no choice in hand, he made the move to Delhi.
A new city, but the same old drive.
Puri was relentlessly looking for his breakthrough
And it finally came about when Puri visited his friend's office in Mumbai amidst a power cut.
A new city, but the same old drive.
Puri was relentlessly looking for his breakthrough
And it finally came about when Puri visited his friend's office in Mumbai amidst a power cut.
While his companion fanned himself, Puri was struggling in the heat.
He simply picked up a square object put before him and was about to fan himself, when his friend snatched it away.
The item was a floppy disk, and that incident had changed Puri's life forever.
He simply picked up a square object put before him and was about to fan himself, when his friend snatched it away.
The item was a floppy disk, and that incident had changed Puri's life forever.
A floppy disk is a thin, circular device that acts as a storage medium.
Rather unaware of its functionality, all Puri saw was an opportunity.
He learned immediately that there were no competitors manufacturing these storage devices in India.
So, he made his first move...
Rather unaware of its functionality, all Puri saw was an opportunity.
He learned immediately that there were no competitors manufacturing these storage devices in India.
So, he made his first move...
With an impromptu flight to California, Deepak Puri went straight to Xidex.
Xidex, at the time, was the world's largest manufacturer of data storage media.
And within one meeting, Puri had convinced the Xidex team for a partnership.
Xidex, at the time, was the world's largest manufacturer of data storage media.
And within one meeting, Puri had convinced the Xidex team for a partnership.
That's how Moser Baer was born in 1983.
To begin with, the company produced 8 and 5.5-inch floppy disks in India.
Despite a great start, however, Puri's business inevitably met a few obstacles.
To begin with, the company produced 8 and 5.5-inch floppy disks in India.
Despite a great start, however, Puri's business inevitably met a few obstacles.
But this time it was different.
Puri handled the obstacles his own way:
• when he faced problems at the Indian ports, he built his own supply chain
• when he had persistent power shortages, he built his own captive unit
Not only was he relentless but agile too.
Puri handled the obstacles his own way:
• when he faced problems at the Indian ports, he built his own supply chain
• when he had persistent power shortages, he built his own captive unit
Not only was he relentless but agile too.
For example, Puri quickly prioritized CDs when they came about in 2001.
Always on his toes, he was never scared to make the switch.
And just like that, Puri became an exemplar of the first-mover advantage.
Always on his toes, he was never scared to make the switch.
And just like that, Puri became an exemplar of the first-mover advantage.
Between 2001 and 2004, Moser Baer went from $18.3M to $209M in revenues
In 2004, the company was manufacturing ~2.5B CDs annually.
Moser Baer had officially become the world's 2nd largest CD manufacturer.
In 2004, the company was manufacturing ~2.5B CDs annually.
Moser Baer had officially become the world's 2nd largest CD manufacturer.
But as fast as they rose up, they fell down even faster.
The ever-changing technology market and one bad call were all it took.
The ever-changing technology market and one bad call were all it took.
With the rise of the internet and the new norm of downloading music etc., CDs were becoming redundant.
But Puri wanted to grow his market share.
For the first time, Puri doubled down on the present rather than betting on the future.
But Puri wanted to grow his market share.
For the first time, Puri doubled down on the present rather than betting on the future.
With a sizeable investment, the company built a large-scale plant.
At the same time, unfortunately, the Taiwanese competitors moved to China.
With the cheaper prices in China, Moser Baer started to lose their share of a market that was already shrinking.
At the same time, unfortunately, the Taiwanese competitors moved to China.
With the cheaper prices in China, Moser Baer started to lose their share of a market that was already shrinking.
Shrinking because flash drives were growing in popularity, and CDs were made obsolete.
The changing market and competitors pushed Moser Baer practically out of the CDs & DVDs business.
But Deepak Puri, and his son Ratul Puri, were not ready to give up.
The changing market and competitors pushed Moser Baer practically out of the CDs & DVDs business.
But Deepak Puri, and his son Ratul Puri, were not ready to give up.
One last attempt: building PV cells in line with the solar energy movement.
Leveraging their reputation, investments came easy but the market was tough.
It was 2008, and in light of the financial crisis, all of Ratul Puri's calculations were drastically misguided.
Leveraging their reputation, investments came easy but the market was tough.
It was 2008, and in light of the financial crisis, all of Ratul Puri's calculations were drastically misguided.
Over the next few years, Moser Baer suffered:
1/ a massive domestic & intl. debt
2/ a shrinking cash flow and asset base
The company was unable to even pay their plant workers for months at end.
1/ a massive domestic & intl. debt
2/ a shrinking cash flow and asset base
The company was unable to even pay their plant workers for months at end.
Finally, on 20th September 2018, Moser Baer was declared defunct.
So disheartening to see a household name like that collapse so quickly.
I'm sure we all have a few of their CDs lying around the house, and now you know their story.
So disheartening to see a household name like that collapse so quickly.
I'm sure we all have a few of their CDs lying around the house, and now you know their story.
My takeaways:
1/ Don't blame it on luck, engineer your own serendipity (h/t @SahilBloom)
2/ Stay consistent, even with ideologies.
3/ Never let your failures define you.
We can see this in Ratul Puri too. He has now become the leader of India's largest solar dev.
1/ Don't blame it on luck, engineer your own serendipity (h/t @SahilBloom)
2/ Stay consistent, even with ideologies.
3/ Never let your failures define you.
We can see this in Ratul Puri too. He has now become the leader of India's largest solar dev.
If you enjoyed that, I write 1-2 threads every week breaking down startup stories & what we can learn from them.
Follow @abhishekshah173 to catch them in your feed.
And here's another one of my favorite stories:
Follow @abhishekshah173 to catch them in your feed.
And here's another one of my favorite stories:
https://twitter.com/abhishekshah173/status/1450507082482917379
• • •
Missing some Tweet in this thread? You can try to
force a refresh
