How I lost more than 2 crores and 5 years, but still profited
A reverse osmosis membrane plant that never worked, the money and years it cost, and what the failure taught.
This photo is from 2017, as I stood before a crowd of eager onlookers, handing over the scissors to Dr. Shekhar Mande (Director General, CSIR, 2017–2022), ready to cut the ribbon and inaugurate our reverse osmosis membrane sheet manufacturing unit in Narol. It was a moment filled with hope and ambition, unaware of what lay ahead.
The dream
I wanted to work on a product that was exclusively imported. I believed in the power of the first-mover advantage and wanted to play a big game. It was a big dream, and I was sure it could work with a good plan and enough resources.
Facing reality
Over time, we discovered our initial enthusiasm had clouded our judgment. We didn't grasp the complex technical challenges of running a membrane unit. We had placed unwarranted trust in our government-funded technical partners, whose promised trials extended from 5 weeks to an agonizing 5 years. Our membrane production remained inconsistent and subpar. We consulted specialized engineering firms, who brought amazing expertise to the field, like Toolmech Private Limited, run by the spirited Bhagyesh Dobaria. They did help us overcome some (a lot) of the challenges, but without a strong chemistry background, we couldn't succeed.
Closure
Ultimately, we decided to cease operations. The overall loss sustained by the unit, not counting the lost opportunity, came to more than 2 crores. A drop in the ocean for the water filtration industry; for a startup, it was a death knell.
What did we learn?
- Hope blinds us from even considering possibilities that are unpleasant or don't conform to our expectations. It is important that leaders stay grounded in reality.
- The war isn't won on the battlefield. It's won or lost in the preparation. We lost because we didn't prepare.
- You gain either money or experience, no matter what you do. We know for sure now what DOESN'T work, and that knowledge gives tremendous power.
- Though my entire outlook looked dark at the time, with time I did bounce back. While clichéd, it is indeed true that every dark cloud has a silver lining.
Have you ever failed at something you badly wanted to succeed at?