Few businesses in the nation can claim to be incorporated before Independence. The businesses that possess such a history are a part of the heritage of our country in a way that goes beyond being a simple cog in the economy. Paper Trade Links from Indore is one such company. Sandeep Bhargava, a third generation entrepreneur and MD and Chairman of Paper Trade Links tells the story of how the company has evolved from when it was incorporated by his grandfather in 1942 till the present day.

Today, they are one of the largest distributors of paper in central India and the company has travelled a long way since its inception when Sandeep’s grandfather used to carry bundles of paper to customers on his back. Technology has been embraced fully over time and has provided the foundation for the recent growth of the business. Sandeep’s goal is to increase revenues tenfold to Rs 1000 crore by 2020 and the company is on course to meet its target.

In conversation with GlobalLinker (GL), Sandeep Bhargava (SB) speaks about the history of the company, the many challenges it faced and the vision for the future. Watch this video to discover more about the journey of Paper Trade Links.

GL: Tell us about your business.

SB: We are distributors and indentors of paper. We represent Indian paper mills and foreign mills. We meet the demand of consumers of paper whether they are industrial consumers, printers or packagers. Our business is a third generation enterprise. It’s a family business that my grandfather started in 1943. My father took over in 1962 and the reins were passed onto me in 1988. We have grown this business substantially over time. My grandfather used to carry paper bundles and there was a small shop. He used to deliver papers by carrying bundles on his back. At the time, there was no single person who handled the entire business. In 1964, when my father had taken over the business, we had a shop with 3-4 employees and expanded to 7-8 and then ten employees.

Today, we have a branch in Bhopal and are the largest distributors of paper in central India. We have a staff of more than 30 people here in Indore and 10 in Bhopal. We have around 40 people in a merchant trading company.

Our major clients are corporates. These institutions are buyers consuming large quantities of paper. We also have converters. Like printers and people who are using paper as a base for conversion to notebooks and thermal papers. Thermal papers are the invoices that come when you go to a mall or at any other point of sale business. We are suppliers of base paper to all institutions, corporates and industries. They convert that paper to notebooks, diaries and make solutions for packaging. Our aim is to provide world-class solutions to our clients in India.

GL: What are the challenges you have faced in establishing your business?

SB: My grandfather was not financially secure when he came from Uttar Pradesh. He was from Lucknow and Allahabad. He used to pledge whatever bundles of paper he had to the bank and take them out when there was demand and delivered it. There was very little volume of business but the margin was very high. The market for paper was very limited. When my father joined, the volume grew but the finances didn’t grow as much. My father took the business to the next level. There was no computerisation in my grandfather’s time. Computerisation was very poor even when I joined the business in 1988.

The challenges that I had when I took over the business was how to make the business more systematic. Being an MBA I thought it important to organise the business. The paper distribution business is very old fashioned with mostly uneducated people involved in the process. I felt that with my education I had to bring some value to the business to make my mark. There was a time when I was studying where I felt I didn’t want to get involved with the business. Ultimately though, it was like destiny that I would take over it. There were certain challenges at a crucial point which made me feel like I should take over.

When I first joined, I had to understand the economics and accounting aspects of business. I was from a science background so there was a lot of learning involved. Everything was done by hand at the time, including the cash books and ledgers. We adopted computerisation, but the computers were slow. They took ten or fifteen seconds to save the entry. Over time, things improved and now we have an ERP system in place. My father used to spend nearly a month balancing all the books by hand. It was a hellish job and it was almost the focus of the business to make the balance sheet rather than doing business.

Now everything is much better than what it was. It is run by me and we are doing a business of almost Rs 100 crore per annum and I intend to take it to a multiplier of Rs 1000 crore per annum by 2020.

GL: What is the USP of your business?

SB: The USP of Paper Trade Links is that it is a brand in itself. It is one of the best brands for paper in India and the world. People recognise PTL as a brand. We indent paper, convert paper and then sell the paper. We focus more on servicing and are looking to be more than just a trader.

GL: What are some of the milestones of your business.

SB: We used to have a 200 square feet office that was really small. There were only 7-8 people then and I used to sit next to my father's chair learning how to run the business. That small shop multiplied into two and three shops. Since the company is growing, we decided to get a big headquarters and the current head office is 2800 square feet in area. The company is still growing and I want it to grow faster.

GL: What role do you feel GlobalLinker plays in connecting and assisting SMEs?

SB: GlobalLinker provides us a place to network. If we need to solve a problem, we can use that network. For example, I can search for distributors all over India.

GL: What is your big business dream?

SB: I would like to see Paper Trade Links as the largest paper trading company India. I would like the business to grow to Rs 1000 crores by 2020. That is my big business dream.

GL: What is your message to aspiring entrepreneurs?

SB: If you work with focus and drive, success will find you.

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