Sustainability underscores expansion plans

John Key with Vinod Kumar

When Mega Mitre10 Henderson (and Botany Downs) and Mitre 10 Home and Trade Westgate Chairman and Managing Director Vinod Kumar announced his plan to move to a new location that would account for double the space for the West Auckland operation, almost everyone around him thought it was a daft idea.

“We are in the midst of a recession, business confidence is low, the construction industry is weak and you are talking of expansion? This does not stand to logic,” they said.

But the man, who has seen the worst of times in both his business and the economy, was not offended. Instead, he reasoned with them and explained why the best of plans should be put into action at worst of times.

“We should prepare for the Sunny Day as well. Besides, the move will not occur overnight. There are a host of issues that need to be considered, the most formidable of which is Resource Consent and finance,” he told them.

His group, trading as Magsons Mitre 10 won the Supreme Business of the Year, Best Professional Business Person of the Year and Best Large Business Awards at the inaugural Indian Newslink Indian Business Awards (IBA) 2008; and the Best Retailer Business Award, apart from being a finalist in the Best Sustainable Business and the Best Large Business categories at IBA 2009 Gala Black Tie Dinner held at Stamford Plaza on November 16, 2009 (see Awards Special Feature, December 1, 2009 issue).

The relocation of Mega Mitre10 Henderson will make it the largest of its type in Australasia.

The proposed new showroom and retail store, occupying 15,000 Sq M (up from the current facility of 9000 Sq M) will account for more than 70,000 items.

The Garden Centre, another popular destination for builders, nurseries and homeowners, will be accommodated in a larger area (3200 Sq M, from the existing 2500 Sq M), while the Yard, the hub of all operations, will account for 3500 Sq M.

“This has undoubtedly been a challenging year for us and I have had the unfortunate and unpleasant experience of having to “let go” about 50 members of my staff. But as the economy picks up and as our expansion plan is put into place, we should be able to provide additional employment opportunities,” Mr Kumar said.

Wealth creation through jobs is one of his major objectives as an entrepreneur and Mr Kumar has come a long way since his early days of engagement as a Mitre 10 franchisee in West City.

As we had mentioned in an earlier report (Indian Newslink, April 1, 2004), the Fiji born Indian who migrated to New Zealand in 1987 in search of higher education and a better  career, had to sell his house which he built brick by brick to raise the capital required to purchase an existing hardware business in Henderson.

That was how he began in 1989 with a handful of (five) staff.

“Success in hardware is like in any other business; it does not come about without hard work but the prospects were promising. I knew that with good service, we would continue to grow,” he said.

Five years later (1994), the facility had outgrown its utility and Mr Kumar moved to a new, purpose-built premises on Sel Peacock Drive in Henderson.

West Auckland in general and Henderson and adjacent areas in particular had by then begun to show signs of growth with numerous shopping malls, retail stores, restaurants, offices and other utilities established in the area.

With growth came people and with people came their urge to buy do-it-yourself (DIY) products and that urge led to surge in demand.

The opening of the Mitre 10 Mega store in West Auckland’s Henderson on March 26, 2004, marked the beginning of another story.

It was a story of how hard work, dedication and perseverance, augmented by quality products, sensible pricing and personalised service, brought home success and glory.

The first Mega Mitre 10 in New Zealand, envisaging $12.5 million investment remains a vociferous expression of business confidence that the Mitre 10 group and Mr Kumar have in the area, the region and the country.

“While prices are kept to the minimum possible, the anxiety is to offer products that suit the needs and budgets of every customer,” Mr Kumar said.

While the acquisition of Dream Kitchens Limited a few years ago complimented the operations of Mega Mitre 10, Mr Kumar’s venture into manufacturing is adding value to product and service range of the group.

The formation of Vijay Holdings Limited to capitalise on the growth potential was a major step in the upstream diversification of his enterprise.

Along with Dream Kitchens, the other legal entities of the Company are Vijay Frame & Truss (building supplies) and Vijay Homes (Residential properties).

Managing a growing empire with multinational staff may be an arduous exercise but Mr Kumar seems to enjoy the opportunities it creates to understand people and their vicissitudes.

His ambition is to expand operations and employ at least 500 staff over the next five years.

“I regard everyone as a member of one big, growing family. I want to see each of them happy and prosperous,” he said.