Kochouseph Chittilappilly has achieved something few Kerala entrepreneurs have managed — taking three companies he founded to the stock market.
V-Guard Industries entered the public market in 2008, followed by Wonderla Holidays in 2014. Veegaland Developers has now joined the list, making Chittilappilly one of the rare Malayali entrepreneurs to build and list three companies.
But he does not see IPOs as the ultimate measure of entrepreneurial success. For him, businesses are built one step at a time, with a sharp focus on customers, systems, people and opportunities for growth.
In a conversation with Dhanam, Chittilappilly explains why more Kerala businesses should consider the public markets, what links V-Guard, Wonderla and Veegaland, how he identifies talent, and why money is only a by-product of entrepreneurship.
You are among the very few Malayali entrepreneurs to have taken a company public. Now you have listed a third company that you founded. Would you call this the biggest achievement of your business career?
I would not put it that way. I have simply been doing things step by step.
V-Guard went for its IPO in 2008 and Wonderla had its public issue in 2014. We have to keep doing something, don't we? Now the right opportunity came for Veegaland Developers.
If you ask me whether there is some extraordinary thrill associated with it, I don't think so.
Many Kerala entrepreneurs hesitate to list their companies even when their businesses are capable of going public. Why?
There can be several reasons. Some entrepreneurs may be afraid that once they give shares to the public, they could lose some control over the company. Others may not like outsiders becoming involved in their businesses.
A company going for an IPO needs a good board of directors and independent directors. They will ask questions, and management must be prepared to answer them. I am comfortable with that.
Many large companies have used public issues as part of their growth journey. An IPO can help a company grow.
Even before Veegaland Developers' public issue, we had allocated a certain percentage of shares to senior managers. The IPO also gives them an opportunity to unlock the value of those shares. Merely saying that employees own shares is not enough; they should eventually benefit from that ownership.
Veegaland Developers' issue consisted entirely of fresh shares rather than an offer for sale by existing shareholders. Why did you choose that route?
We built this company from a very small beginning. It is like our child, and we are not ready to let it go. At the same time, the company needs capital to grow. I felt that an IPO was one of the best routes for raising that money.
A public issue also has another advantage — managers will have more work and greater accountability. That is fine. Let them have it.
When you started Veegaland Developers, did you already have the ambition of eventually taking it public?
Not at all. At that time, my ambition was simply to start a housing project. It succeeded, so we started another. Two became four, and four became eight.
I don't claim to possess some extraordinary ability to predict the future of a business. If I see an opportunity for growth, I try to make use of it. That is all.
V-Guard, Wonderla and Veegaland Developers operate in very different sectors. Is there a common DNA connecting all three?
Whatever the nature of the business, satisfied customers are ultimately behind its success.
Whether it is V-Guard, Wonderla or Veegaland Developers, the customer ultimately decides whether the company has the potential to grow. Without customer satisfaction, we can make all the efforts we want and still may not succeed. If you have more satisfied customers, the business will grow.
In Veegaland Developers, I feel the responsibility is even greater. A V-Guard product may cost up to around ₹20,000. At Wonderla, a customer buys a ticket and spends a day enjoying the park.
Buying a home is completely different. A person may put their lifetime savings into a house and also take a bank loan to buy it. There is a much deeper emotional connection. We therefore have to understand that responsibility while building homes.
A house is something very close to the heart of a Malayali. When we design Veegaland homes, I often think as a Malayali myself — what would I want in my own home? We try to incorporate those requirements into our projects.
How did you become interested in construction?
That happened almost by accident. Electronics was originally my area of interest. When I started V-Guard, it became electrical and electronics. When Wonderla came along, I became interested in that sector as well.
Along the way, there was a considerable amount of civil construction — V-Guard's corporate office, Wonderla's parks and several other projects. I felt that I was able to contribute to some of those areas.
Later, after reaching a certain age, I handed over the leadership of V-Guard and Wonderla to my children. For some time, I remained chairman emeritus on the V-Guard board. Eventually, I felt the children should take complete responsibility for those companies.
That made me unemployed again! That was when I became fully involved in the construction business.
You had already taken two companies public before Veegaland Developers. Was there anything you consciously decided not to repeat during the third IPO?
Not particularly. V-Guard had its own circumstances. Wonderla had different ones, and Veegaland Developers had another set of requirements.
SEBI and merchant bankers will keep asking for information, and we are obligated to provide it. If a company has strong transparency, systems and processes, going for an IPO is not particularly difficult.
You have previously spoken about relaxing in the afternoon and even watching cartoons. Yet you are also willing to undertake complex processes such as IPOs that many entrepreneurs avoid. How would you describe your mindset?
Both can happen. If there is a will, there is a way.
Our thought process is not centred on conducting an IPO. The real questions are: How can the company grow? How can we create more satisfied customers? Is the company growing compared with last year? If not, why?
Those are the things I keep thinking about. Whether we go for an IPO or not is secondary.
V-Guard began with just two employees who had not completed Class 10. Yet you built strong teams across your companies. How do you identify and empower ordinary people to achieve extraordinary results?
I observe people. When I interview someone, I may not immediately understand all their abilities. But once a person joins the team, I give them an opportunity to work and then observe them.
Does the person have a spark? Are they willing to work? Do they have common sense? These are things I look for.
One mistake some entrepreneurs make is hiring somebody at a low salary and then simply leaving that person to manage on their own. We need to identify an employee's capabilities early.
If someone does not possess the skills that the company needs, it is better to tell them quickly and make the necessary change. Education alone is not enough. A person must be willing to work hard and should feel a sense of ownership.
Many ideas have come to me from members of my team. When somebody proposes something and I feel it is good, I adopt it.
Today, V-Guard has professionals who graduated from institutions such as the IIMs. But during our early days, we could not afford to hire such professionals. So we encouraged existing team members to attend evening classes, improve themselves and become better professionals. I also grew in the same way, taking appropriate courses to address my own shortcomings.
Are Malayalis becoming more enthusiastic about IPOs and equity investing?
There has been a significant change. When V-Guard was preparing for its public issue, only a limited number of people in Kerala had a strong understanding of the IPO market.
At the time of V-Guard's IPO, I sought guidance from CJ George of Geojit Financial Services because he understood the market well. He had told me that a large proportion of V-Guard's IPO subscribers would probably come from North India, and that is what happened.
Today, digital investment apps have become widespread and investors are much more informed. So the situation has changed considerably.
Once you decide to do something, are you stubborn about seeing it through?
I am somewhat stubborn, yes. But I am not in a hurry. My approach is slow and steady. It has taken me 49 years to reach where I am today.
You recently developed Chittilappilly Square, a ₹145-crore multipurpose wellness park. Can we expect more such surprise projects?
We have to respect age. During the Covid period, we discussed doing something that would be useful to society.
Some managers suggested starting an engineering college. Others suggested a hospital. But eventually, those could turn into conventional businesses.
That was when the concept of a multipurpose wellness park that ordinary people could also benefit from emerged. We then went ahead and made it a reality.
Your family also has V-Star Creations. Could that company eventually enter the stock market as well?
You will have to ask Sheela about that. (Sheela Kochouseph is Chittilappilly's wife and the founder and managing director of V-Star Creations Pvt Ltd.)
How do you manage the younger generation in your team?
I am the oldest person in our company. The average age of the team is around 35.
The younger generation knows many things better than we do. What we need to do is understand their capabilities and interests and give them opportunities to perform.
This is only the beginning?
Veegaland Developers still has many opportunities ahead. This is only the beginning.
How did you make three companies IPO-ready?
I have never done any window-dressing in any of my companies simply to prepare them for an IPO. From the beginning, there has been a system, a process, a culture and transparency.
I delegate as much as possible to members of the team and give them responsibility. In fact, if I were to put it simply, I might be the person who does the least amount of work in the company.
What is your philosophy on wealth?
Money is necessary in the world we live in. But I do not do business primarily for money. For me, entrepreneurship is about developing new ideas and implementing them properly. Money is a by-product of that process.
An idea emerges. We develop it. We take it to people. If people see value in it, they are willing to pay the price we ask.
Money is simply one of the outcomes of that entire process.