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IACO Builds A Service Brand
From
coffee-bean trading to a multi-crore airconditioner
distribution business, Farhan Pettiwala, the head
honcho of Norfolk Mechanical, has come a long way. Pettiwala attributes
the success of his branded maintenance services to
a strong service orientation and a penchant for the
extraordinary. Associate Editor Vidyut Kumar Ta reports.
At
35, FARHAN PETTIWALA IS AN intense and energetic personality.
The warm, gentle, yet highly-focused managing director
of the Rs. 35 crore IAICO group has emerged as the flag
bearer of the business of air conditioning solutions.
Pettiwala
graduated with a gold medal in mechanical engineering
with a passion for cooling systems. His three-year stint
at Carrier Aircon made pettiwala adept with the marketing,
production, and quality aspects of the cooling business.
He quit Carrier to start his own venture – Intelligent
Air Co (Norfolk Mechanical), an AC dealership, in 1994 with the help
of two acquaintances. He was barely 23 then.
Pettiwala
specialised in subjects like refrigeration and air conditioning
and had written papers on ozone-friendly refrigerators
and carried out research in 1992 on refrigerants like
‘R134a’ and ‘R141b.
Pettiwala
was barely a 14-year-old when he evinved interest in
entrepreneurship. This was when his father turned down
his request to put money into his Plus-2 studies in
a bid to rope him into the family business in Dubai.
Pettiwala was determined to trade in coffee beans to
pay his fees. He would pick up stocks from in –bound
Indians at the Dubai airport and cart them to the marketplace
on trolleys instead of taxies to cut costs.
Subsequently,
Pettiwala enrolled himself with Pune-based Viswakarma
Institute of Technology (VIT) and met his fees by off
offering private tuitions to students.
Pettiwala
has a passion for cooling systems even while he was
studying engineering, Pettiwala joined Carrier Aircon
Limited (CAL) where he underwent a professional training
called Carrier Pet Training programme. During his training
Pettiwala was oriented in various segments of the company,
starting from manufacturing, marketing, servicing. He
was even sent to Singapore to study the market and competition,
to formulate a strategy to make CAL the numero uno brand
in India.
During
his stint with CAL, Pettiwala accomplished many breakthroughs
with accounts like Breach Candy Hospital and leading
PSU banks like ABN Amro, Aminex Chemicals, Simthkline
Beecham, Citibank, Bank of America and to name a few.
While
working with CAL, he studied management from ITM (SIES
College).
It
all started as a small idea. In India Airconditioners
are normally installed and maintained by dealers –
usually small entrepreneurs with small workshops or
mid-sized businesses with showrooms. Their objective
is to sell and offload brands that are in stock or offer
higher commissions and incentives. In the process, the
customer’s specific requirement inadvertently
gets neglected.
This
gives rise to disagreement between the end users provided
with inapt cooling machines with the dealer or the manufacturer,
leaving the customer with little choice to change the
brand or the dealer, thereby making a loss in the bargain.
This
feet-dragging attitude on the part of dealers to take
full service and maintenance accountability of their
sale caught the attention of Pettiwala, then a young
executive of CAL, who realised the need for an unbiased
service brand that focuses on customer orientation,
Pettiwala has a mission to establish a pan-India conglomerate
that would provide the customer the same level of service
in metro or semi-metro areas, irrespective of the number
and specifications of the air-conditions purchased.
This
thinking resulted in the incorporation of Norfolk Mechanical, International
Airconditioning Co, in 1994 – the name under which
Carrier had commenced operations in Singapore in 1965
and further led to the creation of airForce and Airfield
AC service benads. The two brands managed to position
themselves as specialists in the servicing air conditioners
and providing solutions with full accountability. Today,
Norfolk Mechanical is a deemed public organization called AIRF (I)
LTD.
The
sole objective was to be a one point contact for providing
solutions and maintaining airconditioners of all brands
and capacities using the latest technology and software,
better skilled and experienced people and above all
working with a customer friendly attitude.
The
name airForce was very thoughtfully chosen and trademark
registered, as AIRF was in the business of air conditioning
and has a force of people to render the services. Moreover,
the very name of airForce registered easily in in the
minds of the customer. The logo was very thoughtfully
designed with air and force separated and with a ‘C’
in blue, to highlight the company’s temperature
related business; similary airfield has alphabet ‘F’.
Very
soon, corporate bodies realised that airForce was using
genuine spares, has skilled people with better tools,
was equipped with better infrastructure (30 land lines,
100 cell phones, 8 mobile vans, 18 two wheelers) and
a vision of becoming a global service brand in last
20 years. AIRF also attracted senior managers and engineers
from the service departments of the leading airconditioner
manufacturing companies in India.
At
first, airForce faced a stiff resistance as it had to
fight against the preconceived notion that only the
manufacturer could maintain the products without realising
that several manufacturers merely engage in screw-driver
technology, and they got their components manufactured
by vendors who in any case cater to other manufacturers
also or sometimes use imported spares.
Quite
a deal of hard work went into making airForce a known
brand among the corporates. Today, airForce has set
service benchmarks by attending to all complaints within
two hours, and works 24x7 to cater to a spectrum of
clients, including software and BPO companies, discotheques,
bars, hospitals and coffee bars that remain open late
night. One of the bigger challenges that airForce has
overcome is the compression of the time taken to attend
to complaints and breakdowns. In the bargain it managed
to give the small and mid-cap dealers a run for their
money in the criteria of customer stratification.
AirForce
has evolved one of the trusted names among top notch
corporate groups like Wipro. City Bank, Standard Charter
Bank, Cadbury, L&T, Star TV, Essar, Cipla, HDFC,
IL&FC, PCS, PriceWaterHouseCoopers, Blue Cross,
Labs Mariel, Barista. Tata Tele, Dr.Batra Clinic. UT
Star and to name a few.
In
the past decade, AIRF has grown from having five to
over 1,000 customers and maintained over 30,000 tonnes
of air-conditioning per day.
It
has offices in more than six cities in India and has
plans of becoming a pan-india company by 2009. The group
also has plans to spread to Middle East countries that
rely heavily on air conditioning and where the need
for dependable service providers like airForce and solution
providers like airfield is predominant.
AirForce
employs approximately 500 people and expects this number
to swell to 5,000 by 2009. The group did away with franchising
in order to ensure high quality control and loyalty.
AirForce and Airfield today handles air conditioning
business worth over Rs 35 crore and plans to take this
to over Rs 100 crore in next three years. AIRF also
plans to set up a technical institute of its own in
the near future.
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