Have you ever thought how every FMCG products available to you is available to you in small packs and sachets? Who invented this and why this is such an important revolution in the history of FMCG industry? Let me drive you through this story. You might have heard of the famous “CHIK” shampoo. Right! Why I’m asking this, you will know in a minute. Chik is the acronym for Chinni Krishnan, the man behind sachet revolution. Chik is the company founded by C.K. Ranganathan, to make his father dream come true, who was the younger son of Chinni Krishnan.
Chinni Krishnan was a Tamil Nadu based agriculturist and was into pharma business. He was always concerned by the sight of untidy poor children walking on the streets. He dreamt of the day when common man could get the luxuries that rich people enjoy. Earlier in those days, even shampoo, body lotions, hair oil, talcum powder and other FMCG products were specifically made for the upper class of people, at times this didn’t even include some white-collar officials. So, we are really talking about rich people. He used to say, “Whatever I make, I want my products to be so affordable that even coolies and rickshaw pullers can use them.” He though of the idea long before the multinational companies have any idea about the potential of this idea.
This revolution was based on the idea that if a shampoo bottle costs 40 rupees and can make 40 hair wash, it can be divided into 40 small sachets of 1 rupee each making them affordable to everyone and fulfilling its purpose. Selling talcum powder in 100gm, 50gm and 20gm sachets was the start of sachet revolution by Chinni Krishnan. Chinni believes that even liquid can be stored in sachets and tried variety of plastics to make such sachet and got the hang of it. Unfortunately, he died in 1979 at a young age of 48, just being after two years in sachet business.
This wasn’t the end though. His sons entered the business to repay his dad’s debts. But they took the opportunity and launched Velvette shampoo which was a great success in south India. But soon after C.K. Ranganathan parted his ways from his elder brother Dr. Rajkumar as he was not able to see his vision. So, he started Chik shampoo at 1 rupee per sachet which was half the price of Velvette shampoo that costs 2 rupee and was a direct competition to it. Chik grew exponentially and soon the company became one of the leading companies in FMCG segment in India with a turnover of around 1500 crores or $200 million.
Chinni Krishnan was able to identify the problem and have consciously taken steps to make a change that later becomes a revolution. This simple idea is now used by entire FMCG industry and they are making billion from the same. Soft drinks in small bottles by Pepsi and Coca-Cola , hair oil sachets by parachute, butter cubes by Amul and more. Tell me in the comment section if know any such story and if you find this informative.
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One thought on “The Sachet Revolution”
This is really mind blowing and at the same time heart warming. Chinni Krishnam Sir really showed the world, how can 1 single ruppee can change the markets. Totally loved it ❤.
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