ENTERPRENEURSHIP

PADMASHREE SHAHNAZ HUSAIN

SHAHNAZ HUSAIN

SHAHNAZ HERBALS INC. Shahnaz Husain, CEO of Shahnaz Husain Herbals Inc, is a prominent Indian female

entrepreneur best known for her herbal cosmetics, particularly skin care products.

Shahnaz Husain is one of India's most successful women entrepreneurs. Her company,

Shahnaz Husain Herbals is one of the largest manufacturers of herbal products in the

world.  It formulates and markets over 400 products for various beauty and health needs

and has a strong presence across the globe, from the USA to Asia. 

INTRODUCTION:

Shahnaz Husain was born in samarkhand she was born in a royal Muslim family which

migrated from Samarkhand to India and later held high positions in the princely

kingdoms of Bhopal and Hyderabad before India's independence. Shahnaz received her

schooling in an Irish convent and because of the influence of her father, Chief Justice

N.U. Beg, she developed a love for poetry and English Literature. She thus had the

advantage of growing up in a traditional family and receiving a modern education. She

was married at the age of 15 and was a mother by the next year. When her husband was

posted in Teheran, Iran, she developed an interest in beauty treatments and decided to

study cosmetology.

To support the expenses of the training financially, she wrote articles for the Iran Tribune

on various topics under different names. In the course of her studies, she learnt of the

harmful effects of chemicals on the human body.

Consequently, she turned her attention to Ayurveda, which she believed was the ideal

alternative to chemical cosmetics, which not only harmed the human system but also led

to the deterioration of the environment in the long run.

After leaving Teheran, she trained extensively in cosmetic therapy for 10 years in some

of the leading institutes. After training for 10 years in cosmetic therapy and cosmetic

chemistry, at leading institutions of the West, like Helena Rubinstein, Arnould Taylor,

Swarzkopf, Christine Valmy, Lancome and Lean of Copenhagen, Shahnaz returned to her

roots and studied Ayurveda, the ancient Indian system of herbal healing. On her return to

India in 1977 she set up her own salon at her house in Delhi with an initial investment of

Rs. 35000. In contrast to the existing salon treatment methods she devised her own herbal

treatments. She introduced a totally new concept of "care and cure". She also began to

formulate her own Ayurvedic products. This was the beginning of the legendary Shahnaz

Herbal and other ranges. In fact she has become known for her specialized clinical

treatments and therapeutic products for specific problems like acne, pigmentation, scars

and blemishes, skin-sensitivity, dandruff, hair loss and alopecia.

ENTREPRENEURSHIP - THE SHAHNAZ HUSAIN WAY :

Shahnaz Husain when started her salon just hanged a banner outside the salon with her

qualification and services offered by her and within few days she was booked for the next

6 months, after which she removed the banner and then never advertised until the lauch

of forever products in 2008, after her grandson Sharik joined the business. Shahnaz

husain no-advertisement policy also gained her a lot of popularity because it proved the

very fact that, it is the product and service of an enterprise is what that matters. Shahnaz

Husain said in an interview to The Financial Times in 2002 “I am a strong believer in

‘word-of-mouth’ publicity because a satisfied client is the best advertisement”. Shahnaz

Husain’s initial investment of Rs.35000 has now turned into a Rs.250 crore a year.

Shahnaz husain herbal employee’s 4200 people in 650 salons spread across 104

countries. The growth rate of the company in the initial years was 15-20% and the present

growth rate is 19.4%.

Shahnaz husain herbals has a well established R&D whose aim is to produce

skin and hair care treatments using Ayurvedic method of treatment, which uses natural

formulations and is chemical free and is not been tested on animals. She is the pioneer

and leader of Ayurvedic beauty products in the world offering “Natural Care and Cure”.

The Shahnaz Husain Group offers exclusive salon treatments geared to individual needs

as well as a number of commercial formulations for the treatment of specific problems

like acne, pimples, pigmentation, dehydration, alopecia (hair loss), etc.

According to the Group, ayurvedic products are well

suited to human skin and hair as they are non-toxic and have no harmful side effects. The

human body adapts well to the natural treatments of Ayurveda while it has an inbuilt

resistance toward chemical treatments.

THE TURNING POINT:

The turning point in her business came when she represented India at the Festival of India

in 1980. Her team was given a counter in the perfumery section of Selfridges in London.

She managed to sell her entire consignment in 3 days and also broke the store's record for

cosmetics sales for the year. And then she was offered a permanent store at Selfridges.

From that day there was no turning back and Shahnaz husain captured a good market in

the cosmetic industry. Shahnaz husain said in an interview for forbes India 'If It Bears

My Name, It Catches On' and that is true. Her company produces 400 different

products on skin care, hair care and cosmetics. Shahnaz husain says she has no

competition when asked about her competitors by Forbes her answer was “We don’t

have any competitors. Dabur is into health. Clarins doesn’t do cures. No one does cures

but us.” This shows her confidence and the truth of her products. Currently, the Shahnaz

Husain Group has over 400 franchise clinics across the world covering over 138

countries. Her group’s products are sold in leading global stores including

Bloomingdale's (New York), Galleries Lafayette (Paris), Seibu (Japan), Harrods and

Selfridges (London), and La Rinaeccente (Milan).

EXPANSION AND DIVERSIFICATION OF

SHAHNAZ HUSAIN GROUP:

Shahnaz Husain products were initially sold only in her salons which where located in

and across delhi and in early 1990’s Shahnaz Husain stepped into the retail market which

boomed and gained huge profits for the company after which she stepped in the

international market by setting up new Factories at Roorkey and Noida to meet the

demand for both national and international market. Shahnaz husain used the franchising

mode to expand her business in India and abroad. The company has around 600

franchises and associated clinics aound the world. The company has 400 distribution

partners, through which 90 percent of its products are sold. In 2002, Shahnaz husain

group obtained distributor rights from Australia, New Zealand and Fiji Islands. The most

interesting and impressive fact in the Shahnaz husain group franchising mode is that it

does not finance it franchises nor does it have any share in the profit it uses the franchise

to sell the products and satisfy it customers and provide services needed by them.

Shahnaz Husain started a pioneer of vocational training in cosmetology in India, having

started her professional schools at a time when only apprenticeship training was

available. Shahnaz Hussain group has expanded and diversified in its 33 years of

existence. Shahnaz Husain group has lauched a Fairness creams for both men and women

in the name FOREVER. The Group has diversified into Ayurvedic centers for

Panchkarma, Dhara and Kerala massage. It has also set up two Shahnaz Husain

Ayurvedic Health Resorts, one near Delhi and another in collaboration with the

Hyakumata group of Japan in the US island of Saipan. These resorts which can

accommodate about 200 people at a time, aim at providing urbanites treatments and

programs designed to counteract the stress of modern life. The Group has also been

holding discussions with major five star hotels in New Delhi and New York to set up

health spas. Shahnaz Husain group has also launched a line of health drinks under the

brand name FITNESS FEISTA SHADRINK, these drinks are low calorie, cooling drinks

to be consumed in summer. A special range of ayurvedic products under the brand name

SHAPET.

In an innovative move, Shahnaz Husain has started work on formulations that

astronauts could carry with them in their extraterrestrial sojourns to protect their skin

from the ravages of space travel and slow down the ageing process. She has sent National

Aeronautics and Space Administration (NASA) free samples of her moisturizers, hoping

that they will be used on space expeditions. She captured the markets around the world

and now she wants to conquer space.

The company has occupied a strong market share and has become a competitor

to other company but still each company faces problems and risk. Shahnaz Husain still

dominates the first position in the cosmetic and beauty industry though many new

companies have entered like BIOTIQUE and HIMALAYA . But Shahnaz Husain is still

confident that it is only her products that cure.

SHAHNAZ HUSAIN FAMOUS QUOTINGS:

“It is important to have a dream and to believe in the magic of your

dreams”says Shahnaz.

“I do not sell products. I sell an entire civilization in a jar” says Shahnaz.

“I am a strong believer in ‘word-of-mouth’ publicity because a satisfied

client is the best advertisement” says Shahnaz.

Shahnaz believes that a true entrepreneur is a person who has independence

of spirit. “One should be innovative, dynamic and willing to try every

avenue towards success”.

Janine Sharell, Correspondent, CNN said about Shahnaz

husain-

"She lives, sleeps, breathes her business. She is consumed

with building a successful company which she has done."

ACHIEVEMENTS AND AWARDS:

The “Bharat Nirman” award, 1989, for her contribution towards beauty culture.

She was awarded Padma Shree in 2006 from President Dr.Abdul Kalam.

The Government of India “Woman of the Year 1986 Udyog Ratan Award” for

promoting Indian exports.

She is the first woman to be so honoured, in the 107-year history of the Success

awards.

"Rajiv Gandhi Sadbhavana Award" 1995 for promoting Ayurveda and Herbal

care.

She was awarded Success Magazine's "World's Greatest Woman Entrepreneur"

award in 1996.

She was awarded “the Arch of Europe Gold Star Award for Quality”.

She was awarded the Golden America Award and the Indian Government Awards

for Export Excellence.

She was awarded “The 2000 Millennium Medal of Honour”.

She has been honoured with two prestigious international awards for Quality

Excellence and Outstanding Woman Entrepreneur 2002, by Global Quality

Management, in London.

“The Gold Award for Woman Entrepreneurs” in 1988 for putting India on the

world cosmetic map.

The “Indira Priyadarshini” award for contribution towards national causes, 1989.

“Gem of Alternative Medicine,” given by the Indian Board of Alternative

Medicine, Kolkata, in 1996.

The “Priyadarshini Award” given by the Federation of Women Entrepreneurs, 2000.

SHAHNAZ HUSAIN AS AN ENTREPRENEUR:

Shahnaz husain is an Innovative entrepreneur she can be categorized as a Business

entrepreneur because her life reflects her eagerness to start a business on her own terms

and she adopted an innovative method and used AYURVEDA as the base to produce

products skin and hair care treatments. She is pure entrepreneur and a first-generation

entrepreneur she has achieved the heights only on her terms and thus as she said anything

that carries her name catches up is very true. She can be categorized as a Growth

entrepreneur who climbed the ladder slowly but reached each height as she desired.

Factors that influenced Shahnaz Husain was her desire to make use of her

entrepreneurial expertise, she did not belong to a business family but she was from a very

well educated family and thus she wanted to make use of her study on cosmetology and

ayurveda it was her desire to produce cosmetics and beauty products which were

chemical after she read an article about chemicals in cosmetics and how chemicals were

harmful. She then made up her mind to produce products on the basis of ayurveda studies

and to produce chemical free beauty,skin and hair care products. Thus it is her

personality which is the factor which has made her a successful entrepreneur.

Shahnaz Husain can be given the title of India’s first successful women

entrepreneur. Her dedication towards her work, her ability to dream and exhibit it and to

think innovative and to lift her business to her terms is just unbelievable. She is a women

who lives for her products as she said her products are chemical free, there is no other

exception. Her products are made of pure natural products which are produced as per the

AYURVEDA studies and are chemical-free. A product sold on her name carries the

purity of natural ingredients and chemical-free there is no need to cross-check the product

and the results are as expected and as per the instructions on the jar. Her customers are

her advertisers and the aim of the company is to satisfy their customers and to produce

products as per the need of her customers. Shahnaz husain has made her name not only in

the beauty business in India but all over the world. Her kohl to her fairness cream for men

have been a great hit all over the world. Shahnaz Husain is an inspiration to each and

every individual who wants to become an entrepreneur.