I always wanted to be an entrepreneur

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The cliché goes that necessity is the mother of all invention. But for Kranthi Kiran Vistakula, it was as much his innate appetite for innovation, as his personal need that led him to develop his brilliant ClimaCon technology for heating/cooling, while still a student. We talked to this young and dynamic innovator about how he took his spark of an idea and transformed it into Dhama Innovations, a company that was recently listed among the top 100 most promising technology companies in Asia.

Tell us something about your journey till now.
After completing Bio-medical engineering from Hyderabad, I went to Louisiana University and then to MIT, Boston for my Masters. But most of my learning happened from my friends, peers and from the society itself. Classrooms did not teach me anything. From childhood itself, I was never much concerned about marks or ranks. I believed in learning things by doing them. So my journey so far has been about finding new solutions and trying to do things differently.

From MIT to Dhama Innovations, how did that happen?
Dhama or any other company was inborn in me. I always wanted to be an entrepreneur. At MIT, a lot of innovation goes on everyday and you get tremendously inspired. My innovation was born from my personal need. Boston gets very cold and I used to wear multiple layers of clothing. But as soon as you get into class, you have to take them off because it is a heated environment. I was too lazy to keep putting on and taking off clothes. I wanted to make myself comfortable in just one layer that heats up when I go out and cools when I come in. That is how the idea triggered in my mind and I made my first heated jacket. It was very scary; it had a big fan and looked as if I were carrying a bomb around. Then I refined the jacket using new technology. That jacket won many awards. It gave me confidence that this product has true potential and I came to India to start up on my own.

My first prototype weighed 5 kilos and used existing technology. But I felt there was no point in making a heavyweight product that no one would use. So I started working on a technology that would be a game changer. And now after so much effort and work, it has gone down to 650 grams; almost as much as a regular pair of jeans weighs. From 5 kilos to 650 grams, is a tremendous change.

What were the major challenges that you faced in the initial period of starting your own company?
In a startup there are always challenges. When I came back to India I had absolutely no idea how to set up a company. So I asked a friend and then went to a CA to start a company. The first major challenge was dealing with the government systems for forming a company. Even though it is fairly simple, if you don’t know exactly what to do, you tend to make mistakes like naming your company incorrectly. The next initiative was getting the right talent. How do you motivate people to work for a company that has never been heard of? How do you excite people to give you money for your company? So attracting right talent and retaining them, attracting right partners for funding, selecting a strategic location – all these were challenges. But I think we have done pretty well in all these aspects till now.

In terms of funding, how smooth or difficult has your journey been?
In the initial years, I won a lot of competitions. So I had free money coming in. I would definitely advise every entrepreneur to get money through competitions. Getting government funding was also fairly easy. Definitely my education and my first prototype helped a lot. Everyone who saw my first prototype was very amazed by it. So I got funding within three days of applying; it was really exciting. The next funding was also easy to get. But over time I have realized that green money in itself is not money. The strategic value that the funding adds is more important to a startup than the actual value of the money itself.

By ‘strategic value’, I mean the networks, connections and resources that the investors come with. For us, if a company that is already in the same market or entering the same market puts money in our company, it adds strategic value; because then we can use their distribution channels and networks and their learning. These intangible benefits become more valuable than the money itself. So you have to select these partners as carefully as you would select a wife.

Do you think lack of funding is a major hurdle that prevents most design companies from converting their ideas into products and services and building a business?
There is no lack of funds really. There are hundreds of people in India willing to put in money. There are about 15 VC firms and many angel investors. But getting money is about salesmanship. How are you selling yourself? You should be able to show people the big picture. They don’t want a short-term arrangement where you take money and then repay it. You should be able to tell them how the 1 rupee they are putting in now, will become 50 rupees in 5 years. If you are able to tell why your product has potential, how many people will be affected by it and why and how people will buy your product, then money is available in India for anything. So as an entrepreneur, you have to sell your company and vision at every step – when you are raising money, getting new partners, getting vendors and getting people to work for you. Only when you become a true salesman will your business move forward.

What are the products that Dhama Innovations currently offers?
At Dhama, we have developed a technology called ClimaCon for heating and cooling and we are trying to find more and more applications for it. We have made products for humans; we were also trying to make a product for cows. Our current product line is –jackets, shoes, gloves, headgear and neck-scarves. These are aimed at people who work in harsh climatic conditions, like military and industrial workers, and for people who indulge in outdoor sports like golf and who desire thermal comfort. We also have medical products for healing/cooling therapy for people with arthritis, knee pain and sports injuries.

And when can we expect these products in the market?
The technology development is complete and we have already done trials. Our products have been trialed at Siachin glacier in the Himalayas at an altitude of 18,000 feet, with temperatures as low as -40 degree Celsius in the daytime. We have trialed them in different hospitals across India. Some of our products have been trialed by the US Army. The trials have been successful everywhere and we have got amazing reviews that we’ve invented something that has changed the thinking of the entire industry. We are at the final stage right now. In fact, we have started sales also. So Dhama is already in the market. But we are expecting to do a formal commercial launch in the next one or two months.

How big is Team Dhama?
Dhama started in January 2008 with just one person. Now, after almost 3 years, Team Dhama has 15 people – engineers, designers, management people, technical people and tailors.

You are an engineer by education. But you have extensively worked on the design, per say, of your products. Has it worked to your advantage or disadvantage?
To me, every education is the same. We just give them names and create distinction between them, the way we segregate humans by caste or color. But ultimately I have to solve a problem with the given resources, within the given constraints. Whether you call it engineering, design or anything else; it doesn’t make a difference. I think the best way would be to call it ‘problem solving’.

But has this ‘design vs. engineering’ segregation ever come up as an issue?
Yes, definitely. I have been told, “You are an engineer. How would you know about design?” I have also been told “You are not a finance or management guy; you will not be able to manage the company.” My answer to that was, “I learn by experience. I don’t go by what it is called. If I have to learn, I will learn it.” I have never known anything about textiles or garments. There was no need in my entire life to know about it. But the need came and I learnt about textiles and garments. When the need arises, you just do it. I know where my strengths and weaknesses lie. My strength is long-term vision, new ideas and new designs. But I am very bad at nitty-gritty like finance where I have to go and look at the numbers. So I get other people to do it. It is not that you cannot learn it, but it takes time. I think it is important for entrepreneurs to know when to stop and delegate work to someone else.

What have been the greatest words of encouragement and the harshest criticism that you have heard so far?
The harshest criticism I have heard is “This idea is stupid. It will not work in your entire life.” It came from a professor at MIT when I went to him for advice. A lot of people initially said that this would not be possible. It will have a lot of problems. But then where are there no problems? So those words of criticism motivated me so much that “I have to do it. I have to someday prove to this person that nothing is impossible in this world.” But then there were also people who said “This is the best innovation I have seen in my entire life.” And that was encouraging.

For an innovation driven company like yours, what are the key ‘must have’ elements?
For an innovation driven company, the key element is to have the right people in the company because it is not the idea that is going to take the company forward, it is the people who are going to shape its future. You can take a year to hire a person, but you should not take even a minute to fire a person if he is dragging your entire team behind. One other important thing is that if you maintain a strict hierarchical system in your organization, it will not motivate your people. So entrepreneurs need to drive the company through passion rather than being bosses. Finding the right strategic partners for funding is crucial again. As I said before, money always comes with strings. You have to know which strings can do what for you down the line. And there will be mistakes. It’s more important to learn from the mistakes.

Can you tell us briefly about the design process at Dhama?
Our process is fairly simple. When our design happens, the entire team gets involved. From the tailor to the technician, everyone is open to throw ideas. Different people are good at different things. So initially in terms of product design, we try to combine everyone’s expertise. Everyone tries his own stuff and then we come to a conclusion as to how we need to move forward. We follow the same process for other decisions. So I would say, our design process or decision-making process is fairly democratic. We make our decisions like a family. We take every aspect into consideration while designing – political, social, economic, eco-responsibility. But we don’t have a formal design process that goes step 1, step 2 and so on. I think it would be fairly restrictive to formulate a process because then everyone would be stuck to their same old thinking believing that ‘I have to go through this process.’ I don’t believe in process; I believe in getting the work done, no matter how. Maybe in my method there are delays. But atleast everyone is free enough to think differently and generate out-of-the-box concepts.

What are the milestones that Dhama has had so far?
Getting all products working with this version 1.0 of the technology that is ready to go to the market was a huge milestone. The trials, where people have validated our products, was another. Our first sale was the third milestone. Now we are waiting for our largest sale to be the next milestone. We name them as milestones, but for us they are a part of our day-to-day process. Getting funding and winning awards were milestones too.

You have won quite a few awards. Besides the money aspect of it, how have these awards helped you?
Awards change people’s perception towards your company and your product. The fact that someone has already verified and evaluated your idea and your company creates credibility in the minds of the investors and the people. And also in the minds of the employees who join your company. Plus you get media coverage and PR and your product awareness really shoots up.

You have also spoken at a lot of innovation seminars. What is your take on the innovation scene in India currently?
We Indians are very innovative, very smart. But as a group, our intelligence is zero. We don’t live as a society. Whereas in the US or other countries, the society intelligence level is high, even if the individual intelligence level may not be so high. They work as a team.

Also, our people innovation is lacking because we don’t think multiple steps ahead. To give an example, when the plane lands, you see all the people in the plane rushing towards the door. But if you think ahead, you will realize that there is no sense in doing that; because first you have to get down and get into a bus. Then you have to wait until the bus gets filled. Then you have to wait for your luggage. So if people think ahead and learn to think as a group rather than as individuals, innovation in India will really go up. When you start thinking about society and not have an attitude that the world ends where my nose ends, that is where innovation starts.

On that note, have you ever been tagged as an ‘Indian company’? If so, has it worked to your advantage or to your disadvantage?
It has been both advantageous and disadvantageous. In every scenario I project Dhama as an Indian company and Indian technology. But I emphasize and de-emphasize based on the situation and context. Everywhere in the world there is a general perception that Indians are smart. If you see any major innovation, there is an Indian involved. So there is no doubt about credibility of an Indian technology. But they are only doubtful whether a company from India as a group will do well. Whether they will be able to produce high quality products consistently without compromising on quality. That is the challenge we face and we are trying to beat that perception.

Where do you see Dhama Innovations in the near future?
In the future, we want to be a public company leading the global innovation scene. It is a long-term vision, but we want to be there. An Indian company with global, hi-tech products.

What do you think differentiates Dhama Innovations from the other startup companies?
Every startup is different in its own way because the person who is running it is different. The company’s DNA depends on how the key people in the company are. I feel that I am different from other people, but I cannot say how I am different. So I cannot say how Dhama is different from other startup companies.

JAM (just a minute…)
What is the best moment of the day?
Going to sleep.

One word that would define Dhama Innovations?
Revolutionary.

One word that would define your style of working?
Restless, dynamic.

As an innovator, one thing that you would like to change in the present system?
Eliminate corruption.

If you were an animated character, which one would it be?
Dexter.

Any role models?
Albert Einstein, Steve Jobs.

If someone wrote a biography about you, what do you think the title should be?
The tale of craziness.

What are you afraid of regarding the future?
I don’t want to break the expectations that people have from me.

What are the challenges you face in the present context?
In terms of work, I want the day to be of 48 hours and not 24 hours. In terms of personal challenges, I would like to control my restlessness and gain some patience.

One aspect of design and innovation you give the highest priority to?
Human comfort.

One aspect of business you give the highest priority to?
Clean and honest business.

One book you highly recommend to read?
Harry Potter, because of its sheer imagination. Any book that excites your imagination, you should read it.

As an innovator, your favourite innovation?
Air conditioner.

One motto for all startup companies?
Never give up!

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