The IIM Alumnus Who Turned Down a Rs 1 Cr Job to Launch a Rs.100 Cr Cosmetics Empire
Turning down a well-paying corporate job in favour of the not-so-certain entrepreneurial career is not uncommon these days. But back in 2007, when the startup culture had not yet become mainstream, it was a huge deal. Most people, even well-wishers and those with industry knowledge, would have advised against taking such a plunge.
For Vineeta Singh, Co-founder and CEO of SUGAR cosmetics, it was no different. All of 23 and fresh out of college, the IIM Ahmedabad graduate had to choose between the comforts of a settled life or the exciting prospects that come with being an entrepreneur. And what she chose is a no brainer.
Turning down a Rs 1 crore pre-placement offer from Deutsche Bank, Vineeta went on to embrace the startup life, setting an example for not only her batchmates but also for an entire generation of entrepreneurs facing a similar dilemma in those days.
“The fact that at 23, I was featured on the cover of the WEEK for being the first and youngest B-school graduate to decline a Rs 1 crore placement offer from a global investment bank to start up my own company was a risky plunge,” Vineeta tells Makers India.
But unarguably, it was a decision worth the risk.
Today SUGAR is a cult-favourite makeup brand amongst millennials with a net revenue of over Rs 100 crore in FY19-20. It is a cosmetics line singularly focussed on the particulars of the Indian skin tone. No wonder then that the brand – which has products designed to be high on style and performance – is leading a “matte” revolution in the industry. Particularly, with its wildly popular range of Matte Liquid Lipsticks and Matte Eyeliners.
A homegrown alternative
SUGAR has made headways for Indian brands in the domestic cosmetics and cosmeceutical market –growing at a CAGR of 25 percent – and is set to make India one of the top five global markets by revenue by 2025, as per a RedSeer report. But it is not the only milestone achieved by the brand.
Breaking the monopoly of international players in the local market, the homegrown cosmetics startup has set a precedent by providing Indian consumers – undoubtedly one of the largest in the world – with an alternative and more compatible option.
“The Indian beauty industry back in 2014 had its own constraints, dominated by the multinationals, very few of whom actually had a range suited for the Indian complexion. That is why consumers either preferred to source makeup and beauty products from other countries or ended up with incorrect shades that wouldn’t pair with Indian skin tones,” says Vineeta.
This is the pain point SUGAR wanted to tackle. With its premium beauty products, the startup aimed to provide a more compatible and affordable option to Indian beauty connoisseurs. And if the numbers are an indication, the brand is clearly steering in the right direction.
SUGAR recorded a growth rate of 4X in FY19, clocking in Rs 200 crore in sales. Being a digitally native brand, it even witnessed strong traction, generating more than 300,000 orders through its website and app.
“We have aggressively scaled our retail presence from 87 in 2017 to over 1,700 retail touchpoints to date,” says the co-founder adding, “We are on track to building a strong online and offline footprint and expanding our distribution to bring our much-loved ranges to the doorstep of all our fans.”
Partners in business and in life
Not many might know, but SUGAR is the brainchild of Vineeta and Kaushik Mukherjee, who is also her husband. The duo crossed paths during their B-school days and turned their chemistry into a life-long partnership – personally and professionally.
“We studied together at IIM Ahmedabad and both of us interned at investment banks and ran our own startups before joining forces,” recalls Vineeta. “I was passionate about consumer businesses targeting women and Kaushik was excited about building an ecommerce company. So, a digital-first beauty brand turned out to be a wonderful overlap of both of our interests,” she adds.
In 2015, the two joined hands and turned an idea into a full-fledged business potential. A millennial-approved cosmetics brand, SUGAR is a billion-dollar opportunity today, one which Vineeta and Kaushik shoulder mutually, dividing roles and veto powers on certain verticals between themselves.
“While I handle finance and products, Kaushik looks after tech and operations,” Vineeta tells us, adding that this helps them steer clear of conflict and have an agreement on who has the veto power on what kind of decisions and who gets to take the final call.
Clearly, this strategy seems to be working perfectly for the two. It has not only helped them steer through difficult decisions but also navigate through the early days of their career when the duo was juggling between business and starting a family.
“Being new parents is typically a very stressful time for any couple, even more so when you’re running a company together,” says the entrepreneur, acknowledging that they too had their share of ups and downs.
“But we figured out a way to divide responsibilities better. Kaushik has been quite a hands-on dad and my mom agreed to move to Mumbai for almost two years to help out during the toughest months,” she adds.
Navigating through a pandemic
Lessons learnt the harder way are lessons learnt for life. Vineeta’s journey exemplifies this in every shape and form. An entrepreneur, a mother, a homemaker, and a juggler of multiple roles, the SUGAR boss has indeed shouldered great responsibilities and faced challenges along the way – perhaps a little more than her male counterparts in the startup community.
And it is, perhaps, this preparedness that has put her and her team of 1,400 employees in a better position to deal with the current crisis. In the middle of the coronavirus pandemic, when most businesses are struggling to make their ends meet, the team at SUGAR – albeit a few hiccups – is staying focussed, driven, and in the best shape possible, she says.
“We are training close to 1,050 business associates, on around 60 products, with more than 60,000 training videos and at least 40 online quizzes to better their skills,” adds Vineeta, “Products training about important things like grooming, how to be customer-centric, how to keep up with different visual merchandising trends, using gifts with purchase and other offers provided by the brand to a selling advantage, etc., are being focussed upon.”
The idea behind this, as the entrepreneur explains, is to use this time to strengthen an already strong team.
On a positive note, Vineeta says, “I am blessed to be working with a fast-growing, energetic team, which is predominantly made up of women. On most days, this is what keeps me really excited about getting to work, problem-solving with them and building our company together.”
(Edited by Saheli Sen Gupta)
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