The threat from the Doshi Group was a cloud, but Harsh's response became a deluge. If established shops were being intimidated, he would create a new, untouchable retail network—one that was mobile, widespread, and answered only to him. The "Swaranjali Street Carts" initiative was born not in a boardroom, but from the visceral memory of his own beginnings. He knew the power of a direct sale, of looking a customer in the eye.
Sanjay, in his element, became a general marshaling an army of entrepreneurs. The plan was simple, scalable, and brutal in its efficiency. Bharat Electronics would provide the cart—a bright, saffron-colored, hand-pushed wagon with the 'Swaranjali' logo emblazoned on the sides and a large, fixed umbrella for shade. It came equipped with a secure cash box and a display holding fifty radios. The vendor, often a young man from the very streets Harsh had once hustled on, would provide the hustle.
The terms were revolutionary. No upfront cost. The vendor would receive the cart and the initial stock on a consignment basis. For every radio sold at the fixed price of 125 rupees (Standard) or 165 rupees (Deluxe), the vendor kept 15 rupees. The rest was returned to the company. It was a profit-sharing model that turned every street vendor into a motivated, commission-driven salesman for the Harsh Patel empire.
The initial capital outlay was significant. Each cart, with its custom branding and construction, cost 1,500 rupees. Stocking it with 50 radios represented an investment of 4,250 rupees at cost. For 100 carts, that was 5,75,000 rupees tied up in assets and inventory.
Harsh approved the expenditure without hesitation. "This is not an expense, Sanjay. It is the purchase of a nationwide sales force. A sales force that no Doshi can intimidate because it owns nothing until it sells something."
The first hundred carts hit the streets of Mumbai, Pune, and Ahmedabad. The effect was instantaneous and electrifying. The bright saffron carts became beacons. At railway stations, where the weary commuter was a captive audience, the promise of a cheap, reliable radio was irresistible. The vendors, their own fortunes tied directly to their sales, became masters of persuasion. They demonstrated the crystal-clear FM reception, the sturdy casing, the proud "Made in India with our own chip" slogan.
Meanwhile, the pressure on the component suppliers intensified. While the plastic supplier had been cowed, a key provider of speakers from Delhi suddenly announced a "production delay." Deepak delivered the news grimly.
"It's Doshi's doing, no doubt. They buy ten times the speakers we do. This delay could halt our entire Standard line in a week. Our stockpile is low."
Harsh didn't flinch. This was a predictable move. "What's our cost on the speaker?"
"Eight rupees per unit."
"And the supplier in Delhi is the only one?"
"No, there's a smaller one in Chennai. But their unit cost is nine rupees. And the logistics cost would add another fifty paise per unit."
A one-and-a-half-rupee increase per radio. On a volume of 10,000 units a week, that was 15,000 rupees in lost profit. A classic squeeze play.
"Switch to the Chennai supplier immediately. Pay the premium," Harsh ordered. "And send a message to our former Delhi supplier. Tell them that as of today, they are blacklisted from all future business with the Harsh Technologies group. Not just for radios, but for any product, forever. And make sure the industry knows why."
It was a costly short-term decision, but a necessary one to establish his reputation for ruthless retaliation. He would not be bullied. The message needed to be clear: siding with Doshi carried a permanent cost.
End of Month 1 Financial Report - Bharat Electronics (Radio Division)
· Units Produced: 48,500 (42,000 Standard, 6,500 Deluxe)
· Units Sold: 45,200 (39,500 Standard, 5,700 Deluxe)
· Total Revenue:
· Standard (39,500 units @ 110 Rs/unit): 43,45,000 Rs
· Deluxe (5,700 units @ 165 Rs/unit): 9,40,500 Rs
· Total Revenue: 52,85,500 Rs
· Cost of Goods Sold:
· Production Cost (48,500 units @ avg. 87.5 Rs/unit*): 42,43,750 Rs
· Note: Increase due to higher-cost speakers and rejected plastic casings.
· Gross Profit: 10,41,750 Rs
· Operating Expenses:
· Marketing & Launch Event: 5,00,000 Rs
· Salaries & Factory Overhead: 8,00,000 Rs
· Logistics & Distribution: 3,00,000 Rs
· Street Cart Program (100 carts @ 1,500 Rs + Initial Stock): 5,75,000 Rs
· Total Operating Expenses: 21,75,000 Rs
· Net Profit/Loss (Month 1): (11,33,250) Rs
A loss of over 11 lakh rupees. The number glared from the page. The massive upfront investment in the street cart network and the lavish marketing launch had plunged the division deep into the red.
Sanjay looked despondent. "The carts... they are a success, Harsh Bhai, but the cost..."
Harsh studied the report, his expression unreadable. He pointed to the 'Units Sold' figure. "We sold 45,200 radios in our first month. The Doshi 'Trumpet' sold an estimated 60,000 units across India. We are already at 75% of their volume with one product, in a limited geographical area." He then pointed to the 'Units Produced' figure. "We produced 48,500. Our inventory is growing by 3,300 units. That's a problem. We are overproducing for our current sales channels."
He stood up, pacing. "The loss is acceptable. It is the cost of entry into a market dominated by a giant. We have built a brand and a distribution network in thirty days. Now, we monetize it. Deepak, slow down the Standard line production by 20%. Focus that capacity on the Deluxe model, where our margin is better. Sanjay, I want the street cart program expanded to 500 carts. Target Gujarat, Madhya Pradesh, and Karnataka. And negotiate a bulk discount from the cart manufacturer. If we're ordering 400 more, the price should drop to 1,200 rupees per cart."
The room was silent, absorbing the audacity. To double down on the very initiative that was causing the loss.
"Harsh Bhai, the loss..." Sanjay began, worried.
"Is an investment," Harsh finished. "I am not looking at next month's P&L. I am looking at next year's market share. Doshi is trying to win a battle. We are winning the war. They are defending their 175-rupee radio. We are building an ecosystem. Now, get me a projection. How many carts do we need to break even?"
Deepak and Sanjay worked through the night. The answer came in the morning.
"With 500 carts," Deepak reported, his eyes bloodshot but bright, "each selling an average of 10 radios a day, we move 5,000 units daily through that channel alone. That's 150,000 units a month. At our current profit structure, even with the higher speaker cost, that volume would generate a net profit of approximately 15 lakh rupees per month. We would recover the entire initial investment in the cart program in less than two months at that volume."
A slow, cold smile spread across Harsh's face. The numbers were the music he loved most. The initial loss was just the downbeat before the crescendo.
"Execute the order for 400 more carts," he said. "And send a message to the Doshi Group. Not a letter. A product. Send their CEO a 'Swaranjali Deluxe' radio. With a complimentary set of batteries."
It was more than a taunt; it was a declaration. The street vendor's symphony was just beginning, and its tune was one of relentless, overwhelming volume. The loss on the ledger was temporary. The foundation being laid was permanent.