From Bullock Carts to Spice Empire : The MDH Spices Success Story & Downfall

By Anand Maurya June 24

Early Life of Mahashay Dharampal Gulati and the Foundation of MDH Spices

Mahashay Dharampal Gulati was born on 27 March 1923 in Sialkot, which is now in Pakistan. It was his father, Chunnilal Gulati who owned a spice shop named Mahashian Di Hatti in Sialkot in Sialkot.

At the age of just 10 in 1933, Mahashay Dharampal dropped out of school because he was beaten by a teacher. He soon began working for various jobs before joining his father’s spice business. Unfortunately, the family had to leave Sialkot during the partition of India in 1947 and eventually, they settled in New Delhi after spending time in a refugee camp in Amritsar.

After coming to Delhi he used to ride a bullock cart. But, very soon he left the job and his only interest was to open a spice shop just like his father. After selling his bullock cart with that money he started his spice business and kept the same name as his father’s business. Despite having lots of competitors in the market, his company focused on providing quality products to customers.

He started offering spices which did not have any added chemicals despite thinking that he would face loss. Very soon looking at the quality of his products, mdh spices success story started to grow rapidly. He also introduced the concept of ready-to-use ground spices, which was quite innovative.

Challenges Faced by MDH Spices and How They Overcame?

MDH Spices faced numerous challenges throughout their journey, but through strategic decisions and unwavering commitment to quality, they were able to overcome them. Some of the key challenges faced by the company were the following:-

Quality Control – Quality control for spices was always an issue in the market. Maintaining consistent quality in the market where consumers needed assistance to meet basic needs was a challenge. However, Mahashay Dharampal Gulati refused to make any compromise on the quality of its products.
Economic Constraints – MDH operated in an economically disadvantaged market. The production cost of these spices was very high but, had to provide them at a reasonable price in the market. This resulted in razor-tin profit margins and the risk of running a loss-making business.
Market competition – It was a highly competitive market, so standing out as a spice brand required innovative marketing strategies.

Here is how the company overcame these challenges:-

Commitment to Quality – MDH always prioritised quality control measures. This is how they established themselves as a trusted brand known for spices.
Innovative Marketing Strategies – MDH bought innovative marketing strategies and campaigns which were focused on building personal connections with consumers. This is how it differentiated itself from competitors and gained loyalty.
Adaptability and Resilience – Despite facing economic constraints and regulatory challenges, this company adapted its operations to ensure compliance with food safety standards while maintaining affordability.

Branding Strategies Used by MDH Spices

Mahashay Dharampal Gulati wanted to do something different so people could recognize the brand. He wanted to push his brand to a big level. Here are some strategies used by MDH Spices for branding:-

Quality control – Quality control has always been the main feature of MDH Spices. This company never compromised on their quality. The spices were hand-pounded by labourers and added no preservatives.
Packaging – MDH was previously selling spices by providing customers with a plastic bag. But, this time instead of using plastic they put the spice into a plastic bag and then into a wooden box. In this box, they put their brand name, how masalas were made, the owner’s photo was used on the box, and other important details.
Influenced by big business – On a business trip to Mumbai, Mahashay visited a big spice shop and was amazed by the interior and design of the shop. Everything inside the shop looked very well-organized and perfect. So, inspired by this he came back to Delhi and wanted to do the same. He upgraded his shop where each spices were put on different shelves and decorated interior.

Philanthropy of Mahashay Dharampal Gulati

Mahashay Dharampal Gulati was not only a renowned businessman but, was also a dedicated philanthropist. Here are some key aspects of his philanthropic endeavours:-

Education initiatives – Gulati has founded 20 schools to promote primary and secondary education. This includes MDH International School, Mahashay Chnnilal Saraswati Shishu Mandir, Mata Lilawati Kanya Vidyalaya, and others.
Healthcare initiatives – Gulati has set up a 200-bed hospital in New Delhi to cater to the healthcare needs of the underprivileged.
Charity foundation – His charity foundation, named Mahashay Chunnilal Charitable Trust after his father took various charitable initiatives.
Padma Bhushan Award – In recognition of his outstanding contributions to society, he was honoured with India’s prestigious Padma Bhushan Award in 2019.

Key Takeaways for Aspiring Business Owners

Here are some key takeaways for aspiring business owners:-

Never compromise on quality – From starting to the peak of MDH he faced quality control issues. Despite facing all of these challenges and barriers, he never compromised on the quality of his products. He was the supervisor, manager, and quality-checking officer for all of his products.
Penetration into different markets – To make quality spice available for all Indians, a simple yet great strategy used by Gulati was to open a new branch in different areas. This is how he not only provided the best spices but, covered a lot of areas and expanded his business.
Innovative products – MDH was always innovative and brought in new products in the market. Initially, they only sold single-grinded spice to customers. But, when he found out that people were using different spices while cooking so they started manufacturing mixed spices. Some of their mixed spices are Pav Bhaji Masala, Chole Bhature Masala, Sambhar Masala, and many more.
Building a strong team – Surround yourself with talented individuals who share your vision and values.
Pursue growth opportunities – Always have confidence in your purpose and capabilities to pursue larger projects and clients who can elevate your business.

Recent Controversies & Downfall

Recently, in Singapore and Hong Kong, a report revealed that some of MDH’s spices had salmonella and ethylene oxide. This led to bans in Hong Kong and Singapore. The chemical, ethylene oxide is mostly found in pesticides. The reports reveal that this chemical is being used more than the standard amount and can lead to cancer.

These occurrences have raised concerns about the quality of MDH’s spices. The company made huge losses when such accusations were made. But, the Indian government is actively taking necessary steps to make everything right.