ALS Pipe Enterprises : Carrying on Founder’s Legacy


An Article From Our Building and Construction, March 2013

Plumbing has seen many developments over the past. Until the nineties, the plumbing lines have been fitted with cast iron pipes and brass pipes have also been used in some critical points. But the last decade of the 20th century witnessed revolution in the piping system with plastics replacing these metals. Plastics started dominating all the areas of plumbing department and slowly other metals vanished. During this transformation, many dealers of older version have also disappeared from the scene. But one of those few names that did not only stand the storm, but also continued to dominate the market. The entity, ALS, is still a well-known name in the pipes and hardware market

ALS Pipe Enterprises Group, having diversified from cotton business to hardware in 1960 under the aegis of Mr. A.L. Singaram, grew magnificently as the sole authorised distributor in south India for Zenith Birla (India) Ltd of GD Birla Group thanks to its integrity, trustworthiness,loyalty and hard work. Zenith Birla has also just started their GI and MS pipe manufacture only in that year.

 

Now the entity is called ALS Pipe Enterprises Group and is managed by the founder’s son Mr ALS Alagappan, who is ably supported by his son Mr.A.L. Sinkaram. The company is authorised distributor for many products for the construction sector. The Group has established seven branches in four cities.
And the baton is in the hands of third generation of the family. There is no doubt Alagappan and his family are carrying his father’s legacy on to future generations of their family tree.

Basically a mechanical engineer, Alagappan was inducted circumstantially
into the business by his father immediately upon completing his studies. At that instance itself, he was asked to choose between Tamil Nadu and Kerala for marketing and he chose the former, saying his father had more knowledge on Kerala than him.
 
He has brought up this company, under his father’s tutelage, through sheer hard work and long travels. The trade, entirely new to their family business, was built brick

by brick. Original plan of Mr. Alagappan was to develop motors and pumps manufacturing business with his friend but it did not materialize for extraneous reasons. In the early years of pipes business, he used to travel extensively as his father handed over to him the marketing responsibility. He was also enthusiastic that the Birla company entrusted Karnataka and Andhra Pradesh areas for marketing to ALS. Not stopping at that, they increased the commission rates to 2 percent from 1 percent.

Here, Mr. Alagappan recalls an emotional incidence with his father. “On one occasion, my parents had gone to Tapovanam for a week. At that time, I was looking after the business. I worked entire shifts
dedicatedly and achieved a volume of around 1,100 tonnes compared to around 760 tonnes done so far.

When I reported this to my father on his return, he just asked, “Only this much?” I was upset and was
emotionally crying almost throughout the day. When my mother enquired on seeing me crying, I vented
my feelings and she revealed my father had all the praise for me but did not want me to know that as he felt it would be dangerous if I took it to head.”

 

Thus ALS became the sole authorized distributor of Zenith pipes for south India. Until 1991, Alagappan and his younger brother were looking after the business since his father’s demise in 1975.

By the time the brothers mutually split in 1991, area of operation of ALS has shrunk driven by the huge volume of business in Tamil Nadu alone and manpower shortage. It was also the period of vigorous entry of plastic pipes as a cheaper substitute for metals.

 



Mr. Alagappan is of the view that “it would be adequate if we concentrated on the current business.”
As a part of split, it was decided that Alagappan would cover areas - Coimbatore, Chennai, Erode and Trichy. He also got authorised distributorship of Zenith Birla. Now they are also authorised distributors for Finolex, Astral, Sintex and other brands for products like pipes and fittings, water meter, tanks, and valves and cocks.

Dwelling on the trend for pipes and fittings and construction sector, Alagappan commented that the market for pipes were good after 2005 and is weak for the past 6 months. It was a steady growth since 1991 and by 2005 the market grew phenomenally.

“We have achieved a turnover of Rs. 60 crore in the current year. We have fixed a target of Rs.
75 crore over the next 5  years. However, targets are fixed to us by the companies
and accordingly we do business.”

ALS - How it all happened…

Alagappan sums up the story of ALS Enterprises in his own
words:

My father started the company in 1938 for trading in cotton textiles. Earlier, having completed his education in Galle, the southern most part of Ceylon (now Sri Lanka), he came to India. My grandfather was in the business of importing and exporting textiles.

He and Dr.  Alagappa Chettiar were friends and the latter asked my grandfather to suggest a person to look after his textile business in Trichur, Kerala. And my grandfather suggested my father’s name highlighting his typewriting and shorthand skills.

And he instantly accepted the reference and took away my father immediately in his car.
My father joined him for Rs 18 a month salary. During his tenure with Dr Alagappa Chettiar’s
company, my father impres sed his boss with his self-interest and
learning attitude that the Chettiar asked the newspaper boy to charge the
company for The Hindu bought by my father.

Before doing that, he asked my fatherwhy he is buying the newspaper for himself. He got satisfied with imposing reply from my father. My father said information on trading and price trends apart from manufacturing techniques were regularly published in the newspaper.

After some time, my father desired to settle in Coimbatore than in Trichur. He loved this place for its
ideal business and climatic conditions. He had been frequenting the place often in the past from Trichur
for cotton and yarn trades.

He informed his employer about his wish,while the latter suggested my father stayed with the company for his character. However, my father replied that he is interested only in trading and would stay with the company operating from Coimbatore.

Until 1937, he was shunting between Trichur and our native; I was born in
Trichur in 1938. We moved to Coimbatore in 1938 and my father started cotton broking
business. He was a very big cotton broker and ALS was a renowned name in the business in those days.
Given speculative nature of the cotton trade at that time, he switched to
yarn trade
.
Between 1939 and 1959, he was doing the yarn business. He was associated with GD Birla Group during this period and was known for his integrity, trustworthiness, loyalty and hard work. One particular instance would exemplify these characters of my father.

Once, my father went to the Zenith office in Mumbai. An arm folded around his shoulder, as he was waiting at the executive chamber of GD Birla. When he looked back, he found a short figure asking whom he was waiting for. And he introduced himself only to find the man to be Birla himself.

When the marketing manager Suresh Dalal officially introduced him, Birla quipped, “I have not seen him but I have seen his work.”

But unethical trade practices in the textile market – he experienced it with his cousin itself – forced him
to think of quitting this business and was searching for an alternative.
 

That was when my father was offered Zenith brand pipes business. Thus the association with the Group continued and extended beyond textile business. He also had the good climate and support from noble friends as also the blessings of his spiritual guru Srilasri Gnananandagiri Swamigal of Tapovanam in Thirukkoilur.

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