In a candid conversation on The Thrive Talk Show, Anil Daryani, the founder of the Indian IT and electronics brand Artis, shared his entrepreneurial journey, detailing the turbulent shifts, policy challenges, and the continuous need for transformation that defined his company's path from a nascent manufacturer to a pan-India brand.
The Policy Shock that Forced a Pivot
Anil Daryani started his professional life after completing Mechanical Engineering from Bombay University and a Master of Science in Industrial and Systems Engineering in the US [02:09]. Returning to India in April 1990, he joined his brother to establish a manufacturing unit for black and white monitors and motherboards in Pune [02:47].
The initial momentum was shattered after 6-7 years. Daryani recounts the pivotal moment when the government, following the 1996 World Trade Organization (WTO) agreement, introduced 0% customs duty on imported finished IT products [03:15].
"It was cheaper to import rather than manufacture in India... If we had received the encouragement for manufacturing that the current government is giving now, we would perhaps be ahead of China today." [03:32]
This policy shift forced them to shut down their manufacturing facility, a process that took two years to manage and exit completely [03:06, 03:06]. This event was a major setback, which Daryani believes cost India 15-20 years in building a strong semiconductor and electronics manufacturing ecosystem [13:14].
Transformation: The Rise of Artis
The company pivoted from manufacturing to importing finished goods and decided to focus on building its own brand. They began their branding journey in 2002 [03:40].
Initially, they sold under their supplier’s brand. The brand Artis was adopted after a Taiwanese supplier of PC speakers decided to discontinue the popular line. Daryani's company registered the name in India [03:40].
Over the years, the brand portfolio became confusing with multiple names like Power Safe (for UPS), Pronet (for networking), and VIP (for cabinets) [03:42, 03:54]. In a key decision for brand clarity and investment focus, they merged all their product categories under the single brand: Artis, in 2012 [03:50].
Today, the business is segmented primarily into:
Distribution, Digital, and the Return to Manufacturing
From the outset, Daryani focused on building a strong distribution network across India, relying on exhibitions and magazine advertisements in the pre-digital era [39:35]. This network comprises distributors, resellers, and system integrators [37:42].
In the mid-2010s, recognizing the growth of e-commerce, the company launched its online division, starting with Amazon around 2013-2014 [44:33]. Today, e-commerce contributes 20% of their total business [45:09].
In a full-circle moment, Artis has started to re-embrace domestic production. Encouraged by the government’s push for manufacturing, they are currently performing the assembly of certain UPS models, spike suppressors, and speakers in a warehouse in Pune, with plans for backward integration to locally source more components [04:54].
The current biggest challenge, according to Daryani, is the slow process of government certifications like Gem Registration and BIS certification for new products, which he feels needs to be streamlined to support local manufacturing effectively [54:49, 55:15].
The Next Generation
Anil Daryani also highlighted the generational shift in entrepreneurship. His son, having also studied in the US, returned to India to start his own venture, Prana, which manufactures and sells air purifiers. Daryani supports his son’s independence, stating, "I don't interfere in his business... I am available if he needs help" [01:17:40]. This reflects a key learning: providing freedom and a conducive culture for the next generation of leadership is crucial for a company's future growth [01:17:26].
Learning from this podcast for business owners or entrepreneurs
The journey of Anil Daryani and Artis provides several critical lessons for those in business or looking to start a new venture:
Embrace Change Management and Flexibility: The most crucial element for survival is the ability to adapt. When a government policy (the 0% import duty) wiped out their initial manufacturing business, Daryani pivoted to importing and branding. As an entrepreneur, you must possess the risk-taking ability and be ready to transform quickly with your surroundings to survive long-term [29:39, 30:05].
Build Your Own Brand, Not Just a Business: Initially selling under supplier brands, the company made the strategic decision to invest in and register its own brand. Later, they corrected their mistake of having multiple brands by merging everything under the single, strong brand Artis [35:50]. This focus ensures clear market visibility and a better return on marketing investment [35:35].
The Power of Slow and Steady Growth (Old School Thought): Artis did not pursue external funding or hire expensive celebrities, unlike many competitors. Daryani advocates for the "old school of thought"—to expand your business only as much as your resources permit [01:13:17]. They prioritized being a profitable, self-funded business over becoming a loss-making giant, proving that sustainability is a viable path to success [01:13:10].
A "Blended" Marketing Approach is Necessary: While a strong pan-India distributor network was built through traditional means like exhibitions and magazine ads, the company successfully transitioned to the digital age by actively engaging with platforms like Amazon. Modern businesses must maintain a blend of both physical and digital marketing to achieve full market penetration [01:01:17, 44:17].
Lifelong Learning and Peer Mentorship are Essential: Despite decades of experience, Daryani actively engages in a peer-to-peer entrepreneur group (Ascend Foundation) [01:27:01]. Sharing challenges and hearing how others tackled similar problems is a form of continuous learning that keeps experienced business owners relevant and helps bridge the generational gap [01:27:23, 01:30:37].
Provide Next-Gen Leaders the Freedom to Fail: Daryani highlights the importance of giving young leaders—like his son with his startup, Prana—the freedom to operate and make mistakes [01:17:26]. An older generation must learn to step back and trust the speed and vision of the youth to ensure the company’s future growth [01:17:40, 01:17:19].
