From Rs 1,500 to ₹2,700 Crore: The Inspiring Story of MDH Masale

Picture an elderly man with a flowing white beard, wearing a red turban, smiling warmly from your spice packet. That face became synonymous with authentic Indian spices for decades. This is the story of Mahashay Dharampal Gulati—the man who transformed from a refugee with just Rs 1,500 in his pocket to building India's second-largest spice empire, MDH.

The Sialkot Beginning: Where It All Started (1919-1947)

Our story begins not in India, but in Sialkot, a bustling town in undivided India (now in Pakistan). On March 8, 1919, Mahashay Chunnilal Gulati set up the masala company in 1919 in Sialkot. The shop was called Mahashian Di Hatti, which translates to "the shop of a magnanimous man" in Punjabi, though it was popularly known as Deggi Mirch Wale.

Dharampal Gulati was born on 27 March 1923 in Sialkot, the son of Chunnilal Gulati. His childhood wasn't one of privilege or easy education. In 1933, at the age of 10, he dropped out of school and worked assorted jobs including carpentry, rice trading, and selling hardware, before joining in to help his father in his spice business.

But young Dharampal wasn't just a helper—he had ambition. Joining his father's spice shop in Sialkot, Gulati helped expand the store to Lahore, Shekhupura, Nankana Sahib, Lyallpur, and Multan in Punjab. The Gulati spice business was thriving, expanding across Punjab, building a reputation for quality spices.

Then came 1947.

Partition: Losing Everything (1947)

The partition of India and Pakistan changed everything. Communal riots erupted. The thriving business that the Gulatis had built over decades in Sialkot had to be abandoned overnight. The family became refugees, fleeing to India with whatever they could carry.

On 7 September 1947, after the Indo-Pak partition, Mahashay, along with his family, migrated from Pakistan to India and took shelter in a refugee camp in Amritsar. Everything they had worked for—their shops, their home, their established business—was left behind.

When Dharampal's father gave him money to start anew, the amount was heartbreakingly small. At the time, he only had Rs 1500 with him.

The Tonga Days: Rock Bottom to Rebuilding (1947-1948)

Later, Mahashay, along with his brother-in-law, came to Delhi in search of work. In Delhi, he initially used to live at his niece's house in Karol Bagh, which had no water supply, no electricity, and no toilet facilities.

With Rs 1,500 in hand, Dharampal made a decision. Out of that amount, he purchased a tonga for Rs 650 and drove it from New Delhi Railway Station to Qutab Road and Karol Bagh to Bara Hindu Rao at two Annas a passenger 'sawari' for a few days.

Imagine that—from being a successful spice merchant's son with shops across Punjab to driving a horse-drawn carriage through Delhi's streets, ferrying passengers for two Annas per ride. This profession didn't prove sufficient enough for his livelihood, and the people often insulted him.

But Dharampal Gulati wasn't the type to give up. He had spice trading in his blood, and he knew he could rebuild what his father had created.

The Wooden Shop: Rebirth of a Dream (1948-1959)

Dharampal sold his tonga and took a gamble. Thereafter he bought small wooden khokha (Shop/ Hatti) measuring 14ft. x 9 ft. at Ajmal Khan Road, Karol Bagh, New Delhi and started his family business of ground spices and again raised the banner of Mahashian Di Hatti (MDH) of Sialkot "DEGGI MIRCH WALE".

That tiny 14 feet by 9 feet wooden shop in Karol Bagh was where the MDH empire truly began. He wasn't just selling spices—he was rebuilding his father's legacy, one customer at a time.

Success came gradually. He advertised in the popular Hindi newspaper, Pratap, increasing the store's popularity. Word spread about the quality of his spices. After initial success, he rented another shop at Chandni Chowk in 1953.

But Dharampal had a bigger vision. He didn't want to just sell spices—he wanted to revolutionize how Indians bought and used them.

The Revolution: Ready-to-Use Ground Spices (1959)

In the 1950s, most Indian households would buy whole spices and grind them at home. It was labor-intensive, time-consuming, and inconsistent in quality. Dharampal saw an opportunity.

In 1958, he set up a small wooden pop-up store in the Karol Bagh region of New Delhi to restart his father's spice store. But more importantly, he bought land and set up a manufacturing facility in the Kirti Nagar area of New Delhi in 1959.

This was the game-changer. During this time, when most Indians would grind spices at home, he pioneered the concept of ready-to-use ground spices. No more spending hours grinding spices on heavy stone grinders. MDH offered pre-ground, hygienically packed spices ready to use.

The company was registered as MDH (an abbreviation of Mahashian Di Hatti) in 1965, officially marking the birth of the brand we know today.

Innovation: Roopak and Beyond

Dharampal's entrepreneurial spirit didn't stop there. In 1954, he founded 'Roopak Stores' in Karol Bagh, India's first modern spice store in Delhi at that time. Later, he handed over 'Roopak Stores' to his younger brother, Satpal Gulati.

This shows Dharampal's business acumen—he wasn't just building one business, he was creating multiple ventures, ensuring the family prospered while maintaining focus on MDH as the flagship brand.

The Iconic Face: Becoming the Brand

In an era when celebrity endorsements ruled advertising, Dharampal Gulati made a bold choice—he became the face of MDH himself. That image of the elderly man with the white beard, red turban, and warm smile became instantly recognizable across India.

The brand itself has been synonymous with Mahashayji whose presence in TV commercials sporting a flowing white moustache and wearing red turban became an iconic image on Indian television.

The jingle "Asli Masale Sach Sach, MDH MDH" became a household tune. Unlike other companies that rotated celebrities or hired actors, Mahashayji stayed as the constant face of MDH for decades, building unparalleled trust and recognition.

The Numbers: Building an Empire

The growth was phenomenal. He is credited with the growth of the company to having 18 manufacturing facilities and revenues of ₹10.95 billion (equivalent to ₹15 billion or US$170 million in 2023) in 2018.

More recent data shows even stronger growth. Annual revenue of MDH Spices is ₹2,700Cr as on Mar 31, 2024. MDH is the second largest leader in the Indian market with 12% market share, following S. Narendrakumar's Everest Spices.

To put this in perspective, MDH commands over 70% of the market in North India, making it the undisputed regional champion while holding significant national presence.

The company now offers over 62 products across four segments: Ground Spices, Blend Spices, Other Products (including saffron and religious goods), and Recipes. MDH produces over 60 spice products and exports to over 100 countries.

The Highest-Paid FMCG CEO

Here's where Dharampal Gulati's story becomes truly extraordinary. Even in his 90s, he remained actively involved in the business. Gulati became highest-paid FMCG (Fast Moving Consumer Goods) CEO in India in 2017.

According to a report published in The Economic Times, Mahashayji's salary of Rs 21 crore was higher than Adi Godrej and Vivek Gambhir of Godrej Consumer, Sanjiv Mehta of Hindustan Unilever, and ITC's YC Deveshwar.

Let that sink in—a 94-year-old man who dropped out of school in fifth grade, who once pulled a tonga through Delhi's streets, was earning more than the CEOs of Hindustan Unilever, ITC, and Godrej Consumer.

But here's the most remarkable part: "Nearly 90% of my salary goes to charity in my personal capacity," Mahashayji told The Economic Times.

The Philanthropist: Giving Back

Dharampal Gulati never forgot where he came from—a refugee camp, a niece's house with no electricity or water, the humiliation of driving a tonga. He decided to use his wealth to transform lives.

Gulati founded 20 schools for furthering primary and secondary education, including the MDH International School, Mahashay Chunnilal Saraswati Shishu Mandir, Mata Lilawati Kanya Vidyalaya and Mahashay Dharampal Vidya Mandir.

Healthcare was another priority. In 1984, he established Mata Chanan Devi hospital in Janakpuri, New Delhi, in memory of his mother, which has now grown into a 300-bed super-specialty hospital. The hospital provides free treatment to poor people, offering medical aid worth millions of rupees annually.

He set up a 200-bed hospital for the poor in New Delhi and a mobile hospital for slum dwellers. His charitable work was administered through the Mahashay Chunnilal Charitable Trust, named after his father.

Even during the COVID-19 pandemic, when he was 97 years old, he gave money to the Chief Minister's relief fund and donated 7,500 PPE kits to healthcare workers in the union territory of Delhi.

Recognition: The Padma Bhushan

Gulati was awarded with Padma Bhushan, India's third highest civilian honour, in 2019. The award recognized not just his business success but his pioneering role in transforming India's spice industry and his extensive philanthropic work.

Receiving India's third-highest civilian honor at age 96, after a lifetime of relentless work and giving, was a fitting recognition of an extraordinary journey.

The Final Chapter: December 3, 2020

Gulati died on 3 December 2020, at the Mata Chanan Devi Hospital in Delhi of cardiac arrest due to post COVID-19 complications. He had been admitted in the hospital in November.

He was 97 years old. Until the very end, he remained involved in the business, making daily rounds to factories, ensuring quality, and embodying the values that built MDH.

Subsequently, Dharampal's son, Rajeev Gulati, took over the company and became the face of the MDH brand, ensuring the legacy continues.

The Legacy: What MDH Teaches Us

Dharampal Gulati's story isn't just a business success story—it's a masterclass in resilience, innovation, and giving back.

From Refugee to Billionaire: He lost everything at 24 but refused to let circumstances define him. Instead of dwelling on what he lost, he focused on what he could build.

Innovation Over Tradition: When everyone was grinding spices at home, he pioneered ready-to-use ground spices. He didn't just follow the market—he created it.

Authenticity in Marketing: In an age of celebrity endorsements, he became the face of his brand. His genuine presence built trust that money couldn't buy.

Never Too Old to Work: At 94, he was India's highest-paid FMCG CEO, still making daily factory rounds. Age was just a number for Mahashayji.

Generosity Compounds: Donating 90% of his Rs 21 crore salary, building 20 schools, establishing hospitals—he understood that true wealth is measured in lives improved, not just money earned.

Family Business Done Right: MDH remained a family business but professionalized and scaled effectively, proving family enterprises can compete with multinationals.

MDH Today and Tomorrow

Today, MDH continues to thrive under Rajeev Gulati's leadership. The brand maintains its position as India's second-largest spice company with 12% national market share and dominant presence in North India.

The company is investing in expansion. Reports indicate plans to invest Rs 150 crore in a new facility in Ujjain, with Rs 2,000 crore expansion nationwide, signaling ambitious growth plans.

With changing consumer preferences toward organic products and international expansion opportunities, MDH is positioned to carry Mahashayji's legacy forward into new markets and product categories.

The Takeaway: Spice and Everything Nice

From a 10-year-old school dropout doing carpentry in Sialkot to a 97-year-old Padma Bhushan awardee running a ₹2,700 crore spice empire—Mahashay Dharampal Gulati's life reads like the perfect Bollywood script.

But it's real. Every obstacle he faced, every setback he overcame, every innovation he pioneered, and every rupee he donated to charity—it all actually happened.

The next time you open a packet of MDH masala and see that smiling face with the red turban, remember: you're looking at a man who rebuilt his life from Rs 1,500, revolutionized an entire industry, became India's highest-paid FMCG CEO in his 90s, gave away 90% of his salary, built 20 schools and multiple hospitals, and proved that with determination, innovation, and generosity, anything is possible.

That's not just a spice brand. That's the flavor of an incredible life lived to its fullest.

Asli Masale Sach Sach, MDH MDH.