Hitendra Chaturvedi on making money out of refurbished factory seconds

When Hitendra Chaturvedi founded Reverse Logistics Co. (RLC) in Delhi in October 2008, "No one had a clue about what my (his) work entailed". Some, in fact, dismissed his entrepreneurial plunge arguing that it's not a wise decision to do something so experimental leaving a lucrative position like heading Microsoft's OEM division in India. The perception of the venture being too risky or too experimental was not totally misplaced too. Chaturvedi is trying to make a business out of reverse logistics—a term which many are not familiar with. According to Chaturvedi, reverse logistics refers to a backward supply chain network where a product moves from the end-consumer-purchaser to the manufacturer for reuse, disposal or surplus sale. This increases the manufacturing company's overall efficiency by reducing the cost of storing such products and offers an eco-friendly way of disposing them. In India, the rate of return for slightly defective products is 4%, which makes this industry an estimated $15-16 billion (Rs 74,287 crore-79,226 crore) opportunity. The company soon found believers for his huge untapped market opportunity. Four years later, the company, which also runs an e-commerce site GreenDust.com, raised $40 million (Rs 171 crore) funding from Vertex Venture Holdings Ltd and existing investors Kleiner Perkins Caufield Byers (KPCB) and Sherpalo Ventures. Watch this exclusive video to learn more about Reverse Logistics' business model and its plans ahead.