06 May 2023 | B W BUSINESSWORLD | 51 prostitution, protection fees, extortion, etc. Lee Kuan Yew, faced with systemic corruption and related widespread crime in Singapore in the late 50s, fought it with a three-pronged strategy to create the Singapore we know of today. Firstly, he recognised that corruption is the fountainhead of crime, and to eliminate it he created a system which combined the principles of behavioural economics of diminishing marginal utility, and the Mexican standoff where everyone holds a gun at someone else, and no strategy exists for fraudulent collaboration without causing a chain reaction of sure death. Secondly, he structurally reduced the human temptation towards crime by tilting the risk reward spectrum towards the high risk-low reward end, and thus inflicting inordinately high costs through very tough laws and immaculate enforcement. And lastly, a speedy justice system was created to dispense justice in a court of law. Once it was recognised that the default norm is to assume human greed and its propensity to be corrupt – and its definitive relationship to crime – he displayed the political will to change the rules of the game itself. Similarly the Amercian mafia of 50s-80s do not exist today primarily due to the enactment of its very tough laws called RICO and CCE which effectively imposed very high economic costs on racketeers, including confiscation of all their allied businesses – including shell entities meant to keep assets of crime legitimately insulated – and allowed for long prison sentences without parole. The principle was the same – make the risk reward equation of crime unviable. Additionally surveillance, infiltration to gather evidence, witness protection programmes for approvers and passionate prosecutors like Rudy Giuliani helped stamp out the mafia. We are imminently capable of setting up a similar ecosystem to control crime – tough laws, fast track courts, and dedicated prosecutors with strong witness protection programmes. But do we have the political will to do it? Do we have our own Lee Kuan Yew or Blakey – Robert Kennedy combine? I suspect that is where the core problem lies. We must reflect on this as a nation which has, inter alia, legitimised opacity of political funding through electoral bonds to create the fountainhead of corruption in our polity. state itself is at stake. We have lived through this during the Naxalite movement in Bengal and the Khalistani movement in Punjab. Eradicating deep rooted crime could arguably fall in this category too, but only for a limited period. Sustainable crime eradication can only happen through a constitutionally approved process, and not by extra judicial killings, as criminal warlords would be replaced by trigger happy policemen once the discipline which restrains the uniformed services is shaken at the roots. Duterte faced this challenge in Philippines in his bid to eliminate drug cartels by shoot to kill operations. An Ecosystem to Control Crime Following the opium wars, Chinese people migrated to Singapore only to find large criminal organisations controlling society. The business of crime was similar to what we have here: Sustainable crime eradication can only happen through a constitutionally approved process, and not by extra judicial killings, as criminal warlords would be replaced by trigger happy policemen once the discipline which restrains the uniformed services is shaken at the roots The author is a Sloan Fellow of the London Business School, non executive director, and an advisor to chairmen of corporate boards Illustration by Dinesh S Banduni
MOST VALUABLE CEOs By Ashish Sinha BW Businessworld puts the spotlight on the executives and their companies that have thrived in a challenging economic environment by generating value for their shareholders and investors SHOWING STELLAR OVERVIEW 52 | B W BUSINESSWORLD | 06 May 2023
he past 36 months have been particularly demanding for everyone, including corporations. Nonetheless, amidst these challenging times, many accounts of success, growth and recovery have emerged. These businesses have stood out thanks to stable leadership, a sound strategy, sufficient financial resources and cost optimisation. This special issue on Most Valuable CEOs highlights a select few of these accomplishments. It is important to note that these are not rankings, but rather a compilation of success stories from companies and their leaders in various categories, filtered and selected by our knowledge partner TechSci Research. This exercise is also an extension of sorts of the previous two special issues, the BW 500 (issue dated February 11, 2023) and the Most Respected Companies (issue dated April 8, 2023) that we had brought out with the help of our knowledge partner TechSci Research. For all practical purposes, TechSci Research started out by analysing and short listing companies based on certain parameters and filters that were applied to bring out the list for BW500 and the MRC (please refer to the detailed research methodology). Categorisation of companies based on their total income/turnover helped us focus on some of the consistent performers across each of the categories. It must be made clear at the outset that the names profiled and presented in the following pages do not allude to any kind of ranking. Those who have been highlighted are merely an editorial selection out of the pool of companies shortlisted by TechSci Research. There are many more in each of the categories that we could not showcase due to space constraints. The timeframe for the analysis of company finances were chosen by our knowledge partner factoring in the financial years of 2018-19, 2019-20, 2020-21 and 2021-22. Steady leadership at the top for an uninterrupted period of at least three fiscal years was another filter applied because of which some names could not make the cut. While presenting the stories, we highlighted the performance in FY22 in order to give some context. At the time of filing this report most of the companies had not declared their fourth-quarter and full year results for 2022-23. That is the main reason cited by TechSci Research for not factoring in the numbers for FY23. Notable Performances Hindustan Unilever (HUL), ranked high in our MRC issue, has been a consistent performer in the period under considT Photograph by Peshkova 06 May 2023 | B W BUSINESSWORLD | 53
54 | B W BUSINESSWORLD | 06 May 2023 he team at TechSci Research started the exercise of analysing the financial data of companies a month ago for the annual special issue of Most Valuable CEOs. The research team collected the raw data to start with. We collated this, taking the BSE 500 companies as the foundation, which as always gave us the base and the representative range of listed companies. From these, we profiled the Most Valuable CEOs and assessed them on a package of parameters. First, though, we applied a set of filters to generate a list of companies whose performances could be calibrated. The filters were companies whose CEOs had at least a three-year tenure, it a trading history of at least 700 days in the last three years, and where revenues have been greater than Rs 250 crore for the 2021-2022 fiscal. The exercise for putting together the Most Valuable CEOs list got underway with total income for financial years 2018-2019, 2019-2020, 2020- 2021 and 2021-2022 available with our database of companies. T come from operations) was considered as revenue for the purpose of this categorisation in ranking CEOs. We have only included companies for which data on total income was available for the last four years. The ranking of the companies is based on the average growth rate of last four years and average market capitalisation for the financial year 2022. We have not included companies whose average growth rate was coming out to be negative. As a result, more than 150 companies with positive growth rate as well as with high income and market capitalisation were shortlisted. After getting the exhaustive list, we further came up with the list of all the companies’ CEOs, or MDs in case there was no CEO, who are working continuously in their respective companies for the last three years. The average growth rate was given a 75 per cent weightage while 25 per cent weightage was collectively given to other parameters. We then once again reviewed the CEO name, role and ensured eligibility. — Team TechSci Research HOW WE DID IT? MOST VALUABLE CEOs eration. Despite an overall slowdown, this FMCG giant has been marching ahead posting high growth numbers while discharging its social commitments. For the fiscal year 2021- 22, HUL generated Rs 11,684 crore in cash from operations. On a standalone basis, it generated revenues of Rs 50,336 crore clocking a 11 per cent growth. HUL’s profit after tax stood at Rs 8,818 crore. Its three divisions—home care, beauty & personal care, foods & refreshment -- generated Rs 16,578 crore, Rs 19,460 crore and Rs 14,105 crore, respectively. For all companies including HUL, 2021-22 was a challenging year. HUL crossed the Rs 50,000 crore turnover mark in FY22. Tata Consultancy Services (TCS) gave another standout performance in the period under consideration including FY22 thanks to a trustworthy leadership and wholesome work culture. The company generated consolidated revenues of $25.7 billion in the fiscal year ended March 31, 2022. In rupee terms, TCS posted a net revenue Rs 1,91,754 crore, which translated into 16.8 per cent growth. “Our profitability continued to be industry-leading, with the operating margin at 25.3 per cent, and net margin at 20 per cent. Our earnings per share was at Rs 103.62, growing 16.1 per cent over the prior year. Our cash conversion continued to be very strong, with a cash conversion ratio of 104.2 per cent and free cash flow of Rs 36,985 crore,” said Rajesh Gopinathan, CEO & MD. Gopinathan is now moving on from TCS. Another company from the Tata family, Tata Power was able to deliver a strong financial performance in this period, especially during FY22. While revenues stood at Rs 42,576 crore, up 28 per cent over the previous fiscal, EBITDA grew at 3 per cent to Rs 8,191 crore and PAT was at Rs 2,156 crore (up 50 per cent y-o-y). “We also made solid progress on some of our key issues and continued to strengthen our balance sheet. Leveraging our robust operating cash flows, we brought down our net debt to underlying EBITDA to 3.92,” said Praveer Sinha, CEO & MD of Tata Power Company. “Our domestic as well as international credit ratings received an upgrade in FY22, with our average borrowing cost narrowing 36 bps y-o-y to 6.82 per cent,” the CEO added. We began with a universe of 500 listed companies, keeping banks and financial companies as well as trading companies. We arranged the filtered database into four categories: Super Heavyweight (revenue more than Rs 20,000 crore), Heavyweight (revenue between Rs 7,500 crore and Rs 19,999 crore), Middleweight (revenue between Rs 2,500 and Rs 7,499 crore) and Lightweight (Rs 250 crore to Rs 2,499 crore). For banks, interest earned (and for other companies, inOVERVIEW RESEARCH METHODOLOGY
06 May 2023 | B W BUSINESSWORLD | 55 Company Average (%) Avg. Mcap (Rs crore) Key Person (In alphabetical order) Company Average (%) Avg. Mcap (Rs crore) Key Person (In alphabetical order) SUPER HEAVYWEIGHT: Total Income — Rs 20,000 crore & above NMDC 31.3 31,474 Amitava Mukherjee Indus Towers 67.8 39,992 Bimal Dayal Titan Company 14.1 222,372 C. K. Venkataraman State Bank of India 8.6 454,396 Dinesh Kumar Khara Tata Power Company 14.4 59,033 Praveer Sinha Tata Consultancy Services 9.2 1,146,014 Rajesh Gopinathan ITC 9.1 472,451 Sanjiv Puri Hindalco Industries 16.2 89,011 Satish Pai Indian Oil Corporation 8.4 107,815 Shrikant M Vaidya Life Insurance Corporation of India 8.8 340,126 Siddhartha Mohanty Vedanta 14.6 100,754 Sunil Duggal Wipro 10.3 197,455 Thierry Delaporte HDFC Life Insurance 36.7 106,448 Vibha Padalkar HEAVYWEIGHT: Total Income — Rs 7,500 crore to Rs 20,000 crore Berger Paints India 15.28 56,027 Abhijit Roy Bharat Electronics 8.31 67,067 Anandi Ramalingam JK Cement 15.15 21,938 Dr. Raghavpat Singhania Divi's Laboratories 21.47 75,106 Kiran S. Divi Dabur India 8.63 95,932 Mohit Malhotra Bombay Burmah Trading Corporation 8.62 5,654 Ness Wadia Zydus Lifesciences 5.06 48,778 Pankaj Patel Gujarat State Petronet 26.56 15,140 Sanjeev Kumar Biocon 14.06 24,810 Siddharth Mittal Tata Consumer Products 19.67 64,970 Sunil A. D’Souza Siemens 8.72 117,154 Sunil Mathur Nestle India 5.62 182,138 Suresh Narayanan MIDDLEWEIGHT: Total Income — Rs 2,500 crore to Rs 7,500 crore Tata Metaliks 10.76 2,323 Alok Krishna Sharda Cropchem 22.84 4,102 Ashish Bubna TeamLease Services 17.15 3,785 Ashok Reddy Blue Dart Express 12.73 14,255 Balfour Manuel V-Guard Industries 11.07 10,586 Mithun Chittilappilly Sheela Foam 12.47 9,750 Rahul Gautam Gujarat Alkalies & Chemicals 9.49 4,190 Raj Kumar Orient Electric 14.36 5,592 Rakesh Khanna 3M India 4.76 25,559 Ramesh Ramadurai Rallis India 9.35 3,728 Sanjiv Lal Escorts Kubota 6.11 24,306 Shenu Agarwal Tata Steel Long Products 106.38 2,810 T.V. Narendran LIGHTWEIGHT: Total Income — Rs 250 crore to Rs 2,500 crore Sharda Motor Industries 34.85 1,650 Aashim Relan Hindustan Copper 18.56 9,283 Arun Kumar Shukla Gokul Refoils and Solvent 12.08 264 Balvantsinh C Rajput Tata Coffee 10.00 3,781 Chacko Purackal Thomas Johnson Controls - Hitachi Air Conditioning India 1.24 2,871 Gurmeet Singh Info Edge India 20.16 46,431 Hitesh Oberoi Jyothy Labs 6.77 6,686 M. R. Jyothy Lux Industries 26.53 3,440 Pradip Kumar Todi Hindware Home Innovation 12.18 2,510 Rakesh Kaul Gulf Oil Lubricants India 9.82 1,979 Ravi Chawla Asahi India Glass 4.30 10,480 Sanjay Labroo CreditAccess Grameen 29.67 14,029 Udaya Kumar Hebbar Data Analysis: TechSci Reseach THE HIGH PERFORMERS
56 | B W BUSINESSWORLD | 06 May 2023 S tate Bank of Ind ia (SBI), India’s leading public sector banking and financial services company with a rich legacy of over 200 years, has been making a headway under the leadership of its chairman Dinesh Kumar Khara since late 2020. Before to his appointment to the top post at SBI, Khara was one of the managing directors of the bank. He joined SBI in 1984 as a probationary officer. second-largest credit card issuer in India. “With the gradual improvement in economic activity, the business of State Bank of India continued to show double-digit growth in FY2022,” said Khara. Deposits Growth SBI has been a consistent performer as reflected in its robust balance sheet. During FY22, SBI’s total deposits grew 10 per cent to surpass the Rs 40 lakh crore mark, of which domestic deposits grew 9.80 per cent to Rs 39.20 lakh crore. The CASA deposits grew 7.78 per cent to Rs 17.75 lakh crore contributed mainly by a sustained growth of 10.45 per cent in saving bank deposits. Amidst the low interest rate environment, the CASA ratio of SBI stood at 45.28 per cent as of March FY2022. “During the year, SBI opened 98.75 lakh new savings bank accounts, of which 63 per cent were opened through the YONO portal/app,” said Khara. During the fiscal under review, the advances for SBI also grew 11 per cent to Rs 28.18 lakh crore, compared to growth of 4.8 per cent in FY2021. While domestic advances grew 10.27 per cent, foreign offices advances grew 15.42 per cent. The domestic loan growth was led by robust growth of 15.11 per cent in retail personal loans, which now account for 41.6 per cent of domestic advances. SBI provides a wide range of products and services through its various branches and outlets. SBI has nearly 46.77 crore customers, 22,266 branches and 27.58 per cent market share in debit card spends. It is also a market leader in government business with a total turnover of Rs 55.18 lakh crore in FY22. The bank also emerged as the market leader in SME financing clocking Rs 3.06 lakh crore in total SME advances during FY22. The company is the MOST VALUABLE CEOs SUPER HEAVYWEIGHT A carrier banker, Dinesh Kumar Khara is driving SBI’s success across key parameters including expanding its social commitments through robust CSR activities LEADING FROM THE FRONT D. K. KHARA, Chairman, State Bank of India
06 May 2023 | B W BUSINESSWORLD | 57 Customer Focus SBI’s performance in FY22 reflects its continued commitment to providing innovative products and services to meet the needs of its customers while maintaining its position as a market leader. Under Khara’s leadership, SBI has been focused on expanding its customer base, growing deposits, and advancing loans. This has helped to under consideration, especially during FY22. During FY22, the total CSR spend by the bank stood at Rs 204.10 crore (1 per cent of the net profit of Rs 20,410 crore for FY2021), with Rs 102.56 crore allocated to SBI Foundation. The bank’s CSR activities for FY22 were focused on rural and slum area development, healthcare and sanitation, education, environment sustainability, tribal welfare, empowerment of women and senior citizens and supporting sports and athletes. In early FY22, SBI spent a total of Rs 71 crore, or 35 per cent of the total CSR spend towards the fight against Covid-19. It distributed food and ration kits, healthcare equipment like PPEs, masks, and oximeters. It also created maintain its position among India’s most respected and top-performing financial companies. Apart from growth and adoption and integration of latest technologies under Khara, SBI has maintained strong focus on its social commitments. The bank’s spending on corporate social responsibility (CSR) initiatives has remained robust during the period “SBI’s spending on corporate social responsibility initiatives has remained robust during the period under consideration” Covid-care centres. SBI is also supporting women empowerment activities by setting up the Bharosa Centre at Karimnagar, Telangana, which provides integrated support and assistance to women and children affected by violence, both in private and public spaces, under one roof. TEAM BW
58 | B W BUSINESSWORLD | 06 May 2023 T itan has come a long way since 1984 when it started with one product category. Today, with more than 7,000 employees, 16 brands and over 2,000 retail stores, Titan is committed as ever to delivering profitable and responsible growth for all its stakeholders. Under C.K. Venkataraman, aka CKV, Titan Company has been growing from strength to strength giving its shareholders healthy returns. For the period under consideration for this special issue, Titan has shown healthy growth in its average revenue and average market capitalisation. While FY19-FY22 was an extraordinary period for everybody due to the pandemic and its adverse impact across sectors, Titan, like many in this list of Most Valuable CEOs, continued ellery Division grew 35 per cent touching Rs 23,268 crore (excluding sale of bullion worth Rs 1,045 crore). The EyeCare Division grew 38 per cent to post revenues of Rs 517 crore. New businesses, which includes Indian dress wear aw well as fragrances & fashion accessories division, posted a revenue of Rs 154 crore, translating into a 57 per cent growth over the previous year. While the Indian dress wear division grew 43 per cent, the fragrances & fashion accessories division clocked 65 per cent growth, Titan said. “All the divisions have done very well during the year amidst various challenges,” said CKV in his address to the shareholders. That is why the board of Titan recommended payment of dividend at the rate of 750 per cent or Rs 7.50 per equity share of Rs 1 each) representing a dividend pay-out ratio of 30.8 per cent. Sustainable Ethos Titan has been taking several steps to embed sustainability in its operations, to remain a consistent performer negotiating the challenges. Notable Numbers FY22 was no different for Titan. In consolidated terms, Titan clocked a revenue of Rs 28,799 crore as against Rs 21,644 crore in the previous year. On a standalone basis, the company’s total revenue grew 32 per cent to Rs 27,210 crore compared to Rs 20,602 crore the previous year. Profit before tax and exceptional items grew 118 per cent to Rs 2,983 crore and the net profit grew 149 per cent to Rs 2,180 crore thereby further consolidating the stature and financial performance of Titan under CKV. The Watches & Wearables division of Titan recorded a revenue of Rs 2,309 crore, growing 46 per cent despite the challenges. The revenue from the JewMOST VALUABLE CEOs SUPER HEAVYWEIGHT An IIM Ahmedabad alumni, C.K. Venkataraman (CKV), the current Managing Director, is a Titan Company veteran of more than three decades who was CEO of the Jewellery Division prior to being made MD GROWTH WITH RESPONSIBILITY C.K. VENKATARAMAN, Managing Director, Titan Company
06 May 2023 | B W BUSINESSWORLD | 59 with specific focus on energy and water to positively impact environment and the community. For example, renewables constitute 62 per cent of the total energy consumed at its manufacturing plants. The company has been piloting CNG in retail while expanding roof-top solar application in its EyeCare plant. The company says that 88 per cent of the water used in its manufacturing facilities is recycled. Over a period of time the company has taken up many lakes and water bodies in the vicinity of its manufacturing locations at Hosur/ Pantnagar and rejuvenated them ensuring that water bodies such as ponds are restored to enable water conservation. The biggest initiative has been rainwater harvesting across all plant locations, it says. Titan has also sought to “Titan has been taking several steps to embed sustainability in its operations, with specific focus on energy and water” offset carbon footprint by taking up large-scale tree plantation through creation of Miyawaki forests in Hosur and also plantation of trees in public areas in Pantnagar. On the CSR front, the Titan Kanya girl child education has touched over 16,600 children across Tamil Nadu, Uttarakhand and West Bengal. This has been initiated at Tiruvannamalai in Tamil Nadu after completing one full stint at Krishnagiri of over 7 years. Titan has also completed a teacher training programme and certified 1,108 teachers during FY22. TEAM BW
60 | B W BUSINESSWORLD | 06 May 2023 S unil D’Souza i s c r e d i t e d with putting Tata Consumer P r o duc t s (TCPL) on a fast growth trajectory. And he seems to be just the right person with the right credentials for the job. His expertise in understanding and delighting the customers comes from vast experience gained not just in India but abroad. Prior t o joi n i ng W h i rlpool — his last assignment — D’Souza spent around 15 years at PepsiCo, where he held several leadership roles handling commercial aspects of the company’s foods and beverages portfolio and successfully leading the business in multiple waves across other international markets where we do business, and a multitude of other factors. “Global supply chain stress and higher energy prices led to widespread inflation, and geopolitical strains further exacerbated the situation. Mitigating the impact required strategic focus, agility and efficient execution,” he said. H o w e v e r , d u r i n g FY22, TCPL achieved significant milestones in its transformation journey. “We expanded our reach, recorded market share gains in our core businesses while accelerating growth businesses, continued the innovation momentum, and expanded into new categories. Our digital transformation and supply chain optimisation plans were also on track,” D’Souza said. Changes Within He pointed to another perspective through which one needed look at the company’s performance during the past year. And that was internal transformation. “We strengthened our capabilities and our team at all levels, and the organisation is brimming with energy and ideas. Our sustainability agenda is more crystallised as we set out to achieve our ambition of being a leading FMCG player,” he said. During the financial y e a r, t h e c o m p a n y invested in technology and digitalisation. And the results were for everyone to see. There is sharper, datadriven decision-making. a large cluster of Asian countries. He began his career at Hindustan Unilever in 1993. With three decades of rich experience, he has strong domain knowledge of the consumer products business with distinct focus on strategy, growth and execution. D’Souza is an engineering graduate from University of Madras and an alumnus of Indian Institute of Management Calcutta (IIMC). Success Amid Stress C o m m e n t i n g o n t h e transformational journey of Tata Consumer Products during FY21 and later FY22, D’Souza said the year was challenging given the two waves of Covid-19 in India, MOST VALUABLE CEOs HEAVYWEIGHT Sunil D’Souza’s success in putting TCPL in a higher growth orbit derives from an extensive experience in the consumer goods industry in India and abroad DELIGHTING CUSTOMERS ALWAYS SUNIL D’SOUZA, CEO & MD, Tata Consumer Products
06 May 2023 | B W BUSINESSWORLD | 61 “There has been continued progress on premiumisation, health and wellness platform, strengthening branded coffee portfolio” portfolio,” said D’Souza. Focus on premium D’Souza says for the tea category, TCPL has stepped up its focus on premiumisation. “Our premium brands have been growing faster than the rest of our portfolio. We have strengthened our health and wellness portfolio through innovative products,” D’Souza said. TEAM BW “We also announced a global simplification plan that will reduce the number of legal entities, and drive significant efficiencies, synergies and value. All this is meant to create tangible and sustainable value for our stakeholders,” he said. T C P L m a n a g e d t o perform well in the last few years largely due to the growth of Tata Tea and Tata Salt brands, among others. While tea as a category grew in high single digit in the past three fiscal years, the salt business turned in a 19 per cent three-year compound annual growth rate (CAGR), according to D’Souza. “ We h a v e m a r k e t leadership and launched several category-first innovations. The threeyear CAGR for packaged beverages has been 9 per cent since the formation of TCPL. There has been continued progress on premiumisation, health and wellness platform, strengthening branded coffee
62 | B W BUSINESSWORLD | 06 May 2023 Divi’s Laboratories has g r o w n t o b e a m o n g the top generic drug makers in the country focused on active pharmaceutical ingredients (API) and intermediates. The company not only commands 60-85 per cent of the global market share in generic naproxen, dextromethorphan and gabapentin APIs today, it also produces nutraceuticals as well as undertakes custom manufacturing for Big Pharma. And all this has been achieved over the last three decades when UStrained scientist Murali Divi founded Divi’s Laboratories in the 1990s. In its “The year had been challenging with several headwinds and against this backdrop, our results for the year demonstrate our execution prowess, agility, strategic clarity and the strength of supply chain. Our core investment for the past two years on debottlenecking, capacity expansion and backward integration s trength helped us achieve scale and de-risk external starting material dependence,” Divi said in his address to the shareholders. Billion-dollar Firm “During the year, revenue of Divi’s surpassed the billion-dollar mark, making us one of the few companies reaching this milestone in the small molecule API segment. This is amidst the volatility and uncertainty in raw materials, challenges in logistics, energy crisis and geopolitical tensions,” he added. Over the past decade, Divi has focused on several corporate social responsibility programmes and impacted the lives of lakhs of people in Andhra Pradesh and Telangana. With a commitment to make meaningful change a reality, Divi’s continues to undertake varied initiatives aimed at improving lives. Divi’s has supported hundreds of government schools in Telangana and Andhra Pradesh to improve their infrastructure and provide a conducive environment for learning and social development early days, it was known as Divi’s Research Centre. After 1994, it was renamed Divi’s Laboratories signalling his intent to enter the API and intermediates manufacturing market. Sound Financials The company’s success is also reflected in its sound financials. In FY22, total income stood at Rs 8,991.08 crore, while consolidated total revenue was Rs 9,074 crore, as against Rs 7,032 crore during the previous year, reflecting a growth of 29 per cent. Profit after tax (PAT) for the year amounted to Rs 2,960 crore compared to Rs 1,984 crore recorded in FY21, reflecting a growth of 49 per cent. MOST VALUABLE CEOs HEAVYWEIGHT Murali K. Divi has over the past three decades nurtured Divi’s Laboratories to make it the API and intermediates powerhouse that it is today PUSHING FOR HOLISTIC GROWTH MURALI K. DIVI, MD & CEO, Divi’s Laboratories
06 May 2023 | B W BUSINESSWORLD | 63 “At Divi’s, we adapted and calibrated ourselves to emerge stronger from the adversity and sustain our market leadership in the API business segment” tinued global challenges due to pandemic and geopolitical developments in FY21 and FY22, Divi said: “The uncertain market conditions, induced by the pandemic and geopolitical disorder, has resulted in business transformation for one and all. At Divi’s, we adapted and calibrated ourselves to emerge stronger from the adversity and sustain our market leadership in the API business segment.” TEAM BW of children. Since 2014, Divi’s has installed adequate safe water stations in Telangana and Andhra Pradesh, providing safe drinking water to lakhs of people. Green Commitment During FY22, apart from creating additional capacities for its pipeline of products and new capacities for emerging custom synthesis projects, the company also upgraded its utility infrastructure which also included environment management. “We strive to create brand value by adopting sustainable practices and implementing green chemistry principles,”Divi adds. As an industry leader and a responsible enterprise, Divi’s Labs served the communities around its manufacturing facilities in several ways by enhancing the village infrastructure, providing safe drinking water, empowering women and improving public healthcare. Responding to the con-
64 | B W BUSINESSWORLD | 06 May 2023 Reputed as a sharp business strategist with a h a n d s - o n approach and an eye for detail, Rakesh Khanna has been instrumental in the growth of Orient Electric since joining as its CEO in 2015. A versatile professional with strong financial acumen and deep insight of the Indian and UAE markets, Khanna has managed brand leaders like Sony, Jumbo, Hitachi, Wipro and Eureka Forbes in his earlier stints. A mechanical engineering graduate of the Thapar Institute and a postgraduate in management studies from diversified C.K. Birla Group, has earned the trust of millions of cust o m e r s b y p r o v i d i n g cutting-edge lifestyle electrical products. The company has fully integrated manufacturing facilities in Kolkata, Faridabad and Noida. In the domestic market, it has a well-organised distribution network made up of 1,25,000 retail outlets as well as a strong service network covering more than 450 cities. K h a n n a d e s c r i b e d FY22 as a year that was marked by uncertainty and wavering toplines. “I am delighted to report that Orient Electric grew its revenue by 20.5 per cent, operational EBITDA by 5.4 per cent, and profit after tax (PAT) by 6.2 per cent in FY22. Almost all our business segments saw healthy traction resuming, leading up to a point where FY23 began to look quite encouraging,” Khanna said in his address to the shareholders. Durables Dominate Orient Electronics operates in consumer durables, lighting and switchgear products. In 2021-22, its revenue from operations was Rs 2,448 crore. It has two segments, Electrical Consumer Durables (ECD), which contributed 73 per cent of its revenue in FY22, while the rest 27 per cent came from the Lighting and Switchgear (L&S) segment. University of Mumbai, Khanna has a consistent track record of achieving business turnaround and building sustainable high profitability business models. Business Growth Orient Electric is the largest manufacturer and exporter of fans in India with presence in over 40 international markets. It is also the second largest manufacturer of LED bulbs in India and the first Indian lighting brand to have been awarded BEE star rating for LED bulbs, the company claims. With operations spread across more than 35 countries, Orient Electric, a part of the $2.4-billion MOST VALUABLE CEOs MIDDLEWEIGHT Rakesh Khanna’s knack for turning businesses around and building sustainable and high profitability business models has worked wonders for Orient Electric DIGITALLY EMPOWERED RAKESH KHANNA, CEO & MD, ORIENT ELECTRIC
06 May 2023 | B W BUSINESSWORLD | 65 “We believe that, for now, the worst is past behind us, and the future looks more optimistic for Orient Electric” FY22. “As lockdowns receded and vaccinations permuted, people’s lives started to return to normal gradually. As a result, customer sentiments improved and we experienced encouraging revival for the demand for electrical durables,” he said. “We believe that, for now, the worst is past behind us, and the future looks more optimistic for Orient Electric,” he added. TEAM BW In FY22, the ECD segment performed commendably despite facing many headwinds, including raw material inflationary pressures, muted demand and consumption slowdowns caused by Covid. For the year ended 31st March 2022, the ECD segment posted revenues of Rs 1,799 crore, up 18.9 per cent YoY, and an EBIT of Rs 201 crore. Under Khanna’s leadership and in line with Orient Electric’s long-term goals, the company persisted to expand its geographical reach by further widening and fortifying its distribution network, especially in southern India. The company also integrated its various digital initiatives into its overall distribution framework, which further raised its efficiency in inventory management, logistics and service levels. In an investor call, Khanna described the revival in demand in
66 | B W BUSINESSWORLD | 06 May 2023 T ata Steel Long P r o d u c t s (TSLP) is one of India’s largest specialty steel producers in Special Bar Quality (SBQ) segment and merchant DRI producers with strong presence in the wire rod market. As its chairman, T.V. Narendran termed FY22 as the “best-ever performance” by TSLP despite challenges. “TSLP grew its top-line by 43 per cent (Y-O-Y) to Rs 6,802 crore. Focus on operational and cost efficiencies led to TSLP reporting its highest ever EBITDA of Rs 1,289 crore pany in acquiring the Steel Business of Usha Martin during 2019 and has recently overseen the acquisition of Neelachal Ispat Nigam. He is a member of the Executive Committee and the Board of the World Steel Association and President of the Indian Institute of Metals. He served as the President, CII from 2021 to 2022. On Growth Path Tata Steel Long Products is well-poised to capitalise on the opportunities in the long products industry. Over the past few years, it has been steadfastly integrating and stabilising the acquired facilities of Usha Martin. The improvement and de-bottlenecking journey continues for existing facilities. The company is also set to grow as per its defined strategic roadmap to secure a leadership position in the chosen segments of Automotive and Construction. In FY22 the company further strengthened its growth potential with the acquisition of Neelachal Ispat Nigam (NINL) which was completed in July 2022, for a total consideration of Rs 12,100 crore. This acquisition, will add 1 MnTPA to the company’s steelmaking capacity, together with iron ore reserves of around 100 MnT, said Narendran. In fact, in early July of 2022, Tata Steel said it had completed the acquisition of 93.71 per during the year compared to Rs 1,154 crore in FY 2020-21. Strong capital management and deleveraging of the balance sheet also grew the bottom line (profit before tax) to Rs 858 crore from Rs 615 crore in FY21 (40 per cent increase on Y-OY basis),” said Narendran. TSLP is a subsidiary of Tata Steel where Narendran is the CEO & Managing Director. He has over 35 years of experience in the metals and mining industry and has been a thought leader on complex, strategic and operational matters relating to steel industry. He spearheaded the comMOST VALUABLE CEOs MIDDLEWEIGHT T.V. Narendran’s huge experience in the metals and mining industry as well his thought leadership on complex matters relating to the steel industry has helped place TSLP firmly on the growth path EXPANDING HORIZONS T.V. NARENDRAN, CHAIRMAN, Tata Steel Long Products (TSLP)
06 May 2023 | B W BUSINESSWORLD | 67 cent in Neelachal Ispat Nigam (NINL) through its listed step-down subsidiary, TSLP. On January 31, 2022, TSLP was declared the winning bidder for the one million tonne (mt) NINL, an asset owned by central and state public sector undertakings, in a process run by the Department of Disinvestment & Public Asset Management (DIPAM), for a consideration of Rs 12,100 crore. The transaction was completed in July through a purchase of equity shares and nonconvertible redeemable preference shares, the company had said. Readying for Future During coming financial years, TSLP will be looking at strengthening systems and processes —striving for business excellence through the implementation of better safety practices and capability building. The community remains at the heart of our operations. “In keeping with the Tata ethos, we will be prioritising the promotion of inclusive social development through our CSR initiatives in health, education, sanitation and livelihood enhancement,” Narendran told shareholders. TEAM BW “Focus on operational and cost efficiencies led to TSLP reporting its highest ever EBITDA of Rs 1,289 crore during the year...”
68 | B W BUSINESSWORLD | 06 May 2023 Pradip Kumar Todi has rich t e c h n i c a l knowhow of the hosier y sector and his expertise is in developing new patterns, yarn combinations and knitting technologies, areas that have helped the company to introduce new and innovative products. His efforts at decreasing production costs and introduction of new products have helped Lux to enhance its profit margins. In business for over five decades, Lux today is an Indian company with a multi-continental presence. As of FY22, it was present across 47 countries. It reported revenues of Rs 2,312.92 crore in FY22 along with EBITDA of Rs 490.27 crore. It clocked a 25 per cent jump in its net profit in FY22 at Rs 338 But the period was full of challenges from all fronts, he added. Todi said FY22 proved to be a roller coaster year, marked by sharp movements in resource costs. “A significant increase in raw material costs could not be easily or immediately passed on to consumers. This increase in raw material costs stretched our working capital management. The slowdown in winter wear offtake added to our inventory and carrying costs,” he said. Inventory accounted for 73 per cent of the working capital of Lux in FY21 and in FY22 the company could not make any substantial improvement in this regard for the reasons indicated. Todi said the company was pleasantly surprised when most of its customers upgraded their purchases, moving higher in the crore. Since FY18, Lux has been on a growth spree. For example, in FY18 Lux reported revenues of Rs 1,079.36 crore which more than doubled in FY22 to Rs Rs 2,312.92 crore. Again, in FY18, Lux reported EBITDA of Rs 156.07 crore which jumped nearly four times at the end of FY22 to Rs 490 crore. Swift Growth “During FY 2019-20, Lux Industries reported revenues of Rs 1,674.18 crore and in FY22, it reported revenues of Rs 2,312.92 crore. The 38 per cent growth in revenues over two years, during one of the most challenging socio-economic phases in the country’s existence, underlines our commitment to valuecreation, governance and sustainability,” said Todi in his shareholder’s address. MOST VALUABLE CEOs LIGHTWEIGHT Pradip Kumar Todi’s deep knowledge of the hosiery sector and his efforts at expanding presence and profitability has put Lux Industries in a sweet spot DRIVING GROWTH CONSISTENTLY PRADIP KUMAR TODI, MD, Lux Industries
06 May 2023 | B W BUSINESSWORLD | 69 value chain, seeking better products and willing to pay more for them. The result, he added, resulted in the proportion of value-added products (innerwear) increase from 11.74 per cent in FY21 to 13.56 per cent in FY22. “ T here has been a significant increase in the contribution of outerwear to our overall revenue across the last two years,” said Todi. The premium segment revenues within the company grew 36 per cent while the economy segment grew 19 per cent, validating the company’s decision to invest in the former, he added. The Outlook Todi said in FY23 Lux will complete a Rs 110-crore capital expansion that would comprise a stateof-art manufacturing facility in West Bengal. The increased proportion of revenues from premium products, he added, was expected to enhance margins, while the stable outsourcing ecosystem will be scaled to respond to the growing appetite of the retail marketplace. “Growing exports will address a widening China+1 opportunity, enhancing the company’s global footprint. At Lux, we are optimistic t h a t t h e c o m p a n y ’s take-off based on these initiatives shall translate into enhanced value for those associated with our company,” Todi said. TEAM BW “Growing exports will address a widening China+1 opportunity, enhancing the company’s global footprint”
70 | B W BUSINESSWORLD | 06 May 2023 C hacko Puracka l T h o m a s possesses an i m p r e s s i v e resume that mirrors his current work. A veteran in business strategy, sales, marketing, and plantation management, Thomas holds a bachelor’s degree in computer science from University of Jodhpur and has also completed an advanced management programme at INSEAD Fontainebleau. Prior to joining Tata Coffee as MD and CEO in August 2015, he served as the MD of Kannan Devan Hills Plantations Company in Munnar. According to his online profile, Thomas has a noteworthy record in business transformation, delivering sustainable results, and leading highperforming teams in India and Vietnam. He has extensive experience in general management, establishing distribution of its customers, brands, private labels, distributors, and large global roasters. T h e c o m p a n y ’ s plants, located in Theni (Tamil Nadu), Toopran (Telangana), and Vietnam, are powered by renewable energy sources, reflecting the company’s commitment to sustainability. Tata Coffee’s unique instant coffee variants are packaged in a fully automated unit and delivered worldwide, including Russia, Africa, Europe, Southeast Asia and the Middle East. Business growth O n a y e a r l y b a s i s , consolidated net profit of Tata Coffee surged 10.32 per cent to Rs 233.40 crore even as there was a 4.81 per cent rise in revenue from operations to Rs 2,363.50 crore over FY21. Tata Coffee’s revenues from the instant coffee business in India and Vietnam grew nearly 9 per cent during the fourth channels, and operating his businesses. Additionally, he has held board positions in companies located in the US, Sri Lanka and India. Under his leadership, Tata Coffee has grown into one of the largest integrated coffee companies that serves more than 40 countries. Robust Products Ta t a C o ff e e’s m a j o r products including green bean, instant coffee, tea, and pepper are designed to provide consumers with a taste of the company’s excellence. The company has an annual capacity of approximately 8,000 MT of shade-grown Arabica and Robusta beans. It exports about 90 per cent of its washed Arabica as premium green bean to roasters. The company’s 13 Arabica estates are certified by Starbucks C.A.F.E. Practices. Its instant coffee comes in various customised blends that cater to the preferences MOST VALUABLE CEOs LIGHTWEIGHT Chacko Thomas, a plantation industry veteran with more than three decades of experience, has brought his expertise to bear on the company’s performance BREWING GOODNESS CHACKO PURACKAL THOMAS, MD & CEO, Tata Coffee
06 May 2023 | B W BUSINESSWORLD | 71 of all businesses of Tata Coffee with itself as part of a reorganisation plan in line with its strategic priority of unlocking synergies and efficiencies. The plantation business of Tata Coffee (TCL) demerged into TCPL’s wholly-owned arm TCPL Beverages & Foods (TBFL). TEAM BW “Our subsidiary, Eight O’Clock Coffee recorded improved performance during the quarter owing to better realisations and favourable channel mix” quarter, driven by improved realisations despite lower exports from India as a result of the delay in despatches. There has also been an improved margin driven by higher proportion of specialty/ differentiated products as well as lower costs. The sales to all key markets have been robust. For the financial year FY22, revenues from instant coffee business grew 20 per cent with improved margins. The order book continues to be healthy both in India and Vietnam, the company said. Success of Instant According to Thomas, the performance of instant coffee business continues to be robust. “Our plantation performance on green bean coffee and pepper during the year had also been strong, aided by improved realisations. Our subsidiary, Eight O’Clock Coffee (EOC) recorded improved performance during the quarter owing to better realisations and favourable channel mix,” he said. In March 2022, Tata Consumer Products (TCPL) had announced the merger
72 | B W BUSINESSWORLD | 06 May 2023 I n its bid to build N M D C 2 . 0 , t h e minerals and mining major is looking to achieve a capacity of 100 million metric tonne (MT) by 2030, which, it hopes, will raise its domestic market share to 25 per cent, up from the present 17 per cent. The company also hopes to add gold, in addition to coal and other strategic minerals, in its portfolio. Chairman & Managing Director Amitava Mukherjee, a 1995 batch IRAS officer, is spearheading the company’s transformation towards NMDC 2.0. The growth trajectory management, digital initiatives, and policy formulation as his forte. It was in 1968 that NMDC commissioned its first iron ore mine in Bailadila. Since then, it has been securing raw materials for India’s steel demand. In FY22 and FY23, NMDC achieved iron ore production of more than 40 MMT. In the journey from 4 MMT to 40MMT, NMDC has been known to develop some of the finest mines. The company hopes to carry on the same momentum and further build on the tempo in its bid to become a 100 MMT mining company by 2030. It was in the early 1990s that NMDC set up its R&D centre in Hyderabad. It has now become a full-fledged R&D centre extending technology support to other in-house projects as well as those of other organisations as well. NMDC’s R&D wing also helps sectoral clients like SAIL, CIL, and NTPC. NMDC has a workforce of 5,500 employees. Taken mathematically, the value added by every employee to NMDC’s revenue is approximately Rs 5 crore. Expansion Plans Already the largest iron ore producer in the country, NMDC further aspires to increase its market share in the domestic iron a t N M D C h a s b e e n impressive. In the last three years, its revenue registered a CAGR of approximately 28 per cent. Its production a l s o i n c r e a s e d f r o m approximately 31 MMT to nearly 42 MMT. During the pandemic, when domestic production dipped by 17 per cent, NMDC saw a growth of 8.5 per cent. Key Milestone Under Mukherjee, NMDC crossed the milestone of Rs 25,000 crore in topline. It also became the first central public sector enterprise to implement enterprise resource planning on SAP’s S/4 HANA platform. Mukherjee counts project MOST VALUABLE CEOs SUPER HEAVYWEIGHT Under Chairman & Managing Director Amitava Mukherjee, mineral and mining major NMDC has achieved the milestone of more than Rs 25,000 crore in topline AMBITIOUS TARGETS, GREEN FUTURE AMITAVA MUKHERJEE, CHAIRMAN & MD, NMDC
06 May 2023 | B W BUSINESSWORLD | 73 “In line with the government’s vision of boosting infra to fuel growth and the economy, NMDC has been rolling out ambitious projects and capex outlay” projects and capex outlay. It is also working towards a self-reliant mining sector. N M D C h a s b e e n devoted towards building India into an iron and steel powerhouse. An eco-friendly, green energy enthusiast, the company also ensures that India’s development is sustainable, and future is green. TEAM BW ore market. With seven operating mines producing more than 40 MMT of iron ore, the company plans to ramp up the production capacity to 67 MMT per annum by FY26. Besides setting up a Global Exploration Centre at Raipur, Chhattisgarh, NMDC has a collaboration with MECL, ISRO and IIT Kharagpur for joint mineral exploration activities -- all valuable steps towards creating a diversified portfolio. It has an operating coking coal asse t in Mozambique, and will soon be operationalising a gold deposit in Australia. In keeping with the government’s vision of boosting infrastructure to fuel growth and the economy, NMDC has been rolling out ambitious
74 | B W BUSINESSWORLD | 06 May 2023 I OC Chairman Shrikant Madhav Vaidya describes himself as a “refiner at heart, living by the motto of “Pehle Indian, Phir Oil — Nation Before Business”. He wishes to make the world a little better than before; follows the mantra of “Aim, Act & Accomplish” in tandem with the team. He is also a staunch believer in the power of innovation. In his profile on a business networking website, Vaidya also describes himself as a ‘could have been cricketer’. He is a fitness enthusiast who loves to unwind with a book or a movie. He draws inspiration from transformational leaders like Mahatma Gandhi, Martin Luther King Jr. and Nelson Mandela. Under Vaidya’s able leadership IOC has continued to hold the largest market share of India’s petroleum product consumption. As a ‘Maharatna’ company, it addresses the multiple energy needs of the nation with its integrated business model, leading from the front as a responsible energy major. Record Performance The year 2020-21 witnessed Indian Oil registering record profits. “During 2021-22 we once again surpassed our best, by notching up the highest-ever revenue and record net profit,” said Vaidya emphatically. During 2021-22, Indian Oil’s revenue from operations grew more than 41 per cent compared to the previous year, and net profit rose nearly 11 per cent. “This growth crore, up from Rs 5,14,890 crore in the previous financial year, while its net profit stood at Rs 24,184 crore, up from Rs 21,836 crore in the previous year. Its consolidated revenue, after including earnings of subsidiaries like Chennai Petroleum Corporation (CPCL), came in at Rs 7.36 lakh crore. Go Hydrogen To meet the net-zero commitment, the Indian MOST VALUABLE CEOs SHRIKANT M. VAIDYA, CHAIRMAN, Indian Oil Corporation SUPER HEAVYWEIGHT “During 2021-22 we once again surpassed our best, by notching up the highestever revenue and record net profit” Under Shrikant M. Vaidya’s able leadership, Indian Oil Corporation has maintained its status as India’s largest integrated and diversified energy company by delivering stellar performance year after year DELIVERING TOP PERFORMANCE government has announced the green hydrogen and ammonia policy to boost green hydrogen production to 5 MMT by 2030 and make India an export hub for this clean fuel. IOC, says Vaidya, is committed to leveraging this policy support. The company will be producing green hydrogen in stages at the Mathura and Panipat refineries, the chairman said. TEAM BW is remarkable, and to put it in context, we must remember that even the year before, we notched up record numbers. This is an extraordinary feat that will surely inspire Team Indian Oil to aim for new benchmarks of operational excellence in the coming years,” Vaidya added. In number terms, IOC reported its highest ever revenue of Rs 7,28,460
FOR MORE INFORMATION Devika Kundu Sengupta | +91 98716 54991 [email protected] FOR NOMINATIONS Neeraj Verma | +91 8076825854 [email protected] | POWERED BY KNOWLEDGE PARTNER SUPPORTING PARTNER ORGANIZED BY #BWBestOfFinTech FESTIVAL OF CONCLAVE + AWARDS 3rd edition Powered By Scan to Nominate
76 | B W BUSINESSWORLD | 06 May 2023 An IT services industry veteran of 27 years, Thierry Delaporte, as CEO and MD of Wipro brings strategic insight to the company’s leadership team, deep operational knowledge for driving business growth and furthering partnerships, as well as his experience of leading cross-cultural teams. shareholders, and pursue growth opportunities in the global market. “Our net income in absolute terms was the h i g h e s t e v e r, w h i c h grew by over 13 per cent and earnings per share expanded by 17 per cent for the full year. We also had a robust operating cash flow generation of Rs 11,000 crore,” said Delaporte. He termed FY22 as the year that saw Wipro clock MOST VALUABLE CEOs THIERRY DELAPORTE, CEO & MD, Wipro SUPER HEAVYWEIGHT “We continued to invest in our people and added over 45,000 new employees on a net basis in FY22, marking our highest ever net talent acquisition” Thierry Delaporte has been driving growth at Wipro through his strategic vision, deep operational knowledge and his experience of leading cross-cultural teams IN MISSION MODE its highest ever net talent acquisition. “We continued to invest in our people and added over 45,000 new employees on a net basis in FY22, marking our highest ever net talent acquisition,” Delaporte said. Among the Indian IT companies, Delaporte is one of the highest paid CEOs. As per news reports, Delaporte’s annual compensation stands at Rs 79 crore, which amounts to 0.1 per cent of the company’s revenue and 0.65 per cent of the company’s profit. TEAM BW IT Ser vices achieved significant growth and operational excellence in the financial year 2021-2022, crossing an important revenue milestone of $10.4 billion. The company’s focus on investing in solutions, capabilities and talent enabled it to generate strong revenue growth, maintain high margins, and drive record net income. With its customer-centric approach and technologydriven ecosystem, Wipro IT Services is well-positioned to continue to deliver value to its clients and P r i o r t o j o i n i n g Wipro, Delaporte was t h e c h i e f o p e r a t i n g officer and a member of the Group Executive Board at Capgemini. He drove Capgemini’s strategic planning and operations for several key businesses, and led the group’s transformation agenda. Delaporte is the co-founder of Life Project 4 Youth, a not-for-profit organisation dedicated to the professional and social integration of young adults living in extreme poverty. Strong Growth Under Delaporte, Wipro
06 May 2023 | B W BUSINESSWORLD | 77 When Vibha Padalkar joined HDFC Life in 2008, she brought with her a truckload of rich and varied work experience. She had performed key functions across industries as varied as global business process management, global FMCG, and international audit. Her work has won her sold 9.15 lakh policies and insured 54 million lives. It recorded a profit after tax of Rs 1,208 crore, the value of new business stood at Rs 2,675 crore with new business margins at 27.4 per cent. At the core of the company’s growth strategy is its customer-first approach, which enabled it to consolidate its industry position amid the challenging environment of FY22. MOST VALUABLE CEOs VIBHA PADALKAR, MD & CEO, HDFC Life SUPER HEAVYWEIGHT “The company’s private market share on new business premium was 21 per cent and its AUM increased 17 per cent to Rs 2,04,170 crore” Vibha Padalkar’s rich and varied work experience across new and traditional businesses has contributed immensely to the success of HDFC Life BANKING ON PREMIUM In FY22, the company saw a 16 per cent growth in individual WRP (weighted received premium) over the previous fiscal year along with 18 per cent growth in renewal premium. The 13th month persistency, including single premium, increased to 92 per cent. “The company’s private market share on new business premium was 21 per cent and its AUM increased 17 per cent to Rs 2,04,170 crore,” said Padalkar. TEAM BW like effective growth plan, financial return, women friendly policies, CSR and the overall work culture. Over the years Vibha has been the recipient of various awards including the ‘CA Business Leader — For Large Corporates — BFSI’ at the 15th ICAI Awards organised by The Institute of Chartered Accountants of India. In 2022, she was featured in the BW Businessworld’s Most Valuable CEOs list. All-round Show In FY22, the company several awards and recognition by organisations and institutions including the Institute of Chartered Accountants of India, media houses and industry bodies. She qualified as a member of the Institute of Chartered Accountants of England and Wales in 1992. She is also a member of the Institute of Chartered Accountants of India. Astutely led by Padalkar under the guidance of an experienced Board of Directors, HDFC Life has been consistently climbing up the ladder. Under her, HDFC Life has emerged stronger on parameters
78 | B W BUSINESSWORLD | 06 May 2023 Mohit Malhotra has nearly two-and-half decade of experience within Dabur India, one of the leading fast-moving consumer goods (FMCG) companies of India. He served as the head of marketing at Dabur India before his elevation as the CEO of Dabur International. He has vast experience in the Dabur group in various capacities. Malhotra also serves as a director of Dermoviva Skin Essentials Inc. and Weikfield International (UAE) LLC. He is an alumni of Indian Institute of Foreign Trade as well as various educational institutes in India and abroad. An FMCG Powerhouse Under Malhotra, Dabur India has been growing in strength and stature. In FY22, Dabur India generated a revenue of over Rs 8,000 crore from domestic operations and over Rs 2,800 crore from international markets. It operates in four continents and across 120- plus countries. The key overseas markets include Middle-East, Egypt, Turkey, Nepal, Bangladesh, and USA among others. It has 13 state-of-the-art manufacturing plants in India. In FY22, while the home and personal care segment with revenues of Rs 3,657 crore was the largest contributor to the domestic business with a 42 per cent share, the healthcare segment turned in revenues of Rs 2,783 crore or almost 36 per cent of the domestic turnover, and the food and beverages segment chipped in with revenues of Rs 1,312 crore, or nearly 17 per cent of the domestic MOST VALUABLE CEOs MOHIT MALHOTRA, CEO, Dabur India HEAVYWEIGHT Mohit Malhotra’s vast experience in the Dabur Group in various roles has been the driving force behind the sustained growth of the FMCG major over the years CONSISTENT PERFORMER a highlight of Malhotra’s leadership has been the massive expansion of the company’s footprint in the rural areas during FY21 and FY22. Until FY21 Dabur India had a direct coverage of 59,217 villages across India. By the close of FY22, the footprint had expanded to 89,840 villages, overshooting the target fixed for the next two years, said Malhotra. TEAM BW business. As for Dabur’s international business, the Middle-East, Asia and Africa accounted for 72 per cent. The pandemic-induced challenges impacted all businesses. Reacting to it, Malhotra said: “I firmly believe that our learnings from Covid have forged us into a more responsive, resilient, and responsible organisation.” Rural Expansion A key achievement and “I firmly believe that our learnings from Covid have forged us into a more responsive, resilient, and responsible organisation” Photograph by Himanshu Kumar
#RFGT23 2ND EDITION PRESENTS JUNE 2023 NOMINATE NOW Last date to nominate: May 10, 2023 EMINENT JURY DR. ANNURAG BATRA Chairman & Editor-in-Chief, BW Businessworld & Founder- exchange4media DR. AMIYA SAHU President, National Solid Waste Association of India MR. SUDHIR MISHRA Founder & Managing Partner, Trust Legal DR. SUNEEL PANDEY Director, Environment & Waste Management, TERI MS. SANCHITA JINDAL Former Adviser (Scientist G), Government of India, Ministry of Environment, Forest and Climate Change MS. GAURI SARIN Founder, Making Model Gurugram, Bhumijaa- platform for organic agripreneurs, Living without Medicine DR. SAMEER JOSHI Vice Chairman, Indian Plastics Institute, Acclaimed Polymer Technologist & Expert on Plastic Recycling MR. ASHUTOSH JOSHI CEO, Glasspower Recycling & Glasspower Group MR. ANSHU GUPTA Founder, Goonj & Indian Social Entrepreneur For Nominations: Priyanshi Khandelwal, +91 84508 44111, [email protected] Pawan Sharma, +91 88984 86301, [email protected] For Partnership Opportunities: Talees Rizvi, +91 93106 34007, [email protected] Somyajit Sengupta, +91 98182 47444, [email protected] Sajjad Mohammad, +91 99118 55935, [email protected]
80 | B W BUSINESSWORLD | 06 May 2023 Biologics, Biocon’s biosimilar subsidiary, recorded a healthy 24 per cent growth over the previous year, taking its revenues to Rs 3,464 crore. According to Mittal, the most significant growth driver was interchangeable bGlargine, which achieved double-digit market share in the United States, as well as continued improvement in the market share of some key existing products. He described FY22 as a “transformational” year for Biocon Biologics in many ways. New Segments During FY22, Biocon Biologics also entered the infectious and non-communicable disease segments through a strategic alliance with the Serum Institute Life Sciences, gaining access to 100 million doses of vaccine from their portfolio, with assured revenues and related margins. F u r t h e r m o r e , t h e acquisition of Viatris’ global biosimilar’s business marked a transformative milestone for Biocon Biologics, positioning it to become a fully integrated, world-leading biosimilar enterprise. “In FY2022, Syngene, our contract research, development and manufacturing company, delivered revenue growth of 19 per cent to Rs 2,604 crore on the back of sustained growth in all divisions, across small and large molecules,” he said. TEAM BW SIDDHARTH MITTAL, MD AND CEO, Biocon Siddharth Mittal, with over 20 years of global expertise in strategic finance, accounting, taxation and general management, has proved to be an asset for Biocon “In FY22, Syngene delivered revenue growth of 19 per cent to Rs 2,604 crore on the back of sustained growth...” MOST VALUABLE CEOS HEAVYWEIGHT S iddharth Mittal joined Biocon in May 2013 and was appointed as the President and CFO for the following six years before being elevated to the position of the company’s Managing Director and CEO. Throughout its fourdecade journey, Biocon has continuously reinvented itself in response to changing market needs, and Mittal has been an integral part of the company’s journey for around a decade now. He possesses diverse global experience in strategic finance and accounting, mergers and acquisitions, taxation, and general management, making him an asset to the company. Mittal holds a Bachelor of Commerce degree from the Symbiosis College of Arts and Commerce, Pune, and is a chartered accountant from the Institute of Chartered Accountants of India, as well as a certified public accountant from Colorado, USA. Global Experience Prior to joining Biocon, Mittal was Vice-President, Finance and Corporate Controller at Symphony Teleca, a leading US-based multinational IT company. He also served as Co-chairman, CII Southern Regional – Healthcare & Life Sciences 2020 – 21, and Chairman, CII Southern Regional Task Force on Pharmaceuticals. In the FY22, Biocon LEADING TRANSFORMATION
06 May 2023 | B W BUSINESSWORLD | 81 Suresh Narayanan took charge of India operations of Nestle in April 2015 amidst difficult and perhaps the most challenging times for the company. An alumni of Delhi School of Economics, Narayanan, like several top business leaders in the FMCG space, started with Hindustan Unilever followed by a stint at Colgate Palmolive. Within Nestle, he has led teams in Singapore, Egypt, and the Philippines before leading the India operations successfully. our highest double digit growth in a decade led by sustained volume and mix led growth, leading to a strong value growth. In 2022 total sales grew by 14.5 per cent and domestic sales increased by 14.8 per cent, with broadbased performance across all categories,” Narayanan, Chairman and MD, Nestlé India said. For the full calendar year 2022, the company reported sales of Rs 16,790 crore and profit of Rs 2,390 crore. Earnings per share came in at Rs 247.9, with market share gains in confectionary products. “Out of home (OOH) business made a strong comeback in 2022, recovering its pre Covid A seasoned FMCG professional, Suresh Narayanan brings his vast experience gained across the globe to bear on the performance of Nestle India “We delivered our highest double digit growth in a decade led by sustained volume and mix led growth” MOST VALUABLE CEOs HEAVYWEIGHT CHAMPION PERFORMANCE SURESH NARAYANAN, CHAIRMAN & MANAGING DIRECTOR, Nestle India Narayanan describes FY22 as an “extraordinary year”, where adversities were galore, yet Nestle India displayed “consistency in the face of storm”, combating volatilities, through thoughtful strategies and execution, that kept the growth engine robust. Addressing the shareholders, he said: “It was a year, where we grew responsibly together through resonant performance, strong brands, inspired people, empowered communities and with a strong commitment to sustainability.” As a testament of its pioneering work, Nestle India was recognised as the ‘MNC in India of the year’ in 2022 by All India Management Association and received the India Sustainability Champion Award at the India ESG Sustainability Summit 2022, he said. Robust Growth Under Narayanan, particularly in FY22, Nestle India clocked almost double-digit growth across all categories. “We delivered base and delivering robust growth. With our direct to consumer (D2C) platform, products manufactured by the company are now available in Delhi NCR,” Narayanan said. High commodity prices remains a challenge for every FMCG player today. The company said that prices of cereals, grains and coffee continues to be at a 10 year high. TEAM BW
82 | B W BUSINESSWORLD | 06 May 2023 MOST VALUABLE CEOs MIDDLEWEIGHT FOCUS ON THE CUSTOMER BALFOUR MANUEL, MD, Blue Dart ability for all our stakeholders, which is mirrored in our Q4 and year-end financial performance. Our focus on remaining customer-first, investing in our technology capabilities and thus, remaining agile in a VUCA environment, has helped the company improve its margins. FY22 has been a rewarding year.” He added: “We continue to remain an insanely customer-centric organisation, and therefore, innovation to deliver excellence at every touchpoint continues to remain a major priority.” TEAM BW A Blue Dart veteran of over 39 years, Balfour Manuel has been instrumental in the success of the logistics company since its inception “We continue to remain an insanely customer-centric organisation” I n May 2019, Balfour Manuel was appointed managing director of Blue Dart Express for a period of five years. Since taking charge as MD, Manuel has led the organisation successfully with a strategic vision and a focus on customers with inclusive execution of customer-centric value propositions, thereby consolidating Blue Dart’s leadership position in the marketplace. Manuel oversees the organisation’s market differentiating capabilities which includes an extensive ground and air network supported by the organisation’s own fleet of aircraft which allows access to 35,000-plus locations across the nation. People-first Philosophy A passionate believer in the saying that people create differentiated experiences, Manuel has constantly propagated ‘PeopleFirst’ philosophy in the organisation by encouraging creativity, innovation, entrepreneurship and empowerment. Under his leadership, Blue Dart remains one of India’s most innovative and awarded express logistics companies. Manuel holds a Master’s degree in Marketing from University of Mumbai. Profit Grows 4x For the fiscal year ended March 31, 2022, Blue Dart Express reported nearly a four-fold jump in its consolidated net profit at Rs 382.21 crore. It had reported a net profit of Rs 101.81 crore in FY21. Its revenues from operations for the entire fiscal grew 34.13 per cent to Rs 4,410.49 crore. It was Rs 3,288.13 crore in the previous financial year. Commenting on the financials for FY22 Manuel said: “Throughout the year, we have shown outstanding resilience, responsiveness and reli-
06 May 2023 | B W BUSINESSWORLD | 83 MOST VALUABLE CEOs MIDDLEWEIGHT WAY TO GO MITHUN CHITTILAPPILLY, MD, V-Guard Industries Pan-India Operations In the period under review, both electrical and consumer durables segments posted strong growth, offsetting the somewhat muted growth in the electronics business for the company. Chittilappilly said: “I am happy to say that our geographical diversification strategy played out well, with both the south and non-south markets contributing to the performance positively during the year to help us deliver a balanced growth.” The company manufactures voltage stabilisers, electrical cable, electric pumps, electric motors, geysers, solar water heaters, electric fans and UPSs. It was founded in 1977 by Kochouseph Chittilappilly as a small voltage stabiliser manufacturing unit. TEAM BW Under the young and dynamic leadership of Mithun Chittilappilly, V-Guard Industries has grown to have a pan-India presence with several milestones to its credit “We set new benchmarks in terms of the highestever revenues for both Q4 and the full fiscal year” Mithun Chittilappilly joined this family business in 2006 as Executive Director, Finance & Marketing. Under his watchful eyes, the company was listed in 2008. A year later Chittilappilly expanded the operations to other parts of India. Until then V-Guard Industries was predominantly a south Indian brand. Chittilappilly took over as the MD in 2012 from his father and founder and chairman emeritus of V-Guard. He is an MBA from Melbourne Business School. New Benchmarks in Revenue Growth In FY22, the company clocked net revenues of Rs 3,474.65 crore, recording a jump of 28.7 per cent over the previous fiscal year, along with an EBITDA of Rs 332.14 crore. “I am pleased to share that we set new benchmarks in terms of the highest-ever revenues for both Q4 (when we crossed the milestone of Rs 1,000 crore quarterly revenue for the first time) and the full fiscal year,” said Chittilappilly. He acknowledged that in a difficult year the company had to take measures to stay ahead of the curve. “We were also forced to take some large price hikes across our portfolio to manage our costs and ensure operational continuity through the year, as factory-related costs also shot up with the commencement of manufacturing operations in Roorkee and Sikkim. Other cost elements such as travel and freight also went up as branch operations started to return to regular mode from the second half of the year, and additionally on account of the significantly higher diesel prices,” he said.
84 | B W BUSINESSWORLD | 06 May 2023 MOST VALUABLE CEOs MIDDLEWEIGHT TRUSTED SOLUTIONS PROVIDER SANJIV LAL, CEO & MD, Rallis India 22, the company’s gross revenue grew 7.2 per cent to Rs 2,603.93 crore. In FY21, it was Rs 2,429 crore. Commenting on the financials, Lal said: “The company delivered a resilient performance in the wake of multiple headwinds during the year. Our domestic crop care business grew 14 per cent and exports 6.2 per cent during the year.” The company’s seeds business faced challenges and revenue fell 13 per cent during FY2022. Lal said the supply chain challenges continued into Q4 with availability issues for certain intermediates as well as steep cost inflation. TEAM BW Sanjiv Lal’s wide experience in manufacturing and operations coupled with deep knowledge of process chemistry has stood Rallis India in good stead “The company delivered a resilient performance in the wake of multiple headwinds during the year” Rallis India, a subsidiary of Tata Chemicals, has established a reputation of being a trusted solutions provider for agri-inputs, globally, with an accent on innovation, a thorough knowledge of farm science and a penetrative distribution network. Lal was picked up from Tata Chemicals, another Tata Group company where he was the Chief Operating Officer (India Chemicals Business). Lal brings more than 37 years of experience to the table having worked at Hindustan Lever and Tata Chemicals. At the time of his appointment, the company’s chairman, Bhaskar Bhat had said: “I am pleased to welcome Lal to the Rallis family. Lal brings with him a depth of manufacturing and operational experience, business expertise and knowledge of process chemistry — all of which would be hugely useful in Rallis’ future journey.” Serving Farmers Via Science Incorporated in 1948, Rallis India is engaged in the business of manufacture and marketing of agri inputs. From a solo play on agrochemicals, the company has grown to make its presence felt across the value chain of agriculture inputs — right from seeds to organic plant growth nutrients along with a suite of practices and services. Rallis has evolved its innovation strategy on ‘Serving Farmers through Science’. Accordingly, it develops innovative solutions to enable farmers to improve their productivity. The company has a strong distribution network of more than 6,000 dealers and over 70,000 retailers. It reaches a vast multitude of India’s farmers covering 80 per cent of the districts and exports to more than 58 countries. For the fiscal year 2021-
06 May 2023 | B W BUSINESSWORLD | 85 MOST VALUABLE CEOs LIGHTWEIGHT DYNAMIC LEADERSHIP HITESH OBEROI, CO-PROMOTER, CEO & MD, INFO Edge India Challenging Period The two financial years — 2020-21 and 2021- 22 — were particularly challenging years for the economy and for India Inc. Despite the challenges, under Oberoi’s dynamic leadership, Info Edge’s core business — recruitment solutions — under the primary brand ‘naukri.com’ witnessed an impressive performance in FY22. The business segment became stronger in terms of cash generation while the operating cash flow more than doubled from Rs 492 crore in FY21 to Rs 1,024.4 crore in FY22. The recruitment segment billings increased by 72.64 per cent to Rs 1,436.4 crore in FY22 while revenue grew by 4 4 . 2 1 p e r c e n t t o R s 1,154.2 crore. The segment’s EBITDA was Rs 679.9 crore in FY22 — representing an annual growth of over 55 per cent. “Clearly, there was already a significant upswing in hiring activities in India during FY22. In the initial phase, this was mostly IT-led hiring. However, during the last quarter of FY22, non-IT hiring also picked as nonIT companies were fast adopting digitisation and building their internal IT teams,” said Oberoi. TEAM BW Hitesh Oberoi has been driving the growth of hiring solutions provider Info Edge India thanks to his strong belief in the power of education to nurture development “Clearly, there was already a significant upswing in hiring activities in India during FY22” Hitesh Oberoi holds the positions of co-promoter, managing director, and chief executive officer at Info Edge India, a company that owns the country’s leading job site, Naukri. com, as well as 99acres. com, Jeevansathi.com, and Shiksha.com, and has investments in more than two dozen internet startups. With more than two decades of experience in the internet industry, Hitesh is involved in various industry forums, serving as a charter member of TiE New Delhi and as the former chairman of IAMAI — The Internet and Mobile Association of India. Hitesh is also one of the founders and trustees of Ashoka University and the newly established Plaksha University. He strongly believes in utilising education as a primary tool for development and the power of philanthropy to revolutionise the Indian education landscape. In 2008, Oberoi was honoured with the prestigious Ernst and Young E n t r e p r e n e u r o f t h e Year award for Business Transformation, which he shared with his partner. He was also the recipient of the Distinguished Alumnus Award of 2019 from IIM Bangalore.
86 | B W BUSINESSWORLD | 06 May 2023 Who can understand the products likely to be used mostly by women better than a woman? Meet M.R Jyothy, the managing director of the home-grown FMCG brand Jyothi Labs and the principal architect behind all product innovations at the company since 2009. Prior to being appointed MD in 2000, Jyothi led the sales and marketing functions at the company that owns brands like Ujala Supreme, Henko, Margo, Exo, Pril and Mr. White, among others, across categories like fabric care, personal care, dish wash and home care. Jyothy joined the family business armed with a postgraduate degree in management along with an additional diploma in family managed business administration. She also completed the owner/ president management programme from Harvard Business School. She has been feted with several industry awards and recognition for her work. This includes the Woman Entrepreneur of the Year award by Zee Business, as well as a place in the 50 most influential women list brought out by different media outlets. Growth amid challenges Jyothi Labs logged sales of at Rs 2,196.49 crore in 2021- 22, growing 15.1 per cent over Rs 1,909.12 crore in the year-ago period. “We have delivered steady growth in spite of a challenging macro environment. The doubledigit revenue growth for the last few quarters has been sustained by our relentless focus on execution. We are winning market shares and building scale in our operations,” Jyothy said. She added, “Despite the challenges around rising MOST VALUABLE CEOs LIGHTWEIGHT TRUSTED BY CUSTOMERS M.R. JYOTHY, MD, Jyothy Labs bump in the cost of raw materials during FY22, Jyothi Labs undertook calibrated pricing actions in order to abate significant input cost inflation persisting across product categories. During FY22, the company had a direct reach to 1 million outlets and a retail reach of 2.8 million outlets pan-India. It has six power brands, a sales force of over 2,800 and sold over 4.4 million units of products daily during FY22. TEAM BW “I am glad to report that we have crossed the Rs 2,000 crore topline milestone, closing the FY22 at Rs 2,196 crore” cost, the year has given us several reasons to be exuberant. I am glad to report that we have crossed the Rs 2,000 crore topline milestone, closing the FY22 at Rs 2,196 crore with a strong growth of 15.1 per cent.” During the year, the company strengthened its market share and continued to grow the same backed by distribution, digital expansion and product innovation initiatives, which resulted in double-digit growth in the fourth quarter and on a 2-year CAGR basis. Due to As the principal architect behind all the product innovations at Jyothy Labs, M.R. Jyothy has been involved in every step of the FMCG company’s growth journey
06 May 2023 | B W BUSINESSWORLD | 87 I n addition to being CEO & MD of Gulf Oil Lubricants India, Ravi Chawla holds responsibilities for the Cluster Markets/Asia Pacific Region since 2018. His role covers all strategic and operational areas of these businesses, their growth and profitability. He is also a member on the board of Gulf Oil Lubricants India and Gulf Oil Marine, Gulf Bangladesh, Gulf Asia Pacific and Mangalam Retail Services. EBITDA grew 7.7 per cent at Rs 285.49 crore in spite of multiple external challenges all through the year. “Our FY 2021- 2 2 p e r f o r m a n c e h a s revalidated our faith in our strategies and has assured us that we are on the right path. This resilient performance of our company amidst a low industry growth e n v i r o n m e n t i s a testimony to our agility and preparedness for unprecedented events,” said Chawla in his address to the shareholders. All segments of business did well in FY22 and the demand conditions picked up during the fiscal. Diesel engine oils for commercial An oil and lubricants industry veteran, Ravi Chawla has been managing the Gulf India business since 2007 MOST VALUABLE CEOs LIGHTWEIGHT RESILIENT GROWTH RAVI CHAWLA, CEO & MD, Gulf Oil Lubricants India is one of the top players and the fastest growing company in the lubricants industry in India. The Gulf brand is owned by its holding company, Gulf Oil International, which is present in more than 100 countries. Gulf Oil ended FY22 on a high note. The company’s full year volumes grew in doubledigits. The full-year revenue growth was 32.6 per cent at Rs 2,191.64 crore while the vehicles and passenger car motor oils saw very good volume growth, as the company increased market share in both B2C and B2B segments, said Chawla. The company achieved excellent growth in Industrial/ B2B segment, OEM Franchisee Work Shops (FWSs) and from customers in the infrastructure sector, he added. TEAM BW “Our FY 2021-22 performance has revalidated our faith in our strategies and has assured us that we are on the right path” Prior to joining Gulf, Chawla worked at Shell Lubricants from 1998 to 2006. He has extensive e x p e r i e n c e i n s a l e s , marketing, OEM and general management having worked across multiple sectors, including FMCG, tyres, photographic films/equipment, and luggage, and organisations like Polaroid, Wipro Consumer Products, Ceat Tyres and Blowplast. Chawla holds a Master’s in Management Studies (MMS) from University o f M u m b a i a n d a n undergraduate degree in Commerce from Sydenham College, Mumbai. Expanding Globally Today, Gulf Oil, owned by the Hinduja Group,
88 | B W BUSINESSWORLD | 06 May 2023 W hat is FOMO? Fear of missing out (FOMO) is the thought that other people are enjoying experiences, which one is not. Surveys suggest that FOMO is highly prevalent among millennials. More than 65 per cent of millennials experience FOMO. A 50 per cent discount sale on your favourite clothing brand. An exclusive membership offered for a limited time frame. Your folks climbing atop a summit and posting pictures from there. And more such instances can evoke a feeling of FOMO. There are some interesting statistics from 2021 on FOMO compiled by LinkedIn’s ‘Top voice’ and influencer, Colin Shaw: l 51 per cent of individuals visit or log into social media more regularly. l 27 per cent of people log onto social media first thing in the morning. l 45 per cent of users couldn’t wait for more than 12 hours to check their social media profiles. l 20 per cent users couldn’t stay away from their social media accounts for more than one hour. USE OF FOMO IN SOCIAL MEDIA MARKETING WHY USE FOMO IN MARKETING? u To Create a Sense of Urgency or Set a Deadline Keeping a weekend flash sale or setting a time limit on the sale products, creates a sense of urgency for the customers. The Black Friday Sale is a classic and accurate example of FOMO marketing. Stores offer big discounts and open their stores during predawn hours on this day to attract people. It creates FOMO in the customers and they act quickly before the time runs out on the deals. Notifications from your shopping app, that the product you had been eyeing for some time is almost sold out, creates FOMO too. Letting your customers know if they are running out of time, or if the stock is low motivates customers to make hurried purchases. The countdown timer on Instagram can create an immediate trigger in the customer to buy the product before the deal ends. If your company can weave this kind of urgency and excitement into the campaign, then people will find it difficult to resist the offers made. “The more scarce a product is, the more valuable it becomes to people,” says Adam Alter, associate professor of marketing at the New York University Stern School Of Business. He says “scarcity in itself is a source of value because it means you have something that other people can’t have.” Offering a little quantity of whatever you’re selling will arouse a sense of scarcity and encourage speedy sales COLUMN DIGITAL MARKETING / Anu Sehgal
06 May 2023 | B W BUSINESSWORLD | 89 For customers, exclusivity attracts attention and adds value to the product. When Pinterest was first launching, they made their site exclusive to people who got an invite from their friends. Thus people wanted to be part of this special group and quickly signed up even when they didn’t know what it was all about! Making the selected few feel valued and rewarded infuses FOMO in others, who are not part of that inner circle The author is an entrepreneur in the digital space vTo Create Scarcity & Exclusivity “The more scarce a product is, the more valuable it becomes to people,” says Adam Alter, associate professor of marketing at the New York University Stern School Of Business. He says “scarcity in itself is a source of value because it means you have something that other people can’t have.” Offering a little quantity of whatever you’re selling will arouse a sense of scarcity and encourage speedy sales. For customers, exclusivity attracts attention and adds value to the product. When Pinterest was first launching, they made their site exclusive to people who got an invite from their friends. Thus people wanted to be part of this special group and quickly signed up even when they didn’t know what it was all about! Making the selected few feel valued and rewarded infuses FOMO in others, who are not part of that inner circle. Offering deals, rewards or promo codes to the exclusive subscribers or free shipping of products also brings forth the element of FOMO in people who haven’t signed up with the brand. For instance, over 100 million people signed up for Amazon Prime to get deals that non- Prime members can’t get. w Use Influencers As much as 82 per cent of customers are most likely inclined to heed to influencers’ advice and recommendations. Influencers have thousands of followers who like to imitate their sense of style. They influence their followers in such a way that it creates desire in customers for goods and products that they advertise. Companies thus, blend FOMO with influencer marketing. Research shows that people find it more authentic when a real person gives a review, than if it was done by means of a traditional commercial of earlier years. xEncourage Social Proof Social proof is a marketing app r o a c h a n d caters to herd mentality in humans. It can be in the form of ratings, reviews or testimonials which demonstrate that other people are buying from you, utilising your products and services and enjoying them. So it must be good. This can increase conversion by 270 per cent as it shows that real people are using the product and this increases FOMO. According to a Podium survey, 93 per cent consumers claim that online reviews have influenced their shopping decisions. Photograph by Vectorium Photographs by Mast3r
90 | B W BUSINESSWORLD | 06 May 2023 IN CONVERSATION Ramakant Dwivedi’s book Indo-Kyrgyz Relations: Challenges & Opportunities, which introduces us to important aspects of relations between India and Kyrgyzstan, was unveiled recently in New Delhi. The book takes an in-depth look at the relationship, challenges and opportunities between India and Kyrgyzstan. Dwivedi spoke to BW Businessworld about the highlights of his new book and the need for having more economic engagement with the Central Asian region. Excerpts: What was the inspiration behind this book? The idea started when the Taliban took over in Afghanistan because of which there were a lot of geopolitical changes in Central Asia. Kyrgyz Republic is an important country in Central Asia and it has a common border with China. The developments taking place in Afghanistan are going to have implications for India and the Central Asian countries. In this book, we decided to invoke the principle of bilateralism with each country rather than looking at Central Asia as a whole region. That is why the focus is on Kyrgyz Republic. Reason being that there are many nuanced approaches within the region when it comes to foreign policy, politics, economics, etc. What are the key highlights of this book? This book details the current changes in the Central Asian geopolitics and the forces shaping those changes. It looks at the role of the United States, Russia and China and their respective priorities and engagement with the Central Asian countries. It also details the implications of the Kabul takeover by Taliban and how this takeover is going to impact India’s interest in the region. The first part of the book also looks at the great engagement which we have with each country of the Central Asian region. While the second part of the book looks at the bilateral relations with the Kyrgyz Republic in terms of economic, political and mutual agreements in science and technology. When we look at this bilateral relationship in 2023, both in its historical and current perspective, we find that we have not been able to exploit and channelise the potential to the fullest. This book is an attempt to put those issues in perspective, it’s a critical assessment of our relationship with the Kyrgyz Republic, a fact sheet of policies and initiatives taken by India and vice-versa to leverage the great economic potential between the two countries. What is your comment on our current diplomatic engagement with the Central Asian countries, especially the Krygyz Republic? Looking at the current engagement between India and the Kyrgyz Republic, we have the same stand on a lot of issues related to economic and geopolitical realities. However, this excellent relationship has not been addressed effectively by economic R amakant Dwivedi spoke to BW Businessworld about the highlights of his new book Indo-Kyrgyz Relations: Challenges & Opportunities, and the need for having more economic engagement with the Central Asian region despite geographical inaccessibility By Ruhail Amin “WE NEED TO BE MORE IMAGINATIVE IN OUR APPROACH TOWARDS CENTRAL ASIA” engagement. We need to do a lot more as far as the economic engagement with these countries is concerned. We enjoy a lot of goodwill capital with the Central Asian countries, despite being geographically inaccessible, how can we translate this goodwill capital to greater economic exchanges? If you look at Kazakhstan, Kyrgyz Republic, Tajikistan, Uzbekistan and
06 May 2023 | B W BUSINESSWORLD | 91 Turkmenistan, there is undoubtedly a lot of cultural goodwill we have built over the years. However, I want to point out that there is a big gap between the goodwill capital and the economic engagement that we have with the region. Now the question is, why the economic engagement could not be increased? One of the reasons is the geographical inaccessibility, and in the initial part of our engagement, there was a lack of clear policy framework from the Central Asian countries. On our part, I would say, India has been doing pretty good with respect to extending credit lines, cultural exchanges and strategic partnerships. As an observer of Central Asian affairs, given the potential of the relationship, I would again like to state that it has to translate into more economic activities, and we are working on it. India is an energy intensive country and we can benefit from Central Asia in a big way, how can we realise this potential despite the geographical inaccessibility part? Take the example of the USA, it doesn’t have geographical accessibility to West Asia, how is it taking all the resources from the region? There is another way of looking at it. Despite having the issue of geographical inaccessibility, I think we can be more imaginative in our approach towards Central Asia. The issue of Chabahar has somehow been delayed, we could have done better as far as Chabahar is concerned. I would also say the Central Asian countries have been inconsistent in terms of their approach and policies. The earlier they realise it, the mutually beneficial it will be for both of us. We now have diplomatic missions in all the five countries. Given the current situation, I think New Delhi has taken a great stand as far as our relationship with the Central Asian region is concerned.
92 | BW BUSINESSWORLD | 06 May 2023 WHAT IS THE FUTURE OF DESIGN? BWFOD2023 FUTURE OF DESIGN
06 May 2023 | B W BUSINESSWORLD | 93 Should it be aesthetically pleasing, functional or sustainable? Should it be all of the above? How do we define good design? And, where is design headed? esign is central to the success of any product or service today. The chief design officer and the head of design have a seat at the top table across organisations. In fact, smart leaders often consult with the head of design before launching a product or a service. We are all aware of Dieter Rams’ principles of good design – innovative, aesthetic, useful, honest, understandable, unobtrusive, long-lasting, and environment friendly. Over the years we have seen that good design responds to each of these. Another interesting fact is that during times of scarcity, design becomes innovative. Take for example, how Modernism gathered steam during the Great Depression in the United States. It was an effort to make good design accessible to a larger audience. Another example is the Vespa scooter, born in post war Italy, designed by Corradino d’Ascanio in 1946. This was an efficient mode of transport that was inexpensive and streamlined. The cutaway profile of the seat gave it a graceful look. The fourth edition of the BW Businessworld Future of Design (FOD) Summit and Awards took place in Mumbai on April 6. The aim through the FOD has always been to gather top design thinkers under one roof to talk about principles of good design, innovation and what design will be able to accomplish in the next few years. This year the theme was regenerative design. Thought leaders are emphasising the regeneration of our economies and societies. Regenerative design implies restoration. It impacts ecology, health, and society positively. D By Jyotsna Sharma Photograph by McLittle/Canva
WHO SAID WHAT? AJAY JAIN, Head of Global Design Strategy, Tata Motors Jain said that the increase in global population is directly affecting the earth's pollution levels. He stressed that sustainability is the need of the hour and the window to save our planet is closing with each passing day. "The moment we switch to electric cars, we reduce pollution. We reduce the number of moving parts by 10 times. Hence, automatically the solution becomes sustainable,” he added. Describing Avinya, Tata’s electric vehicle, he said keeping sustainability at the core of design they used locally sourced material. “We try to use recycled material in such a manner that it feels as if it's brand new. There is no compromise on that level. It is a layer of regenerative design," he added. SHARAD AGARWAL, Head, Lamborghini India The automotive space is going through a huge shift with four key pillars, autonomous driving, connectivity and digitisation, safety and sustainability, which are driving the future of mobility, said Agarwal. Describing the current challenge that the company faces, Agarwal said, "On one side, we are facing limitations from regulations because the cars need to be sustainable. On the other side, we had a challenge of customer expectations because, as a brand, we make a dream car; we don't make cars for daily commutes. So, the challenge is how do we find a fair balance between the two?" "For this, we are hybridising our entire model range with an investment of 1.8 billion euros. Furthermore, by 2028, we will bring the first fully electric car model," Agarwal said on the company’s future commitments. BWFOD2023 FUTURE OF DESIGN 94 | BW BUSINESSWORLD | 06 May 2023
06 May 2023 | B W BUSINESSWORLD | 95 PEARL UPPAL, Creative Head and Founder, Talking Threads Uppal spoke of how the manufacture and consumption of textiles frequently leaves a worldwide footprint of waste and pollution, despite the fact that they are an essential component of daily life and the global economy. The environment is negatively impacted by current linear fashion processes, which follow a straight path from design to disposal, resulting in 2.1 billion tonnes of carbon emissions annually and 92 million tonnes of textile trash. Uppal said that the circular economy for textiles can reduce waste in the sector, which is crucial for developing nations’ economies. She also said that companies must be aware of what is happening in the supply chain and share this information internally and internationally. SONALI RASTOGI, Co-founder, Morphogenesis On the sustainability of buildings, Co-founder of Morphogenesis, Sonali Rastogi counts four principles which make the SOUL of a building: Sustainability, which means achieving 50 per cent less energy consumption than the best green standards, Optimisation means how to get the best out of the resource you use, and two other elements of SOUL are Uniqueness and Livable. DARSHAN GANDHI, Head, Global Design, Godrej Consumer Products For Darshan Gandhi, good design “begins with space and an environment that you create around design and creativity”. This requires what Gandhi termed “Champions of Design”, who are in leadership positions and understand the importance of embedding design thinking into the organisation’s values. Godrej Consumer Products is present across more than 90 countries with a turnover of Rs 14,000 crore across the globe. One of their most successful designs includes the Godrej Aer – air freshener range, which was one of their fastest-growing products in India, reportedly turning over Rs 100 crore in just one year. She spoke of how the use of design across company structure, product design, and even consumer engagement helped take them to the position they are at. “We are proud when people copy us. It is a sign of success. It also shows that good design can cut down the time needed for a company to progress from 10 to two years,” she added.
96 | BW BUSINESSWORLD | 06 May 2023 merchandising and design teams actively seeking out local manufacturers who can work with locally sourced materials, thereby empowering the local community. This localisation aspect is a significant theme and a key focus for us moving forward,” he said. Urbanic operates using a direct-to-consumer model, creating huge efficiencies to keep prices competitive while maintaining high-quality standards. While talking about sustainability Wellwood said that the brand is committed to being a sustainable business and they have initiated many sustainability projects, such as partnering with the clothes box foundation to upcycle deadstock and repurpose them for local communities in need. PERNIA QURESHI, Creative Director, Saritoria A recent report by the Business of Fashion revealed that the second-hand designer industry is worth $130 billion worldwide. Qureshi said, “The fashion industry has some drawbacks, one among those is that it is the second most polluting industry in the world. 35 per cent of microplastic in the ocean is from the fashion industry. 85 per cent of clothes made end up in landfills or are burnt.” To decrease these numbers, it is necessary for everyone to reuse their clothes as much as they can. Qureshi said, her aim through Saritoria is to make fashion democratic by making the pieces available to people who might not be able to afford designer pieces. She stressed on the importance of bringing back fashion trends so that nothing goes to waste and fashion can be passed on to generations. To keep fashion in a circular economy people should start selling their clothing and earn money from it. “This business model is sustainable in nature, and it also encourages people to be entrepreneurs from home.” JAMES WELLWOOD, CEO and Founding Partner, Urbanic Urbanic is a brand that focuses on creativity and sustainability through advanced technology, said Wellwood. “Our main goal as a brand is to provide sustainable and creative fashion using advanced technology. We utilise proprietary technology and AI to ensure all aspects of our business, including community and sustainability, are managed efficiently. This is at the core of our business,” he said. He also said that the company is focusing on localisation elements. “Our focus this year in India is to incorporate more localisation elements into our business. This involves our local PALLAVI UTAGI, CEO, SuperBottoms On her journey to finding suitable alternatives to disposable diapers for children, Utagi said they have now prevented six to seven crore diapers from being added to the growing waste in landfills. With 25 lakh families using up to five diapers every day for at least three years, the number of disposable diapers finding their way into landfills adds up to roughly 11,25,0000000. “Diapers sit for 500 years in a landfill. Poop inside diapers is never disposed of, which seeps into the ground and causes a huge groundwater contamination problem,” said Utagi. Telling new parents to not use disposable diapers is not a realistic option as they will choose “convenience over sustainability,” she added. SuperBottoms is designed to combine “the convenience of disposable but is sustainable”. BWFOD2023 FUTURE OF DESIGN
06 May 2023 | BW BUSINESSWORLD | 97 BWFOD2023 IMMERSIVE EXPERIENCES 1. CONCEPT: TATA Motors,GOLD 2. LIFESTYLE: Skechers | Hands Free Easy Slip Ins,BRONZE 3. VISUAL: Elephant Design | Wicked Gud, SILVER 4. VISUAL: Elephant Design | TATA Tea, BRONZE 5. TECHNOLOGY: Conveyor & Ropeway Services, SILVER 6. TECHNOLOGY: e-Gov Foundation | DIVOC,GOLD 7. TECHNOLOGY: Gaatha Design Studio | Smart 50, BRONZE 8. CRAFT: Plank Studio | Bloom, SILVER 9. PRODUCT: Euler Motors | Euler Hiload EV , SILVER 10. PRODUCT: Saif Automations Services LLP, GOLD 11. PRODUCT: Synergy environics | envirochip, SILVER 12. SPACE: Grayscale Design Studio | Brickly Affair Residence, SILVER 13. SPACE: M Moser Associates | Spotify, SILVER 14. SPACE: Morphogenesis | Zydus, GOLD 15. SPACE: DSP Design | Yatin Patel Residence, EDITOR’S CHOICE EXCLUSIVE WORKSHOP BY ANUJ SHARMA, FOUNDER, BUTTON MASALA Anuj Sharma has come up with a unique method to construct clothes without machines, tools, or stitching techniques. At the Future of Design, the audience experienced this simple joinery system, which replaces sewing from clothing or home furnishing. It is a technique that involves only buttons and rubber bands, a quick construction method, possibly the cheapest in the world, and the greenest for the environment. The Button Masala collection has been a part of the travelling exhibition Connecting Concepts by DutchDFA and also Bliss at the Taiwan Design Expo. Sharma has attended the Fashion Coterie in New York and participated in a show at the Alchemy Festival in London. He was also invited by HCL to speak on unconventional management during the World Economic Forum at Davos in Switzerland. EXCLUSIVE SESSION: DESIGN FOR WELLBEING BY THE ISHA FOUNDATION The audience was invited to immerse themselves in this special session curated by the Isha Foundation. They learnt effective meditation techniques that will allow them to design a happy life for themselves. Three decades ago, Sadhguru founded Isha Foundation, a non-profit human-service organisation which is supported by over 17 million volunteers worldwide. As part of the Conscious Planet initiative, he has also launched the world's largest people's movement – Save Soil, which has so far reached over 3.91 billion people. Yogi, Mystic and Visionary, Sadhguru is among the most influential people of our times. He is the only living Indian to have received three Presidential Awards from three different Presidents, among which is India’s highest annual civilian award, the Padma Vibhushan. BWFOD2023 AWARDS The awards recognised and felicitated the best prototype and finished designs by designers, architects, innovators, and businesses. This event catered to products from across industries that touch human lives and make them future-ready. WINNERS
98 | BW BUSINESSWORLD | 06 May 2023 BWFOD2023 CONVERSATIONS KABIR KHAN, Film Director While discussing the processes of making a movie, he explained, “There is no typical approach to making a film. I always try to do as much research as I can about the subject. In the case of ‘83 (movie), I did about two years of research. Since India does not have an archiving culture, it was really difficult to research it. I would to meet journalists and talk to people who knew about the subject. Fortunately, I found the archive material at Lord’s. Pulling off good movies back-to-back needs more than mere luck. “There will always be hurdles, it’s only a dream scenario that when you embark on a journey, there will be no hurdles in your path. The biggest hurdle I faced was with my first film; within 10 days of landing in Afghanistan, I got death threats from the Taliban,” he added. HIMANI DEHLVI, Costume Designer The script is a crucial part of a film in order to visualise the dressing of the characters. AMIT KHANNA, Design Principal, AKDA, FIIA A total of 90 per cent of the next 2.5 billion urban inhabitants will be in Africa and Asia and 500 million people will arrive in Indian cities by 2050. There's going to be a billion square feet of covered area being constructed over the next decade in India which is close to 100 million square feet a year. RAHUL VOHRA, Actor A production designer is the closest to the film director, he translates his vision into reality.
06 May 2023 | B W BUSINESSWORLD | 99 DR NIRANJAN HIRANANDANI, Co-founder and Managing Director, Hiranandani Group, and National Vice-Chairman, NAREDCO “Once you complete the basic necessities of life, then design becomes important. Good design is a combination of utility and aesthetics. By using ‘design thinking’, one can make things for dual usage. For example, in our projects, we make the bedroom such that if somebody wants to use it as their office, they can by simply rolling up the bed,” said Dr Hiranandani. NANDITA DAS, Actor and Director Das is known for making films on social issues that have the ability to touch people. “Empathy is central to one’s being, invoking empathy through our work is the ultimate goal,” she said. Talking about ‘creativity’ she spoke about her father, the renowned artist Jatin Das. Creativity is not something out of the world. You absorb it when you look around, if you are observant and care for nature, as nature is the mother of all creativity, she said. RAHUL KADRI, Principal Architect, IMK Architects Explaining the importance of government intervention in planning cities, Kadri said, "On a micro level, the government needs to promote places where they want the people to move and give them amenities along with creating the infrastructure. Putting the infrastructure in place initially is something that the government can do and bringing that land under the governance of the corporation rather than the panchayat will also be handy.”
100 | B W BUSINESSWORLD | 06 May 2023 FOCUS ON A HOLISTIC APPROACH The second edition of the Festival of Wellbeing organised recently by BW Wellbeing World in Mumbai stressed on the fact that wellbeing is not just about physical fitness, but also includes mental, emotional, and spiritual wellness By Kavi Bhandari FESTIVAL OF WELLBEING: Winners of BW Wellbeing 30 Under 30 Awards Photograph by Happy Jack B W E V E N T