Forbes India (December 2015)

Joshua navalkar







An indicator of that is its share trading at Rs 119.60, even though into the business is one of the biggest
performance over the last three the company’s price-to-earnings stories playing out in the company,
years. Speciality Restaurants went ratio remains a healthy 57.31. perhaps bigger than Oh! Calcutta’s
public in May 2012 with its shares entry into London’s culinary scene.
getting oversubscribed by 2.5 times he man who is leading the On November 7, 2015, the
of the issue size. Its shares made shake-up at Speciality is Avik company’s board approved the
a market debut at Rs 150 apiece, T Chatterjee, the 23-year-old son appointment of Avik—who has
but as of November 13, 2015, it was of the company’s founder. His entry been working in the company


DECEMBER 11, 2015 FORBES INDIA | 51

EntErprisE spEciality rEstaurants




catering degree from the Institute
of Hotel Management, Kolkata, and
in 1982 he joined the Taj Group as
a management trainee in Mumbai.
After working there for 18 months, he
quit his job to do a marketing course
in Mumbai and, in 1985, started his
own advertising agency Situations
Advertising and Marketing Services.
The agency continues to operate
with Chatterjee as its managing
director and boasts of clients such as
Emami, Yardley, Tata Steel, Birla A1
(cement), among others. He doesn’t
manage day-to-day operations, but
still participates in client pitches.
A mainland China Six years after setting up his
restaurant advertising agency, in 1991, Chatterjee
in mumbai and his wife Suchhanda (now a whole
time director and director-interior
since 2013 without any formal is a fashion designer in Pune. Besides and design at Speciality Restaurants)
designation—as the head of running her own boutique Mairah, started Only Fish in Mumbai’s Mahim
innovation and new formats. “We she also runs a small patisserie Pink area. He was the manager and she
were a Generation X company and Button, but is not involved in the the chef at the 40x40 sq ft restaurant.
now we are on our way to becoming operations of Speciality Restaurants. In 1995, the brand was rechristened
a Generation Y company,” says Avik fondly recollects that it was Oh! Calcutta, with a new restaurant
Chatterjee, who credits Avik with his mother who would tell him that at Tardeo and the rest, as they say,
disrupting his business model. one day he would have to take over is history. As of March 2015 Oh!
“I was always pushing for bars, the leadership mantle. “She would say Calcutta has nine outlets across India.
but my dad was resistant at first. He that my father has done so much and Speciality Restaurants, however,
used to tell me: ‘I’m a restaurateur worked so hard and one day I would is not Avik’s first entry into the
and I’m going to make restaurants.’ have to take it forward. But, my dad restaurant business. In March 2012,
I told him that the world is changing never really sat me down to tell me with a funding of Rs 25 lakh from his
and people are also changing,” says that this is what you need to do. His father, Avik started an online midnight
Avik, who likes experimenting with advice was: You choose what you food delivery company Madbites.
global cuisines and has developed a want to do, it’s your life,” recalls Avik. “From 12 am to 6 am we would
flair for Japanese food. And thus the The foodie DNA runs in the deliver food. The menu included
bar brand Hoppipola, catering to a Chatterjee family, right from Avik’s hot dogs, sandwiches, burgers,
young audience, was born in 2013 in grandparents. “My father was one salads, and a few Indian items,” says
the country’s pub capital of Bengaluru. of the most hospitable people. He Avik, who ran the business from
The name Hoppipola, though, couldn’t cook very well, but he could a centralised kitchen in Powai.
was Anjan’s choice and it means sit with you and tell you what to To begin with, the startup dished
‘jumping into puddles’ in Icelandic. have with what. My mother dished out 50 orders per day, but by 2014
Avik’s initiation into the food out the best Bengali mutton curry, it folded up. “It was a midnight
business happened as a toddler when, which I miss even today,” says business, but we were paying rentals
he says, “my mom would carry me on Chatterjee, who spent close to 18 for the entire day… We couldn’t
her back on a baby carrier, while she years in Delhi, where his father was recover costs,” he explains.
would cook”. “She always reminds a research scientist at the Indian His focus now is to identify and
me of how we started and where we Council of Agricultural Research. grow scalable restaurant formats
are now and that I should always be In the late ’70s, his father that would insulate the company
grateful for what we have,” says Avik, was transferred to Odisha from from external headwinds. And the
born and brought up in Mumbai. where Chatterjee completed an diversification from fine-dining
His sister (Harshita Chatterjee undergraduate degree in physiology. outlets to casual all-day ones is
Deshpande), who is five years older, From there, he went to earn his the key driver of this change.



52 | FORBES INDIA DECEMBER 11, 2015

our to five years ago, there clocking a revenue growth of 14 like Mumbai that has higher rental
were not too many players percent and a decline in profit of 50 costs, the Hoppipola outlet in Khar
F in the casual all-day dining percent over the previous fiscal. broke even in five months,” says Avik.
space except for quick service Besides, other than the flagship But, he is also looking beyond
restaurant (QSR) chains such as Mainland China brand, Speciality Hoppipola. “We are working on newer
McDonald’s and KFC. Today, many Restaurants has not been able to concepts such as micro-breweries,
restaurant chains are targeting this scale its other brand formats. As per roof-top bars, and an Asian gastro
space with multiple formats (bistros, the company’s latest annual report, pub,” he says. While he doesn’t
bars, gastro pubs, etc) as diners are of the 115 restaurants operational in divulge details, he adds that over the
yearning for varied experiences. India, Mainland China accounts for next five years the bar brands would
“Restaurant brands that are housed 53, Sweet Bengal (a confectionery account for about 30 percent of the
in malls have already cashed in on chain only in Mumbai) has 18 outlets company’s revenue, if not more.
this trend. I feel that he [Chatterjee] and Sigree, which serves cuisine Kanwaljit Singh, whose proprietary
wants to target the middle-class from North and Western India, has family office Fireside Ventures has
audience who are more in number, but 16 restaurants; Oh! Calcutta has invested in the food and beverage
their spending potential is such that nine outlets, as does Hoppipola. The sector, believes Speciality Restaurants
the average revenue per customer is remaining brands in the company’s is on the right path. “I feel that going
lower,” says Bengaluru-based chef and portfolio of 15 are spread out in into all-day dining, causal dining,
restaurant consultant Nimish Bhatia. pockets across various metros. and QSR formats would offer a more
In an all-day dining format, a repeatable and expandable business.”
restaurant leverages itself over But Singh also thinks that a
the whole day unlike a fine-dining “FINE-DINING “strong initiative” towards a delivery
restaurant, where business is RESTAURANTS business model is critical, as some
conducted during fixed lunch of the newer online food delivery
and dinner hours. “It’s all about ARE FACING models are proving. “The economic
revenue optimisation per cover HIGH INPUT models are still not very clear. But, if
[seat],” says Chatterjee. Besides, you have a physical presence across
in the restaurant arena where the COSTS AND PRICE multiple locations and if you could
mortality rate is a high 50 percent, RESISTANCE [FROM add a delivery model then you can
an all-day dining format helps a CUSTOMERS].” sweat that asset even better,” he says.
restaurateur overcome pricing It’s an idea the Chatterjees aren’t
challenges related to fixed costs. ruling out. The online food delivery
Taposh Chakraborty, founder, space is on their minds, but they aren’t
Boutique Hospitality Consultants, But with the focus now shifting to talking about their plans as yet. “The
says fine-dining restaurants are all-day dining formats, scale is what industry is seeing disruptions from the
facing high input costs on one father and son are talking about. For likes of mobile-based food apps and
hand, and price resistance (from Zoodles, which competes in the QSR online food portals. I think it is very
consumers) on the other. The high segment with the likes of McDonald’s, important for all of us to be alert and
input costs, he says, are attributed KFC and Domino’s Pizza, Anjan nimble-footed so that we are always
to real estate costs accounting for believes 100 restaurants are easily ready for the next big leap,” says
22 to 25 percent of revenue, raw achievable. “We will be rolling out Chatterjee. That said, Mainland China
material inflation being close to 20 six additional Zoodles restaurants in and Asia Kitchen by Mainland China
percent, and manpower costs rising Mumbai [from one currently] over will continue to be the flagship brands
by about 12 percent year-on-year. the next six months. The growth of of Speciality Restaurants, at least for
“Their [Speciality Restaurants’] Zoodles will be 10 times faster than now. And that shows in the promoters’
results are a reflection of high input that of Mainland China,” he says. vision to revamp the brand. “In any
costs and disproportionately lower Likewise, in the next two fiscals, restaurant business, the hardest thing
pricing demand. Therefore, in the he is planning 35 to 40 restaurants is to keep up the consistency of food.
Indian context, their diversification for Hoppipola, where an average Of course we can’t say that we have
into all-day dining formats is well bill value is Rs 550 to Rs 600 per always maintained a 100 percent
justified,” says Chakraborty. For customer. “In terms of revenue, consistency level, but, wherever we
FY2015, Speciality Restaurants Hoppipola has given more than what can, our levels are higher than any
reported revenues of Rs 299.83 we expected. The break-even time other restaurant brand or chain in
crore and a profit of Rs 9.45 crore, period is very short. Even in a market the market today,” says Avik.



DECEMBER 11, 2015 FORBES INDIA | 53

CROSS BORDER


EnERgy REvOlutiOn




“We’re not in the
sustainability business,
we’re in real estate,”
says Wal-mart’s green
maven David ozment


































MatthEw MahOn FOR FORBES










Everyday Renewable Energy




Wal-Mart, long the bogeyman of the left, is making one of its long-held
dreams a reality: Affordable green energy deployed on an industrial scale


By christopher helman
he roof of the Wal-Mart in stopped by here to give a speech store. You replaced some traditional
Mountain View, California, about his energy plan. Standing before lightbulbs with LEDs. You made
is covered with solar shelves filled with discount lightbulbs, refrigerator cases more efficient.
T panels. Depending on the Obama held up Wal-Mart as an ex- And you even put in a charging
time of day, they provide 15 percent emplar of corporate responsibility. station for electric vehicles,” said
of the power needed to run the store. “A few years ago you decided to Obama. “More and more companies
Last year, US President Barack Obama put solar panels on the roof of the like Wal-Mart are realising that


54 | FORBES INDIA DECEMBER 11, 2015

wasting less energy isn’t just good on ourselves,” says David Ozment, obvious,” says Ozment, a 66-year-
for the planet, it’s good for business. Wal-Mart’s energy chief, “everything old career electricity executive who
It’s good for the bottomline.” we do has to make business sense.” If has been at Wal-Mart since 2003.
And it’s great PR for a company Ozment were worried about making “Why put up our own capital?”
that has been lambasted for a range the business case for green energy, At a dozen California locations,
of corporate sins, from low wages he could just follow the lead of other SolarCity is even sweetening the
and deplorable working conditions retailers like Kohl’s and Starbucks, setup—installing backup batteries
to accusations of predatory pricing which brag of running their developed by Tesla Motors. They’ll
and monopolistic behaviour (it denies operations 70 percent-plus carbon- help Wal-Mart save even more
these things). But if Wal-Mart’s energy free. But they do so by buying carbon by storing up solar power from
initiative sometimes smells a little credits or “offsets” to balance out the sunniest parts of the day, then
like greenwashing, the Bentonville, their greenhouse-gas emissions. Were dribbling it out in the late afternoon
Arkansas-based giant (2014 sales: Wal-Mart to follow this approach, when demand-driven electricity
$480 billion) is far too savvy to lose it could offset its 20-million-tonnes- prices are highest. Wal-Mart
money on it. Rather, the retailer has per-year carbon dioxide footprint has a similar setup with Bloom
off-loaded the capital investment— for about $200 million. Ozment Energy, whose innovative fuel cells
and all the risk—onto partners, like dismisses that as an accounting called Bloom boxes use a cleaner
SolarCity, that minimise its exposure gimmick. “Buying credits would be electrochemical process to transform
by taking full advantage of the federal natural gas into electricity. Today,
government’s generous subsidies 42 Wal-Marts in California have
for investing in alternative energy. Bloom boxes. They save Wal-Mart 20
Wal-Mart has installed 105 WAL-MART HAS percent compared with grid power
megawatts of solar panels—enough to INSTALLED 105 MW and emit around 35 percent less
power about 20,000 houses—on the carbon than large-scale power plants.
roofs of 327 stores and distribution OF SOLAR PANELS Constellation, a division of power-
centres (about six percent of all ON THE ROOFS OF generation giant Exelon, is putting
their locations). That’s enough to 327 STORES AND up an estimated $200 million to
make Wal-Mart the single biggest install 20 megawatts of Bloom boxes,
commercial solar generator in the DISTRIBUTION enough for roughly a quarter of the
country. And it intends to double CENTRES power needed at around 80 Wal-Mart
its number of arrays by 2020. stores. But this kind of financing
It’s all part of a goal that former arrangement won’t work everywhere.
CEO Lee Scott set in 2005 for Wal- That’s because America’s green
Mart to be powered entirely with an added cost item rather than what energy revolution has been built on a
renewable energy. Wal-Mart uses we do, which is lowering costs,” he foundation of subsidies. There’s the
an incredible amount of electricity. says. Instead, Wal-Mart has reduced federal investment tax credit, which
Worldwide power demand is roughly its energy costs per square foot of allows investors to deduct 30 percent
29,000 gigawatt-hours per year. retail floor space by nine percent. of the cost of building these systems.
The US probably accounts for about Wal-Mart has cut costs by doing And in California, there are hundreds
half of that—enough to power about what it does best—using its heft to of millions of taxpayer dollars
1.5 million average homes. Forbes convince its suppliers to risk their available in green rebates and grants.
estimates Wal-Mart’s US electric own capital to get Wal-Mart what The bad news for Wal-Mart and
bill to be around $1 billion per year. it wants. It gives access to its roof the entire green energy industry
It’s not at all clear it’ll meet that space to SolarCity or other installers, is that the federal green energy
goal, even though subsequent CEOs which pay to put up the panels tax credit is set to expire in 2017.
have reiterated it year after year. (at a cost of about $1.2 million for Ozment isn’t worried. After all,
Wal-Mart now gets 26 percent of its the average array). SolarCity then Wal-Mart is accustomed to putting
worldwide power from green sources, sells the power generated to Wal- the hard squeeze on its suppliers.
including wind, solar, fuel cells and Mart under a long-term deal—at a “It’s an opportunity for utilities
hydropower. That’s barely better than price often cheaper than what the to rethink their business model,”
renewables’ overall 13 percent share local electric utility would charge. he says. “There’s no reason there
of US generation. “To make it harder “The value proposition is really can’t be an adjustment.”


DECEMBER 11, 2015 FORBES INDIA | 55

real issue


aviation policy


Onwards



and Upwards




The government’s draft civil aviation policy plans
to provide concessions to airlines to fuel growth,
and make flying affordable for the masses


By Anshul DhAmijA

he Tata SIA Airlines Ltd’s Tata SIA Airlines Limited, agrees: “It
research report on the is a fairly comprehensive approach
contribution of aviation that will help unleash the potential
T to the Indian economy of the aviation sector in India.”
makes lofty projections about the For the first time, the policy
sector: It believes civil aviation in talks of concessions for airlines
India has the potential to create an to fuel growth. Some of the fiscal
economic value of $250 billion and concessions include service tax
contribute to around 5 percent of the and customs duty exemptions for
country’s GDP over the next 10 years. various sub-sectors of the aviation
The report also foresees a three-fold industry, and exemption from paying
rise in domestic air traffic by 2025. various airport-related charges.
There is a yawning gap between There is also talk of providing free
the projections and the ground land for the development of airports.
realities (the sector is valued at In fact, the government is looking at
$16 billion as of FY2015), but if building “no-frill” or low-cost airports,
the latest National Civil Aviation which could give a fillip to air travel
Policy (NCAP) draft is anything to in smaller towns. (Currently around
go by, the government seems to be 75 out of 476 airstrips/airports in
pulling its socks up to bridge it. India have scheduled operations.)
The draft policy, which was “This industry has been known to be
recently placed in the public like a cash cow for the government,
domain to invite feedback from the so it’s good to see concessions being
stakeholders, lays emphasis on 16 talked about,” adds Bhargava. clearly spelling out its objective:
critical areas of the civil aviation The draft also has the government To make flying affordable for the
industry ranging from safety to masses. “For example, if every
regional connectivity, bilateral traffic Indian in the middle-class income
rights, maintenance, repair and THE DRAFT bracket takes just one flight per
overhaul operations, fiscal support and annum, it would result in a sale of
air navigation services, among others. AVIATION POLICY 300 million tickets, a big jump from
Says Jitender Bhargava, former PROPOSES TO CAP the 70 million domestic tickets sold
executive director of state-run Air in 2014-15. This will be possible if the
India, “It is the best draft policy in FARES AT Rs 2,500 airfare, especially on regional routes,
the last 20 years. It is streets ahead FOR A ONE-HOUR is brought down. The reduction
of others [six other civil aviation FLIGHT ON SELECT in costs will require concessions
policies drafted by past governments], by the stakeholders, primarily the
touching all aspects of aviation.” REGIONAL ROUTES central and state governments and
Phee Teik Yeoh, CEO, Vistara— airports,” reads the draft NCAP 2015.


56 | FORBES INDIA DECEMBER 11, 2015

we will save a lot of money,” he says.
Greenfield airports don’t allow
airlines to undertake their own ground
handling operations, but insist that
they avail the services of third-party
operators who are concessionaires
at the airport. “Over and above our
ground handling charges, we stand
to lose 14 percent as service tax and
another 13 percent as royalty payable
to the airport operator,” adds Thomas,
whose ground handling services
company Decor Aviation operates
across 13 airports in south India.
Another sore point with newer
airlines is the ambiguity over the 5/20
rule, which allows Indian carriers to fly
abroad only after completing five years
of domestic operations and having a
fleet of 20 aircraft. The draft NCPA
2015 has proposed three options:
Abolish the rule; continue with it; or
introduce the concept of Domestic
Flying Credits based on which Indian
careers will be allowed to fly overseas.
“It was surprising to see the lack
of clarity or progress on the 5/20
rule. This is one significant, archaic
and regressive policy that would
have unbridled the entire sector and
shown optimism not only to current
incumbents but also to potential future
investors in the sector,” says Mittu
The national Civil Aviation
Policy draft lays emphasis Chandilya, CEO & MD, AirAsia India.
on 16 critical areas of the The Tata-SIA research report notes
civil aviation industry
that there are no “global parallels
to this rule” and goes on to term the
The first vision statement in the managing director of Air Pegasus, regulation as being “discriminatory”
draft NCAP 2015 speaks of creating which operates a fleet of turboprop to Indian airlines. It highlights that
an ecosystem that will enable 30 aircraft in south India. “When you while foreign carriers are allowed to
crore domestic tickets to be sold operate at costly airports such as the operate in Indian skies, Indian airlines
by 2022 and 50 crore by 2027, Kempegowda International Airport, cannot enjoy reciprocal rights.
from the current seven crore. Bengaluru, out of that Rs 2,500 we “The 5/20 rule should be abolished
One of the ideas floated by the may have to spend Rs 1,800 on paying unconditionally and immediately to
government is to cap fares at Rs 2,500 various fees to the airport operator.” benefit India as its removal will spur
(all-inclusive) per passenger for a That apart, Thomas is upbeat about investment, tourism and employment.
one-hour flight on select regional certain other provisions of the draft It will signal a liberal market friendly
routes. While this is a huge leg- policy. “The policy has recommended regime to Indian and global investors,”
up for passengers in Tier-II and that airlines can carry out their own says Yeoh of Vistara. “It is time that
Tier-III towns, regional airlines ground handling operations and need the Indian aviation sector is allowed
aren’t quite excited. “We believe it not be dependent on third-party to reach its full potential by getting Getty imaGes
isn’t viable,” says Shyson Thomas, operators. This will benefit airlines as freedom from restrictive rules.”


DECEMBER 11, 2015 FORBES INDIA | 57

interview


Ashok GAjApAthi rAju


‘We Will Move on


The 5/20 Rule by End-2015’




The draft civil aviation policy has the potential to revolutionise
Indian skies, says Union Aviation Minister Ashok Gajapathi Raju


By Shutapa paul

Q How will the new aviation policy called on and the airlines will
change the sector in India? participate if they want to.
Aviation has moved, in the Indian
sense, from an elitist activity to a Q How long before the
general one. The composition of draft becomes a policy?
travellers has changed. Since we are It took a long time [to be completed].
a big country, the connectivity should [But] the type of discussions that we
be better. There has been consistent have had with all stakeholders has
demand [to connect smaller towns] never been done before. We need to
and past performances probably have it going before the end of 2015,
do not reflect a correct thinking in so that we can start by March 2016.
choosing locations. It has resulted
in 30-31 airports being inactive. We Q The draft policy has called for
wanted to see how many of these can a review of the 5/20 rule (which
become performing assets, where the mandates that a domestic airline
impediments are, where we would ministers and we solicit their advice. have a fleet of 20 aircraft and flying
like to put in new airports while A lot of interaction [with the states] experience of five years before
not making the same mistakes so has gone into it and that is why our starting international operations).
that airports can contribute to the confidence level is high right now. When will it be scrapped?
economy, and also gain from it. We This is a regulation that is not there
are going [ahead] keeping passengers Q But airlines are not very in any country. To me, it [the 5/20
in mind. There has to be definiteness happy about the Rs 2,500 rule] pulls down Indian players.
[to the policy], say 3-5 years, so that per flying hour scheme... It is a regulation for regulation’s
economic activity can begin as well. What is proposed is a cess of two sake. It is a decision that has come
percent on certain vibrant routes. from the Cabinet. So we need to
Q Do you think if this draft comes This raises certain monies that take it back to the Cabinet.
into effect it will revolutionise will cross-subsidise certain routes By the end of 2015, we should
the aviation sector? that do not have connectivity. be getting everything going.
There’s potential... this kind of activity Those states that want to opt for The Prime Minister gave us two
will help us harness that potential. the scheme can opt for it. The sittings and gave his inputs.
proposal is that the government
Q Are states an impediment to of India will give up its service tax Q Only 75 of the 470-odd airstrips/
implementing this policy smoothly? and excise duty on ATF in those airports in India are operational.
I don’t see any impediment there. The [unviable] areas. State government How do you plan to upgrade/
idea of an hour-long flight at Rs 2,500 reduces VAT on ATF to 1 percent. operationalise airstrips/airports?
has excited some. If it has to work, The Airports Authority of These strips are unutilised assets.
Amit vermA there has to be a certain amount of not charge for landing. [but] some can be salvaged. But
India for those three years will
Few of the strips may be far-gone
sacrifice from all stakeholders, state
we have to start that exercise. We
A transparent procedure has
governments and the government of
can make those strips active.
India… I have written to all the chief
to be followed, where bids are
58 | FORBES INDIA DECEMBER 11, 2015



CROSS BORDER


thE wOnDERful COmpany — RESniCkS




















































































60 | FORBES INDIA DECEMBER 11, 2015

America’s



Nuttiest



Power



Couple












Fresh off sapping the water from a Pacific
island and flogging pomegranate juice with
questionable health claims, Stewart and
Lynda Resnick, the billionaire couple behind
Fiji Water and POM Wonderful, are profiting
off pistachios and almonds with the same
combination of marketing genius and
opportunistic water grabs amid California’s
worst drought on record




By Chloe Sorvino

















DECEMBER 11, 2015 FORBES INDIA | 61

CROSS BORDER thE wOnDERful COmpany — RESniCkS







































it’s a wonderful life: The resnicks’ fields (in green) and those of their neighbours near lost hills, California. image courtesy: Google earth
or over four years a record- ever before, about $3 billion. of California citrus, flower-delivery
breaking drought has Their oasis has plenty of water, service Teleflora, POM Wonderful
scorched central California the result of relentless opportunism pomegranate juice and Fiji Water,
F with Old Testament cruelty. that has given their orchards access which collectively brought in $3.8
Drive west of Bakersfield into the to more water than nearly any other billion in sales last year. By their own
heart of the San Joaquin Valley and farm during the worst drought on estimates, almost half of American
soon you will be engulfed by sloping record in California’s history. The households buy their products.
brown hills broken up by dusty, Resnicks use at least 120 billion Not everyone is eager to fill
slate-coloured fields. Desolate little gallons a year, two-thirds on nuts, their pantry with a Resnick brand.
towns off the highway dot the parched enough to supply San Francisco’s Agriculture’s king and queen have a
landscape. Lost Hills (population 852,000 residents for a decade. They history of commandeering natural
2,412) consists largely of a tamale own a majority stake in the Kern resources in pursuit of profit, and
shack, a mostly empty James Dean- Water Bank, one of California’s their actions in Fiji—where they
themed shop, a dilapidated tyre largest underground water storage annually fill millions of plastic
store and a rundown pool hall. facilities, which they got fairly but bottles with water and then ship
Yet, there is an Eden. It’s a little sagely from the government 20 years them thousands of miles across
to the west of Lost Hills, off Route ago. It is capable of storing 500 billion the world while residents haven’t
33. Here there are rows upon rows gallons of water. They have also spent always had access to potable water
of green—some 70,000 lush acres of at least $35 million in recent years themselves—have already infuriated
water-hungry pistachio and almond buying up more water from nearby environmentalists. Now they are
trees. Come at the right time of the districts to replenish their supplies. being vilified in California for their
The Resnicks, who live in a
year, and you’ll see the almond trees nine-bedroom mansion in Beverly water use in the ongoing drought.
fEDERiCO winER fOR fORBES a blanket of light pink petals. This Hills and fly into the valley about asked to take cuts for the one percent:
“Ninety-nine percent of us are being
blossoming, covering the valley in
Stewart Resnick,” says Barbara
once or twice a month, are crafty
land belongs to the billionaire Res-
Barrigan-Parrilla, executive director
dealmakers and even finer marketers.
nicks, Stewart, 77, and Lynda, 72.
of Restore the Delta, a Stockton,
In addition to the pistachios and
It’s the most valuable part of their
California-based non-profit working
almonds, their company, renamed
$4.3 billion fortune. Those crops
and the land are worth more than
62 | FORBES INDIA DECEMBER 11, 2015 Wonderful in June, owns 32,000 acres to protect fisheries and farms in the

Sacramento-San Joaquin Delta. “99% OF US ARE driveway. A former child actress who
Several anti-Res nick forces allege performed on a weekly variety show,
the couple’s immense water supply is BEING ASKED TO she dropped out of Los Angeles City
ill gotten. The Kern Water Bank and TAKE CUTS FOR College and founded an advertising
Westside Mutual Water, a company THE 1%: STEWART agency at 19; she married that year and
set up to control the Resnicks’ water, had three children before divorcing
have been sued three times since 2010. RESNICK.” just as the business started to struggle.
The water lawsuits—one reached More troubles came when she began
an interim settlement, one led to dating a man whose friend asked if
environmental review and one is on he could use her copier at night and
appeal—have alleged that the Resnicks one almond or one pistachio.) on weekends. She denies realising
had no ownership right to the water “When I first came to California that his friend Daniel Ellsberg
bank and that the bank is dipping 60 years ago, I should have bought was printing what would later be
into their neighbours’ water supply. property on Rodeo Drive. Now I known as the Pentagon Papers,
The Res nicks deny the allegations would like to go back and buy the but she eventually got entangled in
and say they are legally and morally property on Rodeo Drive for the legal proceedings with the federal
in the right. “I don’t even know what same price it was 60 years ago,” government. (In the end, she was
these are about, because my view says Resnick. “People that had subpoenaed but never charged.)
is we’re going to win,” says Stewart opportunities to buy into the water The Resnicks met in 1970 when
Resnick. “We’ve been sued over the bank—just like we did—didn’t do it. Stewart came looking for marketing
same thing over and over and continue Now they think it’s worthwhile.” help for the janitorial business.
to win. If I had a son who, god forbid, He led her on, and after several
should go to law school, I would he Resnicks miss few meetings, she bluntly asked whether
say go into water law. You get one opportunities. The son of she was going to get the account or
lawsuit that lasts 20 years.” He says T a New Jersey bar owner not. Also divorced with children,
that he simply invested in the storage who drank and gambled away his he told her that he wanted to start a
facility at an opportune time and also money, Stewart transferred in 1955 relationship instead. They married
cites the $25 million the company from Rutgers to UCLA. To make and in 1979, bought Teleflora, a
has spent on irrigation systems that ends meet, he started a janitorial failing flower-delivery service.
reduce the use of water by dripping it business while in college. By the Theirs was a symbiotic partnership
directly on the roots rather than using time he graduated, he had ten from the outset: He was level-
sprinklers to flood the fields. Even employees. He continued to operate headed and finance-minded; she
with these water-saving measures, he the business while in law school and was more dramatic with notable
says, Wonderful expects production eventually employed 100 people. marketing flair. The combination
of the superthirsty almond trees to By contrast, Lynda grew up in has proved unstoppable. Stewart
drop by 20 percent and pistachios Beverly Hills, the daughter of a bought his first parcel of farmland
to drop by 60 percent this year. (It wealthy Hollywood film producer, in California’s Central Valley in
takes one gallon to produce just with two Rolls-Royces in her 1978 as a hedge against inflation.
Lynda then took the fruits and nuts
of their labour and marketed the
heck out of them. “It takes a nut
to sell a nut,” she would later say.
Lynda branded mandarins as Cuties
and then, after a falling-out with a
partner, rebranded them as Halos.
She marketed pomegranate juice as
POM Wonderful, a magical elixir
filled with antioxidants. (Stewart,
who survived prostate cancer, drinks
eight ounces of POM Wonderful and
takes a pomegranate pill every day
and says that he hasn’t had a cold in
a decade. At 77, he cycled about 40
A 29-year tradition: Kooky Christmas kernels à la resnicks miles a day across Italy during a nine-


DECEMBER 11, 2015 FORBES INDIA | 63

CROSS BORDER thE wOnDERful COmpany — RESniCkS




day bike trip this summer.) In 2009, Pay It Forward
came the “Get Crackin’” ad campaign
marketing their pistachios and, in homes have at least one family
member working at the Wonderful
2013, 15-second clips hit the Super Co, the Resnicks have built sidewalks
Bowl, with recent spots featuring and installed solar-powered lights;
late-night host Stephen Colbert. (“I upgraded the local park with two
can’t make anyone cry in 15 seconds, soccer fields, a basketball court and
but we can make them laugh,” says a community centre; built a health
care clinic for employees (many of
Lynda, adding that 30-second ads in whom are likely to develop diabetes);
the Super Bowl were too expensive.) and even funded the town’s only
Undoubtedly aided by Stewart’s restaurant, Gabby’s, which opened
law degree, the Resnicks have also in September. Across the greater
proven to be adept at fighting legal Perhaps scarred by the bad publicity Central Valley region, the company
has more than tripled its education
they received in Fiji, the Resnicks
battles. Their mail-order collectibles are being much more proactive in funding since 2012. This year, it is
firm, Franklin Mint, was sued in 1998 the Central Valley, a historically spending more than $10 million,
by the estate and charitable foundation impoverished area where the vast helping support two preschools and a
of Princess Diana, which said the majority of the residents are Hispanic charter school that is due to get a new
firm did not have the right to use and farm workers. In Lost Hills, a gritty $25 million campus courtesy of the
Resnicks by the end of next summer.
town of 2,412 where half of the
profit from her image on keepsakes;
Franklin Mint filed a countersuit in
November 2002, alleging it was the spending millions on research to show safe drinking water by investing
victim of an ugly smear campaign. In the benefits of eating pomegranates, $600,000 in water infrastructure for
2011, five years after they sold Franklin and expects to release positive 77,600 people. They also say they
Mint, a settlement was reached. The results based on human trials. donated $5 million to rainforest
Resnicks were paid $50 million, all Regarding their water business conservation and other initiatives.
of which they donated to charity. in Fiji, they have been vilified as Fijian military dictators aside, the
The Federal Trade Commission greedy capitalists for hogging the couple knows the value of cultivating
(FTC) filed a complaint in 2010 archipelago’s precious water supply. powerful friends, whether at their
that the Resnicks’ POM Wonderful They bought Fiji Water in 2005 and Los Angeles mansion or their Arts
had used deceptive advertising started pumping out and bottling & Crafts lodge in Aspen, where they
when marketing the antioxidant- millions of pricey water bottles from spend several months a year. In
rich drink as being able to treat, a pristine aquifer. Meanwhile, island 2000, when the Democratic National
prevent or reduce the risk of natives didn’t always have water to Convention was held in Los Angeles,
heart disease, prostate cancer and drink themselves, due to crumbling the Resnicks hosted a cocktail
erectile dysfunction. In 2012, a and insufficient infrastructure. The party honouring Senator Dianne
federal judge agreed that some of Resnicks’ once friendly relations with Feinstein at their sprawling estate
the ads were misleading. In 2013, the volatile Fijian military junta turned in Beverly Hills, attended by then
FTC commissioners denied the sour in 2010, when the government California governor Gray Davis and
Resnicks’ appeal. In October 2015, announced a tax hike on the company, former US President Jimmy Carter.
the Resnicks asked the Supreme which leases the land and is one Other guests through the years have
Court to take the case. of the island’s biggest employers. included: Arianna Huffington, junk
bond billionaire Michael Milken,
The Supreme Court sided with
The Res nicks shut down operations
lawREnCE k. hO/lOS angElES timES / gEtty imagES Coca-Cola, which sold pomegranate each litre of water. Today, Fiji Water odd Supreme Court justice. “It’s a
Tesla CEO Elon Musk, Yahoo News
the Res nicks in a separate case. In
temporarily before agreeing to pay the
anchor Katie Couric and even the
that instance, POM Wonderful sued
reported 45 percent tax increase on
blueberry juice under the Minute
who’s who of politics and media
operates three bottling production
and celebrity. It’s almost like old-
Maid brand, alleging that it shouldn’t
lines, up from one a decade ago, and
be able to market drinks with just
fashioned salons, where [Lynda]
last year shipped more than 250
0.3 percent of actual pomegranate
can bring people together,” a former
million bottles worldwide, an eightfold
executive and regular guest says.
increase since buying the business.
juice. In 2014, the court ruled that

It is the bestselling imported water
Wonderful could proceed with its
case. Coca-Cola has denied its labels
brand in the US. The Resnicks, who
t’s in the Central Valley where
were misleading. That trial is slated
for next year. Meanwhile, POM is
they are working to help locals access I Stewart first bought land in the
64 | FORBES INDIA DECEMBER 11, 2015 visited the island this summer, say they now have their biggest fight.

area as an investment in the 1970s. three other allegations—including that is being tracked by Nasa. The
Over the next decade, he picked one challenging the agreement’s court ordered the state last year to
up tens of thousands more acres. constitutionality. The case is now conduct an environmental review
When a six-year drought started in being tried in Sacramento’s Third by mid-2016 that could result in
1987 and cost local farmers $800 District Court of Appeal. “We’re new limits placed on pumping.
million, he had much less skin in warriors out here trying to make In the second suit brought on
the game. Still he took note, quickly sure that a bunch of fat cats don’t by those two water districts and
realising that the contracts he had suck this state dry,” says Adam Keats, two others, Kern Water Bank
with the state, which delivered water chief lawyer for the opposition, who leaders agreed under a settlement
from the California Aqueduct—a adds that the Resnicks’ lawyers have to assess damages and, if necessary,
444-mile-long channel flowing with “a level of rabidness in protecting compensate the affected landowners.
runoff from the snow-capped Sierra their fortunes. They are fiercely The Resnicks are already looking
Nevada mountains—were vulnerable defending that golden goose”. to secure additional water sources.
when water was scarce and the state Neighbouring water districts to The couple could score big if a $15
couldn’t meet everyone’s needs. Kern Water Bank filed two complaints billion water project championed by
In what some critics have called in 2010 when farmers’ wells began Governor Jerry Brown is officially
secret meetings, some of his most drying up. In one, Rosedale-Rio approved in the next few years.
trusted advisors met with leaders from Bravo and Buena Vista alleged that At least two Wonderful farming
southern California water districts the water bank was pumping at executives are involved in a grassroots
and state water officials, helping “dangerous and unacceptable levels”. push for the project, now called
broker a sweetheart deal in 1994. Two Water levels dropped further as the California WaterFix, which would
decades later, it still gives the Resnicks drought raged on. An analysis of carry water from the Sacramento
nearly unrivalled access to water. three decades of water-level records River Delta through two 30-mile-long
Wonderful denies the meetings were obtained by Forbes shows that the tunnels to San Joaquin Valley farms.
done clandestinely, alleging that those Kern Water Bank members have There’s another cushion they’ve
who say so have an “axe to grind”. consistently pumped far more than been building for decades. They have
The upshot of that meeting: California their neighbours. Because California invested $100 million in technology
handed over public land and an was the last state in the West to initiatives designed to help manage
underground aquifer (former farmland start placing limits on groundwater water shortages and high utility costs;
and oilfields that had the potential pumping, with legislation passed their water expenses, which tripled
to store about 500 billion gallons of just last year and taking effect only in the past 15 years, account for 40
water) to five public water districts by 2020, it was legal, if not ethical. percent of their agricultural costs.
and the Resnicks’ Westside Mutual There was also an allegation that the “There’s no bigger incentive. We have
Water Co. The new owners agreed pumping may have caused land to sink a very aggressive R&D programme,”
to forfeit state water contracts. They in the Central Valley, a phenomenon Stewart says. In addition to drip
then installed a six-mile-long canal irrigation systems now used on all
and 85 wells at a cost of $50 million. their farms, they have spent $22
Forbes estimates that the Resnicks’ million on solar energy networks and
57 percent stake in the storage facility $41 million on fuel-cell research and
is worth at least $250 million. implementation to power their plants
But their ownership has been and facilities more cost effectively. A
under siege, challenged in court nearly new research project is also about to
continuously for the past two decades. roll out “supertrees” cultivated to yield
In 2010, the Center for Biological more with a regular tree’s amount of
Diversity, a nationwide environmental water, which could even be sold to
non-profit group based in Arizona, and rival farmers. Whatever the future
several other groups sued the bank brings, it would probably be a mistake
and its members, including Westside to bet against the power couple.
and the Res nicks’ parent company. A “You have to be an optimist
Sacramento County Superior Court to be a farmer. Fortunately,
judge ruled last year that the state with our management team, we
gave up the water resources without have some optimists and some
properly analysing the potential An FTC commissioner rules your ads are pessimists,” Stewart says. And, of nEwSCOm
environmental impacts but dismissed misleading? Game on: Quote him! course, some opportunists.



DECEMBER 11, 2015 FORBES INDIA | 65

My Learnings


gunjan srivastava, Bosch sieMens


German Engineering



Primed for India




How a dual brand strategy helped Bosch Siemens make
serious inroads into India’s washing machine market



osch Siemens Home There were also some specific needs factory had high drying efficiency.
Appliances (BSH) regarding wash cycles for dhotis Our next challenge was to
entered India in 2010 as a and saris, which we incorporated. decide what product segment to
B wholly-owned subsidiary On the quantitative side, through enter. When it comes to front load
of the German home appliances the use of scorecards, we studied washing machines, the market is
manufacturer BSH Hausgeräte the performance of machines. dominated by 6 kg machines. But
GmBH. Prior to that, Bosch Siemens All this became an input for the our market research showed that in
products were sold through a product we designed for India. India, a 7 kg product would be more
distributor. As part of our company’s We knew from the beginning that efficient as Indians tend to have large
dual-brand strategy, we decided to our imported products would be joint families. The average family
position Siemens as a premium brand good for the urban consumer, but if size is 4-5 members and in a 7 kg
while Bosch would be the more we wanted to tap into the top 200 drum, if you load 6 kg of clothes,
affordable one. We launched Bosch cities in India, we would need to the washing efficiency is better.
washing machines in India in 2011, make changes to our foreign models. Prior to our launch, the 6 kg
a year after setting up our offices I’ll share two examples. Voltage machines had a market share of
in the country. At that time, all our fluctuations are common in India and 85 percent while the 7 kg version
machines were imported. After some we could have sold the product with accounted for around 15 percent.
initial success, we decided by late 2011 an external stabiliser, but we realised Still, we stood by our research and
that we would manufacture washing that the consumer wouldn’t accept entered the market with a 7 kg, front
machines in India and preparations this. So we incorporated an internal load product. Since the launch in
for that began at our plant in Chennai. stabiliser (this is a modification that September 2014, the market size for
Clearly, if we were going to be a big most multinational home appliance 7 kg machines has risen to 25 percent,
player, we could not rely on imported companies have made for the Indian according to a research by Gfk
machines designed for other markets. market). Second, clothes don’t Nielsen. Everyone had a 7 kg product,
Between 2011 and 2013, we dry easily in the monsoon. That is but no one wanted to move in that
sold our imported range and also when consumers feel the need for direction. When the consumer went
learnt a fair bit about what Indian a powerful dryer. We ensured the to shop, he saw our 7 kg product and
consumers wanted. Our research was machine we built in our Chennai took to it as it was our best one.
both quantitative and qualitative. While the 7 kg machine is our
Washing machines were placed in mainstay, we also have a 6 kg product
households and customer behaviour BOSCH SIEMENS that is imported. That was done
was studied. People wanted shorter mainly to grant us entry into small-
wash cycles, faster drying, lower HAS EXPANDED town retailers who are reluctant to
power consumption and lesser ITS PRESENCE IN stock only 7 kg products as the market
use of water. In addition, a lot of is dominated by 6 kg machines.
customers told us they wanted a INDIA, CONVINCED Even as we brought in more
feature where they could add more MORE RETAILERS flexibility for the consumer, we
clothes mid-cycle. We assimilated TO STOCK ITS were careful not be priced out of
this information and worked on the market. While the competition’s
making a machine that would, to a PRODUCTS 6 kg product comes with a price
large extent, incorporate these needs. tag of Rs 26,000-27,000, our 7 kg


66 | FORBES INDIA DECEMBER 11, 2015

Name: company needed
gunjan srivastava to differentiate
Age: 47 years itself in a cluttered
Designation: market
Md and ceo, How they did it:
Bosch siemens By going against
home appliances the prevailing
Manufacturing wisdom and
launching a 7 kg,
Pvt Ltd (india) front load washing
Education: machine in a
iit (Bhu), iiM- market dominated
ahmedabad by 6 kg machines
The challenge: Next move:
Bsh was a marginal to launch
player in wash- refrigerators for
ing machines. the the indian market

machines are priced at Rs 30,000.
This makes it attractive for people
to stretch a bit and upgrade. The
price should not be a barrier.
Bosch Siemens has also expanded
its presence in India. While the market
for front load machines is in the top
200 cities in the country, we were not
present in all of them initially. But
with two brands and a ‘Made for India’
product, we were able to convince
more retailers to stock our products.
The dual-brand strategy continues
to help us in many ways. Due to our
legacy in India, there are different
parts of the country where the Bosch
brand and Siemens brand are strong.
For instance, Siemens is strong
in Mumbai and the surrounding
region, whereas Bosch is strong
in Hyderabad and Bengaluru.
What we have done in India is to
deliver German engineering suited
for Indian conditions and that is the
promise the consumer is buying into.
We hope to be the second biggest
washing machine company in India
in the next 18 months, which would
be an improvement from our number
three status now. In some markets,
like parts of the South, we are already
second, behind our Korean rivals
LG and Samsung. (BSH does not
publish its revenues by country.) Prasad gori for forBes india
Going forward, we plan to adopt the
same strategy for refrigerators with a
‘Made for India’ range next year.
(As told to Samar Srivastava)


DECEMBER 11, 2015 FORBES INDIA | 67

Forbes IndIa leadershIp serIes


leadIng From the Front


The Makings of a Leader




Three industry stalwarts share their insights on leadership styles,
role models and what it means to lead from the front



By Gunjan jain



eadership, as the American with ‘Leading from the Front’. The Ajay Piramal, the consummate
historian James MacGregor three industry stalwarts interviewed dealmaker, defines leadership as
Burns wrote, is “one of below are those who led from the identifying trends ahead of others and
L the most observed and front, ones who built businesses then having the courage to put your
least understood phenomena on from scratch or dramatically money behind the calls you take. He
earth”. Are good leaders born transformed their inheritances. says maintaining a high emotional
or can they be made? Is there a Adi Godrej was only 21 when he quotient is crucial for any leader.
difference between how Indians entered his family’s business. After Kiran Mazumdar-Shaw, who
manage organisations versus the way 50 years, if there is anything he has made Biocon a household name
Westerners do? And what about the learnt, he says, it is that leadership and became one of the country’s
vexatious issue of masculine versus is all about teamwork. There are richest women entrepreneurs, says
feminine styles of management— limits to what any individual can most entrepreneurs are good at
who makes for a better leader? do and it is only by getting each leading from the front as that is the
The first instalment in Forbes team member to give her best that only way to get people excited and
India’s series on leadership deals organisational goals can be achieved. prove to them that the idea works.


‘Decisions don’t have to be Popular Always’




Adi Godrej ideas of leadership by then. top may take the trouble to
Chairman, Godrej Group I have always believed that leadership change. What made you do so?
is a question of teamwork. One It was about 20 years ago that we
Q When you joined the company must set one’s objectives for the introduced 360-degree evaluation.
in the 1960s, did you have any next five or 10 years, and then work That is, all our senior people get
ideas of leading and being in backwards with your team on how to evaluated by their seniors, their
charge of the business? achieve it. It is something for which peers and their subordinates. So I
When I joined Godrej more than you need not just IQ, but EQ, too. was also evaluated in this manner,
50 years ago, I was the first in the and it emerged clearly that I was
family with an MBA [from MIT’s Q How do you define EQ? not a good listener and that I could
Sloan School of Management] as Emotional quotient. You need to improve my performance, etc. So
there were no management schools understand people, work with them I decided I would work on it.
in India then. I did not take charge closely, listen to them and observe
of anything. I was too young—only their ideas. You may decide not Q You are constantly improving
21 years old—to take charge at that to accept every idea that comes yourself, you keep yourself
time. But I gave many ideas, provided your way, but you need to listen. updated about a range of
several inputs, and my father and issues. People speak of how
uncles gave me a great deal of latitude. Q In an interview some years the depth of your knowledge
ago, you said you had become sets you apart as a leader.
Q Given your education, you less autocratic and a better To keep on learning is really
must have already had many listener. Very few people at the important. People think that once


68 | FORBES INDIA DECEMBER 11, 2015

they have left university, they don’t young people to get into not just popular. In the political world,
need to learn anything more; times a management mode, which is most leaders want to do things they
are changing dramatically, so there basic, but into a leadership mode think are popular, but it may not
are many, many new ideas, thoughts, at an early age. Godrej Capability work well. So I think doing things
technologies coming up, and one Factors are measures that lead to that are tough, but necessary, is
needs to keep pace with them. such leadership achievements. very important. Ultimately, people
So I had decided very early in my appreciate it when it is done.
career that I would devote at least Q You have spoken at various
20 to 30 days a year to learning. forums about how leadership is Q Which leaders have you
not about doing popular things, admired or been influenced by?
Q How are you developing but about doing the tough things I have admired leaders like Gandhiji,
leadership at Godrej? What that need to be done which Nelson Mandela and Margaret
is Godrej Capability Factors no one really wants to do. Thatcher—they have incorporated the
and what is it based on? Good leaders need to have a clear things I spoke about. Getting things
We are adopting unique leadership vision of what needs to be done. done, long-term vision and not being VIkas khot
methodologies and we want our It doesn’t necessarily have to be swayed only by popular mandates.


DECEMBER 11, 2015 FORBES INDIA | 69

Forbes IndIa leadershIp serIes leadIng From the Front



‘Identify and Act upon Emerging Trends’



Ajay Piramal
Chairman, Piramal Group

Q What are some of the
leadership decisions and
choices you have made in your
journey as an entrepreneur?
Leadership, according to me, is the
ability to identify emerging trends—
look at what they are before they
are identified by a lot more people. I
mean, take decisions, early decisions.
We identified that textiles would be a
problem before others did. Similarly,
when we entered pharmaceuticals,
it was a contrarian approach.

Q What makes a great leader
stand out over someone who is
just very good at his or her job?
Firstly, what is a leader’s job? A
leader’s job is to develop a good
quality team and set a vision for the
company. The leader must be able
to anticipate what the environment
is going to be before others can do
so, and then show the courage to go
and follow that. It requires a lot of
courage to take certain decisions,
which may be contrarian.

Q Would you say leading
from the front is about taking
courageous decisions? you take the right action, then you Q What are the principles
Definitely. A good leader has to have will get the right results. Result is you always keep in mind?
the courage to take a decision. The nothing but action in another form. Face battles with equanimity.
leader should be able to say, ‘I think One can work hard but one can’t
this industry is going to be good’. Q You have spoken about the predict the outcome. There will be
Frankly, it is at such crucial times Bhagavad Gita in the media as well, good times and there will be bad
that leadership really matters. and we know that the values of the times, but one has to, to the extent
Piramal Group are a reflection of possible, take things in one’s stride.
Q When large sums of money are the values of the Piramal family.
involved or when a business fails, The Bhagavad Gita covers all aspects Q Which leaders have
how do you maintain equanimity? of leadership and management. deeply influenced you?
The key is that you accept both It teaches you to perform your If you look at Mahatma Gandhi’s life,
the highs and the lows; you retain action well and the results will that is what has deeply influenced
an even mind. That’s what the follow. It teaches you not to grieve me. Here was a man barely 5 feet 3
dInesh krIshnan also says, do not worry about the and principles that distinguish lawyer, and yet he could take on
Bhagavad Gita teaches, too. The Gita
over losses. It teaches fearlessness
inches tall, not a great or successful
great leaders from others. It also
the mightiest empire in the world
results, focus on the action because
and force them to bend down.
if you focus on the action and if
teaches trusteeship and humility.
70 | FORBES INDIA DECEMBER 11, 2015

Q What leadership principles vision. It is really about values, I do on many subjects; so I listen
would you try to pass on to and inculcating them in your to them. Integrity is also critical
the next generation? employees. I am humble enough to leadership, so I believe there
Leadership is also about setting to realise that there are many must always be alignment between
a purpose for the organisation, a people who know much more than what you think, say and do.


‘Leadership means Inspiring One’s Team’



Kiran Mazumdar-Shaw
Chairperson & MD, Biocon Ltd

Q How do you lead from the front?
I think most founders and
entrepreneurs are hands-on people
who know their business very well,
and most entrepreneurs have the
ability to inspire people, get them
excited and share in the vision. Most
entrepreneurs have this skill of
leading from the front by showing
people how to work and proving
to them that these ideas do work.

Q What is your leadership style?
My leadership style is that of a
scientist. It is about getting people Q What are the most markets that do not accept them
excited about science. It’s also about important qualities needed and technologies that fail. But
making sure I go out and practice in a startup entrepreneur? one just has to analyse these
what I preach—the strategy, the One needs to have an absolute sense failures and work to fix them.
philosophy, the value system that of purpose, commitment, passion and
I told you about. I have always belief in the undertaking. Of course it Q What were the most difficult
spoken to my colleagues about how is challenging, but one believes in it problems when you started Biocon?
different we can be—and should so totally that there is the willingness My credibility has always been the
be—in the marketplace and how to face all odds—and those odds are biggest challenge. How credible
I don’t want to be imitated nor about failure, about the risks taken and was I as a young woman of 25,
should we imitate what others are doing whatever it takes to succeed. trying to start a biotech company?
doing. So, leading from the front How credible was I in the eyes of
is about facing challenges and Q There must have been bankers who were debating whether
failures, and making sure you are failures in your own journey. to lend to such a project? And how
part of that problem-solving team. What kept you going? credible was I as a businessperson?
I have had many, many failures in Overcoming these challenges
Q How did you develop this style? my life, and I think it is failure that infused more confidence in me.
I started doing things that were quite helps you learn and become stronger.
different, unique. I became really It gives you much more knowledge Q What is the most
confident when I went to Australia. about the way you are building important takeaway for you,
Here I was, a young woman going your success. So I think you need to having come this far?
abroad for the first time on my own. leverage failure to build success. It is to believe in what you are doing;
I was the only woman in my class, if you do that, then everything will
and I was doing something in a man’s Q Can you give some examples? become much simpler and clearer.
world: I was studying brewing. It Failure is inherent in a technology Gunjan Jain is an author, with her first book
was a different ecosystem to be in such as biotech. One is bound to ‘She Walks She Leads’ due for release
and a singular opportunity to excel. have products that do not work, in April 2016



DECEMBER 11, 2015 FORBES INDIA | 71

CROSS BORDER


TRANSFORMATIONAL TECH


Shape of Things to Come




Carbon3D is the latest hype-beast in 3D printing,
but it has the best chance yet to reinvent manufacturing


By aaron tilley


irk Phelps wants to change available and you design the engine any digital 3D file, freeing engineers
how things get made. He around it. This is backward,” says to build their dream engine. While
holds up a floppy yellow Phelps, a 33-year-old product some of the highest-end machines
K circle of plastic, a sealing designer who helped develop can precisely print small-batch
gasket for a generic automotive the multitouch on the iPhone. items such as hearing aids and
engine, and explains how this gasket That frustration led him to take the artificial joints, the vast majority of
is limiting human creativity. job as head of product development at 3D printers in use today are slow
“If you want to make a new kind Carbon3D, one of the hottest startups and capable of making only trinkets
of engine, you don’t get to design to come along in the emerging 3D and small prototypes. The early
the engine from the ground up. You printing industry. The promise of hype around 3D printing peaked a
actually go to your gasket supplier 3D printing is the ability to produce couple of years ago, and now shares
and ask what standard gaskets are a solid part on the spot based on of the two big publicly traded printer


Carbon3D Ceo
Joseph DeSimone
is breaking speed
records with his 3D
printers, inspired in
part by Terminator
2’s liquid cyborg























CHRISTIAN PEACOCk FOR FORBES













72 | FORBES INDIA DECEMBER 11, 2015

manufacturers, Stratasys and 3D pulls the object out of the pool, and systems engineer at Legacy Effects.
Systems, are 80 percent off their highs. more resin flows under to be heated. “The throughput is absolutely
Carbon3D is reinjecting excitement Carbon3D says it can produce amazing.” Ford liked it so much that
into the field. Its CEO and cofounder, objects of higher resolutions at speeds its former CEO Alan Mulally joined
Joseph DeSimone, a 51-year-old 25 to 100 times faster than traditional Carbon3D’s board. Ellen Lee, Ford’s
entrepreneur and former chemistry stereolithographic printers and team leader of additive manufacturing
professor from the University of several other techniques. Because the research in Dearborn, Michigan,
North Carolina at Chapel Hill, came action of the machine is so smooth, is now assessing the idea of using
up with a new way to print objects it allows manufacturers access to a Carbon3D machine in its rapid-
in 3D so quickly and precisely that a wider variety of performance prototyping unit. While Ford is still
Sequoia Capital partner Jim Goetz materials such as stretchy elastomers clearly years away from printing
(the sole backer of WhatsApp) led a and high-temperature-resistant resin. critical car parts, Lee has joked about
$11-million Series A round and lured Carbon3D aims to develop its own printing gear shifters to fit the owner’s
him to Redwood City, California from resins for making objects ready for hand. “A lot more potential remains
his tenured chair in Chapel Hill. The commercial sale. “We’re focussed on untapped in 3D printing,” Lee says.
company has since raised more than applications where the 3D-printed “It’s really going to change the way
$140 million, including a $100-million part is the functional part, where we manufacture in America. We want
round in August led by Google it could go into a car. Existing 3D to understand how to best use it.”
Ventures. Its valuation is already Industry expert Terry Wohlers
estimated to be above $1 billion of Wohlers Associates says that
without releasing anything more while Carbon3D’s speed is a
than a product for early customer CARBON3D SAYS big deal for manufacturing, he’s
trials. “The industry is dominated by IT CAN PRODUCE uncertain of the quality of the
mechanical engineers who print two- end product. Over time, light can
dimensional objects up layer by layer,” 3D OBJECTS 25 degrade the photopolymers used in
DeSimone says. “Let’s not do this layer TO 100 TIMES stereolithography, making them less
by layer—let’s grow these parts.” FASTER THAN reliable than the thermoplastics used
Most 3D printers use a technique by more common fused deposition-
known as fused deposition modelling, TRADITIONAL modelling printers. Carbon3D says
which is basically a hot-glue gun PRINTERS that its polymers use UV-blockers and
controlled by a robot arm that zig- pigments to protect them from light.
zags back and forth depositing layers Carbon3D machines are priced
of plastic to make a solid object. A well above the mass market,
Carbon3D machine pulls a solid printers don’t do that,” says Phelps. but that shouldn’t be an issue
object from a small tub of liquid “And if it works as a final part would, for large businesses if it works
plastic—akin to the way the killer why not just ship the 3D-printed as advertised. “Ford spends
robot in Terminator 2 lifted itself out part? If it’s just as good, why worry hundreds of thousands of dollars on
of liquid-metal puddles. It’s a variation about injection moulding?” individual pieces of manufacturing
of a decades-old technique called A dozen companies, including Ford equipment,” says Wohlers.
stereolithography, or the use of light Motor and Hollywood special effects Carbon3D’s talk about disrupting
to solidify liquid plastic. DeSimone’s studio Legacy Effects, are testing injection moulding (a widely used
contribution as a chemist was to Carbon3D machines, each of which manufacturing process) is a bit far-
replace the bottom of the tub with will cost north of $10,000. Legacy, fetched, but its machines are bringing
a pane of glass that, like a contact which worked on the Iron Man and excitement back to 3D printing.
lens, is porous to air. The air creates Avengers movies, uses it to print “Ten years ago, a lot of firms started
a cushion under the resin that is prosthetics and props. The studio cut building 3D printing manufacturing
one-thousandth of an inch thick, so the time it took to print one crucial plans,” DeSimone says, “and it was
the liquid never sticks to the glass. job from 16 hours to two hours. really exciting. Then they shelved
A laser firing from beneath the glass “If I have speed, detail and plans, because the technology
solidifies the bottom layer of plastic material choice, that are high- didn’t have enough horsepower
in a precise pattern dictated by the grade engineering materials, that’s to take them there. Now they’re
object’s 3D file. A robotic arm slowly a winner,” says Jason Lopes, a lead starting to dust off those plans.”


DECEMBER 11, 2015 FORBES INDIA | 73

EntErprisE


EasE of Doing BusinEss


Reducing Unease




Up 12 spots this year in the World Bank’s index of Ease of Doing Business, the
country is a tad closer to Prime Minister Modi’s promise of entering the top 50


By Shutapa paul
en months ago, Prime covered significant ground in six paid-up capital, the commencement of
Minister Narendra Modi months. “India has accelerated efforts business declaration and streamlining
promised that India would to improve the business climate in the process to obtain electricity
Tbreak into the list of top the country during the past year. connections in Mumbai (BEST) and
50 countries based on the Ease of This year’s improvement in ranking Delhi (Tata Power) were lauded by
Doing Business in three years. In marks a significant shift in trend after the World Bank in its latest report.
the World Bank’s Doing Business several years of decline,” World Bank Several other reforms, announced
2016 report, India has jumped to Country Director in India Onno Ruhl after the cut-off date this year,
rank 130 out of 189 countries— told Forbes India. “The fact that the are currently being implemented.
up 12 spots from 142 a year ago. government achieved this in about six For instance, e-payment has
(However, based on this year’s new months underlines its commitment been enabled for contributions to
methodology, India’s recalculated to making India an easier place to the Employees’ Provident Fund
2015 ranking comes at 134.) do business. These initiatives will Organisation (EPFO) and Employees’
Given that May 31, 2015, was benefit Indian small and medium- State Insurance Corporation of
the cut-off date for this year’s data sized enterprises (SMEs) the most.” India (ESIC), construction permit
collection, the National Democratic Amending the Companies Act to applications in Delhi and Mumbai
Alliance (NDA) government has remove the provisions for minimum can now be made online and INC 29

































pM Narendra Modi’s
gEtty imagEs aims to turn the
Make in India campaign
country into a global
manufacturing hub



74 | FORBES INDIA DECEMBER 11, 2015

has been introduced by the ministry the key reforms undertaken have
of corporate affairs to quicken made it easier for businesses to
registration of companies. Even electronically register and pay taxes,
the number of documents required Cutting Red tape obtain electricity connections more
for export and import is being easily and have a simpler regime for
lowered. Mumbai has introduced Some of the reforms that have helped inspections by labour and pollution
commercial courts to hear business improve India’s standing in the Ease inspectors,” says Chandrajit Banerjee,
of Doing Business rankings
disputes and the eBiz portal by the director general, Confederation of
Department of Industrial Policy Indian Industry (CII). But states still
& Promotion (DIPP) is being  Companies Act has been amended have to rationalise the licences and
upgraded to deliver more services. to remove provisions for minimum clearances required at the state level
paid-up capital
Regular interactions between DIPP to start, operate and exit a business.
Secretary Amitabh Kant and industry  Process to obtain electricity “Corruption in the government
stakeholders have hastened the pace connections has been streamlined in has come down significantly at the
of reforms. “Interactions between Mumbai and Delhi central level in the last one year,
stakeholders have definitely improved  Mandating e-payment for EPFO while on other crucial parameters
under this government,” a top and ESIC contributions like regulatory clearances, land
executive who liaisons for American acquisition and taxation policies,
companies in India told Forbes India.  Construction permit processes in Delhi a lot more needs to be done for
The government’s idea is to and Mumbai have been streamlined and seeing real change at the ground
promote an enabling environment. applications can now be made online level,” says DS Rawat, secretary
Even the finance ministry is putting  The number of documents required general, Assocham, in a report
its weight behind the reforms with for export and import has been reduced prepared by the business chamber
the Economic Affairs Secretary to gauge ease of doing business.
Shaktikanta Das pushing the draft The road ahead still remains
bill on bankruptcy to be introduced challenging. If India must enter the
In a recent meeting between Kant 2015
in Parliament at the earliest. elite 50, then it has to act like one.
Experts suggest further digitisation
secretary was informed that while the RANK 142 of processes, updates to the
and American corporates, the DIPP
Securitisation and Reconstruction of
Centre is taking steps to improve ease Financial Assets and Enforcement of
just not keeping up. “Implementation 2016 Security Interest (Sarfaesi) Act, and
of doing business, some states were
passing of the Arbitration Bill along
of the policies is still a question mark. RANK 130 with Goods and Services Tax (GST)
There are still multiple agencies Bill will aid India in climbing up the
that exercise restraint and prevent Ease Of Doing Business index further.
execution at the operational level. A daunting task, but not impossible
The role of state governments Change +12 as proved by countries such as
and minor departments must be Russia, Rwanda and Croatia that
monitored. These agencies and their have leaped ahead on the index.
contradictory circulars must be “What is more important for India,
disempowered and made redundant,” Days needed to start however, is that since the Doing
says Ajay Singha, executive director, a business in India Business report started considering
American Chamber of Commerce in the current 10 indicators, this is the
India. States such as West Bengal, first year that India has been able to
Chhattisgarh, Andhra Pradesh 2013 32 improve its rank,” says Ruhl. “The
and Telangana, for instance, have hardest challenge for an economy
been more proactive than others. 2014 34 the size of India is to reverse the
“State governments have acted trend—now that India has reversed
positively in undertaking reforms 2015 29 that trend, it is poised for take-off.”
to improve their ease of doing In the next two years, India, backed
business. At the state level, some of Source: World Bank data by its reforms, has to take flight.


DECEMBER 11, 2015 FORBES INDIA | 75

interview


Shaktikanta DaS


Ease of Business: India’s Rank


to Improve Significantly in 2016




Economic Affairs Secretary Shaktikanta Das says India’s rise in World Bank
rankings is satisfying; target remains to break into the top 50 in three years


By Shutapa paul

ndia is on the verge of enabling
easy entry and exit for
businesses. A new Bankruptcy
I Law and a slew of other reforms
are poised to do just that, Economic
Affairs Secretary Shaktikanta Das tells
Forbes India in an interview. Excerpts:

Q India has improved on the
ease of doing business. Are you
happy with the performance?
We note with satisfaction our
improvement in rank from 142 to 130
[on the ease of doing business]. But
there is a lot of unfinished work and
it is being done. We could have done
far better this year. But the World
Bank in their analysis wants to see
how changes play out for one year improve significantly next year. The Viswanathan Committee on
and only then will it give it the due Bankruptcy Law has submitted its
weightage. We did not get marks for Q Is the government still confident report and it is in the public domain.
many of the decisions which were of breaking into the top 50 ranks We are expecting comments from the
taken in the last six months. But these in three years as Prime Minister stakeholders and others. It has been
decisions would have run for one Narendra Modi promised? referred to the various ministries and
year when the next rating comes. That is our target and we are states for their comments. It will be
working towards that. our endeavour to introduce the Bill
Q So you see a significant in Parliament as early as possible.
improvement in the Q Where do the challenges remain?
ranking for next year? It is a mixed bag. Several states are Q In the coming session
Yes. What is more important is cooperating and are moving very of Parliament?
that the World Bank has specially fast. For example, Maharashtra has Let us see… In India, it is easy to start
recognised the important steps in simplified its building permission a company, but very difficult to wind
the area of reforms taken by the rules. Some states need to move it up. It becomes like a chakravyuh
government. All the departments faster. The positive thing is that no [labyrinth]. The Bankruptcy Law
of the government have worked state is against it. All states are on will deal with the problems of the
together, whether it is corporate board, but depending on local factors, companies. If a company is facing
affairs, department of revenues, excise some move fast, some do not. bankruptcy or it is a case of business
getty imageS and customs, income tax, ministry of Q How soon can we hope to see the failure, anybody, whether workers
or bank or shareholders, can invoke
labour, EPFO. So it is very satisfying.
the provisions of this new law.
Bankruptcy Law come into effect?
I would expect India’s ranking to
76 | FORBES INDIA DECEMBER 11, 2015

Life reCliner ApprAisAl nuggets


Reinvented
The Mercedes-
Check into
classics, and
AMG G 63 is
a museum
a unique and
eco-friendly
for your
vacation
contemporaries
mad vehicle
P/90
P/86
P/88
recliner Explore New Zealand on foot, with advice from the experts




































































Corbis

Life recLiner


Destination:

Kiwiland































































Stuart BLack / roBertharding / corBiS

Mountaineer twins Tashi and
Nungshi Malik give expert
advice on trekking in New
Zealand, and beyond


By Paula Ray


































































The Routeburn
Track going through
Mount aspiring
National Park in the
South Island


DECEMBER 11, 2015 FORBES INDIA | 79

Life recLiner


here are lands that are world class multi-day hiking trails while providing access to remote areas
meant to be explored on are well supported by a reliable of the country,” says Tashi. So you
your feet. New Zealand network of necessary support- are not bothered with problems like
T is one of them. With an providers and trek-operators. sleeping in the rain, being too cold
immensely diverse topography, it “The unique selling point of at night, or having to carry all kinds
can spoil you for choice. Whether trekking in New Zealand is the of expensive equipment. This makes
it is one of the Great Walks, an epic massive network of huts, called baches it possible for many more people to
multi-trek around the country, [pronounced batches], throughout experience New Zealand’s incredible
or just a walk around the scenic the country that offer people a backyard. “It is also extremely safe
countryside, there is something for comfortable and dry place to sleep and hassle free,” says Nungshi,
anyone who loves the outdoors.
It is no surprise then that Tashi The Milford Track
and Nungshi Malik, the 24-year-olds through Fiordland,
from Dehradun who made history from lake Te anau
to Milford Sound
last December by being the first
siblings and twins to scale the Seven
Summits—the highest peaks in each
of the seven continents—have made
it their home since February this
year. Studying for a postgraduate
degree in sports and exercise at the
Southern Institute of Technology in
Invercargill, they have been living at
the southern-most tip of the country.
“Is there anywhere else more
beautiful than New Zealand to get
back to nature? Not likely,” says
Tashi with a wide grin. “Having
stepped on the highest point of every
continent, we find New Zealand as
one of the best trekking destinations
in the world. In fact, New Zealand
is best explored along its walking
and hiking trails to really absorb its
mesmerising natural landscape.”
There are walking options that
suit all levels of fitness and trekking
experience. The thousands of
kilometres of tracks traverse varied
landscapes such as national parks,
native forests, stunning coastal
regions, beautiful lakes, mountain
tops and bottomless valleys (see
The Maliks’ Favourite Great Walks).
What comes in handy is that these

“New Zealand is best
explored along its
walking and hiking
trails to really ab-
sorb its mesmerising
natural landscape.”





80 | FORBES INDIA DECEMBER 11, 2015

the older twin. Priced between $5 for walking or hiking, a big part Each season brings its own different
and $15 per night, baches do not of your planning will be learning experiences (See Seasonal Picks).
require advance booking if you are more about the seasons to decide If you are wondering what are the
travelling outside of peak season. the best time for your visit,” says downsides to exploring the Kiwi
But ‘peak season’ is probably a Nungshi. “After all, one of the main treks and trails, the twins “frankly
term that’s flexible in this part of the reasons you’re visiting is to spend don’t see any”. A little probing later,
world. What you plan to do is what time outside enjoying New Zealand’s they say reluctantly: “Just that during
decides which season you should be wonderful countryside, isn’t it?” the peak trekking season in summer,
visiting the country in. “If you are This also means there is no ‘bad’ around November to January, one
thinking of visiting New Zealand time for hiking in New Zealand. of the biggest mistakes visitors make
































































corBiS




DECEMBER 11, 2015 FORBES INDIA | 81

Life recLiner














Auckland

SeaSonal pickS

Spring
Jan Feb Mar Apr May Jun Jul Aug Sep oct nov Dec
Average maximum temperature
in Auckland: 18°C
Views from The Fiordland Coast walks include
baby fur seals, penguins and other native birds
and flowers. It’s also the time for waterfalls from
snowmelt in and around the glacial valleys.
SUMMEr
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Average maximum temperature
in Auckland: 23°C
Enjoy longer periods of fine, dry weather and
longer days. All the trails on the World Heritage
Walking Tour can be enjoyed in the summer.
AUtUMn
Jan Feb Mar apr May Jun Jul Aug Sep Oct Nov Dec
Average maximum temperature
in Auckland: 20°C
It’s time for glorious autumn colours. The best
places to see these are in Mackenzie Country,
Waitaki Valley, Wanaka and Cardrona Valley.

WintEr
Jan Feb Mar Apr May Jun Jul aug Sep Oct Nov Dec
Average maximum temperature
in Auckland: 15°C
Not traditionally a busy time for hiking. None
of the roads are snowed in, making most places
accessible. Native forests are all evergreen.
The Guided glacier walk, Fox Glacier, West Coast, South Island

is to assume that they don’t have to The twins add that another the other, weather is a different
book the Great Walks in advance,” small challenge to consider is matter altogether. The country’s
says Tashi. “It is relatively a small transportation. Many of the Great diverse landscape creates great
country, but its Great Walk network Walks and tramps in New Zealand variations and unpredictability
attracts thousands of people each year unfortunately are not a loop; which in weather conditions.
and one may not have access to all of means they don’t, naturally, bring “The temperature at the bottom
them due to heavy bookings. Keep in you back to where you started of a valley can be quite different from
mind that these huts can get very busy, from. At the end point, you need that of an exposed mountain peak,”
with up to 60 people crammed into to arrange for transportation by says Nungshi. “So trekkers have to
a common kitchen area and sleeping bus or water taxis beforehand. plan and prepare accordingly, with
And although every season is
corBiS quarters. So it’s best to plan well suitable for some kind of trek or options to add and remove layers of
clothing as per the changing weather.”
ahead, somewhere in July-August.”

82 | FORBES INDIA DECEMBER 11, 2015

The snowy trek
up Mount Vinson,
the highest peak
of antarctica






















“One downside we find is the the MalikS’ Favourite Great WalkS
costs associated with dehydrated The Great Walks are generally regarded as New Zealand’s premier multi-day hikes. They have been
camping meals. One such packet of accorded special status in order to regulate the numbers of hikers on the trails, to enhance their
‘a two-person meal’ [which is really experience, and to minimise overcrowding and erosion. Of more than a hundred Great Walks, they
particularly like the Routeburn Track (a medium three-day 32-km track) that spans the stunning
more suitable for 1-1.5 person] can sub-Alpine scenery of the South Island. The main challenge on this popular hike is to actually secure a
run you anywhere from $9.50 to place among the limited number who are allowed on the track at any one time.
$15.50, depending on where you visiting places only acces- around five hours.
buy it. One way to reduce costs is to north iSlanD sible by river, as it was in the the Abel tasman Coastal
split a dehydrated meal and a pack the Lake Waikaremoana early days of exploration and track is one of the most
track is one of the more
of instant noodles,” the twins add. gentle Great Walks. This 46- colonisation, by both the Maori popular tramps as it runs
people and Europeans.
The ideal trek, or a “serious km track circumnavigates the along the coastline of the
trek” (as the twins put it), needs picturesque Lake Waikare- sunniest part of the South
moana, and takes three to four South iSlanD
Island, featuring stunning
a sturdy pair of lungs, fit legs and days to cover, with plenty of the Milford track is the jewel beaches of golden sand and
a good amount of preparation. opportunities for fishing and in New Zealand’s hiking crown. crystal-clear water.
“Anything lesser than that and swimming. It’s an extremely popular four- the Heaphy track is another
we jokingly call them morning the tongariro northern Cir- day track through Fiordland, hike in the northern South
from Lake Te Anau to the stun-
cuit, including the tongariro
Island and at 79 km (four to
and evening walks,” they laugh. Crossing is a three- to four- ning Milford Sound. six days) is the longest of the
(See Train For A Tough Trek) day track that traverses some the routeburn track is a Great Walks with some
The modern pace of life, of course, of the most stunning volcanic 32 km, three-day tramp of the most diverse scen-
does not allow everyone the luxury sceneries in New Zealand. between Glenorchy and The ery, from the forests of the
Kahurangi National Park to
Divide, going through Mount
Whanganui Journey: Not
of spending several days on trekking. strictly a Great Walk, this is an Aspiring and Fiordland Na- west coast beaches. It is also
“So, one day or even half a day of odd one out as it is actually a tional parks. unique in that it is open to
mountain bikers during the
some serious trekking is cool. For kayak trip. About 145 km down the Kepler track, at 60 km, winter season.
the Whanganui River, from
it to be really rejuvenating and lots Taumarunui to Pipiriki, which is possibly the most challeng- There is also the rakiura
ing of the Great Walks, taking
of fun, the locale obviously must be takes around five days, it can three to four days to complete. track in Stewart Island, a
away from the crowds, noises and be turned into a shorter three- It is also the course for the two- to three-day, 30-37 km
day trip with an exit at Pipiriki.
distractions of city life,” says Nungshi. This is an awesome adventure, Kepler Challenge—an ‘ultra- track with a great mix of
marathon’ trail, which takes
beach and forest scenery.
The ideal trek must be amid
natural beauty, with “some degree
of gradient even if it is a gradual rise In New Zealand, you can locate do is to keep a pair of trekking shoes
and fall in landscape”, says Nungshi. such spots almost every few handy, with a small backpack with
It should ideally end with a camping kilometres. “Even when we were in water, essential toiletries and snacks.
out, “where we are able to have a India, we would invariably hunt out As we would drive, we would look out
greater feel of living off the land and such opportunities along the highway for dirt tracks leading out from the
the excitement of living it out all by while driving from Dehradun to highway into the farmlands. We would
ourselves out there amid wild nature”. Delhi,” recalls Tashi. “What we would drive a distance, park the vehicle
DECEMBER 11, 2015 FORBES INDIA | 83

Life recLiner




near a field, put on our gear and head in December 2014. But they chose to reach the mainland of Antarctica
out trekking for a few hours through enter Antarctica from South America. via Chile. It’s also because Mount
the serene, quiet countryside.” “Geographically, both the southern Vinson is much closer to the Union
tip of Chile on one side and the Glacier, which is a popular starting
Beyond the isle southern tip of New Zealand on point of all these adventures and
Many trekkers to New Zealand have the other are roughly at the same which itself is located on the north-
an Antarctica expedition as their distance from Antarctica,” says western side of Antarctica.”
ultimate destination, and Maliks Nungshi. “But since Mount Vinson What the more enthusiastic tourists
were no exception—they made it to and the South Pole are located in the prefer to do from New Zealand is to
the top of Antarctica’s highest peak, western half of the continent, most book a chartered cruise to Antarctica
Mount Vinson, and the South Pole explorers, trekkers and mountaineers along the country’s southern coastline

a 145-km kayak trip
on the Whanganui
River is reminiscent
of the early days of
exploration by the
Maori people and
the Europeans



















































corBiS




84 | FORBES INDIA DECEMBER 11, 2015

and sub Antarctic islands. Those who
actually want to venture into the
Antarctic slopes need to acclimatise
before embarking on the trek.
“For acclimatising and doing pre-
Antarctica training, the Southern Alps
are certainly a favoured destination
for those who can afford the long
travel,” says Tashi. One of the world’s
most popular mountain ranges—it
is also where several well-known
mountaineering movies, including





The Malik sisters
mix training with
nutrition to prepare
for tough treks

train For a touGh trek Working out four to six times per week may
t is equally important to train not just the not ensure you can be fit enough to reach the
summit of tough peaks. People who have the
i body but also the mind. Extreme treks are endurance to run a marathon may fail to scale
always very demanding. The twins believe that high-altitude peaks. Pure cardiovascular fitness
when the body says ‘give up’, the mind can needs to be supplemented with physical condi-
command ‘get up’. Due to the twin dilemma tioning that helps ascend 3,000 feet or higher.
and requirement to conserve maximum energy
as well as get maximum training, they draw the Maliks prioritise their training as follows:
out a training and nutrition programme. It  Climbing conditioning: Pack-loaded uphill
includes strength training, endurance, high-alti- hiking, walking, and stair climbing
tude tolerance, and strong cardiovascular condi-

tioning. All these exercises become progressively  Strength training: For the lower body and core
strenuous and challenging as the climb gets  Cardiovascular training: Includes aerobic and
closer. Nutrition is planned in a way that the two anaerobic workouts without pack
do not lose weight.  Weight and flexibility training

Vertical Limit, have been filmed—it Pole is easier, according to our
extends along much of the length experience, for two reasons. First,
of New Zealand’s South Island. the ice is thousands of feet deep, well
Tashi recalls the extreme climatic crystallised and absolutely safe to ski
conditions in these geographical on. On the contrary, the ice pack at
zones and the challenges they pose. the North Pole is actually a floating
“Temperatures average at -25°C mass of ice on the Arctic Ocean. Apart
and can easily dip from -35°C to from shifting locations [as much as a
-40°C. At each Pole, there is zero few kilometres in 24 hours], it is only
tolerance towards leaving behind a few inches to a few metres thick.
any form of garbage. So you have to As a result, you have to negotiate
collect and carry your own faeces many ‘leads’ [openings in the ice
and urine in bags and dispose them that expose Arctic waters] which are
of at the end of the expedition. This potentially fatal if you fall into them.”
means the net load you have to carry Also, unlike the South Pole,
remains the same or keeps increasing there are no permanent markings
with each day,” she explains. at the North Pole, since it is always
“The differences between the moving. “With fast melting glaciers
North and South Poles, however, and the Arctic ice, we fear that
are quite substantial especially from some years down, it may not even
the safety and relative challenge be possible to ski all the way up to
angle,” says Nungshi. “The South the North Pole,” says Nungshi.


DECEMBER 11, 2015 FORBES INDIA | 85

Life recLiner









































rooms with viewings:
Laura Lee Brown and Steve
wilson keep a penthouse
above the flagship 21c
Hotel in Louisville that’s
available to guests

The Artful Lodgers gracefully reimagined by New York
architect Deborah Berke, and feature

collection of art as well as temporary
21c Museum Hotels began as a Kentucky power museums filled with a permanent
shows. As with the nude nymphs at
couple’s attempt to save downtown Louisville check-in, the pieces are purposefully
and became a lesson in building mini-masterpieces unconventional and unconventionally
for travellers displayed. Anyone can visit the
galleries (free of charge) at any time,
though guests, naturally, have the
By ABrAm Brown
truest 24/7 access to the exhibitions.
“We were only planning on doing
our naked children are Founded in 2006, 21c Museum the one in Louisville,” Wilson says of
playing behind the front Hotels combine provocative the 91-room flagship, where rooms
desk at the 21c Museum contemporary art (the name refers start at $229 a night. “It wasn’t long
F Hotel in Louisville when I to the 21st century) and luxurious after it opened that we had this
arrive. The fact that they’re statues by lodging in areas of the country that tremendous response, and friends
Jason Myers for forbes make the scene any less disturbing, by art collectors and philanthropists originally pleaded with them not to
and advisors”—a group who had
are typically flown over. As conceived
contemporary artist Judy Fox doesn’t
and that’s exactly the point behind
try this concept at all—“began to say,
Steve Wilson and Laura Lee Brown—
he a former political operative,
‘You really ought to do more of these.
having these shameless sprites at
she a Brown-Forman heiress—the
If you don’t, someone else will.’”
check-in. After all, a night at this
hotel is truly a night at a museum.
86 | FORBES INDIA DECEMBER 11, 2015 hotels are often in historic buildings, A second 21c opened five years

later in Cincinnati, 156 rooms inside (It resembles a moving field of grass.)
the once grand (and now grander) Themed exhibitions often showcase
Metropole Hotel. A conversation with work by well-known artists, such as
the couple’s friend Alice Walton led Cindy Sherman, Kara Walker and
to a third 21c in Bentonville, Arkansas, Chuck Close, and also feature dramatic
near Walton’s Crystal Bridges Museum pieces by lesser-known painters and
of American Art. That location broke sculptors. “I have found that in each
with convention and went into a of our cities there are wonderful
custom-built building. In March young artists,” Stites continues, “and
a hotel opened in Durham, North we work with them to either show
Carolina, 125 rooms in a 17-storey Art their work or work on our installation,
Deco tower (designed by the same which provides an opportunity to
architects who built the Empire State see great art that you might not
Building, which the hotel resembles). be exposed to in other cities.”
Within the next year two more Currently on display in Durham
21c hotels will open—in Lexington, is a collection of paintings, sculpture
Kentucky and Oklahoma City—and, and photography exploring how
by 2018, another three, in Kansas City, human perception can be swayed; in
Nashville and Indianapolis. Wilson Cincinnati, a Warhol-esque collection
and Brown’s desire for the hotels to of brightly coloured pop-culture
take their place as a city’s cultural portraits; and in Louisville, an
centre has kept their horizons limited exhibition meditating on how humans
(and away from megalopolises such Living large: (Top) Galleries are free interact with the environment. It
as New York and Los Angeles). to the public; (above) Serkan Özkaya’s includes a disturbing painting—created
gold ‘David’ in Louisville
Unlike most boutique chains, 21c by Louisville artist Grant Hayunga
hotels do not all look the same, but was doing a burnt carrot salad. No after peyote-fueled visions—of what
they share the same posh details one had ever heard of a ramp.”) appears to be a horse-headed woman
and playful spirit—from gourmet Look up from your meal in a 21c masturbating and streaked in blood.
chocolates on pillows and rubber restaurant, as I did from a dish of bison All of the work, naturally, is left up to
duckies in the showers to the meatballs (from a herd on Wilson’s personal interpretation. “I thought it
trademark flock of penguin statues in property), and you’ll find that the was a man,” Wilson says, shrugging,
each location (moved constantly by museum part of the stay has already when asked about the equine shape.
guests and staff). And fine dining is a started. The exhibitions stretch across Across the gallery, he spots a
hallmark, with menus pushing diners the entire hotel. “The art is integrated mother and child posing for a picture.
to expand their palates beyond local into everything we do,” says Alice Gray “Is that a selfie stick?” Wilson
fare. (“No one was serving octopus Stites, the firm’s chief curator. “You asks. A quick glance confirms—yes,
in Louisville before us,” Wilson says know, even the stairwell to the spa in a selfie stick. “Good. I like that.
proudly. “No one [in Cincinnati] Cincinnati is an artist’s installation.” They’re getting close to the art.”


DECEMBER 11, 2015 FORBES INDIA | 87

Life ApprAisAL



Car: Mercedes-AMG G 63



By Jamshed Patel




























n 1972, the Shah of Iran, a major TFT screen, the Harman Kardon gaiters or rubber bellows, and uses
shareholder in Mercedes-Benz Logic-7 music system with 12 a traditional re-circulating ball
at the time, decreed that a speakers, a 10-channel amplifier and mechanism that doesn’t transfer
I purpose-built, cross-country a 450 watt Dolby Digital surround the shocks from the terrain to your
military vehicle be conceived in system, and DVD players and wrists. It also gets the 7G-AMG
the form of the Gelandewagen. screens for rear passengers too. SpeedShift Plus automatic gearbox
Seven years later, the G-Class—a The G-Class is a with paddle shifters,
commercially available version of the typical vehicle built tech specs which lets you choose
G-Wagen—was available for civilians. from a left-hand-drive Type 5461cc twin-turbo between Comfort, Sport
Even in brand-conscious India, the architecture. The V8 petrol and Manual modes.
G-Class’s resemblance to people- knee-room on the back- Power 544PS@5,500rpm Despite the
movers like the Force Trax, Mahindra seat is appalling for a Torque 760Nm@ conventional rigid axles,
Bolero and Tata Sumo didn’t stop it vehicle this expensive. 2,000-5,000rpm the ride quality of the
from becoming one of the highest- Thankfully, there’s LxWxH 4662x1760x1951 G-Class is adequately
selling cars in the AMG portfolio. plenty of head and (mm) plush, notwithstanding
Mercedes-Benz has now launched shoulder room. The Price Rs 2.71 crore the body roll and
(Ex-Mumbai)
the Crazy Colour Edition of the body rests on rubber + Inverted snob value pitching under braking,
G-Class in India. The crazy part isn’t mountings, so there’s + Off-road abilities and the slightly stiff
pumping over 500 horsepower into less vibration in the - Handling suspension set-up.
something with the drag coefficient cabin and Mercedes - Price It has permanent
of a bread box, it’s the outlandish has done a good job of all-wheel drive
colours: Tomato Red, Sunset Beam insulating the noise. with low ratios
Orange, Solar Beam Yellow, Alien In India, the G-Class gets the G which you can select on the fly
Green and Galactic Beam Purple. 63 AMG, which houses a 5.5-litre, under speeds of 40 kmph.
The G-Class is offered in India twin-turbo, V8 petrol engine; it The G-Class occupies a unique
in the form of the twin-turbo G 63 is an ‘off-roader’ with supercar- headspace: Many before me have
Courtesy: overdrive remains utilitarian on the outside, mammoth can hit 100 kmph in a madness in its very existence, which
called it inverted snobbery. There is
like performance. The 2,550 kg
AMG engine. The design language
claimed 5.9 seconds (no thanks to
has now been exacerbated by the
and brimming with luxury on the
audacious colours. And then there
inside: Mercedes’s flagship Comand
the non-existent aerodynamics).
is that crazy price you pay for it.
The steering set-up has no
infotainment system with a 7-inch
88 | FORBES INDIA DECEMBER 11, 2015



Life nuggets


A pick of the best, the latest, the greenest, the

quirkiest, the most luxurious... that money can buy






















































Tech
It’s clack-clack once more

Awkwardly grasping a tablet and pecking out an
important missive with one’s thumbs has become so…
déclassé. Old-school enthusiasts with a hankering for
the finest mid-century technology will thrill to the
sight, and the tactility, of the Qwerkywriter ($329).
A brushed-aluminium typewriter keyboard
with a tablet docking port and Bluetooth
connectivity, Qwerky offers glorious Clark
Kent-style keyboard hammering—satisfying
clackety-clack of course included. It even has a
carriage-return lever that functions as both an
enter key and a five-character memory macro.
qwerkywriter.com




90 | FORBES INDIA DECEMBER 11 , 2015

STyle
Spartan time-telling
The two new Radiomir 8 Days Acciaio watches—the
Black Seal 8 Days and the standard 8 Days—bring
Panerai’s P5000 calibre to the Radiomir family for
the first time. The P5000, introduced in 2013, is a
hand-wound movement that provides a full eight
days (192 hours) of power reserve and Panerai’s
trademark no-frills design and decoration visible
through the back. Both watches are offered in 45 mm
steel cases and feature a lumed sandwich dial and
trademark large Arabic numerals at their corners.
panerai.com






home
Versatile chair

The Reves Chair has been designed by Spanish
design studio Muka Design Lab, founded by product
designers Laxmi Nazabal and Lucas Abajo. In keeping
with their philosophy of Slow Design—collaborating
with small artisans and workshops, using local
sustainable materials—the chair is made from oil-
treated, locally-sourced beech and is upholstered in
a two-tone quilted, eco-friendly textile that is stiff
enough to stay vertical without support. It can also
be folded down over the wooden frame, opening the
sitter up to their environment. The chair recently
won the Red Dot Award: Design Concept 2015.
mukalab.com








AuTo
A new dawn

The Rolls-Royce Dawn looks like a
Rolls-Royce should, but 80 percent
of its panels are new. The four seats
are Mandarin leather and there’s
an open pore wood deck wrapping
around the rear seats. The run-
flats will take you 160 km. A new
suspension configuration handles
rolls and mass distribution while
safety systems, like automatic
cruise control, watch over you.
walterknoll.de
Versatile chair, courtesy Better Interiors; A new dawn, courtesy Overdrive



DECEMBER 11, 2015 FORBES INDIA | 91

“Nearly all men can stand
thouGhts adversity, but if you want to
test a man’s character, give
him power.”
on poWer —aBrahaM lincoln


“There are two kinds of power. One is obtained by the
fear of punishment, and the other by acts of love.”
—MahatMa Gandhi

“I love being at the centre of things.”
—MarGaret thatcher

“Leadership is not about being nice. It’s about being
right and being strong.” —Paul KeatinG

“There is no worse heresy than that the office
sanctifies the holder of it.” —lord acton

“Power should always be distrusted, in whatever hands
it is placed.” —Sir WilliaM JoneS

“Where there is power, there is resistance.”
—Michel Foucault

“Men in great place are thrice servants: Servants of
the sovereign or state, servants of fame and servants
of business.” —FranciS Bacon

“Athens holds sway over Greece; I dominate Athens;
my wife dominates me; our newborn son dominates
her.” —theMiStocleS

“Power always thinks it has a great soul and vast views
beyond the comprehension of the weak.”
—John adaMS

“He that would govern others first should be the
master of himself.” —PhiliP MaSSinGer

“I looked around at all the little fishes present and
said, ‘I’m the Kingfish’.” —huey lonG
Chaitanya dinesh surpur; top: Getty imaGes —John naiSBitt
“The new source of power is not money in the hands of
the few but information in the hands of many.”


“Nothing strengthens authority so much as silence.”
—leonardo da Vinci

“He who wishes to be obeyed must know how to
command.” —niccolò MachiaVelli

“The secret of my influence has always been that it
remained secret.” —SalVador dali

“The most common way people “What it lies in our power to do, it lies in our power
give up their power is by not to do.” —ariStotle
thinking they don’t have any.” “The attempt to combine wisdom and power has only

rarely been successful and then only for a short while.”
—alice WalKer —alBert einStein



92 | FORBES INDIA DECEMBER 11, 2015



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