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It was raining incessantly. When we reached the Godrej complex for a 9:30am appointment, we were fairly certain that the patriarch Adi Godrej would probably be late because of the rains & clogged roads. We were wrong. He had apparently reached office about an hour before us! “I appreciate things, which are pre-arranged and I start my day very early so I can give time for everything,” affirms Adi. In a freewheeling interview with 4Ps B&M, the man behind Godrej shares his views on India Inc., leadership style, his passion and more...
4Ps B&M: Has the recent logo change been good for Godrej’s positioning?
AG: Yes. The message needed to be conveyed that Godrej has moved consistently with time and we are changing faster. This was communicated well through the logo change.
4Ps B&M: How do you think Godrej as a group has evolved over the years?
AG: The Godrej Group has always moved in lockstep with the Indian consumer’s progress. As India has evolved, so too has Godrej. Today, more than 400 million consumers use one or the other Godrej product everyday. We are rapidly increasing this number through the creation of innovative products and global standard brand management practises.
4Ps B&M: Once a market leader in various verticals, Godrej has slipped on sustaining its position in some of these verticals. Do you think the recent changes will help Godrej to regain its lost glory?
AG: Godrej has grown consistently over the years. We maintain our strong position in a number of our flagship categories. We have constantly remained the second largest toilet soap manufacturer in the country, we are leaders in the hair colour category and are the largest manufacturer of household pesticides in Asia through our Godrej Sara Lee joint venture. Our appliances business is also among market leaders.
4Ps B&M: But isn’t India changing faster than Godrej is?
AG: India today is extremely different than what it was 15 years ago. The mindset has changed and I have no hesitation in saying that today’s generation has confidence which is more than us. It’s so nice to work with young people. I know there is a huge difference between my working style and today’s generation. But that’s where team work comes in and we as a group have changed with India.
4Ps B&M: You are an India Inc. veteran. From where you stand, do you think China is changing faster than India?
AG: Another 3 to 4 years and China will grow faster but still we will have the highest diversity in demography. I also feel that our capital productivity is relatively better and lots of young entrepreneurs are now representing India. This first generation entrepreneur without any strong business family base are doing superb. Sunil Bharti Mittal and G.M. Rao of G.V.K are notable among first generation entrepreneurs.
4Ps B&M: Does this mean the end of the legacy of time honoured family run businesses like yours, Tatas and Birlas?
AG: Family run businesses have always done well in Europe and USA and India is not an exception. If you notice, family run businesses just have the legacy of a family, but are actually run by non-family persons. They are also being run by professional MBAs and they have the potential to make it as large as seen on the global scale. Moreover, most successful family run businesses have a competitive spirit and good succession planning.
4Ps B&M: How are you focusing on succession planning and who would carry the legacy of Godrej? Tanya?
AG: Tanya is heading the Strategic Marketing Group and she’s doing it very well. But apart from her, there are other members from the next generation of our family who are very buoyant and keen to learn something new. Navroze, is also learning very fast. In fact, that has been our policy. Whosoever from our family joins the organisation, should necessarily go through training.
4Ps B&M: What are the key challenges in front of Godrej and also in front of India as a country?
AG: For the Godrej Group, as with any large employer in a rapidly growing economy, attracting, retaining and managing talent is a priority. Together with this, the need to constantly delight consumers means that we need to continue innovating our ideas flawlessly. From a macro perspective, I think poverty is a major challenge for India and we are still lacking behind in terms of literacy rate.
4Ps B&M: What’s your leadership model and in your eyes, who’s an ideal leader?
AG: Earlier I followed a military command; everything has to be in due time and perfect. But soon I realised I was wrong. I now follow team work, where any of my employees can come to me anytime. I think a leader is one, who’s admired rather than who creates an atmosphere of fear. That’s the reason my favourite leaders are Mahatma Gandhi, Margaret Thatcher and Jack Welch.
4Ps B&M: You where just 17, when you went overseas to study mechanical engineer. But, then you switched to management. Why?
AG: I was too young when I was enrolled at the Massachusetts Institute of Technology. I planned to study mechanical engineering as I was too young to think of the future. But later I realised that my family business would require me and I should opt for management.
4Ps B&M: What makes the owner of Rs.75 billion Godrej Group, who can afford the costliest products, use a simple Godrej shaving cream? Is it because Adi Godrej wants to be a self brand ambassador for his company?
AG: I have brand ambassadors like Katrina Kaif, Hrithik Roshan and people prefer watching them rather than looking at me. I believe our products are world class so I use them. My mother who was a school teacher always taught me how to be simple and never to forget humility. I miss her a lot. I believe that what Indian masses can use, I can use. So, it’s not only the Godrej shaving cream, in fact, I often change my bathing soap also, but the precondition is that it has to be a Godrej brand.
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Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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