Beyond the Boundary: Lessons from Cricket for Leadership Success

Read Time:13 Minute

Mr. V J Raghunath and Mr. S Giridhar, both authors of the book “Mid-Wicket Tales” and representing the Azim Premji Foundation, were engaged in a conversation with Mr. T A Sekhar, Former Indian Cricketer, and Mr. S Ramakrishnan, Sports Analytics & CEO, SportsMechanics.

Mr Giridhar: When it comes to cricket, authentic leadership happens on the field. Cricket has become a phenomenon in India. BCCI is probably the biggest corporate in India. We have 500 million cricket lovers in this country, which is more than the population of most other countries. Besides what’s happening on the field, there is so much action that happens outside too like spotting, developing and nurturing talent and use of technology and data analytics. The line of fast bowlers that we see now is largely due to the efforts of MRF Pace Foundation, which was started a few decades ago. Sekhar has been involved with this foundation since its inception.  

Mr T A Sekhar: I joined the MRF Pace Foundation in 1988 as a coach. I had never been a coach before that. The Australian fast bowler Dennis Lillee was the head coach and he is an authority on fast bowling. When he took up the challenge of training fast bowlers in India, there was a lot of criticism in the Indian press that Dennis Lillee had never played in India. They wondered how he could coach the Indian fast bowlers in India. The foundation was a great initiative by MRF. In 87, the late Ravi Memmen of MRF thought that Kapil Dev being our lone fast bowler, India needed good fast bowlers to bowl along with Kapil. His ultimate vision was that India should have a bench strength of eight to ten fast bowlers and that India should always tour abroad with four or five fast bowlers, of which minimum three fast bowlers should be from MRF.  It became a reality from 95- 96 onwards.

Dennis Lillee is a living Encyclopaedia on fast bowling. He rewrote the fast bowling technique for the English coaching manual in the mid-90s. He was the best fast bowling coach I have seen in my career.  The first fast bowler to play for India from MRF was Vivek Razdan who was picked for the Pakistan tour. On his debut series, in his second match, he got five wickets. Unfortunately, he didn’t play much after that due to some reasons. After that, a regular stream of fast bowlers started coming out from MRF- Venkatesh Prasad, Javagal Srinath, Zaheer Khan, Irfan Pathan, Munaf Patel, Sreesanth, R P Singh and so on. Srinath was not a regular trainee of the pace foundation. He was doing engineering and he used to come only when there was a break in his college curriculum. India today is more recognized for fast bowling than its spinners and that is largely due to the contribution of the MRF Pace Foundation. 

Mr Giridhar: Indian teamhas embraced change very well. It was not just Ganguly in the leadership role, but there was a group of leaders -Kumble, Dravid and Tendulkar. They listened to others. It’s critical to have a leadership team that embraces change. Today, sports analytics plays a very important part of life.   

Nowadays, when Indian team goes abroad, they boldly say that every pitch is like home ground and they take the pitch out of the equation. It is because we have an assembly line of many fast bowlers.  Sometimes a Kapil Dev comes despite the system and bowlers like Sreesanth come because of the system.

The Perth match of 2007 with Kumble leading India was one of our greatest wins. How Kumble and his team made that happen is a case study in itself. Similarly, Brisbane 2021 is one of our greatest test wins. Rahane displayed great leadership. Another interesting aspect of Indian team is that there has been a smooth transition from one captain to the other – from Ganguly to Dravid to Kumble to Dhoni to Kohli and to Rohit.

Mr Ramakrishnan: Without T A Sekhar, I wouldn’t have been where I am today. In 2009, I was a cricketer, aspiring to play for the country. I played for the junior state team and then, much against my wishes, got into banking. I joined Indian bank in the sports quota and played for Indian Bank for 13 years and then stopped playing. At 34, I was married and had two daughters. My neighbour started a payment gateway and he asked me if I could join them as a marketing manager. I didn’t like the banking environment which is not designed for high performance. So I resigned and joined the IT industry in 2000. After a month, the dot.com bubble burst happened and the payment gateway project was shelved. I was at the crossroads, having left the public sector job and lost my private sector job.  

Converging Sports & Tech

Henceforth, I decided to work on integrating sports and technology. In the initial stages, I looked at video motion analysis and then went on to introduce visual based coaching in India. That’s where T A Sekhar gave me an opportunity to work with the MRF Pace Foundation. I worked with Dennis Lillee and Sekhar and showed them what can be done. Initially, Lillee was sceptical of using software and technology in coaching but after I started producing results, he became a big fan of my work, which greatly augmented his coaching. 

From 2001 to 2003, I did a lot of analysis. We tried to sell licenses of the software but couldn’t. So I started providing services in sports and that really picked up. The coaches were happy doing their job as we could augment their coaching through feedback. There was an explosion of data. We captured that and provided to the athletes as feedback.  

Overcoming Resistance in Indian Team

Whereas in Indian cricket, they didn’t accept us. They made sarcastic remarks and tried to put me down, questioning the level of cricket I played. I told them that I have a great deal of respect for their skills and that I have a skill set which is different from theirs. The confidence of working with Dennis Lillee and Sekhar helped me. 

Indian Cricket coach John Wright asked me to make a presentation to the coaches on visual based coaching. Legends like Kirmani, Roger Binny, Kiran More and Prasanna were there. Originally, it was planned as a 45-minute session. But then, everybody liked the session and John Wright asked me to continue for the entire day. At the end of the presentation, he asked me to join the Indian team for a salary of 30K per month. No Indian would refuse the offer-though the money was less, I could rub shoulders with the greats in the dressing room. I was on board straightaway. 

French Fries and Samosas

When I joined the team, I asked Rahul Dravid about the kind of team meetings that happened. He said, “We all assemble in the coach’s room. French fries and samosas will be ordered. There will be an informal discussion for 5 minutes. We will say that the next day’s game is an important one and then disperse.”  I was surprised because even for the club games, we used to prepare better and here when national team met, the preparation was so informal.  

We went to Australia. It was my first tour with the Indian team. Sourav Ganguly was the captain. I asked Sourav how they prepare for the game. He said, “We all have played against each other and we will pass on the knowledge to the youngsters.” “Is there any data collector?” I asked and he said, “Nobody has done it so far.” I asked him if he knows anyone in ESPN and if he can get me the tapes of the Ashes series where Australia was beaten by England.  Sourav came to Australia, armed with 25 VHS tapes. I took them and spent my first week in Australia, fully locked in my room. I didn’t see the outside of Australia. I was working inside my room, digitizing those 25 VHS tapes and mining for information. For the first time in the history of Indian cricket, competitive intelligence was provided in a visual manner. 

Strategies from Data Analytics

While I was working with Sekhar and Lillee, I learned a lot about the nuances and biomechanics of fast bowling. But at the level of the Indian team, it’s strategy and gameplay, that will help the team to win. Wright told me, “Ramki, if I change somebody’s technique, nobody’s going to extend my contract. It will be extended only if I win the series, for which I must focus on gameplay and strategy.”

To derive strategies from data, I started collecting the data. The only way I could satisfy John Wright was to have a back-end data centre, recording all the videos. We were the first ones to have an exclusive back-end data centre. India is a hub of technology and we make the world follow what we do. The whole world is looking at what we are doing. We get great support from all the people- coaches, selectors and players.  We broke the myth that only Indian cricketers who played the game at the highest level can contribute to the team. We came up with a different concept of using data and analytics in coaching.

Mr Raghunath: Besides the action and technique in fast bowling, now they spend a lot of time on players’ fitness and diet and also ensure that fast bowlers don’t get injured.

Mr Sekhar: There was a time when the Indian team warm up used to be just five minutes. On fitness, we have learnt a lot from Australia, England and South Africa. Every player knows the importance of warm up warm, down, what exercises one should do and how to recover from injuries. Diet is a critical part of fitness. Balanced and proper diet helps in reducing muscle injuries. Tennis players like Djokovic or Nadal have personal dieticians and they also have a personal trainer. They spend a part of their earnings on coaching. Modern day sportspersons recover faster from injuries and see to it that their longevity in the field is enhanced. At the same time, they enjoy the performance on the field.

Mr Giridhar: Players must constantly reflect on their performance to improve themselves. Every good school teacher is a reflective practitioner. They help the children to be a better learner today than yesterday. Virat Kohli is a great leader. In 2014, he couldn’t score runs off Anderson. Then he reflected on his game, made infinitely important adjustments and in 2018, he was probably one of the finest batsmen of the seasons. He is very particular about fitness and diet. Thanks to leaders like him, the concept of fitness has percolated to Under-19 level too.  A leader inspires when needed- sometimes, being there in the front and sometimes, right at the back.

Former England captain Mike Brearley was a very average batsman but he was one of the greatest ever cricket captains. He was able to make sure that the gestalt happened- that the whole was greater than the sum of the parts. He could differentiate his handling of Willis and Ian Botham. Indian fielding coach R. Sridhar once said that one has to deal with Bumrah differently from the way one deals with Mohammed Shami. You have to wind up Shami, so that he becomes a terror on the ground. With Bumrah, you have to be careful because he’s very sensitive.   

Mr Ramakrishnan: Different captains have different leadership styles. For instance, Sourav Ganguly was a fantastic and a very strong leader. He had a command over the players, because he fought for the players’ rights and privileges and got them.  John Wright and Ganguly were the chief architects of high performance of the Indian team. They laid down the foundation for the cricket team to turn around. They followed work ethics. There was no north- south divide or senior players -junior players divide. Everybody was equal. The senior players went out of the way to make sure the juniors talked and share their opinions in tam meetings. Players came prepared for team meetings, with questions to be asked. Dhoni follows a very different leadership style. Both strongly believe that nothing is impossible. 

In Australia, everybody including the former players and media try to wear down the Indians mentally.  They used to put us on the Perth pitch, with the bounciest wicket, beat you in three days’ time and then, orchestrate their win. Normally, it is a 93-day tour. The players are 93 days away from their homes, their food and their culture. On the contrary, when Australians come to India, they play the test series, take a break, go to Singapore, relax and then come back for the T20 ODI series. But these days, India fights every session closely.

Mr Giridhar: Leaders must have innate courage and try innovative approaches.   

I recall in the 92 World Cup, Martin Crowe opened the batting with Greatbatch, who had never opened before that. Also, Deepak Patel, the spinner, opened the bowling for them. Ranatunga of Sri Lanka was also a very shrewd captain.

Mr Ramakrishnan: Fear of failure worries most players. When they fail, they come and watch their videos. I tell them, “Everybody analyses failure. Come and see the videos where you have achieved success; when you scored a century.” When they watch them fail, their anxiety levels are very high. Everybody wants to reaffirm that everything is right with them. Learning from success is more important than learning from failures. 

I recall that Sehwag scored a triple century in Pakistan and he dedicated it to me. When he was not scoring runs in Test cricket, I analysed his videos and noticed a change in his stance. I just brought it to his awareness. He corrected it and went on to score 300 runs. Though he dedicated it to me, that performance would not have happened without Sachin at the other end. Partnerships change the course of cricket.  

Mr Giridhar: Cricket is a game that consists of players with diverse skills and backgrounds. They come from different cultural backgrounds. Particularly, IPL has helped in players adapting to these diversities with foreign players playing in all the teams. 

Can there be a comparison between a cricket player’s career and a corporate career? Not really because, in a corporate career, when you fail, only a few people are aware of it. But in a game of cricket, when you fail, lakhs of people watch you. The pressure of playing is far higher than working in a corporate. You may get adulation and money while playing cricket but you can play only till you are 33 or 34. Some of them who are articulate enough, go to the media and some of them get into coaching, but that is a very small population. Imagine that out of 140 crore people, only 20 get to play test cricket for the nation. One failure with the bat or ball, you can be consigned to the reserves.  So there can be no comparison, at least for an Indian cricketer, with any other corporate profession. In the corporate, you have annual appraisals whereas Indian cricketers get daily appraisals done by 140 crore Indians.

Chennai Rains: Helpless, Hapless, or Hopeless

Read Time:10 Minute

Mr. S R Ramanan, Former Director of the Cyclone Warning Centre in Chennai; Dr. S Janakarajan, President of the South Asia Consortium for Interdisciplinary Water Resources Studies (SaciWATERs) based in Hyderabad; and Mr. T Kanthimathinathan, an expert on Water Resources, shared their insights on the water scenario in Tamilnad.

Mr. N Sathiya Moorthy

Apart from the rains in Chennai, this time we experienced heavy rainfall in the southern districts, which was unexpected. Tuticorin district, in particular, received very heavy rainfall. It is notable that people in Tuticorin typically do not welcome rains due to their reliance on salt and brick kiln industries, as rainfall can adversely affect their business.

Regarding the recurring issue of floods in Chennai, it is regrettable to observe that even after numerous decades of experiencing heavy rains, floods, and cyclones, we as citizens have not adequately learned our lessons. There is a tendency to shift blame onto whichever government is in power and to lament the lack of essential supplies such as milk, provisions, and electricity during periods of heavy rainfall.

Traditionally, every October first, I would stock essential items in my household, including matches and candles, in preparation for the rainy season. Despite knowing the history of floods in certain regions, individuals continue to purchase land and apartments in flood-prone areas. While it is true that the government sanctions such construction, we cannot solely rely on the government to manage all aspects of rescue and relief operations. In hindsight, it may be acknowledged that the government could have handled the recent flood situation slightly better. However, citizens also bear a social responsibility in such situations.

Mr. S R Ramanan:

Let me begin with the northeast monsoon. For rain or low pressure to form, winds from different hemispheres must merge. From the southern hemisphere, the easterlies cross the equator and become westerly, constituting the southwest monsoon. These winds interact with the easterlies of the northern hemisphere, leading to circulation. A single circle denotes low pressure; two, depression; three, deep depression; and four, cyclone. The convergence of air masses from different hemispheres creates low pressure, marked by the Intertropical Convergence Zone.

North of this zone, winds originate from the east, while south of it, winds come from the west. During the northeast monsoon, low pressure typically forms in the South China Sea, crossing the Malay Peninsula into the Bay of Bengal, intensifying into a cyclonic storm or, sometimes, a low-pressure system affecting our region. However, this year, such occurrences were absent. Despite Cyclone Michaung’s presence, no significant low-pressure systems developed. This made the monsoon season unique. The formation of a trough, another source of rainfall, also did not occur this year, unlike in 2007 when it brought widespread rain to Tamil Nadu.

The Upper Air Circulation

So, how did Tamil Nadu receive rainfall? Initially, air masses from various water bodies—Cape Comorin, Gulf of Mannar, and Bay of Bengal—converged over South Tamil Nadu, bringing significant rainfall. Occasionally, upper air troughs bring rain primarily to coastal areas, but this too was absent this year. Instead, easterly and south easterly winds dominated. An upper air circulation over the southwest bay, as mentioned in the official weather bulletins, contributed to rain along the coast. But the interior districts did not get adequate rains.

The formation of Cyclone Michaung, which approached Chennai, resulted in torrential rains. It did not cross Tamil Nadu but passed near Andhra Pradesh, wreaking havoc there. The upper air, steering atmospheric disturbances, came from the southeasterly direction, a rare occurrence.

Following the mid-tropospheric cyclone, characterized by its upper-level nature at a height of 1.5 kilometers, coastal Tamil Nadu experienced strong winds reaching speeds of up to 20 nautical miles per hour in certain areas, equivalent to 36 kilometers per hour. This led to copious rainfall across Tamil Nadu. Convergence of air masses facilitated the influx of moisture into south coastal Tamil Nadu, extending to the southern interior regions.

Cloud formations reached heights of 14 to 15 kilometers, indicative of the mid-tropospheric cyclone, which remains invisible at the surface. It is noteworthy that while the southeast monsoon is typically observed in states like Gujarat, its occurrence in our region is indeed a rarity. While rainfall was abundant in southern and northernmost districts, many regions experienced normal or below-normal rainfall. North interior Tamil Nadu faced particularly adverse conditions, resulting in agricultural challenges, especially in districts like Krishnagiri and Dharmapuri, heavily reliant on southwest monsoon rainfall.

Weather Prediction Models

Our weather forecasts rely on global models, which are typically more reliable in extra-tropical regions than in tropical areas. While forecasting in the tropics remains challenging, significant advancements have been made. Even in advanced countries like the United States, for tornadoes in tropical areas like Florida, they provide only a 40-minute advance notice, highlighting the difficulty of prediction in such regions.

These models excel in forecasting weather phenomena in the northern part of the United States, where weather systems are influenced by fronts—when cold air meets warm air, creating dynamic weather patterns. Winds predominantly blow unidirectionally from west to east in these regions, making predictions relatively straightforward. However, applying such models to forecast weather movements from, for instance, London to Paris is vastly different from forecasting weather across the entirety of India, particularly in tropical regions.

Despite the challenges, significant advancements have been made in global weather modelling. Institutions like the European Center provide forecasts for the entire world, while America utilizes the Global Forecast System (GFS) model for global predictions. India also leverages the GFS model, which is freely accessible and operational in various centers such as New Delhi and Pune. Additionally, both global and regional models are employed to enhance forecasting accuracy.

Reflecting on past events, in 2006, Bombay experienced significant rainfall, with Santa Cruz recording 93.5 centimeters. It underscores the importance of ensuring unhindered water flow to mitigate flooding risks. States like Kerala and cities like Mumbai have made preparedness for heavy rains. So implementing measures to manage water flow effectively and minimising the impact of inundation or flooding is a very important process of flood mitigation.

Dr S Janakarajan

We’ve witnessed numerous floods over the years, and the intensity of their impact appears to be increasing annually. Take, for example, the 2015 flood, widely regarded as one of the worst in 47 years. The increasing severity of floods prompts many to attribute it to climate change.

A crucial factor contributing to this trend is rapid urbanization. Urban expansion occurs at an alarming rate, often without careful planning. It’s important to recognize the intrinsic link between land and water, as they are closely interconnected. With unchecked urban growth, compounded by rapid industrialization, we’re witnessing the loss of land, agricultural areas, and crucial hydrological pathways.

Need for Integrated Planning

The encroachment upon these hydrological pathways worsens the situation. Areas previously unaffected by floods are now experiencing inundation due to this interference. It’s essential for all of us to acknowledge our collective responsibility in this regard. Addressing these issues requires comprehensive planning and concerted efforts to mitigate the adverse effects of urbanization on hydrological systems.

When water flows uncontrollably, we label it as a flood; however, when it stagnates in an area, we term it inundation. Poor urban planning and a narrow focus solely on development can have catastrophic consequences. Such approaches can result in severe floods and ecological degradation, exerting immense pressure on both present and future economies. It’s crucial to prioritize urban land use planning. Mere enactment of laws isn’t sufficient; stringent enforcement is required.

Despite having our first master plan and nearing completion of the second master plan by 2026, with plans for a third, it’s disheartening to note that we haven’t adequately learned from past experiences. We seem to repeat the same mistakes without applying the lessons gathered from previous plans. This lack of progress affects our ability to effectively address the challenges posed by urbanization and mitigate the risks of future floods and environmental degradation.

Every master plan should include the delineation of ecological hotspots such as streams, floodplains, water bodies, and wetlands—both inland and coastal. Developmental activities must be strictly prohibited in these areas to preserve their ecological integrity. Unfortunately, this crucial aspect has often been overlooked in past plans, leading to adverse consequences. It remains uncertain whether this will be addressed in the upcoming third master plan.

Failure to protect critical ecological zones has resulted in dire outcomes, as witnessed in the Ennore region, where extensive encroachment on coastal wetlands has led to flooding, extending even to north Chennai. The Pallikaranai marshland, which historically spanned 54 square kilometers, has been reduced to a mere 10% of its original size due to encroachment. The marshland serves as a vital flood buffer, but its loss has contributed to the worsening flood situation in the area.

An integrated approach is urgently needed, one that considers land management, water management, flood management, and drought management comprehensively. Efforts must focus on conserving water at its source and protecting both upstream and downstream watersheds. Only through such holistic measures can we effectively address the challenges posed by urbanization and mitigate the impacts of flooding and environmental degradation.

Way Forward

Master Plans must undergo thorough review, with a specific focus on declaring ecological hotspots. Furthermore, these plans should be integrated with drainage master plans to ensure effective water management. Ad-hoc construction of stormwater drains must be strictly prohibited, and layout approvals should only be granted after considering the drainage master plan.

Efforts to conserve water at its source are paramount, as they offer numerous benefits including flood mitigation, enhancing climate resilience, and facilitating the development of climate-smart cities. This can be achieved through initiatives such as tank restoration, desilting, deepening, and increasing capacity.

Implementing Nature-Based Solutions (NBS) within urban areas and the Chennai Metropolitan Area (CMA) is essential. This includes the creation of water detention ponds, constructed wetlands, temple tanks, green parks, urban forests, green roofs, and mangroves. Additionally, there must be a concerted effort to protect natural wetlands, both inland and coastal, ensuring their preservation for future generations.

Mr T Kanthimathinathan

The focus of urban planners often leans heavily towards development without due consideration for water flow management. Many areas in Chennai, such as Mambalam, Nungambakkam, and Nandambakkam, were once lakes. Most errors happened because of flawed land use policy. Many agricultural lands got converted to other uses.  I had personally overseen 20,000 cusecs of water release from Chembarambakkam lake, when I was in office. At that time, there was no flooding, simply because the floodplains were intact.

However, encroachments on floodplains have become increasingly common. Take for example, the Housing Board in Kotturpuram. It is a government construction on the floodplains. Areas like Manapakkam and Nandambakkam were also floodplains. These are expensive areas but when there is flooding, water levels rise up to window lintel levels in these areas.

It is important to implement a master drainage plan before embarking on any urban development initiatives. However, many lands necessary for water flow are owned by private individuals, who have obtained approvals and puttas for development. These floodplains were historically designated as agricultural lands even during British rule, aimed at boosting productivity. Post-independence, importance was given first to green revolution and subsequently to housing drives. However, waterway considerations took a backseat.

Unlike states like Karnataka, Andhra Pradesh, and Kerala, which benefit from the Deccan Plateau terrain conducive to reservoir construction, Tamil Nadu predominantly consists of plains, limiting such opportunities. Hence, our ancestors constructed over 45 minor irrigation tanks, which are now neglected and often filled. The development of areas like Lake View Road, Valluvar Kottam, Nungambakkam, Mogappair, and Padi happened in this manner only.

‘Out of the Boat’ Solutions

As we have neglected waterbodies and other flood prevention measures, now we have to defend ourselves against future floods. For this, it’s crucial to have reliable flood alert and early warning system, along with an effective response mechanism. The government has undertaken various mitigation measures, no doubt. But we can place more emphasis on converting water bodies into navigation canals. When there is a flood, our people find it difficult even to get onto a boat as they are not used to boat travel. If we can, for instance, convert Buckingham Canal into a navigation canal, it could offer cheap and eco-friendly travel from Thiruvanmiyur to Mahabalipuram. When we can construct metro rail systems, we can also look at navigation canals. Implementing water-based transportation systems akin to those in Kerala, could offer viable solutions for daily commute from Velachery to Sholinganallur in boats. 

In Search of an Ideal MSME

Read Time:10 Minute

Authors Dr Sharad Sarin, Retd Senior Faculty, XLRI, and Mr G M Kapur, Management Consultant, in conversation with Mr Hariharan S Ramamoorthy, Managing Director, Srimukha Group; and Mr S Ravi, Director, Buildcraft Interior Pvt Ltd.,

Dr Sharad Sarin: 

Based on our study of several MSMEs over many years, we have categorised them into 5 groups:

  1. We call the first category the stillborn baby. These are babies that need incubation. Unfortunately, incubators were not available in India many years ago. So many MSMEs died.
  2. The second category is born-sick baby. These are the biggest drain on our country. The Hindustan Engineering Corporation in Ranchi was established in 1958 by Pandit Jawaharlal Nehru. It was his pet project but till date, they have not been able to revive it. HEC is an example of this category.
  3. The third category is healthy babies, remaining small. To grow from small to big companies, a lot of effort is needed. There are many transparency and accountability issues. It’s very difficult to manage a team and then a family.
  4. The fourth category is healthy babies aspiring to become successful. We have many such examples, including companies in Jamshedpur. This is the best of the five.
  5. Then comes the fifth category, which is also something bad: Healthy babies facing failed aspirations and accidental death. They didn’t want to fail, but something happened. Entrepreneurs may have appealing ideas but if there are no takers in the market, they can’t be developed.

We have many role models to succeed in business. JN Tata, for instance. Till date, Tatas are dedicated to the society. Their sole purpose of business is society. Mr. Narayana Murthy, Azim Premji are also role models who guide us. Mr. Narayan Murthy used to teach computers in IIM Ahmedabad. He got admission in IIT, but his father did not have money to support his education there.

Mr Narayan Murthy carried his team and that is one big reason for the success of Infosys. Their camaraderie was clear from day one and they were clear that they would make money only through honest means. Mr Murthy had just 10,000 rupees in his pocket. Now look at his wealth. Sudha Murthy wrote a postcard to JRD Tata that they were not hiring women mechanical engineers. It is a mystery how that post reached him. Tata questioned his team, and she joined Tata Motors. That is history. These are inspiring stories and case studies.

MSMEs must focus on the growth vector, where they can grow and become better. Sustenance and creating sustainable differential advantages are the keys. Every organization requires direction from time to time and ideas to grow. In this, there are two modes: expansion and diversification. Our view is that, as far as possible, stay in your own business. Don’t try to diversify unless your business has run out of steam, where you have no opportunities. Perhaps expansion would be a better route, but otherwise, avoid diversification, especially mindless diversification.

Mr S Ravi: The term MSME originally meant micro, small, and medium enterprises. There have been significant changes in laws, guiding principles, and accounting practices. Recently, the micro and small have been differentiated from the medium category.

When the MSME Act was introduced, in the Samadhaan scheme, we could go online and file a case if there were outstanding dues. Initially, for six to nine months, we were able to recover our money. However, within a year or so, they modified it such that you could only file a case, only if the outstanding value was one crore or more. I understand that this needs constant review and upgrade, but there are certain aspects, where I think, it fails to serve the purpose of the MSMEs. The value of the rupee has been depreciating over the decades. Therefore, those overseeing it need to adopt different perspectives at different points in time.

Mr Hariharan S Ramamoorthy:

MSMEs are the backbone of our economy. However, is the government truly recognising their importance? I believe there are significant gaps. Almost 90% of MSMEs in the country fall within categories 1, 2, 3, and 5 of the babies listed out by Prof Sarin. Rarely, we have companies in category 4, which is, healthy babies aspiring to become successful.

One reason for this is that conglomerates like the Tatas or Ambanis have extensive backup, background, and support systems. While rare exceptions exist like Mr. Narayan Murthy, who started small and grew, most MSMEs in India require substantial support.

Empower the Micros

Over the past decade, with the current government, considerable efforts have been made. I represent an all-India volunteer organization called Laghu Udyog Bharati, which works extensively with MSMEs. Despite these efforts, can we truly compare an MSME in India with one in Korea or Japan? Recently, a Korean company we engaged with for technical discussions, considered themselves an SME, though they have a turnover of about 950 crores. It speaks of the kind of forward-thinking approach of countries like Korea. While we shouldn’t blindly copy and replicate their strategies, we must adapt and innovate in our own Indian way.

With 95% of MSMEs in the micro sector, 3% in the small, and less than 2% in the medium sector, our focus should be on empowering the micro sector. By strengthening this sector, we can drive significant growth across the country.

The Challenges

However, there are challenges, including stringent laws such as the Basel II norms and NPA norms, which make it difficult for businesses to recover from even minor setbacks. If payment to banks is pending for 90 days, it is treated as NPA. Section 43H mandates MSMEs to make payments to vendors within 15 to 45 days, while the current payment cycle often extends to 90-120 days. These issues require careful consideration.

Despite challenges, there is immense growth potential for MSMEs in the country, especially with initiatives like the China plus one policy. The next decade holds promising opportunities, and we must capitalize on them, aiming for substantial growth and development—If not to become Ambanis, but at least trying to move in their direction.

PLA Needed for MSME

Another concerning trend is the decline in manufacturing within MSMEs. Over the past 10 to 15 years, the percentage of manufacturing companies among MSMEs has decreased by more than 30 to 40%. This is alarming, as it may lead to increased reliance on imports from countries like China or Korea. Relying solely on trading rather than manufacturing domestically is not sustainable in the long run. There is a pressing need for government support for the manufacturing sector.

For instance, while the government has been providing incentives through schemes like the PLA scheme, these benefits are primarily directed towards large corporations and not MSMEs. It’s crucial for the government to extend such schemes to MSMEs as well, as it would provide a significant boost to productivity in this sector.

We have suggested to the government for the introduction of a new category called ‘shishu,’ for companies with a turnover of 40 lakhs per annum. 90% of MSMEs fall within this category. Additionally, we have proposed the implementation of ‘Small Factories Act.’ Under this act, companies with fewer than 40 employees should be exempted from ESI and PF obligations, although insurance coverage should still be mandatory. Imposing all draconian laws on small companies is impractical and burdensome. Our laws must suit our current business models. It’s essential to tailor regulations to the needs and capabilities of small businesses to promote growth and sustainability.

Dr Sarin: If we analyse the growth trajectory of Maruti around 1983, we can observe that they cultivated a robust network of sub-suppliers. Such extensive networking will be imperative on a large scale for the growth of MSMEs. Additionally, we are of the firm belief that certain laws are stifling the growth of MSMEs. What we truly need is an enabling environment that fosters growth and innovation.

Mr Hariharan: Our organization Laghu Udyog Bharati welcomed Section 43H and advocated for its implementation. There’s unanimous agreement on this because micro and small industries are severely affected by delays in payments from medium and large corporates. However, the issue lies not with the act itself but with its implementation. Immediate compliance is simply not feasible.

We’ve had discussions with the Honourable Finance Minister, proposing a phased implementation approach. We suggested starting with big corporates and government bodies, then moving to medium enterprises, followed by small ones. Micro-enterprises should be given a grace period, perhaps one year. The government has taken our suggestions seriously.

What we lack in our country today is effective implementation, rather than innovative ideas. Additionally, there’s a significant gap in how micro-enterprises respond to government policies. For instance, initiatives like the ONDC and GeM Portal, designed to be game-changers, are primarily for micro and small industries. Regrettably, not many MSMEs, especially from South India, are utilizing these platforms. This highlights a gap between the North and the South. When the government is making substantial efforts, MSMEs need to step up and take advantage of these opportunities.

Presently, the Ready Made Garment (RMG) segment is being dominated by Bangladesh, causing severe impact for our MSME members in Tirupur. Many of them are experiencing a complete loss of business due to competition from Bangladesh.

Prof. G M Kapur: Prof. Sarin and I pondered on ways to prevent the failure of MSMEs. Hence, we conducted a study on failed industries. It’s crucial for every entrepreneur to not fear failure. You’ve likely heard of Kanwal Rekhi, the founder of The Indus Entrepreneurs (TiE), who prefers to support failed entrepreneurs. According to him, they have valuable experience in running an enterprise and learning from past mistakes. So, don’t fear failure.

Today, micro-industries are benefiting from microfinance, enabling their survival. Previously, banks were reluctant to cater to this category. I recall State Bank of India’s differential interest rate scheme (DIR), offering a 4% rate for microfinance around 50 years ago. However, the government wasn’t actively promoting it then. Additionally, borrowers were less committed to repaying loans. Contrastingly, today’s microfinance recipients are running more efficient businesses, although on a smaller scale, and promptly repay loans.

The Prime Minister once remarked that a business can include even one that makes pakoras. Many viewed his statement facetiously. But the fact is, a company named Wow Momos in Calcutta started from a small shop and they are a 2300 crore company.

Undoubtedly, challenges abound, and no business journey is without hurdles. There are always governmental issues. However, I believe today’s government is more industry-friendly and receptive, rather than merely paying lip service. It’s essential to acknowledge the steps taken by the government to address these challenges.

Talent acquisition, retention, and development within MSMEs pose significant challenges. However, if you have growth plans and are willing to share the benefits with employees, you can attract and retain talent effectively. This is my perspective.

Dr. Sarin: Two driving forces in the world of MSMEs are technology and globalization. Technology, in all its forms, is immensely relevant. Regardless of size, all MSMEs need to excel in both technology and management. I recall Asian Paints, which was among the earliest adopters of technology in India back in 1947. Their early adoption has contributed significantly to their unrivalled position in the market today. The key lesson here is not to shy away from implementing technology.

Mr Ravi: What would you rate as the critical factors for the success of MSMEs?

Mr Hariharan: To thrive as an MSME, having some level of uniqueness in your product is essential. Engaging in a cost war is unsustainable in the long run. Adaptability is another crucial aspect. In the automotive industry, there was initially resistance to the idea of transitioning from internal combustion engines to electric vehicles (EVs). However, EVs now represent a significant opportunity. While we might have earned 50 or 70 rupees per part with IC engines, the potential with EVs could be 300 or 400 rupees. But are we adequately prepared for this shift? MSMEs need to be technology-oriented to seize such opportunities.

Dance of Disruption and Creation

Read Time:16 Minute

Authors Mr Nandu Nandkishore, Former Global CEO, Nestle, and Mr Neeraj Chandra, Business Advisor and Former COO, Britannia, discuss about innovating for change in the age of disruption and the opportunities it can create.  

The discussion also included Mr V Balaraman, Past President, MMA & Former MD, Ponds India Ltd, Mr Srikant Sastri, Chairman, I3G Advisory Network & Co-Founder, Crayon Data, Mr K Mahalingam, President, MMA & Partner/Director TSM Group of Companies, Mr Lakshminarayanan Duraiswamy, Managing Director, Sundaram Home Finance Ltd and Ms Shuba Kumar, MD, Natesan Synchrocones Pvt Ltd.

Mr Nandu Nandkishore: Technology, and technology induced societal changes have been the biggest driver of changes that we have seen in the last 150 years. Some of the resulting societal changes are very dramatic in their impact. I’ll just highlight three of them. 

Beware! We are Ageing

The first is ageing. We are used to a society with a few old people and a number of young people. Today, that pyramid is getting inverted in developed economies. Even in India, if you draw a line between Srinagar and Hyderabad, everything to the south and west of that line, you can see that the birth rates are already below replacement levels and societies are aging dramatically. That line is moving northeast steadily at a few kilometers every year. We don’t realize it today. India has 100 million people who are older than 60.  In China, people who are above the age of 60 who are already retired and are non-existent under social security run to 300 million. One in every four Chinese is not part of the economic universe in creating value anymore. No wonder, China has all the economic issues that they are facing. 

India probably still has three decades of demographic dividend before the young people also become old. Africa is still very young. In the year 1900, one in every 25 human beings was African. By 2050, one in every four human beings will be African. The demographics are changing. In one part of the world, a lot of old and aging people will be driving consumption. In another part of the world, the traditional youth will be driving and shaping economic opportunities.

Urbanisation: Urbanization is the second big trend. When I started working, in India, 15% lived in urban and 85% lived in the rural areas. Today, 40% of India live in urban areas and this is accelerating worldwide. Globally, one in every two human beings now lives in a city. Cities are incredible engines of change and they influence demography, culture, ideas, religions and new thought paradigms. 

Institutions: The third change is in institutions. The family, the role of the state, the religion and educational entities are all being disrupted. Institutions are being unbundled and recreated thanks to the internet. Historically, your profession was determined by the profession of your family. All of a sudden, education is no longer the preserve of the family, but it’s the result of the state of meritocracy, which gives you the freedom to choose the profession that you excel in.  Global migration is an interesting driver of this change.

Mr Neeraj Chandra: Gautam Buddha said that what we think is what really determines what we do. We see that happening in a variety of ways.  Alvin Toffler said many years ago that technology is a great growling engine of change. The mobile phone is perhaps the most profound technological shift that has happened. The phone has grown to be used by two thirds of the world’s population and has become fundamental to life. Around 2007, the first iPhone came out and you had the birth of apps that enabled a lot of benefits for the consumer. The democratization of phones happened and suddenly the phone became a symbol of identity. As we go further, we see the dimensions of connectivity, transforming many things. 5G is enabling better latency levels. We are seeing waves of technologies and each wave is a consumer pivot, around which, people have seen opportunities.  

With phone, we get connected. But more importantly, it has helped us realise our purpose. If somebody opened an app, others think of it and create new applications. The power of technology is yet to be tapped fully. Formal studies by McKinsey show that two thirds of the benefits of even older technology are still lying on the table, because industries haven’t taken them ahead.  

Technologies today combine to create larger effects. Some of them are totally unintended. In 2005 or 2006, when Facebook got its 1 million consumers, who would have thought that the little chatter groups would become the foundation for today’s marketing industry or politics? We see opportunities which we haven’t even seen before.  

Ms Shuba Kumar: We fight wars in the world today in ways that we’ve never imagined so far, using the unmanned aerial vehicles, colloquially called the drones. We have seen them in marriage functions and in a lot of creative applications for the consumer. There are also a lot of serious applications like in agriculture, where we can plant seeds and spray pesticides. We can use them for surveillance and in construction to monitor progress. For transportation of packages, there are successful trials by a number of companies. In essence, our imagination is the limit to application of technology.

When 9/11 happened, to counter the terror threats, expensive drones that cost almost $60 million were pressed into service. But what we see in the Russian war is very simple drones, which are similar to the commercial drones. On top of these, they put the warheads. In defence, they use drones both for reconnaissance and for surgical strikes. It has brought in a level playing field for a number of countries, because they don’t need a large budget and fancy equipments. They can take simple drones and weaponize them to achieve significant damage or impact. This is creating a number of challenges and opportunities. 

Drones have been around for a very long time. But what has changed now? We have now miniaturized the cameras, the GPS and the equipments. Costs have come down and we have economies of scale.  The second thing is that the regulatory change has happened. Most countries today have regulations around robots and AI. There are commercial applications that are allowed. The third part is, the society has changed. We have new materials and new battery technologies. We have swarm drones to do very complex tasks that cannot be done easily and effectively. There are technical challenges that need to be solved for using drones in transportation of human beings.   

Mr Neeraj: The point is, through technology, we have the ability to do different things and to do things differently. It helps our imagination take wings. We use technologies to impact society and thus create disruption and opportunity. Also, the changes in society create a disruption for the enterprises. The fundamentals of a society are changing. Anytime, anywhere and assisted living are the new paradigms. Consumers want hyper personalization. As an enterprise person, if you live up to these trends, which are fundamental shifts, you get an opportunity. Mama Earth is one brand, which has got a valuation, in a short period of time, in excess of 13,000 to 14,000 crores. We may question the valuation, but there’s no denying the fact that they have made an impact. They’ve lived up to the trend of how people want to buy and shop. They have come up with the concept of personalized products, while a lot of giants in personal care haven’t moved. The concept of leisure and entertainment has changed dramatically.  

Mr Srikant Sastri: It is important to remember that even unexpected and traditional industries are getting disrupted. The earliest example was an iconic company like Kodak, which was riding high in the late 1990s. Suddenly, by 2012, they declared bankruptcy because they were just blind to the fact that digital cameras were throwing them out of the game. They became complacent. In a country like India, television channels, we thought were evergreen, but Disney is planning to sell its entire entertainment business and merge it with Reliance. The automobile industry thanks to EV is in for serious disruption. Cement companies will get disrupted because of advances in material science. Things like geopolymers are coming in. We don’t know what will happen to the traditional cement.

Every business is getting disrupted and they need to be watchful. During COVID, I was involved in leading a task force, mentoring two young engineers to design and build an ICU ventilator and bringing it into the market in 90 days under the lockdown condition. MNCs like Philips, GE, typically take 18 months to move from idea to market. We could do it in 90 days. It requires a different mindset and the ability to orchestrate a team of people, who are very agile and willing to work 24 x 7, irrespective of the geography they are in. This will be the new paradigm of working in future and large companies have to watch out for this trend.  

Mr Neeraj: So, what should be our action mantra? We need to reimagine in many senses, our value spaces and enterprises. The urban infrastructure requirement is 5 trillion a year on a worldwide scale, which is largely in the developing world. 70% of the greenhouse gases are released by urban centers. We know the air quality challenges that Delhi faces and for which, solutions need to be found. These are mother loads of change and opportunities.  

Mr Srikant Sastry: Innovation is not just for startups. Innovation and reinvention are absolutely needed for large enterprises too. It is not a question of survival, but opportunity. Can I use this to propel myself into a higher orbit? That’s the big question. We have examples all around us. Bill Gates stepped down in January 2000 as the CEO of Microsoft. For the next 14 years, the share price of Microsoft remained very low. During those 14 years, Microsoft did not reinvent itself. It was slow to the mobile and cloud computing game. They got left behind by Amazon Web Services. In 2014 February, Satya Nadella took over as the CEO, came in with a fresh pair of eyes and perspective and transformed the company. Today Microsoft is one of the most valued companies in the world.  

More often than not, it’s the leadership that makes a difference. Steve Jobs came back to Apple and transformed it. When Ratan Tata took over the Tata group, it was a sleepy giant, but the sleeping giant went global under him. Reliance is a great example of how a mammoth industrial company could become one of the biggest consumer businesses under Mukesh Ambani.

Mr Neeraj Chandra: It’s not only the private enterprises that have been impacted by disruption. The biggest impact of disruption for betterment is seen in the public space- the government space. The Aadhaar card has changed lives based on a technological practice, applied across different platforms and largely supported by the government. Similarly, we have seen the UPI phenomenon. ONDC is another area, which is coming up. These present opportunities for governments in a variety of ways.   

Mr Nandkishore: One the things that companies can do to manage disruption is the leadership stance that they take. Traditionally, companies have an inside-out stance. Based on the strength and core competency, they decide what they can do. Today, you’re almost called to reverse that and take an outside-in stance. Look at what else is happening out there, what new technologies are coming, what new capabilities are enabled by technology and therefore, how do you need to remodel the organization? How committed are you to really change? If Steve Jobs wasn’t committed, he would not have launched the iPhone, because the first business the iPhone killed was the iPod, which was his cash cow. You must have the courage to disrupt your current business model. That’s not easy and it is a huge call. That’s one reason why Microsoft in the initial days, was hesitant to get on the mobile and cloud computing domain because they were afraid to cannibalize what they already had. 

The second tension that comes for companies isn’t the traditional S curve. The big tension is: Should I focus on value creation or value maximization phase? Many of us in my generation grew up as growth managers, because India was growing and our companies were growing. Our job was not to reinvent the wheel. We just had to make sure that the business model grew as fast as possible. Value maximization was the name of the game. Today, you need both value creation and value maximization. How do you play both games?  The third big challenge is to create an organizational culture that allows you to play the two different games at the same time. You must create managers and leaders who are ambidextrous, who are able to learn and play two different games. 

Mr Neeraj: What is your perspective on the role of ESG and DEI? 

Mr Nandkishore: Sustainability is probably the biggest economic opportunity that our species has ever seen – moving from a linear business model to a circular business model. Without diversity, you aren’t going to get value creation. 

Ms Shuba Kumar: From an organization perspective, we are a net contributor of green energy to the grid. We have taken some steps towards water neutrality. Sustainability, I believe, is a journey.  

Mr Neeraj: What is happening in the automobile and real estate segments? What is changing there?  

Mr Mahalingam: Covid dramatically changed the way many of the businesses are run. Work from home had its implication on the commercial real estate industry. There was immediate fear that people would continue to work from home and there would be a glut of commercial space. But it has not played out that way. It definitely stunted the growth in the short term. But it did two things. As people started the hybrid model of working from home and office, on the residential side, people now look for slightly larger apartments. It has redefined the way buildings and apartments are designed. There is also demand for independent houses and land. This has made land prices shoot up.  

The other thing has happened is the startup environment. People who are not able to afford large commercial spaces, look for co-working spaces. So, dramatic changes have happened in the commercial real estate, residential real estate and the land industry businesses, which we are in.  

On the automobile side, pre-covid, the technology enabled Uber and Ola drove the shared transport model and private car consumption went down and we were really worried. But covid put a fear of the hygiene factor and people started going back to private cars. Covid changed many things -for both good and bad. There’s now a big fear that EVs are going to replace fossil fuels in cars. I don’t see it happening in a hurry because many factors like the battery life and resale values are getting established in the industry. At the same time, it has thrown up loads of opportunities in the service side, in the charging infrastructure, etc. The biggest beneficiary is the startup ecosystem, where we have young people, who have no fear of failure. They are experimenting and creating opportunities for themselves. I think it’s a wonderful time to be in any business or industry. I look at it very positively.

Mr Neeraj: Are changes happening only in the elite part of the society or the larger part of society?  

Mr Lakshminarayanan: Three things play out in disruption and technology. One is the digital penetration. Look at the number of devices that are being sold in the country. The second thing is the large middle-aged population that India has. The third is the rising per capita income in India.  


It’s not just the technology per se that is disrupting a lot but the adoption of technology that is driving the change. Earlier, we used to get technologies 15 or 20 years after they came to the West. Now that lag has disappeared. In fact, in some of the spaces, like digital payments and Aadhar network, we are the leaders in the world today. None of these are isolated changes. They all have an impact elsewhere. For instance, we never thought we could be sending money to smaller towns to the bank accounts of our customers. The digital payment has enabled that. We operate in tier four and tier five towns in the lending space, where our customers are traders, electricians, carpenters, and self-employed workers. All of them accept digital payments. They are banking customers and that helps us to get a credit score for them. The credit score enables them to access bank finance. Thus, the benefits are multitude.

Today when the Reserve Bank talks about the surge in unsecured lending or small ticket lending, it is not because people are suddenly borrowing more. The fact is that all these people who were otherwise borrowing through unconventional means, are now becoming formal borrowers because banks and financial companies like us are quite confident of lending to them, as we see a track record. Today, everything is formal. The smaller towns pay GST. Everything is coming to formal economy.

The ultimate beneficiary of a lot of disruptions that we are talking about is the consumer. We don’t need to go to a customer to do a KYC or a lending transaction. We do a video KYC with the customer. We can do a WhatsApp video with the customer. The customer logs in and shows his PAN card and other documents. We can conclude a transaction digitally and the customers get the money wired to them. Payments come back to us through UPI or digital modes.  We’re also talking about artificial intelligence, blockchain technology, etc. This means, the real change is yet to come in this space.  

Mr V Balaraman: I have been watching the space of darknet with some apprehension. I am also worried, as darknet is obviously part of the economy today. What we do not know is the percentage of the economy that the darknet represents and where it is growing. You no longer need to be geographically within India to commit a crime. That is totally frightening.

There is one other aspect which puzzles me. The economic growth in India seems to be far more than the government estimates. The tax collection is growing. I never imagined that the Indians would love to pay more tax. My village is as well connected as Chennai is because the mobile phone substitutes for everything else. There is an element of growth in India that I believe has still not come to the surface. We will all be pleasantly surprised with that.

Beyond Three Generations

Read Time:14 Minute

Authors Mr M S A Kumar, Family Business Advisor, and Mr Navas Meeran, Chairman of Group Meeran, in conversation with Mr C K Ranganathan, Chairman & Managing Director, CavinKare Pvt Ltd and Mr Tatwamasi Dixit, Founder Chairman, Family Business Research International Centre (FABRIC).  

Mr Kumar: Navas Meeran and I know each other for the last 20 years. Eastern Condiments is the company started by his father Meeran Sahib. Navas is a second-generation family business entrepreneur and he is very simple and unassuming. After building the business, three years back, they sold Eastern Condiments with an enterprise value of around 2000 crores to Orkla. Navas continues to be its CEO. From the third generation, his son has also joined the family business.   

Mr Ranganathan:  I am happy that the authors of the book have discussed eleven other successful family business companies apart from the Meeran group.  I like the seven C’s, which are prescribed by them for any family business or entrepreneur. Even professionals need to know these seven C’s, which are Clarity, Commitment, Consistency, Courage, Cohesion, Competency and Compounding for scale up. If you do the first six Cs right, the seventh one, which is compounding for scale up, will follow. The six are interrelated. It has a positive synergy effect. One feeds into the other.

Running a business successfully is not easy. A lot of people start a business. But the failure rate is very high. It is around 70%. In this context, taking a family business up to the third generation is a big task. History says that the third generation actively destroys wealth. The first generation builds the business. Their son and daughters carry the values from the first generation, as they have risen from the bottom of the pyramid. But the third generation doesn’t experience the pain at all. They grow up with the affluent mindset. Often, they are pampered.  They have no hunger. They don’t need to work. Everything is given to them on a platter. That is why, family business running successfully up to the third generation is a miracle. I am also intrigued by the fact that many companies prefer to remain small.   

Fail Fast but Cheap

Experimentation is a way of life. That’s a very important foundation for any business to grow. A flourishing environment is created when failure is not punished. We only learn from the failures. In our company, we have one very important philosophy: Fail fast; Fail cheap. We have started embracing it in the last four or five years and there is no looking back. We were able to do multiple experiments.  

There is no sense in spoiling your future for the mistakes of your past. Forgive yourself, grow from it, and then let it go. While we must not brood over past failures, we must ensure that we don’t keep on doing them. The cohesion among family members and between family and professionals is also important, without which businesses, have failed. Finally, you must have the courage and risk-taking ability to scale up the business. 

Mr Tatwamasi Dixit: As a child, I was deeply influenced by two great scholars—Chanakya and Confucius. Chanakya said that if you want to be happy, you have to follow your dharma. In India, each human being is supposed to have some Swadharma.  A carpenter’s son becomes a carpenter, a teacher’s son becomes a teacher and a businessman’s son becomes a businessman. This has been the dharma of this country and the basis for family business. The family business concept originated in India, but unfortunately, we did not have a scientific framework or a research structure. We did not have support from educational institutions to do all the research. Thanks to the Western contribution, there is so much of literature available in the field of family business, because the universities there largely support them. 

India started to wake up to the concept of family business in late 90s when John Ward came to India and started educating everybody about the family business. Chanakya goes on to say that if you want to follow your dharma, you need money. It’s very important to make money. I have worked in the West where the big wealth creators are big business houses and they are revered and respected because they say that they build the country’s economy. But in India, the businessmen are not respected. They are perceived as if they loot.

Debt-based Model

It is difficult to build a business in India, because India has been a debt-based economy. We never had capital in this country to build the business. The equity was never available. Building a business by taking a debt is not an easy task. Chanakya further says that if you want to build a country, then you have to build an economic model, which can continuously support a country. That is possible only if you support family run businesses. The Vaishya community have been deeply working to build the business framework in this country.

Confucius says that the family, not the individual, is the basic unit of the society. Family is more important than any individual member. Harmony is the most important value for all family members. The will of the individual must be subordinated to the family group. Children must be taught to restrain individualism to maintain harmony in the family. Today, there is too much of individual identity and family is slowly disintegrating. The concept of joint family system has been facing a lot of challenge and nuclear families are taking over.

Fading Away Through Generations

As the authors have mentioned, only 13% of the family businesses transition to the third generation and only 4% of the family businesses go to the fourth generation and beyond. It’s a very tiny number. By the third generation, the entrepreneurship dies in the family system, because they have so much money. 75% of India’s GDP comes from family run businesses and 85% of the businesses are family businesses in India. That underlines the significance of family businesses. 

I have found that the first-generation entrepreneur has a clear purpose and it is to meet the economic need of the family. But from the second generation onwards, their purpose is not curated. The only purpose they find is that their father or grandfather started the business and so they need to support them. What makes the family businesses special is that the older family members are working together. That’s how the family business story comes alive. One big differentiator is the ownership dimension of the family business. 

Parallel Strategy

There is a strategy in the family business concept called parallel strategy for ownership, where we look at three things. One is: what is the control I want to have as an owner? The second is: what kind of growth do I want to have? And third: what is the liquidity as family members, we are all looking for? There is a big trade-off between these three all the time. If you want to grow, you must be ready to dilute to create the growth. If you’re going to dilute, you’re always going to be challenged by the controlling stake in the company, which will start going down.

You must have a dividend policy. The family members expect dividends to support their lifestyle. In larger organizations where there is a great CEO, then the CEO will prepare the business plan and the family business owner can prepare the ownership strategy plan. They both have to interact with each other. That’s how the business grows from generation to generation. If there’s going to be disharmony between the owners and managers, it’s going to invite troubles.

Four Roles

There are basically four roles the family businesses have. The first one I call as owner managers, where you are involved in the day-to-day function and you are driving it. The second role is an owner strategist, where you have a CEO to run a day-to-day operation and you are only involved at a strategic level. As the generation becomes deeper, the family members grow. The third role is called owner governor, where you are only on the board as a governor. The fourth one, which is common in large families in Europe, is where they do not have any interest -either to be as a manager or a board member. They are pure investors and shareholders.

If you do not create an alignment between these four different roles within the family members, where some of them are working and some of them are not working, it will be a huge challenge to perpetuate the business from generation to generation. Each one has a different expectation from the family business. Amidst all these things, there’s always a conflict running between the family members.

Hats Off

I want to quote a case study. A father and son were not getting along with each other. They worked for 10 years together. I and my colleague happened to work with them in Europe. One day, the father called his son. He wore a hat where it was written ‘Boss.’ He said, “Look, I’m not happy with you. So, you are being fired from this role.” He gave him a pink slip. After one minute, he took out that hat, wore another hat where it was written ‘Father.’ Now, with this hat, he asked him, “Son, I believe you are just being fired and I am very sad for you. How can I help you?” These are two different roles.

There must be governance to ensure harmony in the business. India is going through a great transition. Globally, many businesses are changing hands. We are going through a situation called, ‘a great wealth transfer.’ About $68 trillion is changing hands. At this juncture, so much of research literature must come out in India on family businesses and it is the need of the hour. 

Mr Meeran: I feel sorry for the third generation. If you shoot from a revolver and there is a 0.01 mm difference at the starting point, you can imagine what will be the difference at the 100-meter level. That is the curse for the poor third generation.   Many of the family run businesses tend to push the issues under the carpet. They don’t have the courage to talk about succession, about letting it go and about value unlocking. When you’re creating value, you must know how to unlock it, so you can enjoy it. If in a family of four brothers, let’s assume that the third one is the most entrepreneurial. But in the Indian condition, when succession happens, only the eldest is going to rule the business. The wives of the brothers may bring in their own conditions. These are some of the challenges of running family organizations.  

Mr Ranganathan: Other than the seven C’s, how important are the family values in holding the family together?  

Mr Meeran: One of the groups which we studied is Orange County. They decided to get into the niche super luxury resorts and created an SOP. Eventually, that SOP became the values of that organization. Underneath every business journey, there is a strong push and support for value system, which the family inherits. That is non-negotiable.  

To give an example, one day, my dad was upset with a mistake committed by a family member but he was very angry with one of our lower-level staff, whom he knew, had not committed the mistake. During lunch, he called that staff and asked him, “When I was angry with you, why didn’t you tell me that you were not the guy who did that mistake?”. The staff said, “Sir, when you shouted at me, the person to whom it should have been told to, was also listening to it. So, I did not think it was necessary on my part to say so.” That was the maturity shown by a lower-level staff. My dad told this to me once and said, “In organizations, we must never abuse people.”  

We have more than 40 to 50 people who are with us for 25 years. Even if somebody works with us for a decade and moves out, they’re treated as family and they have the liberty to come and have a cup of tea with us, though they probably might be working with the competition. That is the power of values. 

Mr Kumar:  In the case of Orange County, they focussed on three things: positioning, purpose and partnership. They positioned as super luxury resorts. If you go their resorts, say in Coorg or Hampi, it may cost 60 to 70K a night, but still people flock there. The positioning led to certain ground rules for everyone and evolved as a practice. And that, over a period of time became their values. Informally professional is also one of the values in organisations. 

Mr Dixit: You have written about the concept of mindset for long haul. What do you mean by that?

Mr Kumar: In the case of Eastern, Navas’s father Meeran Sahib had the mindset to start the business. He passed it on to his son Navas who wanted to expand the business. In funding internally, there were restrictions and he decided to go for private equity. It again reflects the mindset. We always say the battle is not lost in the battlefield but the minds for the soldiers.

Mr Meeran: Lack of clarity is one of the major issues which troubles the entire organization. In the last 3 years, I’ve taken out my entrepreneurial cap and worn a professional’s cap. I am working as per contract, for Orkla as the CEO of Eastern. Having been an entrepreneur, to be in a professional CEO’s role and doing the same things, sort of bores me. But top line and bottom line have gone up extremely well.

As an entrepreneur, we keep experimenting and may lose 4 to 5 crores, launching new products and failing in the market. When you talk about long haul, you must be clear about what you’re trying to achieve. What will drive the business at the end of the day? A top line of 2500 or 5000 crores always fascinates people but ultimately, if it is not backed by bottom line, there is no fun in it. Those businesses with less margins and less of profits, will not survive.

Business owners have the moral responsibility to protect the profitability of their business because if profitability comes down, it will have a social impact. I’ve got thousands of people working with me. These are the people who are immediately getting affected, if I have a problem with the organization. We need to carry in mind that in the long haul, if there are too many verticals, they need to be balanced.  

Mr Dixit: With one of my clients, the father takes all the decision and the next generation is fed up because the father doesn’t want to let go of any decision. One day, I had a session with the next generation and said, “Why don’t you think in your mind that your father is working for you? Think that you have done a reverse delegation. It’s good for you.”  

Mr Kumar: The next generation should not think that their father and grandfather are useless and that they have done nothing. He or she is sitting on a platform generated by the father and grandfather. The responsibility lies with both sides -the previous generation and the next gen. 

Mr Meeran: The second generation, when they join the business, must create a strategy within their mind. They must have the patience to talk to the father, at a time when the father is in a good mood. My dad and I used to have arguments. A very senior friend of my dad called me once and said, “You’re talking about strategy and you have not seen money. Your father has seen money. You have to be within the boat to navigate it, rather than being out and saying that my dad is not doing it right.”

I’ll tell a classic case. We had a brand logo, which was outdated to the core. If we had to scale up, that was not the logo. If I go and tell my dad, he would not accept. So, what I did was, I took photos of most of the big brands and placed the old Eastern brand alongside, all one in poster. In another poster, I put the newly designed logo and placed both in my dad’s room.  When he came there, he asked my wife, “What is this?” She said, “I don’t know. But Navas was telling that this is the old Eastern logo and this is the proposed new Eastern logo.” He just had a look at it, called me and said, “The new logo is approved. Start working on that.”

Breaking the Glass Ceiling: Chasing the Dream

Read Time:14 Minute

Three achievers from traditionally male dominated sectors discuss about what it takes to build their dreams and catalyse change.

Ms Roshni Raju, Founder, MED-bites Pvt Ltd led the conversation with Ms Archana Kalpathi, Creative Producer/CEO, AGS Cinemas and Ms Rohini Manian, CEO, Global Adjustments.

Roshni Raju: We are privileged to say that the metaphoric glass ceiling extends beyond gender. It encompasses the multifaceted struggles, obstacles and barriers that individuals face, when striving for excellence in their professional journeys. Today, I hope to dive into some interesting stories by Rohini and Archana, who have defied conventional limitations by setting up their respective businesses and by challenging the status quo and redefining success. Rohini, you had a brief stint in Daimler before joining Global Adjustments; and Archana, you were offered roles in IBM, Google, and had a brief stint in turning around hotels before starting AGS cinemas. How was your journey? How did you get to where you are? 

Archana Kalpathi: I come from a family business. My family was into the IT and IT services industry. I’m a computer science engineer and that’s what I studied. We sold our business to Rakesh Jhunjhunwala. My first project was in Ooty. It was the old Dasaprakash hotel. My dad said, “Why didn’t you go and turn it around and flip it?” That was given to me when I was 21. I was living in Ooty by myself. There was a lot of fun.  I got to learn many aspects, because real estate, as Rohini would say, has a lot of nuances to it. There are government approvals and handling contractors and vendors. For hotels, you need to learn a whole new skill set. So that was my first project. We bought the hotel, renovated and then sold it. 

Roshni Raju: After that, how did you enter into multiplexes and movies?

Archana Kalpathi: I like design. I like managing and running hospitality. I love movies. The old Royal Theatre came up for sale for four crores. I convinced my dad to invest in that. I told him we have only few multiplexes. Satyam had renovated and Inox had just opened. I thought it was a good idea to have a multiplex chain in Tamil Nadu. So that’s how the idea started. 

Rohini Manian: Archana and I went to school together and it’s nice to reconvene over here. My story is a little similar. My family was in infrastructure. My grandfather started an infrastructure business. By the time I was ready to join the workforce, my father had sold our infrastructure business to one of the world’s largest players Eurabia. From there, he got into real estate. When I came back, I thought I needed to have a little bit of professionalism and work with an MNC. So I joined Daimler. I realized very soon that my passion was real estate. Now I always say my first love is real estate. That’s how I ended up joining the family business.

Roshni Raju: What change have you brought into your companies or to the industries that you’re in?

Rohini Manian: I’ve taken it global. We were always focused on India. Now we have a global market. We look at real estate, focussing on India, Dubai and the United Kingdom. That was a very big change for us. The second thing, we’ve incorporated technology and automated a lot of things and made the process more transparent for our customers. 

Archana Kalpathi: I have been in this business for about 17 years now. It’s a long journey. The movie business was very fragmented when we started. There were multiple small players. Now, there are a few larger players in the multiplex space and the movie making business has transformed. We have corporatized it to a reasonable extent. In both our production houses, we don’t deal with cash. That is one of the biggest changes that we have made. We’ve also been working with the government to try and get industry status for the film space as well. It’s a long way to go but these are baby steps. 

Roshni Manian: Today, technology and AI are impacting different industries. How are you adapting to that change? 

Rohini Manian: Being a much younger person, the first thing that I had to do was to earn the respect of all the people who work for us. They worked for my mom and dad earlier and I had very big shoes to fill. I had to know my industry really well. You have to know twice as much, if you have to get other people’s respect. After I worked on that, I could value add to the team. I brought in the changes by automating things through software. I got a good company to come and develop our own app. Our customers have real time information. Everything is now much faster and smoother.

Archana Kalpathi:  We have to be very current and relevant. Because in cinema, everything changes. AI and tech are very big things for us. 15 years back, even projection was not digital. It was analog. Now it’s all digital projection. The amount of VFX that is being done in films now is very high. Out of two hours and 40 minutes of a movie, 90 minutes is CG (Computer Graphics). The way films are being shot now has changed. It’s all green mat. We are in the process of rolling out artificial intelligence-based production studios, which is going to be the next big thing. The whole concept of making a set and shooting in the set will go. It’s all going to be virtual reality production. 

AI is also taking away a lot of jobs in our industry now. We used to have colourists and artists. Right now, there is a strike in the US where they are opposing a lot of companies from moving to AI and insisting on having people in the workforce. It is a challenge for us. But cinema has always been at the forefront of adapting, because audiences will catch on to it very quickly. We have to always do the latest.

Roshni Raju: It’s difficult to stay current without losing your current position. Gaining respect and trust, I would say, is part of the metaphoric glass ceiling. Do you have any anecdotes you can share with us of how you went through that experience?

Rohini Manian: When I decided to join global adjustments, I was very young. I had to give respect and listen to my team. I had to make them feel that I’m an ally and I really care about the amount of work and effort they put into our companies. They are the core and backbone of our company. That was something that I did. The second thing is, I worked twice as hard, so I got to know more. Once you know more, people respect you and it’s much easier and smoother to work together.

Archana Kalpathi:  I was privileged, because I was lucky that my parents had enough money to invest in my idea. You also need to get a team to trust you. For that, you need to consistently show up every day, irrespective of whatever happens. Failures do happen. But I build trust by breaking things, then fixing it and then breaking it again. I continue to do so. That’s how you can end up finally breaking the glass ceiling. 

Roshni Raju: Can you tell us one of the things that you broke and fixed?

Archana Kalpathi:  When I built the first multiplex, I didn’t know I had to get 14 licenses from the government. I just thought I needed a building approval. I got the CMDA approval. When I went for a C form, I was told that I needed all the other approvals. I was 22 or 23 then. It took me a year and a half to go and sit with every officer and apologise to them. I told them I made a mistake and asked them how to fix it. My family had no idea about the business either. So, no one could come and fix it for me. You learn by making mistakes. You must have the courage to face it as well. 

Rohini Manian: I tried to start various other businesses by being the investing or the silent partner. With three of my businesses, I just had to cut my losses and hence shut them down. I’m also lucky that I had the ability to do that. But it taught me a very important lesson on doing what you’re really good at. I have decided that anything I do will be allied to real estate.

Roshni Raju: One similar point that the three of us have is that we were all pretty young getting into business. I was 24. You both were around 21. The age definitely was not on our side when we were starting business. But starting early, I felt like half the battle was won, in any arena that I was in. 

Archana Kalpathi:  I’m super thick skinned. It doesn’t get to me at all. In AGS, we have a policy of dressing up in uniform: T-shirt and jeans. I’ll be at the box office or at a concession selling popcorn and some customers would have an issue and start screaming. I would go and tell them, “Can I help you?” They will say, “Please call the manager or someone senior.” I can’t tell them that I own the place. But honestly, that’s wonderful. 

Rohini Manian: I used to go to a lot of international conferences on real estate and relocation. At 22, when I introduced myself as the CEO, people would be curious as to what this kid was trying to do.   

Roshni Raju: How do you balance motherhood and professionalism?

Archana Kalpathi: I’m quite forgiving myself. I am blessed to have a very understanding spouse and that is half the battle won. He is not a very traditional spouse. He carries half the load. He’s a co-parent in every sense. I’m lucky for that. But it is tough. Sometimes, I would take my child with me to work. I believe that for women to be able to progress, you have to see your child as a part of you. I would never feel embarrassed to take him with me to my office or let him run around and do his own thing. 

Rohini Manian: I went back to work when my daughter was nine days old. I never took time off, since then. I have a really supportive family. That was very helpful to me, especially because I’m a single parent. It was very important for me to have that support system. I’m still figuring out the mom guilt. But my daughter is also very understanding. I tell her that I have to go to work and that’s my responsibility like school is hers. 

Roshni Raju: How do you unwind? We said that there is no work-life balance. I definitely struggle drawing the line between bringing work home and making sure that my kid doesn’t realize that what happens at work stays at work and what happens at home stays at home. But do you have any sort of meditative activities or any unwinding things that clear your mind at the end of the day?

Rohini Manian: For me, it’s fitness. I really enjoy the one hour that I do- kickboxing or my workout or anything like that. It gives me that release. It gives me the space. Also, I love to spend time with my dogs. I have seven of them. 

Archana Kalpathi: I hardly get much time and I think in my industry, you definitely need mental health. I read a lot. That is my way of unwinding. I just love to read. Now I end up reading a lot of scripts. 

Q: You are part of the cinema industry. How do you encourage diversity and inclusion within your organization?

Archana Kalpathi: It is very difficult to achieve diversity because we are about 95% men in a film set. But what we are trying to actively do is at least get interns from various colleges to come and do internships in production departments. With cinemas, it is relatively easy, because it’s like any other hospitality business. With respect to making films, I am actively looking for young directors and young DOPs (Director of Photography), so the team will always have at least one or two women. We, as a company, insist that they take and we provide a very safe environment for them. It’s a responsibility for us because we travel across the world. We put them in situations where it can be unsafe. That’s an extra responsibility. But I think we need to do it, because I want to see this at 50% at some point. 

Q: In navigating the fields of business and culture, what strategies have you found effective in promoting gender equality and breaking barriers?

Rohini Manian: In our office, I’m happy to say my entire leadership team is women. One of our core things is encouraging women. We have a foundation where we champion women. We are very keen on gender equality.  When we are hiring, we have a full diversity policy, where we look at taking people onto our team, who have special abilities. We’ve been successful in doing that. It goes a little bit with our value system and culture.

Q: Can you share specific strategies or initiatives you have implemented to break the glass ceiling in the entertainment sector? 

Archana Kalpathi: I don’t think I’ve yet broken that. I am taking small steps. Being a producer, I listen to stories and make sure that people actually watch it. If I can have at least 50% women on our production teams, then I may consider myself breaking that ceiling. 

Q: How do you contribute to the empowerment of women in the healthcare sector?

Roshni Raju: I don’t quite provide jobs in the healthcare sector. Mine is more in the marketing space. I look for graphic designers, 3D artists and content creators who are females. I look for doctors, especially women, who are in the second phase of their life, where they’re balancing a family and are no longer able to practice and so they’re able to write. I do encourage women empowerment.

Q: How do you see the intersectionality of gender and cultural intelligence, playing a role in leadership?

Rohini Manian: We work with 89 nationalities. At any given point in time, we’ll have about 30 different nationalities of customers, of different genders and cultural intelligence. It’s all about having emotional intelligence. We’ve trained our team to respect and understand different people’s cultures, thoughts and opinions. 

Q: How did you overcome challenges in the traditionally male dominated film industry to reach the position of CEO at AGS cinemas?

Archana Kalpathi: I think, with a lot of luck. I also think I didn’t give up on consistency, hard work and showing up every day. 

Q: Did you face significant gender biases in your industry when you entered? 

Archana Kalpathi:  We can’t let it affect us. That is where being thick skinned helps. No one should be able to stop you from doing or achieving your dream, because you have one life, and you have one chance at what you want to do. 

Q: As a founder of a content production company in the healthcare sector, what advice do you have for aspiring female entrepreneurs looking to break through in this industry?

Roshni Raju: Turn up every day, and be consistent with what you’re doing. When I started medical marketing seven years ago, it was a taboo, because ethically, you cannot market medicine. But today, people are moving around to the mindset of educating and propagating a message in medicine. 

Q: How do you see the future of multiplexes in the era of OTTs?

Archana Kalpathi: The future is quite bright. There was a slump, right after Covid. But now people are back to the theatres. In fact, for producers, OTT is a big boon. For theatres, there was a small dip, but now they are getting the maximum amount of revenue for any cinema. I think OTT will probably find its own space, just like how satellite TV did at one point of time. Theatre is a social experience because you come on a date, with your friend or your family. 

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