CEOInterviews.AIKhas Mulaqat :Emami gurup Chairman R S Agarwal

H

Host0:36

Namaskar, today we have two very special guests: the chairman of the Rs 45,500 crore Emami Group, Shri Radheshyam Agarwal, and his close friend and co-chairman Shri Radheshyam Goenka. Welcome to CNBC Awaaz. You have written a new book 'Business the Emami Way'. I want to discuss how you built this business and what lessons others can learn. First, thank you for your time. I wanted to start with leadership. Usually in family businesses or partnerships, bitterness develops. What keeps you two connected? You named your house 'Advait' meaning not two. I would like to hear from you.

R

Radheshyam Agarwal2:18

Bitterness arises from competition, jealousy, envy, malice, and attachment to one's own children. Kama, krodha, lobha, moha, matsara are the roots of all diseases. We have been studying since childhood, so bitterness has not increased; sweetness has increased.

H

Host2:55

Your book shows the relationship between you two is exemplary. Let me ask Goenka ji, what is the biggest quality you like about Agarwal ji?

R

Radheshyam Agarwal3:24

In relationships, the tendency to give is important, not to take. Goenka ji follows this principle completely. He is filled with divine qualities.

H

Host3:51

Goenka ji, what is the biggest quality of Agarwal ji in your eyes?

R

Radheshyam Goenka4:06

Agarwal ji is very frank. He speaks his mind clearly. Sometimes it may seem bad, but it is his biggest quality. Everyone appreciates it.

H

Host4:24

As a leader, you speak what comes to mind. Many leaders don't say it for fear of hurting others. How do you tackle that?

R

Radheshyam Agarwal4:59

We read a lot of books. Speak what comes to mind with clarity. If you do diplomacy, that is your biggest mistake. Tell people their mistakes. Give so much love that they become yours.

H

Host5:44

You had a big early setback with Chemco, and later the hospital scandal. How do you tackle such things and what lesson did you learn?

R

Radheshyam Agarwal6:26

We have great faith in God. Nothing seems wrong because the doer is God and our well-wisher. The biggest lesson was recognizing who is with you and who is not. In bad times, you recognize enemies and friends.

H

Host7:10

After a short break, we will continue the discussion with Agarwal ji. Stay tuned on CNBC Awaaz.

Welcome back. We are talking to Radheshyam Agarwal and Radheshyam Goenka. Agarwal ji, you wrote a couplet: 'We have decided our destinations this way: we fell, got up after falling, and walked after getting up.' Goenka ji said bad things teach us. How do failures and difficulties inspire you to move further?

R

Radheshyam Agarwal8:03

In life, everyone faces failure. How you take it determines your future. We have faced many difficulties. God gave us fewer because we kept growing. We have a rule: if a business is in loss and can never be profitable, close it immediately. That is the biggest lesson from failure.

H

Host10:00

You have used willpower, attitude, and persistence. The importance of willpower: when you have a definite purpose, you will do it. Napoleon Hill and Dale Carnegie teach that. As much loss, there will be profit. Discipline is important. Indecision is bad.

You wrote about ten bad habits to watch out for. How can a person recognize and get rid of them?

R

Radheshyam Agarwal12:15

We have rules of business governance: no alcohol, hotels, non-veg. Simple living. In the family, all decisions about jewelry and purchases are made by Goenka ji. There is mutual understanding. Rules are clear, so the group is governed.

H

Host13:00

You wrote that decision making should be timely and communication prompt, but also collective participation. How do you balance that?

R

Radheshyam Agarwal13:24

We have a family meeting every 15 days. Everyone sits, minutes are taken and sent. There is equal participation. But there must be a head who listens and decides. In our family, that is me. Discussion is allowed up to three times; after that, no argument. Without a decision, business cannot move forward.

H

Host14:35

Our discussion will continue after a short break. Keep watching CNBC Awaaz.

Agarwal ji, a common concern for leaders: what if the decision turns out wrong? How do you tackle that?

R

Radheshyam Agarwal15:25

A leader will have some wrong decisions. That applies to business, country, the world. Like Obama gave away nuclear weapons and now worries. These decisions come with progress. You should not think too much about it.

H

Host16:00

What is the most crucial thing to focus on when working?

R

Radheshyam Agarwal16:12

Details. Know the details of the work. Professionals today don't know details. You should do the work yourself and go into its details.

H

Host16:39

How do you manage time when running such a large empire?

R

Radheshyam Agarwal16:54

Time management is possible. We don't have sycophants. Our friend is Radheshyam Goenka. We play cards every Saturday. Avoid sycophants.

H

Host17:44

You once lost all your capital. How important is money management and tracking it?

R

Radheshyam Agarwal18:10

Money management is very important. We have a monthly MIS and accounts system. We now do physical inventory verification. We learned from that mistake. Also, quality: we personally check every product. Branding is important; we use stars like Amitabh Bachchan to make products memorable. Our company was small, so we needed that.

H

Host19:52

A big competitor, Baba Ramdev's Patanjali Group, has entered the market. How do you see that?

R

Radheshyam Agarwal20:07

Baba Ramdev comes to our home often. He has started work. He mostly sells ghee and flour. I respect him. He should move forward. Managing such a big work is not simple.

H

Host20:56

I admire your courage. Let me end with a couplet from your book: 'We escaped the storm with our courage, but some people drowned with the help of the boatman's courage.' Thank you both very much. Radheshyam Agarwal and Radheshyam Goenka, who have risen from the ground to the sky. Special thanks to you both.