CEOInterviews.AIFamily Matters & More @Emami On Weekender, CNBC-TV18

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Host0:02

CNBC TV18 Weekender. Welcome back to the third and the most fun segment of the Weekender. Yes, we're in conversation with the family of Emami. All right. Now, let's talk about distribution. You guys have been talking about 0.8 million direct reach in this fiscal. The question that we get asked is: 8 is a given, 1 to 1.2 by when? What are the targets beyond that 0.8?

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Mohan Goenka0:29

So this year we have taken a very aggressive target. We were at almost 6, and from 6 to 8 itself is a big task for which we need almost 400 to 500 frontline sales guys. And we would be able to do that by March. After we consolidate all this, then we will take the next step because as I said, 2 million outlets, particularly from the rural belts. So as of now our target is to reach 2.8 million only this year. This year and after that obviously distribution will be very important for us. So we'll keep increasing, but our benchmark is not how much what others are reaching. It will be our strategy; our numbers will depend on what we believe is the right number for us.

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Host1:23

Now let's get into the family business or rather how the family manages the business. You all started the business with both Mohan and your father coming together as friends and starting this business. You guys are the second generation. You all said that you have been going to office since school and college. Are your children going to office as well right now? What are they doing?

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Mohan Goenka1:45

My kids are studying in the US right now, and after they come back I'm sure they would want to either start on their own or join the family business. I hope my son is in the US now. My daughter is in class 10. But once they come, eventually the kids will start coming to office quite early. So the Emami Limited FMCG business for the next foreseeable future is going to be managed by the family itself. I wouldn't like to say that we have anywhere even now very senior professionals working in the company. All our HODs, even some CEOs, are working there. So our role is there; we do get involved in some of the areas where we believe we can add value. The edible oils business is doing fairly well, one of the most fastest-growing brands there.

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Host2:40

Why wouldn't you merge the? And you were right now talking about the margin, you know of a healthy margin of 27%. Now you cannot expect that kind of margin from the edible oil business. So why do we want to dilute our margin?

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Mohan Goenka2:48

So no scope for internal restructuring right now for the growth. Not at all. Not even in the Emami limited business.

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Host2:56

No brands that you believe are ripe for some sort of de-merger? No, why should there be merger of anything?

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Mohan Goenka3:01

Don't fix anything that isn't broken.

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Host3:04

No not at all. Yeah. Don't fix anything that's not broken. Sure. Okay. So talking about not being broken. The one thing that hasn't been broken is the bond that both the families enjoy. How do you all manage that?

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Mohan Goenka3:13

It's a very natural flow. Very natural flow till now. In fact, if something doesn't happen on a single day, if you don't have lunch together the same day, if I'm busy or if I don't have lunch with them, the same kind of thing. These are very simple things which come naturally to us but it has a big impact. Every day we all have lunch together, the whole Goenka and the other family, absolutely all of us. So Mohan, myself, my elder brother, his younger brother, all of us. So we have lunch together. That's the time when we discuss all sorts of things, business, personal, just general topics, everything. So we spend so much time together. Similarly, such things are there which ultimately improves the bond. We have all played together, we have grown together, so all these things have come naturally. Ultimately, honestly, though the surnames might be different, we believe it's one family.

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Host4:19

All right, may that bond stay as always. You're fond of books. Which was the last book you read?

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Mohan Goenka4:24

I'm reading Competitive Advantage by Michael Porter.

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Host4:29

And your biggest competitor in the space right now?

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Mohan Goenka4:32

My biggest competitor is Patanjali Kesh Kanti.

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Host4:35

Now Patanjali Kesh Kanti, how much market share do they have?

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Mohan Goenka4:37

See, Nielsen doesn't report them correctly because they sell mostly through their own store. So it would be wrong of me to quote any figures out there.

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Host4:46

Mohan, you're a fitness freak. I understand. Which of your brands right now according to you needs a high-intensity interval training? HIIT as you call it.

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Mohan Goenka4:54

Fair and Handsome.

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Host4:57

100-meter dash for Emami versus a marathon for Emami. What are the targets?

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Mohan Goenka5:01

So as short-term, we have to grow at about 15%, we need double-digit volume growth. That's our immediate target. And in the long run, as we said, 5,000 crores in the next 3 years. That's our 3-year target.

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Host5:16

All right. But great life, great family, great food and a great company. Wish you all the best. It was a pleasure talking to all of you.

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Mohan Goenka5:21

Pleasure. Thanks a lot. Thank you. Thank you so much.

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Host5:27

See on BCTV18 Weekender.