CEOInterviews.AIFAMILY BUSINESS - EMAMI SE KYA SEEKHEIN?

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Interviewer0:08

Namaste, you are watching CNBC Awaaz. This is a special offering about the Emami Group and family. Family businesses drive India's economy; 90% of GDP comes from them. The Emami story is unique: two friends, two partners, three generations working together. This is a story of friendship, trust, courage, and high spirits. Radheshyam Agarwal and Radheshyam Goenka started in 1974 with ₹2,000, faced losses, but persevered. They launched Vanishing Cream and Talcum Powder, then Himani Limited, Boroplus, Navratna oil. By 2005, Emami was listed; in 2008, they bought Zandu. Today valuation exceeds ₹30,000 crore, spanning cosmetics, edible oil, paper, cement. Agarwal and Goenka are about 70, but the next generation is ready. How do three generations run such a large business together? Agarwal Sahib, thank you for your time. First, how do you handle differences and run this together?

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R. Agarwal3:01

After B.Com, we decided to start a business. We had a shop for cosmetics and general items. Radheshyam's father gave us ₹2,000, which was lost in two months. We went to him and said the business failed. He said, 'This is Shiva's seat; once opened, it never closes.' So we continued, and even today we are together.

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Interviewer3:58

Goenka Sahib, you are a marketing master and an execution master. But with such a large business, decision-making must be centralized. There must be disagreements. How do you handle that?

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R. Goenka4:24

Differences of opinion happen, but never a clash of minds. We have accepted RS Agarwal as our leader. What he says is final. No argument after that.

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Interviewer4:49

When expanding into many sectors like FMCG, paper, health, how did you decide where to go?

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R. Agarwal5:10

We assess potential and market conditions. Mr. Agarwal had the vision; he decided the direction. He thinks, we both execute.

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Interviewer5:29

Preeti, how have three generations managed to work together so seamlessly? How did you acquire such grassroots consumer knowledge?

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Preeti Agarwal5:57

Our ultimate guru is Papa. Through him, we met many experts. His mantra of understanding people at the grassroots level is a key pillar of Emami's success.

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Interviewer6:36

How do you maintain discipline and avoid turf wars when heading different verticals?

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Aditya Agarwal7:09

We have harmony even in the second generation. We were taught to give, not take; to work together. There is strength in a fist, not in a finger.

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Interviewer7:29

Agarwal Sahib, what is your view on the debate between family ownership and professionalization?

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R. Agarwal7:59

The blend is crucial. We didn't make a professional the CEO. Instead, we formed an advisory committee of family and top professionals like Rishikesh Bhattacharya and Shekhar Mitra. They can't interfere. We have written rules: no liquor, no pan masala. Everyone follows.

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Interviewer9:34

You are strengthening the family model and working on succession planning. What exactly are you planning?

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R. Agarwal9:58

We will strengthen the family model and bring in professionals. Ultimately, control remains with the family. We adopt professionals as family members.

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Interviewer10:36

What about women empowerment in the family and business?

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Preeti Agarwal10:57

I never believed in a 'men's world'. Papa never discriminated. He included me in business from childhood. Women are now aggressive and coming forward brilliantly.

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Interviewer12:01

After this success, what is the next big dream?

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R. Agarwal12:39

A 5-year plan to take FMCG valuation from ₹32,000 crore to ₹1 lakh crore. We need to focus on a few products and specialize.

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Interviewer13:10

So you advise focusing and not diversifying too much. How would you describe your big ambition?

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R. Agarwal13:36

Exactly. With limited resources, you can't do everything. Our core is FMCG. Cement also has potential; a 4-million-tonne unit is starting in December.

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Interviewer14:29

We discussed this at Mr. Agarwal's home. After a short break, we'll continue.

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Narrator15:04

The Emami group's foundation is friendship. The second generation understands this. Radheshyam Agarwal's children: Preeti, Aditya, Harsh. Radheshyam Goenka's children: Rachna, Mohan, Manish. Sushil Goenka is MD; Prashant Goenka handles international marketing. Preeti and Harsh handle FMCG; Aditya works on strategy; Mohon sales and distribution; Manish with Aditya as think tank.

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Interviewer16:17

Mohan, your numbers are amazing. How have the last 3 years been?

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Mohan Goenka16:38

Listed in 2005 at ₹300 crore market cap; today almost ₹30,000 crore. Last 10 years: 100 times returns. We focus on innovation and customer needs; returns follow.

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Interviewer17:28

Harsh, what acquisitions are you planning?

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Harsh Agarwal17:38

We are looking for more acquisitions in India and internationally. We are in discussion with several companies.

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Interviewer18:26

Given the international environment, how is India's export business doing?

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Prashant Goenka18:39

International business is a huge focus. We are moving from the Indian diaspora to local populations in the Middle East, CIS, and Africa. High growth prospects.

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Interviewer19:32

With global ambition, how do you define your brands?

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Harsh Agarwal19:48

We focus on big brands: Navratna, Boroplus, Fair and Handsome, Zandu. We will concentrate on these in India and internationally.

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Interviewer20:32

To reach the ₹1 lakh crore target, what are your priority growth areas?

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Mohan Goenka21:01

New product launches, identifying consumer needs, and e-commerce to reach new consumers quickly.

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Interviewer21:39

What about other businesses like newsprint, paper, edible oil, cement?

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Aditya Agarwal21:49

Combined turnover is about ₹7,000-8,000 crore. Edible oil is ₹5,000 crore; paper ₹500 crore, soon to be ₹1,000 crore. We are largest in newsprint, third in edible oil, top three in ballpoint tips. A 4-million-tonne cement plant is coming.

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Interviewer22:44

Is talent acquisition a challenge being in Kolkata?

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Mohan Goenka23:00

It's a challenge but not a hindrance. We offer flexibility, remote work, and an office in Bombay. People are coming back to Kolkata.

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Interviewer24:17

What is your view on philanthropy and CSR?

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Aditya Agarwal24:43

India has always had a culture of giving, often discreet. We have always done far more than mandated CSR. We invest heavily in art to preserve culture and support artists.

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Interviewer26:35

Do big ideas come from outside consultants or from this team?

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Mohan Goenka26:58

Both. Our team goes to the market. Consultants bring clarity and confidence. Even when small, we involved top minds like Raju Hirani for ads.

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Interviewer28:29

Preeti, is the next generation expected to join the business?

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Preeti Agarwal28:58

They have opportunities here, but also freedom to pursue other dreams. Seeing us work together inculcates the example in the third generation.

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Narrator29:42

The family's passion for art is evident. Emami promotes new artists. Richa handles the art wing.

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Interviewer30:15

Richa, as head of the art wing, what do you do?

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Richa Agarwal30:25

We have a 15,000 sq ft gallery, expanding to 60,000. We promote modern, contemporary, and traditional Indian art. Monthly shows, annual achievers award. Our office building features art to celebrate Bengal's heritage.

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Interviewer31:36

Your home is an art gallery. Tell us about it.

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Richa Agarwal32:32

Papa's first buy was a Ganesh Loi for ₹8,000 thirty years ago. Art is addictive. We have works by Satish Gujral, Dashrath Patel. Our home blends modern and traditional art.

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Narrator34:00

The Emami family works hard and enjoys vacations together. Hobbies range from cooking to sports. They value Indian traditions and faith.

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Interviewer34:41

Aditya, is your friend circle also the family?

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Aditya Agarwal34:54

Yes, we grew up together. We have a card group and travel together. During Durga Puja, about 50 of us go on a family vacation for 7-8 days and have cookouts and activities.

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Interviewer35:31

Who cooks well among you?

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Aditya Agarwal35:33

This one (pointing) is the chef. He guides us. Harsh is also a good cook.

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Interviewer36:21

What is your specialty?

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Aditya Agarwal36:27

I make both Indian and continental. Harsh also has great interest.

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Interviewer36:43

What other common interests do you share?

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Mohan Goenka36:45

We love playing cards (not for money), watching movies, traveling. As Aditya said, we've been together since childhood.

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Interviewer37:00

Are you into sports?

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Mohan Goenka37:05

Very much. My daughter got a hole-in-one in golf at 11. We also won national championship in bowling.

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Harsh Agarwal37:28

I play golf. My daughter also has interest. Hole-in-one is a big thing. We also used to bowl and won national championship.

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Interviewer37:49

Richa does great art work. Apart from business, what other dreams do you have, Mohan?

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Mohan Goenka38:05

Business keeps us busy. Personally, I enjoy exercise and travel. We take small vacations, including a yearly family trip.

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Interviewer38:58

Which business area excites you most?

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Mohan Goenka39:16

Marketing and sales have been our forte for 17-18 years.

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Interviewer39:38

Did the idea of using Amitabh Bachchan and Shah Rukh Khan come from you or Mr. Agarwal?

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Mohan Goenka39:43

From him. He first signed a film star in 1983. All film star ideas came from him.

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Interviewer39:57

Which companies do you respect most among competitors?

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Mohan Goenka40:07

We study all, learn from every company, big or small.

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Interviewer40:35

Building lasting organizations for purpose is more important than valuation. The Emami family seems ready for the fourth generation. I conclude this discussion.