Founder & Joint Chairman, Emami Limited
Making It Big Season 3 - EMAMI Part 2
Two childhood friends Radhe Shyam Agarwal and Radhe Shyam Goenka set up Emami some four decades ago. The Emami ...
Transcript (12 segments)
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Narrator0:02
This is for you, now you have grown up. Welcome to the show. Emami built on traditional Indian values, keeping customer interest in mind. Little wonder Emami became a house name. This company seems to have an X factor.
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Sandeep1:12
To understand the X factor, I have 66-year-old Radheshyam Agarwal, an apple of radiance in Kolkata. Mr. Agarwal, welcome to the show. I'm asking you, is it normal to see most business families split when it comes to the second generation? And in bitter cases, do two friends stay together?
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R. Agarwal1:36
A business is not just about being together. Goka, a friend, not a brother, but we complement each other. Differences can happen, but heart differences cannot. We discuss everything. The children grew up well bonded. Relation means equal bond. We set up a search panel for succession. We believe the best person should be chairman, but in a family, best is a matter of judgment. One should be human, sweet, responsible, able to keep money. We have a code of ethics: no alcohol, no non-veg food, no hotel industry, no stock market speculation. It's recommendatory, not obligatory. We want to make money but not at cost of health.
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Sandeep5:13
Yes, coming back to the company's operation, how did life change for Emami after you acquired Zandu Pharma?
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R. Agarwal5:16
Zandu is a big name for over 100 years. We acquired it and kept its tradition while blending with Emami's essence. We follow a buy and build strategy, but we avoid overpaying and taking on debt.
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Sandeep6:34
Emami has been built over 35 years in a focused manner, brick by brick. They focus on building brands and product quality using natural resources. They have a strong distribution network reaching half a million retailers, creating high barriers to entry. This allows them to acquire and build brands.
What about Ayurveda and alternative medicine? Emami's brand portfolio includes Ayurvedic, natural, and chemical-less products. We are not against anything, but we analyze safe chemicals. It's not a simple thing.
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R. Agarwal8:32
No sir, I'm telling you frankly, my dream is that my company is well, my employees are well, my workmen are happy, and we are Emami.
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Sandeep8:58
With global connections, we see many Indian companies venturing abroad. Emami is a good example, having expanded to UAE, Egypt, Bangladesh. HSBC can assist with presence on the ground, finance, and environment. We link coverage from Calcutta to Dubai and Bangladesh seamlessly.
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R. Agarwal10:10
Success requires luck, money, people, and ideas. But most important are details and honesty. When starting a business, don't just dream; see limitations and strengths, utilize strengths. Define your purpose, have faith, and create a master mind. People will join together like me and you.
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Sandeep11:27
Thank you, Mr. Agarwal. Sandeep, for being on the show, thank you very much.
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Narrator11:30
These are the mantras that helped Agarwal build Emami: surround yourself with specialists, keep the organization flat, create a homely atmosphere. Profit not at any cost; no tobacco, alcohol, or non-veg food. Do SWOT analysis, leverage strengths, believe in giving credit. These mantras are not taught at Harvard. The Indian joint family system has great merit. Goodbye, see you next week. This was presented by HSBC Commercial Banking.