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R S Agarwal
– Emami Group
The
inception of Emami Group took place way back in mid seventies when two
childhood friends, R.S. Agarwal and R.S. Goenka left their high profile jobs
with the Birla Group to set up Kemco Chemicals, an Ayurvedic medicine and
cosmetic manufacturing unit in Kolkata in 1974. With a vision of combining
the age old wisdom of Ayurveda with modern manufacturing techniques for
creating winning brands, the company was started with a meager amount of Rs
20,000. Emami today is a Rs 2000 crore diversified business group. R.S.
Agarwal speaks to DARE about his entrepreneurial journey...
You were the youngest
president in a Birla Group Company and in an affluent position. Then why did
you decide to start your own business?
Though
I was in a high profile job, being a president of the company under the
legendary Late Aditya Birla, the fact remained that business was in my blood
as I belonged to a business family. My family was in the business of dyes and
colors. It was a considerably large business though later, for various reasons,
my family could not sustain it. So driven by the spirit of entrepreneurship,
I decided to take a plunge in business. Despite the fact that I had the honor
and privilege to work under Late Shri Aditya Birla, I felt like doing
something on my own and establish myself as a businessman.
Honestly, how long did it
take between the initial thought of your own business to actually quitting
your job and starting the business? Can you share with us the thoughts that
were coming to your mind and how you dealt with them?
I
had the thought of venturing into business while I was in service. Frankly,
taking a trip down the memory lane at this juncture and recalling when
exactly I decided to shift to my own enterprise will be very difficult. But it
was always on my mind and I was waiting for the right opportunity to make an
entry. It was also a very conscious decision to enter the cosmetics business.
Since I am a great believer in the holistic healing of ayurveda, my intention
was to base our products on ayurvedic formulations. I also felt that the
market for the ayurveda-driven personal and healthcare products is immense in
India
and there is a huge scope to exploit this opportunity. We did not want to
emulate the MNCs but do something that is linked with our cultural ethos.
How did you come in the
proximity of RS Goenka, co-founder of Emami Group? Was it Friendship,
relationship, money or skill sets—what did you both see in each other to
start this business together?
I
knew RS Goenka from my school days. We used to study together at Maheshwari
Vidyalaya. I was a year senior to him. We gelled very well and I also used to
tutor him on different subjects as I was very good in studies. Gradually our
relationship went beyond friendship and we turned out to be each other’s soul
mate. We do not consider ourselves as separate entities. We are the opposite
sides of the same coin. Theoritically, it is Agarwal and Goenka family. But,
in reality it is one unit. The bond between us is seamless and natural. I also
feel that we have been able to stay together because both of us are givers
and not takers. Both RS Goenka and myself want the other to do well.
How did you spot an
opportunity for this business? Why did you decide to go ahead with this
business?
I
always thought of venturing into the FMCG business—in the manufacture of
personal and healthcare products for I felt that the scope in this segment is
enormous. Besides, this is also one segment which has no government
regulation. So it was a very well thought out decision to venture into the
FMCG sector.
From an assured monthly
salary to going out on the streets to make business—please tell us about the
emotions, feelings, practical challenges that you faced during this
transition?
No
risk, no gain. This has always been my driving mantra. Since my youth I was
never averse to take risks. And as mentioned earlier I was determined to do
business. But there was resistance from my family during the initial days.
Everybody was very apprehensive. There was the fear in them about the risk
involved in any commercial enterprise. Since I was working in the rank of a
President, before moving on to the business, my family members led a very
comfortable life. It was scary for them to break out from the then comfort
zone and usher in a life of uncertainty and risk. Frankly, it is the
conviction of my courage that got me going.
What were the biggest
challenges that you faced as an aspiring entrepreneur — personal,
professional and financial?
Finance
was definitely a problem. I did not have enough funds to start a business. It
was RS Goenka’s father who lent us Rs 20,000 as seed capital. That is how the
journey began. Since I was already exposed to the nitty-gritty of the
business by being in service earlier, I could understand the nuances of our
business quickly. RS Goenka and I supplemented each other. Besides, my
knowledge as a CA and CS had also been of great help.
Looking back at your
entrepreneurial journey, what would you say has been the biggest success as
an entrepreneur?
It
is very difficult to single out one success story as the “biggest”. The
feeling of each success story is overwhelmingly different from the other.
Moreover, I have many plans for the future and I aspire to taste more success
in the coming days. Who knows the joy of those might surpass the feelings of
all my previous success stories.
What is the one failure
that you would say you learnt a lot from?
I
do not want to remember my failures. I do not want to glorify them. Let me say
that failure is not defeat unless you stop trying to achieve it.
Just a couple of years
back, you ventured into realty. What are your plans there?
In
the realty sector we have several projects in hand with more than 100 million
sq ft currently under construction. Besides, post acquisition of Zandu
Pharmaceutical Works, we plan to develop a 2.5 acre of land at Dadar in
Mumbai.
In the field of FMCG,
what would you say are the areas that hold good potential for aspiring
entrepreneurs?
I
would say non-durable products of mass consumption have a very good prospect
in India.
When did you know that it
was time for you to go behind the scene and hand over operations to the
professionals?
Let
me clarify that I do not act from behind the curtain. I lead from the front
despite my indifferent health. My hands are full and we intend to become a Rs
8000 - Rs 10,000 crore company over the next five years. So for me the
question of going behind the scene does not arise. But Emami is a
professional company and we have created verticals like CEO, CFO, etc for
managing daily operations. The CEO, CFO and other departmental heads lead a
thoroughly professional team comprising MBAs, CAs, etc. So the responsibility
has already been handed over to the professionals and RS Goenka and myself
oversee their functions.
Have you trained the next
generation of the family to take over? What are their roles going to be?
The
next generation directors have already been groomed up and are discharging
their duties very effectively. In this context I would like to say that the
recent acquisition of Zandu has been spearheaded by our next generation
directors only.
Who were the biggest
pillars of support in your early struggling days?
My
friend and co-founder of Emami, RS Goenka and his family have been my biggest
support during the initial days of struggle. Besides, there has been great
support from friends and associates. I would also like to mention that
Bhagwat Gita has always greatly influenced my life and living. It has always
been a great source of courage and provided enormous mental support during
difficult times.
Who were your biggest
critics? How did you deal with them?
Fortunately,
I had a lot of admirers but no critics. All wished me well.
How much personal time
did you get when you started business?
Needless
to say, during the initial days there was hardly any time for me to spare for
my family.
How much time do you get
now?
Compared
to those early days, now I have time to spare during weekends. I spend my
free time with my friend R S Goenka as well as with a group of common friends
whom I have known since my school days.
What would you say
is your personal success mantra?
Discipline,
time management, spirituality, attitude to give and in being sensitive
towards humanity.
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