BOOK REVIEW

Here’s why: The transparent cover of this work portrays the open foundation on which Marico stands. While the name of the book is a fun wordplay on the name of the company and its maker, the dual-effecting lettering on the cover aptly compliments the dual-sense of the title.

As Harsh puts it, “Flipping through the pages of my life, I came across many colours, many textures. Harsh realities, challenges and rewards. And the binding behind all these? Transparency. Always. The very basis of my life. My Work.”

Harsh Realities: The Making of Marico
Authors: Harsh Mariwala and Ram
Charan (As told to Archana Mariwala
and Jeswant Nair) Penguin
Rs.699

The making of a Fortune 500 company

Breaking away from the shackles of family-run Bombay Oil Industries Ltd, Harsh Mariwala founded Marico in 1987. Today, the homegrown Marico is a leading international FMCG giant, which recorded an annual turnover of Rs.8000 crore. Their products that include shampoos, edible oils and serums-brands such as Saffola, Parachute, Setwet, Revive and Livon, among others, are market leaders in their categories.

As Harsh himself says: “My story is about scaling up. About failing. Learning why I failed. And then understanding how to deal with failures. And striving to succeed. It is about taking challenges head-on. It is about how to create a right-to-win on a perpetual basis. My memoir here captures the basic truth about not only building a business but also the impetus to give back to society. To make a difference.”

The Corporate Citizen Review

This is an unputdownable story of grit, gumption, growth and its core values of trust, transparency and innovation which have brought the company to its current stature. Not only does it talk about the journey of one of India’s most instantly recognisable corporates but on many levels, it is the heart-warming story of the making of Harsh as a human being.

Facing off with the family

It also gives aspiring entrepreneurs and corporates a closer look at the dynamics of family-run businesses. As it happens, the world over, nearly 70 per cent of companies are owned and run by families. India ranks third, globally, in terms of the number of family-owned businesses and these contribute to over 70 per cent of India’s GDP. Almost all family companies, at some stage of their continuation, face generational face-offs between the senior, successful generation and Gen-Next that has come of age. As Harsh puts it: “A dominant and successful father, who is larger than life, unwittingly breeds a family environment of awe and fear. The younger generation, then, is hesitant to raise issues perceived to contradict the elders. Open discussions do not take place. This silent struggle continues till something gives.”

Continuing further, he confesses that he too struggled with these very dynamics for quite some time before figuring a way out. “Scions of business families may gain some insight from how my experiences and learnings-given rapidly changing business and work modes, the tradition of offspring stepping into their fathers’ shoes and taking forward the mantle of their family business, is declining. Keeping pace with current times, it is vital that today’s parents understand where their child’s interest and aptitude lie.”

Running like a parallel line to Harsh’s story is the story of India’s pre-independence, the evolution of technology and gradually changing business environments that are telling of the changing socio-economic-political priorities of a nation. The writing is first-rate, lucid, enjoyable and memorable.

Scripting the brand story

It also provides informative nuggets on how nationally renowned consumer brands (including the hugely popular Parachute Coconut Hair Oil) came to take center stage. From recruiting the correct field sales supervisors to establishing a sales information system to gauge the effectiveness of the field force and distribution network to revamping the packaging lines in the factories, the details are fascinating. One particularly interesting episode is his pioneering use of plastic in packaging. He writes: “At that time, tin was the common material for packaging, used by all. However, I saw much advantage in using plastic over tin for packaging the oil. Plastic containers would be easier to handle, to open and pour, and less messy than tins that were not at all attractive. I visualised a more aesthetic, user-friendly pack that would appeal more to a consumer than a tin which has to be stored out of sight. Importantly, plastic packaging cost less, enabling us to offer it at a more attractive price point. Also, the improved margins that this packaging would then bring in could then be invested in advertising to promote the brand further.

The marketing team then undertook consumer research which found that the buyer would definitely prefer plastic to tins, where they would no longer have to struggle with puncturing a hole in the tin or cutting open a foil. However, this was met with stiff opposition from distributors as well as shop owners. As it happened, a few years ago they had stored coconut oil in a square plastic bottle made by another brand-which had leaked, attracting rats that caused large-scale damage. But Harsh did not give up. He simply changed the shape to rounded containers that the rodent could not get hold of to bite.

Riding the crest of the wave of change

Each chapter ends not just with Harsh’s reflections on what something has taught him along with Prof. Ram Charan’s expert comments on Harsh’s bent of mind with important dos and don’ts for successful leaders. One of the key reasons for Harsh’s rise and rise, he says, is the simple fact that Harsh had a keen eye for a big change. “He saw the wave coming; the boom in consumerism fuelled by income growth. He was in a hurry to ride this wave and move fast to make Marico a pre-eminent fasting-moving consumer goods company. His unconventional approach lay in prioritising talent over all else, as he knew that in a competitive marketplace, the fight was always going to be a battle of minds. He wanted to make sure he had a headstart in attracting talent and its synthesis into a high-quality team.”

Further chapters tell us the story of how Harsh beat the odds in hiring top-class talent from larger companies.

David versus Goliath

A particularly riveting episode is when “Goliath came-a-calling.” As the brand wars between Hindustan Unilever’s Nihar and Marico’s Parachute heated up, Harsh was warned that Hindustan Unilever was a thirty times larger company with very deep pockets.

Weeks of pressure-both direct and indirect followed. Marico’s stock price fell sharply. The market believed it would rise again only if Harsh sold Marico. And sure enough, the call came from none other than Unilever’s head honcho asking him to take up their lucrative offer to buy him out. Harsh was assured the amount would ensure both he and his next few generations would be well cared for.

When Harsh refused, he was threatened with annihilation. Though badly shaken by the direct threat from none other than a doyen of industry, Harsh dug his heels in and decided to take the battle head-on. His conviction and the sheer quality and brand recall of the product won the day. And therein lie the lesson as well as the inspiration.

ABOUT THE AUTHORS

Harsh Mariwala, Founder and Chairman, Marico, was recently bestowed the India EY Entrepreneur of the year award, the world’s most prestigious award for entrepreneurs. Prof Ram Charan has authored and co-authored more than 30 nooks that have sold over four million copies in more than a dozen languages.