The Fast and the Brilliant
Ducati is one of the world’s most popular Superbike manufacturing companies, and its motorcycles are in demand across geographies, including in countries like India with an aspiring population. At an event at a leading university, Corporate Citizen chatted with Bipul Chandra, Managing Director, Ducati India, where he talked about his success journey, the challenges posed by the pandemic to Ducati and his advice to young students.
"Luxury cars have shown a very decent growth since Covid. Even this year, I understand that that the industry is poised to cross 38,000-40,000 units of sale for this one year. That is a very smart recovery"
- Bipul Chandra
Corporate Citizen :Tell us about your education.
Bipul Chandra : I completed my graduation from Delhi University and then I joined Banaras Hindu University (BHU) for MBA. The course was then known as the Faculty of Management Studies. Now the course has been upgraded to the institute level. It is a far bigger college now. In 1998, after completing my MBA in marketing, I joined Berger paints as my first job. I started my career at Berger in Mumbai and handled this part of the country for two years. Mumbai, Western Maharashtra and Goa was my territory. Post this stint, I joined the auto industry in 2000. I started from our local home grown talent, Bajaj Auto. I was posted in Lucknow, UP and since then I have been in the auto industry.
CC:Tell us about your current role.
I shifted from Ashok Leyland to Ducati in 2019, and I joined Ducati as the Director of Sales. The first couple of months were spent in learning the new business. While I came from the auto industry, my immediate previous job was with commercial vehicles, so to change from the commercial mindset to the luxury motorcycle setup was a very different experience. I had never handled such kind of bikes, such kind of engineering and such kind of customers. It was a great learning phase. In 2021 January, I was made the MD for Ducati India. Then there were two serious challenges which reared their head-one was a known one-the BS4 to BS6 transition to meet emission norms. We knew that was going to hit us. What we didn’t know and what came as a shock and surprise to the entire world was Covid-19. The lockdowns, the concerns of sustenance and the challenges of opening up posed serious challenges. Eventually we managed to persevere.
CC: The sale of luxury motorcycles had increased over 130% year on year in 2019. This was a market which was poised to skyrocket in India, and then the pandemic hit. Do you think the auto industry is still recovering?
I will not exactly agree with these sentiments. Luxury cars have shown a very decent growth since Covid. Even this year, I understand that that the industry is poised to cross 38,000-40,000 units of sale for this one year. That is a very smart recovery. In my company, I am not able to supply all the bikes which have been booked immediately. There is a wait period for 2-4 months for various models. After Covid, people have started understanding that they have only got one life.
CC: Ducati’s sales have slowed down worldwide, but yet your profits are higher than ever. How did you achieve this?
Sales have not gone down. Last year also, we have an amazing growth. In 2021, we did 60,000 units of sales, which is the highest ever in the history of the company. This year, too, we are on path to be better than last year.
CC: The Street Fighter also launched in India for Rs 17.2 lakh correct?
That is the Street Fighter V2. The difference between this model and the Lamborghini edition is only about Rs 1 crore.
CC: The automotive sector is historically male dominated. Do you think women are adequately represented in your company, and if not, what steps are you taking to increase female participation?
Globally, we have a very strong representation of women in our workforce. In India, we don’t have a very strong representation, and there are two chief reasons for that. The first is that there aren’t as many female riders in India, or even managers, who have the kind of passion for superbikes. Having a passion for superbikes is something that we request and also require to have to work at Ducati. Secondly, we are a very small team in India, so numerically also, we don’t have the bandwidth to induct so many people, whether male or female. But if you talk about the riding community, then there are a lot many female riders which we are very proud of. We are associated with few female riders too and they are doing a great job.
"WFH was not possible at all. The moment the GoI announced that companies can go back to working from office, we started immediately. We started in a staggered way. We started working alternate days, then daily for a fewer number of hours and then increased the working hours"
CC: In other industries like IT and Finance, WFH was implemented for the large part. Was that something that was possible in your industry as well?
A Ducati Panigale motorcycle
WFH was not possible at all. The moment the GoI announced that companies can go back to working from office, we started immediately. We started in a staggered way. We started working alternate days, then daily for a fewer number of hours and then increased the working hours. Ours is a very different kind of work. We thrive on the bonhomie, we thrive on the backslapping. Unless you have person-to-person communication, it is difficult to achieve.
CC: Do you have any plans to manufacture in India?
At the moment, there are no such plans. But in the future, no one knows for sure.
CC: What are some initiatives you have taken to mitigate the challenges posed by the pandemic?
We have made some policy changes as far as the fiscals are concerned. The automotive business is a very capital intensive business. You require a lot of money to keep the stock at the dealership, and in today’s tough time, it may not be acceptable to the dealerships, because they have multiple businesses. That is why we have initiated certain fiscally prudent policies, and they have definitely helped our dealerships to remain competitive. Then we have worked upon the infra part. Dealerships have always prided themselves on having huge infrastructure, but we have gone ahead and given them the freedom to scale down on the infrastructure, while not scaling down on the experience. This has enabled them to remain viable and positive financially. This is a matter of great pride for us that after the pandemic and even during it, not a single dealer left us.
CC: Car manufacturers have gone from a dealership model to a franchise model to help retain dealers. Have you done anything like this?
No. For Ducati, we have not changed on any of these policy matters. For us, the thought process and policy of having dealerships still remains. For us, the bonhomie that dealerships can provide to a customer is far higher and better.
CC: Ducati is popular worldwide. But it is a luxury brand. How difficult is it to market a luxury brand in a price conscious country like India?
Yes, compared to the west, marketing luxury bikes in India is more challenging. It also translates into lesser volumes of automobiles and luxury two wheelers. While people love to buy our bikes, they love to own one, it is true that not everyone can afford a Ducati bike or for that matter any of the luxury bikes, due to the higher prices.
CC: Does higher taxation in India play a role too?
I would not say much on that aspect, because we have a very great facility with us, which is Free Trade Agreement (FTA). We are safe on the customs part. Taxation and GST is something that everybody has to pay.
CC: Tell us about some of your upcoming products?
We have a policy of launching whatever is being sold globally in India also. There would, of course, be a certain gap between the launches, because as a production house, we get our bikes from Thailand. There is a time gap between the production in Italy and the commencement of production in Thailand. This is a 4-6 months gap. Once the bike gets launched, our customers in India are made aware about the upcoming model. We also tell them the timeline. On the very first working day of the year, I write not only to all my dealerships, but I also write to the media, letting them know the tentative timelines for the launch of the upcoming bikes. On the first of January, everyone interested in our business in India will know what time we will be launching which bike. We are an open book. Yesterday, in Italy, we had a preview of our new bike, the Street Fighter Lamborghini.
CC: Are you able to strike the right work-life balance?
I try to. I won’t say that I am super-successful, but I try to strike some balance between work and personal life. I am an early riser, so that gives me some time to spend by myself. I wake up by 4-4:15 AM in the morning. Till 7-7:15 AM, it is me-time. Then I go to office. I reach work by 8:45 AM, which gives me some time to organise my day, because at that time there is no one in the office and no phone calls to disturb me. And 9:30 AM onwards, it is a normal, busy day. If I have completed my work, I leave the office by 6:30 PM, which is rare. I leave by around 7-7:30 PM usually, and then it’s the end of the day. I keep on getting emails, because Italy keeps working for a couple of hours more, so may day starts early as the Thailand office starts working one and a half hours early and my day ends late. I keep getting mails till 9:30-10 PM, but I am not obligated to respond immediately because they understand that it is night in India.
"First and foremost, students should be true to themselves. They should not fall prey to a false sense of superiority. The student must know what his actual strengths and weaknesses are, and then they should work upon them. If my friend is good in something, it does not mean that I would be good at the same thing as well"
CC: Do the Ducati bikes sold in India come fully assembled from Thailand?
Yes. We just open the bikes here and we can deliver them to our customers. Not even cleaning needs to be done, although we still do the checking.
CC: You must be visiting several educational institutes around the country. Do you perceive a gap between the output of the Indian education system and the needs of the industry?
There will always be a gap. It is not fair to blame the colleges, and it is not fair to blame the education system, as is the flavour of the season. What we should look at is that there should be certain bridge-courses which the industry actually requires. While it is good to study about something, we need to also see if that is something the industry actually needs immediately. Once you start working, you get to see the things associated with the job. We should update students better about what they should expect once they join the workplaces. Students should be made aware that there will be tough targets, there will be reviews, there will be backbiting, etc. Once the students are mentally prepared, they can sail through the initial couple of months in a better way. Once they sail through those months, they will become pros. There is no end to teaching.
CC: You mentioned that one needs to have a passion for superbikes to work at Ducati. Do you share this passion too?
The benefit of working for Ducati is that I don’t need to own a superbike, but I get to ride a lot of them. This May, I had gone to Spiti valley on a Multistrada. I had a chance to ride on the Bira circuit in Thailand and then Misano in Italy. In November, I shall be riding on Chang moto circuit in Thailand.
CC: What is your idea of relaxation?
I love to listen to old songs. I also like to read books. I love to read corporate books and biographies. My motto is “Whatever is printed should be read’.
CC: What is your philosophy of life?
Never say never.
CC: The youth are beginning their career during an unprecedented crisis. What advice would you give them?
First and foremost, they should be true to themselves. They should not fall prey to a false sense of superiority. The student must know what his/her actual strengths and weaknesses are, and then they should work upon them. If my friend is good in something, it does not mean that I would be good at the same thing as well. My own strength is my own. I should take advantage of that rather than looking at someone else. That self realisation and introspection is extremely important before embarking on any journey.