The onus of transforming Godrej is on GenNext & professionals
On condition of annonymity, a former senior manager of Godrej, who has worked with the family members, denies that Godrej’s family-run structure posed problems for professionals. He feels that even the break ups with P&G and GE were professional decisions; so it would be unfair to blame them on the top management. On the point of aggression, however, he admits that Adi Godrej wouldn’t prefer entering a business that burns cash for more than 2-3 years, in the manner that a cash-rich MNC would.
That could change now, for the future beckons, along with the challenges of managing the sprawling product and service portfolio of the conglomerate. So the company is resorting to a professional like Mahendran, who is christened as the M&A expert and is the man behind all the successful international JVs of the group like Sara Lee and Hershey’s. Professionals like him are working together in the FMCG cell and Strategic Marketing Group (SMG) with the next generation of the business family. The SMG will adopt marketing strategies across the group and leverage synergies where possible. This is being headed by the Tanya Dubash. The group is eyeing ambitious M&A plans to scale up turnover by 2011. SMG is, in fact, planning to spend Rs.1 billion every year on branding. “Four members of the next generation are already involved in the business – Tanya Dubash, Nisa Godrej, Pirojsha Godrej and Navroze Godrej,” confirms Adi Godrej. Navroze is heading the furniture division of Godrej & Boyce Mfctg. Ltd. and working on overseas acquisitions. Nisa & Phirojsha have recently joined and are in the learning phases. Godrej ensures that all family members grow from bottom up. As long as this GenNext is serious about sustainably changing the manner in which the group has traditionally strategised its business growth, investors can look forward to more positive transformations in the long run.
That could change now, for the future beckons, along with the challenges of managing the sprawling product and service portfolio of the conglomerate. So the company is resorting to a professional like Mahendran, who is christened as the M&A expert and is the man behind all the successful international JVs of the group like Sara Lee and Hershey’s. Professionals like him are working together in the FMCG cell and Strategic Marketing Group (SMG) with the next generation of the business family. The SMG will adopt marketing strategies across the group and leverage synergies where possible. This is being headed by the Tanya Dubash. The group is eyeing ambitious M&A plans to scale up turnover by 2011. SMG is, in fact, planning to spend Rs.1 billion every year on branding. “Four members of the next generation are already involved in the business – Tanya Dubash, Nisa Godrej, Pirojsha Godrej and Navroze Godrej,” confirms Adi Godrej. Navroze is heading the furniture division of Godrej & Boyce Mfctg. Ltd. and working on overseas acquisitions. Nisa & Phirojsha have recently joined and are in the learning phases. Godrej ensures that all family members grow from bottom up. As long as this GenNext is serious about sustainably changing the manner in which the group has traditionally strategised its business growth, investors can look forward to more positive transformations in the long run.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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