Showing posts with label instant. Show all posts
Showing posts with label instant. Show all posts

05 March, 2021

Upwards & Northwards! Finally


On Thursday, Fitch Solutions, one of the world’s top rating agency estimated that India’s HHS – Household spending would grow 7.9% y-o-y in 2021 after 14% contraction in the year 2020 due to the Corona pandemic. In nominal terms, the HHS is estimated to be Rs. 125 lakh crores (whatever number of Zeroes, that is!), a 3.3% growth over 2019. Not bad at all, huh. Food & non-alcoholic drinks is expected to grow the highest among all other consumption categories and this, in my humble opinion is perhaps the biggest good news of the year! 


Here’s why I feel that this will propel the economy to a large extent.


India has an estimated 14 million kiranas and retail touch points – who sell anything from cigarettes, biscuits, tea, coffee, grocery all the way to other household items including consumer durables, fashion, footwear among others. This segment drives India’s consumption opportunity, a key reason why the Amazons, the Walmarts, the Wall street Investors all the way to the Chinese & Japanese billionaires and everyone in between are eyeing a small pie in the Great Indian Retail Story which is yet to unfold. The world has been witnessing an ugly battle in the public involving some of the most reputed businessmen and their companies, thanks to a hostile take over which has seen stiff resistance from the other. Meanwhile, Indians are jolly well shopping their home needs and personal requirements through gadgets – apps as well as a simple phone call to order their roti, kapda and makaan – quite literally. 



I started working in the retail Industry 24 years back scooping ice-cream and later with one of the pioneers of Grocery Retail, Foodworld Supermarkets two decades back. Even back then, most Indians in bigger cities had to travel not more than 2 kms to buy their food and grocery. Every locality and neighborhood had a kirana store who offered personalised and tailor-made solution for her / his customers. From topping the shopping bag with FMCG freebies (what we call as Loyalty points these days) to offering a chocolate to the kid (instant gratification in today’s terms) all the way to a speedy home delivery (some Start-Ups who never made a transaction level profit over 10 years are now Unicorns!) and so on. The Kirana offered credit at a time when a “Credit Card” was a western phenomenon and raised capital – through internal accruals and market offering, rather than the obnoxious Equity based Investments.


Cut to 2021, my excitement with the latest Fitch report is simple. Though the Kiranas have dwindled in real numbers – not because the Modern Retailers or E-Commerce companies replaced them – rather than many of them did not have second-gen successors to run their businesses, they have simply been replaced by “Convenience Stores” – family owned as well as Corporates who vie for the consumer’s spends. And daily shopping for Food & Grocery shall never go out of fashion in the India’s consumption story. As most Indian households are small and barely have refridgerators, and even if they do, no more than 165 – 200 litres that cannot hold over 2-3 days’ needs; the kitchens of India are big enough to accommodate one adult to stand and cook with a provision to carry 3-4 weeks dry grocery requirements. Daily use items like Milk, Biscuits and snacks are almost bought every other day, rather than the large packs of colas, juices and nachos which are more the western phenomenon. Small is Beautiful and India’s sachet revolution is a glaring example of how and what India consumes.



If you are unable to relate to most of the above, I can understand as yours and my house are perhaps a lot bigger than the majority of consumers in India, for you are reading this on a digital gadget which is a privilege for a few of us Indians. The majority still read physical newspapers, watch sops and news on TV sets and shop from their neighborhood stores as they walk back home after work or leisure. In fact, shopping is a form of entertainment in India, isn’t it, for we make-up and dress up for buying groceries or eat at a restaurant.


I have always reckoned that “Consumption is Growth” compared to “Consumption leads to growth”. The moment, we are consuming, there is a need to repurchase and the cycle continues. The Covid-19 pandemic has pushed us behind, but not by light years. The recovery across segments, from automobiles to entry level smart phones, consumer durables to even the more discretionary types, is a confidence boosting measure that things are back on track, slowly but surely.




As Indians, what we can do to boost our economy is to consume. And consume a tad more than the previous one. Be it our daily dose of coffee & tea to household needs or fashion, every rupee that we spend will go in to building back India, one step at a time. But where’s the money to spend, one may ask. I have eternally believed that India is one country where no Indian can sleep hungry – if they choose to work and earn their meal. Such is the opportunity in this country. While lakhs of people have been displaced of their daily jobs, we have seen a resurgence in our mental strengths, especially from the marginally placed and the lower strata of the society. One will find enough work in this country, if they choose to. And the entire ecosystem has to work together. Am I living and writing this from Utopia, No. Am I sure that we shall survive this crisis? Well, we have always created history with our resilience over the centuries and this pandemic is also one which shall pass by. 


Back to the Fitch estimates, Food and Grocery are the real propellers to the Economy’s consumption pattern. We earn our dough, spend at the neighborhood stores which employ people and provide them a livelihood; they in turn spend on their basic necessities and slowly but surely increase their non-discretionary spends and the cycle continues. Daravi in Mumbai has more set-top boxes than many urban clusters in India, remember. 



At Levista, where we sell Instant and Filter Coffee across Tamil Nadu and Karnataka, we have grown 50% in our sales over last year (and we have 1 more calendar month to finish). I added 70% more manpower this year over last and increased retail touch points by 3 times to 79,000 as of 1 Mar. 2021. And we still occupy less than 2% of the Rs. 2,200 Crores pa packaged Coffee market in India which excludes B2B / Restaurant & CafĂ© consumption business. We have just begun, I believe. With a 98% headroom to grow and such confidence building measures – our real growth as well as estimates like that of Fitch solutions, I guess we are headed upwards and northwards, even as we should remain grounded to reality with a eye and ear on the consumer who’s always sending us notes, thoughts and reactions. If only we listen… more!

 

31 May, 2020

The Power of Scheduling

It was the second week of April 2020. Three weeks into Lockdown 1.0, a broken supply chain, employees and team members dispersed all across and most retail stores closed, it was one of the toughest moments in my professional life. That I had a roof and secure four walls, three meals to eat, a lot of snacks to munch and salaried job – the real luxuries of the Corona-crisis made me feel a lot luckier than the millions who were displaced world over. And that I was staying with my wife and kids – I had come on a work trip to Chennai on 13th March and remained here ever after through the lockdown – was the happiest thing I could enjoy in life. Honestly, we have never spent such a long time together within a single precinct all our lives!


Yet, I was beginning to crack under pressure – workwise as well as managing household chores including mopping the floor intermittently, washing vessels, drying and folding clothes among other things all day. To get a peaceful uninterrupted 7-hour sleep was becoming a challenge. I am usually a reasonably disciplined guy. I cannot fathom that my bed is not done within a few mins of waking up; a small slush on my white car and I get it cleaned as soon as I could; from rotating my shoes, watches and dresses on FIFO basis to booking darshan at Tirupati 4 months in advance, it’s been a usual rigor. After all, when you are the son of a Factory Worker whose salary gets deducted for late attendance and a schoolteacher mother who must arrive before the students come to school every day, this is just a way of life. 


Even as I was struggling to manage things better, was when I recalled I should speak to one of my professional mentors, a former boss of mine whom I’ve admired for his multi-tasking Leadership abilities. Working with a popular Promoter Entrepreneur, managing a team of a dozen high-flying direct reports and handling a Retail business spanning the length & breadth of the country, I couldn’t think of anyone better than him to seek advice and assistance in my Leadership role at Levista Coffee which I began in January this year. I too have a similar professional assignment at the moment although the complexities are quite different and a lot lesser, so a comparison may be inappropriate. 



A scheduled 60-minute call with him helped me sort out my stuff quite easily. 

To begin with, I created scheduled buckets of my time for all my key tasks – regular VCs with direct reports, allocating time for emails, for clearances & providing approvals, Meetings with external stakeholders, Interviews with Candidates & Media interaction and so much so, that I also included “Lunch” on my Calendar. Keeping my EA involved in all my day-today business activities helped immensely so he could follow up on important tasks from others and revert to me as per schedule. And most importantly, absolutely no out of turn calls or VCs unless it’s tearing urgent. All my day's activities get captured in the iWatch which my beloved wife gifted me 5 years back and the device keeps reminding me of my schedules  as well as measures my sleep patterns (through the Sleep++ App) and my daily fitness goal - how many steps I walk inside home. This is such a blessing. 


I also included slots to, don’t exclaim, Read Newspaper & Articles as well as for my Daily dose of Yoga at 6am! In exactly one month’s time, my entire day has been well sorted out and results are showing up. My Blood Sugar is well under control, I sleep and wake up on time with my 5am routine, spend enough time to read 4 Newspapers and a couple of Articles early in the morning and of course, write and share my thoughts regularly on social and other public media. I ended up doing Four Webinars each weekend too. 


And on the work front, not only have I been more efficient, my team has also done a spending job in the month of May and we have set new business standards for ourselves. I cannot thank my former Boss enough for that timely intervention and take this opportunity here to acknowledge the same. I hope this schedule gets better, so I get more efficient in June and beyond. 

How does your time management go about? What's your kind of Scheduling of Tasks? 


A Firefly finally takes off

Monday - 22 Jan. ‘24 is a very important day in my professional life. I complete eight months today in my role as Executive Vice President a...