Food is an emotional sale
284 / 2022
Quote of the day
The year 2023 has begun amidst the gloom of massive layoffs, downsizing, redundancies, by whatever name called. There is anger, anguish, dismay and despondency all around since the action is largely by the Corporate Biggies who had hired in hordes. However it is the small and medium enterprises that have braved the tough tides and bounced back time and again. I am sharing select thoughts gleaned from a talk I attended a couple of months ago by Indraneel Chitale, a 4th generation entrepreneur of a legacy Indian food business, Chitale Bandhu, that started in the pre-independence era.
“Leading family businesses in the age of disruption”
Legacy is a responsibility as well as a platform. Statistics speak ‐ 1st generation business 68% fails, 2nd generation 78 to 80% fails, 4th generation 98% fails.
Late Sri Bhaskar Ganesh Chithale started milk distribution in 1939 in Bhilwadi in Sangli district. Lost 300 cattle in 1 week. No electricity, no telephone ‐ how to preserve milk at that time was the question. Moved towards B2B milk products derivative distribution. Survival was the key !
Inspired by the independence movement and patriotism, sons joined the business to form Chithale Bandhu. Grown to 22 internal shareholders from the family across 4 generations.
1970, milk packaging technology imported. 1st company to start pouch technology. 1980s ‐ started franchising, fruit processing ‐ ingredient supplier to pickles, sauces. Introduced machinery for different products to ensure standardisation at ingredient level. Foraying into new territories !
Backward integration with farmers through genetic semen-bull strategy - building an ecosystem!
Halwai or mithaiwala trap ‐ where do we fit in dilemma ? Data and science came in handy. Led to few machines and many products ‐ automation ensured that products taste the same everyday. Order & tracking system ‐ prioritising for what & how much to produce brought in efficiency.
Increased Tech use in Chitale - Cows to cloud, RFID tech intelligence to farmers that ensures transparency from ingredient to end product. Use of IOT ‐ Farm to fork, 500 data points, 3 locations, 2 states. Build patterns out of purchasing power data & AI prediction to plan production, distribution and sales.
Brand should find place in customer’s pocket. Omnichannel presence across countries helped in pandemic.
Used Theory of Constraints in technology & distribution. Grew from 14k stores in 2014 to 2.5L stores currently. Giga factory ‐ ability to lift and shift.
Food is an emotional sale. Honour tradition. Cherish innovation. Add joy to every occasion of our consumer. Chithale tagline - maintain the sweetness of every relation. Watch this YouTube video for some heart rending communication.
A few catchy, wise words from the young head of Indraneel….
Vision without action is a day dream. Action without vision is a nightmare.
If you want to grow tall, dig deep.
Be an inspiration, maintain integrity (as 4th generation I should either grow or sell).
Ask for external help even in a family business.
Be compliant globally. Understand economics, policies, not politics alone.
Preserve values of delegation & trust. You cannot be everywhere. Have continuity through teams.
Business is a test match.
Leadership is a lifestyle-walk the talk. Own the talk. Live by it.
Honour diversity, agree to disagree.
Brand remains, family changes.
The most amusing one I have heard so far - “How should an entrepreneur be ‐ not a dying dinosaur. He should be like a cockroach ‐ resilient, relevant & persistent 😊”
While you mull over the most-hated ’cockroach’, do scroll down to catch up with the regulatory updates for the month of January, 2023. The 284th issue carries the torrent of MCA notifications released last week along with a few from RBI, SEBI, GST. As always it is claimed that the en-masse changes are to promote ease of doing business but on an analysis of the e-forms, that is far from the truth. Amount of data being sought is ever increasing. So also the inconsistency between the Act, Rules and Forms. Not to mention the typo errors, numbering mistakes and lack of application of mind. Currently we professionals are trying to grapple with the changes even as it is ’business-as-usual’ for corporates who expect filings to be a smooth affair. Let me clarify that there is disruption and chaos all around on the MCA V3 portal. We need ‘Patience Capital’ in addition to People & Process, if we are to maintain our sanity !
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Sudha Murty is an Indian Educator, Author and Philanthropist who is a chairperson of the Infosys Foundation. She is best known for her philanthropy and her contribution to literature in Kannada and English. She has created awareness about Leukoderma (also known as Vitiligo) disease through her novel ‘Mahashweta’. Leukoderma may not be painful or life-threatening, but the social stigma attached to it makes life a struggle for those who are affected. This may have a devastating impact on the self-confidence of the affected person. ‘Mahashweta’ is the inspirational story of courage in the face of betrayal and disappointment. Anupama, the soul character and the female protagonist of the novel takes on a journey as an imperfect and abandoned wife, thanks to a condition that depigmented not only her skin but also self-love and self-esteem.
She moves towards independence, identity, empowerment and happiness in her life, overcoming her insecurities. Life becomes much easier, happy, relieved when you accept who you are. The novel brings out the struggles, friendships and relationships of Anupama.
The novel encourages you to leave the old ways behind, create something new, open up, flourish in every moment and find yourself.
Reminders for Payments & ReturnsTo save a date into your calendar, select an event from the link and follow the options
Karnataka Start-up Policy 2022-27
Among others, highlights of the Policy include:
To set up a 100 crores venture capital fund.
The Start up Policy 2022-27 aims at retaining the “Champion State” position by further increasing the number of high-growth start ups to 25,000 by 2027.
To set up 50 new-age innovation network (NAIN) centres, 35 in IT/electronics and 15 in bio-technology institutions of higher learning located outside Bengaluru Urban district to promote, support and encourage emerging clusters beyond Bengaluru.
Please refer to the Policy for details.
Mega amendment notifications
All above mentioned amendments shall take effect from January 23, 2023. The Notifications also list the Forms that shall replace the existing forms on MCA V3 portal.
A compilation of the highlights of the changes brought about by above mentioned notifications is available here.