Leading to Serve the Common Man

Saugata Mitra, Chief People Officer & Group Head HR, Mother Diary Fruit & Vegetable Pvt. Ltd. and
Bhaskar Chatterjee, Secretary, Department of Public Enterprises, Ministry of Heavy Industries & Public
Enterprises share their views of leadership that have gone into their recent book Leadership India:
Leading Change, Changing Lives

What interested you to focus on leadership that aimed at development of the common man?

SM: The reality is that 2 billion of the worlds population earns below $2 a day and 70% of Indias
population earns around $1 per day. But there is a huge market that exists in this 70%. So we wanted to
find the leaders who can address these billions of people while doing great business. So the search
began with that objective and we thought C.K Prahalads concept of Fortune at the Bottom of the
Pyramid was the right place to start from.

BC: The unfortunate demise of C.K Prahalad had taken place just a few months before that we began
conceptualizing the book, and we were charged with writing something in memory of his ideas. Being
inspired by this great guru, we decided to identify Indian leaders who embodied this concept and
worked with the common man as central focus of their businesses. Consciously, we decided to eliminate
two categories in this search political leadership (as that can often turn volatile or controversial) and
leaders in the entertainment industry (although there are many benefactors there who have
contributed a lot in this regard). We narrowed down our study primarily to two segments - the
corporate world (private and public) and social entrepreneurship.

What personality traits and skills did you see in these leaders?

SM: One commonality in these leaders is that they are all working on an economic platform with the
objective of social good. So, one trait across all leaders is that they are all leaders with high compassion.

BC: Also, another common factor is business acumen because the bottom line still exists, and this is
about changing the life of the man on the street, by finding opportunities for business in the lives of
common people. For example, R. C. Bhargava, Chairman, Maruti Udyog, irrevocably changed the lives of
the people of India when his company, with Japanese collaboration, produced a 4 wheeler which was
affordable. And using that platform, Maruti became the single largest producer of automotive vehicles
in the country. So our focus is on business - married with a commitment to the common person at the
bottom of the pyramid.

How can the corporate sector help uplift the social framework of India?

SM: We believe that economics and social good can go together and that is what we have tried to
establish. If you take the example of Dr. Devi Shetty, Founder and CMD, Narayana Hrudayalaya Group of
Hospitals, he has used technology to make heart surgeries affordable for every man on the street even
when only 8% of the world population can afford a regular heart surgery. Even LG has created a
revolution by marketing products and services that fulfill the aspirations of the middle class. Also, the
instance of Arup Roy Choudhury, CMD NBCC comes to mind. He went to areas where others had not
dared to venture and provided housing for the urban poor. It is not that they are not making money, but
they have devised a method where economics and social good can go hand-in-hand, and the world
needs more such leaders.

What is that formula that enables business economics and social good to happen hand-in-hand?

BC: These leaders have tapped into unexplored areas instead of walking on the trodden path. For
example, Arup Roy Chowdhury saw a business opportunity where they were able to do good business by
making housing facilities possible for common people in the remotest of areas. Having said that I may
add, we are not looking for a prescription for all businesses. Any business is free to access its own
clientele but our search is for leaders who are able to identify opportunities to serve the common man
even while carrying on business. Our attempt is to capture the leadership essence of this rare breed and
it is their rareness that makes them the key holders to bring about a business revolution.

There are many corporate houses that are using the concept of CSR as a tool to uplift their brand image.
Are people using CSR in the right context?

BC: Unfortunately, one aspect that is missing in CSR is the responsibility part. The line between CSR and
pure business must be clearly drawn. Companies should aim at working towards involving the
community by developing them and working towards the advancement of the region they are operating
in. Companies must ask the people what they want, rather than creating a product and tell the people to
buy it. So there is a need to turn the equation around first look at the needs of communities and then
find business opportunities in servicing the genuine needs of the community for us, that is real CSR.

Do you think there is business sense for multinational companies to serve the bottom of the pyramid in
India?

SM: Every multinational in India is here because of the huge opportunity in our country. The truth is that
opportunity in India lies in the 70% of the population in the rural market. So if a company only focuses
on the class platform, its business growth will be greatly restricted. There is a need to focus on the mass
platform and to do this, companies must offer products and services at the price that the mass can pay.
So that is the extent of the untapped market in India.
BC: And that untapped market is not in the rich 1%, although the common parlance that most
multinationals use is that they want to cater to the up-market segment. Unfortunately, India is not
known for its large rich segment. One can take advantage of economies of scale only if they focus on the
billions of people who fall in the lower-middle and lower income group. Even McDonalds had to
Indianize their menu and pricing to cater to the market here. They realized the scope of business in
keeping costs low and work on the economies of scale model which is reflected in the McDonalds price
chart today.
SM: In fact, multinationals in India have been successful because of this very reason. For example, Union
Carbides Eveready Battery or Reckitt Benckisers Dettol would have not survived if they had not seen
the need to penetrate the Indian market. And to penetrate the mass market, companies have to provide
products and services at the price which the consumer feels comfortable. Business in India cannot be
mastered only through high margins and big values.

How will the focus on the billions help speed up the process of Indias development?

BC: 400 million is supposed to be the middle class in India. If you also look at the lowest end of the lower
middle class and the rural communities, you actually step into at least double that number. And when
you reach out to a billion people, the frontiers of business actually go beyond the view that people take
now. There is plenty of marketing to be done in the rural areas and that is where the numbers lie.

You talk about reaching a market size of 1 billion people, even as we deliberate on the increasing skills
gap that corporate India is struggling with. Is the Indian education system ready to cater to this expected
exponential GDP growth rate?

BC: There are large gaps in our education system which we have been trying to plug for a long time. The
picture of an uneducated India is very often portrayed in the world because of our poor primary
education system and poor literacy rate. I think the HRD ministry and the private sector are doing its
share to counter this. Along with education there is also a need to develop specific skills required by the
corporate sector. We now have a skilling mission in place which will help bridge the skills gap.
SM: The government has realized the need and NSDC has identified more than 400 skills that require
attention.

Are Indian leaders aware and ready to address the need for the social impact that their business can
make?

BC: Gradually, people are realizing the need. Our attempt was to find, highlight and hold up these
unique leaders as icons. In our view they are the game changing players in the economy and they will
transform our development process. The pace, at which our economy and GDP rate will grow, will be
largely dictated by the work of such leaders.

Why does leadership take precedence in this quest of developing India?

BC: The fact is that it is this kind of leadership that will transform India. So we called it Leading Change,
Changing Lives. This is the leadership that will be the beacon light for India and take us to the next era of
development. But we do not say that leadership must be of this sort alone and while we need a variety
of leadership, stress on this one will help Indias growth.

A confluence of business acumen and compassion

Dr. Devi Shetty - Leading change in heathcare
Building health cities and using technology to reach remote areas
Promoting micro health insurance in the weaker section

Dr. Yasho V. Verma - Touching lives of grassroot consumers
Meeting aspirations of the Indian mass by developing affordable quality products.
Laid stress on rural marketing to reach every consumer.

Arup Roy Choudhury - The visionary builder & manager
Transformed NBCC by reorganizing the operating system
Centralized cash management system & e-transfer system for swift payments to contractors.

Ashok Nayak - Ruling the skies
Aspires to take HAL to the top 20 global defense companies
Focus on modernization needs of the high-tech industry.

Rajendra Singh - The ponds of hope
Revived many rivers in Rajasthan and over 10000 johads (pond-like structures to conserve and harvest
water)
Leads the National Water Rights and Action movement (Rashtriya Jal Biradari)

Partha Bhattacharyya - Fuelling development
Initiated action on strategic areas like thrust on underground mining, coal beneficiation and land
reclamation.
Emphasized on welfare of miners and other skilled and unskilled workers

Prabhat Pani - The new look hospitability
Innovation in Indian hospitality to provide facility rooms to the Indian traveler.
A Gen Next hotel that provides customer simplicity, expediency, ease, style, care, modernity and
affordability.

Om Prakash Bhatt Promoting inclusive banking
4900 branches in rural areas and 3500 branches in semi-urban areas.
Trained 1,30,000 people in 100 days on the message of change and inclusiveness.

R. C. Bhargava - Leading the motor car revolution
Created Indias market leader in automobile manufacturing
Focused on building a car for the Indian mass.

Madhu Pandit Dasa - The midday meal messiah
Scaled up operations to feed 1.2 million students
Mastered logistics to bring healthy and hygienic food to innumerable schools

Renana Jhabvala - Organizing women at the grassroot
Instrumental in forming SEWA Bharat, a National Federation of SEWAs now active in 9 Indian States.
As Chairman of SEWA Bank, increase availability of finance for poor women

Dr. Achyuta Samanta - Mainstreaming Tribals through education
Received ISO 9001 certification for being the worlds largest residential tribal school.
Aims to educate 2 million tribal children in the next 20 years.

Capt. G. Reddy Gopinath - Rewriting Indias aviation history
Enabling the common man to experience flying
Started Deccan 360, an express transport and logistics company to serve the interest of the common
man.