PANEL PARTICIPANTS
Arun and Bimal Mehta of Vakils & Sons
Ramesh and Siddharth Kejriwal of Parksons Packaging
Manoj and Jinesh Mehta of Utility PrintPack
MODERATORS
Pranav Parikh chairman and managing director of TechNova India
Feheem Agboatwala director of Hi-Tech Printing Services
Every entrepreneur will one day either handover his or her business to either someone inside the business, the family, or sell it to an outside party. However, if we look at the structure of the Indian print industry, almost all the units are family businesses and well managed with a few exceptions and most of them are not listed. Now this is its strength.
Put quite simply, there is leadership imperative and trust among all family members working in family-owned businesses, but the question is whether the next generation is capable of exploiting the tremendous growth potential that is available to it in the coming years, in spite of all the threats of internet media, internet telephony and the like. It’s a monumental challenge and needs some reflecting upon.
On 24 February, the Bombay Master Printers Association hosted its annual Print Summit. This panel discussion was a part of the day’s proceedings. The discussions were extensive and wide-ranging and provided an insight into responsibilities attached to developing future family business leaders.
Pranav Parikh (PP): I think we should kick start things off by asking the first question to Arunbhai. How did you manage to get Bimal into the print business?
Arun Mehta (Paa) (AM): The fact is: we did not want Bimal to join the family’s print business. There were many members at Vakils and we did not want to add one more to it. But in 1992, I lost my parents and Bimal who was studying in Boston came to India and saw me slogging at work. It was at that time that he decided to join Vakils. Obviously, we were mad at him. I told him I may not be able to offer him what he may get if he joined a multi-national company. But he persisted, saying Dad, you need my help, I am coming back, money is not important.
Faheem Agboatwala (FA): Now that we know how you got into the business, do you regret this decision that it was made more out of compulsion than anything else?
Bimal Mehta (Son) (BM): No. It was not compulsion, because I took the decision of my own accord. I keep saying this: someone who is working as a professional or working for someone, at the end of the day he goes home and sleeps with his family, but in family business you go home and still sleep with your business. Having said that, I must say that in a family business you get the kind of freedom by which you can actually shape the company.
PP: Thank you Bimal. Now to you Ramesh babu. Did you have any problems or conflicts getting Siddharth into business or did you plan that succession when he was born?
Ramesh Kejriwal (Paa) (RK): Well, the decision was very straightforward and simple. Siddharth returned to India after his graduation in the US in 1993, with a pre-decided notion that he will join the family’s print business. At that point of time, we already had four members of our family into the business. It was, therefore, a challenge for me to understand how to utilise his potential to the fullest extent while inducting him to the business. His initial year went into learning the usual ropes of business. At that time, I was pondering about diversifying into packaging and Siddharth’s energy and education in entrepreneurship and marketing only strengthened my decision. I was sure that packaging was the way to go and if this business could be developed, then Siddharth could lead the project. My decision to plunge into packaging and hand-over the reigns to Siddharth, proved correct.
PP: So in the sense, Siddharth’s induction was entirely different from the Mehta’s of Vakils. In your case Ramesh babu, can I say it was more of a duty on the father’s side, to create space for Siddharth not only to induct and train him but also create a separate business.
RK: Absolutely. Because I felt that if he was to carry on in the same segment of the business (not packaging), I think we would not be able to use his potential to the fullest. Let me also tell you that, as a company, we also wanted to enter a high growth area, which met its potential in Siddharth’s induction, and that worked out very well.
PP: It would be easy to summarise like this: the need of the father and the need of the business was synergised with the induction of Siddharth. Is that it?
RK: Very true.
FA: Any regrets, Siddharth?
Siddharth Kejriwal (Son) (SK): Frankly, no. I had made up my mind to be part of the printing industry pretty early in life.
I studied in entrepreneur and marketing management in the US knowing that I can learn about print hands-on, something that I could grasp on the shopfloor. And that’s what happened. Once I came back after graduating in 1993, I was prepared to be part of the print industry.
PP: Manojbhai with your permission, I want to start with with your son. Jinesh, you actually took formal training in printing technology. Obviously before you got into the business, you had a clear concept that you wanted to expertise in for printing. What made you take that decision?
Jinesh Mehta (Son) (JM): Unlike the other two sons here, I chose to study print and it was both technical as well as management. I will actually start with what attracted me towards the printing business. I have seen my father, a first generation entrepreneur, go through hardships from where he started in the print finishing area to where we are today in the print packaging business.
As a child, I always had a liking for what he did and I used to spend my summer vacations at dad’s office and enjoyed every bit of it. My father is very passionate about printing. This rubbed off on me. I was so interested in print that I chose to study it straight after my tenth standard. I did a good five year course studying packaging, buyers’ philosophy and things like that. I was trying to understand print not only from the manufacturers perspective but also from the customers angle. To say that print business is in my blood would be an apt expression.
PP: It is interesting. These are very different stories. And Jinesh in your case you have inherited the passion from your father before getting into printing. In that sense, do you think you got a jump-start?
JM: It is actually different in the academic world as compared to the practical world. As a new entrant, you want to make lot of changes. However, you come to realise that there is a team, family members and non-family, that is working right down the line, and who have been around for a long time. Therefore, I had to bide my time to implement my ideas, taking care that I don’t offend anyone.
PP: So working with the family members, getting their confidence and getting to know your people in the business, helped you. So, you think starting at the bottom or at the right level rather than top down is the way to go.
JN: In my opinion, yes. If not at the lower level, at least at the right level. For me it was very helpful. I could understand the psychology and the current working culture and environment before I could actually start implementing my ideas.
FA: Ramesh babu, you are a fairly large company, how important is it to have a family member in the business?
RK: I definitely believe that a family member who is in business should have the passion and attachment to the business and a very clear role that he is going to play in the company, not just as an employee but as one who is responsible for everything that goes into the company. I firmly believe that recruiting family talent is great, but it is also important to renew the organisation with new people and a modern perspective. Over the years, we have been able to balance the family business by maintaining loyalty of old employees and bringing in new people (family and non-family), this unique blend of people has helped us stay alive and thrive.
AM: I think its 50:50 here. What if the employee that you have placed faith on exits? I am not against professionals in business, but to me it’s risky and tricky. You got to be very lucky to find a good professional, who does not quit.
PP: The question is for the three sons. You guys are true professionals although you are members of the family-run businesses. So when it’s time for you to chalk out a succession plan, would you have the same philosophy that you will only trust your children or would you opt for professionals?
BM: I think, things are going to be very different when it’s time for us to hand over businesses to our successors. And despite the risk and the non-stake in business, we will probably have to work and deal with professionals. The next generation will have their own dreams which they like to follow, leaving little room for their entry into the business.
JM: I agree with what Bimal is saying. The times are changing.
FA: Siddharth, as the CEO of a very large company, how do you run the business and how often do you go to the shopfloor?
SK: It’s a combination of board meetings – and a mom and pop kind of a business. But we do and will adopt new management styles while respecting the family values and the cultures and ethos of our predecessors. As for visiting the shopfloor, yes, I do visit the plants on regular basis, more to understand the requirement of the team that is managing the business. Because, at the end of the day, as managers and owners, we need to understand the issues of the team members and tackle them in an appropriate manner.
PP: A professional will always put the interest of the business before the family, while the family-owned and managed company may have a choice and a conflict to comprise business interest or serve family interest. How do you work out an equation?
Manoj Mehta: (Paa) (MM) At Utility PrintPack, we have defined the jobs of the family member very professionally, with each one taking care of a segment of the business. We are adequately backed by the professionals who report to us. I think, we have a very well balanced mix of family members and professionals working towards one goal, that of success.
RK: The concept of management and shareholding of business has to be clearly defined. One should not believe that merely being a shareholder or partner in business, entitles you have the automatic right to manage the business.
FA: Bimal, do you have conflicts while making certain investments in technology?
BM: I have a reverse problem. It is my father who pushes me to add or bring in machinery, innovation and technology. We have changed tracks tremendously over the years. If it wasn’t for his support we would not have got into newer areas of business like document management; pre-media systems and solutions; and IT enabled solutions and services.
PP: I want one of the sons to give me a genuine difference of opinion you would have had with your fathers.
JM: ... It happened when we were on the verge of making an investment in technology. We were visiting Drupa with our technical team. We were in discussion with two companies, which were shortlisted and with whom we had reached at an advanced level of discussion. I was interested in one while dad thought the other was better for our company. We debated and dad’s opinion prevailed. I am glad that we did, because today that investment is fit for purpose equipment and is best suited for our needs.
PP: At the end of the day one must respect the elder, presumable because he is the wiser.
Siddharth: I think there is no substitute for experience. And I think if there is a conflict to a level where it cannot be resolved, I would go by the elder’s advice. It’s the safer option.
PP: How do you manage the politics within the company.
RK: The key to success for any business is transparent and open communication on business with the family members and with the other team members who are driving your business. Otherwise it is very difficult to deal with the politics in the company.
FA: All the sons here are well educated and highly successful. What are you doing or what different are you doing for the environment with regard to print industry?
JM: No, there is no conflict on this matter. I think sustainability and green are really the buzz words today. And we have paid a lot of stress on this subject as far as Utility is concerned. We have an alliance with Curtis, one of the greenest companies in the US, and we are taking the green initiative ahead.
Print Summit 2010 – which was organised by the Bombay Master Printers’ Association to honour Johannes Gutenberg was held on 24 February 2010. It attracted speakers from Bobst, Xerox, Arets, Ryobi, etc, who covered a gamut of issues. GMG had a display stall in which they showcased their solutions.
The event began with the inaugural session. The pre-lunch topics were – Good Finance Management by Anil Lamba; UV inks and LED technology – compatability and future by Arets Graphics’ Avik Chatterjee, and employee motivation by Anirudhha Limaye.
The post-lunch sessions were – Insights into FMCG packaging requirements and the challenges for the print packaging provider in the supply chain by Stefan Hilss of Janaschka Graphics; Digital printing trends and analysis by Pankaj Kalra of Xerox India; Understanding LED curing technology by Shinichi Sasaki of Ryobi; Paa-Son: A panel discussion (Pages 34-37) and Management: Family-owned businesses by Piramal Merchant of S P Jain Institute.
PrintWeek India was the official media partner for the Print Summit, which was attended by 328 delegates.
