It’s common to bump into a CEO of an MNC who advocates investments in human assets during uncertain times. No surprise that they succeed too!
Anirudh Dhoot is the scion of the Videocon Group. He is currently serving as the Director of Videocon Industries, and looks after many divisions, including the Consumer Durables vertical, DTH, Videocon Mobile services and Videocon Mobile (hardware). Before moving into his new role, he was heading the Electrolux business for the Group in India. Dhoot is an alumnus of the Cardiff University, UK, from where he completed his MBA. Having joined the family business straight after post graduation, at the age of 21, he became one of the youngest CEOs of India Inc. It was under him that the company’s State-of-the-Art greenfield plant in Kashipur (Uttarakhand) was set up.
The credit of setting up Videocon’s ambitious Power projects in Chattisgarh, Madhya Pradesh and Jharkhand goes to him. In an exclusive interaction with onkar pandey of honchos, Dhoot talks about how a flawless business idea and passion and commitment to work, are the keys to seeing your company through tough times. According to him, encouraging employee training and putting in place a strong work culture makes uncertain times certain!
Global economic indicators have deteriorated drastically as compared to the 1990s. Even the walls of the Indian economy, which we thought was insulated from the ill outside weather has started developing cracks, with growth in the manufacturing and mining sectors declining in recent months. These are therefore definitely uncertain times. How does Videocon move ahead in such a situation?
We are a large diversified conglomeration. So the best part is – even if we take a hit in one business, there are multiple number of other businesses where we gain.
Global economic indicators have deteriorated drastically as compared to the 1990s. Even the walls of the Indian economy, which we thought was insulated from the ill outside weather has started developing cracks, with growth in the manufacturing and mining sectors declining in recent months. These are therefore definitely uncertain times. How does Videocon move ahead in such a situation?
We are a large diversified conglomeration. So the best part is – even if we take a hit in one business, there are multiple number of other businesses where we gain.
But definitely, every organisation has its unique problems, facing uncertain economic times are a challenge for each – whether core businesses or diversified multinationals like ours. In my opinion, the way out such a deteriorating state is induction of more manpower and getting more talent on board. We at Videocon have especially during weak times, focussed on training our staff better and equipping them with better operational skills. For the sake of this, we are ready to cut down on other unwanted expenses.
Another area beside manpower is innovation. Despite the past few years having been rough. But despite that, we have not cut short on our budgets for R&D and new technology development, as prosperity in future is all about investing in the present, and especially on technology.
You said investing in the present on people and innovation is the keys to dealing with uncertain times. So how far is your planning time frame?
Five to ten years at the least. What happens is that traditional organisations, including many Indian organisations, think very limited. So one has to develop a big vision, which is your overall planning for the next five to ten years. Understand this – uncertain times also don’t last forever. What is happening this year is a temporary cycle. And you don’t know that a couple of months down the line, growth across the table might come in. But if you are scared enough not to invest in people and technology, you certainly will fail to take advantage of the good times.
You said CEOs must have a long term vision. So is it true that during trying times, corporates bank more on a quarter to quarter survival strategy?
I think such worries are more with small companies, as they have to fight for survival. In our case, we are a robust and large organisation, with a big asset base. Companies like ours look at even tough times as an opportunity to grow our business. Like Samsung or Nokia, despite rising competition from smaller, local players, they have ensured that their company’s growth and the growth of the overall handset market are both ensured. So we should not worry about uncertain times. Uncertainty does come, it’s unavoidable!
Your honest opinion – we speak about slowdown a lot these days. Do you feel that Indian companies too have been affected by problems in the global economy?
I think so. This slowdown is global in nature. But having said that, I would say that any Indian company which worked on the right fundamentals, was not scared of the trough of the economic cycle and continued to invest in building the right assets, isn’t facing problems yet. The trick is: even during uncertain times, focus on growth. Period.
You said investing in the present on people and innovation is the keys to dealing with uncertain times. So how far is your planning time frame?
Five to ten years at the least. What happens is that traditional organisations, including many Indian organisations, think very limited. So one has to develop a big vision, which is your overall planning for the next five to ten years. Understand this – uncertain times also don’t last forever. What is happening this year is a temporary cycle. And you don’t know that a couple of months down the line, growth across the table might come in. But if you are scared enough not to invest in people and technology, you certainly will fail to take advantage of the good times.
You said CEOs must have a long term vision. So is it true that during trying times, corporates bank more on a quarter to quarter survival strategy?
I think such worries are more with small companies, as they have to fight for survival. In our case, we are a robust and large organisation, with a big asset base. Companies like ours look at even tough times as an opportunity to grow our business. Like Samsung or Nokia, despite rising competition from smaller, local players, they have ensured that their company’s growth and the growth of the overall handset market are both ensured. So we should not worry about uncertain times. Uncertainty does come, it’s unavoidable!
Your honest opinion – we speak about slowdown a lot these days. Do you feel that Indian companies too have been affected by problems in the global economy?
I think so. This slowdown is global in nature. But having said that, I would say that any Indian company which worked on the right fundamentals, was not scared of the trough of the economic cycle and continued to invest in building the right assets, isn’t facing problems yet. The trick is: even during uncertain times, focus on growth. Period.
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