Veterans Unpacked | Pradeep Poddar: “India needs to move upwards to a branded economy which will make valuations significantly higher”

He says he doesn’t believe in looking back but stays focused on the future. Excerpts from an interview:

What have you been up to since hanging up your boots?

I retired from Tata Global Beverages in 2016 after nearly 10 years. After retirement, I continued on the board of Monsanto India - was appointed by Hugh Grant, their global chairman in 2005. I came on the board of Welspun India in 2016, UFlex in 2017, and Polycab India in 2018. Continued as a trustee on United Way Mumbai Board. Helped craft the strategy and relaunched the Spaces brand for Welspun.

I was a keynote speaker at Nirma Institute Ahmedabad, IRMA at Anand, NMIMS in Mumbai on leadership and value creation. I have also been addressing a global consultancy firm on the possible impact of the pandemic and the way forward for businesses. Speeches at CII (Confederation of Indian Industries) events, and conducting of sessions for top management at Indian Oil Corporation have been other activities I was involved in.

What keeps you busy now?

Of course the boards. I feel passionately about the companies whose boards I sit on. All the three companies - Welspun , UFlex , Polycab - are billion-dollar companies, and have grown nicely even during the pandemic.

I have become the chairman of United Way Mumbai from June 2021, and this is challenging but refreshing.

During the pandemic we have been having our interactions virtually through Zoom and Microsoft meetings, and I learnt a lot about the digital medium.

We have been confined to our home at Napean Sea Road overlooking the sea and are grateful for that view. That apart, we also spent time at our Khandala bungalow in the midst of nature.

Looking back, can you tell us about three interesting events that have stayed with you since?

There are many events that have marked my career and evolution as a human being, but I will certainly try and narrate the ones that left an indelible mark on me.

In 1993, I lost my father and I was head of marketing and sales of Glaxo India’s foods business. At the same time, Glaxo India was engaged in deciding the future of their foods business. Humayun Dhanrajgir, the then MD, wanted me to engage with the global board and even changed the venue from London to Mumbai. The Shradha was not yet over and I had to come with my overgrown beard and hair to present, which I did for over an hour. T. Thomas, the chairman, said that 'the decision has been made by Pradeep - we handover the food business to the best possible suitor.' I was only 38 years old but that experience, which led my inputs to a significant decision, was memorable. The takeaway was despite a deeply personal tragedy, my dedication to my profession was obvious.

These incidents and many more have marked my career, and have given me confidence to dream big and try to reach out for greater achievements. There is a saying that 'try to reach out for the Sun and you shall fall somewhere in between', which is always better than setting a conservative benchmark.

What do you miss most about the C-Suite?

I am of the firm opinion that change is the only constant. We need to move forward to pave the way for the new. I hence do not miss the C-Suite. I have operated from the ‘Corner Office’ for two decades, and have learnt significantly from both my successes as well as failures. Let me admit that I did not have the courage to become an entrepreneur; the C-Suite provided the platform to live my entrepreneurial dreams. As the MD and CEO, I behaved like a management trainee but while I was a MT I thought of myself as being the MD.

If you were to relive your corporate career, what would you do differently?

I would not do anything differently. I was offered the MD's position at the age of 34 by an American conglomerate, but I did not take the offer because I thought I was not ready then. The compensation was fabulous and way beyond anyone's dreams but I did not take it. I was even selected by Castrol to take over from Ramesh Savoor who had been the country head for 37 years, but did not consider the offer. Of course, I still became the MD and CEO of Heinz India at an early age - 41 years old.

I don’t believe in looking in the rear-view mirror, but I look forward right through the windshield. Hindsight does not provide any solutions because the environment also continuously changes. There is nothing right or wrong in life as well as in business because decisions are made based on our understanding of various factors at that point in time.

I have been in the corporate world for nearly 40 years and things have gradually changed both internally as well as the external environment. The Indian economy was liberalised in 1991 and this changed the playing field of organisations - it became an open competitive environment. The Internet era came in the late-1990s and knowledge today is available at the click of a mouse. The challenge is hence about leveraging this knowledge to further one's business objectives.

The advent of social media in the late-2000 has truly challenged existing mindsets. This got further galvanised during the pandemic where we are using Zoom and Microsoft meetings for most or nearly all our interactions.

We have also gotten used to getting all our requirements (being met) at our doorstep as consumers.

Digital marketing has come into its own and companies are looking at having more than 30% of their revenues coming through this route. Digital marketing is significantly less costly than erstwhile mass media and enables us to focus on our target consumers. But this needs to be reviewed and the actual effectiveness measured over time.

Governance is being insisted on by the government, and companies have adjusted to this new norm and are gradually evolving to embrace ESG. Cyber security has become critical. The time frame for strategic planning has reduced from ten to five and now three years.

The people have given up on loyalty to have a wider choice of career opportunities. If we can retain them for at least three years, we are good. Variable compensation and stock options have started to emerge. However, the challenge as I see, is that youngsters are glued to their laptops and desist from working the market. Their knowledge stems from YouTube or the Internet, and they don't think it is important to validate the same.

Which business leader in the current crop impresses you?

Anand Mahindra; he has led M&M marvelously well and has groomed a brilliant team. They are perennially innovating, and have a lovely portfolio of vehicles decently priced for their target consumers. They are not overtly exposed in the media but continue to perform as per expectations.

The other is Inder Jaisinghani, the CMD of Polycab. They have recorded a revenue of Rs 8,900 crores with improved profit margin even during Covid times. His humility and openness to ideas and passion in driving business is mind-boggling . He started with one shop in the late-60s and has built this business one step at a time. He follows the principle of 'Hasten slowly'.

How did you plan for life after retirement?

I did not plan but I did want to advise boards going forward. And maybe run a company for at least five years while grooming the MD / CEO.

Both my kids are in the US. My daughter graduated from Yale and did her MBA from Harvard, and is now working for Google in New York. My son graduated from Columbia in New York and did his Masters in Computer Science from Cornell Tech, Roosevelt Island, New York, and is now working for Walmart Plus. We spent quite some time with them but had to defer our visit this year due to the pandemic.

At a personal level, fitness has always been a way of life for me. It's yoga, light walks, and light weights in the gym. My basic outlet is music and singing Bengali, Hindi and blues.

Is there anything you would tell your younger self?

Continue to focus on excellence, and have pride and love for what you do. Leave everything else to the Almighty.

What is your advice for the next cadre of corporate leaders?

Keep an open mind and enjoy your work. Embrace the changing environment and focus on leveraging technology. Believe in people and continuously train them. In India, we need to build brands, and focus on having a few and invest in the identified target consumer. India has been a commodity economy, but we need to move upwards to a branded economy which will make valuations significantly higher.