LONDON (UK) – On the second day of ‘Isha Insight: The DNA of Success’, former CEO of Jubilant FoodWorks Ltd Ajay Kaul had a tete-a-tete with Indian FMCG major Britannia MD Varun Berry, who delved deep into how firms can safely navigate the choppy waters of the pandemic and stay afloat. He also shone light on how 120-year-old Britannia joined the league of Indian companies which showed resilience during the lockdown by unlocking their potential.
With over three decades of industry experience, Varun took over the reins of Britannia in 2013 and transformed the firm into a 60-country presence food company. He recollects how he and his team reacted when the national lockdown was announced in March. As soon as we came to know of the lockdown, we did set up a remote calling facility for our team the same day and we discussed the future course of action, he said. “We did not know what is going to happen and if our plants will be able to operate. What we discussed were different scenarios that could arise. We connected seamlessly and we gave a shoulder to each other,” he added.
Despite facing the odds of the lockdown, Varun put in place strategies that made the company weather the storm and emerge stronger. “We realised we are not going to have the production we require and will not be able to distribute as well. It was very important to prioritise,” he said, adding that they selected 20 per cent of the brands that would give them 80 per cent of the revenue and focused on them. “And they were Good Day, Marie and Nutri Choice. We decided to go for family packs as people’s choices changed and we grew. We rallied troops by having a business contingency meeting daily – one hour with the larger team and half an hour with every region. In a week, we connected with everyone in the organisation and that worked wonders,” said Varun, whose earlier stint at Pepsico took the firm to greater heights.
He also put the spotlight on changing consumer trends during the lockdown period and how they changed tack. He said the team at Britannia realised that home consumption would stay for a longer period and consumers would stick to trusted brands in a crisis. “We understood consumers would choose products which are safe and sterile,” he said, before explaining how the supply chain was shortened by exploring substitutes in the country for ingredients coming from overseas. “The next thing we focused on was shortening the distance travelled to the consumer. We knew the importance of neighbourhood stores and so retail distribution went unhindered. We learnt value engineering, cost efficiency and margin expansion,” he added.
In a message to the participants of the event, Varun said brand building was important and there are certain things that need to be taken care of. “If I am the brand, there are two questions you have to answer for yourself. The first is ‘who am I’. Let’s say if I am Good Day, what is it that makes me Good Day? That question has to be answered really well. Another question that needs to be answered from the brand perspective is ‘why buy me?’. If you are able to answer them, you will move in the right way.”
When asked how he manages to keep things simple during these volatile times, Varun said entrepreneurs have to take uncertainty very seriously and deal with it in a very nice way. There has to be a passion to excel and compassion for what is happening at the ground level so you can help people who are facing disruptions on their part. Convert challenges into opportunities, he said.
On building a culture of innovation in the organisation, he said the first step was to have an open-minded thought process. According to Varun, the youth who run small firms have a much more open mind and perceive things in a different way, be it from brand names and design to packaging. “There is a thin line between innovating and innovating over the top. Don’t take it over the top,” he said.
On the aspect of stress building up in employees who are forced to work from home, Varun said it is very important to create stress busters and give tools required for comfortable working. Most important is connectivity and providing them help if required, he said.
With regard to the scaling up process, he wants entrepreneurs not to worry about the valuation of the company. “Think about building a company and not about shareholder value when you start. There will be pushes and pulls and crisis moments in every business. When that bump in the road comes, people start to point fingers at each other and look in different directions. A business leader has to ensure that his team is calm and composed and keeps marching in the same direction,” Varun said.
“Navigate the boat well and understand where the wind and waves are coming from, and pre-empt how to manage them better. After all, the winds and the waves favour the strongest navigator,” he told entrepreneurs.