The CMD of CavinKare was speaking at the inaugural edition of TVNews4U.com Straight Talk – The Brand Stories.
Urging youngsters to turn entrepreneurs straight after college, CK Ranganathan, Chairman and Managing Director, CavinKare, blamed the ‘extraordinary emphasis’ by parents and society on regular employment for discouraging potential entrepreneurs.
He was speaking in a session themed ‘The pioneer and the scion’ at the first edition of TVNews4u.com Straight Talk – The Brand Stories hosted in Chennai on 30 November 2018, alongside son and MD of CK’s Bakery, Manuranjith Ranganathan. The talk was moderated by Hemachandra, CEO, Brand Avatar.
“Parents and society must encourage youngsters to take risks; that is not happening,” he said, referring to the Tamil adage advocating job security: ‘Kaalkasairundhalum government kasairukkanum’ (Even if it is a few paise earned, it must be government money).
“My parents encouraged us to create jobs, not take up jobs. All six of us (siblings) haven’t worked anywhere else. I think what is important is the upbringing,” he added.
He was responding to a question on reasons for the smaller number of start-ups in Chennai, as compared to other start-up hubs in the country. Elaborating on the need for a change in mindset, the entrepreneur explained, “I’ve told my children this – I wish that you fail, and fail early. If you fail early, your learning will be much better. You will be extra careful with every next step. That’s how you learn.”
Referring to youngsters who aspire to turn entrepreneurs after working for some time, to shore up some capital, he questioned, “Who says you have to invest your own money?”
With government providing unsecured loans today upto Rs 1 crore and venture capitalists looking for ideas and talent to invest in, he posed, “Why are we still risk-averse? In my view, the best time to start off in business is straight out of college. If you take up a job, you buy a bike or car. Then they will get you married, you buy a house. Your risk-taking nerves get cut off one by one!”
Ethics in business
Ranganathan underscored the importance of consistency in ethics while pursuing business, for sustained growth.
He said, “You can succeed in business. But without ethics you cannot sustain that success. That’s (ethical practices) the only way customers, vendors and other stakeholders will want to continue the relationship with us. Without ethics, your employees will move out, so will other stakeholders. You cannot stand alone and succeed in business.”
Rationale behind going public
CavinKare has been in the news for its stated intent to go public in the next couple of years.
Affirming the same, the company’s founder reasoned, “In the next two to three years, we should be in the market. There is no necessity to go public but we have chosen to. Only when we go public will there be pressure on us to achieve sustained business growth.”
Slew of herbal products
Responding to a question on rising demand for herbal products, Ranganathan announced that CavinKare had lined up a slew of natural products that would be launched in the next six months.
He concurred that the consuming public was increasingly expecting natural products, adding that the launches would cater to this demand.
‘Our own measurement model’
CavinKaredoes not reply on Television audience measurement data, and charts its own media plans with inputs from multiple stakeholders, noted the CMD, responding to a question on reliance on GRPs by advertisers.
“We don’t rely on BARC data or anything else. We have our own common sense, our distribution, our field force… we have a lot of sources in the market to help us decide how to reach our target audience through which channels. This model has been highly successful. Whenever we have relied on ratings to make TV media plans, it has been a big failure,” revealed Ranganathan.
He contended that with the same spend, the company’s brands were able to get better reach to their respective target audiences with the in-house approach.