B.E. (Mechanical), MMS (Marketing)
I head: The Prima Division of
Godrej & Boyce Mfg. Co. Ltd.
We deal with: Office Automation and
My Division’s sales turnover: Rs.
100 crores (2005?6)
Our competitors: MNCs like Ricoh,
Sony, Toshiba, Canon, etc.
My Division’s goals: To be
truly profitable (positive EVA) for 2005-06
My strengths: I am a team player. I
am committed. I use common sense and operate transparently.
My weaknesses: I am very sensitive
My family background: Wife ?
Engineering Consultant (Entrepreneur) Children ?Ritu (12), Rohan (8)
Father ?Retired as an Executive Director some years ago. Mother ?
Homemaker Brother and his wife ?Pilots.
My first crush: Is my last
My hobbies: Swimming
My pets: None
My favourite books: ‘Winning?by
I am content with: Life in general
I am jealous of: No one
I get upset when: Misunderstood
I fear: Nothing
I am proud of: Being part of a
The future of Godrej: Very
I love India because of: the
ingenuity of its people
There are some people who
deliver pep talk, dictate terms and like to call themselves leaders. There
are some who lead by example. Rajiv Jhangiani belongs to the latter
category. A self-motivated man with unflinching persistence to not only
turnaround the loss-making Prima Division into a profit-making one in just
one year, but also to aim its turnover from the present Rs. 100 crores to
a whopping Rs. 1,000 crores by 2015. Rajivi’s aggression is reflected in
his strategy rather than body language. He has brought in greater
accountability, clarity in thought, job profiles and boosted the team’s
morale. A person who relishes change, the modest Rajiv attributes his
success to ‘Team Prima? Small wonder he is highly respected by not just
his superiors, but also his peers and subordinates. RASHNA ARDESHER
catches up with this young and dynamic Vice President and Business Head.
The Builder of
has been given to understand that you are a very down-to-earth and
disciplined person, a firm believer in time management. That you are also
one of the best presenters in Godrej. Your marketing strategies and
decision-making abilities, too, are good. At the same time, you can be
tough with employees to deliver. How do you manage to strike a balance?
RJ. I don’t make a conscious effort to
strike a balance. Nor do I pretend in my place of work. That’s the way I
am. I observe people and try to imbibe their good qualities.
It is most satisfying to be part of a team
that can turn the business around. I am extremely fortunate to be part of
this fantastic winning team. All it needed was a spark to move the engine.
The last two years at Prima have been the most fulfilling in my 20 years?
Rajiv with his family
Ch. What are the
solutions/services Prima Division offers?
RJ. The Prima division offers automation solutions for the modern office.
Our solutions involve the deployment and integration of equipment such as
video conferencing, projection systems, plasma displays, photocopiers,
printers, multi function devices and more. We offer services in document
management and variable data printing. In the short term we will offer
vending services to offices and services in Retail Distribution to
Ch. Prima Division
sells “brother?products. As compared to HP, Panasonic, Xerox, why is it
that “brother?has not been able to establish itself well in the Indian
market? Due to “brother’s?small dealer network, spares/consumables are
not easily available. After-sales service is poor, according to the
outside market. Thus HP gains an upper hand. Why has Prima tied-up with
“brother?in such a scenario?
RJ. We were India’s largest distributor of fax machines some
years ago and at that point of time we were dealing with “brother?and
Panasonic apart from a couple of other brands. Panasonic decided to change
its distribution model for faxes in India.and we realised that we needed
to reorient too.. We then had an agreement with “brother?for their
exclusive commitment to Godrej as a distributor and what thereafter forged
was a robust relationship. “brother?has been doing exceedingly well since
the last two years and they have the potential to be a significant player
in the Indian market.
As far as after-sales service is concerned,
“brother?has given the task to a third-party service provider called
Accel IICM. Any change has teething problems. The arrangement is in the
process of stabilizing now.
Rajiv with his parents
Ch. What led
“brother?to remove its after-sales service from the Godrej portfolio and
hand it over to Accel IICM? Was it that “brother?was dissatisfied with
Godrej’s after-sales service? Or, is it Godrej’s tie-up with Xerox that
has led “brother?to take this decision? What do you think could be the
reason behind this policy change?
RJ. Brother’s decision to outsource warranty service to a third
party was prior to our association with Xerox. Our association with Xerox
will in no way compromise our relationship with ‘brother? Our business
with ‘brother?has grown significantly post our association with Xerox and
is getting stronger every day.
Ch. Is it true that the
Machine is the lowest selling product of Prima Division? Why?
RJ. It is only two years
ago that we started to develop on our own hot beverage vending machines.
We have recently collaborated with ‘Veromatic?from the Netherlands to
produce world class vending machines in India. This partnership involves
contract manufacturing the entire range of their machines over a period of
time, collaborative designing and a truly global opportunity in selling
these machines. Vending machines constitute a very small part of Prima’s
turnover as of now but that is about to change soon.
Ch. On the other
hand, we are successful in selling Panasonic and Video Conferencing
products. What’s so special about these?
RJ. Panasonic products are very good quality and our
relationship with them is very strong. Doing business with them has been a
good experience. The India market is alive to the possibilities of video
conferencing. We at Prima are successful in capturing this opportunity.
Ch. What are the
changes you brought about in Prima Division since the time you have taken
RJ. The most significant change is in attitude ?‘never say die? It
was a people’s movement that made the turnaround possible. All I had to do
was merely facilitate some changes. Initiatives such as margin management,
cost management, smarter purchasing, educating the field about the signifance of selling at optimal prices instead of top line pursuit went a
long way in the change process., Enhancing the team’s understanding of the
fundamentals of Finance made a huge difference in how they looked at
business. A very high degree of transparency at all levels in the division
has been achieved and appreciated by all.
Ch. Employees of
not just Prima Division but also of other Divisions have great faith in
you and look at you as a turnaround man. The level of job satisfaction in
Prima Division employees runs high. How did you manage this complete
turnaround in motivation levels?
RJ. I think the feeling of succeeding and being respected is
one of the highest motivators. A lot more remains to be achieved in the
area of motivation and it will be done over a period of time.
opportunities in Prima Division at the middle and high corporate levels
are rather limited.
CHANGE has been given to understand that, two years
ago when you joined Prima, it was a conscious decision on your part to
make Prima bottom heavy instead of top heavy. Would you like to change
RJ. Two years ago we had to go through the painful process of
downsizing. The structure at Prima works fine now, for the existing size
and nature of business. In a year from now, we hope to revisit our
structure and assess it for its appropriateness to sustain growth in the
coming years. This will throw up growth opportunities for many employees
Multi Media Projectors
Tablet LCD Monitors
Plasma Display Units
Touch Panel Control Systems
PC Card Readers
Currency Counting Machines
Ch. The factory
establishment at Shirwal, which manufactures manual typewriters and
vending machines, has been facing problems lately. Most workers who are on
contract, are demanding increase in salaries and permanent positions in
Godrej. To the effect that some orders remain pending due to their
non-cooperation or, rather, less cooperation in production. How do you
plan to sort this problem?
RJ. This matter has been amicably resolved and all is well. We
hope to shrink the pending orders quantity substantially in a short
Ch. You visualise
to be a world-class provider of communication solutions. Presently, are we
RJ. I believe we will need to reinvent ourselves as a business
significantly and will aspire to be best in class.
Ch. What are the
changes you intend to bring about in the next 5 years?
RJ. The big change is finding and evolving for Prima a business and
business model that can grow substantially. The business and the model
should have the potential to meet our aspiration of reaching the thousand
crore target in ten years?time. The business should have a prime mover
advantage. It should be simple, scalable and pilotable. Godrej & Boyce is
manufacturing biased. We hope to increas the ‘Services?content of the
Ch. You relish
change. What does change mean to you?
RJ. To me it means continuous improvement