Refusing to upgrade the Colonial Gift

The debate is not if the British plundered and left India and many other colonies in disarray. While one might say that the colonial rule did erode some of the cultural and material wealth from India, it did leave behind some positives which we practice even today. Apart from unifying India from a cluster of 500 odd princely states; railways, post & telegraph, education, law & judiciary, democratic constitution, unified armed forces are just some of the many. The only seeming problem is that while some of the colonial blessings have changed to keep in sync with time, we are refusing to change some for a post- Independence India of today.

My last blog spoke on some colonial legacy which builds the divide between the armed forces compared to the paramilitary and the police. Hot on the heels of that I have come across another set of professionals refusing to give up their colonial habits- this time it was the lawyers. The Bar Council of India (BCI) rejected the suggestion by the former Chief Justice of India, Mr. RM Lodha to run courts for 365 days to clear the huge backlog of cases and provide speedy justice.

(http://epaper.dnaindia.com/story.aspx?id=65435&boxid=37820&ed_date=2014-06-06&ed_code=820009&ed_page=9)

The argument presented by Justice Lodha is impressive; if healthcare can be offered 365 days; why not justice? What is amusing is the basis the BCI has rejected the suggestion- “It is not possible for advocates to attend court for all 365 days. It is neither practical nor feasible. Without rest, advocates cannot work throughout the year,” said BCI chairman Biri Singh Sinsinwar.

Picture this; a corporate works a total of about 230 days (considering Saturday-Sunday as off) across the year, the postal employees and government offices work for 280, the armed forces, healthcare and police; well virtually 365 days. Even teachers are working for about 250 days. So why should the judiciary work only 210 days (190 if it’s the Supreme Court), when the backlog of pending cases is so huge?

The reason I believe is the fact that procedures and duration of the courts is still the colonial legacy.  In colonial times, Indians were allowed to practice as layers, but majority of the Judges were British. Holidays, summer breaks etc. were all a part of their life style as there was no immediate need to resolve cases. Majority were cases against Indians and I don’t think it mattered much to them if the system took its own time to offer justice. The presence of so many summer retreats across the country is just enough a case to indicate that the high rankers in the British administration took vacations really serious.

But why does the law fraternity still desire to enjoy that life style? Well technically, who will want to give up on official 4 weeks of summer and winter vacation granted as a part of legal procedures as designed by the system?

Anyways, I did not want to get too upset on the working days issue as I’m sure the privileged are never going to budge on their stand. But then I read the same article in another publication and this has another demand. http://m.economictimes.com/news/politics-and-nation/bar-council-rejects-cji-r-m-lodhas-plan-to-keep-courts-open-365-days-a-year/articleshow/36135534.cms

While the BCI rejected the CJI's proposal, it decided to make a demand to the Union government to exempt advocates from paying toll. And what a fantastic reason to offer, -"Advocates render social service to the community". So what next, doctors, psychologists, environment scientist and workers- who all should we not exempt from paying toll for using public infrastructure?

As an ordinary citizen, I feel as if I’m qualified, employed and pay my dues in all honesty- but I feel soon to be part of a breed that will be left without any trace in this country for not having the role of a super human engaged in activities which were once exclusive for the colonial rulers. What legacy we want to live under- the uncommon Indian!!!

Still living in the Colonial Times

Last weekend, I was driving down to Pune accompanied by my father and on the way I saw something which left me with a whole herd of why’s and how’s in my mind. In fact what I wish to express my opinion about this knowing that it can invoke serious irk from a lot of people who guard our national interests.

It is not unusual that there are cars ahead of you which either being owned by a politician or his family members travelling, some central government officer or just someone trying to throw his weight around to be excused from paying the toll for the road. There have been cases where toll booth operators have been injured for just doing their job well and demanding proper documentation towards the exemption. It has always baffled me on how low can some people stoop to evade a toll of Rs. 195 for a car in an era where a litre of petrol costs upwards of Rs. 80.

So this time, when I saw a card being flashed out from a SUV ahead of me, it didn’t take me by surprise. While his appeal was rejected and he paid the toll, what was surprising though the reason he was seeking an exemption: Ex-Army. I could not ignore the smirk the toll booth operator had on his face; it was as if saying, ‘Just about everyone will flash some card to claim he’s exempted’. Which brings me to a pertinent question- why are our armed forces a privileged lot? Why should a well off ex-army try his luck to evade a petty toll?

Lets face it, anyone in the armed forces enjoys a special waiver on anything ranging from a soap bar to a family car. Most of their accommodation areas are from the colonial era; even the recent ones are built to a scale that is much higher than a regular apartment. If at any place they are unable to get accommodation in their own premises, the government has places available to them on rent less than a postal envelope. They have their own schools, waiver of fees in aided private schools and a special quota for their wards across all colleges and professional courses.

Salaries for the people in the armed forces are as per the rank and cadre (I guess the Pay Commission lays out the salary band); but there are special considerations for people having a posting in certain areas or on the border. I am not sure if they need to pay income tax on their salary and if the special considerations attract FBT. (Better clarity on IT rules sought)

Bottom line; I feel our armed forces are a pampered lot; so much so that one even after the end of service likes to throw his weight around. I’m pretty sure the best argument to counter my feeling is going to be ‘We guard the borders and are the reason you sleep at peace every night. We are away from our families on a day you are celebrating festivities. We have deserving to earned the privileges.’

I do not have anything against anyone who will say this to me as each and every word is correct. My only complaint- while I agree to the fact that every facility, privilege has been endowed to the fact that the armed forces stand prepared to lay down their life for the country, why are the para military and state police in such shambles?  Why are the Police line housing quarters a sign of degenerated and neglected state assets thriving in the unhealthiest conditions? What denies the children of the Police and Paramilitary the same quota in colleges and professional courses? How is a CRPF or State Police jawan patrolling in Gadchiroli or Balaghat less in his deeds to face the Naxals?

The answer I believe lies in the origins of the Indian armed forces and the Police and paramilitary. The British Colonial Rule in India was established on the might of its army and naval power. The local Indian princes employed against each other to reign supreme while paying a hefty sum to the British. In due course, the local armies were relegated towards policing within the kingdom while external security went into the hands of the British. Some like the Police force in Mumbai were local militia under the Bhandari’s which got formalized after 1857. All the high ranking officials in the Police were British and objective of all of the local policing agencies was managing the local people and crimes. The Army thereby remained exclusive to manage greater affairs.

The disparities that originated in the colonial times continue even today. The armed forces are given an allowance for posting on a border front or sensitive area, this was in fact an offer to lure British officers to take up assignments in India (otherwise considered a difficult place for people to have home and settle in). The Armed forces have exclusive clubs and golf courses while the Police lack even basic facilities at times.

You still believe I am harsh about the conduct of the ex-army guy trying to push his luck at the toll. Try this- a retired army officer will still demand being addressed as Captain, Colonel, Brigadier, etc; ever heard anyone being called Inspector, ACP or Commissioner once they retire? Reason- you are civilians and we are the armed forces. We have earned it. Fair, but isn’t your achievement as a defence personnel dependent on arms, satellites, technology and efforts of a civilian? The manner in which the armed forces distinguish their superiority is something the colonist would have been proud of.

My closing comment; why 67 years after the end of the colonial rule, we have not yet realized the equal worth of human life dedicated to the nation in two different moulds. Why a cop who is standing  for 12 hours under the sweltering heat to clear traffic, chasing petty thugs, offering security cover during festivities less valued than a jawan standing at a border post away from his family? When valour from both can earn the same Ashok Chakra; why can there not be equality when it comes to the life and facilities they get? 

Demystifying Modi- A marketing perspective

The General Elections of 2014 have officially gone down as the biggest democratic exercise globally and the mandate has been an epic one for India. For the first time since 1984, a national party has the majority to form the government on its own and based on some indicatives, possibly the first time after 1972, a national leader selected by the people out of choice rather than the lack of it.

Yes, the BJP has emerged absolutely dominant across 5 states and enjoys over 80% votes in 5 others and the credit for this should go down to the grass root party workers. But for holding over 200 public addresses, inspiring and infusing enthusiasm in the party workers and building himself as a force to reckon with; it will be a complete three act dominated by Narendra Modi.

Leaving the debate whether brand Modi won the election or was it anything else to the political experts, I am only going to apply basic marketing principles to the success and place forth a simple perspective.

Give the people what they want: The very definition of marketing is focussed towards the needs of people. One factor India has been missing for a long time has been a strong and decisive central leadership. Possibly Indira Gandhi was the last known exponent of this trade and it reflected her resounding re-election in 1972; all thanks to her transformation from the ‘moom ki gudiya’ to the lady behind the victory in the Bangladesh liberation war.

Beyond elections have been just a series of counter actions and replacements to previous governments but never based on leadership. Morarji led coalition in 1977 an outcome of public dissent against the Indira governance. The re-election of Mrs Gandhi was due to the failure of the Janta Party. Rajiv Gandhi in 1984 got a massive sympathy wave, VP Singh in 1989, succeeded on the misdeeds of Rajiv, Chandrashekhar was a stop-gap and Narshimha Rao in 1991 got the benefits of another sympathy wave for Rajiv.

The 13 day Vajpayee government in 1996 failed an absolute mandate, Deve Gowda and I K Gujral were again stop gap arrangements. Vajpayee managed a coalition finally in 1999, but it failed to be decisive as it was always held at ransom by its allies. Manmohan Singh in 2004 was a last minute socially acceptable alternative and in 2009 there were little or no alternatives.

Narendra Modi in 2014 was a sign of definite leadership put forth before the Indian electorate. Who will be the PM had a definitive answer for months leading up to the elections and it was the biggest thing to have worked. Critics, party members and even media has come out saying that in a record turnout voting exercise; Modi was instrumental in installing confidence in the minds of a voter to give up on their inertia and apathy towards the government and exercise their vote.

A robust product: As a 3^rd term CM of one of India’s most rapidly developing state, Modi had suitable credentials to back him as a leader with decision making abilities. Gujarat under Modi was becoming a model state. The biggest beneficiary of the Sardar Sarovar project, water had now reached desert regions of Kutch and combined with hydro and solar power projects on the Narmada canal, Gujarat was now a power surplus state.

From an economic perspective, the swift action for the shift of the Tata Nano project in Sanand with the record time approvals and land allocations was a demonstration of the commanding stature of Modi against other state governments. No one could make such a profound statement by getting the approval from Tata, the gold standard in Indian industry, for their dream project.

Modi has gradually developed as a mark of decisive, progressive and development led governance. This was a much higher product promise presented to the Indians in a long time.   

Power of promotion: Like most others who have risen through the ranks of Rashtriya Swayamsevak Sangh (RSS), Modi has the mass appealing oratory skills that we seek in a leader. He had been a crowd puller with his well-articulated language and confident words.

In addition, the BJP left no stone unturned to build a nationwide campaign across every form of media. Apart from the effective use of social media, television interviews, radio ads, ground activities, rallies and even use of holographic at places- it was a complete and through media campaign.

Going places: Addressing 185 rallies in 45 days leading up to the final phase of elections is no mean feat; it averages to 4 rallies everyday across various parts of the country. To add to it, Modi never stayed over at any place post his address and made sure he was back in Gandhinagar every night. What this super human effort achieved was connecting to the last mile of voters and a gratification of sorts to every single person that the man has taken the effort to meet me in my town.

Multi- appeal positioning: Modi was remarkable positioned to appeal to every Indian in some or the other way to counter the political shortcomings on his resume. A 3^rd term CM with a reputation for global recognition towards good governance was the solution at hand for a country ridden by corruption and scams. For the corporate world, he was a morphine shot in the waiting to aid a crawling economy. His modest backgrounds echoed the sentiments of a commoner while his rise thought the RSS ranks was an encouragement to his party workers.

If religious fundamentalism was a stumbling block, the development model was a redeemer. If zero national experience was a flaw, his work under similar conditions in Gujarat was a strong point. If his age was a spot of concern as compared to other campaigners, his experience overruled the matters.

In an overall, there can be many more factors which we can draw; these were some prime in my opinion. The only hope I hold in my mind is for the faith rested by the voters on this one man leads him to make an incremental change to the lives of every Indian. 

Who moved my manpower?

I had a new guy join us in accounts recently and in a casual conversation I got know that his father owns and runs a workshop for two wheelers in the suburbs. I went ahead and asked him that did it never occur to him to join his father in his business. The reply- my father told me to get my hands greasy only if I failed with the pen. It is a dying trade and getting mechanics to work for you is difficult.

The answer was a familiar one considering most of my father’s friends were connected to the auto business in some or the other way. The one who was an expert in auto engineering had only two mechanics and one electrician handling all the work for an average 7 cars daily. A day when either was away meant he either had to send the car to another place or hold the job for the time being.

The other who managed the tin work was short on painters. The act of hammering a body part to shape was abandoned as there was no one available for the job. Cut- replace panel-weld-paint was the new mantra as it was less dependent on skilled labour availability.

All the three maintained one opinion; this was a result of acute shortage in people who wanted to work in these professions any more. They would rather like to while away time all day not doing anything. If someone did join in, they would spend a few months, get to learn on the job and set up their own shop with the limited know how. The result: they do a shoddy job and loses credibility for everyone.

Workers for such jobs are both local and migrants. The local usually comprised of the ones who did not wish to work unless they felt the job was up to a level they are happy with. They would rather prefer a job as a loader or cleaner in a mall. Why spend the whole day in smoke and greasy palms when they had the option to spend the day in AC to lift a few boxes or clean a lavatory once in a while? The migrants were not looking for long term jobs. They were all up for making the quick buck and spending 3 months in their native on agricultural jobs on their own land.

Bottom line- in an urban space there is work and odd jobs for the taking; the problem is there are few takers.

But this problem is not reserved to the urban landscape of India alone. A typical problem in Indian agriculture has been majority of the farm lands being small and which are not suited for use of large tractors, harvesters and mechanized farm equipment. As a result, most of the work has been majorly handled by farm labourers and landless farmers who toil in the slashing rains and sweltering heat. But in recent times, farm labour has become scarce and expensive.

A traditional woe I used to hear from in around my piece of land was that rapid industrialization offered better opportunities for the youth to earn better and throughout the year and it was eroding the agrarian labour force. What I recently also came to know from the news lines is a new giant has come up to disrupt the rural economy- NREGA.

Launched in 2005 by the government, the purpose of the National Rural Employment Guarantee Act was to facilitate small and landless farmers with employment opportunities during the months when agricultural activities are on a standstill. The government would engage the labourers for a minimum of 100 days per year in rural developmental activities within a radius of 5 Km (10% extra wages if they had to go beyond) for rural developmental activities like irrigation facilities, afforestation, all year access etc. Since the claim was towards creating jobs rather than build rural infrastructure, I felt this was something on lines of what Roosevelt has done post the depression in US.

As noble as the idea was, the news reports claimed that implementation of NREGA has been shoddy and planning and timing of the projects was not as per the season cycle for agriculture. (http://www.firstbiz.com/economy/bad-mnrega-jobs-planning-causing-farm-labour-shortage-panel-44231.html) With minimum wages of Rs 175 per day, NREGA was in effect siphoning off farm labour that otherwise worked for as low as Rs 80 with small farmers. This has given us two damaging results: rural labour becoming scarce and what is available is expensive. This in turn is hurting the agricultural produce.

And again, human nature has the power to defeat an ideology based government policy. NREGA offers employment and money to go around while Food Safety bill ensures there is something to eat at the end of the day- so why should one work? I found this report in another newspaper which further gave an insight into a small farmer’s plight. (http://www.dnaindia.com/india/report-how-nrega-and-food-security-will-impact-poll-outcome-in-bihar-1984464)

I would like to refrain from making any sweeping statements here; but one thing is for sure- rural or urban, people have lost their pride and dignity in labour. If livelihood is being offered on a platter- the labourers will grab it wholeheartedly and leave their employer wonder who does my job now?

India Inc. versus Rest of the World

The Great Indian Political Tamasha, the general elections are over and as we await the results and the new political equations to take shape, there is a positive vibe created in the business arena. The stock markets are breaking into new highs every single day and the likelihood of a pro-growth and investment financial policy is building the new hope.

The biggest talk is around a change in the FDI policy and we are still in fear about 100% FDI in retail sector. Retail is a primary sector catering to the billion plus Indians directly and while it might be the most attractive area for FDI, India Inc. has fears that it has the potential to destroy the domestic retail segment.

Honestly, I find this as no threat at all and have complete faith in the enterprising attitude of Indians. Retail in India may get organised, supply chain may get streamlined and middle men may find it difficult. But increases in competition from both national and international players is likely to erode the margins and pass on benefits to the consumers. But will it destroy the mom-pop shops or the local baniya- unlike many I don’t think so.

Organised retail in India has been around for close to 15 years and has had little impact on the so called unorganised retailers. Pantaloons and Future group along with Spencer from the south might be credited with the first noticeable impact in modern retail in India, many others soon entered the arena. Today, along with Big Bazaar, More (Aditya Birla Group), Reliance Super Mart, Star Bazaar (Tata), D-Mart are all selling from groceries to clothing under the same roof. Competition is growing with e-retail has now entered every segment (even groceries).

But this has still not eroded the local baniya, vegetable vendor or clothing store. Yes, there is a change in buying behavior from the urban middle class who have changed to modern retail. But there are some factors which are very intrinsically Indian which have kept the local retailers alive. I sight these as a reason for closure of some of the Big Bazaar outlets and change over to KB’s and the end of Subhiksha retail and Truemart (a now defunct retail chain by Piramal).

So what differentiates Indian compared to the rest of the world in terms of buying behavior? Three simple rules: Indian customer appreciates being treated like a king, shown a variety of products with a recommendation from the sales guy and that opportunity to touch and feel product before they buy.

Let me pick a small example of buying a shirt to illustrate. What consideration goes into picking a shirt? Colour, pattern, design, size and pricing- mostly standard. But what about variety? How often do you leave a store in a mall saying I didn’t like anything and how often does it happen in a local store? Spell a desire for X style in Y colour in a Z size and if not available today, a local store will get it organised in a few hours or a day. If there is time- they would even customise.

The difference lies in the attitude. For a store in a mall or a super market; you are just one customer; for a local retailer, the attitude changes to a feeling of being the customer. The difference in salesmanship from someone in a mall to a Sindhi/Punjabi salesman in Gandhi Market is amazing. I challenge anyone to walk into a store in the market and walk out not having bought something they wanted.

Let us talk groceries now. Most of the local groceries in Mumbai are run by the Kutchi or Marwadi communities. Stories about how these people manage their business and finances are legendary. But apart from being a shrewd business oriented (and not stingy as shown in movies) and community driven set, they are also enterprising beyond imagination. Let me just illustrate how well they function by a live example.

Bhandarkar Road in the prime Deccan area in Pune once had an outlet of Spencers, Trumart and an assortment of local kirana stores. The advent of Marwadi run shops slowly entered the area and simply based on their enterprising attitude and range of products eliminated shops run by local Marathi people (Not a difficult task considering they are known for not so great customer outlook and pride for ‘We have no branches’).

The next they took over the organised market; armed with very simple tools- service hours of 6 am to 11pm and free home delivery in two hours- irrespective of order value. Trumart meanwhile lost the plot under management issues and exited the arena, leaving Spencers to wage a lone battle against the local stores. This too did not last long and today has resulted in a scenario where the entire road has nothing but two Marwadi grocery stores catering to them.

Bottom line; Indians engaged in the retail sector are culturally very strong and enterprising to be subdued by any form of retail invasion from rest of the world. If any, it will only inspire the existing organized retailers into improving their standards and offer better quality, pricing and service to the consumers.

The Terabyte Problem

I recently came across an online ad of an online retailer- Forget GB, welcome to TB; objective was very simple: push the sales for the external 1TB hard disk into high gear. Does it work- well if I cite personal examples, they do. I have one for the last 3 months, but to this day I have not stored a single file on it. The main reason is that I have another one of 320GB and even that is not utilized to the full.

I am at a loss to understand how I ended up this way. I upgraded my desktop (I still have one) to 500GB, have a laptop with the same, my father has two laptops with 320GB and 50GB at hand. What is now lacking is content to fill up all this space. My desktop is my active backup for all my media and has a mirror on the external. This also included taking data off DVDs which I burnt when I college.

Even then, at present I am facing a very peculiar problem which I never have faced before- a problem of plenty.

I take pride in the fact that I am amongst the generation which welcomed computers into Indian homes. Honestly, this also gave us a chance to be witness to changing data storage devices. My friend from childhood across the road had a Sinclair machine with a tape drive. We actually had to insert game on magnetic tapes to play. The somewhere in 1994, my brother got home a 5 1/4” floppy from his computer class which was like a prized possession. A year later we had a 286 at home and 3 1/2” floppies made their debut and I can say we lasted on 1.44MB data limitation till 2004. Sure the CDR and CDRW had arrived but USB pen drive was like a paradigm shift in portable data.

While in MBA, the minnows had 128 or 256MB pen drives and at that time, the Data Lord was my roomie with a 500GB HDD in 2006-07. But most of these Data Lords I have seen,  have a disorder of a compulsive type- they cannot survive without downloading; mostly movies. For them, pride runs in the fact that I have an unlimited high speed internet and movies and music spread across 3 to 4 external drives of terabyte capacities. What is a disaster though is most of these guys have no idea of what all they have and where. Worse is they have not even seen half of the stuff they have downloaded (my roomie was an exception here)- a colossal waste in my view of time and space resource.

One thing I have realized is that a lot of data space was lost in duplication of content. With me, the same movies existed in three different folders- Downloads, English and New Movies and as a backup also on some DVD which I had now completely lost track of. The same was also true for music; same songs under genres, artists and parts of folders that were exchanged between friends and family. My mission to clear out duplication resulted in deletion of unwanted archaic data as well as leaving me with load of space.

So bottom line- how much is enough? I really don’t know. But what I am sure of is that there is no use filling up terabyte space with movies, music and other stuff unless you go back to it time and again. Coz honestly most of it is not so rare and so unique that you will not find it again someday. 

Achievers from the bottom of the pyramid

In my blogs, I have often written about Indian retail and home grown brands which have made it big in this space. This time around, I feel I need to talk about brands which may not have a dominant national presence but have actually realigned market spaces in their own small way to challenge multinational and established brands.

If you are in any way connected with marketing, ‘Bottom of the Pyramid’ is not a new phrase you might come across. In fact it is not new to begin with as its first recorded mention was by Roosevelt in 1932 as he unveiled plans for wide scale infrastructure and development projects in the shadow of the depression. The phrase again caught the wind in its sails when C K Pralhad and Stuart Hart proposed the market development strategy for the billions earning below $2 a day and found buyers at times when the urban demand was unable to drive the economy.

What is admirable though is that this concept was implemented in India far before the marketing strategy was proposed and the point where the company which implemented this stands today is a testimony to its success. Way back in 1980’s a then small company from Chennai with a manufacturing unit in Cuddalore run by C K Ranganathan started selling Chic shampoo in a sachet priced at 50p. The FMCG market in India at that point had big wigs like Hindustan Lever, P&G, TOMCO offering shampoo in bottles, while traditional herbs like shikakai and reetha were also prevalent.

Shampoo or a soapy emulsion have always been a part of the Indian personal care arena for two basic reasons: India is a tropical country making sweat and grime an everyday thing- not to forget the fact that use of oil in hair for nutrition is a tradition well entrenched. In both cases, removing the oil from the hair and scalp was a need irrespective of socio-economic class. The availability of shampoo at an affordable price, in traditional fragrances like jasmine and enriched with the goodness of natural extracts all helped it gain market share.

A huge part of the success was also the fact that in this market segment, brand did not matter as much as availability and affordability. So even when the FMCG giants took notice of the success through small packaging for tier 2 brands, Chic managed itself through aggressive promotions. Not just one time sale- it was about repeat purchasing to a level where actions become habits. Exchange 5 empty sachets for one free; this was like a boon for the buyers in respect for their loyalty. Also, since they were predominantly selling to women in southern India, roping in Arvind  Swamy for an ad was like a master stroke.

By 1993, Chic was not just No 1 in Southern India but also ruling the Pan-Indian rural markets. The company underwent changes right from its name; from Chic India Pvt Ltd to Beauty Cosmetics and finally settling in on Cavin  Kare in the late 90s. The company is now based out of Mumbai and has diversified into other personal products like hair oils, hair dyes along with a professional care range of them. But the company has also ventured into other verticals like pickles (Ruchi and Chinni), and most shockingly (for me at least) packaged farsan snacks (Garden) and dairy products (Cavin). I will confess, I have seen Ruchi pickles and Garden snacks in supermarkets but never knew that who owned them- Garden being an acquisition thanks to their established popularity in Mumbai.

Never the less, while I think of Garden snacks I feel the packaged snacks category cannot undermine the contribution of a certain Virani family (not from Saans bhi kabhi bahu thee fame J) which brought a radical change.

Chips and farsan have long existed in every part of India traditionally. The typical source for it was either homemade or bought from a reputed Surti  Farsan mart. There was nothing called branded farsan or chips until some like Simba or Uncle Chips tried some moves. But the landscape transformed around 1991 when PepsiCo (then Leher-Pepsi) got in Cheetos and Lays. But I believe even they realised that it was easy to enter the market with Indian taste rather than impose US palette.

But while farsan, sev-bhujia got picked up, a part neglected was the variety of nuts and pulses that formed a big part of the Indian choice. Rise up time for Balaji Wafers. The roots cannot be further modest as suppliers of namkeens and wafers to Aston Cinema in Rajkot. As demand grew, the family got into their own production. Growing from the city limits to the state, the company has a formidable distribution presence in western India- its boasts of availability at every few 100 meters. I don’t think they are off the reality. While competition is stiff in the chips category; Balaji has been monumental in the packed nuts and pulses coming back in vogue.

Balaji Wafers is an empire standing on quality product at affordable pricing. A  26 gms pack of Lays costs Rs 10, with Balaji, its 45 gms at Rs 10. At its defined price band, Balaji is something that a pan-vendor, cold drink house or even a wine shop is ready to stock. The biggest reason for the openness of this distribution channel is their customers are usually interlinked. A cheap and wholesome pack of farsan or chips goes over a smoke, a soft drink and definitely munches along with some beer.

Advertising- no; availability- yes; affordability- yes.  Lays builds the aspirations, Balaji fulfils it for the masses. Lays rides on the brand and value sales; Balaji fuels its growth on smaller margins but the volumes given by the pyramid bottom.

A small dipstick I did just gave me an insight that people now at times also ask for Balaji out of choice rather than chance. Reason: it is cheaper, tastier and more appealing to the palette than a pack of Lays or Bingo. As for availability in small towns; wafers was a term that got no response- but yes for Lays and was handed over a pack of Balaji. The first thought in my mind, wow- I wonder what the biggies from the Biz-schools are thinking at PepsiCo or ITC. 

The two above cases are just few of many where the rabbit has taken down the lions; but goes miles to say that it is not about the big budgets as much as business acumen that transforms into success.