You can view excerpts from this interview in our video link

C. K. Ranganathan, Chairman and managing Director, CavinKare Private Limited is a succesful entrepreneur and a venture philanthropist. Established with an initial investment of Rs 15,000 in the 1980s, CavinKare is now a Rs 500 crore business. Ranganathan has set an ambitious sales target of Rs 5,000 crore by 2012. Chennaionline's H Ramakrishnan met Ranganathan:

H Ramakrishnan: Can you trace your early life?

C K Ranganathan: I was born in a family of six siblings. My father was a teacher-turned businessman. My grandfather was in the Army. My great grandfather was a Government servant working in the Postal Department – a Postman. My maternal grandfather was a lawyer. His father was a District Education Officer for five Districts. In those days, the Districts were very large.

My father was a brilliant Maths Teacher. However, he had an urge to start something on his own. He first ventured into repacked pharmaceutical business and later into personal care products like shampoo. I was a playful, mischievous boy. I still remember, My mother would tie me up to a pillar or a piece of furniture. I was so naughty. In studies, I was not brilliant. I was an average student. When I was in the English medium, my teachers told my parents that I could not cope with what is being taught and that I should be put in Tamil Medium. So, I pursued my studies in Tamil Medium, while my brothers and sisters were in English medium. That gave me a kind of inferiority complex. They could all speak in English. I grew up with that complex.

I was interested in pets, birds like pigeons and fish. We lived in a big ten acre campus which had coconut, mango and palm trees as also paddy fields and groundnut plants. Fishing was my hobby.

The switchover from School to College gave me a shock. Everything was in English. I didn't give up. I couldn't clear all papers in the first attempt.

FAMILY BUSINESS.

After completing my degree, I came into our family business. By then my father had innovated shampoo sachets. He was a creator, an innovator. He believed that whatever a rich man enjoyed, the common man also should afford. He was all along wanting to do something different. He used to say that your product has to be different if you want people to buy it. He was ashamed to introduce a product which is already in the market. I imbibed the same philosophy, namely, if you don't differentiate, you perish. That was the message my father gave me.

When I started off, I tried to market a product that was already available. I struggled and when I was about to reach the dead-end, I decided to change course. From then on, it has been easy.

Rama: How and why did you decide to part company with your brothers?

CKR: Normally in a Hindu undivided family, hierarchy is respected in family matters as well as in business. I am a different kind of person. While I do respect hierarchy, in matters of business, I would spell out in clear and unambiguous terms what I want. They didn't want any discussion on the strategy, but wanted me just to toe the line, as, according to them, the elders are always right.

When I came out and started on my own, I had just 15,000 Rupees with me. That was the amount I had saved from my salary.

Rama: What are your mission and vision?

CKR: Naturally, I would like to build a global organisation that would live beyond me through several generations to come. The Kartha has the responsibility to decide what kind of a capability the organisation has. I will discharge that responsibility. My responsibility is to hand over the mantle to the one who, I think will continue to follow the same corporate culture. Then, it is for them to further pursue it.

'I CAN'

Secondly I would like to be known for creativity and for injecting and spreading the 'I can' spirit. Whether it is a differently abled person or some one who has a novel idea, but not having the resources to implement it, if can inspire and encourage them, I think I have done my duty. I have proved that with a humble background it is possible to come up in life. I want to create similar people and kindle their desire. That is my vision and mission.

Rama: How did you manage the tough competition from the multinationals?

CKR: There are two aspects. I always admire people who struggle for life and succeed. The fisherman is an instance at hand. They would venture into the sea, without knowing if they would return. Those who go for a regular office work, are in a relatively safe environment. For the fishermen, risking their life is something natural to them.

The second is the agriculturist. He would not know if the crop will yield or not. If all variables are favourable, he may get a good crop. He will go on borrowing and for settling those debts, he will borrow again. This is what happened to my family as well. I have seen our land being sold to settle loans and for our survival.

UNCERTAINTY

Business has also a similar element of uncertainty. But, once you start playing it well, you understand the dynamics. You will then be able to manage much more comfortably than , say an agriculturist or a fisherman. Having come from an agricultural background, I was comfortable dealing with uncertainties and in taking risks. In all these, the most important aspect is the mindset. The ability to take a risk, the ability to take a step forward. It is very difficult for many. If something negative is going to happpen, let me face it. That comes very naturally to me. I am therefore not afraid of competitions. If you are afraid, you can only admire. Of course there is nothing wrong in it. At the same time you should develop a feeling that 'I can.'

Once I am committed to a particular level of goal and achievement, lot of transformation happened to me personally. If have to succeed in business in an ethical way, there are certain non-negotiable elements. If it is English or if it is Business, I was determined to learn. That continues to this day. When I start reading a management book or a business-related book, even while I am on the second or third page, my mind starts wondering how I could apply the precept or principle to my business. As you allow your thought process to travel in that direction, you will not be able to read the remaining pages. But I have benefited a lot by doing so. There was a time in my life when I would not read any book at all. But, once I committed myself to this business, I made it a point to read several books.

Rama: When you started CavinKare can I say, you saw opportunities that others did not see?

CKR: Others also saw the opportunities. Me and my team did it differently. We executed the differentiation very well. However brilliant you are, if you don't execute, you fail. Nowadays, ideas are a commodity. You can't say only successful people will have bright ideas. Not at all. A common man can come up with a brilliant idea. I have no hesitation in learning from even a petty shop owner. He has a brilliant idea. Why not? But, in this century, the world belongs to the executor, who is able to pick up good ideas and execute them well. It doesn't matter if it is your own idea or if it is someone else's idea.

Rama: Your father Mr. ChinniKrishnan used to say that he wants to make a product that is affordable even to a rickshaw puller. Have you been able to follow this in letter and spirit?

CKR: Very much so. I am able to cut across segments with different products. But my heart always worries about what I can offer to the common man, the one below poverty line at an affordable cost.

Rama: Do you think this Company can continue to follow the same philosophy?

CKR: I strongly feel so. That is because we are not going to vacate that seat. In fact we will continue to be the leader in this segment. This does not mean that we cannot produce products for those travellng in a Benz. We have a strong marketing team. We have also an excellent research facility in Ikkattuthangal, near Chennai. Sixty scientists are involved in this huge set-up, engaged in advanced research. They help us to come up with new products at regular intervals. These patents would be very valuable as we go forward. Thus, we are laying a firm foundation.

Rama: Can you say what were the initial hurdles in Chik shampoo, when you started off?

CKR: Initially, we differentiated just for the sake of differentiating. When a brand was available at seventy paise for 7ml., we said we will give 10ml at ninety paise. It failed. There was no movement on the shelf. One of the stockists advised me that I should also sell 7ml at seventy paise- better toe the line that the market wants. Or, I should resort to advertisement, which I could not afford at that time. So I had no other go. I did it. But we couldn't sustain. After all what is the differentiation we are offering? So we came out with an innovative idea of empty sachets redemption scheme. Any body who returns five empty sachets of any brand of shampoo would get one sachet free. We gave the retailers good incentive. They encouraged their customers, especially the school children to collect empty sachets. This worked. Since they felt that they were getting free sachets, they thought they should support us by giving fresh orders. As we started gaining in volume, we insisted that only empty Chik shampoo sachets will fetch Chik shampoo. Side by side, our advertisement volume also increased. Instead of advertising the product, we resorted to incentives to the customer to turn to our side. After that even when we stopped the scheme, the product continued to move fast.

Rama: When you ventured into this it was a raw market. I think you had to produce a two-minute film to educate the people on how to use the shampoo, because there were instances of a few people simply swallowing the contents of the sachet, taking it to be jelly. In retrospect, do you think, you took a risk in introducing a product which was not even known to the people?

CKR: Well, I don't think so. We knew we were taking the right path. After all, at that time we were an amateur. You make errors when you are an amateur. I was going into a hitherto unchartered area. I was creating my own path. I fell down, no doubt. But I got up easily.

Rama: How did you develop this tenacity?

CKR: It is a part of a personality. I don't quit. I don't give up.

Rama: You are now forty seven. Have you ever regretted having entered this segment, instead of say, the software sector or so.

CKR: That is a different kind of segment. The magnitude of money and the earning could have been different. The path that you choose will determine your altitude. But, here I am extremely happy, because we are involved in creating a new habit.

Rama: What in your opinion are the reasons for your success?

CKR: Firstly, team effort. Collective, collaborative effort in decision making. When I decide on the space that I give to others, I put myself in their shoes. Even if they make some genuine mistake and you lose money, I would not make it an issue. If you are averse to that kind of losing money, then you would not encourage experimentation. If everything has to happen under your nose, every activity in the organisation will depend on one individual. Fortunately, I have come out of that situation.

Rama: Why is it that excepting Greenie, you are not doing anything for menfolk?

CKR: No. That is not fully correct. As a product exclusively for men, yes. But, if you take Fairness cream, for example, 52per cent of the users are men. Even with regard to shampoos, it is fifty-fifty. None of our products is exclusive. Majority of our products are used by men as well. True, ninety per cent of shopping is done by women. Until your economy level grows, even a soap is shared in the Indian situation.

Rama: In retrospect, what was the defining moment of your life?

CKR: My father's demise was one. My leaving our family business and starting one on my own was another.

How did you develop interest in helping the disabled, for which you won the Rotary Award recently?

CKR: At the outset, let me tell you that none of my family members is disabled. What I want to say is that it is not necessary that someone near you should suffer, for you to think of those affected. When you see someone who wants to come up, you assist him. I believe in teaching someone how to fish rather than giving him or her some fish. When I met Jayashri Raveendran, we started discussing. Our wavelength matched very well. The Ability Foundation was born. I am very happy to have a very good like-minded person like Jayashri, without whom this would not have been possible. Now we work with other NGOs as well. I believe every corporate entity should give back to society what it gets from it. Whatever I have earned, it is from our society. I can repay in any form. I felt here is a segment where we can contribute substantially and I have derived immense satisfaction out of this.

Rama: Finally, do you have a dream?

CKR: Sure. I want to make this an Indian multinational. We are already working on this. Secondly, we should be remembered as an organisation which has played a meaningful, significant role in the upliftment of those below the poverty line. We are working with a few NGOs towards this end.

Rama: Thank you for your time

CKR: Thank you.

You can view excerpts from this interview in our video link