27_07_2015_nestle
1
As Nestle’s recall of Maggi noodles across the country winds to a close, the task of rebuilding the brand, regaining trust and reintroducing the product will fall to Suresh Narayanan. He’s taking over as head of Nestle India, having been reassigned from his job as managing director of the Philippines unit. Narayanan, 55, cut his teeth at Hindustan Unilever in the company of peers such as Nitin Paranjpe (president, home care business, Unilever), Mukul Deoras (global chief marketing officer, Colgate Palmoive) and D Shivakumar (chairman and CEO of PepsiCo India). His boss Wan Ling Martello, executive vice president at Nestlé SA and one of the company’s directors, is in Delhi to oversee the transition in India. In a joint interview to Ratna Bhushan and Chaitali Chakravarty, the Nestle executives said the worst was behind them and the company is keen to bring one of India’s most-loved brands back on the shelves. Edited excerpts: You are known as a turnaround specialist. But this is a crisis of a different kind. What’s the strength you have that gives you the confidence of pulling Nestle back from the brink? Narayanan: Nestle India is not “on the brink” and I want to say this with all the emphasis I can muster. Yes, we face a challenging situation, but I am confident that we will resolve this issue through engagement with all stakeholders. I am a people’s person and business is all about relationships — with the people who buy and sell our products, with our business partners, our employees and of course the authorities. I will focus on ensuring that all those relationships are as strong and professional as they can be. Is this the start of a new culture in Nestle? Will we get to see the CEO more? Narayanan: Yes. You will. It’s been argued that Nestle allowed the Maggi incident to snowball into a controversy by not reacting on time. It took the company 10 days or so to issue its first statement. Do you think you should have been more proactive? Wan Ling Martello: Just like a sports game, there’s always going to be, in hindsight, could we have done this better? How do you learn? You learn by five things. You learnt by going to school, reading, listening, observing and by self reflection. This unfortunate incident has happened to us. And guess what? We are going to learn individually and collectively reflect on what happened. I was not here. The local team was working with the centre. We were also getting test results. I don’t want to dwell on what could have gone well. We should have probably gone on TV and be seen eating a bowl of Maggi noodles. I mean, look, I heard a lot of that comment. And you’re right. Perception becomes reality. Do you think media handled it properly? There was a bit of a trial by media as well. Had this crisis not happened, would Suresh Narayanan been here? Narayanan: Well, it’s a bit like this. We are part of the international talent pool of Nestle. I think in the wisdom of things, depending on the development of the market and depending on what stage we are in, you get called upon to take on assignments. I think Wan Ling is better suited to answer that question. She is my boss and she’s the one who takes the call. In 1998, Nestle let go of its Indian MD Darius Ardeshir for financial mismanagement and replaced him with an expat to clean up the books. Now Nestle is replacing an expat CEO with an Indian to clean up another mess. Isn’t that ironic? Martello: The average tenure for somebody retiring from Nestle is 10 years. And it isn’t going down. One of the incredible strengths of Nestle as a group is the commitment and loyalty. Nestle is a global company. I came in from outside. I am Chinese American, I am a woman. I am surrounded by colleagues who are male. But from day one, I have never felt an outsider. Suresh is Indian. But he was in Singapore, Egypt, Philippines. He has capabilities. The last bit was the icing on the cake — that Suresh happens to be Indian. As we look at appointments, it very much depends on at what stage and lifecycle the business is. We also look at what’s good for the individual. We say here is a high-potential, high-performing individual. What does he or she need? He or she needs an emerging-market experience. We look at it from both ends — what the business needs and what’s good for the individual. We try to marry that together. We have not had an Indian MD (in India) but we have so many Indians in senior management positions (globally). At the centre, we have 80 different nationalities. We don’t pick people depending on nationalities... I know Suresh’s track record. He has the ability to inspire a team and nurture talent. But in this particular case, nationality of the CEO would be important because you need to engage with various stakeholders, isn’t it? Martello: Of course, at this stage having somebody who understands the local landscape helps, though I must say that in my meetings (with stakeholders in India) I never for a moment felt that just because I was not Indian they did not engage with me. Even other managers from the centre have been well received by local stakeholders. As the recall process comes to a close, we are looking at rebuilding. It is very much about how we can take Nestle India to the next phase of our journey. Suresh, for me, is perfect for the job. When I scanned the world for different talents who could do this, it was Suresh’s capabilities that I thought about. First and foremost he is very much a people’s person. Our Nestle India colleagues have been through a lot. It has been a Herculean task from what the teams have been doing. I was here for seven days and I saw up close and personal. They worked tirelessly, the weekends, the nights. It’s just incredible. Narayanan: I joined Nestle India in 1999 as head of sales. In 2003, I was sent to Indochina. I was called back to India to fix issues in sales channels across the region. It was an enhanced assignment. Nestle keeps giving you varying degrees of stretch seeing your capability. That worked out well for me. Every assignment was stretching me that much more to see whether I was capable of taking it. After that I went to Singapore as the MD for about two and a half years. That was again during the downturn and the business grew. Thereafter, I went to Egypt, which was quite a time. That was in September 2010, just before the revolution started. That was a humbling experience because a team that was not particularly known for any great performance actually blossomed. It showed in four years some of the best growth we have had. We also invested in Egypt what we didn’t invest in 10 years. As Wan Ling said, I enjoy working with people and teams. We are not talking machines here nor are we talking about impersonal brands. We are talking about people. I am really energised when I think we have 7,000 people and more than half a million others who are associated with us in some form or other. Deep down in my gut, the words that come to me are, ‘we shall overcome’. I want to tell Maggi consumers — trust me, trust my brand. It is safe. To all employees, colleagues and associates who have been on the cause of Nestle for years, I want to pass on a single message that we can build back brick-by-brick and together. And to all the associates, partners, distributors and suppliers, I just want to say — you can trust me. You were saying there are varying degrees of stretch. Is this your biggest challenge? Narayanan: Every assignment has had a different challenge. Some assignments had the challenge of building teams while some had the challenge of building strategy. The four-and-a-half years I spent in Egypt, Libya and Sudan were the most challenging. Paul Bulcke (Nestle SA’s global CEO) visited me and asked, what are you looking at? He laughed and said, what else? You couldn’t have asked for a more potent combination of things that were happening. Each of the assignments have had a facet that has been energising and stimulated me to give my best. What’s the first message you will give employees when you formally take over as CEO? Narayanan: I will tell them let’s get our self-confidence back. We will work as a team. I don’t have a magical wand. It will be consistent, systematic hard work. We will step up engagement with government. I am not confrontational. For us quality is trust. What’s the tangible and intangible hit that the company has taken on Maggi. An article in ET estimated it at about . `12,000 crore. Narayanan: We are in the silent period so we cannot comment on this. We have already provided the broad cost estimates to the stock exchange and will announce the financial results for this quarter on July 29. Do you think India’s image in the world outside as a safe destination for investment has taken a hit? Does it in any way jeopardise Prime Minister Narendra Modi’s Make in India project? Martello: I don’t want to speak on behalf of others. We’ve been in India 102 years. We’ve always been part of the solution versus part of the problem. We have half a million people we touch indirectly. The unfortunate thing about this whole episode is how thousands of people are impacted. People might say, oh, this is another multinational taking a hit. No, I’m sorry — we’ve got people. We buy over 90% of our ingredients locally. Q & A SURESH NARAYANAN CEO, NESTLE INDIA We’ve been trying to engage with the government to try to get this issue resolved... the government and industry can come together for the good of the Indian consumer WAN LING MARTELLO EXECUTIVE VICE PRESIDENT, NESTLÉ SA ON MAGGI Our product is safe and we stand by that. Reams and reams of tests show that which is now public. We’ve got proof points. We’ve got black and white data ON R&D We will not stop innovating. We have built an R&D centre here in 2012 precisely to bring innovation to the Indian market. We look at innova- tions differently. ‘Confident of Resolving Maggi Crisis’ For full interview, log on to www.economictimes.com FOR urgent Sale 4000+ 1500 Sq Ft Well Furnished Office Space in Industrial Estate, Highway Touch, Dahisar Toll Plaza, Ideal for IT, Call Center, Also can be used for Light Industry. Call Nitin 9821161388 SERVICE SOLUTIONS ACADEMIC MARKETING & SALES 16 THE ECONOMIC TIMES | MUMBAI | MONDAY | 27 JULY 2015 Economy FOR Corporate Funding & Loans against Shares Contact: [email protected] or www.jemfiscal.com 4 BHK 2200 sqft, garden 2100 sqft, 2 covered car park, Koregaon Park Pune. Ex - 3.3 Cr. Owner - 9370167222 / 9960752277. DAMAN. Available two factories on long lease / sale. (1) Plot area 624 sq.mtrs. Ground + 1 floor. Useable area 7000 sq.fts. power-100 KW. (2) Plot area: 1250 sq.mtrs., ground+2 floors. Useable area 18000 sq.fts Power 130 KW.Contact: 09821415059 NORTH INDIA WEST INDIA LIAISON & REPRESENTATION BUSINESS PROPOSALS FINANCE BUSINESS PROPOSALS FINANCE INTERNET AND WEB SHARES & STAKES LOANS ANTI-VIRUS SOFTWARE BHOPAL PUNE SOUTH MUMBAI FOR SALE ACCOMMODATION AVAILABLE COMMERCIAL PREMISES FACTORY GODOWNS FACTORY WORKSHOP & SITES INDUSTRIAL PREMISES PROPERTY - OTHERS ACADEMIC ADVERTISING MARKETING & SALES ENGINEERS MULTIPLE VACANCIES SITUATIONS VACANT TECHNICAL PUBLIC NOTICE
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Transcript of 27_07_2015_nestle
As Nestle’s recall of Maggi noodles across the
country winds to a close, the task of
rebuilding the brand, regaining trust and
reintroducing the product will fall to SureshNarayanan. He’s taking over as head of Nestle
India, having been reassigned from his job as
managing director of the Philippines unit.
Narayanan, 55, cut his teeth at Hindustan
Unilever in the company of peers such as
Nitin Paranjpe (president, home care
business, Unilever), Mukul Deoras (global
chief marketing officer, Colgate Palmoive)
and D Shivakumar (chairman and CEO of
PepsiCo India). His boss Wan Ling Martello,
executive vice president at Nestlé SA and one
of the company’s directors, is in Delhi to
oversee the transition in India. In a joint
interview to Ratna Bhushan and ChaitaliChakravarty, the Nestle executives said the
worst was behind them and the company is
keen to bring one of India’s most-loved
brands back on the shelves. Edited excerpts:
You are known as a turnaround specialist.
But this is a crisis of a different kind.
What’s the strength you have that gives
you the confidence of pulling Nestle back
from the brink?
Narayanan:Nestle India is not “on the brink”
and I want to say this with all the emphasis I
can muster. Yes, we face a challenging
situation, but I am confident that we will
resolve this issue through engagement with all
stakeholders. I am a people’s person and
business is all about relationships — with the
people who buy and sell our products, with our
business partners, our employees and of
course the authorities. I will focus on ensuring
that all those relationships are as strong and
professional as they can be.
Is this the start of a new culture in Nestle?
Will we get to see the CEO more?
Narayanan: Yes. You will.
It’s been argued that Nestle allowed the
Maggi incident to snowball into a
controversy by not reacting on time. It
took the company 10 days or so to issue its
first statement. Do you think you should
have been more proactive?
Wan Ling Martello: Just like a sports game,
there’s always going to be, in hindsight, could
we have done this better? How do you learn?
You learn by five things. You learnt by going
to school, reading, listening, observing and by
self reflection. This unfortunate incident has
happened to us. And guess what? We are
going to learn individually and collectively
reflect on what happened.
I was not here. The local team was working
with the centre. We were also getting test
results. I don’t want to dwell on what could
have gone well. We should have probably
gone on TV and be seen eating a bowl of Maggi
noodles. I mean, look, I heard a lot of that
comment. And you’re right. Perception
becomes reality. Do you think media handled
it properly? There was a bit of a trial by media
as well.
Had this crisis not happened, would
Suresh Narayanan been here?
Narayanan:Well, it’s a bit like this. We are
part of the international talent pool of Nestle. I
think in the wisdom of things, depending on
the development of the market and
depending on what stage we are in, you get
called upon to take on assignments. I think
Wan Ling is better suited to answer that
question. She is my boss and she’s the one
who takes the call.
In 1998, Nestle let go of its Indian MD
Darius Ardeshir for financial
mismanagement and replaced him with an
expat to clean up the books. Now Nestle is
replacing an expat CEO with an Indian to
clean up another mess. Isn’t that ironic?
Martello: The average tenure for somebody
retiring from Nestle is 10 years. And it isn’t
going down. One of the incredible strengths
of Nestle as a group is the commitment and
loyalty. Nestle is a global company. I came in
from outside. I am Chinese American, I am a
woman. I am surrounded by colleagues who
are male. But from day one, I have never felt
an outsider.
Suresh is Indian. But he was in Singapore,
Egypt, Philippines. He has capabilities. The
last bit was the icing on the cake — that Suresh
happens to be Indian. As we look at
appointments, it very much depends on at
what stage and lifecycle the business is. We
also look at what’s good for the individual. We
say here is a high-potential, high-performing
individual. What does he or she need? He or
she needs an emerging-market experience.
We look at it from both ends — what the
business needs and what’s good for the
individual. We try to marry that together. We
have not had an Indian MD (in India) but we
have so many Indians in senior management
positions (globally). At the centre, we have 80
different nationalities. We don’t pick people
depending on nationalities... I know Suresh’s
track record. He has the ability to inspire a
team and nurture talent.
But in this particular case, nationality of the
CEO would be important because you need
to engage with various stakeholders, isn’t it?
Martello: Of course, at this stage having
somebody who understands the local
landscape helps, though I must say that in my
meetings (with stakeholders in India) I never
for a moment felt that just because I was not
Indian they did not engage with me. Even
other managers from the centre have been
well received by local stakeholders.
As the recall process comes to a close, we are
looking at rebuilding. It is very much about
how we can take Nestle India to the next
phase of our journey. Suresh, for me, is
perfect for the job. When I scanned the world
for different talents who could do this, it was
Suresh’s capabilities that I thought about.
First and foremost he is very much a people’s
person. Our Nestle India colleagues have
been through a lot. It has been a Herculean
task from what the teams have been doing. I
was here for seven days and I saw up close
and personal. They worked tirelessly, the
weekends, the nights. It’s just incredible.
Narayanan: I joined Nestle India in 1999 as
head of sales. In 2003, I was sent to Indochina.
I was called back to India to fix issues in sales
channels across the region. It was an
enhanced assignment. Nestle keeps giving
you varying degrees of stretch seeing your
capability. That worked out well for me. Every
assignment was stretching me that much
more to see whether I was capable of taking it.
After that I went to Singapore as the MD for
about two and a half years. That was again
during the downturn and the business grew.
Thereafter, I went to Egypt, which was quite
a time. That was in September 2010, just
before the revolution started. That was a
humbling experience because a team that
was not particularly known for any great
performance actually blossomed. It showed
in four years some of the best growth we
have had. We also invested in Egypt what we
didn’t invest in 10 years. As Wan Ling said, I
enjoy working with people and teams. We are
not talking machines here nor are we talking
about impersonal brands. We are talking
about people. I am really energised when I
think we have 7,000 people and more than
half a million others who are associated with
us in some form or other. Deep down in my
gut, the words that come to me are, ‘we shall
overcome’. I want to tell Maggi consumers —
trust me, trust my brand. It is safe. To all
employees, colleagues and associates who
have been on the cause of Nestle for years, I
want to pass on a single message that we can
build back brick-by-brick and together. And
to all the associates, partners, distributors
and suppliers, I just want to say — you can
trust me.
You were saying there are varying
degrees of stretch. Is this your biggest
challenge?
Narayanan: Every assignment has had a
different challenge. Some assignments had
the challenge of building teams while some
had the challenge of building strategy. The
four-and-a-half years I spent in Egypt, Libya
and Sudan were the most challenging. Paul
Bulcke (Nestle SA’s global CEO) visited me and
asked, what are you looking at? He laughed
and said, what else? You couldn’t have asked
for a more potent combination of things that
were happening. Each of the assignments
have had a facet that has been energising and
stimulated me to give my best.
What’s the first message you will give
employees when you formally take over
as CEO?
Narayanan: I will tell them let’s get our
self-confidence back. We will work as a team. I
don’t have a magical wand. It will be consistent,
systematic hard work. We will step up
engagement with government. I am not
confrontational. For us quality is trust.
What’s the tangible and intangible hit that
the company has taken on Maggi. An
article in ET estimated it at about .̀ 12,000
crore.
Narayanan: We are in the silent period so we
cannot comment on this. We have already
provided the broad cost estimates to the
stock exchange and will announce the
financial results for this quarter on July 29.
Do you think India’s image in the world
outside as a safe destination for
investment has taken a hit? Does it in any
way jeopardise Prime Minister Narendra
Modi’s Make in India project?
Martello: I don’t want to speak on behalf of
others. We’ve been in India 102 years. We’ve
always been part of the solution versus part
of the problem. We have half a million people
we touch indirectly. The unfortunate thing
about this whole episode is how thousands of
people are impacted. People might say, oh,
this is another multinational taking a hit. No,
I’m sorry — we’ve got people. We buy over
90% of our ingredients locally.
Q&A SURESH NARAYANANCEO, NESTLE INDIA
We’ve been trying to engage with the government to try to get this issue resolved... thegovernment and industry can come together for the good of the Indian consumer
WAN LING MARTELLOEXECUTIVE VICE PRESIDENT, NESTLÉ SA
ON MAGGI
Our product is safe and westand by that. Reams andreams of tests show thatwhich is now public. We’vegot proof points. We’ve gotblack and white data
ON R&D
We will not stop innovating.We have built an R&D centrehere in 2012 precisely tobring innovation to the Indianmarket. We look at innova-tions differently.
‘Confident of Resolving Maggi Crisis’
For full interview, log on to www.economictimes.com
FOR urgent Sale 4000+ 1500Sq Ft Well Furnished OfficeSpace in Industrial Estate,Highway Touch, Dahisar TollPlaza, Ideal for IT, CallCenter, Also can be used forLight Industry. Call Nitin9821161388
SERVICE SOLUTIONS
ACADEMIC
MARKETING & SALES
16�THE ECONOMIC TIMES | MUMBAI | MONDAY | 27 JULY 2015Economy
FOR Corporate Funding & Loans against Shares Contact: [email protected] www.jemfiscal.com
4 BHK 2200 sqft, garden 2100 sqft, 2 covered car park, Koregaon Park Pune. Ex - 3.3 Cr. Owner - 9370167222/ 9960752277.
DAMAN. Available twofactories on long lease / sale.(1) Plot area 624 sq.mtrs.Ground + 1 floor. Useable area7000 sq.fts. power-100 KW. (2) Plot area: 1250 sq.mtrs.,ground+2 floors. Useablearea 18000 sq.fts Power 130KW.Contact: 09821415059
NORTH INDIA
WEST INDIA
LIAISON & REPRESENTATION
BUSINESS PROPOSALS
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BUSINESS PROPOSALS
FINANCE
INTERNET AND WEB
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SOFTWARE
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PUNE
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