Weekend Special: Harsh Mariwala Playbook To Create More Entrepreneurs, Make India Innovation Capital
In its quest to become a USD five trillion economy and then a high-income country, entrepreneurs and a national culture of innovation will play a key role. Marico founder and chairman, Harsh Mariwala, who swears by a culture of innovation, is convinced that entrepreneurs can be created -- and there are not necessarily only born entrepreneurs. He is encouraged by a growing number of entrepreneurs coming from Tier II and Tier III centres, and also from non-business families.
In India’s rapidly-growing startup ecosystem, 49 per cent of startups come from tier II and tier III centres, according to government data from August 2022. On the innovation index, too, India has moved up the ladder and was at the 40th spot in Global Innovation Index 2022.
“I found innovation as a way to succeed. I tried this early in my working life. Launches like Parachute and Saffola Masala oats were driven by a philosophy of innovation,” Mariwala tells BW Businessworld.
Having taken his first steps in the world of business in 1971, Mariwala founded Marico in 1990. In the fourth quarter of FY23, Marico posted a growth of 18.67 per cent.
In 2014, Mariwala let professionals run the company, where his family and he own 59 per cent stake. He spends his time guiding the management with his “mind on, hands off” approach, as he also steers the Marico Innovation Foundation and initiatives in the field of mental health and well-being.
“When you decide to become an entrepreneur, there are bound to be setbacks. It’s perfectly ok to fail. Failures lead to learnings. As an entrepreneur, you should aspire to, and you should be able to do something that no one has done before. So, grit is very important. Then, an education and a lifelong curiosity to learn is equally important. No one can afford to think that ‘they have arrived’ and put a stop to the process of learning,” says Mariwala, by way of his advice to young entrepreneurs and startup founders.
“One cannot stop reading, for instance. One learns everywhere – in the market place, from customers, from the Internet and so on,” he says. Mariwala therefore counts “humility” as an important trait in successful entrepreneurs. With disruptions due to technology, AI, pandemics, and geo-political situations, one must always be on the lookout for opportunities, and always be mindful of global trends that may impact India, too. “Whether it’s organics or natural cosmetics, one should be able to spot the right opportunity. One should always build a business according to their strengths,” Mariwala tells BW Businessworld. “There must not be any shortcuts. Compliances are important,” he adds.
He lists other characteristics that should define new-age entrepreneurs. “One must have the ability to graduate from doing things oneself to getting things done by teams. Plus, negotiations, are important, and skilled negotiators create win-win propositions for all,” he says. He also says that risk-taking is crucial.
Mariwala is upbeat about the Indian economy. “India is in a sweet spot. Fiscal deficit and inflation are under control. The China factor has helped India. The government has undertaken a series of reforms. But there was also a pause. We need to pursue reforms in the areas of land, labour, ease of doing business, and also judicial reforms”.
Mariwala has a vision for Marico. He wants the company to be respected by all stakeholders and not just shareholders. On a personal note, Mariwala, who has had an illustrious life as an entrepreneur, leader and innovator, would like to be remembered on how he impacted and touched lives, in his corporate world and outside. After his book, along with co-author, Ram Charan, “Harsh Realities: The Making of Marico” a couple of years ago, Mariwala now plans a series of thought leadership op-eds.
