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THE HOUSE MAGAZINE OF GODREJ & BOYCE MFG. CO. LTD., VOL 9, NO. 6, NOV - DEC 2010

IXth Anniversary Issue

SELLINGTHE PERSONAL FORCE

CHANGE > SELLING

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Building a ‘FORCE’By KAMAL NANDI, Vice President - Sales & Marketing, Godrej Appliances

Sales Professionals are one of the greatest business assets. These talented and tenacious individuals advance

the frontline of a business to consumers. Their work is vital for realising and maintaining higher and greater

successes.

Sales force effectiveness is one of the most important drivers of company’s success, but keeping Sales Organisation

at the top of its game is a constant challenge. What is critical to Brand’s success is how the Sales Force is led and

how well you galvanise their power to win market share. It is easier said than done, most breakthrough strategies

fall at execution level, and the reason most cited – Sales Force could not deliver! Well, in most of these cases, the

problem is not the Sales Force, but the management of SALES and the FORCE by itself.

In Appliances, we have gone through many highs & lows fighting innumerable battles in the market place, some lost,

many won. From a single category to a complete durable player, from selling a category to selling a Brand – our Sales

Force has fought back to glory. A large number of Sales Executives, In-shop Demonstrators and Shop Managers

build this Force, and it is extremely challenging to unite them under a common objective.

Sales Management in Godrej Appliances focuses on five core areas to align thinking & behaviour of its Sales Force.

A large number of Sales Executives, In-shop Demonstrators, and Shop Managers build this Force, and it is extremely challenging to unite them under a common objective.

Shared Vision & Mission

A clear vision and succinct mission are the key elements

of high performing teams. They inspire and motivate

individuals to bring their best to the organisation by

providing the picture of future success, the operating

focus for the present and the guideposts for how the

organisation will work together for success. This exercise

helps us in building alignment and commitment through

the development of a clear and compelled vision and

mission that guides priorities and results. Leadership

reaching out to teams across the country with detailed

discussion on Brand’s Vision & Mission helps in reaching

a shared goal. Once a year activity carried out right at

the beginning of the financial year helps in getting team

involvement and ownership for Brand’s Vision & Mission.

It is necessary that the entire Sales Organisation shares

a common Vision & Mission.

Dynamic Strategy Ownership

A process requirement for strategic ownership should

be dynamic in nature to enable organisation to develop

strategy at the point where the most appropriate

knowledge exists. Every salesperson explores

opportunities in the market place to fulfill the shared

Vision. This is then translated into a strategy document

prepared by executives under the guidance of leadership

team which becomes the guiding document for the

year; we call it the Annual Business Plan (ABP).

Sales Processes

Well thought out sales processes include seller and

buyer risk management, standardised customer

interaction in sales, and scalable revenue generation.

Hence, robust sales processes find outmost importance

in Sales Management. Starting with Market Mapping to

Network Planning, to Dealer/Distributor appointment,

determining creditworthiness, to Order Booking, Debtor

Management, all is guided through robust processes.

On the Dealer-Customer interface, from floor visibility,

to floor share, to product demonstration through ISD,

to secondary tracking, again are all guided by robust

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To perform at a consistently higher level than others is the mark of a true professional, the real power of the Force.

processes. The dos & don’ts are clear the idea is to

reduce waste and improve productivity. Host of

analytical tools are implemented to review effectiveness

of each process- if found lagging competitively, they are

improved or replaced with an efficient one.

The journey of creating records to enter the ‘Hall of Fame’ has helped New Categories to establish themselves in the marketplace at a rapid pace.

Learning & knowledge sharing

Effectively sharing knowledge is the key to learning and

building a culture of creating and managing knowledge.

Various forums are organised for effective sharing of

knowledge. This initiative is managed by a team of Trade

Marketing Managers who ensure that right knowledge

is imparted to make frontline interface with customers

most impactful. Some of the forums are Dealer- Retailer

Meets, ISD meets, Conferences, etc.

Recognition & Motivation

Motivation inspires performance from capable sales

personnel. Motivation is necessary to retain and sustain

performance, without motivation sales personnel will

lose interest and relinquish loyalty over time. Critical

elements to motivate a successful and high performance

sales force are appreciation and recognition.

Platforms are created to recognise daily, monthly,

yearly performance and achievements amongst Sales

Individuals and Teams. The best platform created in

Appliances is the ‘Hall of Fame’, which recognises

teams which have raised their performance bar over

others to create a record. All such recognitions are

celebrated in the presence of the Leadership Team.

This has motivated teams to outperform Brand’s

current share and create a new performance level for

themselves. The Branch Team which enters the ‘Hall

of Fame’ also finds its place in the ‘Hall of Fame Wall’,

which is prominently displayed at H.O.

This journey of creating records to enter the ‘Hall

of Fame’ has helped New Categories to establish

themselves in the marketplace at a rapid pace. Apart

from these there are magazines which are published

and circulated which recognise individuals and teams

for their outstanding performance. The contributions

of sales personnel will be worthy of demonstrating

appreciation, even when personal attainment has not

achieved the necessary levels for recognition.

To perform at a consistently higher level than others is

the mark of a true professional, the real power of the

Force - our Sales Force—and I would like to end with

three cheers for these BRAVE HEARTS.

CHANGE > SELLING

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Importance of a Clear Policy Framework for SalesBy PUSHKAR GOKHALE, Godrej Security Solutions

When it comes to “SALES” as a function, the top of mind word which comes up spontaneously

is “TARGETS”. There is no doubt that ‘Targets’ are an extremely important element, as it gives the team a clear vision for their business. It is, the best way of setting specific, measurable objectives for the team. The Annual Targets can be further split into “Quarterly” or even “Monthly” targets depending on the frequency of evaluation.

There is yet another pillar which is equally critical and that is the existence of a clear policy framework for the team. This aspect gathers extreme importance when one has a sizeable team of a few hundred members, spread across wide geographies and engaged in selling wide range of products through multiple channels. It is a challenge then as to how the evaluation of performance needs to be done, to the authority levels on offering discounts or even the amount of ‘Sales Turnover’ credit shared by various team members. This can even give rise to friction between the members of the team and could be extremely harmful to the team spirit.

A clearly laid down, fair and smartly designed policy can actually bring in a sense of discipline as it acts as a guideline.

This is where the role of Head Office as an ‘Enabler’ becomes vital in terms of framing a mediating structure which can address these underlined issues:

Sales Incentives•Sales Credit Sharing (Sharing the sales turnover, •when multiple branches are involved in securing

and /or executing the Sales Order) Authorisation matrix which can clearly bring out the •discount or trade margin sanctioning limits for the team members at various levels

Sales Incentive Scheme (SIS)

The SIS Policy framework can be a highly effective tool to drive the behaviours of the team towards achieving the desired objectives of the business. Take the case of the SIS policy of Godrej Security Solutions.

Achieving Top-line is one of the core objectives and one can have rewards linked to the achievement of the Desired Sales (DS), but this is just not enough as the need is to demonstrate an all-round divisional performance, possible only if the team performs on a number of parameters and not just one.

The aspects like the amount of outstanding or overdue payments against the orders executed, or the amount of finished goods which are lying in the branch warehouses are some facets which cannot be neglected. These are key factors determining the efficiency with which the division manages the working capital and one needs to bring in the sharp and necessary focus. This is where we have to inject stimulants to push the team to achieve the desired results on these parameters as well. These stimulants got to be balanced with suitable deterrents (penalties) which amount to reduction in the payouts for not achieving these set goals on the elements of working capital.

What about controlling the Discounts?

Is there a way to ensure that the team does not end up bagging orders at higher discounts? Yes, the policy of SSD does address this aspect by linking rewards or deterrents depending on the level of discounts granted to the customers. High discounts lead to deterrents which work adversely on the incentive payouts of the sales team. Similarly, low discounts call for rewarding the team members. What this does is, it drives a culture of ‘Selling on Value’ and not just on ‘Price’.

But how does one go about correctly capturing the discount levels on so many transactions?

In order to capture the amount of discounts and the realised price, SSD has implemented a very effective web-based authorisation system which captures discounts offered on each-n-every order & this data can be easily retrieved through the system to assist us, not just in working out the payouts for the team, but gives us a detailed MIS helping us to effectively control the discounts. This dashboard helps us to analyse the discount trends prevailing in the market for a specific

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customer or a particular branch for selected time frames and this data can be extremely useful to work out competitive strategies or tactics in the market.

Credit Share for the Sales Turnover

One of the major strength lies in our network of branches spread across India and this gives us an edge over the competition. Envisage a situation where a key nationally present customer of ours like ICICI or HDFC Bank releases orders on us centrally, for supplies and installation at their multiple locations pan India. Obviously we are well placed to take up such orders, where the order is accepted by one of our branches and two or more of our other branch teams are involved in the supply plus installation of these orders. The challenge in such cases is to maintain the same level of motivation of all the branches involved.

There is a reason why am saying this- On thinking deeper one will realise that if the order securing branch were to get all the credit of the sales turnover for such orders, the motivation level of all the branches who are party to supply / installation would be much lower than that of the order securing branch. However supply, installation and after-sales backup are equally important and one wants that the branch teams do it with the same enthusiasm as that of the order securing branch. We cannot lose sight of this critical aspect.

So how does one address this concern?

The business unit has put in place a Credit Share Policy which lays down the credit sharing mechanism for multi-location orders where multiple branches are involved and there is a very systematic Online Credit Share System, where the branch teams can login and share the credit of the sales turnover based on the clear guidelines mentioned in the Credit Share Policy.

The above policy framework ensures that there is no conflict amongst the branch teams and every branch whether it is an order securing branch or an order executing branch is aligned to one objective which is —customer satisfaction.

Implementation of policies

One needs to have systematically, articulated policies in place, as these can drive formation of a work culture provided these are implemented meticulously. The All India Sales Head, the Regional Managers and Branch Managers are the key members who ensure that the policy guidelines are followed and the right culture is inculcated, so that the policies become a way of life.

A clearly laid down,

fair and smartly designed policy can actually bring in a sense of discipline

as it acts as a guideline.

CHANGE > SELLING

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Godrej Locks is the undisputed leader in the Indian locks retail market, setting benchmarks in

not only products and locking technologies, but also in the retail market operations. Competitors always imitate what we do in the marketplace.

In retail operations, the front-line sales executives are our mainstay- the Faujis on the front. Our sales executives are responsible for sales through our three-tiered selling system consisting of:

Primary sales - sales made by the company to distributors

Secondary sales - sales made by distributors to retailers

Tertiary sales - sales done by retailers to the end-consumers

Changing Role of our Faujis on the FrontBy AJOY KUMAR, Godrej Locks

Our sales executives are responsible for sales through our three-tiered selling system.

Front end Salesman

Distributor

Retailer

End Consumer

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Our sales executives will no longer push stocks but would focus on creating a pull for sales throughout the distribution system.

Retailing on the basis of ‘what is sold is replenished’ was introduced under a strategic initiative undertaken for improving the business performance. This initiative called for a massive change in the key areas of focus in retail operations- changing the mindset of people, establishing robust processes & systems and putting in place a revamped measurement and reward system.

The overhaul of the retailing system also called for a shift in the paradigm; from pushing stocks on distributors to optimising on inventory turns and higher service levels. This meant that our sales executives will no longer push stocks but would focus on creating a pull for sales throughout the distribution system.

The task of having more inventory turns at the distributor, higher service levels and creating a strong pull for our locks necessitated a completely new set of role and responsibility for Godrej salespeople.

Daily retailing as per predetermined plan•

Develop, train, motivate, a• nd monitor performance of distributor

Promote ri• ght product mix and improve merchandising at each retail outlet

Build strong r• elationship with retail shop owners and their salespeople

The aim was to create a Win-Win-Win situation for the company, the distributor and the retailer.

A new MIS was established which gives the sales executive the required information on daily basis. Also a structured and scientific way of market coverage plan was developed and put in place. At the end of each day, actual retail sales are compared to the plan and corrective action is initiated as required.

The performance of the sales executive is now measured on the basis of what is sold to the retailers- the secondary sales. It is measured weekly and the distributors are incentivised accordingly.

Today, our salespeople have moved from being stock pushers to marketing executives. And now, they have a much larger role in making sales happen. Our aim is to make our field people interact only with the end consumer- making an impact where it counts the most.

Taking our Faujis to the final front.

Retailing on the basis of “what is sold is replenished” was introduced under a strategic initiative.

CHANGE > SELLING

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The sale begins when the quotation is thrown out of the window!

This is a real-life story. It happened to Mr. Hormuzd N. Patell in 1961 just after he joined Godrej & Boyce for selling our Steel Windows.

By Hormuzd N. Patell, Godrej Appliances

July 1962

I had joined G&B as a salesman less than a year back. I was assigned the job of selling Steel Windows manufactured by us at our Lalbaug plant. Our sales office was located at Waudby Road where today Glass and Aluminium Godrej Bhawan stands opposite Bombay Gymkhana.

In those days, fresh salesmen were trained by the senior salesmen by taking them along when they made field calls. On a day when it was raining heavily, my senior colleague Mr. Minoo F. Tarapore asked me to accompany him to the office of Mr. Haribhai Desai, a builder whose office was on the 4th floor in a building at Walkeshwar.

All drenched in water we climbed up to the 4th floor, breathing heavily and entered Haribhai’s cabin. After the usual pleasantries Minoo Tarapore asked me to hand over the quotation for Steel Windows to Haribhai. The quotation was bulky. After a cursory glance at it, he turned the pages and went to the last page where the total prize of the offer was mentioned. As I recall, it was around Rs.12 Lakhs. One look at the total figure and something happened to him. He shut the quotation folder and just flung it out of the window behind him.

Both of us were shocked. I ran towards the window just to catch the glimpse of my quotation flying through the rains and winds and about to fall in the puddles of water below. Feeling deeply hurt and not sure what to say, I returned to my seat.

After the usual pleasantries Minoo Tarapore asked me to hand over the quotation for Steel Windows.

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Here is a test of your selling skills. This is open for all G&B Salespeople. Please tell us in about 100 words or so what Minoo Tarapore would have conveyed to Haribhai which must have caused the change of mind resulting in an order for us.

Send your response to change@godrej.com. The best response as judged by Mr. Hormuzd N. Patell will be awarded an attractive prize.

Minoo looked at me, held my arm and gestured me to keep quiet and sit down. Minoo regained his composure and looked straight into the eyes of Haribhai as if nothing had happened and politely said, “Arrey Sahab you have thrown our quotation out of the window but on this rainy day having come all this far will you not offer us even a cup of tea?”

Haribhai ordered the tea and we started sipping it without uttering a word. “Nice cup of tea”, Minoo Tarapore broke the ice. “Our tea is always good, fresh tea masala my wife makes it”, replied Haribhai.

Once the ice was broken Minoo Tarapore took charge of the conversation and God knows what he said. After ten minutes Haribhai asked Tarapore “Do you have another copy of the quotation?” Luckily we had one more copy of it which we gave it to him. He went straight to the last page, circled the price, wrote ‘Accepted’ and signed it.

We got the order.

I ran towards the window just to catch the glimpse of my quotation flying through the rains.

CHANGE > SELLING

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Solution Selling at Godrej Material HandlingBy NEVILLE PATEL, Godrej Material Handling

Solution Selling is akin to making forays into unchartered waters. A gradual step by step

approach would ensure a successful outcome as against a disaster if the business plunges

head-on without assessing the risk and developing a set of new capabilities.

To meet the challenges posed by the business

environment, the customers are forever looking

for greater efficiencies in the operations. In the area

of Material Handling, customers are looking towards

acquiring a complete solution to their Material Handling

problems. This is as against the earlier practice of

acquiring stand-alone equipment- operating and

maintaining it. This shift in approach gives rise to a new

complexity at the manufacturers’ end.

Here is an account of how GMH rose to the challenge

and created a significant business opportunity.

About a decade back, the customers, especially those

located far away from the larger cities started demanding

solutions for Material Handling problem which involved

more than just the supply of an equipment. They wanted

Comprehensive Maintenance Services (CMS) wherein

they would totally outsource the maintenance of their

forklift trucks.

Thus, it can be said that offering of CMS became

the phase I of the GMH’s journey of becoming a total

solution seller in the Material Handling space.

The Comprehensive Maintenance Contract (CMC)

is inclusive of manpower and spares and has clearly

defined scope of work which is normally fixed for a

period of one year. This contract is a commitment to

carry out all the maintenance tasks which fall under the

scope of work at predetermined rates. This indeed is

the first challenge of the CMC business. This kind of

commitment carries with itself quite a large financial risk;

if the estimate of cost is too high the business faces

the risk of losing the contract. On the other hand, if the

estimate is too low it runs the risk of incurring a loss.

As a CMC is executed under varying conditions and

locations, it is extremely difficult to estimate the costs

with reasonable accuracy. The GMH team had to

depend on the accumulated experience and constant

reviews of actual costs against the estimated to improve

the accuracy. This amounted to developing of a new

capability namely estimation of costs in the field which

took many years to refine.

They wanted Comprehensive Maintenance Services (CMS) wherein they would totally outsource the maintenance.

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The GMH team had to depend on the accumulated experience and constant reviews of actual costs against the estimated to improve the accuracy.

The experience taught the GMH team that offering new solutions can yield business much larger than envisaged.

The second challenge in any CMC is to assure customer

satisfaction in terms of the quality of services offered.

This requires skilled manpower at site which is well

trained and effectively supervised. Having this kind of a

man-power at remote locations is not an easy task. So

many locals/vested interests come into play and create

difficult situations.

GMH’s capability for executing a CMC profitably was put

to test when our contract from a newspaper major was

accepted at a competitive rate in 2003. This contract

involved maintaining a fleet of 40 Forklift trucks and their

attachments at multiple locations across the country.

GMH executed the first contract successfully. As a

result, this contract is renewed ever since at profitable

rates which is a testimony to GMH having acquired a

set of new capabilities.

Consequently, the marketing team realised the power

of CMC as a selling tool. Today, about 8% of GMH’s

field population is covered by CMCs and the plans are

afoot to double it to 16% in the coming 3 years.

Phase II of GMH’s journey towards offering total

Material Handling solutions called for giving equipment

on hire/rental basis. In such case, the customer only

specifies his Material Handling needs and GMH offers

a comprehensive solution package which may include

Forklift of different types, the required attachments plus

the operating and maintenance services including the

staff. All the services rendered are invoiced monthly to

customers at an agreed rate for the duration for which

the services were utilised.

Offering of total Material Handling solution such as this

has many challenges:

Acquiring an in-depth knowledge of operating •

environment at customers’ end

Designing a package of equ• ipment and services to

be provided

Keeping the pac• kage in available mood 24x7 so that

the customers’ operations do not suffer because of

non-availability

Having skilled and capable operating and • maintenance

manpower at customers’ end

GMH successfully overcame these challenges and

developed the capability in stages for offering Material

Handling hiring solutions over 3-4 years. The capability

was fully tested in late 2004 when a hiring services

contract was entered into. This involved 24 numbers

Fork-Lift Truck along with the requisite operating and

maintenance staff. As this customer was located in a

politically sensitive area nearly 1000 kms from Mumbai,

it was quite challenging to deliver on the contract.

The team at GMH rose to the occasion, internalised

and learnt lessons from the difficulties surmounted to

develop a package which has been found so valuable

that the customer has been renewing it now for several

years. The execution was so good that Team GMH has

managed to earn a modest bonus every month.

Some of the key learnings are:

Understanding the requirements of the customer •

deeply is extremely important to design and operate

a services package

Monitoring act• ual versus planned costs is vital for

coping with the financial risks

Selecting, • developing and managing a team of our

people and partners is crucial for the successful

execution of the contract

Going forward GMH needs to develop several modules

of services which when combined in a particular

combination can give a customised solution to meet

the unique requirements.The experience has taught the

GMH team that offering new solutions without developing

new capabilities is a sure prescription for business

disaster, however, developing new capabilities upfront

can yield business much larger than envisaged.

CHANGE > SELLING

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Selling Today- Creating Value for CustomersBy NARESH TAHILIANI, Godrej Interio

Selling in today’s world has acquired a whole new meaning. It simply amounts to creating value for

customers.

The value addition could be in the form of helping customers discover real needs, overcome the challenges experienced and offering solutions that would make the lives easier, better, healthier, safer…in essence Brighter!

To create greater value for customers and sell our products profitably, we at Godrej Interio have adopted a new approach for selling ergonomically designed Office Chairs.

People are working longer hours than ever before which essentially means remaining glued to their workspaces longer. This highly sedentary life leads to pain and discomfort in the muscles/joints of the back, neck, shoulders and wrists giving rise to a disease known as Musculo Skeletal Disorder or in short MSD.

The value addition could be in the form of helping customers discover real needs, overcome the challenges experienced and offering solutions.

Keeping this in view, the guiding principle for Interio Seating Development team was reframed as below:

“Right Chair + Right Posture = Healthy Seating”

To communicate what is healthy seating, our team developed an innovative way to make the user experience what it is. Ergometer- a tool was developed to record the measurements of a user as relevant to a chair and also Ergocheck- a software which maps the user’s measurements against the

Right Chair + Right Posture = Healthy Seating

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Ergocheck report recommends the height and the distance at which Computer Monitor, Reference Documents, Key Board etc should be placed so that they are positioned appropriately for the user’s comfort and help eliminate back pain, shoulder pain…thereby, enhancing wellness.

relevant models of chairs from the Interio range. This process takes five minutes or so. Then Ergocheck shortlists the chairs that fits best to the user and the nature of his work. The user is then encouraged to select a chair that best fits his preference in terms of looks, design, finish and budget.

Ergocheck report recommends the height and the distance at which Computer Monitor, Reference Documents, Key Board etc. should be placed so that they are positioned appropriately for the user’s comfort and help eliminate back pain, shoulder pain… thereby, enhancing wellness.

Interio customers can take advantage of Ergometer service at any of the 35 Interio showrooms across the country. Regular advertorials are placed in mass media along with its presence at various exhibitions to increase awareness about the availability of this service.

The next step in the enhancement of ‘Wellness at Work’ is to help our customers adopt the correct work posture.

Usually at the time of installation, the users are given instructions on how to use the chair correctly for optimum comfort. However, all the Dos and Don’ts add up to a long list which is difficult to remember. So that the users remember these instructions sharply, they were converted to “smaller bytes”. Eye-catching graphics were used to get the message across effectively.

To get the desired attention, it was decided to leverage the most user-friendly technology — e-mail. Each e-mail message is designed to highlight one key problem and its solution. The message is delivered by the Seating Expert, Dr. Sitright ... and the graphics used helps drive the point home. To create user’s interest these messages are titled as ‘Wellness Tips’ and are sent out to all the customers every Wednesday.

For 40 weeks at a stretch these tips have been sent out and have reached over 1 Lakh customers. Many customers share these messages with their relatives, friends and associates.

This initiative has helped us create greater awareness amongst our users about the importance of ‘Right Posture’ at work.

The proof that these value adding approaches are effective is in the fact that today, our sales outlets are experiencing a conversion rate which is up by nearly 50% as compared to what it was earlier. A large number of our customers are telling us that they are highly satisfied with Godrej chairs they have bought and the work-space re-arrangements they have made in response to our wellness service.

Ergonomic Seating, today has become a combination of Science & Art…with the sole aim of making the lives of our customers BRIGHTER.

CHANGE > SELLING

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The PMO approach to generating additional sales from the selected segments

As the demand for AV Solutions

declined from the private

sector in 2008-09, it was essential

for us to generate additional

sales from those segments of

the market which were hitherto

not affected by the slowdown or

which were underexploited; such

as the Government/PSUs and

Defence. From these segments of

the market, the share of business

obtained by Godrej AV Solutions

was a small fraction of the total.

It was also realised that the

incremental net operating surplus

(NOS) generated would impact the

bottom-line positively.

The rigorous PMO methodology* can be applied effectively for getting

remarkable results from difficult to do business sectors- Government PSUs/

Defence. Here is an example:

It was essential for us to generate additional sales from those segments of the market which were hitherto not affected by the slowdown or which were underexploited; such as the Government/PSUs and Defence.

G. Sankaran, SponsorPrateek Gohliya, Crack Team Leader

Shashi Bhushan, SalesPrashant Tiwari, Sales

Abhishek Bhaskar, MarketingManjit Singh, Marketing

Team

Left to Right: Manjit Singh,

G. Sankaran, Prateek Gohliya and Abhishek Bhaskar

Compiled by BYRON PUXTY, Godrej Prima

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Project Objective To establish processes and take actions to generate

an additional sales revenue of Rs. 200 Lakhs for AV

Solutions in 2009-2010. This meant that the AV line

business should be Rs. 700 Lakhs in the year under

review as against Rs. 500 Lakhs in the previous year.

Incremental sales would yield additional Net Operating

Surplus of Rs. 20 Lakhs. This was to be achieved

without incurring any further manpower costs.

Key actions

7 branches were short-listed for launching the sales •

campaign

Key account• s were identified and allocated to sales

executives in each branch

Major sa• les opportunity were identified from each of

the key account and for each one of them a sales

strategy was devised

Decision • makers for each of the sales opportunity

were identified and were contacted individually to

understand the dynamics of the sales situation

Sales pr• omotion campaign was conducted using

mass e-mails and Electronic Direct Mailers (EDM)

Channel p• artners specialising in government office

supplies were identified & appointed promptly

Participated• in DGS&D tender process for video

conferencing equipment and the possibility of

entering into Rate Contracts was explored

Strategic • alliances with Siemens and Honeywell, the

leaders in the field were explored for having an edge

in the Government tenders

A procedur• e for progress review was put in place for

monitoring it weekly and monthly

Challenges

Monitoring of the progress of each offer submitted. •

The purpose of the review was to give the required

help as soon as possible and to initiate the required

action early-on

Forbearance is the name of the game for getting business from the Government sector.

Learning the nitty-gritties of participating in the •

process of participation in the E-tendering process

Entering into• a Rate Contract with DGS&D

Identifying • appropriate channel partners

Incremental sales to be achieved without incurring any further manpower costs.

Key learning

The Government and the Public Sector has a •

large potential for business even in the times of

slowdowns

To get G• overnment business in the time of slowdown

it was essential to stay connected to the sector in

the times of good overall business

Forbearan• ce is the name of the game for getting

business from the Government sector; as it

always takes longer than expected, harder than

anticipated…and more resources and effort than

budgeted for

Benefits

As a result,

Sales revenue rose to Rs. 690 Lakhs in a period of •

nine months i.e. July 2009-March 2010

Net op• erating surplus rose to Rs. 61 Lakhs as

against Rs. 20 Lakhs planned

Morale• of the team improved substantially on

experiencing the success in times of a slowdown

Next Steps

To develop an in-depth short and medium term •

plans for exploiting the business potential of the

Government sector across the country

To streng• then the review mechanism for quick

identification of problems and bottlenecks and

initiating corrective actions

* To know more about the PMO Methodology, please refer to

Sept-Oct 2010 issue of CHANGE.

CHANGE > SELLING

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What do Customers want from a B2B Salesman?

Edited Excerpts from the book ‘Achieving Sales Excellence’ by Howard Stevens and T. Kiny — VIVA 2009

This question has been researched for decades. The recent most studies

throw up 7 factors that B2B customers are looking for in salesmen serving

them. These 7 factors are rules of behaviours for a salesman and they also

define the role a salesperson is supposed to play.

You must be personally accountable for our desired results. The best salespeople who usually are given the largest portion

of the business take personal responsibility for the customers’ results. Of

course these salespeople do not do all the work but they do act as the

single point contact for the customers and ensure that the customers buy

the best solution and get the value that was expected. These sales people

are customer’s ambassadors in the company and are responsible for each

and every aspect of the buyer and seller relationship.

You must understand our business. This rule plays logically

from the first; in order to personally manage a customer’s account, salespeople

must understand the customer’s business. It means understanding how

the customer’s business works- its competencies, strategies and culture. It

also means understanding the customer’s customer. It means seeing the

customer’s business as its CEO views it.

You must be on our side. The customers seldom have full

knowledge of what happens to their order within the seller’s organisation.

The seller’s internal processes such as design, manufacturing and logistics

can have a great impact on the results the customers are likely to get.

To have an assurance that the results delivered will be as expected, the

customers expect salespeople to be their representatives/ambassador

within the seller’s organisation; expect the salesperson to work through their

21

organisation to deliver the required results. The salespeople act as the voice

of the customers to keep their company apprised of the customer’s needs

and desires and also act as advocates and expeditors representing the best

interest of the customer through the engagement.

You must bring us solutions. Customers want sales people to

think beyond features and benefits, to solutions. They want to know how to

use products and services to achieve their own goals. They want to be sure

how the solutions they buy would work properly in their unique situations.

They expect salespeople to act as consultants helping them capture higher

value through good solutions.

You must be easily accessible. Customers may have multiple

locations across the country. They want salespeople to be available 24 x 7

across the country. The best liked salespeople are constant travellers who

leap across geographical boundaries to help customers solve their problem

and relieve them of the stressful situations- especially in case of capital

goods.

You must solve our problems. In yesterday’s sales world,

securing of an order marked the end of the sales engagement and the

sales person’s accountability. Today, getting an order marks the end of the

beginning. Customers expect salespeople to not only solve their problem

before the order is finalised but throughout the full term of the business

relationship i.e. much after the order is successfully executed. Good

salespeople act as troubleshooters for a long period of time instead of

hiding or running away from solving the problems. Such salespeople believe

that only this kind of practice will let them have an edge in winning the next

big sales opportunity.

You must be innovative in responding to our problem because change is the only constant. Customers expect the sales people to respond proactively and with

continuous innovation to their expressed/unexpressed needs. To meet this

demand, the good salespeople adopt the role of the innovator. They act as

leads for spotting and exploiting new business opportunities.

These rules — what the customers want — and the roles the salespeople

are expected to play, together form a comprehensive definition of the best

practice in B2B selling. Also, they are the surest route to get the customers

to buy the products/services again and again.

The salespeople act as the voice of the customers to keep their company apprised of the customers needs and desires.

CHANGE > SELLING

22

Selling - A rewarding career choice

Students and parents (even more) worry over career choices all the time, through various stages of their academic journey e.g. class

X, XII, graduation and so on. Some select a path quite early and others take time to decide. Many stick to their choice resolutely, while for others the quest continues...

Here, let me put forth a case for a career in Sales…

No organisation (across industries) can work without sales professionals. The task of taking the organisation’s offerings to its customers rests solely on its Sales force. Sales professionals often specialise in a particular channel say, B2B or B2C. Hence, a plethora of opportunities are available for career advancement across industries and channels, enough to last many lifetimes!

Proximity to the market and customers makes the salesperson experience the ever-changing customer needs and preferences. This latent knowledge, among other competencies, is crucial to steer the organisation into the future. Having said so, a career in Sales can prove to be a stepping stone to the corner office in an organsation. It is common to see professionals with a strong foundation in selling going on to become CEOs.

The thrill and challenge of a Sales role keeps boredom away. Every day brings in new challenges, new acquaintances and higher peaks to scale. A salesperson truly lives in the present. A career in Sales teaches valuable lessons of perseverance, empathy and builds tenacity of character -valuable for one’s personal life as well.

In a company’s context, research has shown that employees with clear objectives and with a sense of direct contribution to the company’s progress have a high degree of contentment and self-worth. A career in Sales therefore, can be quite a satisfying experience.

Finally, in a society obsessed by the seeming correlation of intelligence, examination results and one’s ability to carve out a successful career, a vocation in Sales offers a welcome breather for many. So, if you have a child who is physically robust, street-smart, loves to interact with people, speaks well, is good at maintaining relationships, creative, enthusiastic, self-confident, persistent, honest and reliable, let him set sail for a career in Sales!

By GAURAV CHOPRA, Godrej Appliances

In a society obsessed by the seeming correlation of intelligence, examination results and one’s ability to carve out a successful career, a vocation in Sales offers a welcome breather.

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Top 1 Sales MistakesEvery salesperson, regardless of the industry, product, or skill level, makes mistakes. Here are some basic sales mistakes to avoid and some tips for selling more and having happier customers.

NOT LISTENING Do not just listen to what the customer is asking for; look past that to find out what they

need. Too often salespeople sing praises of a product without hearing what the customer wants. You cannot

sell to someone if you do not know what they want. Listen to your customers, identify the need, and fulfill it.

OVERSELLING A non-stop sales pitch leaves your potential customer with no room to make an intelligent

decision. There is a fine line between being a good salesperson and being pushy or obnoxious. Know when

to stop selling.

BEING UNPREPARED Whether you are making a sale in a showroom, a board room, or over the

phone, you need to know the details about what you are selling and be able to answer all pertinent questions.

Be prepared. If you are prospecting for new business, know what you are going to say and be ready for

questions you may be asked.

JUMPING STRAIGHT TO THE SALE In any type of sales business, you need to establish a

relationship. Even on the web you need to have landing pages to provide information about your products or

services before jumping to the shopping cart. Do not rush to make the sale. Take your time to educate your

customers, and they will reward you with sales.

NOT CLOSING THE SALE This is the flipside of the previous mistake. Once you have provided your

customer with the information he or she needs, ask if the customer is ready to make a purchase. It may

seem unnecessary, but sometimes asking for the sale can be the nudge your customer needs to make a final

decision.

GOING OFF TOPIC Some salespeople overdo the need for a “relationship” with excessive chatter.

Others continue to talk about the product or service but spend an inordinate amount of time on irrelevant

information. While you do want to build a relationship and make your customer comfortable, the goal is to

make the sale. If the sale is the topic, don’t veer too far off on tangents.

NOT RESEARCHING YOUR CUSTOMER If you are trying to sell to a specific client at a meeting,

you need to know what he or she is all about. Do some research before the sales meeting and get a good

idea of the prospect’s likes, dislikes, interests, and manner of doing business. The same holds true for

consumers. Get to know who makes up your target audience.

APPEARANCES COULD BE DECEPTIVE Salespeople routinely miss sales because they prejudge

their customers. Do not let race, creed, gender, ethnicity, or appearance stand in the way of making a sale.

NOT FOLLOWING UP ON LEADS Just because someone does not buy immediately does not mean

he or she will not be interested later, particularly if he or she requested information. Follow-up is a critical

aspect of sales that is often neglected.

FAILING TO PROSPECT FOR NEW CUSTOMERS Even when sales are at their peak, you need

to devote time to looking for more customers. No company can survive without a constant influx of new

customers, so no business can afford not to prospect from them.

CHANGE > SELLING

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How to make Sales Training really work?

In today’s fast changing world with fierce international competition, highly educated & sophisticated

buyers, and rapid changes in the marketplace, the professional training of salespeople has become a vital ingredient for success.

Training salespeople has multiple objectives- to develop salespeople to their highest possible level of professionalism, increase sales, increase productivity, reduce turnover, develop better customer relations, decrease selling costs and improve the morale.

During the last decade, sales training has been given great importance. However, how much of the training inputs are applied in the field to achieve the multiple objectives still remain unanswered. To make sales training programmes work and ensure a better return on investment, here are a few guidelines:

Commitment from the top management- Unless 1. this commitment trickles down below, we cannot expect any desired changes.

Sales training is not a2. one shot deal- Although perceived so, the development of salespeople is an on going process. Skills deteriorate, people forget and go through periods of decline, products and markets change, but a continual sales training is essential to keep the skills sharp.

Three stages of sales training are pre-training, at-training and post-training. Let’s take a quick look at each one of them.

By K. T. GEORGE, George Associates

Pre-training stage (Preparation)

Before a sales training is structured, the trainer — internal and external — must study the total profile of the trainees such as their product knowledge, understanding level, language proficiency, experience, previous trainings attended, etc. In addition, knowledge on company products, competition, customer profile, major objections from customers would also help the trainer. Field working by the trainer, with a few sales personnel, on a sample basis, will be of great help to structure the training module appropriately.

In addition to the trainer, the organisation must inform the trainees about clear objectives of the training programme, how they should come prepared, including what all things they must carry (e.g. sales kit is a must for role plays sessions).

The venue arrangements such as the audio visual aids in proper working conditions, seating, refreshments, lunch etc. must be taken care of.

A person who is knowledgeable and well experienced should be appointed as a resource person to be present throughout the training period. This is more important in the case of an external trainer.

At-training stage (Execution)

This is the execution level of the above stage. Here the success depends greatly on the trainer and the training methodology. An effective trainer must use a blend of various methodologies such as group dynamics, cases, situation analysis, presentations and role plays.

Professional training of sales people has become a vital ingredient for success.

The objective of Sales Training is to develop salespeople to their highest possible level of professionalism, increase sales, increase productivity, develop better customer relations and improve the morale.

25

Role plays with live videos can act as a powerful tool to make the trainees realise the areas of improvements. The success of this exercise depends on how the feedback is given to the trainee by the trainer as otherwise it may have an adverse effect. For the role play sessions to be relevant and beneficial, situations must be prepared in advance and given to the participants. The role of the customer in the role play should be played by someone experienced rather than giving it to the participants who may not be able to play the role objectively.

A pre and post level written tests may be considered to understand the level of learning.

Post-training stage (Follow-up)

This unfortunately is the most neglected aspect of training programmes in many organisations. The organisers take a lot of interest and show great

Post-training stage ensures that the trainees don’t get back to the same old routine after the training is over.

enthusiasm till the training gets over. And within a few days’ time, the trainees get back to the same old routine.

To prevent this and to get the maximum retention as well as implementation, the following steps are recommended:

To start with, make an analysis of various training 1. programmes conducted in the past and short-list the main reasons why there is no desired improvement. Areas like, lack of motivation of individuals, resistance to change, irrelevance of the training, immediate bosses, various pressures, etc. will emerge.

Chart out a training calendar and stick to it.2.

Make the first-line ma3. nagers mainly accountable for the implementation. If convenient, make them attend the same selling skill programme as team leaders. They can then make a joint action plan.

Monitoring of impleme4. ntation in the field. Once, this is decided, it would be easy to create a format with various parameters for evaluation by the field managers, including the Regional/ Branch Managers who can act as mentors.

Since the traini5. ng is based on skill development, it would be essential to have regular role play sessions to observe the improvements. For example, how well the trainee is able to ask questions to probe, listen, communicate, overcome objections, convert product features to quantifiable customer benefits etc.

Have a review on 6. a quarterly basis. Reward the people with maximum improvements.

Give special coac7. hing for those who need more improvements.

Continue with the train8. ing programmes with appropriate modifications.

In conclusion, I would like to mention the famous quote by ‘Tom Peters’:

“When times are good,Double Your training budget,When times are bad,Quadruple Your training budget”

Worth practicing it!

CHANGE > SELLING

26

When we decided on Selling as our next theme for CHANGE, the first thing Mr. Indrapal Singh

told me was to read ‘The Truth about Selling’ by Samuel S. Susser and watch ‘Rocket Singh’. The book proved to be a great read and the movie brought into light insights that were worth penning down to explain a simple point made by the movie-makers, that selling is simply ‘a people’s business’. It’s not Rocket Science.

Some salesmen close a deal and some salesmen don’t. Why is that so? We urge you to watch the movie to get this answer. For people who have watched it, maybe you will relate with some of the thoughts I have jotted down here.

Rocket Singh - Salesman of the Year was released in 2009. It is a story of Harpreet Singh Bedi (Ranbir Kapoor) a below average student, who never believed in his academic achievements. Non-existent as they were. He thought he was street-smart to get through life though. But roadblock - he had deep-rooted values. He chose to be a ‘Salesman’ not based on his academic failure but because he believed he had the skills for it. Harpreet has limited means and talent but he has the basic clarity in terms of selling being the right career option for him.

He manages to become a salesman with a mid-size corporate computer assembly and service company, AYS. His idealistic vision of sales as a field and selling as a skill shatters quickly when he goofs up in an early deal and he is restricted from going on field.

Soon, he realises that his honesty, ideologies and his belief in sales as a profession are not in sync with the so-called professionals of today.

Caught in a dishonest world with crooked and wicked colleagues ridiculing him at every juncture gets the better out of him and he conceptualises a way of getting back at his boss. He starts his own secret sales and service agency called Rocket Sales Corporation while continuing to work in his existing company. Other disgruntled employees find their way to Rocket Sales — a place where even the chaiwallah is an equal partner because he brings talent to the table. The company soon starts getting clients because of the sheer honesty and customer empathy with which Rocket Sales works. When the big boss of AYS finds out about Rocket Sales he fires Harpreet after thoroughly insulting him. He makes Harpreet sign a contract handing over Rocket Sales to AYS.

By SANA ANJUM, Corporate Communication

Rocket Singh was never selling a product or a service but he was out there helping his customers perform better.

What the main lead was doing was value-based selling which gives us a great insight in terms of not over-promising to our customers or under-selling the product/services.

Selling is not Rocket Sc ence

27

However, AYS is unable to maintain Rocket Sales’ commitment to customer satisfaction and the business suffers a huge loss. The big boss realising his downfall in purchasing Rocket Sales without the people who made Rocket Sales what it was, decides to pay a visit to Harpreet.

He returns the contract to Harpreet accepting his mistake of making a competitor out of a person who he should have made the ‘Salesman of the Year’. This is the point in the movie, when Harpreet actually retorts back at the boss saying, “I had no clue about this business, but while I was at it, I realised business is not any scheme, wickedness or magic, there is just one thing—People. People who work with you, people who are your customers. But, beyond your numbers and targets you could never see these people. And I never understood numbers from my school days, sir. All I saw was people, understanding who was happy or sad, who liked which work and enjoyed doing it…you know the magic of this business, when people are happy, the numbers automatically increase…because business is not about numbers. Business is all about people.”

The movie highlights the importance of good values and suggests that there is no substitute for good values. What the main lead was doing was value-based selling which gives us a great insight in terms of not over-promising to our customers or under-selling the product/services.

A line from the film goes, “Risk toh Spiderman ko bhi lena padta hai, main toh phir bhi Salesman hoon” (Even Spiderman has to take risk, I am just a Salesman). The makers of this movie chose a very different topic and have taken as much risk to sell a not-so-regular story to the audiences.

Rocket Singh was never selling a product or a service but he was out there helping his customers perform better. This simple act helped him become an ace-salesman.

A must watch for all salespeople!Risk toh Spiderman ko bhi lena padta hai, main toh phir bhi Salesman hoon...

CHANGE > SELLING

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Selling through History

At Godrej, great importance was attached to the Sales Force and the Sales & Service network even in the pre-independence era. Let’s

revisit the past…

Right from inception, both Ardeshir and Pirojsha attached an equal importance to selling. Besides direct sales, Godrej also started participating in industrial exhibitions as early as 1902 and demonstrations and fire tests were regularly conducted to promote sales. In Mumbai, sales were carried out through two showrooms at Kalbadevi and Fort. To cover all India sales, branches were set up all over India. In the year 1926, Kolkata branch — which was the first branch outside Mumbai — was opened. Later, branches at Delhi (1930), Madras (1931), Hyderabad and Kanpur (1939) came into existence. 1939 onwards, for 27 years no new branches were opened.

During Pirojsha’s time, much emphasis was laid on nurturing this network of branches. For tapping the unexplored market, wholesale dealers were appointed across the country. In the year 1936, Pirojsha appointed Sanat Kumar as the dealer of all Godrej products in Rajkot. The SRS Bros in Madurai, B. N. Rama and Co. in Allahabad, N. P. Vyas and Co., Asansol were the earliest dealers appointed prior to independence. The network of dealers continued to grow in the years that followed. The dealers were accorded much respect and were treated as partners for the company’s growth. The close relationship that ensued was significantly responsible for Godrej’s growth and success ever since.

Godrej owes its success to yet another force- its Sales Force. The Godrej salespeople- through their constant interactions with customers- created a favourable market for Godrej products. Here it will be interesting to mention Gandhiji’s son Hiralal offered his services to sell Godrej soaps and worked as a Godrej salesman for a considerable amount of time during 1920s-30s. During pre-independence period, selling was more instinctive and intuitive.

Our Sales Office was located in Lalbaug till 1970s and R. K. Sanjana, the sales manager, used to spearhead the sales team that included talented sales personnel like Mr. Abbas Aly, Mr. Irani, Mr. Guzder and many more. From the records of late 40s and early 50s, we learnt that it was tough to convince the customers to buy steel cupboards as they were more expensive than wooden cupboards and so was the case with our steel furniture. R. K. Sanjana impressed upon his team that ‘a master salesman is one who knows how to create demand for what he is selling’. To motivate

Right from inception, both Ardeshir and Pirojsha attached an equal importance to selling.

By VRUNDA PATHARE, Godrej Archives

Sales Team, Lalbaug, 1950

Lalbaug Sales Office, May 1950Sitting in front: From L to R:

J. A. Kharas, R. K. Sanjana and Prabhavalkar

1920 1940 19601930 1950 1970 1980 1990 2000

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his Sales Force, he had issued a circular stating that such situation calls for good salesmanship skills for convincing the customer how it will be profitable to invest in high-quality Godrej furniture. Also our salespeople were very good at making offers against Government tenders and winning them.

R. K. Sanjana as the Sales Manager of G&B had a great knack of saying what he wanted to say using different means. In 1965, he had circulated a story of an American salesman which is reproduced here to convey the point that in challenging times, it would be better if we focused on the substance of selling than wasting our efforts in mere trappings.

Under the leadership of Dr. Hathi, who succeded R. K. Sanjana, the sales function at G&B was modernised and made more dynamic to meet the new challenges.

Godrej always had a tradition of selling well and strongly and salespeople have played a remarkable role in G&B’s success over the years.

Godrej always had a tradition of selling well and strongly and salespeople have played a remarkable role in G&B’s success over the years.

1920 1940 19601930 1950 1970 1980 1990 2000

CHANGE > SELLING

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A Salute to our Brave Hearts

“When you change the way you look at things, the things you look at change”

– Dr. Wayne Dyer

By ANIL MATHUR, Chief Operating Officer, Godrej Interio

So true for our salespersons – from rationalising the functional needs to satisfying the emotional needs of our customers, they make selling

both a Science & an Art. They are the true force that makes or breaks the organisation; they help the organisation leap forward.

Their creative power to emotionally move the customers, their logical reasoning to convince customers and their determination to work through any terrain, season & diversity of customers gives them a kaleidoscopic personality, that of an artist, scientist and a soldier.

Soldiers, that they are, they become first in the ‘line of fire’ of customers for any organisational goof-ups/mistakes, be it product quality, supply chain or after-sales service and with the changing customer demands, the gap between the deliverables and the customer expectations continues to exist and so this becomes a regular feature for them. Yet, they bounce back, keeping their frustrations at bay, continuing their calls from one customer to another, exuberating confidence, maintaining high energy levels in order to win new business. Thus proving the saying ‘Selling is transference of feeling”.

Retaining existing customers through relationship building is the key to their success and this can only happen if the customer perceives them to be proactively solving his problems, be it pre-sales or post-sales. In retaining existing customers or acquiring new customers, they need to continuously strategise, detail an action plan & develop value propositions for each call. Not many times does this give him success just like a basketball player or a hockey player who dribbles through the field and yet at the last moment not able to score. Many of these misses may be due to internal or external factors, yet they are attributed to his poor planning or strategising.

In spite of all the hurdles, their self-motivation keeps the journey of commerce rolling & expanding, no wonder we call them “Brave Hearts”. Let’s recognise and salute our sales team, the so called “Feet on the Street” who in the true sense are the “Feet of the Organisation”.

In spite of all the hurdles, their self-motivation keeps the journey of commerce rolling & expanding, no wonder we call them “Brave Hearts”. Let’s recognise and salute our sales team.

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GPS eyes the Aviation Sector -acquires Industry Body Accreditation

At Godrej Precision Systems (GPS), a need was

felt for exploring newer avenues of business.

Opportunities could primarily come from the suppliers

of components/sub-systems for commercial or military

aircraft manufacturers i.e. the Aviation Sector. This

sector demands adherence to standards that are

extremely stringent and wide in scope.

GPS today has AS-9100 Quality Management System

certifications, which apply only to machining and

fabrication requirements of the Aviation Sector. In case

of deployment of chemical processes, non-destructive

testing, welding or heat treatment the National

Aerospace and Defence Contractors Accreditation

Program (NADCAP) certification is a must.

NADCAP is a global co-operative standards setting

initiative for Aerospace, Defence and related industries.

The program is from Performance Review Institute

(PRI), created in 1990 by the Society of Automotive

Engineers, USA. Industry majors such as GE, AIRBUS,

BOEING, GODRICH, SNECMA, and HONEYWELL are

the members of this society. The member companies

work together to develop industry-wide standards for

By T. C. REDDY, Godrej Precision Systems

the processes listed earlier, as deployed in the aviation

sector. The mission of PRI is to provide international,

unbiased and independent assessment and certification

services for products and manufacturing processes, for

the purpose of adding value, reducing total cost and

facilitating mutually beneficial relationships between

customers and suppliers.

NADCAP requirements are very demanding. They

require continuous and intense efforts for obtaining and

retaining the certification. The assessment is process

oriented. This calls for a new way of managing on the

shop floor.

Team GPS is delighted to report a rare feat of zero non-

conformity this year - for the 3rd year running. GPS has

thus, entered a prestigious `Merit Program’ category;

implying that their regular audit will now be after 1.5

years as against annually.

As a result, the leading players in the aviation sector have

started reposing greater confidence in the capabilities

of GPS. This would mean good business in the months

ahead.

Kudos to Team GPS for this excellent work!

CHANGE congratulates all the team members and

urges them to spread the essence of this good work

to the other processes in the business for a healthy

growth.

Front Row (Left to Right): N. More, A. Pawar, A. Raut, J. Shinde, S. Shirapure, T. Saha, S. Gadre, S. Jahangir,

N. Mairale, R. Sawant, R. Ranmale and T.C. Reddy

Back Row (Left to Right): S. More, M. Sonawane, S. Gadekar, S. Nalawade, I. Rahman, V. Prajapati,

A. Thorat, M. Rane and S. Vinkar.

CHANGE > SELLING

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Cost Congress 2010

Intense competition in the market has created price

and cost pressures on organisations. As a result,

organisations are continually looking for ways of

enhancing competitiveness both strategically and

operationally. Customer focus, innovative products

and the need for predictable cost structures

collectively influence the design of cost strategy of the

organisation.

The second requirement for enhancing competitiveness

is to have the operational analysis with focus on

productivity – in terms of scarce resource utilisation—

which ought to be both efficient and effective. This

entails a change; from the traditional mode of expense

classification to resource-based categorisation of a

business unit expenses.

The Total Cost Management framework helps address

both strategic and operational issues in any organisation.

Adopting the framework results in the paradigm shift

from that of cost reduction to cost management and

finally to cost leadership.

This year the 9th edition of the Cost Congress was

held in Mumbai on 17th and 18th November 2010. Cost

Congress is the annual flagship event of Total Cost

Management (TCM) Division of CII. Godrej Interio was

the principal sponsor of this event.

The theme of the conference was ‘Aligning TCM

with strategic and operational cost management’.

The conference focused on the ways a business can

evolve towards cost leadership. Also the advantages

of adopting the TCM framework were highlighted. The

participants were from Finance & Accounts function as

well as other functions.

‘Anything that gets measured gets managed’. We at

G&B invited CII-TCM Division to assess the cost maturity

of four of our businesses namely Security Solutions,

Precision Engineering, Material Handling and Process

Equipment. The assessment has completed and now

our businesses understand at which level they are,

which good practices they need to follow and where

the opportunities for improvement exists.

By ABHAY KULKARNI, Corporate Finance & Accounts

Dr. K. A. Palia

1. A. N. Raman, Member CII-TCM working group, summarising assessment experiences shared by

K. Suresh- CFO, Amararaja Batteries Limited, Abhay Kulkarni, CGM (Finance) &

Ajay Palav, GM (Finance) from G&B

2. Rahul Naik, G&B raising a query

3. Release of document on ‘TCM movement in India’(L to R)

A. N. Raman, Member CII-TCM working group and V. P., SAFA,

P. Thiruvengadam, Member CII-TCM working group and Senior Director, Deloitte Tohmatsu (I) Pvt Ltd.,

S. Mahalingam, Chairman CII-TCM working group and E. D., TATA Consultancy Services Ltd.,N. Ravichandran, Director, IIM, Indore,

Dr. K. A. Palia, Chairman, Cost Congress 2010 and E. D. (Finance), G&B,

K. V. Mahidhar, Member CII-TCM working group

4. Participants from G&B (L to R) Abhay Kulkarni, Indrapal Singh, S. N. Irani, Kerman Photographer,

Pervin Vanskuiwalla

5. Participants from G&B (L to R) Paurush Bhesania, Suresh Iyer, Vijayan Warrier, Berzis Mehe-Homji, T. Ashok

33

The spirit to work in a collaborative manner, especially of technical, commercial, financial and IT people, towards operational improvement is the essence of Cost Management.

Security Solutions and Precision Engineering businesses

have taken the lead and started the implementation

of the TCM model. We are confident that seeing the

benefits that are accruing to these businesses, many

others will follow suit.

The conference gave an insight into the concepts of

Cost Management and also an opportunity to interact

with companies like ITC, Subros and Kirloskar Brothers

and others who are significantly advanced in Cost

Management practices.

On behalf of Godrej, a case study presentation was

made where I shared my views on the TCM movement

and the progress made by G&B. Ajay Palav of Process

Equipment Business shared his experiences of

assessment of Cost Management Maturity and the way

the business wanted to take the next steps.

Dr. K. A. Palia, Executive Director- Finance, G&B and

Chairman, Cost Congress 2010, in his closing address

said, “The major benefit of this initiative in the company

is enhanced cost awareness. Development is that

non-finance managers too are getting involved in cost

analysis at operating and strategic levels. The spirit to

work in a collaborative manner, especially of technical,

commercial, financial and IT people, towards operational

improvement is the essence of Cost Management.”

Cost Management is an emerging discipline with

cross-functional orientation. Like Quality and HR, every

manager is a Cost Manager. Our road-map for this

initiative is to have all our businesses go through the TCM

Maturity Model Assessment exercise in FY 2010-2011.

The objective is to identify opportunities for improvement

in Cost Measurement and Cost Management practices.

Also the exercise would help create ownership of the

initiative and enhance awareness of the same.

1.

2.

3.

4.

5.

CHANGE > SELLING

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Godrej makes a mark felt at the National Quality Summit 2010

The 18th Quality Summit was held from the 18th to the 20th of November at Bangalore. Godrej & Boyce was represented by a large delegation

consisting of 21 people from various businesses. Eight businesses, namely Locks, Interio, Security Solutions, Prima, Precision Engineering, Material Handling, Construction and Lawkim had applied for the CII Exim Bank Award for Business Excellence this year. Five of these businesses qualified for recognition from CII. The Commendation Certificate for Significant Achievement was awarded to Locks and Interio while Security Solutions, Construction & Lawkim were given Commendation Certificate for Strong Commitment to Excel. The certificates were distributed at a grand function on 18th of November. Security Solutions got a pleasant surprise when they were recognised for ‘People Management’ under ‘Good Management Practice’- a category introduced this year. It promotes recruiting ITI apprentices and training them to substitute the Graduate Electronic Engineers, whose retention was becoming an issue for the division. All assessors who participated in the award process were recognised at another gala event held on 19th November evening. Swapneel Nagarkar, Ravi Gupta and D. N. Deshmukh from Interio, Rao from MHE and I were amongst those felicitated by the Jury members present.

By B. K. RAJKUMAR, Business Excellence Cell

The highlight of the Summit was a talk by Mr. Narendra Modi, Chief Minister of Gujarat who mesmerised the audience.

Godrej Team at the National Quality Summit 2010

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(Top to Bottom)

1. Godrej Locks receiving the Commendation Certificate for Significant Achievement

2. Godrej Interio receiving the Commendation Certificate for Significant Achievement

3. Godrej Security Solutions receiving the Commendation

Certificate for Strong Commitment to Excel

4. Godrej Construction receiving the Commendation Certificate for Strong Commitment to Excel

5.Lawkim Motors Group Limited receiving the Commendation

Certificate for Strong Commitment to Excel

6. Godrej Security Solutions receiving certification for ‘People Management’ under ‘Good Management Practices’, introduced

this year

For those who were attending the Quality Summit for the first time, it was a very enriching experience to listen to speakers on diverse topics such as Innovation, Leadership, Sustainability, Knowledge Management, Quality in Services, Managing Human Resources and Process Excellence in Manufacturing. The highlight of the Summit was a talk by Mr. Narendra Modi, Chief Minister of Gujarat who mesmerised the audience with his talk. He emphasised the need for creating credibility and confidence amongst consumers through superior product quality rather than clever advertising. He also stated the need to focus on research and continuous improvement. He further stated that for government initiatives, the outcomes were more important than the inputs and supported his belief by giving numerous examples of how the Government of Gujarat has adopted modern technology in different fields to bring about efficiency and savings in cost to make life better for the aam aadmi. Another noteworthy talk was by SwamiNikheleshwarananda of Ramakrishna Mutt, who spoke about improving the quality of life by harmonising the materialistic and spiritual outlooks and by differentiating between need and greed.

Sessions on quality in all walks of life and social responsibility were also interesting.

Overall there was a great deal of learning and the Summit served as a reminder of the magnitude of work that needed to be done in our quest for excellence.

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Dassera - Diwali Function 2010

Godrejites look forward to Dassera-Diwali celebrated every year at Pirojshanagar. This year

the function was organised on 30th October by the Commercial Department of G&B. Manoj Ganjawalla, Vice President and Head- Commercial, was the chief guest and Chairman of the Celebration Committee.

In the context of India’s economic growth and the opportunities it has created for us, the committee aptly chose the theme for the function as Aao Choo Lein Aasmaan (Let’s Leap for the Stars). A song was composed based on the theme and sung by our employees.

At the function, individuals and businesses who have won accolades during the year were honoured and felicitated. And so were the winners who have participated in external/internal competitions by CII and our businesses.

Keshao Ingle, an ace welder, Godrej Precision Systems was felicitated for winning the Prime Minister’s Shram Shree 2007 and Gunwant Kamgar Award 2009.

Udayachal Primary & Secondary School children presented a song and a dance for all present at the function.

By KSHAMA HANDA, Godrej Commercial

The theme for the function was Aao Choo Lein Aasmaan.

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Felicitation of the Godrej family by the employees at the Dassera-Diwali 2010 function

Manoj Ganjawalla in his inspiring speech lauded the outstanding performance of our sportsmen who garnered 100 plus medals in the Commonwealth Games 2010. He said that the people of Bharat are rising fast and the proof of this was in the fact that most of the winners had a humble background and they came from villages and small towns. This phenomenon, he said, has given way to new opportunities in growing India which we as Indians are well poised to take advantage of.

Mr. Rambali Yadav, former president of GBSS spoke with a lot of passion and re-emphasised the fact that because of the healthy culture between the workers and the management, Godrej still remains one of the largest establishments in Mumbai.

Mr. Anil Verma, Executive Director- P&A, G&B, reiterated that Godrej is value-based, socially-conscious and is a progressive organisation which cares greatly for customers and the environment alike. He urged that enhanced productivity is the key to succeed in future. All concerned needs to work together cooperatively to become stronger to weather the strong winds of global competition.

Speaking on the occasion Mr. Adi Godrej, Chairman, Godrej Group, said that we are proud of the fact that nearly 40% of Indians use Godrej products and we hope that one day, this will reach the 100% mark. He highlighted that today Godrej has its presence in more than 20 nations across the world. All this has been made possible through high-quality products at affordable prices.

Mr. Jamshyd N. Godrej, Managing Director, G&B, in his address, stressed upon the fact that progress is only possible if all of us work together and this philosophy has held true since the days of his father, Mr. Naval Godrej. He urged everyone to give safety the first and foremost importance at work and said that safety is everyone’s job. He concluded his speech by emphasising on Productivity and Quality improvements realised through various initiatives which will help us in becoming more competitive, meet the expectations of the customers better and make the life of our work force free of pain and tedium.

The function brought people together and set the festive mood for Diwali celebrations.

Because of the healthy culture between the workers and the management, Godrej still remains one of the largest establishments in Mumbai.

We are proud of the fact that nearly 40% of Indians use Godrej products and we hope that one day, this will reach the 100% mark.

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Brighter Work-spaces for a Brighter Future at Godrej Locks

Shyam Motwani, V. P. & Business

Head, Godrej Locks, talks to

CHANGE passionately about the

imperative of changing the work

culture and workspaces to enable

Team Locks to achieve a quantum

growth in sales and profits…Here

are the edited excerpts.

CHANGE: Why did you decide to

re-design and renovate Godrej

Locks office?

Shyam: When I moved to Godrej

Locks, I found major challenges

facing me on two fronts - people and

workspaces. On the people front,

I had the challenge to change the

mindset of our people from being

a local Indian manufacturer

of Locks to that of a leading

global manufacturer of Locks

& Locking Solutions. I had to

spur application of mind and

good thinking on the job.

Managerial productivity

required to be enhanced

and so was thinking

i n n o v a t i v e l y .

Further, I had

found that retaining

e m p l o y e e s —

specially the

younger lot — was

quite a task. I had

to do something

to neutralise the

attractiveness of

jobs in IT, ITES

and BPO sectors.

As I was mulling

over these issues,

the results of ‘Let’s

Talk 2010’ survey

were out and Godrej

Locks scored pretty low

on working conditions.

To promote world-class thinking

which may lead to world-class

products and services, I had to

take a conscious decision of

creating a world-class working

environment both for office and

the manufacturing facility. The

environment should be such that

young people could relate to it.

The renovation project both for

the office and the manufacturing

plant was planned in detail and the

required sanctions were obtained

expeditiously. The renovation began

in June 2010 and was completed

in the middle of September 2010.

CHANGE: Why did you decide to

take up the renovation soon after

you took over the business?

Shyam: In early 2010, I had

committed to the Board and the

top management of G&B that at

Locks, we will take key strategic

initiatives from the beginning of FY

2011-`12 to grow the bottom-line

by three times to what it was in

2009-`10. During this period Sales

Revenue was planned to grow at

34% CAGR, YoY.

To deliver on the promise, the

transformation of the business

became an absolute must. And it

had to begin from the transformation

of the office and the manufacturing

plant environment.

CHANGE: Please list five

significant changes which have

been made in the office space

and why?

Shyam:

Open Plan Of1. fice- With a pristine

and chic look.

Co-location of functions- 2.

design, product management,

Shyam Motwani

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To promote world-class thinking which may lead to world-class products

and services, I had to take a conscious decision of creating a world-class working environment.

marketing, and sourcing to

facilitate communication, work

in cross-function teams and

huddling to crack a problem.

Signage System- scientific 3.

and state-of-the-art system

meant for sharing information,

way finding, emergency

signs, warning signs and

communication.

Dining Space for management 4.

staff- equipped with a

refrigerator, microwave oven,

snack vending machine etc.

Meeting Rooms and Lounges- 5.

to facilitate ideation and working

in groups.

CHANGE: Please tell us about

the salient features of the design

brief for office?

Shyam: We wanted an all white

look which would look clean,

pristine and chic. The idea was

to make the office space bright,

clutter-free with open spaces.

The look and feel has been kept

contemporary and stylish.

CHANGE: In which way did the

other businesses of G & B helped

you in this effort?

Shyam: Interio Team has helped

with their Interior designers, for the

look and feel of the office, furniture

and décor. E&E has provided

services for all the electrical work

and concealing, fixtures at office

and in the shop floor; Construction

for the coordination and masonary

work and corporate P&A (IR,

Security and Safety) has assisted

and given their advice on man,

material rules and safe working

conditions.

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“The change in

sitting arrangement is better. Now relevant

cross functional members are sitting in one area, this has helped in accessing

people quicker.”

“I was the first person to shift in

the renovated new ground floor office. Now I work in a

manufacturing company which is at par with software infrastructure.

Thanks for all the support. Now it’s my time to bring a good and healthy change for the division

by maintaining the quality of our products.”

“This new office is a real treat

to us. Today we feel so proud to be part of such a

wonderful work atmosphere. Thank you for providing such

great leadership and so much opportunity to

learn.”

“My true experience after working for one month in the new

environment - the distraction in terms of anyone walking near the

table and talking has reduced to almost zero. I have never heard a raised voice or heated discussion in person or over the phone anywhere including the service department in the past 36 days that

had never been the case earlier. It may be due to the new soothing environment.”

“The job rotations will surely

be a vehicle for many of us to make our career canvass a really colourful one. The new

office premises and several other initiatives will surely create an

environment conducive to reaching the ambitious

goals set for our division.”

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CHANGE: What was the role played by different

creative agencies?

Shyam: We got on-board various advertising agencies

for designing of mood boards and a signage design

agency for signage layout, design and execution.

Mrs. Pheroza Godrej has lent 40 plus reprints of

paintings from her personal collection and provided

valuable suggestions and advice for the standardisation

of office accessories. Thank you, Ma’m.

CHANGE: Are there any rules that you have put in

place to ensure the office remains as good as new

in the months ahead?

Shyam: Yes,

No food/tea/coffee at work desks. The same is •

allowed to be consumed only at the dining room.

Housekeeping of one’s area; no more than one •

SDU for the Department Head and not more than 3

drawers utility space per individual.

No box files / files lying in and around / beneath the •

work desk; clutter free.

Designated housekeeping incharge on every floor.•

Access control Entry & Exit. Rear Exit available for •

emergency use.

CHANGE: How does this new office ambience

connect with the repositioned Godrej Brand?

Shyam: Locks is the only business in G&B which has

taken the feedback of ‘Let’s Talk Survey 2010’ seriously

and in fact, acted upon it. We have attempted to bring

the essence of the re-positioned Godrej Brand into a

physical manifestation. Also, we have tried to bring alive

the positioning idea of Godrej Locks i.e. ‘Technology

that gives strength’ by implementing visual identity

programme specially designed by a British firm ‘The

Clearing’ and it was a joint effort.

CHANGE: Now as the work environment has been

improved greatly, what is the way forward?

Shyam: The way forward is to gain greater traction on

the highly conducive, mind activating and productivity

enhancing work environment to harness fully the

potential of people, products, and processes… enabling

us to meet the expectation of our key stakeholders.

Top to Bottom :Entrance to the Godrej Locks office (Plant-18) Lobby leading to the ‘Tranquil’ cafeteria for employeesA State-of-the-art Product Application CentreOpen office work stations for employees

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A new range of Fire and Burglar resistant safes - Defender Z+ launched by Godrej Security Solutions

Defender Z+ safes were

launched across Mumbai,

Kolkata, Hyderabad, and Chennai

in October 2010. Banking fraternity,

Jewellers and GSS’s clientele from

financial institutions, NBFCs…

were present at the launch.

Our customers have been

demanding higher security safes in

the wake of enormous challenges

faced by them on the law and order

front. Defender Z+ is more than

adequate state-of-the-art response

to the needs of our clientele.

Thoughtfully built and high in

aesthetics, Defender Z+ safe is an

intelligent machine. It embodies

latest technology for ensuring

peace of mind for our clientele. The

unique benefits are as follows:

Additional security is ensured 1.

by ‘IntelliSens’, a smart access

Compiled and Edited by SANA ANJUM with inputs from AMRUTA CHENDKE, Godrej Security Solutions

control device in the safe which

blocks the movement of the

original key unless an access is

sought through it.

Forceful opening of the safe is 2.

prevented by a special alarm

system ‘I Warn’ which would

go off immediately on such an

attempt, sounding an alert to all

concerned.

The movements in and around 3.

the safe are captured by an

in-built camera, monitoring

secretly.

Extreme resistance against 4.

attempts of safe-breaking is

provided by duty barriers ‘Z

Shield’ and ‘Z Shield Pro’

Defender Z+ range of safes is an

outcome of ongoing research

at GSS to evolve products that

satisfies the ever-changing needs

of the customers. To capture

serious attention of customers,

an innovative event format was

adopted which included acts of

mime and a skit wherein burglars

attempted to break into the safe.

Obviously the attempt failed

miserably against the strength of the

safe. Guests were entertained by

a well-known stand-up comedian

VIP- Vijay Ishwarlal Pawar. This

was followed by dinner. The guests

enjoyed the evening thoroughly.

In closing, thanking the audience for

participating in the event, Mr. Dara

Byramjee, V. P. & Business Head,

GSS said, “At Godrej, we are

driven by passion for innovation

with focus on harnessing latest

technology to provide cutting-

edge solutions.”

The events provided huge visibility

to the new range of safes besides

an opportunity to network with our

clients.

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Rejoicing the Spirit of X’masBy UNA FERNANDES, Godrej Infotech

The essence of Christmas is the joy of brightening others’ lives, bearing each others’ burdens and supplanting empty hearts and lives with generous gifts. That’s the magic of this festival.

It was that time of the year again…my favourite time, Christmas! Not just a date, but a

state of body and mind, with the spirit willing even more. With the X’mas paraphernalia

brightening the streets, people geared up to shop – X’mas trees, decorations, blinker bulbs,

winking Santas, bulging stockings and other fat-bulgers like cakes, puddings, marzipans,

nankhattais, milkcreams…

For me, X’mas and the festive season are synonymous with family and friends celebrating,

having fun, enjoying meals together and exchanging gifts. It’s a special time for giving, a time

to be compassionate, to be thankful for the year gone by and for the countless blessings

received by us. X’mas reminds us of the people we love and care about and to experience

the joy of giving. X’mas unearths the ties that bind us together, woven in the simplest and

the strongest way.

I enjoy shopping, finding the perfect gift and making it ready for everyone on my list. Would

you know the Christmas Spirit if you saw it? It is fast becoming a thing of past in our culture

today. We slash at it unintentionally with questions like, “What do you want for Christmas?”

Can’t we celebrate it in much simplicity?

The spirit of Christmas is the Spirit of Giving… from a generous heart. This has very little

(or nothing?) to do with the amount of money we spend on goodies or on how much we

donate to charities.

The true ‘Spirit’ lies in taking the `me’ out and replacing it with `Let’s Help Others’ to bring out

the true meaning of X’mas. Also expressed as below:

The joy that you give to others;

is the joy that comes back to you.

And the more you spend in helping the poor and lonely and sad;

the more of your heart’s possessing will return to you gladly.

Christmas is a state of mind; to cherish peace, goodwill and being kind in abundance is the

real spirit of Christmas.

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know your mangroves

Do you see and learn from nature and animal behaviour around your own neighbourhood? This section aims at educating you about the different species of plant and animal life in our Mangroves.

Bruguiera gymnorhiza, an evergreen tree which reaches up to the height of 8-12 metres. This particular species grows only close to freshwater sources. Just like Red Mangrove, one can see pods hanging from Orange Mangroves too, which are nothing but the babies (germinated seeds) attached to the mother plant (vivipary).

The flowers of the species are red and remain attached to the seeds when they fall. The seeds are green, 10 to 20 cm long and can be found throughout the year. Large glossy leaves are seen in bunches at the end of branches.

Its various parts have the following usages :

Young shoots1. of Orange Mangroves are eaten as a vegetable or are preserved after boiling.

Extracts2. from this plant, are used to make fragrances.

Bark 3. is used as a cooking spice. The bark also produces a strange smell that frightens the fishes away.

Scrapped skin4. of the Bruguiera fruits/seeds are traditionally used to stop bleeding from wounds. The leaves are used to control blood pressure.

The 5. timber of this plant is heavy & tough. It is used in construction. It is also preferred as firewood or for converting into charcoal.

Next time you visit the Mangroves, check out this species more closely.

Orange Mangrove (Bruguiera spp)

| For more information, visit www.mangroves.godrej.comImage courtesy - Dr. Maya Mahajan

By Dr. Maya Mahajan, Soonabai Pirojsha Godrej Marine Ecology Centre