R&D - Research and Development !!

 R&D plays a vital role in shaping an Organization's future prospects. Every company invests lots of their funds on R&D activities as they want to tap the potential market on their respective fields. In this blog I want to list few examples on how R&D played a role in understanding customer requirements. 

Example 1: Ather is one of the top brands in E-vehicle category for two-wheelers. They need atleast one month time to deliver the vehicle since booking is huge for Ather vehicles. Ather is based out of Hosur as they have a manufacturing plant in Hosur. Such was the demand that Ather decided to open second plant to Hosur to fulfill orders. Since they were closer to Karnataka and ladies sitting in the backside often prefer to sit with leg on both the sides hence they skipped the side step. This was all fine in Karnataka but when they reached Tamil Nadu market they saw ladies sitting on the back seat one-sided hence they badly wanted a side step to balance their legs. Ather realized this was a miss and they introduced Side step as an accessory later after they rolled out to many cities. See how R&D played a role in a very simple accessory which had huge impact on two-wheeler audiences. 

Example 2: Mail In Rebate program is a famous program deployed by many US companies to woo customers. Basically a company may ask you to buy a product for XYZ amount and promise they will refund you portion of the money upon you sending list of items they request you to send. Let us say you buy a TV monitor for 1000$ and company promises to return 100$ back to you upon you sending bill, serial number and form filled in. R&D says on an average 40 to 60% of the US people don't end up redeeming the funds for reasons unknown. Had the same Mail-in rebate program deployed by Indian Companies then people would just receive the parcel and right away photocopy the bill, tear the serial number, fill in the form and post it right away. Redeem percentage would have been 80 to 90% and that is why such programs are not deployed by Indian companies. 

Example 3: Ramraj Veshti is very popular brand and big thanks to the "Velcro" method of wearing the veshti. Such a simple idea which made the brand what it is today. R&D realized one of the main reasons people are not wearing a dhoti is because wearing a dhoti often loosens out thereby leading you to tie up again and again. With Velcro right from a toddler to old age people everyone is able to wear dhoti at ease. 

Example 4: Kurl-on is a famous mattress brand and they did extensive research on coming up with a mattress for patients with back pain. Kurl-on introduced something called as STR8 technology where mattress bends it remains straight and does not sag. Kurl-on has tested for people who weigh even 120 kilos; Basically they want to attain firmness as well as softness through STR8 technology. R&D team constantly works with Orthopaedic specialists to deploy new innovations in their field. 

Example 5: If you think of a brand in Sesame oil then no.1 brand comes to you is 'Idhayam"; Idhyam brand is a global brand used wide across the Indian people living in different parts of the world. Idhayam introduced 'Oil Pulling' way back in 90's. They gave a small sachet and upon opening it you need to goggle 10ml of the oil in empty stomach. You need to swish and swirl the oil (like how mother in laws used to do their daughter in laws) for 10 minutes and then expel the oil and rinse with water. This went viral and soon their brand got attention everywhere. Their think tank through their R&D worked very cleverly to reach a common citizen living in a remote village to a millionaire living on a posh Bangalow thereby establishing their brand to people from all walks of life. 

As you can see these are just some of the examples I listed out where R&D played a major role which paid rich dividends in return to the company.  

Black Pepper

 Before August 2022 Black pepper was a mere spice product I used occasionally on Food but once I got into Spices wholesale business Black pepper has become integral part of my daily routine. Black pepper is a wonderful spice used for many dishes across the globe. In my community pepper is given more importance and spice level on chettinad dishes depends on Black pepper and not chilly powder. Let us do a deep dive into this amazing spice item - first and foremost spicyness of Black pepper depends on 'Piperine' level; Piperine is the technical ingredient in Black pepper and piperine level and spice level are directly proportional to each other - meaning if more piperine level then spice level is good and if piperine level is low then spice level is also low. Black pepper is harvested roughly around November to February timeframe and they are creepers and they crawl through big oak trees. Entire Kerala, Kumuli, Yercaud, Kollimalai, Sirumalai, Coorg and Chigmangalur are some of the places where Black pepper is found in adundance. Most of the places where Coffee is grown you can find black pepper since Coffee and Black pepper are like Sachin-Sehwag partnership. 

   How is Black pepper Graded? Mostly Black pepper falls into '8 mm', 9 mm' or '10 mm' grades with 8mm being the small one and 10 mm being the big one (Super market category); Price increases with size and the most common one is '9mm'; Actually smaller ones are more spicier than the big ones but if you want your Vada or Pongal to have Black pepper pop out then chefs prefer big ones like 9mm. If you are going to crush it and use it as powder 8 mm is more than enough. None of the governments has regularized the norms for Grading hence Estate owners give it as a whole package containing all sizes. This is called Ungarbled pepper since sorting/grading did not happen. If growers sort pepper according to the sizes then that falls under garbled category and price is more since there was effort involved in sorting. 

The most common and simple test to check whether Black pepper is adulterated is the water test - if you soak black pepper in water and if it settles down at the bottom then that is unadulterated black pepper whereas if black pepper floats in water then that is papaya seeds. There is a twist to this test now for two reasons

[1] Thanks to Dengue, papaya seeds are in huge demand now since papaya seeds gets exported too. Hence mixing of papaya seeds has reduced quite a bit these days. 

[2] Due to Labor issues in Estates, Black pepper is harvested at one shot - meaning even the small ones that is in growth stage is plucked along with the big ones. One labor approximately does 4 trees per day and it makes more economic sense to pluck everything at one shot rather than doing it in two instances. Since everything is plucked (small, medium and large ones) in one shot it is also dried uniformly. Now the small ones (7 mm ) actually do float in water. This may give an impression that these are papaya seeds but if you taste you will realize it is pepper. 

I see following two major issues for Black pepper 

(a) Black pepper tends to lose weight upon time due to its moisture content. A 30 kgs sac can become 29.800 kgs under indirect light (near a window) within a month. Loss of 200 grams in monetary terms can be huge if you are dealing with bulk purchases. Most of the Estate owners take certain percentage to themselves (say 20%) and leave the remaining to Lease folks (80% of the yield); The guy who took the lease pays to estate owner based on the terms and conditions mutually agreed between them. Now lease folks play dirty tricks - just like how Shares gain upon holding for long term they tend to keep stock for longer term expecting a huge demand. Meanwhile time passes and pepper slowly loses weight and these folks spray rice bran oil on the pepper by that way weight is retained. Pepper where rice bran oil is sprayed tends to be less spicier. Even 2-3 years old stock is released by rice bran oil sprayed on them. Though rice bran oil is not harmful to health it overall brings out the flavor of this wonderful spice item. 

(b) Except Chigmnagalur I have dealt with pepper from many parts of India and found that traders deploy unethical ways in handling black pepper. In some parts pepper is boiled and vapour is captured through techniques thereby extracting the juice out of the pepper (spicyness of the pepper). This is sold to pharma companies, MNCs and exported to countries thereby leaving mere skeleton (sakkai) of black pepper for public. This practice is followed in Kollimalai and hence I stopped sourcing from there. 

Here are my suggestions on how to use Black pepper 

1. Consume Black pepper along with salt chunks in beetel leaves for immunity 
2. For crushing go for smaller size (8mm)
3. For Vada or Pongal go for bigger ones (9 or 10 mm)
4. If you hold black pepper in your hand - you should see black ones, sembattai ones, slight purple ones, small and big ones and you can confirm this is natural just like how bunch of people stand for a group picture (there will be people with both fair and black complexion, small and big individuals). If the color is uniform then you can assume artificial methods has been adopted for the uniform nature. 
5. Last but not the lease never expose Black pepper even in indirect sunlight as it tends to lose weight. 

Mr.Manavalan Pillai - Founder of Sarathas

 People who know trichy will definitely be aware of Sarathas and Mangal & Mangal; Both these shops are pioneers in their field and add pride to Trichy. In this blog I am going to talk about Mr.Manavalan Pillai, founder of Sarathas who passed away on April 30th due to age factor. 

Sarathas is one of India's largest textile showroom started in the year 1969 by Mr.Manavalan. Due to his business acumen he grew the business to great heights thereby making it a one stop shop for all clothing needs. Company has over 1500 employees at NSB road in Trichy (similar to renganathar street in Chennai) which is a very happening place. Dhirubhai Ambani has visited the store in 1980 while he was also into Textile business during that time. Mr.Manavalan who doesn't hold any fancy degree just applied basic ground rules on top of executing some strategies very cleverly which I would like to list one by one. 

Strategy 1:  Mr.Manavalan knew his targeted audience - "Village people"; This is the most common thing in Business which people often overlook. As Kollywood producers often say if movie runs in city it will fetch them profits only to some extent whereas if a movie runs well in B and C centers then that will fetch them more moolah. Trichy is the only place in Tamil nadu where it shares borders with as many as 10 districts ..Thanks to its geographic location. It is bounded in the north by Salem district, Northwest by Namakkal district, in the Northeast by Perambalur District, East by Ariyalur district and Thanjavur District, in the southeast by Pudukkottai district and Sivagangai district, in the south by Madurai district, in the southwest by Dindigul district and, in the west by Karur district. There are countless number of villages in the sub urbs of Trichy and Mr.Manavalan knows what festival goes in what village, what time harvest happens, what time thiruvizha happens and what time people look out to buy new clothes etc., He has this information as knowledge database and makes appropriate moves by advertising at crucial times and pulls the crowd to Sarathas. He will do whatever it takes for village people to come and visit Sarathas. 

Strategy 2: Advertisement is crucial irrespective of times - now its social media, previously it used to be print or through Televisions. One thing people have to keep in mind is cost effectiveness - no point in spending too much money convincing oneself that advertisement will do it for you. Mr.Manavalan never opted advertisement through Televisions (one has to adapt according to changing times but advertising through televisions used to be expensive deal back in 80's and 90's). He always relied on huge paintings in walls with biggest of font sizes. If you enter trichy or exit trichy you will come across many places where you will see "S-A-R-A-T-H-A-S" written both in english and tamil. He will engage local painters and always looks out for walls on appropriate junctions. Mr.Manavalan also picks corner houses in suburbs and convinces house owners to whitewash their wall and have wordings of Sarathas written over it in turn he offers freebies for their clothing needs. This not only makes them come all the way to Sarathas but they also end up buying more clothing seeing hospitality from the owner of the store. By building a goodwill with customers they start to spread the word to their neighbors and fellow village people who in turn start visiting his store regularly. 

Strategy 3: Providing food is one thing which has huge impact which people don't realize. Look at Mr.Vijayakanth - everyone talks about he offering food to people from various walks of life. Similarly Mr.Manavalan used to offer meals to all his employees thereby creating a bond and bringing the attrition rate of the employees. When I took a tour of Google office in California I came to know about the meal offerings to employees and this is a clever ploy from companies to bring employees on time, create a bond among fellow employees thereby improving productivity. Mr.Manavalan offered food to painters and his employees and made sure he retained employees as much as possible. 

Strategy 4: If you visit Surat, Ichalkaranji or any textile corridor in India everyone will recognize Mr.Manavalan and Sarathas - such was his clout amongst Textile sector. He was one person who used to buy in big lots negotiating to maximum extent because he had the ability to sell. As a trader you need to have guts to buy in bulk and that will happen only when you have confidence to sell. "Aadi sales" is a famous season for discounted sales and Sarathas is one shop which benefits maximum from this season and they provided "Katta pai" even in those days thereby making it comfortable for people to buy in bulk. 

Young Entrepreneurs has to learn from people like Mr.Manavalan who created a textile empire after migrating from Sri Lanka. People often think being a manufacturer is more creative than being a trader but being a Merchant Trader can be very interesting on how you engage your  Business model. Mr.Manvalan's contributions to Samayapuram temple is HUGE and he has helped as many as 100 +  temples in and around Trichy area on renovating. His philantrophy activities is also huge and overall he is a big inspiration to young entrepreneurs like me in Trichy and his legacy will continue to shine.