At 23, he is heir to a whopping Rs 23,000-crore business empire, employing 50,000. But Shashwat Goenka, the only son of Sanjiv Goenka, Chairman of the RP-Sanjiv Goenka Group, displays no sign of self-importance or bluster as he chats about the job he has on hand as sector head of Spencer’s Retail. He is in Chennai to inaugurate the vintage retail brand’s 27th hyper-store in Velachery.
Gung ho about Spencer’s stores, he says that while last year was a consolidation phase, involving pruning and shutting down some stores, “now we’re entering an aggressive growth phase. In the next four years we want to add more stores and expand our total area from 900,000 sq ft to 2 million sq ft.”
On the entry of and competition from foreign brands he thinks “competition is good because it challenges you and keeps you on your toes… without that it would be status quo.” He is open to possible tie-ups, “as there are so many choices.” On the criticism against foreign chains displacing
But his immediate priority is to veer Spencer’s towards profitability, which he sees around the corner. “The third quarter of this year is what we’re looking at for breaking even. But on a full-year basis it would be the next year — 2014-15.”
He thinks too many factors were responsible for the chain’s losses; “maybe we started too early, didn’t get our strategy right, or focused on too many things, went into too many geographies, had too many formats…we were all over the place to see what would click.” A growth strategy is now firmly in place, he adds.
Food is a big component in a retail chain like his, and the young Goenka, a keen foodie himself, says his stores offer a wide choice to discerning Indian consumers… “local, regional and international food from 30 countries… from pasta sauces and ice creams to different cheeses.”
Whether it is imported orange juice or Pepsi, he says people do pick up these products by paying a premium. “When I began and saw Pepsi on the import list, I wondered why but saw people buy it.”
The retail pull
When he returned after graduating in economics and marketing from Wharton last year, it was easy to zero in on Spencer’s Retail, with stores in 50 Indian cities. Even as a kid, whether in India or travelling overseas, “when I went shopping with my mom and nani (grandma), shopping was never the fun part. I’d watch how products are stacked, why some stores have so many and others only a few products, why the lighting was yellow or white.”
Considered a bright spark in the family in academic pursuits, surely he wants to pursue a full-time MBA at some point, I ask. With a smile he demurs: “That’s the long-term plan, but how soon and for how long I can get away is the point. Let’s see. Ideally, it would be good to get back to student life… yes!”
Compared to others his age, either studying or in less-stressful jobs, how does it feel to be in a high-pressure environment… even though born into such a privileged position?
“Well, a lot of my friends are working, all over the world. Yes, I do face more pressure than most of them, but then you’re doing what you always wanted to do. It’s a challenge and huge responsibility as well,” he says.
Too young for marriage!
It’s time to pull his leg, and I ask how he has managed to escape marriage, which comes calling early in Marwari families.
“I am only 23,” he says incredulously. “Even by Marwari family standards, I am too young,” he grins.
Like most scions of business houses get some work experience overseas, Goenka too wanted that. “But then with so much happening in India, I didn’t want to miss out on the action.” And, of course, his father wanted him back; “he wanted me back even earlier, but I said that is not happening!”
On whether the traditional Marwari ethos of doing business in a certain way clashes with the way modern, educated youngsters like him look at business management, leading to heated debates with the older generation, he says, “Surprisingly not. My father and I have different viewpoints on different things, with different logics driving those viewpoints. I had thought that the older generation may not listen to the younger generation. But that didn’t happen. He always listens and he understands my logic, and if he has a logic which is contrary, he explains it. And, surprisingly, we agree more than disagree on many things.”
Generation gap
Coming to his senior staff being much older to him, he says this does cause “embarrassing moments fairly often, when they say things I don’t agree with. So you have to see what to say, when and how to say it. And sometimes, because I’ve been away from India for four years and not exposed to what’s been happening in this market, my ideas do not make sense. So they explain the logic… it works both ways…”
The person he sorely misses is his grandfather R.P. Goenka, who passed away this April. “I was very close to him. On the day of my graduation he called and congratulated me. By the time I got back, we sort of knew the inevitable. But it was still a shock and we’re still getting over it.” If he failed to call him beyond two days, the senior man would call, and “we would talk about the world… movies, cricket, food, people at home, my friends, my class, my exams, my next play.”
He doesn’t agree that over the last few years the perception of India as an emerging economic giant has taken a knock. “In my four years in the US, I found people very pro-India. People in India think that the rest of the world is not so pro-India anymore, but outside I didn’t get that feeling at all.” Also, he argues, over the last few years the entire world has been gripped by economic slowdown.
“Our growth rate may be down, but compared to others we haven’t done badly and are still viewed as a growing economy. There will be ups and downs, but I think we’re getting out of it and should get back to old growth levels. I’m very positive about India’s future. That’s why I decided to come back without working there.”
Foodie who cooks to de-stress
Shashwat Goenka hails from a family of foodies; uncle Harsh Goenka, he admits, “is on a whole new level, of course.” But everyone in his family, “right from my grandfather (R.P. Goenka) down to me, is a big foodie. I like all kinds of food; I love to eat, love to cook.”
While at Wharton he did cook, but that was more out of necessity. “At home I cook for the fun of it and find it de-stressing. Both my granddad and grandmom loved cooking, as do my dad and mom. My dad cooks on and off, but used to do it much more when we were kids,” he says. The younger Goenka loves to cook different kinds of pastas and toss together interesting salads. “I love experimenting; for example, French fries with chocolate sauce taste very good.”
A vegetarian, he did try non-veg food “by mistake, but didn’t enjoy it and I don’t like the concept of killing something for food.” The most elaborate dish he has made is sushi with asparagus, avocado, cream cheese and other ingredients.
As a vegetarian, he has never faced problems in enjoying a wide variety of food while travelling. “There are so many options today… actually a lot of the world is turning to vegetarian, vegan diets. When I was going to the US, people said ‘you’ll face problems with food’. But there wasn’t a single day when I didn’t have about 10 different options to choose from!”
At a glance
Reading
I enjoy a lot of non-fiction; a few years ago it was fiction, from Harry Potter as a kid, to Dan Brown later. But now it’s random non-fiction… psychology, biography, management books. Right now I’m reading a lot of articles on Indian business and industry.
Theatre
I did a lot of theatre in school. I love watching plays; there isn’t much theatre in Kolkata but in Mumbai I always try to catch up. But now new theatre groups are coming up in Kolkata and I want to get involved in some way.
Religion
I am fairly religious, more than I thought I would be… (turning pensive) I think a part of it comes from my granddad, who was very religious. Being the youngest grandson, I spent a lot of time with him.
Movies
Love watching Bollywood movies, the masala movies are great fun, but love the offbeat ones as well. Last movie I watched… please don’t mention the name… was terrible! Want to see Great Gatsby . I did a course on films in college just for fun, and it included stuff on how Indian films evolved, so got to see many old Indian films.
Music
In school, I played the synthesiser but lost touch in college. In terms of listening, I enjoy all kinds - classical, devotional music and, of course, Bollywood. I love old Hindi songs.
Picture by Bijoy Ghosh