>>> Address by Dr. Davish Jain, Chairman, SOPA, President- Prestige Group of Industries And Vice Chairman – Prestige Education Society

SOPA Delegation - 1998
Prestige School, Indore - 7th June, 2017

Respected Principal Shri Prakash Choudhary, Prestige School, Indore and teachers.

Good Morning Friends,

I am really happy to be here at Prestige School.

Prestige is well known in the arena of Management Education, now also in Law, Commerce, Engineering, Mass Communication and various other fields. Looking at Prestige School teachers bright and eager faces, I am sure that Prestige’s commitment to quality education and overall academic environment will nurture and accomplished world class professionals.

School Education is an area which offers huge potential and is the corner stone on which the future of our Nation depends. In this competitive world, our School student needs something extraordinary inputs of excellence.

HISTORICAL BACKGROUND PROFILE

Since 1977, that’s all most 40 years, I have been actively involved in International Business which we have initiated for Prestige Group of Industries which has been front ranking Agri-Business Conglomerate from Central India. At the young age of 19, I got involved in International Business. To say candidly, I learnt the nuances of International Business initially by practice. I consider myself more as a practitioner rather than a Professor, in spite of my doctoral and post-doctoral degrees. With my active role in heading the Industrial and business activities, not only for our own group of Industries but also representing the whole Soyabean Sector of India in the capacity of the Chairman of the Soyabean Processors Association of India popularly known as SOPA and such other Apex bodies connected to Oil Industry and Trade at the Apex level, I have been involved in setting up of new systems for promoting the trade, particularly India’s International Business on healthy and sound footings.

INVITED TO SHARE MY EXPERIENCES

I have been requested to share some of my experiences with you today. And I would like to emphasize that there are always fine intricacies involved conducting the business at State, National and International levels, which need to be dealt with great diligence. I am addressing before you all for sharing my experience as a manufacturer-exporter of an important agri crop product like Soyabean Meal.

I would like to tell you about a crisis situation which the industry and country faced in 1997-1998, which cast a gloom over our regular exports and threatened the long term prospects in our niche markets spread throughout East Asia.

Before that let me begin with the year 1977 when we had just started the first Prestige Enterprise. With experience and wisdom of the Founding Chairman of the Prestige Group, Dr. N.N. Jain, we could strike some Export deals at a very early age of our business. Right In the year 1978, we got a break through with our exports to the Middle Eastern countries. Later, when we saw the East Asian economies begin to boom, we systematically created our foot prints and marks forging sound relationships with trading partners there. We practically performed in every Asian region which I think has given us enormous knowledge and experience dealings with the culture, the demography and systems as prevalent differently from country to country, region to region. With our innate interest we tried to understand the needs and requirements of the buyers in each country, their trading preferences and tried to develop models which culminated into tangible business and I would say, developing this into bigger volumes year after year. In fact, the language is also one of the key elements to deal in every country so there is a need either to employ a local person who could look after our interests, communicate on day to day basis with customers and service those markets very effectively because every day brings new opportunities and possibilities of Business. We also face competition emanating from various other countries and need to strategize to effectively clinch the business in our favour.

We would often meet the top Industrial and Trade Houses in South East Asia, particularly those involved in Agri-Business so to promote and supply our own Prestige brand of Agricultural products and commodities. Our company has always enjoyed the reputation for servicing the International buyers with quality products and fair trade practices which led to continuous growth of our own business year after year.

The spot light is on the unique leadership traits displayed by first generation technocrat entrepreneur Dr. N.N. Jain. Initially, in a span of 30 years, he imbibed in depth all round experience of managing an agro-based industry involving technology men, materials and money management.

With this background, he ventured to start his own industry picking up the miracle Soybean – one of the oldest protein rich oilseeds known to mankind. He played a pioneering role in opening doors for export of Soymeal to Global destinations.

With his visionary approach, thoughtful ingenuity and flair for management, he made his mark as one of the founding fathers of the Golden Soybean Revolution. In course of time oilseeds industry honoured him as the living legend of Soyabean Industry.

His innovative spirit and organizational creativity came in full bloom when he was Chairman, SOPA and the “Sunrise Industry” was suddenly face to face with a grave existential crisis in 1986.

SOPA DELEGATION – 1998

The lapse of December 1997 – February 1998 proved to be a dreadful time for Indian economy as the harvested crop, being transported to countries- China, Japan, South Korea and Philippines was badly stained due to weather conditions. As a result of which countries have to suffer a lot.

So to resume confidence of importers, a nine member delegation of soybean processors and Soymeal exporters visited these countries, as representatives of Indian soybean industries and export segment

“Not everything that is faced can be changed. But nothing can be changed until it is faced.”– JAMES BALDWIN

OBJECTIVE OF THE VISIT

Assess the repercussion of certain cargoes received by the importers during December 1997 – February 1998 in partially damaged condition, showing change in colour.

Assess marketability of Indian soybean meal from the coming new crop in the face of large carryover stocks in South America and the second record bumper crop in a row in USA.

“Let us take more responsibility, not only for ourselves and our families but for our communities and our countries” – BILL CLINTON

JAPAN

Meeting held with:- JAPAN Feed Trade Association and ZENNOH, the supreme body controlling all agricultural cooperatives in Japan.

Problems:-

During the voyage partial damage, including the change in colour and old vessels having no proper ventilation facilities stained the cargo.

Details:-

Meeting held with surveyors such as OMIC to work out system of inspection, which would protect the interest of both buyers and sellers.
Many of the plants being modified, inspection procedures had also been
Major processors made changes in their plants for increasing the capacity to reduce moisture during processing.

“Take time to deliberate, but when the time for action has arrived, stop thinking and go in.”– NAPOLEON BONAPART

SOUTH KOREA

Meeting held with:- National Livestock Co-operation Federation and Korea Feed Association.

Problems:-

Members of association have suffered losses due to poor quality of soy-meal received from India.

One member of KFA had visited India for inspection but the vessel also had major problems. Only the top 2000 mt had been seen by him and while this was satisfactory the cargo below was damaged.

Details:-

In meeting issue of inspection at destination was suggested.
Drawl of samples at discharge port was also taken as option.
Analysis at any internationally approved GAFTA laboratory is to be done.
Indian share in export to S. Korea sharply declined due to imports from USA.
Indian prices must be attractive for S. Korea to buy again from India, provided other issues are also resolved.

“Know how to listen and you will profit from the person even from those who talk shoddily”– PLUTARCH

CHINA

Meeting held with:- China National Native Produce and Animal By-products Imp & Exp Corp., the China Feed Industry Development Corp. , The CCPIT Commercial Sub-council, The China State Farm Industries Corporation etc.

Problem:-

Buyers made claims to suppliers for the losses and some of the cases were likely to go to arbitration.

Limited sales of Indian meal, as a result of problems faced the buyers.

Details:-

Here again the issue of inspection came at destination by CCIB. Even an alternate to this has been suggested that CCIB representative be sent to India at sellers cost and all loading and inspection could be done in his presence.

“The best way to destroy a enemy is to make him a friend” – ABRAHIM LINCOLN

PHILIPPINES

Meeting held with:- Feed mills and Associations of Philippines.

Problems:-

Buyers suffered from heavy losses because of poor quality of Indian meals.
Sellers didn’t even settled their claims.
Substitute to Indian meal is easy to get and substantial discounts are also given by US exporters.

Details:-

Some vessels have been traded but Indian meal is facing a shutout. The situation will improve, if the cargoes will be acceptable. Overall Indian meals are facing downfall.

“Determine that the thing can and shall be done, and then we shall find the way”– ABRAHIM LINCOLN

EXPERIENCES REGARDING THE ISSUE

At beginning when issue aroused the conflict was very hard, as exporters were not agreed to go for meeting with importers. But as its been said – “ the harder the conflict, the more glorious the triumph.
The task was to convince Korean’s, who were infact sitting on fire. Here skillful communication resulted in miracle for Indian exporters as they were about to being black-list us.
“Don’t be afraid of oppositions. Remember a kite rises against; not with; the wind” this thought helped in case of Philippines.
“We should not give up and we should not allow the problem to defeat us.” proved right after the delegation came back, in few weeks sizable import orders were received.

“The man who acquires the ability to take full possession of his own mind may take possession of anything else to which he is justly entitled.”

EFFORTS BY INDIVIDUALS AND SOPA

Additional dryers and coolers have been installed in the soyabean processing solvent extraction plants to lower the excess moisture content in the meal.
The soybean processing plants equipped with modern laboratory for testing moisture, protein, fiber etc. including N.I.R. analyzers.
All exported cargoes are duly surveyed, sampled, analyzed and certified for weight and quality at the load port by internationally recognized surveyors such as SGS, GEO-CHEM, OMIC etc.
Assurance of best possible satisfaction in terms of reasonable prices, right quality, and timely delivery.

“As our case is new, we must think and act anew.”– ABRAHIM LINCOLN

CONCLUSION

The visit to East Asian countries was successful in renewing interest and confidence of importers in India.
Communication is meeting of minds, so the visit does for India. It bridge the communication gap and created a positive dimension in our dealings.
It helped in standardizing uniform contracts, laying down of mutually satisfactory survey arrangements quality inspection and in a timely manner nature of competition from other origins.
Meeting with the major Soy meal importers & end users emerged as of crucial importance, which nipped the problem in the bud.
A delegation of importers from these countries has been invited to visit India for having a look on the processing facilities and quality control systems. This built their confidence in Indian exporters.

Handling of such crisis situation may not be found in your text books and even in case study materials.

The lesson for you all is that when you face a problem or a crisis handle it without delay with persuasive negotiations, appreciating the customer’s problems, clear misgivings and resolving them tactfully and imaginatively.

Always remember that today’s problem is not a part of your long term strength and standing in the market. The focus should therefore always be on not only retaining but further strengthening your credibility amongst your customers and end users.

“Anybody can forget what you said but can’t forget how you made them feel”– Carl

PRESENT CHALLENGES FOR WORLD, INDIA AND GST

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CONCLUSION

The visit to East Asian countries was successful in renewing interest and confidence of importers in India.
Communication is meeting of minds, so the visit does for India. It bridge the communication gap and created a positive dimension in our dealings.
It helped in standardizing uniform contracts, laying down of mutually satisfactory survey arrangements quality inspection and in a timely manner nature of competition from other origins.
Meeting with the major Soy meal importers & end users emerged as of crucial importance, which nipped the problem in the bud.
A delegation of importers from these countries has been invited to visit India for having a look on the processing facilities and quality control systems. This built their confidence in Indian exporters.

Handling of such crisis situation may not be found in your text books and even in case study materials.

“Anybody can forget what you said but can’t forget how you made them feel”– Carl

In this series of my address, let me tell you, education is the bridge whether technical education or formal education. No doubt, Technical education important to groom as a School student, but at the same time a bird’s eye-view is a must to ascertain and apply the knowledge to give it possibility, scope and dignity. Formal education and its practical application are complementary and supplementary to each other. In this competitive and challenging world, a perfect mélange of the two is desired to carve you out as a competent professional. All these efforts will set India on the path of good governance parallel with accelerated process of development.

To sum up with Theodore Levitt has observed aptly: “Creativity is thinking up new things. Innovation is doing these new things.”