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The Interview
Business transformation
Mehta Group’s Chairman Jay Mehta on why people should be at the heart of any business transformation
Since taking over as Chairman of Mehta Group, Jay Mehta has successfully turned the family-owned business around, steering it from the brink of insolvency to becoming a profitable multi-activity enterprise....
Since taking over as Chairman of Mehta Group, Jay Mehta has successfully turned the family-owned business around, steering it from the brink of insolvency to becoming a profitable multi-activity enterprise. Today, the conglomerate spans four continents and has business interests ranging from cement and building materials to trade and financial services.
Additionally, Mehta’s keen interest in cricket also led to his co-ownership of the Indian Premier League team Kolkata Knight Riders. In this exclusive interview, Misiek Piskorski, Dean of Asia and Oceania at IMD uncovers the principles and philosophy that helped Mehta spot and seize the opportunities that enabled Mehta Group’s transformation.
India is on the cusp of massive economic growth, and in about three to four years, poised to become the third-largest economy in the world. What do you see as the largest opportunity associated with this growth, and do you see any business models taking advantage of this growth?
With India’s economy doubling in size, many new opportunities are certain to emerge. However, the biggest opportunity and impact by far to me is the uplifting of the underprivileged, especially given the accelerated development that echoes the growth rates we will see, which will hopefully spread wealth across the country.
Many companies are beginning to invest in India and expanding their manufacturing arm beyond one location, which I think spells great opportunity for India in the future.- Jay Mehta
Something that is already apparent is how India is increasingly seen as an alternative to China. Many companies are beginning to invest in India in parallel and expanding their manufacturing arm beyond one location, which I think spells great opportunity for India in the future. India also boasts valuable skill sets in IT, which will undoubtedly spur huge opportunities in the technology and AI sectors.
Do you see any potential blockers getting in the way of capitalizing on this growth?
Firstly, there are considerations related to politics. The current government has done a great job in ensuring that every segment of society has seen an uplift, and the momentum around these policies has picked up in such a way that this will continue even with a change in leadership.
Second are environmental concerns, which I think could bring about huge issues. India’s target for carbon neutrality is 2070 whereas the rest of the world has a 2050 goal. I’m hoping that we can accelerate efforts in this area and catch up with the rest of the world, not just because it could discourage companies from investing in the country but also because we need to be able to provide quality-of-life factors like clean water to sustain our huge growing population.
Something we’re seeing is that India’s growth is not coming only from one sector but is driven by innovation in multiple sectors. What is a key transformation lever you’re seeing in Indian companies, and do you think there is enough support for leaders driving these transformations?
A key transformation lever is people – many organizations are bringing younger talent in, changing the organizational culture to enable them to experiment, because they have the necessary skill sets, such as in data and AI. We have a large group of young, educated talent who are tech-savvy and constantly improving their skills.
“The biggest opportunity and impact by far to me is the uplifting of the underprivileged.”- Jay Mehta
To continue amplifying these development opportunities, we need more formal tertiary institutions, including management schools, which will bring a different dimension to education in India. While the penetration of mobile phones and digital devices has spurred online learning, there is no substitute for a physical campus and the in-person experience. The government has recently allowed more universities abroad to set up campuses in India, which will hopefully further develop the talent we need to drive these transformations and growth.
Looking back at your career, what do you think were the key principles that drove your transformation as a leader?
When I completed my MBA with IMD in Lausanne and returned to India in 1991, I inherited two cement companies which were almost in Chapter 11. Having lived abroad before that, it was a long and tough journey reviving them – I probably didn’t even have the language skills to communicate with bureaucrats and convince people to support us in turning the businesses around. We finally became debt-free in 2015, and a big part of the strategy to get there was about changing the culture of the company to improve our brand image, and to attract the best people with the right skills. Once we succeeded in hiring great people, it helped us to turn things around. As the market improved, we restructured the business and invested in new technologies for future growth. As they were part of our family business set up by my grandfather, I didn’t want them to fail. That was my main driving force in turning the business around.
In some ways, this is an important leadership lesson, to have the audacity to believe that you will succeed even when you’re surrounded by naysayers. What advice would you give to someone facing a similar situation?
You have to build a great team and hire the best people. At the same time, it’s also important to keep yourself ahead of the curve when it comes to industry trends and business knowledge, so stay curious, read widely, and learn more. More importantly, seize opportunities that come your way. While going through the difficult years with the company, I had an opportunity to invest in cricket, which everyone thought was crazy, but I believed in it. I trusted my instincts, but beyond that, had studied the business model and believed it would turn around, so I took the plunge and invested in it, and it has probably turned out to be the best investment I have ever made.
Jay Mehta spoke with Misiek Piskorski at the inaugural India Management Transformation Forum held in Mumbai in June. If you would like to be invited to similar events in the future and meet leaders like Mehta, register your interest here.
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