A face to face chat with M P Ramachandran, the founder and CMD of Jyothy Laboratories
Words: Rochelle D’Souza Images: FWD Media
Moothedath Panjan Ramachandran would have been just another accountant cowering behind mountains of files and papers, crunching numbers day and night if it wasn’t for his ardent curiosity and his obsession with ensuring that his white clothes were always immaculately white.
Working as an accountant while completing his post-graduation in financial management in Mumbai back in 1971, Ramachandran’s constant dissatisfaction with the results he got from the fabric whiteners of yesteryear added with his affinity and keen interest in chemistry led him to experiment in his kitchen –boiling, diluting and testing– all in vain, until the day he got his hands on a chemical industry journal that stated – ‘purple-coloured dyes helping textile makers achieve the most brilliant shades of white.’ – A year of further experimentation later, Ramachandran set out to create a makeshift factory with a sum of Rs.5000 which his brother lent him, on a plot of family land in Thrissur. Three decades laterpristine white clothes gleam on the washing line and the whitener he cooked up in his kitchen went on to become the cornerstone of every Indian household and a god-send to men and women across the country – Ujala.
His factory, Jyothy labs, named after his first daughter,which received a net profit of around Rs.1265in its first year has today grown into a multibrand company enjoying 80% of the national market share in the liquid fabric category with annual turnover of turnover of ₹15 billion.
FWD Business sits down with the man who turned the simple urge of wanting to keep his clothes perfectly white into a multibillion dollar empire. In conversation with M P Ramachandran:
Tell us about Ujala’s journey from 1983 till date?
It took two years of research to create a fabric whitener in place of the then powder blue category. I managed to come up with a unique formula based product which was designed for 100% dissolution in water at room temperature and that which could be absorbed to the innermost fibres of the fabric resulting in the most brilliant whiteness. Customers were highly satisfied because the products available back then were not soluble in water. Till 1997 the market expanded in South India and in 1997 we had a reach across India. Today, in the liquid fabric category, Ujala enjoys just below 80% of the national market share.
We then entered into new categories in the FMCG sector like mosquito repellents, detergents and a new molecule developed for enhancing the feel and colour of fabrics called Crisp & Shine, as well as dish wash products both in powder and cake form and air care products too.
Having laid the foundations for an all-encompassing distribution setup which could take on any brand and product, we decided to move to our next milestone of acquiring Henkel Ltd, a German company. Looking back over the years the company has grown in leaps and bounds.
‘Aayanaya Ujala..Char bundhowala’ the jingle has literally been imprinted in the minds and hearts of people. This ad set the bar in terms of ensuringbrand identity and product recall. How do you think Jyothi grew to be the most recognized FMCG company?
‘Aayanaya Ujala…’ It was a very rhythmic and grabbed everybody’s attention. The subsequent messages were very clear about the deliverables of the product. This was created in 1997 when we entered that all-India. The entire ad with its balance of lyrical product description, catchy rhythm and tune and the availability and accessibility of the product in the market helped in creating and sustaining brand recall among our customers. According to the Economic Times Brand Equity Survey, Ujala was the most quickly recalled brand.
Your daughter Jyothy has contributed immensely to the growth of of the company, tell us about her involvement and initiatives in bettering and re-positioning the brand?
Yes, Jyothi has contributed immensely to the growth of JLL with her aptitude and advanced education, which has helped in moulding her as a specialist in brand creation. She has an MBA in Marketing was well as an MBA in Family Business Management and is an alumni of Harvard University. Her insight into the ever-changing consumer aspirations has led to new product development in the existing categories.
You once stated that Jyothy Lab’s success lay in the making common man’s life better. What are the strategies you adopted to ensure your brand was always up to the mark?
We are first consumers ourselves and for our business needs it is imperative that we scan through the minds of our potential customers. Consumers are never satisfied with the products or services of yesterday for his utilization today or tomorrow. He is on the constant search for something better and for products that satiate his ever changing needs. Jyothi has an excellent R&D set for developing new products as well as for bettering the existing products in our line.
How has the acquisition of Henkel India helped your company?
The acquisition of Henkel was a smart move because they had the advanced technologies that were yet to make their way into the Indian market. Henkel also had some recognized and trusted brands under its belt like Pril and Henko which were widely popular in the urban markets. The inorganic growth doubled our turnover almost instantly and it helped with the growth of our market capitalization.
Tell us about your future projects, expansion plans. Are you looking to acquire anymore companies or launch new products?
Three factories are being opened before 31st March 2017 in Assam and in the next financial year 3 more factories (one in MP and the others in Silvassa) are in the process of being set up. We are also in the process of developing new products with a clear differentiation and schedule which will be launched in the near future. Meanwhile, we are always on the lookout for inorganic growth through acquisitions.
Meet the Ullas Kamath – the man continuing to spearhead the Ujala success
Ullas Kamath plays a key role in leading the turnaround of Jyothy laboratories. He currently works as the Managing Director & Chief Financial Officer. It is under his leadership that the company has diversified and become a multiproduct FMCG company. He was instrumental in successfully setting up of Fabric Spa and the Henkel acquisition. He is responsible for business development, new projects, sales, financial management and supervision of day-to-day operations of Jyothy Laboratories. Qualified as a Chartered Accountant and Company Secretary, he owns a Degree in Law and has attended the Advanced Management Programme at Wharton Business School and Harvard Business School. He joined Jyothy Laboratories in 1991. He is instrumental in taking the company to the level it is at today – with a turnover of Rs. 1,500 crore and a market capitalization of Rs. 5,000 crore. He was also responsible for taking over Henkel, a company that was running in loss and turning it around in three years. Besides his significant contributions for the upliftment of the company, he is also a driving force behind Jyothy Laboratories latest initiative in organised laundry services.
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