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Chronicles Monthly Newsletter | Volume 6 | Issue 3 | March 2021
CONTENTS 03
WHAT IS MENTAL HEALTH? According to the WHO, approximately 55 million people in India are suffering from depression. It is estimated that the mental health crisis is going to cost India $1 Trillion in lost productivity
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DEFYING THE ODDS KIRAN MAZUMDAR SHAW She is the chairperson and managing director of Biocon Limited, a biotechnology company based in Bangalore, India, and the former chairperson of the Indian Institute of Management, Bangalore.
10 I N D R A
NOOYI- BREAKER OF GLASS CEILING Leadership in the corporate world has always been dominated by males, however, Indra Nooyi shattered the glass ceiling and led one of the largest companies on this Earth with excellence, and in the process inspired many.
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THE NYKAA NAYAR STORY Nykaa was founded in 2012 by Falguni Nayar, the former managing director of Kotak Mahindra Capital Company. She got the motive of initiating Nykaa when she walked into a Sephora Store.
WRITERS Shikha | Prince Gada | Shubham Bhandari | Prasoon Gupta | Riya Shah |
SENIOR DESIGN TEAM Ayush Goyal | Jeet Doshi | Pushpak Holani | Shikhar Gupta |
JUNIOR DESIGN TEAM Nilesh Agarwal | Prachi Sharma | Prashant Sihag | Shivani Kunkolienkar | Sneha Patel |
EDITING TEAM Abhishek Wakode
What is Mental Health?
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Shubham Bhandari MBA RM
March , 2021
The WHO (World Health Organization) states that mental health is more than just the absence of mental disorders or disabilities; they define it as “a state of well-being in which an individual realizes his or her own abilities, can cope with the normal stresses of life, can work productively and is able to make a contribution to his or her community.” Corey L M Keyes, an American sociologist, and psychologist identifies three components of mental health: emotional well-being: happiness, interest in life, and satisfaction; psychological well-being: liking most parts of one's own personality, being good at managing the responsibilities of daily life, having good relationships with others, and being satisfied with one's own life; and social well-being: positive functioning involving social contribution (having something to contribute to society), social integration (feeling part of a community), social actualization (believing that society is becoming a better place for all people), social coherence (the way society works .
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makes sense). Issues: Students who are facing mental health problems do not want to receive treatment. The reasons among them are that these problems will get better automatically, stress is common in college, no free time and the most common reason is “What will other people think of me?” Mental Health isn’t given much attention and that is why it might be difficult for a student to talk about their mental health. It is important to ensure that students who may be at risk are provided with mental health disability resources and knowledge about accommodations they may need to succeed in school. It’s not just about students battling fierce competition it’s also about an adult working over 100 hours a week, a woman subject to domestic violence, mental health is as important and real as any other issue. Globally around 800000 people die every year by suicide, which is 1 in every 40 seconds and over 260 million March, 2021
people suffer from depression. According to the WHO, approximately 55 million people in India are suffering from depression. It becomes difficult for them to carry out their day-to-day activities. It is estimated that the mental health crisis is going to cost India $1 Trillion in lost productivity. Despite all of this, there are many care centers for people to get better. The mental health workforce has less than 4000 psychiatrists in the country. In 2020, the total budget of Healthcare facilities increased by 7%, yet there was no increase in the budget of the Nation's mental health program. What can you do to help? Although the general perception of mental illness has improved over the past decades, studies show that stigma against mental illness is still powerful, largely due to media stereotypes and lack of education, and that people tend to attach negative stigmas to mental health conditions at a far higher rate than to other diseases and disabilities, such as cancer, diabetes or heart disease. Stigma affects not only the number seeking treatment but also the number of resources available for proper treatment.Stigma and
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misinformation can feel like overwhelming obstacles for someone who is struggling with a mental health condition. Here a few powerful things you can do to help: Showing individuals respect and acceptance: Showing acceptance helps people to successfully cope with their illness. When people start acknowledging one as a normal individual and not a person with an illness, the person doesn’t feel different. Advocating within our circles of influence helps ensure these individuals have the same rights and opportunities as other members of your church, school and community. Learning more about mental health: Talking about mental health shouldn’t be as big a deal as it is. The student’s curriculum should include weekly or monthly sessions from a psychiatrist on How to cope with depression, stress etc.
March 2021
National Mental Health Program: To address the huge burden of mental disorders and the shortage of qualified professionals in the field of mental health, the Government of India has been implementing the National Mental Health Program (NMHP) since 1982.
To promote community participation in the mental health service development; and To enhance human resource in mental health sub-specialties. KIRAN, India's first national mental health helpline number, can be called at 1800-5990019.
Objectives To ensure the availability and accessibility of minimum mental healthcare for all in the foreseeable future; To encourage the application of mental health knowledge in general healthcare and in social development;
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March, 2021
Defying the Odds Kiran Mazumdar Shaw Retail Chronicles | Page 7
Prasoon Gupta- MBA RM
March, 2021
When we talk about women, we generally talk about their role as a Mother, Daughter, Wife, and Sister, but we talk very little about their role in the development and their leadership roles in the Corporate World. Today, women are creating milestones by swimming against the currents. But still, when it comes to leadership positions, there has been a huge difference in percentage w.r.t the number of women in top positions. Where around 47% of the total workforce in the USA is of women while only 34% of the total top positions are held by women. Kiran Mazumdar Shaw - Early Life and Studies: Kiran Mazumdar Shaw, the CoFounder, and CEO of Biocon is one of those who has set benchmarks defying all the odds and overcoming all the Retail Chronicles | Page 8
challenges giving inspiration to all the men and women. Born on March 23 in 1953 in Pune, Maharashtra, to a Gujarati Family, Kiran Mazumdar Shaw after graduating in 1968 from Bangalore University in the field of Zoology wanted to study in a medical college, but on the suggestion of her father, who was a Master Brewer at the United Breweries, pursued fermentation science from Melbourne University in Australia. It was quite an unusual field for women during those days and she was the only woman in her entire class. After getting her degree, she started working as a trainee maltster in Barrett Brothers and Burston, Australia but when she came to India to pursue her career as a Master Brewer, she was denied a job because of the perception that the master brewer was a man’s work, which forced her to look for job opportunities in Scotland. March, 2021
Before she could move to Scotland, she met Leslie Auchincloss, the founder of Biocon Biochemicals Limited, Ireland. Leslie was looking to partner with someone in India to supply her papain, Kiran Mazumdar Shaw grabbed this opportunity, which resulted in the formation of India’s Biggest Biotech Company.
on the discovery of novel enzymes and the development of novel techniques for solid substrate fermentation technology. By 1989, Biocon started to become profitable, and then Kiran decided to transform Biocon from an industrial enzymes manufacturing company to a Pharmaceutical Company, establishing its subsidiary named Syngene, whose today’s valuation exceeds the market cap of Rs. 14270 crores. In 2004, Kiran launched the IPO of Biocon, making Biocon the second company to cross the $1 Billion mark on its listing day, making her the richest woman in India.
Humble Beginnings: Kiran Mazumdar Shaw, on returning to India in 1978, rented a house in Bangalore and started Biocon India with a capital of just Rs.10000. Initially, she faced two problems - the first was getting funding for her business as people were hesitant to invest due to her being a young, woman and due to the new business model. And, the second was to get people to work for her as no one wished to work under a woman. She gained her first funding from an investment banker whom she met at a social event. Soon the operations were started with the extraction of papain and isinglass, and within a year, the company was able to export the products to the USA and Europe, becoming the first Indian Company to do so. In 1984, Kiran began to develop a research and development team at Biocon, focusing
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Kiran Mazumdar’s Vision: Mazumdar’s Vision towards Biocon has always been providing affordable drugs in poor and developing countries. She has been contributing to the betterment of society by providing diabetes medicines at an affordable rate. Also, during the pandemic, Biocon launched Itolizumab for treating critically ill covid patients. Through Biocon Foundation, Kiran Mazumdar Shaw has been able to provide healthcare facilities to the village areas of Karnataka. In 2015, she decided to dedicate half of her wealth towards Philanthropy work. She was awarded Padma Shree in 1989 and Padma Bhushan in 2005 for her work towards Biocon and Society.
March, 2021
Indra Nooyi: Breaker of glass ceiling Retail Chronicles | Page 10
SHIKHA CHAUHAN MBA C
March, 2021
A name synonymous with inspiration and always on the top of the lists of the most accomplished people, Indra Nooyi is one of the most powerful women in the world. She is the former CEO and chairperson of PepsiCo, now serves on board of Amazon and the International Cricket Council. Philips has proposed that she will join their board in May 2021.
She held product manager positions at Johnson & Johnson and textile firm Mettur Beardsell. While attending Yale School of Management, Nooyi completed her summer internship with Booz Allen Hamilton. In 1980, Nooyi joined the Boston Consulting Group as a strategy consultant, and then worked at Motorola as Vice President and Director of Corporate Strategy and Planning, followed by a stint at Asea Brown Boveri.
Life and career How she took Pepsi to new heights She was born in Chennai. She received her bachelor’s degrees in physics, chemistry and mathematics and a Post Graduate Programme Diploma from the Indian Institute of Management Calcutta in 1976. In 1978, Nooyi was admitted to Yale School of Management, and moved to the USA, where she earned a Master’s degree in Public and Private Management in 1980.
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During her 12 years running Pepsi, she increased the company’s top-line revenues while expanding its offerings to include healthier foods. At the same time, she fended off activist investors calling for higher short-term profits. Nooyi has directed the company's global strategy for more than a decade and led PepsiCo's restructuring, including the 1997 divestiture of Tricon, now known as
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PepsiCo since Gatorade was responsible for 80% of sports drink sales at the time. Similar to the Tropicana acquisition, this strategic move gave PepsiCo leverage against Coca-Cola, owner of Powerade – second in the sports drink segment. PepsiCo's annual net profit rose from $2.7 billion to $6.5 billion. Awards and recognition Yum! Brands. Tricon included companies like Pizza Hut, KFC, and Taco Bell under its umbrella. The financial gains from this spinoff allowed the company to increase the pace of its share buyback strategy, thereby giving it more leverage to pursue future acquisitions without as much shareholder backlash. Nooyi also took the lead in the acquisition of Tropicana in 1998 and the merger with Quaker Oats Company, which also brought Gatorade in 2001. The $3.3 billion acquisition of Tropicana initially faced opposition from other PepsiCo executives and Wall Street critics. Acquiring Tropicana allowed PepsiCo to gain a competitive edge; Tropicana at the time captured 44% of the chilled orange juice segment, the fastest growing segment of the juice market, an especially positive metric when compared to Coca-Cola's Minute Maid which captured less than half of Tropicana's market share. The Quaker Oats Company's ownership of Gatorade was a positive strategic move for
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Forbes magazine has ranked Nooyi on the 2008 through 2017 lists of The World’s 100 Most Powerful Women. Fortune magazine has named Nooyi number one on its annual ranking of Most powerful women in business from 2006 till 2010. She was elected chairwoman of the US-India Business Council and was named one of America’s Best Leaders by US News & World Report in 2008.
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In 2013, Nooyi was named one of the "25 Greatest Global Living Legends" by NDTV. On 14 December 2013, she was awarded Padma Bhushan by the President of India Pranab Mukherjee at the Rashtrapati Bhavan. The White House reportedly considered Ms. Nooyi to be World Bank president in 2019, but she did not wind up with the job. In 2021, Nooyi was inducted into the National Women's Hall of Fame. accepted for what they are. There have been infinite examples, inspirational and success stories to show us that talent and hard work has nothing to do with gender. The society needs to understand that the women are more than just the flesh, she deserves to be respected and not sympathized.
We hear a lot about women development and women empowerment, but rarely we see these things being materialized. Even with the non-conducive atmosphere, Women are breaking the stereotypes and changing the common perception on the aspects which people generalize it as not their cup of tea. Women empowerment Unless we realize this, the saying of – begins from the point when they are Every day is a women's day would be acknowledged, appreciated and nothing more than an IRONY!
Leadership is hard to define and good leadership even harder. But if you can get people to follow you to the ends of the Earth, you are a great leader. - INDRA NOOYI Retail Chronicles | Page 13
March, 2021
THE NYKAA NAYAR STORY
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RIYA SHAH MBA-B
March, 2021
The future is female, and the future is here. Revolutionizing the beauty industry via technology, product curation, and catalogue, Nykaa’s founder and CEO Falguni Nayar isn’t simply a woman in business, but instead where the business is. Starting off in 2012 as an e-commerce platform to currently possessing multiple businesses under its name, Nykaa has become synonymous with beauty products in India. A quick CEO biography Notable entrepreneur Falguni Nayar is an alum of the Indian Institute of Management, Ahmedabad, specializing in finance. Post that, she worked in the area of banking for nearly 20 years as a venture investor and merchant with Kotak Mahindra. She announced her departure from her role as Managing Director in 2012 to start off with Nykaa. 2012 to 2021 Start-up! - With the idea to capitalise on the beauty and skincare products online, Falguni Nayar arrived at Nykaa’s creation. She launched her e-commerce store, Nykaa.com, upon identifying the need for a multi-brand retail platform that gave customers unbiased advice on what products to use. Retail Chronicles | Page 15
The name ‘Nykaa’ itself arrives from the Sanskrit ‘Nayaka’, which means to be the one in the spotlight. With the idea to celebrate the journey to discover one’s unique identity and personal style, the company has strived to set a benchmark in quality products. By sourcing products directly from authorised distributors, it built for itself a reputation of authenticity in the market. This helped them gain customer confidence and eventually achieve higher sales. At present, Nykaa has turned into India’s largest omnichannel beauty destination. The estore today retails over a thousand brands ranging from big luxury houses such as Clinique and Bobbi Brown online to niche and cult favourites to affordable, high-quality brands. Moving forward, they built their independent label brands – Nykaa Cosmetics, Nykaa Naturals, and Kay Beauty. Their most recent venture is Nykaa Fashion which aims to become a lifestyle destination for their customers.
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Hurdles - This entrepreneurial journey has been far from smooth. The current scenario of investment banks seeking to list Nykaa results from countless impediments that surmounted its almost a decade-old story. Despite being a banker, fund-raising did not come easy. Three chief technology officers quit in the first four years. Competition only increased. Nonetheless, she navigated the world of beauty, tech, and retail and thereby improving her learning curve.
What awaits – The next big thing Nykaa is prepping for is its IPO which has expectations of increasing its valuation to $3 billion. But that’s not it. With the latest funding rounds, Falguni Nayar is likely to propel into the billionaire ranks making her India’s second-richest self-made woman billionaire. As for Nykaa, with the pandemicled digital acceleration and growth of the personal care segment, its performance is expected to be on the rise.
Let’s talk numbers - Since its foundation in 2012, Nykaa’s business model has witnessed many changes. The beauty retailer sells 400+ brands and offers more than 700,000 products. It has raised around $70 million in primary funding from marquee investors and counts Fidelity Management and private equity firm TPG Growth Capital among its investors.
Final takeaway – The entrepreneurial journey of Falguni Nayar and Nykaa reiterates two key learnings. The development of attainable and valuable ideas is not only about out-of-box thinking but also standing tough in the face of adversity. While risk-taking is inherent in the business, exercising prudence is just as crucial. To put it as she did – “Think big but start small!”
The pandemic-imposed restrictions led to a sales surge and the company reported a 40% rise in revenue, up from $247 million on March 20. This business venture that started from $2 million in seed capital from family savings is currently valued at $1.2 billion, earning the prestigious label of a unicorn startup.
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