We talked about the Indian business scenario and many such things related to it. During the talks, he told me about the poor scope of business development, especially in those areas concerning with the processed food industry. The discussion pin pointed to the case of the tomato ketchup industry and about the failure of the case of a ketchup factory set up in Central India by a business group with much fanfare and its eventual failure. His point was that the processed food industry such as this, though had been successful in the western countries, was not so in India.
When he concluded I asked him a different question. I asked him the strength of employees in his factory and the highest pay that he was paying to his highly paid employee. There were nearly 1000 people working for him and the highest paid were only a few and they got something around Rs.10,000/- per month. No doubt, his employees were getting more than what specified by the government as minimum wages and they were a satisfied lot. But he as the owner made a neat profit of over ten thousand times that of the highest paid one got ! I told him that his employees were in fact 1000 consumers who could potentially consume processed food items like glucose and tomato ketchup but unfortunately their incomes are so low that they do not have any extra margin incomes to indulge in such small luxuries. Whatever money they got is just sufficient to meet their essential needs !
I told him a scenario like this instead. What could have been the situation if he could have distributed, say 25 % of the yearly profits among his employees ? That would be an average Rs.25000 /- per employee per year and that would amount to Rs.25,000,000/- in an year extra in the hands of his employees that would get pumped in to the consuming markets immediately. Perhaps that would turn hands at least 20 times in an year making the total money in the market at a whopping Rs. 500,000,000/-
And that would make the market potential swell so that business men like him would be able to grab it back with their business acumen ! Imagine the government grabbing a neat percentage of that as the taxes !
Imagine the potential when the thousands of businessmen like him in India would do the same ! Then millions of extra house holds would be in a position to buy tomato ketchup, glucose products and such other things which otherwise they would not dare !
It is the simple trick of creating the markets ! It is the trick of mentoring the markets to grow for your own benefits ! It is the trick of inclusive growth !
When I explained this to him, for quite some time he was speechless ! Finally he said: 'Sir, I think you told me some thing that I haven't cared to think so far !'
Though he insisted that we should meet again in future, I could not meet him later. I also do not know whether he made any changes in his business outlooks later !
The point I wanted to make here is simple : Most Indian business men, though shrewd, are misers of the highest order when it comes to sharing of their profits with their employees and shareholders. Even those in the government are also not better when things like giving out come for consideration.
Many of them fear that a proliferation of affluent people in the country would make things worse for them ! Of course it is a baseless fear !
Money accumulation in the hands of a few people are not going to make a prosperous state. Let it happen for motivational purposes. But at the same time, it should not be by depriving the majority. A system where business profits are shared to a large number of people would ensure a society with more people with higher purchasing power. A society where the purchasing power of people are high would grow faster !
It is all about creating more and more economic activities. More economic activities means more employment and more opportunities for innovation and development.
Wake up Indian business men !
There is nothing you would gain by accumulating wealth for yourself ! There is no guarantee that your accumulated wealth would be of any gain to your descendants ! Accumulated wealth in a deprived society is potential danger !
But there is much for you and your descendants to gain if you voluntarily share a portion of your accumulated wealth with the people who associated with you to make your profits !
Every extra rupee that comes into the hands of more and more people is going to make the markets swell and the country richer !
This is just one aspect of spreading prosperity. Being in leadership position of wealth and power, you are also in a position to pull talents to perform much better. That is called mentoring !
For that you should learn the art of developing organizations built up on compassion, empathy and of course character and not organizations built up over inhuman robotic mechanisms !
If you learn these things, there is nothing that can stop this country from becoming another USA or Japan !
If you do not adopt these, your success would be short lived even when you have billions in your accounts !
Should I tell more about the reasons of failure of the Indian businessmen and the Indian society ? You may not publicly accept those failures if you sit there with your muscles tightened !
It is just a food for thought !
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