Weekend Economy and Markets Reading - Wadia Group Chairman

Economy & Markets - Nusli Wadia; Wadia Group Chairman 

Source: Business Standard 

I missed the bus because I didn't manipulate the system

On succession plans: No succession plan has been firmed up as I have not applied my mind to this issue as of now. It will be put in place at the appropriate time. What is currently happening is that both my sons, Ness and Jeh, are rotating across companies to have a more robust understanding of the respective businesses.

Has Wadia Group clearly missed the bus: To some extent, yes, but thatⳠbecause I chose not to manipulate the system. God has given me more than I deserve. I want to sleep peacefully at night. I donⴠwant a private jet and I donⴠhave the driving ambition to be the richest man. I want to live by a set of values that is integral to anything that we do.

On FDI in retail: More than policies, it is about good and efficient governance -- where there is clear accountability for results. Take, for example, FDI in retail. It is a non-issue. India is a country of shopkeepers. We already have a fantastic distribution system, which is convenient for the Indian consumer as there is a small shop in almost every nook and corner. Multinationals will come as it suits them.

Will Go Air look at a foreign partner? We are certainly exploring but the objective is not just to raise money. We are looking for a partner who can add value, and bring knowledge to the table so that the alliance is beneficial to both. If GoAir partners another airline, it will be done to provide convenience and efficient connectivity to our customers in India and those who travel to India from overseas and want domestic connectivity.

Plans for GoAir: Our focus has been to first establish our brand and the business model and then pursue growth. Our fleet is young and by 2019 we will have 75 to 80 Airbus Neos, which burn 10% less fuel. But I must add the Indian aviation industry is facing an unlevel playing field. We pay twice as much for fuel compared with the rest of the world and we are at the mercy of 3 fuel companies. Travelling by air is not a luxury any longer but a necessity. Look at the opportunity we have. Just one airline, Ryan Air, flies more passengers than the entire Indian aviation industry put together. Our fares are lower than Europe but with double the fuel cost.

On Britannia: There is absolutely no question of getting an investor in Britannia. What we are doing in Britannia is strengthening our brands and strengthening the supply chain for those brands. Take manufacturing, for instance. In a few years, we will control 65-70% of our own production by setting up greenfield units and taking equity in our partner production companies. We looked at several food companies in the past and chose not to go ahead as we want M&As to add value. The important question is whether an acquisition is accretive to the return on investment and not merely an addition to turnover.