Success Formula Ronnie Screwvala, Md, Disney UTV

 'With inspiration, you can do the impossible'

First generation entrepreneur Ronnie Screwvala is a pioneer in the television, entertainment and gaming industry. Screwvala, managing director, Disney UTV, and founder trustee, Swades Foundation, spoke on various aspects of leadership. Excerpts:

How do you define a leader? What are the most important traits of a leader?

A leader has to lead from the front, and lead by example. Most importantly, a great leader must build credibility and trust all around – with colleagues, customers and the public at large. Integrity of thought and word cannot be relegated to second place at any cost. It is also important to inspire, as with inspiration, you can get colleagues and others to turn the impossible into the possible. This is particularly true in times of crisis as at such times, everyone looks up to the leader for answers and solutions.

Can leadership be learnt? In other words, how can a manager become a leader?
Leadership has to come from within, and, if you look at yourself as a manager, then chances are that you may not emerge as a leader. It has to come naturally, instinctively and needs to be embedded in the DNA of the leader. In some ways you can “learn” or “train” leadership qualities and how to take
charge, but, in my View, real leadership in areas such as entrepreneurship is more of a natural process.

What is the role of a professional leader in a promoter-driven company?
I think a lot is being made, incorrectly, of this “professional” versus “promoter” debate. This argument sometimes creates the impression that founders and promoters can never be professionals. I think an optimal combination of a professional leading and a promoter heading an organisation can inject dynamism into it. The promoter brings on the table his risk taking ability, pioneering spirit and quick decision-making, backed by action. A professional leader can add to this with sharp execution plans and skills, an unwavering focus on deliverables, in-depth research and a thorough understanding of the consumer and the rigour of a strong review process.

Since Septr 2008, the world has fallen into a maelstrom of serial crises. What is the role of a leader in these times?
Part of the reason why the world fell into this maelstrom is that a small minority of heads of companies thought they were great leaders and let their perceptions overtake reality. These leaders closed themselves to feedback on ground realities. These are traits every leader should consciously avoid, for these are the precise reasons that cause leaders to fall off the cliff.

Leaders often carry the cross of other’s wrong doings and inefficiencies. Take the global banking sector today, for instance. What role can good leadership play to counter balance this image?
Leadership is very individualistic and cannot be generalised. A leader has to be viewed as a distinct entity and cannot make up for the inefficiencies of others. Actually, in each industry, one will see some clear leaders who stand out clearly, demonstrating that it is as much about the individual himself as much it is for the specific sector. Stay the course in your own belief and performance, and that will be noticed and respected.

Who are the leaders that have inspired you?
More than individuals or personalities, there are certain situations that have inspired me. For instance, the 26/11 terrorist attacks in Mumbai, which held out great lessons in leadership. To see the entire management and staff, irrespective of seniority, thinking of every client in the hotel as a guest even at a time of such a grave emergency, was a remarkable lesson on ownership, commitment and pride in your work. This is a direct reflection of great leadership – of leading from the front, of credibility and of standing by your beliefs at all times.

What is worst decision you have taken as a leader?
Not taking a hard call to pull the plug on something even when all the signs I pointed otherwise and not knowing at that moment that it’s wiser to cut your losses and walk. This inability to take a tough call when needed can lead to some of the worst decisions.

What is the best decision that you have taken as a leader?
Staying the course clearly is not only one of the most important aspects of a leader, but also the
hallmark of a resilient organisation. Resilience is the key to long term success and to being a
great leader. Also, it is imperative not to give up when failure knocks, as it will many a time.

Ronnie pads up for his second innings

The Disney India MD will use his private wealth to build scale and brands in agriculture, health care and education.

Rohinton (better known as Ronnie) Screwvala is on a high these days. Even as a Google app on his mobile phone frequently takes him to a few districts in Maharashtra where his “dream project” is taking shape, the 56-year-old says the second innings of his life is like going back to his entrepreneurial roots. 

 

But there is a vital difference. When he started his entrepreneurial journey over 30 years ago with a cable service venture called Network, his bank balance was virtually zero. This time around, he is resuming the journey with a neat cash pile of 900 crore the money he got after selling 19 per cent stake in UTV Software Communications to Walt Disney last year. Screwvala continues to be the MD of Disney India. So, what is his dream project like? Screwvala hastens to say-it has nothing to do with media & entertainment, something he has been involved with for 30 years and an area too crowded already. This time, he has chosen agriculture, health care and education.

He has done two things. First, he has launched a private equity fund (Unilazer Ventures) with a corpus of 800-400 crore, which would provide seed capital to companies in these areas. “I want to look at scale, build brands and change the perception about these three sensational areas,” he says.

To begin with, the company has already invested about 20 crore in INI Farms, involved in pomegranate plantations on over 1,000 acres across Maharashtra and Madhya Pradesh. The project involves doubling productivity and increasing the export content from 40 per cent of the total production now to over 70 per cent with the help of modern farming and post-harvest technologies. The idea is to create a pomegranate brand.

“There are huge opportunities in agriculture and health care. Nobody has positioned these sectors as an exciting opportunity when it comes to business, even though» the margins are as high as 45-70 per cent. If two or three people start glamorising the industry over the next two-three years, we’ll be able to look at scale and brand building for such sectors," he adds.

Screwvala is also looking at opportunities in rural health care, a sunshine industry that remains neglected. ‘‘That‘s the opportunity. Chances are you are going to be the only guy in this business. It’s true there is a shortage of qualified doctors, but basic amenities in health care like pathology labs don’t need MBBS doctors,” he says.

The second part of his dream project, for which he has himself committed 250 crore over the next five years, is even more ambitious. His foundation called Share, has finalised a blueprint to “improve the livelihood and empower people” in seven villages of Maharashtra, covering a million people across eight talukas and five districts.

“Our idea is not to donate money but to help the villagers become independent enough to earn their livelihood. We want to have an exit strategy where we help them for the first two years by giving them enough push. Then, they take it over themselves,” he adds.

Screwvala is now looking to raise another 250 crore from other donors. “If I could hold roadshows for UTV during its IPO, I think I can do it for a good cause as well. We need to have a corporate mindset in social responsibility kind of work,” he says.