Page 25 - 10 Most Influencive Leaders of Agriculture 2019

curve at any time. That is very goal being to become one of the
satisfying.”
Balram admits taking over the role
of Managing Director was neither
a smooth nor normal transition. It
was 2007, the company was losing
money and a change in leadership
was sought.
Balram was coaxed to step up from
his role as executive director and
president. “When this role came to
me, I wasn’t thinking long-term,”
he admits.
“In fact, my focus was very short- stake in Creamline Dairy, gives it
term, just to find a way to plug the
leak of money pouring out of the
company. I had the opportunity
to try everything possible to turn
the company around and that’s
all I thought about, making the
company profitable.”
“We made many changes and our
first goal was achieved quickly.
We sold some businesses which
were losing money to bring the
losses down and focused on our
core business of animal feed, palm
oil plantations and crop protection. in the world, only around 20% of
Within 18 months, we started to
see profits and by FY2008 we were cooperatives and private dairies.
profitable. But when you keep
achieving goals, expectations keep
rising.”
By 2012, GAVL had
a valuation of US$550
million, mostly from
organic growth.
However, Balram
wasn’t satisfied. He
knew the company
could do more. It was
time to explore other
options.
“Yes, we did well over
those five years, but we
knew organic growth
was not enough,” he
says. “With our ultimate
December 2019
facilities, nutritious fodder and
most valued agribusinesses in the
country, we had to look at other
options. So, in 2015, we made two
acquisitions, Astec Life Sciences
and Creamline Dairy Products.”
Astec is a bulk manufacturer
of fungicides in India with an
established track record for
nurturing long-term relationships
with leading companies in the US,
Europe, Asia and Latin America.
Meanwhile, GAVL’s foray into the
dairy business, with its controlling
a significant presence under the
Jersey brand name in the southern
states of Telangana, Andhra
Pradesh, Tamil Nadu, Karnataka
and parts of Maharashtra.
Apart from milk, its products
include yoghurt, lassi, paneer,
buttermilk, ice cream and flavoured production adversely, sometimes
milk. Balram concedes milk is a
‘difficult’ business in India.
While the country is the largest
producer and consumer of milk
the industry is supported by local
Most of the sector is disorganised,
hampered by disjointed methods
of supply and logistics, including a
lack of veterinary
technology.
“We were never involved in
milk, so we have had to spend
time understanding the industry,”
Balram says. “We need to
consolidate the business and
integrate Creamline to a more
professional level. While it is one
of the top things on my agenda
right now, it takes time.”
“We are growing, we are redefining
our aspirations and it’s a great story
to come from not being a profitable
company, to making it profitable
and then to enter into an entirely
different sector.”
Balram cites another, albeit
surprising, problem farmers face
in various parts of India where
crops are thriving. While too much
rain, or too little, can affect crop
when nature deals a great hand,
crops produce too much.
“This is a very different kind of
challenge. Some of the agricultural
space where we have operated
has not suffered massive drought
or floods, which leaves us with a
different problem, that of plenty.
We have surplus production of
sugar, milk, cereals and many other
agri products,” he explains.
“When
we are in
surplus,
farmers
don’t make
money
and that
of course
results in
shortages
for the
future. This
puts a lot of
pressure on
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