Rotary Club of Panaji Riviera in association with Business Goa organised an online panel discussion with industry captains – Ralph de Souza (Chairman, de Souza Group), Shekhar Sardessai (Founder- Managing Director, Kineco Group), Kirit Maganlal (Founder-CEO, Magsons Group), Blaise Costabir (Managing Director, GMI Zarhak Moulders Pvt Ltd / Chairman, CII-Goa Council) and Vijay Thomas (Founder-CEO, Tangentia Technologies). Editor-in-Chief of Business Goa, Harshvardhan Bhatkuly moderated the discussion. We bring to you excerpts of ‘Unlocking Business in Goa’
Harshvardhan Bhatkuly: Vijay, one of the businesses that have thrived in this lockdown has been technology. How would you look at adapting global benchmarks that would work in Goa – keeping in mind – culture, ethos and demography?
Vijay Thomas: In today’s world diversification is important. If there are different kind of things that you’re going after, if one of the units gets affected, the other will definitely pick up. I think more and more people should look at diversification.
Based on its demographics, I think, Goa has a very educated workforce. They are worldly-wise. They know of things around them. They are well spoken. You can put them in a meeting with people in the US and UK. They will hold their own, which is a very important capability – and it’s not just about technology. We should be looking at higher growth areas, which require people with coding skills, communication skills – and Goa has all of that. You can be an agile startup, build a collective network across the world and take on bigger companies as well. You just need to get together a group of people and take it off from there.
HB: We ran a poll wherein we have asked the people what businesses will bring in revenue for the State and the common man. We gave four options – manufacturing, tourism, retail and technology. More people are looking at tourism to generate revenue. Ralph, do you think the government and the Tourism Department are in-sync with the challenges of the tourism industry? What would be your advice to the stakeholders of tourism in the current situation?
Ralph de Sousa: As far as the pandemic is concerned, it has affected everybody. In this case, this is something unprecedented. It’s a long term problem where the industry is totally stuck without any revenues. For it to revive, we require help from every corner. As far as the government is concerned, we require assistance from both, the Central government and the State government. The tourism industry is going through a big financial problem. It is a labour intensive sector. We have a huge number of people working here. Salaries need to be paid and many employees were paid salaries even though their workplaces / hotels were shut. The other area where the government has to help out is international tourism. As far as Goa is concerned, we have seen what Goa sells. We have people who travel to Goa and stay for a long period of time and generate business and revenue. There is a notion that Charter tourists don’t churn in much money, but believe me they do. We have various segments in charters also. There is another area where the Central Government has to act. There are no visas issued to come to India. So they have to start the process of issuing visas. These are the main areas where we require help and understanding from the government. Once the tourists come in, not only does the industry survive, the government also will earn more revenue. In order to help the State, the government has to help the tourism industry.
HB: Blaise, one of the big challenges being faced today is that people are facing fund crunches across all sectors. You spoke about crowd funding for businesses. How would you explain it to us in terms of your ideas?
Blaise Costabir: When it comes to crowd funding I’ll give an example of a bus. It is chugging along; and if it stops, the driver tries to crank it, it doesn’t work, and people get out of the bus and start pushing it. So what I am saying here is the bus is the economy, the driver is the government and the people in the bus is the common man. So the common man has to get out and do something because the driver, as in the government, can do nothing as they don’t have the money to propel the economy. One of the things that I hear people say is conserve cash. If the economy grinds to a halt or slows down, inflation is going to go up and your money will not be worth much. I am not saying one must go out and splurge; but buy the essential stuff, do what you have to do and don’t hold back. That will prime the economy. That will give the government money through taxes; there will be money to give people to spend through salaries, as right now people are cutting back on salaries on employment. If the population creates economic demand, that’s where we will get our crowd funding from. This is what I meant when I said crowd funding the economy.
HB: Kirit, one of the road-blocks for the retail sector has been for the small trader, the mom and pop shops How do you see their fate from here?
Kirit Maganlal: Retail starts from agriculture and this is the primary sector for the State. The government is going to run either by way of providing livelihood to people or by earning revenues. The most important sector is agriculture. We see a number of businesses shutting shop. I understand there are nearly 500 establishments in the State, who have surrendered their trade licenses. Many have changed their business models and have got into sales of grocers and other essential items. I have seen many small groceries, mom and pop shops, large supermarkets – mushrooming all over Goa. The healthy option today would be for large, established shops to innovate their offers. They should focus on their core competencies like their IT and tech expertise. They have to use their channels and hyper local modes more effectively today. There is a whole eco-system out there beginning from farm growers, manufacturers, mid-level traders, distribution networks up to the stores who are involved there. Whatever effect the economy has, organised retail will be the front runner for the growth and consumption that we are talking about.
HB: Shekhar, there is definitely some kind of potential business upsides to this pandemic. How do you look at those affecting business dynamics in a post Covid world?
Shekhar Sardessai: There are many teachings to be kearnt from this pandemic. One of the lessons is how we take care of our people. In our business, we have strategised contract labour as an important element of our business in the long run. There are several other lessons that we could learn from this, too. How can we use our assets to the maximum – which every office is trying to do. Today, we are looking at each and every asset in our companies and seeing how these capacities can be optimised and how we can sweat them for more revenue. Thirdly, regarding diversification of business, our core competencies are important. Within the core competencies there are also diversities that are possible; Diversities in terms of geography; diversities in terms of markets; and diversities in terms of product offerings. All these three can be strategized in our business model. All in all, both with regards to cost structure, business offerings, strategies of geographical risk tiding; and many other aspects of business, which we didn’t think about prior to this pandemic are lessons we have learnt and these lessons will be applied by most businesses in the future.
HB: Vijay, Goa was touted to be the next startup hub. What do you think Goa needs to do to be a startup destination, because people feel that individual entrepreneurs are going to make a difference in the new normal? What are your thoughts on the same?
Vijay: If we can sell a story that you’re a startup or entrepreneur and you have a better quality of life in Goa by bringing / shifting your headquarters to Goa, we are sitting on a gold mine. We just need to articulate that really well and sell it. We do not need huge investments and if things like internet connectivity and electricity are taken care of, we might be able to do something about it. We need to get a few people on board and collaborate our successes. I firmly believe in technology. There is a need to create ‘Brand Goa’ not just for tourism, but for industry, as well. We pay money to create a brand and make sure that it’s pushed into the market. I still think there is an opportunity when it comes to startups, and some of it is happening, as we speak.
HB: The pandemic has proliferated the number of new entrepreneurs, mostly out of compulsion as they did not have a means to eke out a living. How do you see the growth of such entrepreneurship in Goa?
Blaise Costabir: The word I use for this is crowd entrepreneurship. Today, because they have lost their jobs people are trying to work ideas that they may have had or thought about but didn’t have the courage to take the plunge. It is possible that after this wind blows over they decide they don’t want to continue and get back to their work. A few will make it big; and we will have a future generation of entrepreneurs. But those who are starting now should look to add value. They have to do it right and while there may be people who drop off, there are going to be a lot of entrepreneurs in the future who have started in these times and that’s actually something positive.
Questions from our viewers. Question from Miguel Braganza. Can we look at raw materials and processed food retailing system as a recovery agent for business?
Kirit Maganlal: Agriculture has to be one of the most important aspects for the State. Agriculture should be top priority. The minute you have a ‘farm-to-home’ kind of set up, this is what is going to boost the economy and trade businesses in Goa. Food being very important, we have to also place emphasis on manufacturing; on the cold chain aspect till it reaches the gate of the consumer. We have to concentrate on how we are going to maintain and preserve this aspect of the economy.
Shivanand Naik feels that the entertainment industry plays a major role by providing a minimum turnover of 3000 Cr annually through weddings, concerts, events. Why isn’t Goa marketed as an event destination to the world? What role could industry associations play here?
Ralph de Sousa: Goa is much sought after for weddings, parties, engagements, reunions. But we have to focus more on promoting Goa as an entertainment destination. For that, we require a Goa Tourism Board. This Board will consist of people from the trade, the government and professionals with proven experience. They will be able to focus on the promotion of Goa and target the right markets and places. This Board will also make sure that the USP of Goa is not diluted, something which has brought tourists to Goa in the first place. So a proper Board which will focus on bringing the right type of people to Goa and promoting the industry that needs to be brought will be taken care of. The entertainment industry can sustain a large chunk of Goa’s tourism industry and we must encourage it.
Question from Nitin Kenkre. After Goa’s slip on the ‘Ease of Doing Business’ what steps should the Government take in this regard?
Blaise Costabir: The first step has already been taken by the Government! They have called for a meeting next week and seem to have paid heed to what is happening. There is a lot that has to happen. The government cannot do much during this pandemic but at the same time they are putting up a lot of hurdles. There is a big job ahead and we believe that in this meeting, there will be some realisation that they have to do something. If the government can’t do it, then they should leave it to people who can. That is something we are looking forward to in the coming days.
Question from Heta Pandit. What is the future of heritage tourism in Goa?
Ralph de Sousa: I think heritage tourism has a good future because people are looking for natural locales. We are trying to get homestays to restart again – this way houses that are crumbling can be rebuilt from the incomes that are earned from these homestays. This is what is required to be done, as one of the USPs of Goa; and preserve its natural beauty. There is a huge demand for this kind of tourism and hopefully we will protect our heritage. This will help not only the tourism industry but also empower the locals to make a living.
Question from Prasad Pawar. How can the government pitch in to help the industries that have been too conservative? What is your opinion on banks pitching in to help entrepreneurs; and people who are facing a cash crunch?
Shekhar Sardessai: The Government itself is facing a cash crunch and to expect anything from it would be a huge fallacy. As far as banks are concerned, the Government and RBI have taken a number of steps to ease liquidity during and post the lockdown. For small borrowers, restructuring option is available, extra 20% of working capital is available and a few more concessions are available under the Atmanirbhar Bharat Package that was announced. Some limits are still available. In addition to sweating your assets, look for products and services that you can avail of with the same investments and make sure that your head is above water.
Question from Dinesh Sinari. The outfall of the pandemic is Artificial Intelligence. Will this not add to the misery of existing jobs? What is your take on this?
Vijay Thomas: It is something that is inevitable. Automation will happen. Mundane, repetitive tasks that humans do will go to machines. I think people will have to be re-skilled and people at the highest level are talking of re-skilling. If you don’t re-skill, you will not have the skills that the economy needs. Why wouldn’t we consider something that is cheaper, works 24×7 and is better in every way? It would be unfair to one’s business to not consider automation.
Question from Ruben Quadros. Opening of schools, casinos and multiplexes will cause an explosion of COVID cases and further damage the economy. How can we delay it?
Kirit Maganlal: The question here is for how long can one reign in those pent up emotions. People need to come back to normalcy; else there will be a lot of emotional and sociological trauma in peoples’ lives. Borders have opened up, free flow of people has been enabled, and businesses have started. However, remember one thing, wherever it matters the most, people are being cautious. We do not know what life would be hereafter. I think society has to move on, life has to move on, we have to be cautious. We will end up having a life that is more fulfilled, spiritually, financially and end up being better human beings. We got to take the situation as it comes, retain maximum caution and move on.
Question from Denzil Xavier. The deficit of trust between the government and people of Goa is hurting businesses. Take for instance the imbroglio and the opposition to the marina…
Ralph de Sousa: Goa is blessed with a large coastline. We have places where we can have marinas. But these marinas should be proper ones, which will not interfere with the marine life. The project should be properly designed and introduced to the people and government together. It all depends on the kind of technology one will use. If you have choices, use the better technology. Goa is a small place. We can’t have extensive tourism here. We have to have limited number of people with higher revenues. If we are going to have extensive tourism with a large footfall, we are going to destroy everything that has been created. We have to have higher end tourists coming in. We have to get into activities in tourism that will attract such kinds of tourists. This way, revenue will come to Goa that will sustain its expenses.
Question from Alan D’Souza. Employees have been laid off across industries. Should cost saving for businesses come at the cost of saving lives or careers?
Shekhar Sardessai: The dilemma that every industry faces is how do we go on with business while protecting jobs and social responsibility that goes along with it. How do we balance the two? To sustain businesses, we should not sack anyone but have pay cuts across the board. Everybody understands that this is a crisis and everybody is ready to co-operate in terms of taking pay cuts and making sure that all jobs are protected. In the process, you may lose a few people who always have an opportunity elsewhere but its definitely a wise and socially responsible decision to allow people to leave rather than make people leave.
Question from Aliston Dias. What would be the pathway for an unorganized service provider like a digital content creator?
Vijay Thomas: Today, there are websites that allow you to put your content online. There is a global market place and at some point you can play to that market place, look for what the pricing is, you are competing with people around the world – and so look at the world as your canvas. There are multiple places where you can vend your services and I truly believe there are huge opportunities and you have got to cast a wide net by putting up the services that you offer. Ensure that you can provide that over the internet and market your services well.
Summing up, Ryan Costa, President of Rotary Club of Panaji Riviera said, “We were joined online by 5 eminent captains of Goa’s industry, involved in businesses such as hospitality, manufacturing, retail and the IT sector along with attendees from across Goa.
Each panellist put across his views on the way forward and the challenges involved in opening up business in Goa, the current scenario and the future prospects”
