Crisis-proofing the corporation

Through the journeys of five companies, this book offers hard-won lessons and best practices for navigating tough times and emerging stronger

The Art of Enduring

By Saurabh Mukherjea and Salil Desai

Published by Penguin Random House India

352 pages ₹699

 The mind starts to spin while revisiting the massive events that affected the Indian economy between 2015 and 2025. In 2016, the government demonetised all 500 and 1,000 rupee bank notes, hoping to crack down on counterfeit currency. The goods and services tax, the biggest tax reform since Independence, was rolled out the following year. In 2020, a 21-day nationwide lockdown was announced to combat the Covid-19 pandemic.

 

The year 2021 ushered in the global supply chain crisis, spiking freight rates. The expense of transporting goods shot up so much that shipping containers were suddenly more valuable than their contents. From 2022 onwards, Russia’s war with Ukraine, Israel’s with Hamas, and the United States’ with Iran had ripple effects in India, impacting supply chains for fuel and fertiliser imports, and straining the rupee. In addition to this, the US Federal Reserve raised interest rates 11 times in a row in 2022-2023.

 

Saurabh Mukherjea and Salil Desai were curious to find out which Indian companies were able to not only survive this turbulent period but also “turn crisis into opportunity”, outpacing India’s gross domestic product growth and generating returns on capital exceeding 15 per cent every year. Their book The Art of Enduring zeroes in on five companies from the BSE500 index that showed “the ability to befriend time”. These are: Bajaj Finance, Titan, Dr Lal PathLabs, Divi’s Labs, and Tata Elxsi.

 

The biggest takeaway from this book is that shocks can be absorbed and uncertainty can be managed with a long-term vision to improve performance, care for people, and deliver profits. It might be useful to entrepreneurs starting out on their journeys, and to readers deciding where to invest. That said, it opens with the disclaimer that the authors, their families, their firm, and the firm’s clients “may have a beneficial interest in the companies mentioned in this book”.

 

Mr Mukherjea is the founder and chief investment officer of Marcellus Investment Managers, and the former CEO of Ambit Capital. He also brings to the book his experience as a founding director of the Association of Portfolio Managers in India, and as a member of the expert committee constituted by the Securities and Exchange Board of India in 2019 to upgrade portfolio management services regulations. Mr Desai’s insights come from being the head of research at Marcellus, and his previous experience with IDFC Securities and Premji Invest.

 

The success of these five companies is analysed using British economist Sir John Kay’s four pillars of competitive advantage — innovation (in terms of processes, products and business models), brand (reputation), architecture (the web of relationships with employees, suppliers and customers), and strategic assets (patents, exclusive relationships and institutional knowledge). This framework can be used by readers for assessing and transforming their own organisations.

 

We are told that Bajaj Finance has gained from long-range planning exercises, a rigorous “bottoms-up process” with the company’s top 1,000 people. It involves “external benchmarking, macro analysis, review of existing processes and how to deploy technology in every sphere to improve growth and productivity.” Resources are requisitioned and allocated accordingly.

 

With Dr Lal PathLabs, being an early adopter has been the winning strategy. In the diagnostic industry, “it may not always be commercially viable for a business to invest in the physical, financial and human resources” required to offer tests that are not routine and, therefore, not in demand from a large number of patients. However, the foresight to invest in these, “akin to product development for an FMCG company” has helped them stay ahead of competition.

 

The authors attribute the success of Divi’s Labs to their clients’ confidence that the company will never compromise on intellectual property, the assurance of reliability of supplies, a strong track record of regulatory compliance, and transparent communication with clients without fearing loss of business. Tata Elxsi’s emphasis on relationships provides “psychological safety” to their employees, resulting in a work culture where people find it easy to admit mistakes and seek help.

 

Titan’s investment in vendor relationships with karigars has contributed to its success. The company runs listening sessions to understand their hopes and aspirations, organises eye camps, provides support with medical insurance premiums, and celebrates Goldsmith Day every year.

 

The book is filled with many such best practices that will hopefully encourage readers to adopt and adapt because a crisis need not be a death sentence. At a time when private sector investment is thin on the ground and Indian corporations’ reputation for innovation and strategic vision are conspicuous by their absence, these few examples could offer fuel for new beginnings.

The reviewer is a journalist and literary critic. @chintanwriting