From fridges to furniture: How innovation drives Godrej & Boyce

Nyrika Holkar cut her teeth at leading law firm AZB & Partners, specialising in M&A transactions, and advising foreign companies seeking to invest in India.

Now, as executive director at Godrej & Boyce, the 39-year-old qualified solicitor is responsible for the company’s global legal strategy, including supervising commercial contracts, structuring M&A transactions, and protection and enhancement of intellectual property across its 14 businesses. In an interview with Fortune India, Holkar, who is the niece of Godrej & Boyce chairman and managing director Jamshyd Godrej, opens up about the company’s initiatives in the healthcare space, design, and innovation and R&D, among other things. Edited excerpts:

What are the initiatives taken by Godrej & Boyce in the healthcare space?

Healthcare as a space is something which is important for us.

Though we have historically focussed on hospital infrastructure—hospital beds, ICU beds, and critical furniture for hospitals—that was ramped up significantly during Covid-19. At the beginning of the pandemic, there was this whole concern that we would need more ventilators both in India as well as internationally, so our aerospace business was able to build the solenoid valve for the ventilators in conjunction with DRDO [Defence Research and Development Organisation]. DRDO provided the designs and we manufactured the valves in 15 days.

While manufacturing these, we realised that there was a certain component used in the valve which was part of the global supply chain. The component—an actuator—which [also] activates the mobility in the [motorised] beds, was imported from the U.K. and Denmark. These were in short supply because of the pandemic. We decided to indigenise the product.

So, we found an opportunity to manufacture certain critical components for which we were dependent on imports. In view of the ‘Atmanirbhar’ drive, manufacturing them in the country could also help us ramp up manufacturing of our motorised beds.

How did the medical refrigeration business start?

Our medical refrigeration business started by looking at our attempt to bolster the cold chain to prevent wastage.

A case in point was vaccine refrigeration. The team was looking from the beginning to the end of the medical supply chain and wastage was a significant issue which needed to be addressed. And that is how we licensed the ‘Sure Chill’ technology to enable a vaccine to stay at a stable temperature with a holdover in case of power outages.

Similarly, our second learning was to redesign the refrigerator for vaccine storage. The traditional refrigerator was top-loading, and it was difficult to organise the vaccines, to see them clearly, check expiry dates, or temperature at one look. We looked at creating a product which was front-loading for ease of use. In our refrigerator, it is easy to see the temperature scale which is critical to monitor fluctuation to track temperature breach. Our technology also allows a significant holdover, so wastage does not happen.

Here we used human-centred design along with the ‘Sure Chill’ technology.

How did the company tide over the Covid-19 crisis and the past year, which, many feel, has been quite tumultuous?

Covid-19 was a destabilising time for everybody. Now we are seeing green shoots return. At the beginning of the pandemic, we had to focus on enough cash and collections on time to pay our suppliers.

The company took a decision to take deferrals and pay cuts so that we had enough cash and liquidity to pay our vendors. That was most important for our community because we are spread out with our manufacturing and branches all over the country.

At the social level we did a lot of food distribution, food kits, etc., especially focussed on Mumbai. We also did a collaboration with the BMC, where we got the BMC individual donors to a single platform for ease of contribution in raising money for food relief. We were able to map the city to a certain extent and help NGOs with food distribution.

In terms of our own production, we started manufacturing disinfectants, HVACs, UV, appliances for conveniences like dishwashers where staff was an issue and people wanted to be more self-sufficient at home. I think that trend will continue.

We manufactured ventilators and hospital beds and, now as life comes back to normal, we are offering solutions to configure our offices for safety. Similarly, we are attempting to offer solutions for work from home which is likely to become a permanent feature for many companies, especially IT companies. So, we need to make homes more ergonomic and productive. Those are the opportunities we saw, the ways in which we can support people as corporate citizens. We ramped up production, helped in healthcare infrastructure development where we could, and that was also our contribution to the economy.

There was a lot which was done and will continue, especially with the Budget allocations to healthcare.

Coming back to innovation and R&D, how are you looking at these aspects? Also, how do you scout for ideas and products that align with your businesses?

In terms of research, development, and innovation, given the diversity of our business at Godrej & Boyce, it is embedded in each of our businesses. We look at trends continuously. We look at pain points of the customers so human-centred design is focussed on understanding that and finding solutions for the customer. This is part of the innovation process and then we have invested significantly in appliances through manufacturing.

Historically, for Godrej, there has always been a strong focus of the company on intellectual property, patent creation, and innovation since its inception in 1897. We had created the world’s first springless lock and the first indigenously manufactured refrigerator; we got the second patent for our safe.

Now the role of partnerships and ecosystems is increasingly important and so is core competence and specialisation so that we do not reinvent the wheel. Trying to partner with businesses that have deep expertise in particular areas and strengthening the partnership as we engage with the ecosystem partners is a requirement of the current business environment.

It is equally important for us to develop our ecosystem partners and MSME vendors and suppliers, upskilling them and localising the products to build up our supply chain as well as talent to depend on as we diversify so we can decrease our dependence on other countries.

For the aerospace and defence business, we do have partnerships with countries like Israel. For security certification, we have looked at Europe. We are always looking at partnerships in India and internationally that could potentially help us roll out our offerings to the market faster.

Is there a conscious thrust using design to reach the consumer?

Our B2C businesses—appliances and security locks—are focussed on a closer connect with the retail consumer.

Now we are trying to understand the customer better with the work at home scenario where the consumer is looking for a different experience. So, we have introduced work from home furniture with a strong sense of design. At Godrej Design Lab, designers engage with the community. We have Design Dekko, which basically connects architects, influencers, and interior designers to interact with the community.

Over the years, Godrej Interio has been looking at design and aesthetics. We have Interio’s value for design, Script, which is a mass premium range, but for a younger demographic looking at their aspirations.

U&Us is a design studio for people who want to do up their homes, do customisation for homes using software. It is a startup within our ecosystem. We do an ergonomic audit, which creates a consciousness for good posture and the need for it.

For all these businesses, the main hook is design and ergonomics. We spend so much time sitting, so ergonomically good furniture will ensure health in the workspace and at home.

Currently we work with Indian designers, but we could open the platform up for the international design community.

Do you scout around for science-based innovation?

Looking for the right partner, right fit for our business happens through a mix of scouting and people soliciting partnerships with us. It is mostly spearheaded by businesses and the teams who know the growth strategy. So the main scout will be business-led but we also have a corporate M&A cell, which scans investments, etc. And Mr [Jamshyd] Godrej with his network and connections, through different forums, is approached and seeing the right fit we go ahead. Sure Chill technology came through Mr Godrej’s network and we have licensed it for the world. There is no other technology globally, as of now, which can maintain the temperature to the same measure of accuracy.