In this episode of Paisa Vaisa, Anupam Gupta sits down with Akshat Seth, MD & CEO of BirlaNu. They deep dive into the 170-year legacy of the CKA Birla Group and how one of India's oldest conglomerates is transforming for the modern age. Akshat shares his personal journey from a decade in management consulting to leading major operating businesses in healthcare and manufacturing.

If you are interested in business strategy, how large groups manage synergies, or want career advice on making the leap to the C-suite, this conversation is for you. We also discuss the massive rebranding of HIL to BirlaNu and the future of sustainable construction in India.

Key takeaways

• The Quality Litmus Tests: Akshat uses the "Family Test" for healthcare (treat patients like family) and the "Home Test" for manufacturing (make products you'd use in your own home) to ensure excellence .

• From Consultant to CEO: The transition requires shifting from pure strategy to execution—specifically the ability to build businesses from scratch (0-100) and scale mature ones (100-1000) .

• Rebranding HIL to BirlaNu: The rename wasn't just cosmetic; it signals a strategic shift to connect with modern consumers who demand technology and sustainability .

• Conglomerate Strategy: The CKA Birla operates on professional management where individual CEOs run companies, bound together by shared values rather than micromanagement .

• Sustainability is Essential: Green manufacturing is no longer a differentiator but a "hygiene factor" necessary to compete in global markets like Europe and the US .

• Hiring Checklist: For leadership roles, Akshat prioritizes three traits: Hunger for growth, Ownership of the business, and Culture Match .

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Did you know that the addictive McDonald's Piri Piri mix or the Sour Cream & Onion flavor of Balaji Wafers were created by the man sitting in this chair? 🍟😲

In this episode of Paisa Vaisa, Anupam Gupta sits down with Ajay Mariwala, the visionary behind VKL Seasonings and Food Service India (FSIPL). Ajay is the "Secret Sauce" of the Indian food industry—literally! He shares the untold story of how his team beat global multinationals by a "mile and a half" to become India's #1 seasoning company.

From flying to Valsad to pitch a new flavor to the owners of Balaji Wafers to turning his mother's pickle recipe into ITC Bingo’s iconic Achari Masti, Ajay reveals exactly how billion-dollar flavors are invented.

We also dive deep into the brutal reality of the restaurant business. If you dream of opening a cafe, you need to hear Ajay’s "Head vs. Heart" advice , why 35% is the magic number for food costs , and the unique "Toilet Test" you must do before buying a franchise.

Takeaways

1. The Creator of Icons: Ajay’s team is responsible for creating the McDonald’s Piri Piri mix and Balaji Wafers’ Sour Cream & Onion flavor, beating global competitors.

2. The QSR Golden Ratio: For a Quick Service Restaurant to be viable, food costs must stay between 33-35%. Rent should always be the second highest cost, not the first.

3. Head Over Heart: Don't open a restaurant just because you love food. You need a 24-month cash runway because most restaurants fail in the first 9 months due to quality inconsistency.

4. The "Toilet Test": The best way to judge a franchise's operational discipline isn't the food—it's the hygiene. If the toilet is clean, the kitchen is likely clean too.

5. The Tier-2 Opportunity: Expansion in major metros (Mumbai/Delhi) is slowing due to high rents and saturation. The real ROI is now in Tier 2/3 cities where rents are 8-12% (vs. 15-20% in metros).
   
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Anupam Gupta and Vishal Bhargava dive deep into selecting the right property. Vishal explains why apartments should have a minimum of 650 sq ft carpet area for a 2BHK and warns against the deceit of sample flats (no doors, small beds). They expose the Amenity Illusion (swimming pools are "item numbers") and the low quality of construction from branded developers, who often prioritize timely delivery over quality. They discuss Bombay's enduring strength (waterfront, 24/7 energy) versus the "race to the bottom" in Gurgaon, and the extreme tenant profiling happening in markets like Bangalore. Don't fall for the "inventory of choice" fear—there is always supply, so Don't Rush! #MumbaiRealEstate #PropertySelection #BuilderQuality

Takeaways-

• 1. Rule of 35 & 5-20-30-40: Buy a house only after 35, following the 5x annual income, 20-year loan max, 30% down payment, 40% EMI limit rules.

• 2. Location vs. Address: Prioritize a good Location (e.g., Dharavi connectivity) over a vanity Address (Pali Hill), as location eventually becomes the address.

• 3. Builder Due Diligence: Check the builder's delivery history and the interest rate their lender charges to assess risk.

• 4. Property Specs: Aim for a minimum 650 sq ft carpet area for a 2BHK and beware of deceptive sample flat tricks (small beds, no doors).

• 5. Investment Strategy: For aggressive investment, bet on migration to convert a "bad address" (good location) into a "respectable address."

• 6. Small Ticket Investment: REITs are preferred over Fractional Ownership due to liquidity, despite REITs offering less asset-specific focus.

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