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INTERVIEW
"We have some very sentimental middle-class
sort of values here" |
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| Interview with N. Shatrujeet of agencyfaqs!,
December 17, 2001
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A.G. Krishnamurthy, chairman and managing director, Mudra Communications, is no one's idea of a successful advertising CEO. For one, his small-town moorings in Andhra Pradesh are in stark contrast to the chic south Mumbai culture epitomized in Indian advertising through the seventies and eighties. Two, he started his climb to the top of the advertising pile not in some high-profile agency, but as an account executive in Calico Mills' in-house agency. Three, all through his career, he never worked for any of the hotshot agencies of his time, instead chose to breathe life into Reliance Industries' Ahmedabad-based in-house ad-department-turned-agency, Mudra. Yet, none of these so-called handicaps seem to have come in the way, as Krishnamurthy systematically transformed Mudra into a full-service powerhouse over a period of 22 years. So much so that today, Mudra is among the Top Five agencies in India. In this interview with N. Shatrujeet of agencyfaqs!, 59-year-old Krishnamurthy talks about why Mudra didn't suffer a fate most in-house agencies suffer; the evolution of MICA; Mudra's association with DDB; and how the 'Mudra-kind-of-person' becomes a successful advertising professional.
Q. Mudra is a textbook example of an in-house agency making it big. What was your thinking when you constituted Mudra?
A. Mudra was founded on March 25, 1980, with a different philosophy altogether… not a typical in-house agency philosophy. Before Mudra was set up, from 1976 onwards, we (Vimal) were working with Frank Simoes. By mid-78 or early '79, Vimal had become a fairly large name.
Now, Frank was handling Raymond's from day one. In fact, Frank Simoes was set up when the Raymond's account moved from O&M. In the beginning, Raymond's did not see any conflict with Vimal. At that time, Vimal was essentially a women's wear brand, with one-offs in suiting and shirting. But Vimal went into suiting in 1978, and by mid-79, Vimal was a fairly large name, creating quite a sensation in the country. So, I think Raymond's told Frank Simoes to make up his mind - that he couldn't have two suiting brands at the same time. Frank had to choose between Vimal and Raymond's. Obviously, Frank chose Raymond's because Raymond's was with him from the beginning. But he did ask us if he could retain sarees and dress materials, and can the suiting part of Vimal go to some other agency?
Somehow, we were not comfortable with Vimal being handled by two agencies. More importantly, though Frank was handling the bulk of the creative for TV, the other creatives like outdoors etc, was produced in-house by us. At that time, there was no agency called Mudra, it was more an in-house department. But this department was creating non-mass media creative work. So I felt, why not blow up this department into a full-service agency? That way, Vimal's problem of going to two or three agencies was sorted. I took this proposal to Shri Dhirubhai (Ambani). He got pretty excited with the idea and gave a go-ahead.
Normally, in-house agencies are created to save money spent on media. But the mandate for me was clear: produce the finest textile advertising in the country for Vimal, whatever the cost.
Q. Mudra wasn't India's first in-house agency, neither is it the last. But it is, perhaps, the only one that successfully blossomed into a full-service powerhouse. How did this happen?
A. Mudra was not a typical in-house agency. Normally, in-house agencies are created to save money spent on media. But the mandate for me was clear: produce the finest textile advertising in the country for Vimal, whatever the cost. Shri Dhirubhai never wanted to know how much money I have saved for the company. So, if you look at it, the idea of wanting to be the very best was germinated by him.
Therefore, the roadmap was different for Mudra; the strategy, completely quality- and leadership-driven. We worked with some of the finest minds, models, photographers and filmmakers in the country to produce path-breaking advertising for Vimal. In fact, between 1980 and 1994, we produced stunning work for Vimal, year after year, nonstop for 14 years.
Q. What made you look beyond the Reliance horizon for other businesses? Was it clear from the beginning that Mudra would do more than Reliance work?
A. I'm a very focused person; I only take one task at a time. I don't really believe in the future, I live for the present. At that time, the foremost thought on our minds was creating the best work for Vimal. That's all.
Having achieved this for a few years, offers started coming in from outside. Several clients approached us to associate with their business. Also, we realized that to attract and retain talent, Mudra needed a large, diverse portfolio of brands. Therefore, as new brands and opportunities came our way, we grabbed them. First, it was Rasna, followed by Nelco. When Mudra started, the idea was not to make it the biggest agency in the country. Of course, today, Reliance contributes some 2-3 per cent to our revenues.
Today, MICA is a well-known institution, a one-of-its-kind in this part of the world. Some of the young, finest research and media brains in the country are MICAns.
Q. What were the obstacles - both from within the Reliance fold, and without - that you faced during Mudra's exploratory years?
A. There were no obstacles, really. And if there were, they were not man-made. They were part of the city where we began - Ahmedabad. We had to identify, re-energize and refocus our supply chain. Recruiting, training, and retaining talent wasn't easy at Ahmedabad. This too needed some path-breaking approach. As they say, necessity is the mother of invention. We had to run yearlong creative and management training programmes quite early on in the agency life to recruit, train and retain talent. In fact, this experience became the inspiration and model for MICA. We believe these training programmes were not only innovative, but first of their kind in this part of the world. These programmes produced some outstanding professionals. Balki (R. Balakrishnan, executive creative director, Lowe Lintas & Partners) is one such product.
Adventure, invention, entrepreneurship, passion and pride are the hallmark of Mudra from its formative years. And these continue to dominate us even today.
Q. Talking of MICA, when and how did the idea of setting up a training institute for aspiring advertising professionals occur? And how has MICA evolved as a finishing school?
A. There are two reasons for this; professional and personal. Professionally speaking, while the ad industry was growing at a very healthy pace back then, there was no regular stream of bright young people coming into the industry. As a consequence, it was 'you pinch my people, I pinch yours'. I realized that if Mudra had to succeed in the marketplace, it could not fight day in and day out to retain its people. So I thought, can agencies have a regular source of talent? That way, you'll do your business while I'll do mine. Live and let live.
MICA was needed some 20 years back, I guess. Look at the other sectors of the economy. All have their own dedicated schools of learning. Unfortunately, none for the advertising industry. Somebody, someday, had to do it. If Mudra hadn't done it, somebody else would have. So we founded it in 1991.
The catalyst, as I mentioned, was the yearlong programmes Mudra ran 1984 onwards for its account management and creative disciplines. Today, MICA is a well-known institution, a one-of-its-kind in this part of the world. Some of the young, finest research and media brains in the country are MICAns. In the years ahead, MICA will emerge even stronger in its present areas of teaching and learning. It will also become a fountainhead for research and publication in communications. MICA has come a long way… and has a long way to go.
I don't think the bulk of IIM students move into the ad industry today. They get into finance, marketing, IT, consultancies… Obviously the industry is not getting the finest talent.
Q. You mentioned personal reasons…
A. There was this thing of giving something back to the industry. We have some very sentimental middle-class sort of values here. Sitting in Ahmedabad, Mudra never imagined it would become such a large and successful entity. The industry gave us so much - name, reputation, money… It's only right that we give something back. That's the thinking about MAGINDIA too.
Q. Considering that IT, consultancy and the like are attracting the best brains in the country, do you see a fall in the quality of raw talent that comes to MICA's doors?
A. Admission to MICA is through the well-known CAT process, which automatically ensures that some of the brightest kids in the country get into MICA. Every year, about 4,000 young aspiring minds approach MICA, and only 60 get into it. Therefore, it's good minds that apply, and the stringent entry process ensures admission of top quality students. The moment you have top quality students, half the battle is won. I am sure this will continue to happen in the years to come.
Q. What about the advertising industry as a whole… is it still attracting the most talented people around?
A. I don't think so. Some seven to 10 years ago, we used to go to the IIMs to recruit people. Nowadays, no agency goes to the IIMs, and I don't think the bulk of IIM students move into the ad industry today. They get into finance, marketing, IT, consultancies… Obviously the industry is not getting the finest talent.
For one, advertising does not pay as well as finance, consultancy or IT businesses. From the student's point of view, you spend two grueling years in IIM, and you certainly want the best placements. The ad industry is certainly one of the lowest paying ones at the entry-level. Of course, at the mid- and top-levels the gap starts narrowing, and in many cases, is on par. But the advertising business does not seem an attractive proposition in the short term.
However, a lot depends on what yardstick you use. If you benchmark the IIMites as the finest products, maybe we are not getting the best. But the industry is getting some very fine people from the next layer of management and business schools.
As an agency, we strongly believe in organic growth. We don't believe in resigning a business just because the next guy offered us a little more in the same category.
Q. Mudra is known for associating with 'Indian' brands. Is this an effort to cushion the agency from shocks accruing from global realignments? Or does it have to do with not wanting to be too dependent on DDB for business?
A. We have an enviable portfolio of brands. I don't really look at them as Indian and MNCs. It's just that we have been working with most of these brands for years - in some cases right from the beginning - and grew with them. As an agency, we strongly believe in organic growth. We don't believe in resigning a business just because the next guy offered us a little more in the same category. We have invested heavily in our people and in our clients' businesses. We understand their business thoroughly. In some cases, we are an integral part of their organizations. Check with any of Mudra's clients - I am sure they will tell you that Mudra stands for long-term relationship and benefits. Advertising is a business like any other business, and business is long-term. This strategy worked wonders for Mudra… today we have a large portfolio of brands, with several years of association, and growing in volumes and intensity of relationship.
And let me add that there is no conscious decision taken in any board meeting that we must handle 80 per cent Indian brands or anything like that.
Q. Mudra's association with DDB dates back to 1989. Yet, Mudra has always underplayed the DDB connection.
A. Mudra is a very Indian agency. Think of 1989, not 2001… 2001 is a very multi-nationalized environment. Eighty-nine was a very different scenario. That was when everything was very protected with a strong emphasis on Indian brands. Both DDB and Mudra felt that there was no point in simply latching on to something that did not represent 'Indian'. Then, of course, there is the thing of DDB having only 10 per cent stake in the company. Other than this there is nothing to read in between the lines.
Again, let me add that we work extremely closely with them. What if we do not have the DDB name next to Mudra's? What DDB Singapore does to the DDB network, Mudra does too. They respect us a lot and we respect them a lot.
What if we do not have the DDB name next to Mudra's? What DDB Singapore does to the DDB network, Mudra does too. They respect us a lot and we respect them a lot.
Q. Although Mudra is one among the Top Five agencies in the country, the consistency of its creative output is always questioned by the industry.
A. Since the early 90s, we have been scoring well in all the award forums, and have won as many as 774 awards. No matter what others think, we are one of the top three-four award-winning agencies across the years, across the markets. Because the agency or its people don't seek limelight as a way of life, because we don't go to press with stories day after day, because we keep a low profile, our performance in this area can't be questioned. Also, most of the awards are across several living and thriving brands, and from different offices.
While on the subject, I would like to emphasize the agency's point of view that, as an agency, we believe in 'responsible creatives', creatives that deliver. Awards are incidental. Honestly, we don't believe in awards for the sake of awards from questionable, scandalous or motivated work.
Q. Mudra has been a kind of springboard for many of today's top industry professionals. What is it about Mudra that has helped produce so many talented individuals?
A. There is this species called 'the Mudra-kind-of-person', a statement very commonly used in the agency while recruiting. Simply put, this person stands for 'a good human being and a good professional' - in that order. If a person scores 8/10 as a good human being, and 7/10 as a good professional, he or she will make it to Mudra. On the other hand, if the person scores 6/10 as a good human being, and 8/10 as a good professional, he or she will not make it. We don't like to work with political minds, perpetual cribbers and permanent cats on the wall. Even today, the same philosophy is preached and practiced across the organization.
Once we recruit the Mudra-kind-of-people, we put them through induction programmes, which are essentially value-driven. For we believe in 'recruit for attitude and train for skills'. We try to inculcate in them ownership, passion and commitment to work, and genuine liking for our clients and their brands. Consciously, we try to cultivate a sense of ownership in our people and encourage them to live their dreams.
When Mudra was founded, I was given some money, a locker and its key by Shri Dhirubhai. Very blessed and fortunate I was to get all the three at the same time. I tried to emulate him and follow the trend. We empower people in Mudra and give them an opportunity to set their own agenda and self-actualize. In Mudra, you don't have to be a senior person to work on the most prestigious brands and campaigns. We don't believe ideas are the monopoly of seniors only. These processes and attitudes have institutionalized honesty, hard work and achievement among several Mudraites. And made some of them big achievers.
Therefore, it is hardly surprising that several ex-Mudraites today occupy senior positions in various organizations. All these people are good human beings and very competent professionals. They entered Mudra, enriched us and enriched themselves. I feel very good about Sandy (Sandeep Vij), Madhukar (Kamath)… all of them. It's a very good effort. They deserve to be successful.
We believe in 'responsible creatives', creatives that deliver. Awards are incidental. Honestly, we don't believe in awards for the sake of awards from questionable, scandalous or motivated work.
Q. What was your reasoning when you put MAGINDIA into orbit?
A. This was another venture the Indian advertising industry should have had some 20 years ago. You can't have an industry without archives and libraries. Like MICA, MAGINDIA was founded to fill a total vacuum in the Indian advertising industry. Thank God we can now log on to MAGINDIA and see what is happening now, what was the process of evolution, what are the market trends and so forth. It is a veritable goldmine of data and creatives in the area of Indian advertising, both past and present.
As in the case of MICA, MAGINDIA too is a non-profit venture. Somebody, someday, had to build a library and archive. We happened to do it. It's a terrific site and a fulfilling experience for me.
Q. At a time when the economic slowdown has cast a long shadow over the ad industry, how has Mudra coped?
A. Mudra is a tough organization, and its people are fighters and survivors. In fact, the other day, someone said this to me of Mudra: "Head in the clouds but feet firmly planted on the ground." While we are dreamers on the one hand, we are very, very pragmatic people, on the other. There is a strong focus in the company on goals and performance. We have a very strong MIS, employ the latest IT and time-tested financial disciplines. We are one of the financially soundest agencies in the country. More importantly, Mudra has an army of disciplines and passionate people. Our top managers get several cues from their juniors about measures to take in difficult times.
True to Mudra tradition, we have done some right-sizing and cost cutting. I am sure this is the way the industry, as a whole, is coping with recession.
Q. While your Mumbai and Ahmedabad offices are doing well, Delhi seems to be in a bit of a mess on the personnel front. What's your action plan to put the house in order?
A. Delhi is as strong as ever. Arrivals and departures are an integral part of corporate life. Those organizations that have institutionalized succession plans, have good human resources, and have sound corporate values and vision, manage departures fairly easily. I want to believe that Mudra is one such organization that has a large committed talent pool, a decent reward and recognition programme, and a great work culture. More importantly, an excellent and challenging brand portfolio.
The present team at Delhi, led by Hemant (Misra) and overseen by our Board Director Prabir (Purkayastha), is one of the best in recent years. Hemant is a proven leader and a hardcore Mudraite. More importantly, he is a solid advertising professional. As it is, Mudra, Delhi, is our largest operation, with a strong satisfied client base. I am certain that it will grow from strength to strength. No questions about it.
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