What role does innovation play in helping Rallis stay ahead in a highly competitive market?
Farmers trust Rallis to have meaningful solutions for all their needs. This puts a lot of responsibility on us to be able to continuously bring out products and solutions so that there is no gap in our basket. Innovation therefore plays an important role in driving this core characteristic of Rallis.

We track customer needs through focused group discussions and once a demand gap is perceived we activate our R&D team to examine the best way to address it. The first priority is to check if the solution can come from our own stable. We then approach institutions with whom we have robust strategic ties to help bring in the desired solutions. Some of our recent innovative products such as Applaud, Takumi and Ergon have been well-received by farmers. The farmers believe that when there is a need, Rallis will be there to help. To maintain the freshness of our portfolio, we measure Innovation Turnover Index, ie, the ratio of revenues from products introduced in the last four years to total revenue.

Similarly on the customer relationship front, Rallis practices are regarded as game-changers and unique in their approach. Practices such as Rallis Kisan Kutumbh; Bhagidari Sabha; Anubandh; Sampark, Sambandh, Samriddhi & Santusthi; Samruddh Krishi; Rallis Advisory Centres; etc are a few examples for which we are known in the market place.

How does Rallis inculcate or encourage innovation among employees? To what extent has this effort been successful?
At Rallis we look at innovation across products, processes, people and business models. Our systems and processes are instrumental in driving innovation. Company goals are well cascaded to individual levels through the balanced scorecard system we follow. During the annual goal-setting exercise we take stretched and challenging goals which inspire an innovative mindset. Our unique people initiative Kisme kitna hai dum spurs innovative thinking and action among teams and individuals. While process and product innovations are driven at a functional level, business model innovations are generally initiated by senior leaders.

We have been consistently recognised for innovative practices with recognition from various forums such as Qimpro and Tata InnoVista. Last year we had three regional winners and one global winner at the Tata InnoVista. This year [2012] four of our projects have won regional awards and one of them was a global award winner in the ‘Dare to Try’ category. I can say that it is a journey and we are constantly moving forward.

What are the challenges facing the company in adopting new innovations and implementing them?
The starting point of any innovation is an idea. The challenge is to encourage people to generate ideas freely. To support this, we have various communication fora, functional meetings, visits by senior leaders to locations and factories and several brainstorming formats which give ample opportunities to people to share ideas. In factories, our Learn, Apply, Share, Enjoy and Reflect teams come up with ideas for innovations on the shop floor.

Once an idea is validated, implementation starts. The seniors extend necessary guidance, support and resources where required. In certain cases where an idea needs a cross-functional team for implementation, such teams are formed. Sometimes, people do not try out new ideas for fear of failure; it therefore requires continuous effort to encourage our teams to try out new ways without the anxiety of failure.

Rallis’s More Pulses (MoPu) Project was one of the winners of Tata InnoVista 2011 under the ‘Promising Innovations’ category. How did the project come about?
At the group level, we identified pulses as a crop which the country needs badly and where our productivity is low. We import pulses, and in the future the country may have a shortage of pulses. Given that pulses provide the cheapest source of protein and form part of our daily diet, it requires special attention and farmers need guidance and support in pulses cultivation.

We therefore decided to take this up as a focus initiative, as an engagement which is good for the farmers, the community and the country. Of course, it required a different approach and hence an innovative business model in the form of MoPu was conceived. In MoPu we engage across the value chain, farm-to-fork, and work with farmers to grow quality pulses, drive productivity and finally procure the produce and bring it for retail consumption in a high-quality packaged form branded as i-Shakti.

How successful has MoPu been?
MoPu was initiated by Rallis in December 2009 in Pudukottai district of Tamil Nadu with a handful of farmers and a partnership with the government to provide advice on cultivation, from seed to harvest stage, and to jointly monitor day-to-day activities. The success of the project was encouraging for farmers, whose yield went up from 300-700kg per acre.

With the encouraging response and success, we commenced operations in Karnataka and last year signed an MoU with the Government of Maharashtra. Plans are underway to commence operations this year in Madhya Pradesh. The i-Shakti portfolio has also extended from the initial black gram to red gram, green gram and Bengal gram. The number of farmers in the MoPu family has increased from 1,000 in 2009 to 25,000 in 2011.

What were the challenges in MoPu’s implementation, and what are its future prospects?
Being a new business model for us, there has been quite some learning. The farmers need support across the chain, including finance. The fluctuation in the commodity market also poses a challenge. Overall the results are quite encouraging and we plan to steadily build a formidable business and platform in pulses and thereafter extend the model to other crops.

The pulses project has taken Rallis into new territory. Are there any other business model or product innovations in the pipeline?
We have piloted our new initiative Samrudh Krishi, through which we provide agri-services using ICT. Crop-related information and agronomy practices are shared with farmers through mobile phones with the objective of helping them improve their crop economics. We are quite enthused by the results of the two pilots we did with grapes in Nashik and cumin in Gujarat. Roll-out plans are in place for this year.

Has the company filed for any patents? Is the company looking at IPR as a business asset?
We are working on the New Millennium Indian Technology Leadership Initiative programme, under which a few patents have been filed. We will file a few more in 2012.