Volume 14, Number 1 Article by Ganesh Prabhu March, 2002
Anu Aga: A Culture of Innovation and Openness :
Anu Aga is the Chairperson of the Thermax Group of Companies, a Rs 780 crore Pune-based energy, environment and chemical major that exports its products worldwide. Thermax isknown for its innovation in products, processes and practices, as well as its culture of openness.
Anu Aga started her career at Thermax in 1985, in the Human Resources department, and went on to head the function from 1991 to 1996. When she took over as CEO, the company was going through a difficult period. Remarkably, she has managed to see the company through the crisis and put it back on the road to recovery at a time when the rest of the industry is facing a downturn. In a frank and forthright interview, Ms. Aga talks to Ganesh Prabhu about the remarkable culture of caring and innovation that existed in Thermax in its early days; about what went wrong, and how the company is undergoing a transformation. A chronic problem with the company, probably resulting from its stress on innovation, was lack of discipline. However, putting back the discipline led to loss of innovation. In addition, Thermax had been over-ambitious, getting into unrelated areas instead of concentrating on its core competence. With the help of the Boston Consulting Group, Thermax got out of unrelated fields and also downsized effectively in order to get back on track. Ms Aga shares with Ganesh Prabhu her staunch conviction that there is no substitute for honesty with oneself and with others. She also discusses the role of the Confederation of Indian Industry, where she is Chairperson, Western Region, and of the corporate world vis-à-vis society.
Anu Aga is the Chairperson of the Thermax Group of Companies, a Rs 780 crore Pune-based energy, environment and chemical major. Known equally for its innovation and its culture of openness, Thermax has always been a trendsetter among Indian companies. It was a keen advocate of professionalism long before the idea caught on in other family-owned companies; eschewed hierarchy and ostentation way back in the 80s; and believed in giving back to society in many ways, when the buzzwords ?corporate social responsibility? hadn?t been invented. Thermax exports its products worldwide and is known for its innovations in products, processes and practices.
Anu Aga started her career at Thermax in 1985, in the Human Resources department, and went on to head the function from 1991 to 1996. When she took over as CEO, the company was, for various reasons, going through a difficult period. Remarkably, she has managed to see the company through the crisis and put it back on the road to recovery at a time when the rest of the industry is facing a downturn.
In a frank and forthright interview, Ms Aga talks to Ganesh Prabhu about the remarkable culture of caring and innovation that existed in Thermax in its early days; about what went wrong, and how the company is undergoing a transformation. A chronic problem with the company, probably resulting from its stress on innovation, was lack of discipline. However, putting back the discipline led to loss of innovation. In addition, Thermax had been over-ambitious, getting into unrelated areas instead of concentrating on its core competence. With the help of the Boston Consulting Group, Thermax got out of unrelated fields and also downsized effectively in order to get back on track. Traditionally, families never criticise their own companies, and some employees find her total transparency hard to take, but Ms Aga feels it is vital to be honest with oneself and with others. Unless one is willing to face facts, it is not possible to change what needs to be changed. She also discusses the role of the Confederation of Indian Industry, of which she is Chairperson (Western Region), and of the corporate world vis-à-vis society.
Reprint No 02103
