Crown Worldwide Group Believes Simplification Is Important For Development

Crown Worldwide Group is a privately owned, global logistics company founded in 1965 and headquartered in Hong Kong. We are an extraordinary and purposeful business committed to making it simpler to live, work and do business anywhere in the world, delivered through our broad portfolio of complementary brands.

Srinivas Krishnan, Regional Managing Director - South Asia, Crown Worldwide Group who is going to complete 25 years in the company this year interacted with Priyadarshini B of Sakshi Post and shared many interesting points not only about the company but also on various topics.

Could you explain your association with Crown Worldwide Group? 

Srinivas : Okay. Well, I started with Crown in the year 1997, when I was in Hong Kong. I was actually selected to handle operations in Indonesia, Jakarta, at that time, when the Asian financial crisis was down. So Indonesia was one of the most troubled operations. So I was asked to take over the controls of Indonesia and reporting to the country manager of Crown Indonesia. 

So the journey started there. So at that point of time, we were like the most troublesome operation in the group. In less than three months, we turned it around. And from being second last in the group, we became number three or number four.

So Indonesian team members are lovely people. Only thing is that they needed some help with some management, some expertise, some controls and systems. So we have put that in place and then things were fine. That's how the journey started. Then I was sent to integrate some acquisition in Europe for Crown. And then I did my MBA from Chicago Booth, Singapore campus. Later, I was in internal auditor for the group for three years from 2004 and until 2006. Then, I was appointed as a consultant for the group to integrate lot of financial controls into the company financial system. So I was reporting to the group CFO at that time and eventually came down to India in 2010. And in 2009, again the Lehman crisis started. 

In the beginning itself, you have been seeing different situations and have faced many crisis. So how could you manage all those things? 

Srinivas : Well, you see, instead of looking at problem as problem, you look at challenging situations. And when you come up in life a hard way, you find solution for every problem. You need to come out with solution from within. Lot of thinking. Make use of the resources without using consultants. And we have been able to handle these crisis, especially in emerging market because when you come up in an emerging market like India, it's much easier to find out solution to the problem, right? Even in Hyderabad,  one day when you get up, there could be no electricity. Sometimes there'll be no transportation. Your refrigerator will not work or your shower will not work. So we are used to handling crisis right from the child, right? So all you need to do is think out of the box without spending too much money on solution, which is in hand. And most of the solutions are within ourselves. All we need to do is find a way. Get it going. That's all. And that has become part of the culture. 

Plus you need to build up a good team, whether it be Indonesia or India. I had the privilege of really working with some wonderful people who took it over as the organization expand as a business complexity increase they all got to handling it, that's how we grew. Okay. that's how it has been. And in 2010 when I came down to India, I was in almost in the same situation as Indonesia was. So the only difference between Indonesia and India was in Indonesia, it was more of financial controls. In India, it was more of, you know management issues. So what happened as I went to all the customers talking to them, where are we going wrong? They said, Look, these are the areas. There are so many people who have left, get them back. And there was no talent in the industry in 2010 and. And so what we did is we created what is called a Crown University with the help of our trainers in US and Australia of Crown Offices, we got about 20 people selected from the market with promising outlook.

We trained them on the systems and cultures of Crown, and then we got the talent base. So when we did that the existing staff said, you know how can we have been ignored? We said, Okay, we'll give you some milestone and next year we had another Crown University program with 20 people around. So in a span of two years, we got about 40 people to serve the customer and address the demanding marketplace challenges. And from that point we started growing. And today we are one of the top operations of Crown Worldwide Group, we are well a very important player in the Indian market for records and relocations.

Could you please explain about the expansion plans of Crown Worldwide Group in India as well as outside?

In addition to be in-charge head of South Asia, I will be also be playing a part in the growth of the Group. I can give you some perspective on plans in South Asia. We are going to see the type of business we are in as such that it requires a lot of investment over long period of time. If you lease a facility or a warehouse, the maximum, period you can lock yourself in for five years and then after five years you are exposed to various things like some landlords may increase the rents, who might refuse to vacant. So all that investment will go waste. So until today, we have three facilities, which is built by Crown and is owned by Crown. 

One in Mumbai at Taloja and two at Chennai. Now we are trying to expand beyond these locations, so we are going to have our own facility in Bangalore, in Coimbatore , in between Mumbai and Pune which is at Khalapur. We are going to have our own facility in Hyderabad, in Delhi, where we can invest over a long period of time. For example, if I have to create a state of the art solar facility, right the pay on these investments are over 15 years. So when you own your own land and you build your own facility to customize it in with the demanding marketplace, you are able to bet on long term investment. So we are going to invest about 25 million dollars (USD) around the next five years building our own facility. Then until now, we were only doing our business in relocations and records management. So we are going to expand into warehouse space management. We're going to expand into Fine Art. We are going to focus on tier two cities to grow our business. We're already there in Bhubaneshwar we'll be expanding further in Bhubaneshwar. We're already there at Ahmedabad. The third one we opened recently in Chandigarh in March. In addition to investing, we have some promising managers.

To handle the growth challenges, we'll be taking training right up to the ground level. We are one of those few companies who invest heavily on people. So we, we take care of people, we invest in their mental wellness. So we have got programs to ensure that we have got a voice to hear and provide solution. So we have got psychologists who are appointed to address the needs of personal issues that many of the workers and staff may have on confidential grounds. So those are little things we are planning going forward. 

You believe simplification is important, right? 

Srinivas: You need to look at solutions, simple solution. So obviously simplifying complexity is the need of the hour in any logistic business, especially in India.

What are your investment plans for the next couple of years? 

Srinivas: We are looking to have our own facilities. Bangalore where we are at present leasing aid. 

You are planning to acquire properties in Bangalore, Coimbatore, Mumbai Delhi and Hyderabad. Could you please tell us on Crown’s contribution for Make In India program? 

Srinivas: Well, we are not in the manufacturing business. In the last 12 years we have built about 20 warehouses to suit our requirement. It's a scientific process and we have enough experience and know how to ensure that right from the location. Selection of design to future expansion. We knows what goes into the construction of ware house. What goes into the sophistication of the layout and structure? So we will be supporting the Make in India through logistics business.

What are the core values you believe in bringing the company to the next level? 

Our brand values are essentially, what was told about 10 years back? We are, first of all open minded, we are caring, we are sharing any new practice. We are there for our customers anywhere in the world, and we are determined to handle any challenges that comes up if you see in the last 12 years or so, since I came to India. First of all, you saw there was a change in the government. Then we saw there was a devaluation in Indian was 40 Rupeesin 2010. Today it is 79. Right? Then we saw demonetization in 2016. Then we saw in 2017, there was GST introduction and now the government has come out with QR code.

So we have faced so many challenges, but since we have a good team who are there to handle any problems that are cropping up. We have become well versed in handling this. Plus we are heavily going digital and we are also coming out with digital products to serve the marketplace. See, the mantra is very simple. Either you digitize or you die. And digitization is the bridge between current and the future. So not only are we digitizing ourselves, we are also coming out with digitized products for our customers, not only in India because of the connectivity. We are also serving, planning to serve other Ccrown offices through digital products that we are generating here and selling it through other crown offices.

Do you believe that digitization and digital pro products will serve the problems of the clients? 

Srinivas: Especially in a place like India, which is so vast and diverse, the only way to reach the last mile is to ensure that we digitize so that we can increase the pace at which we can grow. You have already seen the number of development that has happened in the digital marketplace, like India has increased digitization to a level which was unbelievable, whether it be during pandemic for vaccination certificate or for registration through united payment interface. So that is a way in which we have to go. And I think India as a country is setting up an example for other countries to digitize. When India started, it was part of the problem. Today we are far ahead and the way in which we are growing due to the digitization program I think it is just the beginning. The world will quite be inspired by what we are going to do as a country and in Crown we are trying to imbibe part of this digitization habits, by ensuring that we evolve the way in which we do business through digital channels.

Change in the government, devaluation, demonetization all have affected users in any of the ways. 

Srinivas: As I said, you know, we have got used to the habit of surmounting these problems. Coming out with solutions we invest in training, all our managers have become quite well versed. These situations that need to be resolved and we need to work, right? So, because we have got this culture of handling these situations,  we've been able to overcome these and yet grow substantially in the last 12 years in India.

So what kind of facilities do you provide for mobility? 

Srinivas: Well, first of all, we help people relocate. If suppose you are in Hyderabad, and if you want shift to Rajahmundry. We help you shift your personal stuff from Hyderabad to Rajahmundry. Then suppose if somebody from Hyderabad is shifting to for example San Francisco for a software job so we help them shift their household effect from Hyderabad to San Francisco. And suppose if they have a very big house in Hyderabad and they have to let it out because, you know, if they're going to be away for three years. We first of all, help them to shift those personal belongings hat they need to take to from Hyderabad to San Francisco, not all the goods can be taken to San Francisco right? So we help them store some of the goods that they have left behind. We pack it and escort it in our facility. And when they go to San Francisco, we help them process the visa and help them get a house. we help them find a house for their children, find a school for their children to study, and then we train them on the cultural aspects of how to live in newest. So those are the mobility side of business that we do. 

For children also, you arrange schools and everything there?  And to whichever place they relocate? 

Srinivas: Yes, in most of the locations we work with partners there to ensure that before the family settles down, the children's schooling is arranged. 

Are your services affordable to everyone? 

Srinivas:  Well, yes and no. Yes, because say, India is still in the process of understanding the basis of value, right? What we need today, time is money, right? Peace of mind is the key. So some things are more valuable than the cost incurred because you would rather focus on setting yourself then thinking how much am I paying? So to that extent, we are at the premium end of the market. We are trying to up the sentiments of the consumer by trying to educate them. There are things which are much more valuable than just the cost you pay. It is your peace of mind, which is very, very important. It is your time, which is money. Time is money. You can focus on your job while we help you settle down. 

Definitely everybody will come forward to pay how much you want because peace, as you said, peace of mind is quite important.

Srinivas: Yeah, and today you know, every business is getting quite complicated, competition is on rise. So what we do is we let them focus on the business so that they can grow and they can rise up the hierarchy while we take care of their administrative issues like three locations and management of records and mobility, etc

What are the most successful projects you have handled to date?

Srinivas: Well, almost everything that we have handled because we put a lot of time thinking about the implications of going big. We have a well constituted board who rigorously analysed any proposals that we go forward with, like in Chennai in 2013 now, which is full today. Similarly, we have our own facility in Mumbai. You already heard about the Crown University in program, right? When was indicated that the service was not up to the mark, we created a university to put up a talent base. So after that, we were able to excel in the marketplace without acquiring any new company. We organically grew, plus we had. From other group offices, which were given to us, and our team in India was able to excel in serving the customers. 

So that's great. Like you work with a group of expert partners who understand the value of your work?

Srinivas: We do, especially outside India, and especially when the volume picks up during the peak season, what we do is we work with service partners to handle the excess flow, but then when we work with service, we just don't outsource it. We have our own people who monitor what they're doing to ensure that the brand value is,

Explain us the sustainability methods you are following

Srinivas: First of all, it starts with diverse workforce, right?  We have a lot of women working ed in our company at all levels. Then when we came out with our own facility in Chennai. There is rainfall, which sort of falls on the roof of the company. What we've done is we have engineered to channelize water into a reserve, which can be reused. Then we have solar power facility installed over our roof tops, which we are getting ensured that they are made of sustainable materials. We ensure they don't use plastics. We are encouraging people to go for sustainable practices. We are changing our vehicle from diesel and petrol to electric. So these are little, little things which we are doing in our way to ensure that we are going green and we are trying to make environment a better place to live in.

So that's a great initiative. Future growth opportunities for the industry.

Srinivas: we are trying to create horizons for growth. As I said, our step towards digitization. And coming out with digitized products to ensure that we are able to cater to the growing complications in the marketplace, more people leads to more challenges, leads to more obstacles. So what we are trying to do is trying to ensure that we are able to digitize the products, which will help them to set aside complications by standardizing things like in the past. Even now today, most of our customers are served physically through the record. So what we are trying to do is we are trying to put it in the cloud and we have a document management system, which will help them to access the data from cloud for their future. So during pandemic, it was quite handy, right? People were not able to come to the office and work. So what we did is we were able to help them access the data that they put in the cloud through the document management system.

How is it working during the pandemic and after the pandemic and before the pandemic? What are the challenges you have faced during the time of pandemic and now how you are dealing with those things? 

Srinivas: Excellent. Well, during the pandemic, first of all, we did not lay off any staff members. Because it was not their fault. Second, you know, we really treat people as they are important assets. So when we treat people as important assets, we did not lay off any employee. We did not furlough anyone. We did not delay any vendor’s payments. What happened is post the pandemic, all our employees are giving more than their best. All our vendors are able to honour our service demands without any hit. We are able to grow faster than before the pandemic. So we are very, very concerned about our stakeholder’s welfare as well.

We don't allow any vendor to suffer delayed payment. We pay them on time. We pay the salaries of staff on time. We are quite committed to regulatory responsibilities. So post pandemic because things are picked up and growth has started, we have been able to sustain our growth and ensure that we are able to seamlessly maximize the value to the shareholder.

It's very great to hear that there are no layoffs after the pandemic as well from your company.

Srinivas: And that's an advantage. Caring is one of the five brand values. You asked me what are the values right. And when you are caring for the environment, caring for the community, you care, caring everyone, right? See, personally, I am a fitness freak. I care for myself. I go for fitness, so four or five times a week. So when that habit of caring is inculcated into your system that becomes a culture of the company and the most important thing is the culture. Unless you create that culture where everybody believes and acts in the uniform way, it's very difficult to run a business today. So thankfully all my team members exactly practice what we preach and that is why we keep on hiring and we are on a growing spree.

What is that one suggestion you would like to give? Those who are willing to join you. 

Srinivas: Well, they need to be, first of all two things. Learning is a continuous process, so you need to be a lifelong student. Second is you should not be intruded by complications because when you are joining an organization, you are joining to solve the customer challenges and problems? So you just need to be open minded and use the learning to solve the problem. So that’s what my mantra is. 

Would you please explain us on the financial performance of the companies and guidelines for the coming couple of years?

Srinivas:  So we are a private company. We can't diverge any financial numbers, but I can tell you that we're going at 20% every year and the future has never been so great if you know India 10 years ago, Right? Thanks to the neighbouring country issues. So infrastructure is being developed quite well. So we are gung-ho about how we are going to keep growing in the future. We are looking at new businesses which I already told you about. And warehouse space management, etcetera. So we will be growing quite well and we'll be taking our board guidance on areas where we need their assistance and advice. And then the growth journey is on next 10 years. Definitely we are promising outlook.

If you say about Crown Worldwide Group then what is its position in India's market?

Srinivas: Well, we stand for quality. We stand for reliability. We stand for speed and we stand for sustainability. In other words, see we are one of those companies who have CRISIL rating, which has been progressively increasing.  So even after me and my team are gone, the company will continue to serve the marketplace because that is a credibility enhance. When you have a rating, continuously being improved by a rating company the customers need not worry about what will happen after it goes or management team goes. It's a culture that we doing, plus we are one of the few companies with a high engagement index. Our engagement index is 90 plus, which means our staff are loyally committed to ensure that they are excelling in the workplace because whatever improvement we make, whatever investment in people we make, we make it based on the feedback from them. We listen to them, we act upon their request reasonably. And we don't let any black swan events affect their carreier. So most of our staff are quite loyal towards.  My average staff tenure is about seven years. Most of my managers on an average have been with me for 10 years. There are many managers and staff who are into that second and third stintate because they were working for us. They went out there and then they came back seeing. It's not bad looking at the way other companies are treating them. So what can be better than having our staff coming back to work for us? 

So what are the new training programs that you offer for the employees? 

Srinivas: Well, we expect everyone to be digitally savvy. We encourage everyone to teach philosophy to ensure we are able to automate, we're able to delete what is not required. We're able to turn around challenges into opportunities and we are able to reduce the turnaround time involved in serving customers, either in terms of processes or in terms of using technology to cut through the problems.

Well, as I said, see personally, I've been a lifelong learner. I don’t know if you've seen my credential. So I encourage to learn. And when you keep learning regularly, you know, you don't feel the pinch of problems that you encounter. To enjoy the journey you need to ensure that you get out of the comfort zone and that's where the growth lies. Until now, we were looking to become successful going forward, we are trying to become significant, so the jump from success to significance is something which we need to enjoy. So that's what it is.