NIRMALKUMAR RATHI
Vikrant Sharma
Vyoma Kesharwala
Anurup Mukherjee
Satyoki Chatterjee
Goa Institute of Management
Divya Singhal
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Speaking to us, Mr. Mishal spoke about the progress and initiatives Magsons has taken. He shared that “Magsons initiatives towards innovation are focused on two aspects. The first innovation focuses on supply chain optimization and the other focuses on banning the use of plastic bags that promote environmental well-being."
The supermarket chain is working towards centralizing its procurement and distribution systems through a common warehouse. This in turn reduces the use of commercial vehicles thereby reducing the emissions affecting the environment.
Mr. Mishal communicated that "banning the use of plastic bags by introducing paper bags and 40 micron plus recyclable plastic bags are the scalable initiatives, which are not only restricted to the local market but can also be practiced nationally.”After taking over as the CEO of Magsons group, Mishal Maganlal’s vision was to develop a sustainable model of business. He came up with multiple innovative ideas to optimize the business processes.
Centralizing its procurement and distribution systems through a common warehouse, he started working on the introduction of four new stores each spanning not less than 15000 square feet and catering to specialty food - raw, cooked and packaged. This was followed by an introduction of a B2B model for the trading community in food and related goods and the introduction of e-tailing (e-commerce retailing) vertical within Magsons Group.
Magsons was one of the first private retail houses to ban use of plastic carry bags in 1995. There was a shift in the use of paper bags, recycled newspaper bags and cloth bags from the traditional use of non-recyclable plastic bags. “We initiated the empowerment of using the underutilized labour force of prison inmates and old age homes to prepare recycled newsprint bags. Magsons is also one of the associate of the Corporation of the City of Panaji for its “Waste-Wise” initiative. This ensures the company’s responsible behaviour towards the environment and climate action.
The inspiration came from the company’s ethos laid down by the founder for incorporating social responsibilities in their business model. Mishal’s father and mother were attached to Asha Deep school. It was a school for the mentally challenged children. The partners are the trustees of New Dawn Charitable Trust, that runs “Asha Deep” at Deep Vihar. “Magsons gave full financial to support this cause. Magsons empowered the alumnus of Asha Deep school with employment opportunities.”
Innovation in the sector of the supply chain is helping the company to earn extra profit along with reduced effect on environmental pollution (eliminating multiple shipment movements from the distributor to the warehouse and then from warehouse to retail stores by directly supplying to the retail stores).
“The no plastic initiative started in the Magsons group, spread to the local grocery markets in Mapusa and Bicholim. This helped in spreading more environmental awareness among the society as well”, said Mishal.
“The major benefits went to the common people as lot of employment opportunities were developed. Magsons took immense care of their employees as they considered them to be their inherent strength. The company also ensured that they maintained a good gender diversity in recruiting their staff. In places like Panjim, the number of women employees crossed over fifty percent. Overall the organisation boasts of women gender ratio of 40 percent.
The company is recognized in Goa for its vision towards helping the society and creating environmental awareness among the citizens. Their values have inspired Magson’s vision to promote women empowerment by giving a platform to sell the sanitary pad named “Sakhi” in their supermarket chains."
"The company also tries to maximize the use of natural light to reduce burden on artificial lights. During daytime, the stores operate with natural sunlight. As the sun sets, the stores promote the use of LED lights instead of conventional lights that would help in saving energy.
For mundane tasks, the company employs students passing out from Asha Deep school, which helps to promote decent work opportunities and thereby boosts economic growth along with reduced cost of hiring employees from outside."
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Mr. Mishal Maganlal, CEO
Magsons is guided by the core philosophy of being the best in the business, constantly innovating its offerings, focusing long term, doing what’s right for the customer and doing the right thing for its associates. In the year 1990, Magsons entered into the field of supermarkets by pioneering its first store at Miramar. In 2007, Magsons entered into a strategic tie-up with petroleum giant Bharat Petroleum Corporation Ltd (BPCL) to run their consumer “In&Out” Store at the Oasis Petrol Pump in the heart of Panaji city. In 2012, Magsons was invited by Hindustan Petroleum Corporation Ltd (HPCL) to take over the operations of a two-story convenience centre at their highway outlet in Nagoa, Verna. This store serves to the residents living in Margao and Panaji. In 2013, Magsons saw the addition of one more store to the Magsons stable, at Zuarinagar on the Dabolim-MES College Junction.1
“Magsons began in 1989 with a modest annual turnover of Rs 20 lakhs. Today the combined sales of the group across its 9 stores spanning an area of 25000 sq. ft is nearly Rs 40 crores.”