BLINDED BY A LOT OF SOAP, BUBBLES—AND TRADITION

Bertie realised that the real problem wasn't over-borrowing, but it was over-lending

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With the beginning of the sell-side conference season, a suited-up Bertie found himself shunting between hotels for corporate meetings. At one of the events, representatives from one of India's oldest consumer staples companies were describing their product innovations and extensions. They had thoughtfully carried a large hamper with samples of their wares which they were showcasing as they talked about them.

Being a visual learner, Bertie was revelling in this experience when the company representatives started talking about bathing soaps. "Good old soap. Nothing new there, right?" Bertie asked. The representatives exchanged a serious look as if to say, "Should we tell him?" Bertie sensed this and waited.

"Nothing new from us but our competitor is claiming a technological breakthrough." Now this got Bertie interested. "Technological breakthrough in bathing soaps?" Bertie could not hide his surprise. The representatives launched into how their main competitor had substantially reduced the palm oil content in the soap, which was giving them cost and hence pricing advantage.