Navigating Alcobev State-Specific Regulations Comparable to Operating in 25-30 Countries: Shelly Kohli
Ashima: Is alcobev an industry mired in regulations and compliance? Can you share how this industry differs from other FMCGs and how you as a GC support the business?
Shelly Kohli: As a federal state, India follows a decentralized division of power. The centre and states rule upon matters in their respective domains as specified in the Constitution of India through inclusion in the union (central), state, and concurrent lists. ‘Liquor’ forms a part of the state list under Entry 8 of Schedule VII, thereby allowing each of the state governments to implement their own excise policies.
Considering that the production, manufacture, possession, transport, purchase, and sale of alcohol is within the remit of the state – this is what creates an intricate and complex web of state specific rules and regulations. The experience is akin to operating in 25-30 countries. There is a myriad of controls that the State Excise authorities exercise on the entire value chain. Further, most of the state regulations require to be updated – they are currently archaic and obsolete. There have been radical changes, like in the beer manufacturing processes, technologies and the manner of operating breweries over several years. However, the regulations which would have been enforced in the past, to have control over manufacture and sale of liquor/beer are not relevant in the current context, creating an ease of doing business challenge.
To ensure that the legal function is effective and supports the business in navigating the complex regulatory landscape, my team and I are continuously striving to:
i. Stay well-informed and up to date on the extensive collection of state-specific laws, rules, and regulations.
ii. Cultivate an adaptable mindset that allows us to handle conflicts in a cooperative manner.
iii. Embrace a proactive approach to compliance.
iv. Be ready to make tough yet timely decisions to overcome unexpected challenges.
Ashima: Looking ahead to 2024, what legal developments are top of mind for you and why?
Shelly Kohli: Over the years, we have witnessed a paradigm shift with increasing regulation. While the current regulatory framework is more stringent and complex than ever before, the technological advancements and socio-economic changes necessitate an intricate web of law and regulation.
Some of the areas that are top of mind in terms of legal development are:
Technology laws & regulation: Increasing pace of technology advancements, legal issues around data privacy, cybersecurity, artificial intelligence (AI), blockchain, and digital currencies will continue to gain prominent. Companies will have to adapt and navigate these new regulations and compliance requirements in these areas.
Environment laws & regulations: Climate change concerns continue to drive attention to environmental regulations and sustainability initiatives. Legal developments related to environmental protection including carbon emissions, renewable energy, waste management, will continue to have significant implications for how businesses operate.
Data protection & privacy: Given the increasing importance of data privacy, any updates to data protection laws, such as the DPDP should be closely monitored.
Ashima: What are some of the biggest challenges you face as CLO/GC in today's global legal climate?
Shelly Kohli: Firstly, risk mitigation considering the constantly evolving legal landscape when one needs to handle new crises and legal conundrums. Additionally, the changing dynamics around social, economic, and political climate pose unprecedent business situations and great uncertainly, when businesses look at in house legal departments for informed judgements and guidance.
Secondly, building capabilities beyond the realm of a pure legal role. Modern day general counsels need to align and work with a vast functional range of stakeholders, from audit to executive management and from human resources to media/communications. A general counsel role has evolved to serve as strategic business advisors to business heads and Board of Directors, who look to them for perspective and assessment of risk and trends that may impact business. These nonlegal capabilities are crucial to a general counsel’s success in today modern-day business environment.
Thirdly, rising workload and budgetary constraints are a norm, today’s GC are under constant pressure to ‘deliver more with less’. Therefore, driving efficiency is key focus area that includes improving productivity and processes to enhance the legal department contribution to strategic and financial imperatives of the organization. This includes deploying technology and defining performance metrics.
Ashima: UBL has recently launched a lager beer called Queenfisher in March in Goa? Was this conceptualized as part of the org's DEI efforts? How is a decision like this appraised and assessed at a GC's desk?
Shelly Kohli: Queenfisher, is a product born from the ideas and efforts of a team comprised entirely of women. That includes every aspect of its creation, from the formulation of the unique Queenfisher can to the brewing of the beer itself. Initially, this concept served as an internal platform aimed at recognizing and motivating our female employees, acknowledging the fact that working in the Alco-Bev industry is often seen as an unconventional path for women.
As time went on, we recognized the potential for this concept to grow into a platform that promotes inclusivity and diversity, not only within our workforce but also among our female consumers. Today, Queenfisher is celebrated as a symbol of friendship and the strong bonds that women form from an early stage in life, whether it be with our mothers, sisters, or friends. These relationships serve as invaluable support systems that guide us through life's journey.
As a woman leader, I see initiatives like Queenfisher as powerful catalysts for driving conversations about diversity, equity, and inclusion (DEI) to the forefront. In my perspective, it is crucial to recognize that personal choice should be the determining factor in one's path, rather than succumbing to the limitations imposed by gender stereotypes.
Ashima: Let’s turn the wheel of time, what sparked your interest in law and drew you to the role of a general counsel?
Shelly Kohli: For me, the path of attending law school and eventually transitioning into an in-house role as a General Counsel felt like a natural progression. Looking back, I had a strong interest in Political Science and Economics during my school and college years, and over time, those interests converged and expanded. Furthermore, I firmly believe that lawyers are inherently inclined to be leaders due to the skills and attributes they possess. Lawyers often exhibit qualities such as good judgment, effective communication, analytical thinking, empathy, negotiation prowess, influence, conflict resolution abilities, high ethical standards, tact, and diplomacy. These qualities naturally align with leadership roles. Upon introspection, I realized that my inclination towards the legal profession was reinforced by my early involvement in student leadership positions. I used those opportunities as platforms to spearhead initiatives that were groundbreaking for their time and location. This experience further solidified my gravitation towards the legal field.
Ashima: Who are some legal professionals you admire, and why? What lessons have you learned from them?
Shelly Kohli: I have been fortunate to work with some exceptional legal professionals who have greatly influenced my perspective and mindset. While I was employed at General Electric, I had the privilege of working with Tejal Patil, who currently serves as the General Counsel for Wipro. Tejal is an extraordinary leader, possessing a remarkable blend of commercial acumen, strategic thinking, and a solutions-oriented approach. During my tenure at Hindustan Unilever, I had the opportunity to learn from Dev Bajpai, an exceptional leader who not only possesses exceptional leadership skills but also serves as a thought leader in legal policy and reform. Through interactions with both these legal luminaries, I acquired the ability to be a strategic business partner, consistently surpassing the boundaries of my functional role.
Ashima: What are your hobbies or passions outside of your legal work? How do they help you unwind and recharge?
Shelly Kohli: I have a passion for gardening, running, and practicing yoga. I enjoy a wide range of music, from Indian classical to English rock. Traveling and indulging in murder mysteries are also among my favourite pastimes. While balancing the responsibilities of home and work can be challenging, I believe it is essential to carve out some downtime in order to effectively manage multiple priorities and demands on one's time. Taking moments to relax and recharge is crucial for maintaining a healthy and balanced lifestyle.
Ashima: If you could leave our readers with one actionable piece of advice to advance their career or personal growth, what would it be?
Shelly Kohli: My advice would be to embrace opportunities: be open to new challenges and roles. Sometimes lateral moves or stepping out of your comfort zone can lead to personal growth. Remember that success isn’t always linear. Adaptability and resilience are key qualities to cultivate.
