From milk bottle washer to dairy industry king

(China Daily)
Updated: 2007-05-31 06:43

Niu Gensheng began his career at Inner Mongolia Yili Industrial Group Co Ltd (Yili) as a milk bottle washer in 1982. Because of his hard work and intelligence, Niu rapidly ascended to general manager.

But in 1999, Niu resigned because of irreconcilable differences with then boss, Zheng Junhuai. That year, he founded Mengniu Dairy Industry (Group) Co Ltd (Mengniu).

In eight years, the 48-year-old has transformed the company from the 1116th ranked dairy producer in China to number one.

Mengniu has held the milk market crown for four consecutive years, generating sales of 14.26 billion yuan in 2006, up 53.1 percent from the year before.

Up until 2004, the overseas market remained untapped for the dairy giant. Since then, Mengniu has made inroads into Hong Kong and Taiwan and some Southeast Asian nations by joining forces with overseas players like Danone, Arla Foods and Hong Kong Disneyland.

Still, the overseas market contributes just 10 percent of Mengniu's sales.

Niu recently sat down with China Daily reporter Ding Qingfen to talk about his experiences.

Q: In January 2006, Yang Wenjun succeeded you as Mengniu's president. How has your role changed since then?

A: I am now concerned about macro-level changes, such as brand promotion, culture management and corporate strategy. I also closely watch quality-related details that are easily ignored, yet could harm consumers, tarnishing or even destroying our reputation overnight.

Q: What is the corporate plan for 2007?

A: First of all, Mengniu will add muscle to research and development initiatives, developing more innovative, high-quality and nutritional dairy products to meet more discerning public tastes.
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