Академический Документы
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Культура Документы
A THESIS
Submitted by
L. SURESH MALLYA
for the award of the Degree
of
DOCTOR OF PHILOSOPHY
AUGUST 2011
ii
BONAFIDE CERTIFICATE
(Reg. No. MNG 007 D 001), who carried out the research under my supervision.
Certified further, that to the best of my knowledge, the work reported herein
does not form part of any other thesis or dissertation on the basis of which a
candidate.
DECLARATION
Research Institute University for the award of the degree of Ph.D is a bonafide
record of research work carried out by me under the supervision of Dr. N.R.V.
Prabhu. The contents of this thesis, in full or in parts, have not been submitted to
any other institute or university for the award of any degree or diploma.
ABSTRACT
referred in this case study method. Out of the available entrepreneurs in India,
these few (fifty) successful entrepreneurs, who had their investment options
Indian entrepreneurs is carefully selected for the study. The methodology chosen
is case study method; their history is studied in depth, the factors deciphered as
categorically to the government, to the banks and other financial institutions and
to the entrepreneurs.
vii
ACKNOWLEDGEMENT
and Guide, Dr. N.R.V. Prabhu, for his committed supervision and guidance to
acquire right perception and perspective for carrying out this research. But for
his patience and time spared for discussion, I would never have been able to
rendered by my wife.
Mr. A.C. Shanmugham, for his motivation and encouragement. I also owe my
sincere thanks to Dean (Research) for providing the infrastructure and help to
carry out the research. I am grateful to all the staff colleagues of my department
L. Suresh Mallya
viii
TABLE OF CONTENTS
ABSTRACT iv-vi
LIST OF TABLES
CHAPTER 1 INTRODUCTION
2.1 Introduction 11
3.1 Methodology 58
63
3.2 Reasons compelling entrepreneurs to enter industry
65
3.3 Factors facilitating entrepreneurship
67
3.4 Expectations of entrepreneurs
68
References
72
CHAPTER 4 CASES STUDIED
73
CHAPTER 5 FINDINGS AND SUGGESTIONS
167
BIBLIOGRAPHY
202
VITAE
i-iii
xi
CHAPTER 1
INTRODUCTION
Act as a change agent to meet the requirements of the changing markets and
customer preferences.
Ambani, Ruia, Azim Premji, Murthy, Siva Nadar etc. Scanning their personal
characteristics show certain prominent traits:
Undying optimism for a future and not disturbed by others and follow their
own route.
Good foresight to visualize the likely changes in the business and taking
timely actions accordingly.
Ability to bring together all the resources required for starting the enterprise.
who frequently lacks both technical and business skills, to serve as the major
link in the process of innovation, development, and economic growth and
revitalization. The study of entrepreneurship and education of potential
entrepreneurs are essential parts of any attempt to strengthen this link so
essential to a countrys economic well-being.
The Indian entrepreneurs selected for study are based on the conditions
that they have started their career either as low level employees of some
organizations or started their venture with their own meagre investments. They
are their own masters, in the sense that they did not have back up from their
family members either in the form of financial support or inheritance of family
wealth. They started their own enterprise with a humble beginning, and slowly
and steadily picked up their business purely due to their entrepreneurship
qualities. They faced hardships in course of their growth, but never gave up. The
ingenuity and the spirit of entrepreneurship always kept up their hopes and
confidence and eventually proved to be successful entrepreneurs.
xix
To summarize the findings of the study and establishing as bench mark for
future entrepreneurs to be successful
CHAPTER 2
2.1 INTRODUCTION
Several studies have been made in India and abroad on specific aspects of
the field of entrepreneurship. The researcher is interested in presenting here a
few studies from India and abroad relevant to the objectives of the present study,
namely, to identify the success factors behind the successful Indian
entrepreneurs.
J.S. Saini and B.S. Rathore (2001) in their book titled Entrepreneurship:
Theory and Practice, deal with entrepreneurial philosophy, where the success of
entrepreneurs has been discussed. According to the authors, success of an
entrepreneur depends on the entrepreneurs willingness to hold responsibility for
his own work. Though the risk of failure is always present, he takes risks by
assuming responsibility for his actions. Learning from past experiences will help
channel his actions to obtain better results and persistent efforts will yield
success for sure.
James J. Berna (1960) brings us to the issue of the appropriate criteria for
evaluating entrepreneurial activity in under-developed countries. A country with
little or no industrial tradition can hardly produce innovators capable of
xxviii
The above qualities sum up, what is usually implied from the phrase, the
spirit of enterprise. It is difficult to conceivers of a first-rate industrial
entrepreneur who is not adaptable to change, anxious to grow large and improve
xxix
execute. They are able to assemble the required resources, risk uncertainties and
face challenges.
The findings of the research also suggested that most of these PECs are
cross - culturally common, irrespective of personal background of the
entrepreneurs, their social status, values, culture and the level of economic
growth of the society. This research showed strong evidence that the success of
an entrepreneur in a small business hinges upon these PECs which include a
cluster of competencies pertaining to achievement motivation the concept used
by EDI-I in the selection adopted and spread to other parts of the country.
Characteristics Traits
A person may not have all these qualities, but the more one has, greater is the
chance of being an entrepreneur.
5. Tends to be innovative
every entrepreneur may not have all the characteristics as generally believed to
have. In fact, there is no research to indicate this. However, it may be that the
more these characteristics are present in a person, the more effective he is likely
to be an entrepreneur.
Joseph Prokopenko and Igor Pavlin (1992) draw a rather not so rosy
picture about the entrepreneurship development activities in public enterprises.
In view of the limited entrepreneurial practices and opportunities inside the
public sector, in particular in socialist economies in the past, a systematic effort
should be made to develop endogenous entrepreneurship. Many researchers of
western business, among them for example, Peter Drucker, point out that
entrepreneurship and entrepreneurs can be developed through conscious action.
According to this view, the development of entrepreneurs and entrepreneurship
can be stimulated by a set of supporting institutions, by deliberate innovative
action stimulating change, and above all charging the management of existing
corporations with the responsibility of new products and spin-off firms by giving
full support to capable individuals and entrepreneur groups. While the role of the
individual with innovative ideas and sufficient drive is still emphasized, the
purposeful and systematic management of this process is also of key importance.
As a result, different methods for the development of entrepreneurship have
been tried, ranging from entrepreneurial training courses at different educational
levels and management/employee buy-outs, to new business incubators.
B.S. Rathore and S.K. Dhameja (2000) outline the challenges the future
entrepreneurs have to face in this century through their book Entrepreneurship
in the 21st Century. The future entrepreneurs will have to face considerable
challenges and severe competition not only from domestic industries, but also
xxxviii
Attempts have been made by social scientists to find answers to the above
questions. The vast amount of research which has been generated as a result of
tremendous interest in the field of entrepreneurship and entrepreneurial
behaviour is generally related to sociological and socio-psychological aspects of
entrepreneurship.
On the final analysis, the role of the characteristics associated with the
success of entrepreneurship personal, social and psychological, individually or
in combination, stands out significantly. And it appears possible and perhaps
necessary to develop ways and means of identifying potential entrepreneurs who
could be encouraged and supported on a selective basis. It is not suggested that
one could arrive at a universally applicable and invariant portrait of an
entrepreneur. But what is advocated is the view that in every society some
people possess entrepreneurial qualities to a greater degree than others. And
these people have to be involved to take advantage of developmental activity.
While entrepreneurial behaviour can be readily identified as a common pattern,
the underlying roots of such behaviour seem to vary from culture to culture. A
more conclusive picture will emerge only out of well planned research efforts in
different countries, individually and in coordination.
The current job and the financial and family circumstance, as well as
other factors, help to determine the attitude towards being entrepreneurial. He
has various obligations and commitments to himself and to others, including his
family, employer and employees, friends and other community members. If he
has too many commitments and responsibilities outside his work, he will find it
difficult to be entrepreneurial. In planning for the future he has to be realistic in
determining those things that can be changed and those that cannot. His past
experiences should help him to understand better his present situation.
The entrepreneur in this context is defined as one who could start a new
activity or a new enterprise which is a deviation from his traditional family
occupation or profession. Entrepreneurship can also be thought of as a creative
activity. The entrepreneur is an innovator who introduces something new into
the economy a method of production not yet tested, a product with which
consumers are not familiar, a new source of raw material, or a new market
hitherto unexplored and other similar innovations.
Social entrepreneur plays the role of change agents in the social sector by:
addition to the GNP and off late e) Techno-economic reliance through economic
liberalization and industrial globalization by way of turning mixed economy into
market economy.
Mario Rutten and Carol Upadhya (1997) in their book Small Business
Entrepreneurs in Asia and Europe, Towards a Comparative Perspective,
highlight the general features of entrepreneurs engaged in Asia and Europe. The
authors quote Harvey (1989) and others who have argued that the growth of
small scale and rural based entrepreneurial classes throughout Asia and Europe
may be related to the profound transformation which has taken place in the
capitalist world system during the last two decades. Many of the small
enterprises, both manufacturing and service-oriented, are linked to larger
companies through sub-contracting relations.
Neither innovative genius, nor hard work, nor even luck is in itself a guarantee
for corporate success. Assuming that all these are present in the new venture in
at least trace quantities, the missing catalytic element often seems to be what we
might call the entrepreneurial state of mind. It might be characterized as a
degree of tough-mindedness that stops somewhere short of combativeness, a
confidence in ones intuitive as well as ones rational faculties, a capacity to
think tactically on ones feet, as well as to plan strategically in the business
school sense; an aptitude that senses timely action based on sometimes
inadequate information, ahead of prolonged fact-finding; a mental set stressing
integration of many facts into action plans, rather than endless differentiation
and analysis.
In order to know at first hand the factors which have led to the promotion
of entrepreneurship in small scale industry sector, a study was conducted by B.S.
Batra (2002). This led to an in-depth analysis of the socio-economic profile of
entrepreneurs and the various factors of promotion, success or failure of
entrepreneurs.
factors, incentives to set up the new units prompted many to enter into
entrepreneurial activity. Heavy demand for the product, high profit margin and
other external factors motivated them to start the business units in the states.
Among the internal factors, strong urge to do some independent job accounted
for a major chunk. The analysis of personality factors indicated that
competencies of entrepreneurs and risk taking ability have been a major
motivating factor.
entrepreneurial skills. It is true to a large extent that whatever the various states
have been able to achieve is mainly due to the efforts of the entrepreneurs.
G.R. Basotia and K.K. Sharma (1999) explain the role of entrepreneurs in
developing enterprises in their handbook on entrepreneurship development. An
entrepreneur has to coordinate and control various factors of production for
achieving a given objective. All factors are equally important for making the
enterprise a success. Various departments should work in coordination with one
another and organizational and financial planning should be properly
determined. Modern business has become complex and complicated. The
improvement in technology and changing consumer preferences are creating
more challenges for the entrepreneurs. All aspects of an enterprise production,
financing, marketing etc., should be properly arranged and coordinated to make
an enterprise successful. Some pre-requisites for the success of an enterprise are:
Setting objectives, Proper planning, Sound organization, Proper location and lay
out of plant, Marketing and distribution and Dynamic leadership.
J. Gayathri (2009) quotes Tata, Birla, Modi, Dalmia, Kirloskar and others
as examples of successful entrepreneurs, who started their business enterprises
xlix
with small size and good fortunes. Success or otherwise of a small enterprise, is
to a great extent, attributed to the success or otherwise of the entrepreneur
himself. What makes them successful? Whether they have anything in common
in their personal characteristics? The scanning of their personal characteristics
shows that there are certain qualities of entrepreneurs which are found usually
prominent in them. The principle characteristics identified are: hard work, desire
for high achievement, highly optimistic, independence, foresight, good
organizing and innovative mind.
This finding can be taken together with the third of the three significant
favourable factors, which was perception of business opportunities, those who
could see good opportunities were three times more likely to be an entrepreneur
than the rest. Another major factor influencing the level of entrepreneurial
activity was how easy or difficult it was to become an entrepreneur in other
words, the level of official and administrative burden that an entrepreneur has to
cope with. Also other factors to be reckoned with were costs an entrepreneur had
to face, both at the start up and during the operation of the business and the
availability of funding for entrepreneurial activities.
one who started a business with his own money or loan money- irrespective of
li
Dr. Vasanth Desai (2008) in his book Small Scale Industries and
Entrepreneurship, comments that the characteristics of an entrepreneur that
contribute to success are the result of his achievement motivation. A successful
entrepreneur is a person who has started the business where there was none
before. He is essentially an enterprising individual who is able to recognize the
potential profitable opportunity and who initiates to produce marketable
products by combining the various technologies and through organizing together
the people, finance, material resources marketing tools, in order to ultimately
translate the idea in the minds to physical realities. In short, entrepreneur is a
lii
According to research studies, there are more than fifty personality traits
and all these traits, attributes and attitudes constitute the characteristics of a
successful entrepreneur. Though all the characteristics cannot be found in a
single entrepreneur yet the presence of greater number of these characteristics in
an individual makes him an entrepreneur and only then it is possible for him to
be successful to achieve the goals of entrepreneurship. Some of the
characteristics or qualities of a successful entrepreneur are as follows: Need for
achievement, Risk taking, Need for independence, Sense of effectiveness, Social
consciousness, Need for extension, Optimistic, Open minded, Non-fatalist, Low
affiliation, Pragmatist, Aggressive, Commitment and conviction, Capacity to
analyze, Initiative, Hopeful, Efficiency, Technical competence, Good judgement,
Intelligence, Leadership qualities, Self-confidence, Energy, Creativeness,
Fairness, Honesty, tactfulness and Emotional stability.
economic and social environment, the factors responsible for his decision
making in the process of expanding of his business, entrepreneurial aspects of
his philosophy pertaining to management, personal relations, product choice,
and developing expansion and diversification.
minded devotion to the objective set before oneself and perseverance also can be
counted as important contributory characteristic of BDG. He is imbued with the
true entrepreneurial spirit to take up challenges and pursued them with a
practical approach. He is a man of vision and persistent and willing to put up in
any amount of hard work.
R. Setty (2004) draws our attention towards the potential and challenges
for women to become entrepreneurs. Woman has been the economic partner of
man in several fields but when it comes to entrepreneurship, man seems,
outwardly, at any rate, to dominate the entrepreneurial world. Entrepreneurship
is not simply a masculine job as army or navy. She, too, is equally endowed with
the psychological qualities and managerial abilities that matter in successful
entrepreneurship. Sometimes, the environment and opportunities are the same
for both man and woman. But interestingly, the entrepreneurial activity in the
traditional developing societies has been restricted to man.
The difficulty of screening and devising incentives is far greater for some
qualities than others. Among these scarce qualities, the most difficult to screen
for are imagination and foresight. It follows that these qualities are essential to
lvii
All entrepreneurial qualities are to extent innate. However, not all of them
are entirely innate. Some can be enhanced by training or simply be experienced.
For example, analytical ability and computational skill can be enhanced at
school and university, while practical knowledge and search skills can be
enhanced by general experience of every day life. Entrepreneurial careers will
be strongly influenced by the desire to enhance qualities which are scarce, yet
difficult to obtain through delegation because of the problem involved in
screening for them. Of the two indispensable qualities mentioned above,
imagination is almost entirely innate, while foresight, though some extent innate,
can be enhanced by a varied experience. Delegation skill and organization skill
though not essential are highly desirable whenever large scale decision making
is contemplated. These too are qualities which can be enhanced through
experience.
Dr. Nagendra P Singh (1985) says there have been several studies which
highlight that the entrepreneur is a person who bears, innovates or initiates and
organizes the business. His existence can be justified with effective performance
of various functions related to his role. Entrepreneurial skills can be acquired
and inculcated among the entrepreneurs, provided he possesses certain qualities
identifiable through his overt behavioural manifestation.
Ratna Ghosh, Meenakshi Gupta and S. Dian Dhar (1998) in their article,
Women and Entrepreneurship in India, describe the research project undertaken
by The Centre for Management Development in Trivandrum titled Management
Skills for Rural Enterprises: A Field Investigation. The project involved
motivating, training and assisting men and women towards developing
independent business ventures. This study focused on the experiences of women
who started micro-enterprises. Based on the quantitative analysis of the data
obtained from questions administered to 73 women who invested in small scale
industries, an attempt was made to develop a profile of women entrepreneurs
and draw out some implications for study.
Her initial investment range is quite high when compared to her economic
background. She is able to obtain sufficient funds from the Government to set up
a small lucrative business which would give her economic independence and
higher social status because of increase in family income.
Dr. C.B. Gupta and Dr. N.P. Srinivasan (1999) quote Jeffrey Timmons
(1985) who conducted research on entrepreneurial traits and identified following
traits: Total commitment, determination and perseverance, Drive to achieve and
grow, Opportunity and goal orientation, Taking initiative and personal
responsibility, Persistent problem solving, Realism and a sense of humour,
Seeking and using feedback, Internal locus of control, Calculated risk taking and
risk seeking, Low need for status and power, and Integrity and reliability.
Renu Arora and Dr. S.K. Sood (2004) in their book Entrepreneurial
Development explain that an entrepreneur should possess all such characteristics
with the help of which he can perform successfully. He should be: calculated
risk taker, innovator, organizer, creative, achievement motivated, self confident,
socially responsible, optimistic, quipped with capability to drive, blessed with
mental ability, human relations ability, communication ability, decision making,
business planning, visionary, ability to spot and exploit opportunity and courage
to face adversities.
The author has given a comparison of traits of old and new entrepreneurs
as:
lxii
Then Now
Small business founder True entrepreneur
Boss Leader
Lone ranger Net worker
Secretive Open
Self reliant Inquisitive
Seat of the pants Business plan
Snap decisions Consensus
Male ownership Mixed
The new entrepreneur comes from different sources too. Many of them
are corporate track drop outs, pushed out by downsizing or lured out by the
quest for status, big money, or control of their personal lives. Globalisation has
many small start-ups to compete against with big businesses.
Sathish Taneja and Dr. S.L. Gupta (2001) in their book Entrepreneur
Development: New Venture Creation explain the characteristics and role
lxiii
demands of entrepreneurs. The wide range in the nature of business and the
entrepreneurs who have started and run them make generalisations about their
characteristics at best, risky and at worst, something misleading. For example,
product-oriented business is significantly different from service -oriented ones.
Technical entrepreneurs have been found to have different educational
background than non-technical and service entrepreneurs. Further, the
requirement to build a large enterprise are different and more demanding than
the personal requirements needed for setting up a small scale enterprise or even
a franchise.
work hard, above average intelligence and wide knowledge, self motivation,
vision and foresight, willingness to differ consumption, imagination, initiation
and emulation, inventive ability and sound judgement, flexibility and sociability,
desire to take personal responsibility, desire to seek and use feedback,
persistence in the face of adversity, innovativeness and future-orientation,
mobility and drive, creative thinking, strong need for achievement, ability to
marshall resources, high degree of ambition, will to conquer and impulse to fight
and will to prove superior to others.
Dr. Bhawna Bhatnagar and Ankur Budhiraja (2009) quote Vasant Desai
who has defined the modern entrepreneur. According to Vasant Desai, the
entrepreneur brings in overall change through innovation for the maximum
social good. Human values remain sacred and inspire him to serve the society.
He has firm belief in social betterment and he carries out his responsibility with
conviction. In the process, he accelerates personal, economic as well as human
development. The entrepreneur is a visionary and integrated man with
outstanding leadership qualities. With a desire to excel, the entrepreneur gives
top priority to research and development. He always works for the well being of
the society. More importantly, entrepreneurial activities encompass all
fields/sectors and foster a spirit of enterprises for the welfare of mankind.
Organizer Say
Visionary Hisrich
Leader Hisrich
Dreamer Luther
CHAPTER 3
RESEARCH METHODOLOGY
3.1 METHODOLOGY
2 2
n= Za x S
e2
lxviii
Where,
n = sample size
S = standard deviation.
In the selection of the sample units for the purpose of the study, those
with less than 5 years of existence and not in business at present have been
completely ignored. It had also been ensured to give representation to different
types of business houses.
The data for the study have been collected mostly from the primary
sources. An elaborate interview schedule was prepared for administering among
the entrepreneurs. For the purpose of conversing the questions, one entrepreneur
for each business shall be selected irrespective of the fact that some are
partnership firms and some are private limited companies.
Apart from these, secondary data have also been collected from different
Government Departments like Department of Commerce & Industries, District
Industries Centers, Department of Economics and Statistics, State Industrial
Development Corporation, etc. The data so collected have been tabulated and
analyzed properly with their level of achievement.
1. Entrepreneurship development in any state is very slow and far below than
the all Indian average.
2. The industrial growth in a state has been on low growth path mostly due to
more industrial failures in the small scale sector.
lxix
3. Lack of demand for products, scarcity of working capital and above all,
infrastructure bottlenecks are the main factors for entrepreneurial
backwardness in any given state.
(i) The scope of the present study has been confined to Indian nationals only.
(iii) As the findings and conclusions of this study are based on data collected
from the selected entrepreneurs in the study area, it cannot be generalized
for the entire nation.
(iv) The methodology followed and tools employed in the analysis of the data
involved certain merits as well as demerits of their own and also reflect the
limitations of the database.
It is proposed to analyse the factors that have motivated and facilitated the
entrepreneurship development for study. What makes a man is mostly his
environment and his attitudes. The prevailing social-economic, psychological
and the cultural factors naturally influence a man and act as a source of
inspiration to make a successful living in the society.
Environment and attitudes are not two different separable entities. The
former influences the latter and vice-versa. But the attitudes of people exert
more influence on the environment. Sometimes, man becomes a prisoner of the
environment of which he is the creator. Here again, the attitudes of man are not
static. They are ever changing. Man constantly endeavours to conceive new and
better ideas and indulges in experimenting on them. This process guides to
changed attitudes and changed environments.
people of those areas in the past but which remained backward. Even today,
these states remain backward despite massive investment in public sector
projects there since the beginning of the era of planning in India.
As such, of all the attitudes, innovation, risk taking and future planning
are the most important: from the point of view of industrial development. It is
the entrepreneur who acts as a 'spark plug' to transform the economic scene and
brings a sense of dynamism into it. Entrepreneurs like any other careerists are
not born but they are made. Career depends upon several factors other than the
attitudes of the careerist himself. The attitudes of others like his family members,
friends and relatives and the government would exert influence into the career
making. Entrepreneurship is no exception. Entrepreneurs are not only a product
of their ambitions, but also those of the aspirations of their family members,
friends and the nation.
Table 3.0
The study has been presented in five chapters: Chapter I deals with the
concept of entrepreneurship and its relationship with economic development, the
emerging trends of small scale industry, objectives of the study and research
design. The second chapter comprehensively reviews the literature related to this
study. Chapter III explains the methodology which is a combination of the case
method and the survey method (popularly known as the case survey (method). In
the next chapter, namely Chapter IV, provides some empirical support for the
paradigm of strategic choice (as opposed to that of environmental determinism)
underlying the theoretical model as proposed in the earlier chapters. Following
the discussions, in Chapter V, narrates the process of identifying successful
entrepreneurs with their entrepreneurial heuristics and thumb rules so identified
with findings and conclusions.
"To fulfill the desire of myself/my father/my wife" was the fourth ranked
ambition. The "other" ambition ranked fifth which includes the desire to do
something new or creative, self- employment to youths, etc. It is clear from the
lxxiv
above analysis that the entrepreneurs had mainly the ambition of gaining
independent living or self-employment, making money, gaining social prestige
and fulfilling the desires of himself and his family. It is also to be noted that
basically there was only a slight, just an inter-changing, difference in the
ambitions of entrepreneurs in respect of the top three ambitions.
Sometimes the compulsion rather than the ambition leads the man to
success. At times, the initial aspirations and the opportunities may clash with
each other. Then the destiny is shaped none other than by the compulsions
encountered by the individual. Sometimes, one may be thrown out of his job all
of a sudden or he may remain unemployed for long time after his education.
There are also cases of people who start as tiny industry as a diversification of
economic interests and ultimately making lakhs of rupees and providing
lxxv
Table 3.2 shows the compulsion number one that has compelled the
entrepreneurs was the diversification of economic interests (31.3 per cent).
'Unemployment' was the number two compulsion that has driven 23.5 per cent
of the entrepreneurs to the industry whereas 'dissatisfaction' with the previous
job held has shaped the destiny of 21.8 per cent of the entrepreneurs to become
industrialists. Compelling reason that ranked fourth is making use of idle funds
(12.6 per cent).
lxxvi
It is clear from the analysis that there are at least two important factors
facilitating entrepreneurship apart from a few others. They are previous
experience in manufacturing and encouragement of family members/ relatives /
friends. These two were ranked first and second most important factors.
Table 3.4 shows the distribution of the expectations. Even though a long
list of expectations is given to the entrepreneurs, 19.6 per cent (11 out of 56
entrepreneurs) and 28 per cent (14 out of 50 entrepreneurs) admitted that they
had no expectations as such. Many of the entrepreneurs (73 out of the total 106)
expected financial assistance from State Government, State Industrial
lxxix
3.1.7 REFERENCES
CHAPTER 4
CASES STUDIED
Bose was awarded significant patents in two fields which, to this day, are
important to the Bose Corporation. These patents were in the area of loud
speaker design and non-linear, two-state modulated, Class-D, power processing.
Agarwal has travelled a long way, from the Patna lad who left school at
15 to founder, Chairman of the $10 billion conglomerate Vedanta Resources.
One of the most thrilling moments of my life was the day I got my first
cycle, reminisces Anil Agarwal, founder Chairman of the London Stock
Exchange-listed mining and metals conglomerate with a market cap of $10
billion. The cycle, a gift from his father, a fabricator of grills and gates in small-
town Patna in the 1960s, meant the youngster could ride to his municipal school
in style, instead of making the daily 10 km hike on foot. Much later, Agarwal
graduated to a Vespa scooter, but never made it to college. Agarwal came to
Mumbai as a scrap-metal dealer in 1976, going on to build an empire in copper,
zinc, aluminium and iron ore, recently venturing into power generation.
Vedanta Resources was the only Indian group to go for a primary listing
on the London Stock Exchange in 2003 and its subsidiary, Sterlite Industries,
was listed on NYSE in 2007 in the largest IPO in the US by an Indian company.
The tipping point came in 2003. Frustrated with the licence raj regime and the
constraints of raising capital in India, Agarwal had earlier moved to London.
From a British newspaper he learnt that Brian Gilbertson, the South African
dealmaker who engineered the $57 billion takeover of BHP by Billiton in 2001
to create the worlds largest mining group, had fallen out with the merged
leadership.
lxxxvi
So Agarwal made a cold call, just like that: I always take a chance. I told
Gilbertson that I would like him to help me list my company. In turn,
Gilbertson asked about his hobbies, and Agarwal recollects, I told him that my
hobbies are whatever the other man wants. Gilbertson said, I do cycling. I
replied, I do cycling too. The pair biked 60 km from Oxford to London, with
Agarwal trailing. Agarwal reflects, Some strength helped me cover that
distance. Gilbertson came to India, checked out all our assets and was
impressed. I offered him a good package and he became Chairman. Vedanta
subsequently attracted others on the boardP. Chidambaram, the late Sir David
Gore-Booth and Michael Fowle, Chairman, KPMGand the company
successfully listed on the London Stock Exchange. With this, Agarwal became a
global player in mining and metals in less than a decade.
In 1993, Ranjit Pandit, now Managing Director, General Atlantic, had just
moved back to Mumbai from New York, to open McKinsey and Co.s India
practice, which he chaired. In inimitable Agarwal style, Pandit got a call out of
the blue, with Agarwal describing Sterlite as a small company which had a lot to
learn. From then on, Pandit has been a regular sounding board. He says: Look
at the power generation company hes going to list. It has just 1,000MW, but
hes growing it to 10,000MW, and his valuation is based on that.
The person who has perhaps most influenced Agarwals recent thinking is
an American, Steve Elbaum, Chairman, Superior Cables, inspired Agarwals
2006 $1 billion pledge to set up the Vedanta University, a world-class
lxxxvii
shift from soaps to software. Under his leadership Wipro has metamorphosed
from a Rs.70 million company in hydrogenated cooking fats to a pioneer in
providing integrated business, technology and process solutions on a global
delivery platform. Today, Wipro Technologies is the largest independent R&D
service provider in the world. Under his leadership, the fledgling US$ 2 million
hydrogenated cooking fat company has grown to a US$1.76 billion IT Services
organization serving customers across the globe. In the past two years Wipro has
also become the largest BPO services provider, based in India. Wipros growth
continues be driven by its core values.
Wipro was the first Indian Company to embrace Six Sigma, the first
Software Services Company in the world to achieve SEI CMM Level 5 and it
also became the worlds first organization to achieve PCMM Level 5 (People
Capability Maturity Model). Premji equates Quality with Integrity both being
non-negotiable.
Third, we must understand the difference between perfection for its own
sake and excellence. Time is of essence. Excellence is about doing the best we
can and speed lies in doing it quickly. These two concepts are not opposed to
each other; in fact, speed and timeliness are important elements of quality and
excellence.
Fifth, we must create processes like Six Sigma, CMM or ISO that enable
excellence. Use them because they are based on distilled wisdom and it is
imperative that we use the most modern tools to keep processes updated.
Build up self-confidence, always look ahead and have the best around you;
Bhai Mohan Singh collaborated with Italian pharma company Lapetit Spa
and later on bought it. He made his mark in the pharmaceuticals industry in the
late 1960s when he launched his first superbrand, Calmpose, which was an
imitation of Roches valium. He established an R&D facility at Mohali and
launched one blockbuster pill after the other, such as Roscillin, Cifran, etc.
Ranbaxy Laboratories Ltd went public in 1973. Bhai Mohan Singh also
co-founded Max India with his youngest son, Analjit Singh. As a pioneer of
India's pharmaceuticals industry, 89-year-old Bhai Mohan Singh was the
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Bhai Mohan Singh died on March 27, 2006. He was the ex-Vice
President of the New Delhi Municipal Corporation (NDMC). For his
contribution in civic matters he was awarded the Padma Shri. For his
contribution to the industrial development of Punjab, the Punjab Government
named an industrial township near Ropar after him.
His journey began in 1944 at the age of 20. He along with his three
brothers moved from his birthplace Kamalia in Pakistan to Amritsar. The
brothers started supplying components to the local bicycle business. After
partition in 1947, the family was forced to move to Ludhiana. In 1952, Munjals
made a shift from supplying to manufacturing. They started manufacturing
handlebars, front forks and chains. In 1956, the Punjab state government
announced the issue of 12 new industrial licenses to make bicycles in Ludhiana.
The Munjal brothers cashed on this opportunity. Soon Hero Cycles started
giving well established players such as Raleigh, Hind Cycles and Atlas Cycles a
run for their money. The Hero Cycle was comparatively cheaper and was sturdy
and reliable. It gave the customers value for their money.
SEEDING A DREAM
The founder and patriarch of the $ 2.8 billion Hero Group is a classic first
generation entrepreneur. He is a man who started small, dreamt big and used a
combination of grit and perseverance to create one of the country's largest
corporate groups and the World's No.1 two wheeler company.
BUILDING RELATIONSHIPS
When Brijmohan and his brothers started out, there was no concept of
organized dealer networks. Companies just produced, and most dealers
functioned like traders. Brijmohan changed the rules of the business by trusting
his gut instincts; introducing business norms that were ahead of their time, and
by investing in strategic relationships. "Thanks to the relationships that we have
nurtured so passionately in the Hero Family, the younger generations of some of
our bicycle dealers have become dealers of Hero Honda. These relationships
have survived through generations - through bad times and good times'' the
patriarch now reminiscences.
STAYING AHEAD
In the 1980s, when all two-wheeler companies in India opted for two-
stroke engine technology, Brijmohan preferred a four-stoke engine - a
technology that dramatically increased fuel efficiency and reduced maintenance
costs. This technology was one of the biggest reasons for Hero Honda's
stupendous success.
A CORPORATE CITIZEN
By 1971, the Munjals had set up a rim-making division for Hero Cycles
and launched another company called Highway Cycles that would make
freewheels -- it was then that Brijmohan Lal restructured and streamlined Heros
rapidly expanding business. Within a span of 6-7 years, production at the Hero
Cycles plant doubled and in 1975 it became the largest manufacturer of bicycles
in India.
He worked on two premises; first that all four brothers, the original four
brothers, had an equal stake in all the Munjal companies. The second premise
was that any Munjal who wanted to work, had to have a business to run. Now
what did that mean? That meant that between the 1980s, 1990s and 2000, the
business began to expand and to diversify -- they went into textile spinning, they
went into financial services . . . although not all of these succeeded.
Brijmohan Munjal is steady in his dedication towards his work. With the
widespread network of 5,000 dealers across the country, the Hero Group today is
a conglomerate with an annual turnover of Rs.10,000 crore. Highs and lows,
rewards and backlashes have all been a part of the Hero Group's corporate story,
but downfalls did not discourage them, nor did losses kill their spirit of
entrepreneurship.
Chetan Maini began building toy cars and planes when he was eight.
And, with some nifty workmanship, he has turned his hobby into an innovative
xciv
In this regard, Chetan Kumar Maini, the former owner of Reva Electric
Cars is a lucky man to have built a remote-controlled toy car at the age of 8, and
won a school prize in the sixth standard. Later, he started building toy planes and
go-carts with a scooter engine. As a mechanical engineering student, he built
solar and hybrid cars. And, finally, he designed and built a battery-operated car -
India's first electric car, the Reva. He just takes three weeks to put together a
model. Today, Maini picks up most of his ready-to-assemble kits from shops in
Bangalore for Rs.6, 000 to 12,000 apiece.
"In my college days, we were four friends who were working on a solar
car together. We were always looking at starting a company, especially in the
electric vehicles space," he says. That is how he ended up working for a
company called Amerigon, which was working on the electric vehicle
technology. And that is where the idea of Reva was born.
When Maini introduced Reva in India in 2001, the auto market looked at
his electric car with amusement, some even indulged him by taking test rides,
but few took the car seriously. In late-2006, the company received an investment
xcv
of $20 million from Draper Fisher Jurveston and Global Environment Fund to
help Reva's strategic growth globally.
HDFC has reached where it is today because of sheer hard work and
shared vision.
Mr. Parekh was awarded the Padma Bhushan in 2006 for his contribution
in the field of trade and industry. On January 24, 2008, Mr. Parekh was awarded
the lifetime achievement award by Finance Asia for his contribution towards the
banking/financial sector in Asia in 2003. He was also the first recipient of the
Qimpro platinum award for Quality for his contributions to the services sector
and the youngest recipient of the prestigious corporate award for lifetime
achievement from the Economic Times. He has won several other awards
including 'Hall of Fame' award by Outlook Money Magazine in 2005 and Best
Non Executive Director award by the Asian Centre for Corporate Governance in
2006.
Dhirubhai Ambani was the most enterprising Indian entrepreneur. His life
journey is reminiscent of the rags to riches story. Dhirajlal Hirachand Ambani
was born in 1932, at Chorwad, Gujarat, into a Modh family. His father was a
school teacher. Ambani started his entrepreneurial career selling bhajias to
pilgrims in Mount Girnar over the weekends.
After doing his matriculation at the age of 16, Ambani moved to Aden,
Yemen. He worked there as a gas-station attendant, and as a clerk in an oil
company. He returned to India in 1958 with Rs.50, 000 and set up a textile
trading company. Assisted by his two sons, Mukesh and Anil, Dhirubhai built
Indias largest private sector company, Reliance India Limited, from scratch.
Over time his business has diversified into a core specialization in
petrochemicals with additional interests in telecommunications, information
technology, energy, power, retail, textiles, infrastructure services, capital markets
and logistics.
Industry. A poll conducted by the Times of India in 2000 voted him greatest
creator of wealth in the century.
She has traversed a long way, pushing through a host of odds that have
stood her way since her first musical game show Dhum Dhamaka went on air
around 1994.
Despite the popularity of her soaps, Ekta has received a lot of criticism
for her controversial and bold scenes, the portrayal of female characters, false
sophisticated sets and repetitive, frivolous plots. In the short span of her career
this young entrepreneur of India has achieved many awards and civic honours.
She was chosen to lead the Confederation of Indian Industries' (CII)
entertainment committee. Truly, it is not Ekta Kapoor alone for the bull's eye
success of Balaji Telefilms, rather there is a strong team of more than 300
xcix
professionals who are sincerely working behind the scenes and so the familiarity
must have gone to the company and its team and not Ekta alone.
CAREER
logical sequel he gravitated towards Chittoor his native place in India. Dr. Galla
laid the foundation of Amara Raja batteries in 1985 in Chittoor.
In 1981, one year later, his elder brother Mansukhbhai, bought a plastics
unit in Ahmedabad and asked Gautam to run it. This marked the beginning of
Adani's foray into global trading by beginning to import polyvinyl chloride
(PVC), a key raw material for manufacturing plastics. After the economic
liberalization, the import duty on various goods was slashed, and profits of
Adani Exports, then his flagship company, grew immensely.
In the first half of the 1990s, the American multinational Cargill and
the small Indian company Adani Group joined hands for a project to
produce and export salt from Gujarat. The Americans exited the
proposed partnership citing management and control differences, leaving
the Indian partner with 5,000 acres of land for which it had no use.
Gautam Adani could have been in trouble. But he saw there an
opportunity. Call it prescience, providence or a good gamble. In place of
the captive jetty to export the salt, now stands Mundra Port, Indias
largest private port. The surrounding land is home to the largest multi-
product special economic zone in the country. These crown jewels on the
Gujarat coastline stand testimony to Adanis business acumen. He
started with an investment of Rs.5 lakh in 1988, and his groups current
turnover is Rs. 7,000 crore.
Ghanshyam Das Birla is the man who laid the foundation of the Birla
Empire. He was a close associate of Mahatma Gandhi and advised Gandhiji on
economic policies. He was the most important pre-Independence contributor to
the Indian National Congress. He is also popularly known as the builder of Birla
Mandirs.
Born in 1894, G.D. Birla was a native of Pilani. His grandfather Shiv
Narayan Birla was a traditional marwari moneylender. Ghanshyam Das Birla
entered the business arena during the time of First World War. He established a
cotton mill in Sabzi Mandi, and later on established Keshoram Cotton Mills.
Along with cotton mills he diversified to jute business and shifted his base to
Calcutta city in Bengal, the world's largest jute producing region. He established
Birla Jute Mills in Bengal, much to the consternation of established European
merchants.
Born in Kolkata in 1930, Rama Prasad Goenka was educated at the famed
Presidency College, where he came in touch with some outstanding teachers of his
time and picked up an abiding interest in history and economics. Soon after
cv
his graduation, Rama Prasad Goenka became associated with the Indian jute
industry. At a very young age as Chairman of Indian Jute Mills Association, he
played a leading role in underscoring the need for modernizing the traditional
industries.
The RPG Group was set up in 1980 with jute, cable and carbon black,
with a turnover of Rs.70 crore. He, found time to have a stint at Harvard
University and later took pioneering steps to invite the renowned IMD at
Lausanne to India and set up the International Management Institute in Delhi,
where he continues as Chairman. Rama Prasad Goenka is a former Chairman of
the Federation of Indian Chambers of Commerce and Industry (FICCI) and
Chairman of the Confederation of Asia Pacific Chambers of Commerce &
Industry, where he continues as a Member of the Advisory Board.
During his colourful business career spanning more than five decades,
Rama Prasad Goenka served many public institutions. He is a former Director of
the Central Board of Reserve Bank of India, General Insurance Company of
India, Steel Authority of India and Industrial Development Bank of India.
(Honoris Causa) for his contribution to industry and his deep involvement in
social work.
DIVERSE BUSINESSES
Mr. Thomas became the Chairman of AV Thomas group in 1968 after his
fathers demise. Established in 1925, the group is involved in diverse businesses
including tea, coffee, rubber, spices, leather goods, food ingredients and natural
extracts, medical appliances, treated rubber wood, shipping and warehousing,
agency services and plant technology. He employs more than 11, 000 people.
Shri Om Prakash Jindal more popularly known as O.P. Jindal was born in
1930 to a farmer late Netram Jindal of village Nalwa of district Hisar in
Haryana. Since his childhood the young Jindal had interest in technical work. He
started his industrial career with a small bucket-manufacturing unit in Hisar. In
1964, he commissioned a Pipe Unit Jindal India Limited, followed by a large
factory in 1969 under the name Jindal Strips Limited.
cvii
At present, there are twenty factories under the flagship of the Jindal
Organization, which are worth over Rs.17, 500 crores, under whose umbrella,
thousands of families directly or indirectly benefit themselves.
O.P. Jindal was the Chairman of the Jindal Organization. In 2004, Jindal
was conferred the prestigious "Life Time Achievement Award" for his
outstanding contribution to the Indian Steel Industry by the Bengal Chamber of
Commerce & Industry. According to the latest Forbes' List, O.P. Jindal has been
ranked 13th amongst the richest Indians of the country and placed 548th
amongst the richest persons of the world.
His life's mission was to help others particularly the common man in
every possible way. Shri Jindal was known for his unassuming generosity and
donates crores of rupees annually not only to known but also to needy strangers.
Numerous social and religious institution of India also received liberal donations
from Shri Jindal for noble causes.
LIFE
Born into a farmer family from north Gujarat, Karsanbhai finished his
B.Sc. in Chemistry at age 21 and worked as a lab technician, first in the New
Cotton Mills, Ahmedabad, of the Lalbhai group and then at the Geology and
Mining Department of the state Government. In 1969, Karsanbhai set up Nirma,
(named after daughter Nirupama) selling detergent powder. This was an after-
office business - the one-man company would bicycle through the
neighbourhoods selling handmade detergent packets door to door. At a price of
Rs.3 per kg, (one third the price of leading detergents), it was an instant success.
After three years, Karsanbhai felt confident enough to quit his job. Later
he said: the lack of any such precedent in my family made the venture fraught
with fear of failure. But farmers from North Gujarat are known for their spirit of
enterprise. Karsanbhai set up shop at small workshop in an Ahmedabad suburb.
The Nirma brand quickly established itself in Gujarat and Maharashtra.
The high quality and low price of the detergent made for great value.
Fueled by housewife-friendly advertisement jingles, Nirma revolutionized the
detergent market, creating an entirely new segment for economy detergent
powder. At the time, detergent and soap manufacture was dominated by
multinational corporations with products like Surf by Hindustan Lever, priced
around Rs.13 per kg. Within a decade, Nirma was the largest selling detergent in
India. Since production was labour intensive, Nirma also became a leading
employer. Made without some phosphates, Nirma was also somewhat more
environment friendly.
cxi
Karsanbhai's two sons and son-in-law are now at leading positions in the
Nirma organization: Rakesh K Patel (MBA) looks after procurement and
logistics, Hiren K Patel, chemical engineer and MBA, heads marketing and
finance, while Kalpesh Patel is in human resources.
AWARDS
HER DETERMINATION
Besides her hectic professional life, Mazumdar Shaw has also penned a
coffee table book titled 'Ale and Arty'. She has made sure that Biocon has an
active corporate social responsibility and is active in the field of public health
and education. She also heads the Vision Group on Biotechnology for the state
of Karnataka and was instrumental in making Bangalore a Biotech Hub.
Pantaloon's Kishore Biyani has become India's largest retailer, but still
has several aces up his John Miller shirtsleeves. And now that he has set himself
the task of retaining control of the largest retail space in the country, he would
not let anyone - suppliers or international promoters included - catch him
slacking.
Unlike most people, Kishore Biyani makes no bones about his simplicity.
He believes in taking quick decisions. The deal with Bennett, Coleman & Co
was done in seven days flat. He has never met V. Banga of Unilever in his life,
and leaves the task of relationship building to his managers. Biyani has not
always played in the big league. Having quit the family business, which supplied
denim to Arvind Mills, in 1987, he collected Rs.7 lakh and set up a small plant
that produced 200 trousers a day.
The shift from manufacturing to retail was the critical point in Biyani's
career. Distribution costs were the reason brands were snuffed out in the market,
so Biyani decided to rewrite the rules of the game. In 1993, he experimented
cxv
with a small store format, and Pantaloon Shoppe was launched in Panjim, Goa,
"where we could make mistakes without anyone noticing them".
From the shoppe to the large store format in 1998 - this time in Kolkata
("If you can conquer Kolkata, you can conquer other markets too. Calcuttans,
contrary to perception, have money and are loyal customers. They are emotional
people and get emotionally attached to a brand.") - was a carefully crafted plot.
And he was proved right when the Kolkata Pantaloon store became a raging
success and Biyani stepped on to the turf as a super retailer.
The year 2004-05 has been eventful for Pantaloon Retail as it crossed the
Rs 1,000-crore target. But there have been other watershed years, such as 1997
when it launched its first departmental store, Pantaloons, in Kolkata and 2002,
when it opened its first departmental store, Big Bazaar. Today, Pantaloon is
poised to don a new look with a new corporate identity. From the `Knowledge
Group,' it will be now known as the `Future Group' with a new logo (a human
palm print) with the message `India tomorrow.'
directly and indirectly. The group includes V-Star creations, makers of apparel
ranging from designer churidars to lingerie, and the Veega Land amusement
park.
I believe that the achievements of V-Guard group are not entirely due to
my abilities. I realise that our managers, staff and other associates have played a
major role in bringing V-Guard to this level, he says. No wonder he has set
apart four percent of the equity for his 700-odd employees.
In 1959, the Oberoi group became the first group to start flight catering
operations in India. In 1965, M.S.Oberoi opened the first modern five star
international hotel in the country, the Oberoi Intercontinental, in Delhi. In 1966,
he established the prestigious Oberoi School of Hotel Management, recognized
by the International Hotel Association in Paris. The Oberoi group opened the 35
storey International Sheraton in Mumbai. Oberoi was the first to employ women
in the hospitality sector. Today, the Oberoi group owns or manages 37 luxury
and first class international hotels in seven countries. M.S. Oberoi was elected to
the Rajya Sabha in 1962 and in 1972. He was also elected to the Lok Sabha in
1968.
Life served his lemons regularly but with even greater regularity did the
Rai Bahadur make lemonade.
The story of the Rai Bahadur is all the more impressive because there was
nothing in his background to suggest that he would be able to create the world
class ambience and sophistication for which the group is celebrated now that he
cxix
would be able to foresee Indias current positioning in the global market, while
doffing a deferential hat to history when it was demanded.
He has received many honours and awards. In June 2000, the Asia week
magazine featured him in a list of Asias 50 Most Powerful People. In 2001,
Narayana Murthy was named by TIME/CNN as one of the 25 most influential
cxx
global executives. He was the first recipient of the Indo-French Forum Medal
and was voted the World Entrepreneur of the Year 2003 by Ernst & Young. The
Economist ranked Narayana Murthy as eighth on the list of the 15 most admired
global leaders (2005) and he also topped the Economic Times Corporate Dossier
list of Indias most powerful CEOs for two consecutive years - 2004 and 2005.
In the past five years Infosys has grown at breath taking speed: sales grew
at a compounded annual rate 74 per cent and profits by 78 per cent, a
performance that puts Infosys way ahead of its peers. It created history by
becoming the first Indian registered company to list on an American stock
exchange-NASDAQwith an issue of two million American Depository Shares
that raised $ 70 million. Infosys pioneering step has paved the way for other
Indian IT companies.
In 1974, Naresh Goyal founded Jet Air Pvt. Ltd., to look after the Sales
and Marketing operations of foreign airlines of India. His mother sold her own
jewelry to give him money to start the business. He was involved in developing
studies of traffic patterns, route structures, and operational economics and flight
scheduling. His rich and varied experience made him an authority in the world
of aviation and travel.
Today, the net worth of the Jet Airways promoter is over Rs.8, 100 crore,
which makes him the sixth richest Indian as per the Business Standard
Billionaire Club.
Goyal, however, has not forgotten his humble past, a reason why he
remains modest and avoids the limelight. For e.g. minutes after announcing his
decision to buy Air Sahara for Rs.2,225 crore - a deal, which gives him control
over almost half of India's domestic aviation airspace - Goyal refuses to give it
much importance and said, "It's no big deal. I am neither happy nor excited.
Such acquisitions have been the way of life in the west."
The modesty has been interpreted in many ways. While his associates say
it shows that the man has his feet firmly on the ground, others say it's his way of
avoiding controversies. He has been doing precisely that ever since he got into
the civil aviation industry 36 years back. He also has clear ideas about which
way to go. For example, he thinks low cost airlines are just a myth in India.
Along with Jets meteorite rise, Naresh Goyal also rose in the
entrepreneurial arena. He has won several honours and accolades. These include
Entrepreneur of the Year Award for Services from Ernst & Young in 2000,
Distinguished Alumni Award-2000 for meritorious and distinguished
performance as an Entrepreneur, Outstanding Asian-Indian award for leadership
and contribution to the global community given by the Indian American Centre
for Political Awareness, Aerospace Laurels for outstanding contribution in the
field of Commercial Air Transport twice, in 2000 and 2004.
Group. He currently holds the post of Executive Chairman in the group. Dr.
Reddy is a cardiologist with international experience. He worked at the Missouri
State Hospital, U.S.A. where he also had the distinction of heading multiple
research programmes.
He started on his mission for providing quality health care in India in the
eighties. It is believed that he was spurred by his failure to provide critical care
to a patient in the U.S. The patient died as a result. This incident prompted him
to start world-class affordable health care facilities in India.
Apollo Hospitals proved that Indian doctors are no less than the best in
the world by successfully operating on a complicated cadaver transplant. Having
successfully steered Apollo hospitals in a number of locations through out India,
Dr. Reddy went on to expand operations throughout Asia. His more recent
initiative is to create a virtual Apollo centre, which is available anywhere, at any
time. This is a web based Apollo initiative. He successfully implemented
cxxiv
The Apollo Group opened its first clinic in Dubai in 1999. He also has
plans for SAARC countries. He has plans for opening secondary health centers
in India. His new projects include 'Med-varsity'-a virtual medical university
providing total access to medical experts and 'MEDNET'-a hospital systems
management package. Dr. Reddy has many more dreams like setting up rural
hospitals. He recognized 23 sites in the semi urban areas. He started a clinic in
his native village to serve as a model for similar such projects for the Apollo
group to emulate throughout India. Dr. Reddy was awarded the Padma Bhushan
in 1991.
Spread across 2,000 acres, the Ramoji Film City is the biggest of its kind
in the world. The Film City where you can get ''everything from a pin to an
aeroplane is Ramoji Rao's biggest project till date and is being developed as the
'Disneyland' of India. He visualizes it as the ''gateway of tourism in India''.
cxxvi
His father had come out with the sachet concept, when he entered
college, a couple of years prior to his fathers demise. He felt liquid can be
packed in sachets as well. When talcum powder was only in tin containers, he
was the one who sold it in 100 gm, 50 gm and 20 gm packs. When Epsom salt
came in 100 gm packets, his father brought out salt sachets of as low as 5 gm.
After his father's death, his brothers took charge of the family business. In
1982, when he joined them after his studies, they had launched Velvette
Shampoo. Within eight to nine months, Ranganathan left the business because
his ideas clashed with theirs. As he was in the manufacturing unit, he did not
know anything about marketing or finance but, his inferiority complex
notwithstanding, he was somehow confident of doing business better.
For a week, Ranganathan could not make up his mind as to what business
to do. He knew only two things; making shampoo and rearing pets. He did not
want to venture into the shampoo business as it would initiate a fight with his
brothers. However, he decided to do the same later as he could only make
shampoo.
Ranganathan named it Chik Shampoo after his father. The product did not
succeed immediately; he learnt many things during the process. In the first
month, he could sell 20,000 sachets and from the second year, started making
profits. He moved to Chennai in 1989 but his manufacturing unit continued to be
in Cuddalore. It took him three years to get the first loan because banks
cxxviii
asked for collateral. But one particular bank gave him a loan of Rs.25,000 which
he rotated and later upgraded to Rs.400,000, Rs.15 lakh and so on.
You know what the bank manager wrote in our loan application? This
person does not have any collateral to offer but there is something interesting
about this SSI unit. Unlike others, this company pays income tax. I must say my
business never looked back because I was very particular about paying income
tax, he says.
When Chik entered the market, Velvette Shampoo was being marketed
aggressively by Godrej. But a scheme of his became extremely successful -- he
exchanged five sachets of any shampoo for a Chik Shampoo sachet, free. Later,
he altered the scheme -- he started giving one free Chik Shampoo sachet in lieu
of five Chik Shampoo sachets only. Soon, consumers started asking for Chik
sachets only. The sales went up from Rs.35, 000 to Rs.12 lakh a month.
He continued with Chik Shampoo for seven years before venturing into
anything else. Meera Herbal powder was actually not his idea. Shaw Wallace
already had a herbal product but it was marketed very poorly. He felt there was a
demand for herbal products and he made a good product. In the third month
itself, he topped the market. In six months, he had 95 per cent market share,
while Shaw Wallace had only 4-5 per cent.
Ranganathan has great admiration for those who fight against all odds
and attain success. C. K. Ranganathan, is a successful entrepreneur and venture
philanthropist. He has set an ambitious sales target of Rs.5, 000 crore by 2012.
cxxx
into the big league of top infrastructure organisations in India. He has also been
awarded the Most Promising Entrant to the Big League by CNBC TV18 at its
Indian Business Leader Awards 2007.
While a set of seven core values define the GMR Groups distinct
organization culture, Rao has also spearheaded a Family Constitution model
for the group. In line with this, over a period of time, the members of the family
would provide only the strategic inputs and investment needs and counselling
for all the businesses and activities of the Group.
Most of the people had no idea how to deal with that sudden turn of
events. But GMR decided to take advantage of a new growth area the power
sector and soon acquired the licence for a power project in Tamil Nadu, the
Basin Bridge power plant in Chennai, which became the first to be developed by
the group, says BVN Rao, a long time friend and now chairman of the energy
vertical.
GMR, who cut his entrepreneurial teeth with a jute yarn facility in Rajam,
went on to display his talent in sugar and other agri-businesses, ferro-alloys, IT
and banking before he finally decided to zero in on infrastructure. Setting up a
jute yarn facility taught him a great deal about teamwork and taking his fellow
workers along. His banking experience is what he treasures the most. Turning
around non-performing assets and building confidence among customers after a
total change in the top management was not easy. We were dealing with public
money, he says.
But even at 61, GMR, has merely written the preface of his
entrepreneurship story, it seems. He is now poised to enter the big league and if
early indications are anything to go by, getting awards too could become a habit.
Having sold his wifes jewellery for about Rs.8, 000 in Old Delhis
Chandni Chowk in November 1947, Singh went to Calcutta to try his luck.
Singh set up his office at 85, Netaji Subhash Road; first to start spice trade but
later founded Bharat Steel Pipes. The rise of Raunaq Singh is considered in the
corporate world as a rags-to-riches story. He related his pre-independence
enterprise to his friends, in Lahore, how he sold old pipes to a customer for
double its price that too by getting an advance from him. His trademanship
could be seen in procuring water pipes without investing a single rupee. His first
deal of Rs.1, 000 was the beginning of his fortune in steel pipe trade.
Says Mr. Harish Bhasin, Chairman HB group, from selling tubes he dreamt of a
tube factory and made it possible. Even when Apollo Tyres was taken over by
the government, he fought tooth and nail and later he was reinstated in the
company. His corporate friends give credit to his political connections.
The noted industrialist, Raunaq Singh, who died at the age of 79 presided
over a business empire with a turnover of about Rs.2, 700 crores. A doyen of the
post-partition era of industry, he rose rapidly from being a mere trader to a
corporate giant with his flagship company Apollo Tyres.
Mr. Raunaq Singh laid the foundation of his tyre manufacturing empire
about 40 years ago and set the stage for India to become a major tyre producer.
As a doyen of the business community in northern India as well as due to his
expertise in the automotive sector, the Government decided to appoint him as
the first Chairman of Maruti Limited. He has also held senior positions in the
Exim Bank, Export Credit Guarantee Corporation and the Indo-German
Consultative Group.
The CII President, Ashok Soota, said with Mr. Singh's passing away, the
country had lost an eminent and charismatic first generation entrepreneur. Mr.
Raunaq Singh represented the first group of post-partition businessmen in the
country. Hailing from an ordinary background and starting as a steel trader, he
went on to establish a group with a turnover of over $525 million.
Bhatia intended to get his engineering degree and go home to work. His
mother was a bank manager, and his father, Chief Administrative Officer at
Defense Research Organization. Bhatia grew up, like most Indian kids,
presuming that starting a company is impossible unless you are a superman.
Bhatia and his colleague Smith quit their jobs at Apple Computer and
opened a tiny office in Fremont, California. By June, they were running out of
money, but the product would be ready to launch in a month. Another venture
capitalist, Dough Carlisle, was interested in investing, but Bhatia knew that if he
and Smith launched the service first, they would keep more control of the
company they created. He convinced a bank to loan them $100, 000.
In 1996, Bhatia and Smith launched their company, called Hotmail. The
morning of the launch, Bhatia and Smith wore hip beepers, programmed to flash
every hour with the number of new subscribers. The first users found Hotmail
all by themselves, then e-mailed their friends: a hundred users in the first hour,
200 the next hour, 250 in the third. By the time Sabeer went back to Doug
Carlisle to say in effect okay. Hotmail had 100, 000 subscribers and a valuation
of $18 million.
Hotmail began to deliver news and other internet content into the e-mail
boxes of its subscribers. This was nothing new, but the way the money flowed
cxxxvi
was. The sites supplying the content took the position. Hey, if you want our
news for free, then you would better pay us. But Bhatia wanted the sites to pay
Hotmail for the privilege of having its content run. Surprisingly, the businesses
agreed to these terms, and soon Hotmail was growing so fast that some content
providers could not handle the traffic that came in from Hotmail. Every
morning, he scoured the internet for signs of competition. It was six months
before the first appeared.
Humble beginnings seldom pay. But Sarath Babu will not buy that. For
this young entrepreneur, rags-to-riches is not just another adage. It is his very
first foundation of success. From a slum in Chennai to the top echelons of
academia with an enrolment in chemical engineering at BITS Pilani and IIM-A,
and now as the steward of his Food King Catering business, Sarath has come a
long way. His humility perhaps made him reject several high-brow offers from
MNCs after his MBA. That, in a way, was the genesis of Food King Catering -
with paltry Rs.2, 000 seed money.
Today, his food business spans six locations with a Rs.9-crore turnover to
boot and set to clock Rs.20 crore by year-end. For Sarath, his mother, who once
sold idlis on the pavements of Chennai and worked as an ayah, is a pillar of
strength. Her sacrifice eggs me on, says Sarath. Apart from bringing up four
children, Saraths mother worked as a cook for the mid-day meal scheme for 11
years and got paid just a rupee each day.
Having completed SSLC, she moved on to teach under the same scheme
for five years. Even then, her salary was insufficient. So Saraths mom sought
refuge in the food business to supplement her meager income. As she rolled
dough in the form of idlis, dosas, bhajjis and appams, it was Saraths job to sell
them in the neighbourhood. For kids living in a slum, idlis for breakfast is
something very special, says Sarath even to this day.
Jumping-in to kick start a business right after college should have been
tough. But this bold mindset & compulsion came from his childhood perils.
Initially, his catering business, with two units in Ahmedabad, was Rs.2,
000-per -day in the red. But I burnt the midnight oil literally to get a solution,
Sarath says. Its worth a mention here that Sarath spent most of his childhood in
the dark, without electricity. He focused on volumes rather than spartan
servings, and started taking contracts from institutions and companies.
He now envisions Food Kings Palace (food malls) across cities where all
kinds of Indian food would be served at economical rates. Is he really worried
about inflation or price-rise in food products? When most of the restaurants have
increased their prices, Sarath sees an opportunity to serve at a cheaper price.
Sourcing from one place makes a lot of difference. I will tap this opportunity,
says Sarath. Today, he drives a Chevrolet to take his mother for a ride to oversee
his business units in Chennai. Next, I want to build a house for my mother,
says Sarath.
The tag-line of the company he runs reads UniverCell, the Mobile Expert.
Anybody who has every shopped for a mobile phone in this part of the world
known this is no empty boast. Sathish Babu, a mathematics graduate, began his
career as a sales executive with Eureka Forbes where he steadily rose to the post
of regional sales manager during nine year tenure. He left the company in 1997
to start his own business venture, bitten by the bug to be my own boss.
It was still the early days of the Indian mobile phone retailing. The
industry was highly fragmented and disorganized. Mobile handsets were
expensive, the grey market dominated and there were few showrooms around to
showcase mobile products.
Using his savings and some capital from the family, Sathish started
UniverCell in 2000 in Chennai. Since then, Sathish and UniverCell have spun a
success story to be the largest mobile phone retailer and among the better known
brands in India. Statistics are available to show that one out of every three
handsets sold in the market is from UniverCell. Its customer base stands at a
vast 5 million, with 100,000 people buying its handsets every month.
cxl
Sathish Babu has promoted the brand through every available mass media
tool of advertising. Innovative marketing and a consistent presence across media
have been the hallmark of Univercells journey as far. Celebrity endorsement is
for instance a big part of its advertising campaigns with film actor R. Madhavan
as its brand ambassador. With effective advertising campaigns and market
promotion, Sathish Babu has made sure that UniverCell is well entrenched in the
hearts and minds of the buying public all over India. The presence of large retail
outlets, print, television, event promotions, billboards and FM radio broadcast,
are constant reminders to customers existing and prospective keeping in line
with the focus of aggressive expansion, UniverCell has started SIS (Shop in
Shop) model stress within Music World of RPG group.
UniverCell has the distinction of being the first mobile phone retailer to
provide a warranty on every purchase, keeping in mind the stiff competition the
grey market poses. Recently UniverCell launched an exclusive Mobile Theft and
Damage Insurance along with Oriental Insurance Co. Ltd. to cover all risks not
covered under the manufacturers warranty. It was also the first mobile retailer
to implement the touch and feel concept, besides offering several exchange
offers.
THE ENTREPRENEUR
Sathish and UniverCell have been cresting the wave of the Indian mobile
revolution from the retailing front, growing and evolving to become India's
largest mobile retailer and one of India's best known brands.
Sathish Babu is determined to go places. They are all set of move into the
next phase of expansion. With the Indian cell phone market still quite away from
reaching saturation, Univercells future looks bright.
STARTING YEARS
Remanika were sown. In 1994, I rented out a 100sq ft space in Kemps Corner in
South Mumbai and opened the first Remanika store selling Go-sexy- trendy
youth wear and club wear for women, says Seema.
When I started in 1994, I could not even afford shelves and hangers, and
all the clothes used to be displayed on the floor. I paid rent in the evening on a
daily basis from money generated through day sales. One fine day, with barely
few months into the business, I got notice to vacate the store. The following one
year was very stressful. There were times when I had to sell clothes on staircases
and loft of the mall. I had to sell my car and house to stay put in the business.
After some time I rented another 600 sq ft of space on a different floor in the
same premises. Thankfully, clients repaid my faith and business grew steadily
she says.
TURNING POINTS
The first store was opened in 1994 and then the opening of second store
in 1999. In 2000, she started retailing the products through Pantaloon, and later
from Shoppers Stop, K-Lifestyle, and Pyramid stores. She has now 10 self-
owned stores and retails her products through 80 other outlets. The employee
strength is 400 and has grown 100% over the years.
There are perhaps few others who can stand testimony to the truth of
these words, as Shahnaz Husain, Indias pioneer in herbal cosmetics.
An entrepreneur in the truest spirit of the word, the lady has a whopping
80 percent of the domestic herbal market, and sales counters in the best stores
internationally, be it the Seibu chain in Japan, Bloomingdales in the US, Galeries
Lafayette in Paris, Harrods and Selfridges in London it goes on.
Though I was married at a very young age, I always knew that I was
made for something more, begins Shahnaz.
Not prepared to sit back as a housewife and mother the age of 16, the
young Shahnaz set about writing for magazine to earn money so that she could
fund her education. Staying with husband Nasir in Tehran, Shahnaz found the
ideal opportunity in the international beauty schools there. After studying
cosmetic chemistry in international beauty schools in certain centres including
London, Paris and Denmark for close to eight years, Husain hit upon the idea of
exploring the 4000 year old Indian ayurvedic system, so that she could research
and develop herbal cures and treatments.
I would go to a place for one day, offer free prescriptions and advice,
inaugurate the salon, and go back, says Shahnaz. It worked today, there are
more than 600m salons in India and abroad.
The strategy was one she applied with great success internationally as
well at one point, during a makeup demonstration in Russia, Shahnaz was
asked to stop as the floor was caving in under the pressure of the people who
had turned up to watch. Interestingly, Shahnaz has never advertised her
products, a fact that had Harvard in the US wanting to use her marketing system
as a case study.
17 herbal lines, with many more in R&D, Husain is busy expanding her
empire by adding health resorts, signature garments, accessory lines and more to
her portfolio.
He is a man who has proud credentials of being the one to gift India its
first Bulletin Board System with e-mail services. He is also the one to establish
cxlv
countrys first online real estate database that allows every property buyer and
seeker to enroll their needs and specialties - all for free.
ON COURSE TO MORE
BORN LEADER
SMART THINKER
If his love for information technology and internet inspired him to venture in the
world of IT services at a meagre age of twenty, his ability to smartly handle a
situation is largely responsible for his success today.
Ably supported by his brother Shashi Ruia led the company into
businesses, like shipping, marine construction, steel, power, telecom, offshore
engineering and oil exploration, which were at one point dominated by
multinationals and public sector units. The brothers, who share a very strong
bond as well as the same office, seized on every available opportunity and
helped Essar pioneer many firsts in Indian corporate history. Essar, for instance,
was the first company to set up a sponge iron plant in the west coast of India, the
cxlviii
first independent power producer and among the first to introduce mobile
telephony services.
Essar draws strength from the integrated nature of its various businesses
and their collective synergies. Shashi Ruia has been the driving force behind this
integration strategy. Widely regarded as one of the architects of modern India, he
has a passion for education and mentoring young talent. He considers all
employees of Essar a part of his extended family.
Ruia said he himself was 'not an MBA but only an MBB (Marwari by
birth),' but he imbibed the spirit of enterprise from his father who took him
along wherever he went to start a business. The lessons he learnt as an
understudy to his father were productive and helped in building the Essar Group
which now has a strong presence in steel, petrochemicals, telecom, engineering
and construction, he added.
Ruia said that young graduates could draw inspiration from great
entrepreneurs like Dhirbubhai Ambani and Ratan Tata. He said India has the
potential to grow stronger and that it was true China was far ahead especially in
the fields of steel, cement and automobiles.
With total assets of more than $5 billion, and annual revenues of more
than $2.2 billion, Essar Group has become one of India's leading and most
diversified private sector conglomerates.
The Group, under the watchful eyes of Ruia has been able to utilize the
synergy and propel its growth into a large business conglomerate. In fact, after
the successful completion of its multi-crore construction project of Sardar
Sarovar Nigam Ltd (SSNL), Essar is now working on a project for the state
government-owned Gujarat State Petroleum Corporation Limited (GSPCL) for
its gas pipeline project. And with Ruia as the guiding star, even scaling sky will
not be a difficult feat for the Essar.
It's no wonder that the Essar Groups under the leadership of Shashi and
his brother Ravi Ruia who is a Vice-Chairman of the company, was ranked 37th
in the list of billionaires in the country.
Shiv Nadar has been the only entrepreneur in the last decade, apart from
Azim Premji of Wipro, to successfully manage hardware business and software
ventures. In fact Nadar has successfully straddled the entire spectrum of
Information technology: from hardware, software and services, to training.
The HCL Empire, which spawns from Japan in the east to US in the west,
was conceived in a garage in Noida near New Delhi when Nadar quit his job
with DCM and, armed with Rs.1.5lakh, started making and selling calculators in
1976. His big break came when he ventured into the hardware business.
Division. He was heading until he quit in 1975 and laid the foundation of HCL
group from an attic in Noida.
By this time the HCL team was able to gather in-house expertise for
developing the hardware, controllers, languages, systems software utilities and
even application software for its computers. Finally with the technology jump in
the next four years 8c became a museum piece, HCL was able to step in with an
advanced version, also developed in-house. This symbolized the galloping pace
of changes in the international market and HCLs nascent efforts to move along.
Kushal Pal Singh, with a net worth of $35 billion, is the fourth richest
Indian in the world. He heads the DLF Group, India's largest real estate
developer, which has interests in Delhi, Chandigarh, Kolkata, etc.
In 1960, Singh quit the Indian Army to join the American Universal
Electric Company, a joint venture between Universal Electric Company of
cli
Despite these odds, Bhasin never regretted moving. "We got the kind of
space, both in size and quality that just was not available in the center of Delhi.
DLF really understands what companies like ours need. They are quick, and
they deliver on their word," says Bhasin. Once GE took the plunge, DLF landed
other big-name corporate tenants, including Nestle, PepsiCo, British Airways,
American Express, IBM and Ericsson.
At a time when the industry practice was to sell and not lease, DLF
offered long-term leases, which suited companies that did not want to load assets
on their books. DLF benefited from the steady rentals during a market downturn
when property sales stagnated. Singh's refusal to cut quality corners ensured that
DLF could get premium prices for its properties.
In an interview Welch recalls, "K.P. was the igniter of the flame for GE
coming to India. He was the perfect ambassador because he opened our eyes to a
great country, and we fell in love with it."
The patriarch scrambled to enter the car battery and electrical motors
field, assigning K.P. Singh to make it work. Young Singh found a mentor in
George Hoddy, founder of Universal Electric in Michigan, a joint-venture
partner. Hoddy, recalls, "K.P. was not afraid to work hard. He followed
directions very carefully and mastered manufacturing." But the diversification
strategy came a cropper in the Indian market.
cliii
Singh's leap of faith in Gurgaon paid off in spades. The average cost of
the 3,000 acres that DLF initially amassed in Gurgaon was $2,000 an acre--a
tiny fraction of today's market value.
"Gurgaon was deserted when K.P. first took me there to see it 25 years
ago. But he had the gumption to go relentlessly after it," says Deepak Parekh,
Chairman of home mortgage company HDFC, which started lending to DLF
early in its expansion drive. Along the way Singh insisted his buyers also be on
the up-and-up. Real estate in India is full of off-the-books transactions, the better
for tax dodges and to avoid once-prohibitive mortgage terms. Also, builders
flout codes and often see their handiwork ripped down.
After the launch of Zee TV, he commenced Siti Cable operations in 1995
and also started a joint venture with News Corporation. In 1995, he launched
two new channels, Zee Cinema and Zee News. In 2000, Zee TV became the first
service provider in India to launch Direct to Home services. In a short span of
time, Zee TV has become a big media and has given tough competition to
international media moghuls such as Rupert Murdoch.
In 2000, the Zee group of companies was positioning itself to tap the
tremendous business opportunity offered by digital communication services in
India. For instance, Subhash Chandra Goyals Siticable Company, which he
owns jointly with Rupert Murdoch, is gearing itself to transmit voice, video, and
data for entertainment and e-commerce purposes. Siticable, with six million
subscribers in 2000, eventually becomes the biggest provider of cable internet
services in India. Subhash Chandra Goyal is also launching a $755 million
satellite telephony venture called Agrani (Sanskrit for "staying ahead"),
establishing a Zee Internet portal, and building 18 multiplex theater-cum-
entertainment centers, called E-Citi in six states in India at a cost of over $ 100
million. Subhash Chandra Goyals vision is to turn his broadcast software
operations into a media, entertainment, and telecommunications conglomerate.
Subrata Roy Sahara is the Chairman and Managing Worker of the Sahara
Group of companies based in India. Sahara India Pariwar is today the largest
first generation conglomerate of India. The group is successfully diversified into
clvi
the fields of Finance, Real Estate, Media & Entertainment, Tourism &
Hospitality, Services & Trading and Consumables. From an asset base of $ 43 in
1978 when it was founded, the group has today exponentially grown to become
a conglomerate with assets having a market value of more than Rs.2,15,000
crores.
He has built the Bharti group, along with two siblings, into India's largest
mobile phone operator in just ten years. The UK based telecommunication giant,
Vodafone and Singapore's SingTel both own stakes in the recently renamed
flagship company Bharti Airtel. The group also has partnerships with Axa for
insurance and with the Rothschild family for exporting fruits and vegetables.
ENTREPRENEURIAL VENTURES
In 1980 he sold his bicycle parts and yarn factories and moved to
Mumbai. In 1982 he became the exclusive dealer for Suzuki Motors's portable
electric-power generators imported from Japan. The importing of telecom
equipment was banned by the Indian Government as ITI (Indian Telecom
Industry) monopoly practices and sole OEM for Department of
Telecommunication.
fashioned, bulky rotary phones that were in use in the country then. Bharti
Telecom Limited (BTL) was incorporated and entered into a technical tie up
with Siemens AG of Germany for manufacture of electronic push button phones.
By the early 1990s, Mittal was making fax machines, cordless phones and other
telecom gear.
The turning point came in 1992 when the Indian government was
awarding licenses for mobile phone services for the first time. One of the
conditions for the Delhi cellular license was that the bidder has some experience
as a telecom operator. Mittal clinched a deal with the French telecom group
Vivendi. Two years later, Sunil secured rights to serve New Delhi. In 1995,
Bharti Cellular Limited (BCL) was formed to offer cellular services under the
brand name AirTel. Within a few years Bharti became the first telecom company
to cross the 2-million mobile subscriber mark. The company is also instrumental
in bringing down the high STD/ISD, cellular rates in the country by rolling the
countries first private national as well as international long-distance service
under the brand name IndiaOne. In 2001, the company entered into a joint
venture with Singapore Telecom International for a $650-million submarine
cable project, the countries first ever undersea cable link connecting Chennai in
India and Singapore.
Mittal has to his credit the breaking up of the 100 year old monopoly of
state run companies to operate telecom services in India. Now he heads a
successful empire focused on different areas of business through independent
joint venture companies with a market capitalization of approximately $ 2
billion, employing over 5,000 people and still growing. Bharti Foundation has
funded over 50 schools in Madhya Pradesh and also donated Rs.200 million to
IIT Delhi for building a Bharti School of Technology and Management.
clix
In 2006, he struck a joint venture deal with Wal-Mart, the US retail giant,
to start a number of retail stores across India. In 2006, he attracted many key
executives from Reliance ADAG, NIS Sparta and created Bharti Comtel.
EDUCATION
fields know their jobs better than a scientific expert. "Trust the judgement of
farmers."
dead end: when the wheat plant's pod grew more seeds, its stalk collapsed under
the weight. With help from the Rockefeller Foundation, Swaminathan found a
cross-bred wheat seed, part-Japanese and part-Mexican, that was both fruitful
and staunch.
That was the breakthrough in the Green Revolution, but there was a lot
more work to be done. Indian farmers, immersed in traditional ways, had to be
convinced to grow the new wheat. In 1966, Swaminathan set up 2,000 model
farms in villages outside New Delhi to show farmers what his seed could do.
Then came the hardest part. He needed the government to help--specifically, to
import 18,000 tons of the Mexican seed at a time of fiscal hardship.
Swaminathan lobbied then-Prime Minister Lal Bahadur Shastri. "He probably
thought nothing could be worse," Swaminathan recalls. "Famine was imminent.
There was a willingness to take risks." The first harvest with the new seeds was
three times greater than the previous year's.
But the revolution was still incomplete. Only Punjab state had the right
irrigation for the new technologies, the state-run food collection and distribution
networks were notoriously inefficient, and new fertilizers and pesticides were
needed, along with credit lines for small farmers. Political leadership was vital
to solve that tangle of problems, and Swaminathan found it in Shastri's
successor. "Indira Gandhi was a strong nationalist," he recalls. "She wanted an
independent foreign policy, and food was a political weapon." Gandhi bluntly
asked him how India could be free of imports and gave Swaminathan a free
hand to organize a new agricultural program. Today, India grows some 70
million tons of wheat a year, compared to 12 million tons in the early '60s.
Dr. Swaminathan has long held that the key to enhancing the prosperity
of India-and many other nations-is to make agriculture the cornerstone of the
economy. By taking this new information to the farmer-at the farmer's level,
with field demonstration plots- Dr. Swaminathan bypassed the stumbling block
of illiteracy and converted a generation of Indians to a belief in the effectiveness
of modern agriculture.
Dr. Swaminathan has often been noted for his understanding of the
breadth of the entire food systems. His service in government is testament to
this: in several political leadership positions, he established programs of
ecological rehabilitation, rural development and technology transfer. His
programs effectively helped subsistence farmers reap their fair share of credit
and income while conserving national resources. "Ultimately," Swaminathan has
stated, "it is the political will of the country to have policies in place which will
stimulate production by small farmers. Without it, all research, technology...any
external advice will go in vain."
group in 1978. He was knighted by the British Queen in the year 1978 and
became the Lord Paul of Marylebone and a member of the House of Lords.
Swaraj Paul was born in 1931 in Jalandhar. His father used to run a small
factory of making steel buckets and farming equipments. Swaraj was educated at
Punjab University and obtained a masters degree in Mechanical Engineering
from the Massachusetts Institute of Technology (MIT) in the US. He joined the
Apeejay Surrendra Group, founded by his father after his returning to India in
1953. It helped him to build up a diversified industrial group.
The twist of fate came when Swaraj went to England in 1966 hoping to
find a cure for his leukemia-stricken two-year-old daughter, Ambika. Shattered
by her death, he took over the operations of Apeejay Overseas and relocated
permanently to London. He buried himself in work and there began his
spectacular business career in Britain.
Lord Paul reflects on the main events of his life in his memoirs, Beyond
Boundaries`. It contains the details of his business career, including his
attempted takeover of the DCM and Escorts group. It also portrays his
association with the famous and the mighty, including the Indian political
dynasty of Indira Gandhi and her sons Sanjay and Rajiv. Beyond Boundaries is a
window into the making of one of the most outstanding success stories of
modern times. He has also written the biography of Indira Gandhi and was
awarded the "Padma Bhushan" by her in 1983.
clxiv
This strict vegetarian donated twenty lakh rupees to the victims of the
October 2005 earthquake in Indias Jammu and Kashmir. Swaraj Paul stepped
down from the management of the Caparo group in 1996, handing over his
empire to his three sons.
clxv
Achievements: JRD Tata had the honour of being Indias first pilot; was
Chairman of Tata & Sons for 50 years; launched Air India International as
Indias first international airlines; received the Bharat Rathna in 1992.
JRD Tata was born in 1904 in Paris. His mother was French, while his
father was Parsi. JRDs full name was Jehangir Ratanji Dadabhoy Tata and he
was popularly known as Jeh to his friends. His father Ratanji Dadabhoy Tata and
Sri Jamsetji Tata shared their greatness from the same great-great-grand father,
Ervad Jamshed Tata, a priest of Navasari.
JRD was the second son of four children. He was educated in France,
Japan and England before being drafted into the French army for a mandatory
one-year period. JRD wanted to extend his service in the forces but destiny had
something else in store for him. By leaving the French army, JRDs life was
saved because shortly thereafter, the regiment in which he served was totally
wiped out during an expedition in Morocco.
JRD Tata joined Tata & Sons as an unpaid apprentice in 1925. He had
great interest in flying. In February 1929, JRD became the first Indian to pass
the pilots examination. With this distinctive honour of being Indias first pilot,
he was instrumental in giving wings to India by building Tata Airlines, which
ultimately became Air India. His passion for flying was fulfilled with the
formation of the Tata Aviation Service in 1932.
In 1938, at the age of 34, JRD was elected Chairman of Tata & Sons
making him the head of the largest industrial group in India. He started with 14
enterprises under his leadership and half a century later in 1988, when he left,
Tata & Sons was a conglomerate of 95 enterprises which they either started or in
which they had controlling interest. JRD was the trustee of Sir Dorabji Tata
Trust from its conception in 1932, which remained under his wings for over half
clxvi
a century. Under his guidance, this Trust established Asias first cancer hospital,
the Tata Memorial Center for Cancer Research and Treatment, Bombay in 1944.
It also founded the Tata Institute of Social Sciences, 1936, the Tata Institute of
Fundamental Research, 1945 and the National Center for Performing Arts.
JRD Tata cared greatly for his workers. In 1979, Tata Steel instituted a
new practice; a worker is deemed to be at work from the moment he leaves
home for work till he returns home from work. The company is financially liable
to the worker if any mishap takes place on the way to and from work. Tata Steel
Township was also selected as a UN Global Compact City because of the quality
of life, conditions of situation, roads and welfare that were offered by Tata Steel.
JRD Tata died in Geneva, in 1993 at the age of 89. On his death, the
Indian Parliament was adjourned in his memory an honour not usually given to
persons who are not Members of Parliament.
clxvii
Tulsi Tanti is the Chairman and Managing Director of Suzlon Energy, the
$10 billion worth wind power based company. He along with his three siblings
own 70% of the company. He is from Gujarat where he started his first venture
which was in textiles, and then he moved into wind energy production and
founded Suzlon Energy. He is worth $930 million as per Forbes.
In 1990, Tulsi Tanti invested in two wind turbines and realized their huge
potential. In 1995, he formed Suzlon and gradually quit textiles. Suzlon Energy
is the fifth largest wind turbine manufacturer in the world and the largest in Asia.
It is presently building what will be among the world's largest wind parks of its
kind at 1,000 MW capacity.
"Clean, green power is the best option," has been Tanti's motto and he has
been working ceaselessly towards this goal. The internationally acclaimed
`Time' magazine has recently named Tanti as one of the global "Heroes of the
Environment" for successfully resurrecting the fledgling wind industry in India.
In spite of being a relative newcomer to the field of manufacturing wind energy,
Suzlon has been giving reliable service to global clients at competitive rates all
clxviii
over the world and has also set up a marketing outfit in Denmark to woo
customers outside India. The company has already made an impact in China, US
and Australia.
At this point, they took upon themselves to develop wind power. Initially
when the Tantis pooled together a sum of $600,000 by selling some of their
family property, they went around enthusiastically as they tried to shop for
technology. The Tanti brothers wanted to craft their own wind turbines as they
were all engineers and were qualified adequately. However, they found that no
one was ready to part with their technology if they were not being given a stake
in the Suzlon equity venture. However, Tantis did not lose heart and persevered.
As luck would have it, Sudwind, a smaller company from Germany nosedived in
1997, giving the Suzlon people an opportunity to employ the Sudwind engineers
and create an R&D centre in Germany. An additional acquisition of another
technological company further added to the self-sufficiency of Suzlon.
At the time he was managing the family textile business in Surat, a city in
western India. The business was languishing, mainly because electricity was
extremely expensive for businesses and the power grid was plagued with
outages. It was a source of great annoyance for Tanti. In 1994, he ordered two
clxix
wind turbines from Danish manufacturer Vestas, essentially taking his factory
off the power grid.
There was only one problem. None of the four brothers, all engineers,
knew anything about wind energy. But as customers, they were all too familiar
with the inadequacies of the industry. The turbines were supplied by the
manufacturer, installed by another company and maintained by a third. By the
time a turbine was up and running, the customer was often at his wits' end.
Tanti, realizing that a change was sorely needed, came up with the idea of
offering a complete package of wind energy services. Suzlon would simply
handle everything. Customers would not even have to install wind turbines on
their own premises -- instead, a customer could buy a turbine at a faraway wind
farm and would then own that turbine's output.
WITHOUT A FIGHT
The innovative aspect of Tanti's idea had more to do with the service he
was providing than with any feat of engineering. But it was a concept that would
revolutionize the wind energy business.
Four years ago, investors urged him to sell the company. Tanti begged
off, telling them: "In a few years, Suzlon will be buying up the leading European
companies." As it turned out, he was right.
Tulsi Tanti, till some years ago, was known for his achievements and for being
the 4th richest man in India. Now with a flourishing business and offices in the
US, Europe and Australia, he has soared even further. Suzlon Energy makes
clxxi
wind turbines, which is the industry jargon for modern windmills used for
generating electricity. At present, Suzlon can be considered as being one of the
prime examples of India's manufacturing prowess.
His more established competitors in Europe realized long ago how much
of a threat this short man, with his carefully combed hair and thin moustache,
posed.
Mr. Tanti played a leading role in resurrecting the fledgling wind industry
in India, taking what was a fledgling industry just over a decade ago and
building the foundations for what is over a 2,000 MW an year market today.
This rapid growth of the market has led India to become the fourth leading wind
power market in the world.
Dr. Varghese Kurien is also called the Milkman of India. He was the
architect behind the success of the largest dairy development programme in the
world, christened Operation Flood. He was the Chairman of the Gujarat
Cooperative Milk Marketing Federation Ltd. (GCMMF). And his name was
synonymous with the Amul brand.
Dr. Varghese returned from US in 1948 and joined the Dairy Department
of The Government of India. In 1949, he was posted as Dairy Engineer at the
Government Research Creamery, a small milk powder factory, in Anand,
Gujarat. Around this time, the newly formed cooperative dairy, Kaira District
Cooperative Milk Producers Union Ltd., was engaged in a battle of survival
with the privately owned Polson Dairy, which was a giant in its field. Enthused
by the challenge, Dr. Varghese left his Government job and volunteered to help
Shri Tribhuvandas Patel, the Chairman of Kaira, to set up a processing plant.
This led to the birth of AMUL and the rest is history.
In 1965, the Prime Minister Lal Bahadur Shastri, created the National
Dairy Development Board (NDDB), under the leadership of Dr. Varghese
Kurien to replicate the success story of AMUL throughout the country. In 1973,
Dr. Kurien set up GCMMF to market the products produced by the dairies.
Under Dr.Varghese Kuriens stewardship, India became the largest producer of
milk in the world. During his illustrious career, Dr. Kurien won many accolades
and awards. These include the Ramon Magsaysay Award for Community
Leadership in 1963, The Padma Shri, the Padma Bhushan, Krishi Ratna Award,
Wateler Peace Prize Award of Carnegie Foundation, World Food Prize Laureate,
International Person of the Year, by the World Dairy Expo, Madison, Wisconsin,
USA and the Padma Vibhushan.
Under his dynamic leadership, the group has diversified business interest
ranging fro alcoholic beverages to life sciences, engineering, agriculture,
chemicals, IT and leisure.
In 2000, Vijay Mallya entered politics, took over as the President of the
Janatha Party and became a Rajya Sabha MP. In 2005, Vijay Mallya established
Kingfisher Airline. In a short span of time, Kingfisher Airlines has carved a
niche for itself. In 2010, it made acquisition of Air Deccan, the no-frill airlines,
the first of its kind in India.
clxxv
Vijay Mallya has other interests too apart from business. He has won
trophies in professional car racing circuits and is a keen yachtsman and aviator.
He has also won numerous trophies in horse racing including several prestigious
Derbies.
clxxvi
CHAPTER 5
Ajay Piramal took the company to a place among the top five
pharmaceutical companies in India through a string of overseas
acquisitions.
Amar Bose first displayed his entrepreneurial skills and his interest in
electronics at young age, when, he enlisted school friends as co-workers
in a small home business repairing model trains and home radios.
Anil is unafraid of risk; once he has defined his goal, he will go to do it.
That is how he has turned around his companies. More importantly, his
attitude is to plough back what he has earned.
A pioneer who set India on the global metals and mining map.
Led the Vedanta Groups primary listing on the London Stock Exchange,
a first for an Indian business house.
These are changing times. Yet in the middle of all the changes there is
one thing that constantly determines success. Some call it leadership. But
to his mind, it is the single-minded pursuit of excellence.
Brijmohan changed the rules of the business by trusting his gut instincts;
introducing business norms that were ahead of their time, and by
investing in strategic relationships.
"Don't dream if you can't fulfill your dreams'' Brijmohan Lal Munjal is
often fond of saying.
Have an idea that you absolutely believe in. Surround yourself with
people who share that dream and focus on areas that are actually your
weaknesses, he says.
It was his vision and entrepreneurial acumen that enabled HDFC to create
a niche in housing finance and emerge as the market leader.
He says Till my last breath I will work. To retire there is only one place,
the cremation ground.
Remained on the top till the end by virtue of his ability to dream big and
translate it into reality through the strength of his tenacity and
perseverance.
It was hard work, passion, and a fire in the stomach titanic struggle for
almost six long years which brought success to Ekta Kapoor.
From the beginning she has worked, eaten and slept only with television -
thinking of concepts, casting, styling, selecting technicians, shooting and
scheduling, marketing and acquiring the new skills required to succeed.
Success has changed her completely. She is now craving for more, open
to improvement and determined to make it to the top.
With his intense zeal and highly focused approach, Galla Ramachandra
Naidu propelled Amara Raja Batteries in the top league of battery
companies in India.
He always took bold decisions. When the company was started, he made
a decision to depend heavily on fresh recruits.
Throughout his life, Rama Prasad Goenka has taken keen interest in
building business bridges for India with leading countries of the world
and attracting technology and investments from abroad.
clxxxiii
He had a sharp business mind and made friends for life and kept his
word.
Jindal always had the conviction that India should be self-reliant in every
sector of industry. He visited several foreign countries to elicit latest
industrial technical development and know-how. He acquired a great deal
of knowledge, which he aptly applied to enhance production of his
industrial establishments.
regardless of their caste, colour and creed. He firmly held the view that
all differences in life that exist today can be amicably resolved with
meaningful meetings and dialogues.
Jindal's mantra was where others saw walls he saw doors. Then
whether it was opening doors or breaking down walls he always led the
way.
Wavetel gave Chennai the concept of the first retailer delivering mobile
phones to doorsteps.
They are also the first store (in the mobile market in Chennai) to get ISO
certification for all their chain stores.
He brought in many innovative schemes like buy one get one free in the
mobile industry and that sort revolutionized the trade.
He is the first mobile retailer in the country to start a 24x7 call centre for
the customers which other dealers across the country followed.
Dr Reddys Labs has been credited with turning the Indian bulk drug
industry from dependence on imports to self reliance and finally into the
export-oriented industry that it is today.
He saw to it that the moment they got into a city, they started as many
stores as possible there. Only that made business sense.
As founder and its Chairman, it is his fervent wish that the innovative
spirit shall endure and will be passed on to the successive generations of
chemists and others and that this will form the backbone of this great
institution.
He believes that through efficiency, they are helping the consumers save
more.
Nirma focuses on cost reduction strategies to make a place for itself in the
market.
Nirma has always been known for offering quality products at affordable
prices and thus creating good value for the consumers money.
clxxxvi
Apart from other educational institutions, Nirma has also set up Nirma
labs , which prepares aspiring entrepreneurs to effectively face the
different business challenges.
He is the man you are most likely to ignore at the Pantaloon or Big
Bazaar store, as he stands in a corner observing the way you shop. But
make no mistake; what he may lack in sartorial style, he more than makes
up through his observation powers.
Kochouseph had a clear vision and foresight about the market potential
for voltage stabilizers in the days to come because of the poor quality of
power available and the potential for electronic items.
Oberoi can be aptly termed as the father of the Indian hotel industry.
He was among the first to recognize the potential of the tourism industry,
its ability to contribute to Indias economic growth and generate direct
and indirect employment. He worked tirelessly to put the Indian hotel
industry on global tourism map.
clxxxviii
Certainly he did not give much of the credit to luck. True, he stood at the
right time at the right place to confront his destiny, but this was just
physical happenstance.
Narayana Murthy had the vision to forge ahead in the computer and IT
industry and rightly picked up his colleagues who later became his co-
promoters of Infosys.
The life lessons he has learnt are the importance of learning from
experience, the power of chance events, a growth mindset, and self-
knowledge what ultimately helps develop a more grounded belief in
oneself, courage, determination, and, above all, humility, all qualities
which enable one to wear one's success with dignity and grace.
Following the bad times in the airline industry, Naresh Goyal joined
hands with his prominent rival Vijay Mallya's Kingfisher Airlines, thus
making Jet Airways-Kingfisher not only the largest market player, but
also enabling both the airlines that would otherwise head for a collapse to
clxxxix
economize and save. This shows his business acumen keeping business
interests above personal interests.
Ramnath Goenka took over the loss-making Madras edition of The Free
Press Journal, drove the delivery van himself to dispatch the papers and
started publishing it successfully.
He founded the Indian Express. Following this, both the Indian Express
and Ramnath Goenka openly challenged the British Raj.
His critics believe that his passion for politics was the fire that led the
newspapers from Indian Express Group on a blazing trail.
cxc
He knows that there is no substitute for hard work. ''I set a goal and then
go ahead with dogged determination till I have accomplished what I set
out to achieve.''
He has the ability to take a risk and the ability to take a step forward.
He would like to be known for creativity and for injecting and spreading
the 'I can' spirit.
G.M. Rao has laid a strong emphasis in building a transparent and system
driven organisation.
This serial entrepreneur, with a penchant for executing projects before time,
has always been ready to seize every opportunity that came his way.
My father has always believed in focusing on one project till such time
that we secure it, says G.M.Raos younger son. This is why we have
managed to be successful in whatever we have taken up. Perseverance
and single-point focus is the clear message for all of us.
cxcii
Passion for challenge has not only seen G.M. Rao scripting his own story,
but also changing his characters and goals to cope up with changing
scenarios.
He strived to put the Indian industry on the global map and worked
diligently towards this goal until the last day of his life.
Ask what he does, and he will tell you only that he works in hi-tech, just
like hundreds of thousands of other young people in the Valley.
What really set Sabeer apart from the hundreds of entrepreneurs is the
gargantuan size of his imagination or dream.
Food business is not just about selling but also taking care of quality and
the people associated with it, Sarath points out. And how does he manage
his team? I ask them to write their dreams on a piece of paper and advise
them to think of developing themselves, says Sarath.
Have a long-term vision, and remember time is never lost for following
your passion.
Shahnaz Husain has become known for her specialized clinical treatments
and therapeutic products for specific problems.
The lady invented a marketing style uniquely her own; she decided to
make the brand a personality-driven one, flying in to various cities to
lecture on herbals and Ayurveda, inaugurating Shahnaz franchises and
salons, and returning the same day.
He performs silently and continues to let his works talk for them.
Shamit faced every challenge that tried to hinder his progress with
inerrant determination.
Shamit Khemka has a knack of playing the lead role in every activity that
he indulges himself in.
To walk with the pace of time, and stay ahead of it, he garners
information by reading books and browsing through the net. He keeps his
eye on latest trends and styles and encourages every member of his team
to enhance their knowledge base.
Like a true leader, he keeps his team aware of any impending challenge
and motivates them to achieve the newer height by conquering the limits.
Shashi Ruia imbibed the spirit of enterprise from his father who took him
along wherever he went to start a business.
The story of great businesses in the history of world has not been written
by wealth but by innovation, enterprising attitude, skill and an ability to
see beyond the present. Shashi Ruia probably is one such individual, who
has written his own history by dint of his courage and never-say-die
attitude.
cxcvii
Ruia has not only masterminded the group's business strategy but has also
consolidated a whole range of activities through backward and forward
integration.
While most others prefer a hands-on approach, he is the man who does
the least himself, apart from strategic thinking or prioritizing and leaves it
to his team to find the best path to capture the objective. But is not that
leadership is all about.
The bearded high tech entrepreneur nurtured HCL in his signature style
of decentralized management making it a billion dollar group with 100
offices worldwide. In the process, he created wealth for himself, his
associates and investors.
In all these years, Nadar never lost sight of being a visionary. The
corporate restructuring he undertook over the years resulted in several
companies, each with a chosen professional head.
In a short span of time, Shiv Nadar has reached pinnacle of success by his
hard work, vision and entrepreneurial spirit.
Singh says that observing Welch's toughness with GE's managers in close
quarters provided a model for running DLF: Think big and be a sector
leader.
DLF always aims for the very best from day one.
Subhash Chandra Goyal was the first in India who sought to harness the
huge business potential of satellite television channels.
It was Subhash Chandras vision that helped give birth to the satellite TV
industry in India and inspired others to follow suit.
cxcix
The company is the vision of a man who thinks he is the father of all his
employees.
Subrata Roy believes he is the guardian of this family who has the right
to love and scold all members.
The Sahara website says Our employees are not employees. They are
family members. All belong to Sahara and Sahara belongs to all.
Sunil Bharti Mittal was one of the first Indian entrepreneurs to identify
the mobile telecom business as a major growth area and launched
services in India.
cc
In spite of his deep involvement in work, Mittal the man is calm, seldom
ruffled and very down to earth.
We are very fair to the people we work with (suppliers, buyers, staff).
We wanted to prove that even with meagre capital we could do bigger
things. Now a corporation, we are working to make it an institution.
There is no employee-owner situation here. Everybody is a co-owner and
now owns stock. It is a very enabling environment. There is no hire-and-
fire here he says.
Swaminathans stated vision is to rid the world of hunger and poverty. Dr.
Swaminathan is an advocate of sustainable development, especially using
environmentally sustainable agriculture, sustainable food security and the
preservation of biodiversity.
Dr. Swaminathan has proven that he is not only a brilliant scientist, but a
capable administrator as well.
cci
His company developed into one of the leading producers of welded steel
tube and spiral-welded pipe in the UK.
Lord Paul lives a very simple life despite being one of the richest people
in the UK.
Mr. Tanti is recognized for his personal vision and leadership in creating
Suzlon one of the worlds leading wind power players.
Tulsi is a tiger with a burning desire to play on the global stage. He wants
Suzlon to be among the top three wind energy companies in the world.
He has the determination of an uncannily shrewd businessman to be the
biggest renewable energy player in the world.
Despite his serious demeanor and modest appearance, Tanti is known for
his cunning and aggressive takeover tactics.
He is one of the very few people who are not money driven in their cause
but work round the clock to bring about a change for the common man.
Mallya is known for his myriad interests, his flashy flamboyant style of
leadership and his unorthodox style of management. His entrepreneurial
style, his trade acquisitions etc., reveal sharp business acumen.
Under his dynamic leadership, the group has grown into a multinational
conglomerate of over sixty companies. During this process, UB acquired
several companies abroad.
SUGGESTIONS
The following suggestions are made to resolve the various issues relating
to entrepreneurship in small scale industries. The suggestions are given
categorically to the government, to the banks and other financial institutions and
to the entrepreneurs.
ccv
(ii) Unutilized capacity of an industry is an index of its problems and all the
problems faced by industry leads to underutilization of installed capacity.
Power scarcity is the main reason for underutilization of capacity. Every
possible step should be taken to improve the power condition of the state
on priority basis.
(iv) The government must provide efficient and effective consultancy services
to the entrepreneurs.
(v) Unhealthy competition among the small units as well as large units
should be discouraged as far as marketing problems are concerned. The
state government needs to be active in this regard. As a sign of
encouragement to local entrepreneurs, government departments should
procure products produced by these entrepreneurs.
ccvi
(vii) Both the central and state governments should give wide publicity so as
to reach the information to all the entrepreneurs about policies,
incentives, schemes, programmes, etc., relating to small scale industries.
(viii) As far as possible, in order to reduce the competition from the large
sector, the small scale industrial units should operate in the areas reserved
for them. Similarly, more number of items should be reserved for the
exclusive production of the small scale sector.
(ix) Law and order problems need to be tackled properly by the Government
so that there is a conducive atmosphere for the entrepreneurs to run their
businesses without any hindrance.
i) It is a common understanding that all who want bank loans are not
necessarily genuine entrepreneurs or businessmen. There are some who
want to get loan merely to divert it for non-productive purposes. It may
not be difficult for banks to identify such persons. But while doing so,
banks should not discourage genuine entrepreneurs.
ii) The financial agencies must treat loan seekers as customers and not
beggars.
iv) The commercial banks and financial agencies may establish more small
scale industrial specialized branches at least one in every district head
quarters to cater to the financial needs of small entrepreneurs.
vi) Design appropriate saving schemes suitable for the poor; these are
valued, and they are an important source of mobilising funds at rural
levels.
vii) Timely and adequate finance extending upto the operational cycle of the
activity must be available to the entrepreneurs.
ix) Banks need to re-think about their loan giving policies to the
entrepreneurs. Shortage of working capital is the main factor responsible
for slow commencement of an industrial unit. So, proper handling of this
problem is very important.
ii) The entrepreneurs should take proper training through the government
and non-governmental agencies before starting a unit; this enables the
entrepreneurs to protect their units from sickness.
ccviii
v) Low level of education should not deter one to start an industrial venture,
though, it is a fact that people with higher educational levels are finding
their entry into industry easier. Moreover, higher the level of education,
the greater is the chance to start a venture as a first generation
entrepreneur.
vi) The spread of schooling has cut across the business of religion. None of
the entrepreneurial religions are placed in a disadvantageous position, by
comparison.
xi) Ambitions motivate men. It activates men, broaden their vision and make
the life more meaningful.
xii) Many of the entrepreneurs expect a lot from the state government and
other non-government agencies. But never expect its exact fulfillment.
ccix
xiv) For starting a venture, the availability of enough finance is the most
important factor. Without it, the idea to start business or venture will
always remain a simple wish.
xv) One should have some basic and essential managerial skills in the
functional areas like finance, production and marketing for entering into
industrial entrepreneurship.
xvi) 21-30 years' age group is the right time for starting an industry.
xviii) Labour should be given full opportunity of being trained. The problem of
absenteeism of labour needs to be looked into with a humane approach.
There should be employer-employee friendly relationship inside the
industrial unit.
xix) Entrepreneurs need to re-think about their banking habits. Banks are here
to help the entrepreneurs but it does not mean that these helps from the
banks are taken for granted. Timely repayment of bank loans is the need
of the hour.
xx) The small scale industrial units should maintain proper books of
accounts. Statutory obligation should be imposed on the units to maintain
and prepare their books of accounts by professional accountant.
BIBLIOGRAPHY
PRIMARY DATA
1. Interview with Tulsi Tanti, 15th July 2010; also see Charles Assissi, et al.,
There's something about Tulsi, Business India, Mumbai, 29th Dec 2007.
2. Interview with Anil Agarwal, 18th February 2010; also see Lancelot Joseph
and Roy Pinto, A man of mettle Anil Agarwal, Business India, Mumbai,
29th July, 2007.
3. Interview with Kochouseph Chittilappilly, 16th June 2010; also see his TV
interview with NDTV, We grew because of our quality, New Delhi, 5th
February, 2008.
4. Interview with Ranganathan, C.K., 25th August 2010; also see Venkatesh
Krishnamoorthy, C K Ranganathan -The inspiring success story of
CavinKare, Chennai, 22nd March 2007.
5. Interview with Vijay Mallya, 20th January 2011; also see Raj Sekher, N.R.
The Strides of UB under Vijay Mallya, Deccan Herald, Bangalore, 16 th
May 2010.
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19. Shirsat B.G., Charge of the entrepreneurs, Business Standard, Volume IX,
No.1, February 2011.
NEWSPAPER REPORTS
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14. Vinita Nayar, Doing the city pride, The Hindu, 22/08/2009.
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XXIII, No.6 to 7, Jan- Sept 1998.
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16. Jha, L.K., Role of New Entrepreneurs, Southern Economist, Vol. IX,
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WEBSITES
1. www.oneindia.com, Entrepreneurship
VITAE
PUBLICATION DETAILS
NATIONAL JOURNAL
INTERNATIONAL JOURNAL
NATIONAL CONFERENCES
1. 29th and 30th April 2011, Creating Indian Entrepreneurs Thrills & Thorns,
National Conference on Developing a Modern Entrepreneurial Society,
Business School, B.S. Abdur Rahman Crescent University, Chennai.
4. 13th &14th August 2010, My days of research with Dr. MGR University,
National Conference on Academic Research, Department of Management
Studies, Dr. MGR University, Chennai.
10. 29th March 2007, Ancient Indian Advice for Modern Management, National
Seminar on Indian Ethos and Spiritual Values for Organisational
Management, Department of Management Administration, Annamalai
University, Chidambaram.
11. 8th March 2007, Employee Retention Strategies in the Changing New
Global Order, National Conference on Challenges to Globalization and
Strategies to Overcome them, Department of Management Studies, MNM
Jain Engineering College, Chennai.
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INTERNATIONAL CONFERENCES
4. 3rd & 4th April 2009, Global recession Impact on Indian Human Resources,
International Conference on Transnational Business: Challenges &
Strategies, Department of Management Studies, Dr. MGR University,
Chennai.
6. 21st & 22nd September 2007, Exchange Rate Management Policy, Pros and
Cons to Indian Economy, International Conference on Global Business
Strategy in Competitive Environment, Sai Ram Engineering College,
Chennai.
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