Secrets of Marwari Businessman

Secrets of Marwari Businessman: What they don’t teach you at the Harward Business SchoolBY I N N O V A T I O N L A B S ON A U G U S T 1 1 , 2 0 1 2 · L E A V E A C O M M E N T Known for their business acumen, adaptability and success Marwari business men and their methods of business are a great source of inspiration and learning for modern as well as traditional businesses. In history, Marwari entrepreneurs migrated from their homeland Marwar (a region in Rajasthan) and have spread across India and now world. They have adapted themselves successfully to the industrial and business environment of large business centers of India such as Mumbai, Kolkata, Chennai, Bangalore, Hyderabad. The emergence of Marwari businessmen and subsequently expansion of their business form regional to global geographies in the past 20 years establishes that in business, Marwari school of thought is very much relevant in the modern era as well. Read the book, Made In America and after first 50 pages you will realize that, Sam Walton’s business and even life philosophy was quite close to the Marwari school of thought. Sam’s frugality in business and being a family man are some of his traits which you can find in an average Marwari businessman too. The only difference was Sam’s business vision was very big than an average Marwari of today. However this too has started changing in the past couple of decades. Accomplished Marwari businessmen such as L N Mittal, Rahul Bajaj, Gautam Singhania, Rakesh Jhunjhunwala have proven their metal not just in India but all over the world. Their business philosophy and practices have succeeded at all level be it regional, national or global platform. It is believed that you do not have to teach business to a Marwari. They get their business knowledge and acumen not from any business school but it is transferred from one generation to the next in various forms both practically and theoretically from a very early stage in life. Let me show this to you with one example in this blog. By now you must have rightly guessed that I belong to the same Marwari community and have seen the business world from small town enterprises to global corporate. My “bauji” (grandfather) left his family business in Rajasthan and migrated to Madhya Pradesh where he grew his business from a footpath vendor to number one fabric retail shop of the town. I was born during the era when his business was already at its peak. During my early ages, he used to teach me his business principals in the simplest and transparent forms. One of his theories was “if you can learn to purchase best quality of vegetables at best prices from a vegetable market you would become a real Marwari businessman”. I used to go with my bauji to the big vegetable market and observe his whole process of buying vegetables and coming out of the market with the best quality vegetables at a price very few people in the town could negotiate. Through observation and practice I also became an expert in purchasing the best vegetables at the best price. Unknowingly in the process I had developed certain skills and realized why bauji said what he had said. So what do you think my bauji wanted me to learn from this act of buying best quality veggies at the best possible price? I didn’t even realize what I had learnt from that practice until recently when I observed and analyzed my skills of buying household items from the best seller in the market and at possibly the best price. Working backwards I realized bauji’s teachings gave me following: 1) Ability to scout the market to see who is selling what 2) Ability to judge the quality of merchandise 3) Ability to identify vendors selling the best quality merchandise 4) Ability to negotiate with vendors/sellers 5) Ability to develop a relationship with vendors so that they can a) impart give category knowledge and also b) negotiate to a price they would not sell to anyone else usually 6) Skills of clubbing purchases together in order to get more bargain The more I thought the more I dug out about what I had learnt during my childhood. During those times I would also not just scout in one market but would travel to more than one markets located in different parts of the city. I also learnt that there are different times of arrival of fresh vegetables in various markets and therefore could get fresh vegetables during any time of the day for home. I had developed relationship with the best vendors who after a while would reduce the price of the vegetables before I would negotiate with them. Not only this, they would also keep good quality material for me separate and would show the new arrivals to me before they would show it to any other customer. I learnt that advantages of good relationship go beyond just the business. Two of the vegetable vendors who knew my bauji and because of him me, came for marriage ceremony as well. All that I had learnt from my bauji has unknowingly become the way I live and helped me immensely in my various jobs. I also realized most of the Kotlers, Aakers and Poters which I had read during my MBA were not all that new to me as they were to most of the other students in the class. The art of procurement which I had learnt during my childhood from my bauji in a small is practiced by the large global corporation world around. So here is the secret of a Marwari businessman: A Marwari learns the tricks of the trade right from his childhood which therefore, later on when he takes on the business on his own come very natural to him. This wealth of knowledge is the collective wisdom gathered over the ages and refined by thousands of Marwaris constantly and precisely falls under the category of “What they don’t teach you at the Harward Business School”. Learnings from Marwari Business Family Learning’s from a Marwari business family - For Startups and Family Business Entrepreneurs After graduating from B-School and having learnt all the Porter’s Model and trick of trades for running business, I was all excited to join my family business as I was eager to implement my leanings in real time. I made my business models and algorithms for processes to be implemented in my company. As I joined, everything turned topsy-turvy! My staff looked at me as if I am a dumb alien creature! My plans and ideas were listened as I was cracking CID or Rajini jokes. The only person looking at me with high hopes was my Father but more I saw hopes in his eyes the more I was getting suffocated as I had no clue what to do and from where to start! I can’t just simply go to him and say: Dad, its not working! That’s like being a loser. Whatever I planned and implemented on floor was scrapped next day. All my motivation and excitement just simply went for a Whirlpool ride in an endless ocean. And that is how I got inaugurated to the learnings of Marwari B-School. In MNCs they call it an Induction and Training where you will learn only your job profile but as an Entrepreneur you have to wear several hats in a day, from a CEO to Electrician. My first and biggest lesson in Marwari family business was to be flexible with work profile and be ready to get my hands dirty. Which I guess is important for entrepreneurs to learn and understand in this flamboyant era of entrepreneurship. Financial Management: For centuries, Marwari’s have been known for their financial practices. You might require software to make a balance sheet but a Marwari can do it in 3x4 Inch of paper! Trust me, they can. The day I started in business, I was told 100 times that Debt is bad! It’s an evil. In general an incorporated company has a life span of 30 years (Max) but see the family businesses in India, they have been running for more than 60 years.From small to big, one thing is common either No debt or Balanced Debt. It is important for an entrepreneur to understand that unbalanced and over optimistic debt can kill your dreams overnight. I am not saying that debt is bad, To grow at a particular level, debt is required but grow slow and calculated for a sustained living for you and your company. Simply to put, before talking about making billion dollars at-least make a million. Gripping your financial decisions is very important. Every rupee saved is rupee earned. Hit hard on negotiating prices with your suppliers no matter how small is the amount. As entrepreneurs, we don’t give much importance to small purchases but it helps you cut your overheads and thus brings financial discipline in your employees too. Managing HR: Managing employees seems to be a very difficult task. If it’s an MNC or a small business, it’s difficult. What I learnt from Marwari family B-school is that treat your employees as if they are a part of family. Understand their personal problems and remember their names, It makes them feel special but do remember to draw a line and respect that. After all they are your employees. As entrepreneurs we often tend to restrict our staff to certain job but personally I think that it’s not right. Freedom of thought, freedom of creativity and freedom of articulation- is what they deserve. Let them work as entrepreneurs and not as mere robots. When I joined the business, none of my employees used to respect me and it’s fair from their end as I have not done anything for them. Gradually I spent my days in shop floor and spoke to everyone, be it a labor or a staff. They had problems with some processes, which they told me and were afraid to disclose it to the constructor of the business- My Father. I did take their feedback associated with the problems faced by them seriously and did the best for them. That’s how I started growing the root of my respect within the company from the people of the company. They gained faith in me as they got, what they wanted- a Vigilant in me. “Knowledge is power”- a very old saying but still a startling fact useful in any grounds of business be it securing employees belief or be it convincing clients.When your people know that you are very well aware of what’s happening in the company and about the future roadmap, they will look at you with tons of hope spiced with respect. Cutting Overheads: The root of such a practice lies in considering your bank’s savings account as piggy bank. MNCs often end up with over hiring employees and then during downfall. wedding etc which is now legally called as ‘Trust’. a day and does the entire bank. What may seem a thousand buck to people. Maybe that is why in Marwari SMEs you can find employees working for 40 years! As startups and SMEs. What makes a Marwari go through such a long process of thought before installing an AC? He thinks. If you have to learn how to cut overheads.The guard sitting inside the plant is packing goods.leading to national outrages worldwide because MNCs were FIRING as to cut overheads. There exists a special bond between the Owner and employees (bottom and Top line) They start treating their ‘Babuji’ (Owner) as their god. While doing multiple jobs the employees get more connected to the system and working of the company and their loyalty increases. It takes years of planning for a Marwari businessman to install an Air Conditioner in his office and with all the planning the calculations of power consumption no matter how small or medium scale Enterprise it is has been done erstwhile the installation. insurance. postal jobs and small purchases. if they have no one. simply walk into a Marwari’s office. As a B-School grad. when you can’t afford to give high packages. They know it. hopes and most importantly dreams. For centuries. financial discipline.During the great Economic turmoil where the Western markets had to experience with the Horrifying Recessions. For every extra rupee earned. Marwari’s have been saving for their kids’ education. the labour loading the goods is trained with computerized weighing machines. My car driver drives for 4 kms. a Marwari spends only either on education of his/her child or wedding. Even in bad times of business. a Marwari sees its time value of money! Not often you can find a Marwari living on a credit card. They can skip butter from their meals but not make a living on credit. Savings and Future Planning: It is rightly said. a Marwari can do a lavish wedding for his kids or can send him abroad for education. many lose their jobs. their ‘babuji’ is with them. can I buy a machinery for 30 Grand’s which can give an output and ROI! It’s been 35 years to my business and I don’t have an air conditioned office but surely my machines are adding! This is an important lesson for an entrepreneur as to put company before self. From interiors to staple pins you will find a cost cut. it’s your Existence and it’s your Identity. What I learnt from a Marwari business is to take 200% from your employees. I must say that buying from credit card is cheaper than paying upfront cash but that’s what Marwari’s are known for. they take it against their pride. you have to hire right resource! You require the right attitude and not much of an aptitude in your employees. he might skip . After all it’s your Respect. I have learnt to be connected with grass root and developing an ethical approach for a sustaining business which I personally think is needed in today’s young entrepreneurs. The financial discipline not only includes.shopping or a Vegas trip for once but will save it for his family’s future but yes. Never commit a false promise. my father would say ‘Beta’ and for them. Consider your future plans and savings before switching from brand X to Y. As said. Its done on a call of 20 seconds no matter the size of order. he will surely shop and make a Vegas trip with extra 2 rupees earned! Now a days. To get yourself established in market. for brand Y and the maze goes on. thrice. you have to be straightforward and very honest. how you save and spend money it includes how you give money to your vendors. You should have the DARE to say NO! if you cant fulfil the order in a given timeline. he is their ‘Chachaji’ ! The trust between them is so much that they do not need POs (Purchase Orders) to place an order. If your payments are on time. To be a known and respectable figure in market. If you are growing. I can assure if you are in price competitive market and you are able to loop your customer well. loop your customers. life styles have changed if you have a rupee extra you will shop for brand X and if 2 rupees extra. For Entrepreneurs. as you never know he might have promised someone relying on you. I have seen many customers visiting and one thing that I learnt was how to engage and bond with your customer. pay your suppliers on or before time. you have an upper hand in negotiating with him for the next order. It makes a big difference. In Marwari they call it ‘Awaaz’ Talking about this. steal but make payments on time is what I have learnt and adopted and seen the change in myself. 100 times before buying from someone else. he will think twice. Beg. a B-School or Marwari B-School? Simple living and High thinking! That’s what I have learnt after the mixed experiences of studying in a prestigious B-School and experience from Marwari family business. Wish you all wealth and health. whereas in Marwari family Business. Talk to them about them more than what you need. So. your company too is growing. borrow. . understanding yourself within is important. The learning’s from a B-School have made me presentable and analytical. the work culture is more like a family for some customer of young age. I do not intend to say that make everyone your beta or chacha as we live in a global economy but what can be understood is. Client Relationship & Market Establishment: Sitting next to my father in office. It has also helped tremendously in developing a perspective about business operations and management practices. These small things add up for your future portfolio. BUYING LOYALTY I recall my Marwari friend telling me. people used to float companies under the employees name. but any employee going to the owner/setji…say for his daughter’s marriage. But there are other business communities the Sindhis. Loyalty was very strong in a Marwari set up. Predominantly most of these guys have migrated for existence or living. the Gujaratis. Marwaris. a Marwari would have a book(chopdi) which has all the manual entries. Even if they have conventional PCs used. because they knew these employees are not going to leave them.Siddharth Maheshwari NM Metal Works Alumni. But let us learn some management fundas from Marwaris. The salary or benefits was not great. that in earlier days when PAN card etc was not a necessary norm. . which he manages and keeps a parallel record.IIM Bangalore Learning Business Basics from Marwaris Posted on July 16. FINANCE AND ACCOUNT ADMINISTRATION:A Marwari would know all the financial and accounts on the back of his hand. He would know each and every entry and the balance sheet…with all the liabilities that he intends to pay. 2012 It is told that the best business guys are the Jews…and in India we have the Kanjus…viz. Kutchi. and Konkani People. Its like they live with those numbers. After the meal. special efforts on account receivables. Once I was with a Marwari dealer at a good restaurant way back in 1990s for a business meeting. So some things that are allowed would be waste reduction. TEACHING THEM YOUNG A Marwari family typically would have their succession plan where the children are taught the business principles very young. in fact it is a phase where they are told to observe and do all the daily chores. But one thing I understood…was that to succeed one has to leave ego in the backyard and be humble RISK TAKING APPETITE . that doesn’t mean they don’t have values. But at the same time. and learn the art of observing and waiting. Even ordering a tea or snacks in office has to generate that extra profits. if it is worth taking. it has to impact the bottom line. But one could look at it as a forced savings. So manpower. One day I saw the Owner’s son actually sweeping the floor. the finger bowl was ordered. They are not given any preferential treatment. and forgets that he actually deserved much better. which the employee would not have looked at. Every investment that goes into business has to create a specific ROI. Also he would sit in the corner and do all the tasks as directed by his father. I remember my days when I was a marketing executive for an Aluminium Extrusion Company and I used to visit Marwari dealers at Pydhonie. They have clear understanding that what actually matters is the ‘Bottom Line’ or net profits that come in the books. By doing this the employee becomes indebted to the employer. DROPPING EGOS When you are trained to do even the daily chores with pride.he would tell…your daughter is like my daughter don’t worry and give him some amount which would address his emergency. capital expenditure or any business investment has to generate that extra profits. Basically the terminology is Profit on Extra Spend. FOCUSING ON BOTTOM LINE: Marwari even If he is a kabadi wala …understands business so well and money is everything for them. The dealer was so innocent and humble. switching off lights when not in use. They develop the art of patience and not getting hyper. It is like for any action/initiative that one takes. had it been given as an incremental salary every month. looking at say having flowers at the reception area etc would not be allowed. So they will not get into any business where the revenue to effort doesn’t generate enough bottom line. to use the same finger bowl that one of us used. They don’t do anything just for the heck of it…nor for convenience or just to create feel good factors. all your ego massaging definitely is thrown out of the window. A bit of history Before we attack the question at hand. and what makes him tick. When I asked him. they make it a point to ask for Jain food. They are very good in managing risks and also have a proper risk mitigation strategy in place. as the name suggests. we need to understand who a Marwari is. India: What makes marwaris such prolific and successful businessmen of the world? 1. Most of the business they get is from their own community members. whenever they go anywhere. By doing so they create the communication flow and a demand for Jain food…They care for their community. but later got into stock trading and is a classic case of how perseverance can be rewarding. which I recollect with my Jain Marwari dealer. Marwaris. you find most of the restaurants’ offering Jain Food options? He explained that normally as a community. India. TAKING CARE OF COMMUNITY INTEREST The other beautiful instance. which started as a information portal. because of which they are able to deliver results and gain in in long run. whether as a Jain dealer he was allowed to do so? I also enquired how come. is a term for people hailing from the (loosely defined) Marwar region in the desert reaches of Rajasthan. They also are adaptable and you could see examples in India Infoline(by Nirmal Jain).Marwaris understanding of risks and risk mitigation strategies are one of its kind. . was once when I saw having him onion and potatoes during a lunch session. by the way) have been denied this gift (until recently. Financing is readily available to honest young Marwaris. And fortunes they did make. Community Rules Entrepreneurship is fiercely encouraged to this day by Marwari society. though. Instead. or r trader caste) people from all over Rajasthan. or the priest caste) from the region are often lumped with them.(image: Wikipedia) The shaded area is traditional Marwar. who would leave their wives and children in their ancestral villages and travel to distant lands to try their fortune. 2. and people of Rajasthan (translates to 'land of the kings'. Rajasthan is a desert. although Brahmins (the learned. Shudras (lower castes) and Kshatriyas (warrior class aka Rajputs) are excluded. Agriculture has been the backbone of the Indian economy. they organized themselves into a community of skilful traders. For all practical purposes today. Starting a business will earn you more respect than a college degree. "Marwari" refers to the Baniya (Vaishya. The wealth of most of North India has traditionally resulted from the fertility of its land. when the Indira Gandhi Canal project has brought some water and greenery to the region) The Marwari businessmen were an industrious people who refused to resign themsel themselves ves to poverty just because they were poorly located. and . Hence ordering flowers for office tables in a typical Marwari office would be disallowed (despite the plea that they enhance profitability). increasing influx greatly This also led to the formation of a close-knit society where traditional values and rituals are rigorously preserved. To add to this. A successful businessman might call unemployed relatives and neighbours from his home village (strong ties are maintained for generations after migration) . It’s the ‘currency’ of success – pun intended. What Monetization and its terms means is also unique for Marwari’s. my Nani (Grand mother) offered me a free seat into the Marwari Business School. You could spend on things only if they made money. Also. Every capital investment (be it land.This is a self-perpetuating process. the facets of revenue became very clear to me. A Marwari’s religion is making money and they meditate on it. These are the seven subjects I learnt: M = Monetization Mentality For Marwari’s. I learnt that Revenue was not what you ‘bill’ or ‘pass-thru’ or ‘recognize’. money pretty much means everything. There is a strong sense of family and community (down to ancestral village) among Marwaris. Revenue was always what you ‘net-net’ earned that came in your coffers. or machine or even cars and computers) had a ‘monetization expectation’ attached to it. People are sized and measured not by their waist sizes but by the width of their balance sheet. Marwaris are incredibly supportive of members of their community. . For instance.education often takes a backseat for sons taking over their family businesses. I took up the offer. Revenue is bottom line for a Marwari – not top line. The Seven Subjects I learnt at Marwari Business School (MBS) • Alok Kejriwal On the last day of my ICSE exam (10th standard finals). I was 16 and I had the opportunity to go and sit in my Nana’s (Grand father) office. So. how much tax do you feel like paying this year’? My Uncle grudgingly muttered a number and that was the end of the call. an uncle sent me to his Chartered Accountant (CA) to finalize and close my Uncle's books. enter nimbly. Also. along with the ‘tax’ liability. CA to tell my Uncle what I had prepared. I prepared the P&L and presented it to Mr. I took 3 years to ‘post mortem’ the cost of everything we incurred (whether real or notional in terms of interest lost) and link it back to revenues that were being earned. Trial Balances.This ‘monetization mentality’ made me create what I believe was the most detailed costing breakup of any socks factory in the world. P&L statements and Balance sheets are the juiciest novels that a Marwari reads. there would be at least a couple of instances when a very old worker (you know the ones who look like grand dads) would hang out near the factory cashier with a couple of his relatives. The first time this happened I was stunned. I remember when I was 17. gently walk together my father and then bend down to touch his feet. A = Accounting Archery All successful Marwaris really know their accounting. then 'X' was the revenue that needed to be generated to make a PROFIT on that extra spend. CA. ‘Creativity’ in accounting was the highlight of what I learnt. CA took my P&L and completely re-crafted the numbers (and believe me legitimately) to perfectly match the tax outgo my Uncle wanted to pay! R = Righteous Rigor. I could tell you that if you ran extra air-conditioning in the office building. CA asked my Uncle ‘Babu (Sir). At the right opportunity. If collecting money from debtors were improved by 3 days. the worker would gently knock on my father’s cabin door. My dad of course would immediately stop the old man from bending further. do a ‘Namaste’ (fold hands) and greet the man. Each month. Instead Mr. . Like a good student. I mean it was very demeaning to see such an old man behaving in such a subservient way. What they clearly understand is the concept of ‘Capital’ & how Capital gets generated at the lowest cost and how that same Capital then needs to be exploited to the fullest. I would almost always notice the tears in the old worker’s eyes. He chuckled and then called up my Uncle in my presence on a speakerphone. I learnt that revenue was something to be always ‘improved’ – not just by price hikes alone. Then Mr. I expected Mr. then there would ‘X’ reduction on bank overdrafts and hence extra income to the firm etc. he pointed me to a rather uncomfortable looking ‘corner’ chair. learn how to sit. Watch and Win When I sauntered into my father’s factory on a bright Monday morning on my first day at work. He said – ‘Alok. We have to honor their faith in us. Instead I was being locked inside the backstage changing room? Slowly. banked safely for an important day. a huge telephone on my desk with lots of blinking lights (remember the EPABAX) and a constant stream of visitors to meet and greet me. Grrrr…I was exasperated! I mean I was a rock star supposed to gyrate and prance all over the stage. Imagine telling this 60-year-old worker on the eve of his daughter’s wedding that his fortune of 30 years will be paid ‘later’ (meaning never). I thought the world would be at my feet. ethics and righteousness and how to actually live up to others people’s TRUST that they have placed in us. I remember his words so clearly even today.I learnt later that these workers had worked for 30 -35 years in our factory and this was the ‘D’ day they had withdrawn their Provident Fund account (saved in the factory for all those years) to be used for marrying their daughters or for buying a house etc. W = Wait. For almost one year I sat like a flower vase on a pedestal in my dad’s cabin just watching him function. the concept of ‘waiting and watching’ began to sink in. The amount they received was largely disproportionate to their monthly salary (lacs of rupees) and they solely relied on our Company to safeguard their moneys. and asked me to SIT. Quite the reverse of that happened. Most People are naïve and innocent and very trusting. lots of papers and files. . If you can just master sitting. I was not asked for an opinion and was even barely noticed! Being completely ignored became a normal emotion for me. In my mind I had a desk to myself. This taught me a lot. When I entered my dad’s cabin. It taught me morals. and I spent the hours just learning. If you have read how corrupt many companies have been with PF accounting and the fact that some of them have NOT even maintained accurate PF accounts and have squandered what was not their own money. you will have learnt a lot’. you will realize how damaging this is . One has to learn to wait. However he was the heart of the factory and Mr. Baron was sharing his room with him to make sure he was comfortable! That trip I learnt a lot about attitudes. My buyer said ‘Alok.com (my first independent business). retrieved a bundle of socks from his bag and laid them on the table. . Baron smiled at him and excused himself and arranged breakfast etc for the man. My father and I were sharing one room. it’s a cotton mélange. He was hugely successful and very well known globally. All good things in life take time. That was one of the busiest fairs in the world. He did not know how to operate the bathtub shower. and how to adjust them to be a very successful entrepreneur. Later he came back and explained that this man was the chief jobber (mechanic) in his Indian factory and had never traveled in a plane before or ever stayed in a hotel. I met my buyer from C&A (An erstwhile large European retail clothes store) in my factory showroom and began discussing new orders. I was on top of the world. this ‘waiting’ training bore rich fruit. I asked him what this yarn was and he very casually said ‘oh. Textile Baron. a rather disoriented looking man in a crumpled shirt and Hawaii slippers came across and stood next to Mr. In the hotel lobby. All global socks manufacturers are working with the same yarn in their country. I looked at him.And how I learnt! From everything about machines to finance to production planning to inventory management. In fact. In 1994. Marwaris generally have little ego issues. R = Risk and Reward About 4 years into having started the export division of my factory and having executed many successful orders. This was that ‘heather mixture/grey flannel’ type color (like the t-shirts that look like a blended grey). I am happy to give you an order that will be 5 times larger what we have ever done with you . A = Attitude Adjustments. Mr. The yarn color and texture of the socks caught me my surprise. I guess I was enjoying the sweet ‘high’ of success.if you can ship your socks in this type of new yarn in various color tones’. I’m doing it’. While all of us were eating together. I even found a long-term partner in Rajiv Hiranandani while waiting for hours in the Shaw Wallace office in Mumbai! Rajiv was the head of sales of Yahoo at that time and after many ‘sofa’ meetings at Shaw Wallace. I became the expert at waiting outside client’s offices for hours just to meet them for five minutes. I think I had become over confident. and the socks and said ‘yeah. he agreed to head mobile2win India – a mobile business that I was just starting up then. My buyer winked at me. I guess the biggest lesson I learnt was that winning comes from waiting. We are trained to do business and not to pretend to be the Queen. and all the hotel rooms were fully booked. my father and I traveled to Germany to attend a textile fair. In the first seven years of starting contests2win. Never once did I even feel bad or humiliated. I became best friends with these busybody’s personal assistants and secretaries and learnt a lot about the way their business functioned. As scheduled. Retrospectively put. this new yarn is a rage in the EU. watch and then win. while eating breakfast we met one of the largest textile Barons of Hong Kong – who was a Marwari and had emigrated there many years ago. I’m sure you will find suppliers for it in India without a problem’. None of my regular suppliers made that type of yarn.What I never realized was that I had taken the biggest risk of my life. I got a ‘duller’ 20’s custom cotton yarn made. The 2/40’s yarn would not have that problem because a ‘S’ twist and a ‘Y’ twist were spun together giving the combined yarn a ‘neutral’ spin – but as explained earlier. the larger is the count. I could not afford that yarn! When I explained my agony to the mill. I could have agreed for a trial order rather than one that was five times the usual size. The standard colour in Melange was grey and not ‘sky blue’ and ‘camel’. the Hyderabad Company agreed to spin a special Cotton yarn for me in their regular 2/40’s count. A couple of the suppliers in Hyderabad (the south of India) were large producers of Mélange. I began scouting the market for mélange yarn. I convinced them to spin the yarn in 20’s (20 single count) and they sent me a few spools to test. Melange. they asked me to ‘heat’ the yarn via a specific process to ‘kill’ the spin. Now. but their yarn composition was synthetic not cotton. Because the yarn was mélange and a single thread (20’s). ‘s’ stands for single yarn). I also think that greed had blinded me. I actually wanted 20’s which is used for socks. the finer is the yarn – so 40’s is good for garments and 200’s is what we wear in shirts. After an agonizing search and hunt operation. But I also learnt that what entrepreneurs do for a living is to leap without looking. Melange. When I got the yarn and spun the socks. In the end. it was ‘twisting’ and ‘turning’ like a top and making the socks look like they were ‘wrung’ to death. (In cotton. I did just that and enjoyed my second heart attack – the color of all the 5 yarns dramatically changed when ‘heated’. Quickly I began to panic because I could not find a single yarn supplier of that yarn in India. I had a heart attack. What haunted me was that non-fulfillment of the socks orders meant severe penalties and a black listing to ever work with C&A. 2/40 meant that 2 yarns of 40’s would be twisted together to make it as thick as 20’s (which is what I wanted). but the cost was double of what I was paying for 20’s yarn. got that yarn heated to kill its twist make it look like the original colour ordered and even ‘washed’ all socks to kill the little spin left behind. Because the washing was shrinking the socks. Finally. This order was looking like a train wreck for me. So buying 2/40’s was a no go. Once I received the order sheets. I had to redesign all socks specs in a way that after they were washed and shrunk. Melange! Added to the problem was that I had accepted the orders in 5 different types of yarns. they came back to the original size the buyer had ordered! . and the outcome was perfect! You can imagine how profitable the business became since we were getting paid for socks priced at EU costs whilst making them with Indian machines. the toe portion came out unstitched. I just thought of my European socks buyer and chuckled. Labour was cheap in India. Intriguingly.I made my shipment just on time and that execution paved the way to tripling our exports in the next few years. In essence. In Italian socks. but more importantly managing risk carefully and with perseverance to make it rewarding. Sock toes that are 'Granny' finished! My dad fixed the problem by using an external machine to sew the thread into the Indian sock almost needle on needle (like granny’s knit sweaters) using a slow manual process that yielded a finish that was better than the Italian machine. This experience embossed the passion to reinvent in my mind. he took up the challenge and worked back to back with his technical team to ‘refit’ Indian knitting machines bought from Punjab to make socks worthy of European feet. 20.com – I had no clue about the Internet or promotions or marketing. yarn and labour. most of the orders that came in those next 7 years were mélange yarn orders. when I walked out of my factory doors to launch contests2win. Interestingly. but knit from a machine that cost 1000$ in India vs. . so that it did not cause discomfort to the consumer while wearing. the toe was knit ‘within’ the machine and very finely. In 1999.000$ in Italy. he innovated and created a sock that was the same in quality as a European sock. The process of sewing Indian socks caused a thick seam that always created discomfort while wearing the socks over the consumer’s toes. In Indian sock machines. navy and black socks to Europe but at ridiculously cheap prices. I had learnt the very difficult lesson by taking on Risk. to be manually ‘sown’ over the open ends to close the toe. The trick that really mattered was treating the ‘Toe’ portion innovatively. that day I was wearing a pair of ‘mélange’ socks! I = Innovative Ingenuity When I pitched to my father that there was a massive opportunity to export plain white. ‘how much money would it cost to build India’s greatest salt brand?’ Sam thought for a moment and said ‘Say 20-30 crores (4-6 million US$) in media spends. Sam pointed in the direction across the street and said ‘Mr. Assuming your product is great. Sam asked the grey haired senior executive. that should take you to the top’. Nothing compares to the experience of dealing with Tata companies. I have had the honor of doing business with the biggest companies in India. Mr. **** This post is dedicated to my Dad. Grey Hair – the folks just opposite your office created Tata Salt. how a corporation like Tata thinks and behaves. Grey Hair looked perplexed. I can build 5 more Salt factories!’. The day I left the factory premises. Grey Hair heard this and almost fell off his chair… He said ‘Sam – with that money. I think I had graduated with merit from the Marwari Business School. The one solo Tata Salt brand is more valuable that 100 plain factories put together. Mr. For me personally. coming from a traditional Marwari (trader) family. Adding 5 more factories to your collection will not do anything for you’. Marwari. In 1998. Today. Some brain waves: My Salt tastes better than yours! The best way to explain this is to narrate a conversation I had with Sam Balsara of Madison Media a few years back. ***** A Marwari Entrepreneur Speaks up ! [Mr. concepts and change ‘this is how it is done’ to ‘this is how it can be done profitably’. Tata?] [Guest article by Alok Kejriwal.com. Have you met Mr. I quit and started contests2win. every salt factory in the country goes to them to supply them unbranded salt. Founder of Games2Win. Sam was invited by a Mega Marwari Corporation (MMC) for a chat to help create a Salt Brand. .I have observed that there is a constant drive in all Marwari companies and entrepreneurs to ‘re-think’ business processes. this is special – it helps me juxtapose my Marwari training vs. Alok shares pearls of wisdom from his ‘marwari’ training!] In the past 12 years of pavement pounding and boardroom hustling. after spending 7 years in the socks factory. while Colgate would have collected money from me in advance even before I opened my toothpaste box. Why I made that decision. it will not create long term value. By not aggressively creating a positive reputation. All the insurance offers were uniformly priced. I see that Value Statement at eye level while sitting on the sofa at the reception. I was told ‘advertising is a waste of money’. Just invest all the moneys in factories and machines. A few years ago. How much and how soon? Little time or money is spent in building a reputation. That’s a big risk that can cost you your business. And I have learnt that no matter how great your service or product is. I look at a toothpaste tube of Colgate in my bathroom & flip the side and read ‘Made by xyz in abc fatory’. I asked her to rattle the name of the Insurers and the minute I heard a Tata Company name. It gets you mixed up with wrong people. Its ironical that I left my father’s business to start a digital advertising business. It makes me feel nice. Companies stand the risk of being determined by legacy and hearsay. but ignoring it can have serious implications on your business. When I visit many of the big India business group offices in India. Mr. their core focus is profitability. Just consider the economics – If he were in toothpaste supplies. How short term is that! Once in a while. after buying a new car. if you can’t brand it and communicate it.From the first day of attending my father’s business. I still cannot rationally explain. Grey Hair and his 5 factories come to mind. What comes first – Reputation or Profits? If you go to most family owned companies. I just said ‘buy that one’. Building a reputation may be tough and non productive in the beginning. the showroom lady called me up and asked me my preference of insurance companies. . he would be paid 4 months after supplying his goods to Colgate. I rarely see a poster in the visitor’s area that communicates: What are their business practices? What do they stand for? What are their values? What are their views on treating their employees? In most Tata Companies. After my first round of VC funding. Of course. They were never capitalized to take advantage of acquisition opportunities and punished their shareholders so harshly that they could never raise capital again. On a depressing note. When I asked the young 23-year-old MBA what his . ‘Huh’ I asked? ‘My Company’s the one that got funded. He had read about the financing in media and cornered me. It seemed so stifling and stuck. This was especially tough during the Indira Gandhi emergency tax regime when the Income Tax rate was over 90%. siphon out’ philosophy left so many old industrial houses bankrupt. look at the state of Hindustan Motors and Fiat India today. He chuckled and said’ ‘What nonsense! The first rule of the funding game is to siphon out 25% of the funds and make yourself-rich. Even the mighty Bajaj could not build a Nano (the natural progression after a scooter). CMO. I visited a large (100 crore+ topline) textile factory in Gurgaon (Delhi) and met the CEO. Tisco.White money is more nutritious that black. Even though they dominated Indian roads for decades. I ran into my uncle at a dinner. ‘So you’re rich! Why are you looking so gloomy?’ he said. Almost everyone gave up and resorted to siphoning off money from the Balance Sheet. you have the ability to execute. Dalmia and many more. It took the Tata group to do it. but the Tata Companies hung on. The VCs got poorer and a long arduous road lies ahead of me to return the money to the VCs many times over’. Shucks… hadn’t I heard that story before? Many of my relatives have floated public issues that were nothing short of scams and they still boast about it! This ‘get rich. No one had the guts to tell Grand Dad Dinosaur that he was wrong. and deals like Corus or Land Rover come your way. 12 years ago. they are bankrupt today. Telco + 100 other Companies with massive cash reserves on their balance sheets. They all had Kumar printed as their last name! On inquiring. and CTO. not me! No one got rich. Outsiders stay away. on the flip side there are the Mittals and Ruias who have built massive empires in the past 20 years. Even today I meet embarrassed professional managers working in ‘family’ firms who get paid salaries in ‘half white and half black’ to avoid taxes! It takes a Tata DNA to create a TCS. Investors can be dealt with later’. all they did was nod at each other for consensus. it turned out that the family tree right down to the grass roots was involved in running the show. Think Mafatlal. When you build a cash war chest. We are the Adam’s family. CFO. In conversations. COO. Sometimes an Opera Singer can make the best CEO.This is lower than 1939 when the Marwari resurgence began. If you go for a live music concert or a dance performance at the NCPA (National Center of Performing Arts) in Mumbai or listen to an Opera at the Jamshed Bhabha auditorium next door. Companies like these have no future. while the Tatas play in Software. Like the Tata retirement policy. cement. I wish that all wannabe entrepreneurs and inheritors of family businesses understand this early on! 'Marwaris losing business acumen' KOLKATA: Marwaris are losing their business acumen. you will marvel at the massive contribution the Tatas have made to the Art scene in India. Given this background. That is what Gita Piramal's research indicates. rods and all kinds of cloth.vision for the Company was. I did a recon – the Company had shrunk to 20% of its market cap. most family concerns will cease to exist. all the granddads need to be sent home and professional CEOs hired across the board to run the Company. their fortunes have nosedived to 2 per cent in 2000. Life and business is being cultivated way beyond the dusty corridors of factories and sheds. ingots. Think of it – most of the old family run companies I know still make steel. They don’t hire gold standard professionals because they can’t expose their business loopholes to them. Else. I will be far more motivated to join the Tatas as the CEO of TISCO rather than become the CEO of some Industrial House in India whose CEO cannot understand if the Oboe is a wind instrument or a Shoe. he said something that I felt was his father’s vision and definitely not his own! 12 years later. Riding the peak in 1990 when the community controlled nearly 24 per cent business in the country. . Their boardroom antique furniture doesn’t think laterally and has no clue of new business lines. They would get a heart attack to pay Accenture Rs 1 crore to suggest a strategy to uplift them. if I were an Austrian CEO who can run a steel plant as efficiently as I can play the Oboe. Telecom and other value added businesses. " she explained. Analysing the situation. adding that the hunger of Ambanis was sorely missing among the Marwaris. she concluded that a basic honesty was absent among the Marwari business class. sell out or make the split between ownership and management. Kumarmangalam Birla and Ajay Piramal are making changes. According to her. she said.Also. And capital is easily accessible from various sources. Citing statistics that have worldwide acceptance. "They lack the western way of thinking that they make money for themselves. Marwari businesses at crossroads . Only 17 per cent of the remainder make it to the third generation of the founding family.That has to change. Plagued by a crisis of courage." Piramal said. Wedded into the Marwari business family. the fall is due to the erosion in the value of assets in the new age. Rahul Bajaj's company tops the value-creation list. the author of Business Maharajas. Some 66 per cent of the rest die or the founding family relinquishes control in the first generation itself. So how can older families go back to the future? Or new families prevent history from repeating itself? Marwari companies have to shut down. most business families hit their highs in Kolkata.The Marwaris claim to work for their family. the Marwaris shared network."They cling on to their inheritance and wealth though they are nervous that life is getting difficult with competition. capital and manpower.Piramal. the exit will be more painful than it was during the Naxalite movement in the '70s." she added. most Marwari business houses refuse to change. an acclaimed book on industrial families. But today. complacency and not letting go. On the Marwari business houses in the city. But if they do not change." she observed. Piramal said expectations from others would decline and allow more freedom for them to perform. "You cannot drive your son and grandson to the business unless they have a passion for it. Incidentally. With the acceptance that we work for ourselves. she said 40 per cent family-owned businesses die within the first five years. Success comes only from obsession. she has witnessed the rise and fall of Marwari businesses from close quarters.This would in turn promote a better work culture. you need a network of like-minded people and not caste-based. "Changes are always painful. said only 13 of the top 25 Marwari-run firms are creating value. "As a community. Marwari businesses are no exception." she said. the need for specialist is more than having trusted people around. The rest are all cases of value destruction. Piramal warned that they needed to act fast. the pre-dominant Marwari business construct seems to have got challenged.A leading Gujarati industrialist recently asked me the reason for the drop in the pecking order of Marwaris in India's top business groups. One possibility could be the inherent structure of Marwari businesses. information technology. technology. However. after Independence. the community has a conservative mentality which has been a hurdle to change and adopting newer ways of doing things. The community is currently exercised by an unavoidable question: Has the spirit of Marwari enterprise started flagging? The provocation for such introspection stems from the rise of a new entrepreneurial class in India which comprises very few Marwaris and consists of primarily Gujaratis. none else came to mind. brand building. new-age industry thrives on a different set of skill sets. Culturally too. they tried their hand at manufacturing which. Over time. Their patriarchal chain of command leading to a centralized command-and-control architecture with family members occupying key positions. Marwari businessmen thrived in an era of great resource crunch where risk taking was measured by the extent of leveraging capital. Except for Kumar Birla. customer service and relationships are now as much important drivers as is capital. was clearly the future. There could be many reasons for this curious turn of events. it was fine. Over the past few years. all now above 40 years. We tried to name a few potential next generation leaders from the community. R&D. Prashant Ruia. knowledge. Rewind to early 20th century. Punjabis and South Indian industrial groups. The moment there was a shift in the ruling industry paradigm. that professionals play an important role and have been able to cope better than most Marwari family members. The Marwaris exemplified a feisty and formidable spirittraders who escaped the barren business landscape of their homes and created trading outposts in remote areas. pharmaceuticals. as long as the manufacturing activity involved commodities and the economy was protected. But. Many of them had settled in Kolkata. the leaders in emerging industry categories— infrastructure. irrespective of their capability. The hangover of traditional trading mentality and short-term returns still prevails. which emerged as a commercial hub and offered manifold trading opportunities. telecom—have been markedly non-Marwaris. The new success stories in the emerging industries are also mostly family-run businesses. Rajiv Bajaj. Exceptions are the Birlas and L N Mittal who remain the beacons of Marwari . but with one major exception. This along with family splits and feuds could also be the cause of Marwari business groups becoming less relevant. Two. Bajajs. including political patronage and largesse like capturing natural resources and licences. Unarguably. the Marwari business community has now reached a crossroads and has to decide which of the three roads to take. Anil Aggarwal and Ruias of Essar who have been outstanding. The Marwaris have not been as adept at it than some of their more ambitious counterparts. to de-risk their future income streams by turning into professionals and adding value to somebody else's enterprise. Singhanias. what's unfortunate is the felt absence of a new generation of Marwari entrepreneurs displaying the same zeal. finally. It is also pertinent to note that in the last two decades. Bangurs. Or. Among the younger generation there are few like the Piramals. Academics specializing in management of family businesses believe that many businesses peter out by the third generation—the first generation builds the business. among others. the second consolidates it and the third spends it. reviving the socalled "animal spirits" that have symbolized the community all these years by creating organizations of the future.business. to monetize the value created by earlier generations and indulge in a life of leisure. hunger or courage to chart the unknown that epitomized Marwari businessmen earlier—such as the Birlas. Marwari community and the brains behind the business . Yet. One. growth has come through several channels. HISTORY The Marwaris have had a long standing association with Bengal. From starting out as traders and graduating to a flourishing industrious community. one cannot miss but mention the gregarious Marwari community that is synonymous with business in India. all Rajasthanis are not Marwaris. Saluting the contribution of this traditional yet progressive community. Marwaris are people who belong to the western region of Rajasthan. The term ‘Marwar’ dates back to the Sanskrit word ‘Maruwat’ in which ‘Maru’ means desert..By Ujwal Salokhe When speaking of communities that are deeply rooted and firmly seated in folklore. One that not only holds within it a myriad of communities.. Although Marwaris can be baniyas (business community). Pali and Nagaur and other adjoining regions of the state. Brahmins or even Jains. Geographically. particularly the areas in and around Jodhpur (Marwar). the Marwaris played a pivotal role in changing the face of independent India. India is a mixed bag of culture. One community that pays the perfect ode to the business of India—the Marwaris—cannot be skipped. Society lets some of India’s prominent Marwaris do the talking. the term ‘Marwari’ was coined by the Bengalis for these inhabitants of Rajasthan when they were brought into . it’s the Marwari baniyas who travelled to other states and even countries and developed successful businesses. but one that has also continually reaped the benefits from its multi-cultural existence. While all Marwaris are Rajasthanis. In fact. thus gaining popularity over the other Marwari sects. without paying taxes. Akbar. This merchant class commanded a great deal of respect in its hometown. Often. Around the same time. They often sported a pagri (turban) because of which they were also referred to as the pagridhari Marwari (turbaned Marwari). As their trade routes became more and more unsafe. the contract of supplying the essentials lay with the merchants of Marwar. apart from most domestic trade routes that were in the hands of . the Rajput soldiers were in Bengal. 32 businessmen shifted base to Amritsar and were given one shop each to form the Batti Hattan. The internal strife amongst the Rajput had weakened them. Ranjit Singh wanted his city to benefit from the assiduousness and the business skills of the Marwaris. As a response to which. a trait that has stuck with the community even today. Maharaja Ranjit Singh had then extended an invitation to the Marwaris to settle in Amritsar. Thus began the spread of this enterprising community to the different parts of the country. The community in turn would offer extended loans to rulers and even invest in the various public projects. Their accepting ways merged them with their new homes effortlessly. they needed very little encouragement to venture out and explore safer terrains in the country. as a part of Akbar’s camp. and the impoverished Thakurs had begun resorting to looting the caravans of the Marwari traders. even proceeded to Burma and settled in Rangoon. and fear and insecurity gripped the trading community. where capitalism dominated. Some more progressive Marwaris like Bhagwandas Bagla. Such was the clout of this emerging trading community even before the British era. Circa 1564. a mini market that exists till date in Guru Bazaar in Amritsar.the state by the Mughal emperor. Under a similar circumstance. By the early 20th century. when. one of the first known Marwari millionaires. Owing to the economic support the rulers drew from the Marwaris. rulers of different states would vie for their attention and lure them to their own state with fertile land that these merchants could till. their opinion was given due weightage when it came to the governance of the states. regions that soon became home grounds to them. the Shekhawati region of Rajasthan was battling a combined force of war between capitalism and feudalism. By 1947. Surajmull Nagarmull established the first jute factory. while the Sekserias set up textile mills. Poddars (Siyaram Silk Mills) and the Singhanias (Raymond Group) began their lives parallel with India and . The rise of independent India saw this peace-loving community. the new-found India had already found its new breed of business tycoons who were set to change the fate of the country. bank business and selling of clothes in their control. primarily for the development of its people. By 1911. Ramkrishna Dalmia established cement factories. The Marwaris now worked diligently towards strengthening their hometowns by building schools. following suit. wells. Ruia College.the Marwaris. temples. when the British were booted out of the country. Soon. the IITs. Families like the Birlas (now Kumar Mangalam Birla of the Aditya Birla Group and Yash Birla of the Yash Birla Group). they also had the opium trade. with its water-like property to fit into any given mould and an astute sense of business. resurrect its own economy and industries. the Goenkas (RPG Group). the Marwaris even replaced the Khatris and the Bengalis as brokers. Poddar School are all by-products of their sentiments towards charity and their acts of generosity. the Birlas opened the first Indian jute export office in London in 1917. Dalmias. Institutions like the Birla Institute of Technical Training. hospitals and colleges—all in the memory of their forefathers. spread across one lakh sq ft.” It’s not only holding key business houses that has helped the community sail through. The saying stands true to the fact that nothing can shake the grit and determination of a Marwari.. believes that it is not the caste. thus giving themselves the business community tag. “It is no wonder they (Marwari youngsters) excel when they take the helm. It’s simply that the Marwaris are very practical about business and treat it as an important part of day to day life. founded by Sukhraj Nahar.” Adding that the children in Marwari households often grow up listening to business talks between the elders of a family. community or background that makes for a successful businessman.continue to form an integral part of our lives even in modern day India. wahan pahunche bail gaadi. intelligence and upbringing that does. wahan pahunche Marwari. Hailing from the Dhoot family that successfully runs the industrial conglomerate. “The men of our community were mostly farmers. Videocon has enhanced the growth of the country by actively making innovations with a consumer-centric approach. (Implying that nothing comes in the way of the Marwaris and their business.” Highlighting Videocon’s remarkable contribution to India’s growth since the industrial revolution. we have also built many Jain temples like the famous Sarvodaya Nagar Jain Derasar at Mulund West in Mumbai. Deputy Editor of Marwar magazine says. aur jahan naa pahunche bail gaadi. part of the Nahar Group.” says ace . Anirudh elaborates. In Rajasthan and Mumbai. But. having said that. perseverance and their undeniable ability to dream and achieve. Ajay Nahar. the scion Anirudh Dhoot says about the Marwari business sense. he also observes.” Contrarily. while maintaining respect and order that has helped them carve a niche for themselves. the inaccessibility of a place…). Nirati Agarwal. traders or merchants and they could never compromise with their business acumen. Managing Director of Nahar Projects.. IQ. This unparalleled acumen is passed on to generations and that’s how our knack for business can be justified. championed the cause of the growth of their native place.” The Nahar Group. after all. but a person’s education. where I am an active trustee. “The name Videocon is synonymous with every household in India. but also their “hard work. Says Ajay. “I am working towards new ventures such as developing a 75-bed charitable hospital. “I also think that most Marwaris that I have come across are excellent in negotiations while doing business. Videocon. have the confidence to crack great business deals and are able to take calculated risks in their projects. Ranging from consumer durables to digital broadcast. “Jahan naa pahunche rail gaadi. BUSINESS As an old saying goes. not in the least. they’ve practised thinking like business owners for at least 10 years more than the average businessperson from any other community. Bhinmal in Rajasthan. while also already running another set up there for medical needs. RK Somany of Hindustan Sanitaryware and Industries Limited (HSIL) and Hindware. CEO of ICICI Bank. accountability. Anirudh says.Marwari fashion designer Raghavendra Rathore. Biyanis of the Future Group. the corporate world has also seen successful Marwaris like Chanda Kochhar. Atul Ruia of High Street Phoenix and the Kasliwals of S Kumars (a business that split in 2008). Speaking of the ‘Marwari ways of business’ that have guided them. Piramals. while Ajay owes his success to being ethical and a man of his words. reputation and morale. All the individuals in the organisation follow these ethics. Dokanias of Durian. Naresh Goyal of Jet Airways. resulting in tremendous success. “Ethics like leadership. . Indian telecom mogul. Subhash Chandra (Zee Network). Sunil Mittal of Bharti Enterprises. Bajajs. Kajarias.” Some of the other prominent names that cannot be missed and have contributed to the business of India include Lakshmi Mittal of ArcelorMittal. Not only businessmen. Firodias of Kinetic. and delivering exactly what they promise their buyers. Motilal Oswal of Motilal Oswal Securities. abiding by the law. the Lodhas. Hindujas. respect for others and loyalty have helped Videocon sail through. the Jindals. the community has shed a considerable bit of its image of being traditional and orthodox and has subscribed to a lifestyle that is chic and modern. A few names that feature on the charter are Bharat Bhushan. but at the same time.ENTERTAINMENT While Bollywood isn’t particularly known for being communal or discriminating. Even if films religiously had Marwari characters playing the loyal munshis to the umpteen thakurs. Rajeev Khandelwal. says. Sachiin Joshi. the industry itself doesn’t boast of many Marwaris. what with only a handful of them making their presence felt over the years. and singer Roopkumar Rathod. Fashion forms an . actor and businessman. Anu Agarwal. People feel Marwaris are conservative. the community seems to have given the industry a miss. “Being a Marwari makes me feel royal. On being a Marwari. They are very open-minded.” FASHION Over the years. value their beliefs and follow their principles. But it is not so. late film director Jag Mundhra. Ram Gopal Varma’s protégé Nisha Kothari. yesteryear singer Hemlata. It brings a lot of cultural values and belief. Sachiin Joshi. the Barjatyas. Other Marwaris who have made a mark on the literary front include Himani Dalmia. however. especially demand and supply. Shraddha Murarka of Vizyon. Whether they view it as a passion or a reality is up to the individual in question. the well-known mother-son art collector duo. and art curator .” Other prominent Marwaris in the field of journalism include Ramnath Goenka and his son. a proclivity with all things numerical. are qualities ingrained in the Marwaris. Hyderabad-based Anand Kabra.” Nirati believes that an insatiable appetite for risk. Abhishek Poddar of India’s first photogallery. The fashion industry on the whole has seen a number of Marwari fashion designers like Surily Goel. they are creative. I’ve also noticed another side to this community: their love for luxury and art! They are connoisseurs and hold workmanship and exclusivity in high regard. home furnishing and furniture. He emphasises.” Raghavendra also adds that his brand Rathore Jodhpur itself is a reflection of the ethos of his community. ART The Marwaris have also had their fair share in the field of art. they are generous and they care about social change and want to make a difference in the lives of others. JOURNALISM As Nirati likes to put it. old-fashioned motifs and other elements from the community’s rich culture have been readapted in modern fashion statements. among others. “What really distinguishes the Marwaris is that for them. “An inherent characteristic of people from Rajasthan is a deep sense of connection with their roots. Payal Singhal. Neelima Dalmia Adhar of the bestseller Father Dearest and Ashwin Sanghi of The Krishna Key. Speaking of some of the distinct qualities of being a Marwari. despite such deep-seated sentiments. they are open to new ideas. culture and heritage.integral part of this chic life. Some of the prominent names in the field are Lekha and Anupam Poddar. Nirati chose journalism as her driving force. Divya Mohta and Anju Modi. artists and graphic designers who are Marwaris. Kolkata-based designers Ekta Jaipuria Kandhari. Ruchira Kandhari and Shantanu Goenka. “The genesis of every design idea born in the design studio draws the heritage of a bygone era.” says the designer with a vision who holds the fond memories of spending Holi and Diwali with his family closest to his heart. the Tasveer Art Gallery. business is inseparable from life. but also in textiles. Gulab Kothari (and his father Karpoor Chandra Kulish) of Rajasthan Patrika. Viveck Goenka of the Indian Express. I believe in culture and tradition. the Delhi-based Ravi Bajaj. Raghavendra says. Sangita Kathiwada. However. when it came to profession.” He also believes that many of the clothing traditions. “I’ve met filmmakers. Kamal Morarka of the Afternoon Despatch and Courier and the Jains of The Times of India group. “It is encouraging to see the new generation resurrecting old techniques not only in clothing. who wrote Life is Perfect. I also believe in the need to adapt with changing times. Shobhana Bhartia of the Hindustan Times. Somehow. Her editorship has made her realise that the Marwaris today are traditional but not stodgy. it is reflected in our work ethics and the relationship that we share with peers. Bimal Jalan—former Governor of the Reserve Bank of India. gatte ki sabzi. Speaking of the Marwaris’ contribution to art. Kishengarh and the Marwar schools.” POLITICS AND SPORTS Since their migration from their hometowns in Rajasthan to the various states across India. the Bundi-Kota kalam. the Marwaris are known to be a community that loves their traditional fill of mouth-watering delicacies. frescoes were initially introduced by the Shekhawat Rajputs in their forts and palaces. Bikaner. the Jaipur.Priyasri Patodia. one of the prominent faces of Anna Hazare’s Lokpal campaign and now a founder of the Aam Aadmi Party. the Marwaris have worked hard towards making India a stronger nation. is remarkable even in politics and top government positions. In fact. Professions apart. Their contribution. Bijoy Singh Nahar—former Deputy Chief Minister of West Bengal and Puranmal Lahoti. besides Lalit Modi. Ajay. the first member of the Rajya Sabha representing the business community. “From 16th century onwards. Some prominent faces in the political sphere include Arvind Kejriwal. therefore. papad ki sabzi and bajra roti kadi while speaking of traditional Marwari delicacies they savour and mention sweet delicacies such as . there flourished different schools of paintings like the Mewar School. The world of sports also boasts of chess champion Abhijeet Gupta and table tennis champion Niraj Bajaj. the former head of the Indian Premier Cricket League. kher sangari. She says. Anirudh and Sachiin in unison name the good old dalbaati choorma. Priyasri speaks of the popularity of miniature paintings that have continued to fascinate art lovers in India and across the world. JP Nagar. Mehendi (henna) is applied on the hands of the girls and their favourite cuisine is also cooked. “Girls are thoroughly pampered by the Marwaris. Jains. the land of ‘death’.” Marwaris in Bengaluru The earliest Marwaris settled in Bengaluru about 60 years ago.” Despite changing times. the Marwaris have held onto traditions while still progressing with the generation of today.mawa. Maheshwari Samaj. as they are called. The older generations are mostly engaged in family run businesses and are into trading and manufacturing. the Marwari communities are now settled all over the city in areas like Vijaynagar. We have a separate festival called the Sindhara to pamper them. Sharmas. ghewar and moong dal ka halwa. law and medicine. This difference in surnames is based only on location of origin and the deity they worship. The Marwaris learnt to live frugally and can’t be called stingy. those are all he has left—a sort of legacy if not in gold then in riches far greater. But. “A Marwari’s respect for his family and his forefathers encourages him to respect traditions. besan laddoos. Brahmin women or the misranis. who runs a family-owned textile business in . generously topped with desi ghee. she is gifted with jewellery and clothes.” says Vimal Saraogi. Agarwal Mahila Mandal. “They came from the land of the desert with economic hardships. Nirati insists. Basaveshwarnagar. come and sing to the girl while her mehendi dries. Kumara Park. My fondest memory of childhood is of the Sindhara festival celebrated at my naani’s (grandmother) in Ajmer. a businessman. who has been a Bengaluru resident for the past 17 years. has been organising various charitable events like donation drives. they may be traditional in manner and speech. Marwari Yuva Manch. Maheshwaris and Oswals. Sanjaynagar. Explains Ravi Singhania. The younger generation is taking up jobs in fields like IT. The harsh climate and the lack of opportunity drove the Marwari migration at the beginning of the 19th century and I think. eye and artificial limb camps for the underprivileged. “Marwaris came from Marwar. Coming mainly from Rajasthan and Haryana.000 Marwari residents. “The community. Jagriti Mahila Mandal and above 10.” Another notion that is synonymous with the community is that they are careful how they spend their money. Priyasri informs.” Bengaluru also has more than 100 Marwari associations like the Karnataka Marwari Samaj. And finally. The Marwari community is known not only for its business acumen. real estate. accustomed to limited resources. located in south-west Jodhpur today. Nirati says. Priyasri adds. for the past many years. but they certainly aren’t in terms of thought and perception. While Anirudh believes it is the quality to not spend a penny more than required that gives people such a notion. Basvangudi. but also for its humble and charitable nature. Yeshwantpur and Banasvadi. among others. HSR Layout. I think this makes them genetically sharp to acquire the best in the least. after all. and with good cause. ‘conservation’ became the key word for the community.” Echoing similar sentiments. “Marwari is an umbrella term which includes Agrawals. About the communities’ love for its daughters. “For the Marwaris. For example. one would not have imagined the impact they would have in shaping Tamil Nadu. Being a very traditional and custom-oriented community.Bengaluru and is also the Programme Director of the Karnataka Marwari Samaj. adopted by members of the Marwari community. a child’s mundan ceremony (when the baby’s hair is shorn off for the first time) will only be done at the family’s native place. Marwaris in Chennai When the first families moved out of the drought hit Marwar state in Rajasthan almost 180 years ago. provides free education to over 100 underprivileged students. Diwali sees families visiting each other’s homes. Besides these. some customs are deeply attached with the native place. While during Holi. My family came 90 years ago to Madhuranthakam.” says J Jayantilal Challani of Challani Jewellery Mart and President of the Chennai . A majority of the Marwaris are strict vegetarians. the members of associations gather at their respective associations to celebrate. Sawan Jhula Puja and gangor (celebrated only by newly married girls). The Manav Vidya Kendra. the women of the community celebrate Karva Chauth. their forefathers set up pawn broking businesses. “There are (Marwari) families living in small villages and towns all over. a Chartered Accountant living in Bengaluru for the past 11 years.” Holi and Diwali are two major festivals celebrated by the Marwaris. festivals and other religious occasions hold great importance among the community members. This is a custom which every Marwari follows. Says Manoj Poddar. where I grew up. the arrival of the Delhi-Calcutta railway in the 1860s facilitated their migration from Calcutta to Delhi. art. Hailing from Rajasthan. Rashmi Poddar (artist). Rated as the richest Indians in the world. starting with Agurchand Manmull.” Living in Chennai since her marriage a couple of decades ago. and even recently when a fire gutted parts of north Chennai. there are now urban Marwaris dotting even the northern parts of the city. The Indian Express Group was founded from Chennai by Ramnath Goenka. traders. “I love going to south Indian weddings.” Before parting. a legal journalist. During disasters like the tsunami. When in school. Dr Kiran Lohia (Dermatologist) and others. Shashi and Ravi Ruia of the Essar Group. With a presence already in the Sowcarpet area of the city. Some of Delhi’s famous Marwaris are Sameer and Vineet Jain (owners of Times of India). their close proximity to the capital gave way to a lot of Marwaris in Delhi decades ago. Shallu Jindal (Kuchipudi danseuse). Deepika Jindal (MD. Harshpati Singhania (MD. sports.” says Jayantilal Challani. culture. my Tamil pundit would scold other boys stating my example—a Marwari doing better in Tamil than them!” The Marwaris have also played a big role in the fields of cinema. financiers and businessmen has a major hold in Delhi. Naveen Jindal (MP from Kurukshetra. medical treatment. fashion. Sunil Mittal (Bharti Telecom). “We also sponsor free operations. The archetypal Marwari business class of brokers. JK Paper). Jindal Steel and Power Ltd and polo player). We receive a lot of goodwill from people because of this. media. scholarships. politics. “The people of Chennai really embrace us and this is the friendliest city I have lived in. One thing that sets our community apart is that many of us speak fluent Tamil and have absorbed Tamil customs. says. But. I don’t feel like an outsider here or that I am Marwari. Also. Abhishek Manu Singhvi (politician and senior lawyer). Divya Solanki. shipping. she mentions her love for spicy Chennai delicacies. “With our honest reputation and fair trade. etc. our people were the first to respond to rally aid. “The leaders of charity have been the Chordia family. As philanthropy is a . we have become well-respected and an integral part of Chennai. our focus is education and we sponsor poor students through books and clothes banks.Jewellers and Diamond Merchants Association. Many prominent business houses and institutions were promoted by famous Rajasthani residents of Chennai. especially for the Tamil food and the yummy sambar. art d’inox). education and banking sectors. The Marwari community is also known for the abundant charity it does. Chairman. writing and medicine. We enjoy south Indian food just as all my friends here wait for our sweets!” Marwaris in Delhi Delhi encompasses a lot of India’s prominent Marwaris who have excelled in the fields of business. whose origins are in Chennai. for having set up the AM Jain College 60 years ago. still nurse a penchant for idlis and dosas. “There are no boundaries for Marwari women too. They have not confined themselves to traditional. “The key ingredient of a Marwari is hard-work. It’s time consuming to cook Marwari dishes. Ganeriwals. the Marwaris have moved on to bigger arenas and with a keen business sense. the Agarwal family of the .” They have blended well in the Delhi culture and happily share their festivals and cuisine with the cosmopolitan culture of the city. They are very down-to-earth and grounded. Modi says. They do not leave anything incomplete. they are free to pursue it. The Pitties and Malanis also had titles bestowed on them by the Nizam of Hyderabad. Although perceived as conservative in their approach. Most of the Marwaris are mainly involved in trading and finance. Lahotis. but of late. Hailing from this hot region. Fashion designer Anju Modi agrees. According to Vinita Pittie. Religion is an essential part of Marwari life. be it art. the Suranas of the Surana Udyog. hence a lot of people don’t know how to make them. “They were mainly five to six families like the Pitties. “The Marwaris are progressive people and that is the reason they have been successful. the Marwaris are persistent and patient. the well-known Delhi Marwaris are considerably involved in charity and community service. is a piece of Marwari history that stands tall as one of the oldest public libraries in Delhi. Surekas of Hartex Rubber and Construction Activities. a well-known designer. who belongs to one of the first families that made Hyderabad their home. adding. “Their root lies in Shekhawati. She is a Kuchipudi danseuse and social activist.” Delhi’s old Marwari Library. “Marwari food is liked by the Delhiites as it’s different.” Jindal insists. an arid part of Rajasthan. old-economy businesses and are joining the new age ones.” The very notable families in Hyderabad are the Patodias of GTN Textiles. writing or entrepreneurship. “They are active in every field. I have seen my family and my husband Naveen Jindal working hard day and night and being passionate about what he does. Making a Mark in Hyderabad No city or town can do without a Marwari grocery shop. Being staunch vegetarians. Thaal Vaadi and the newly opened Shraman at The Ashok Hotel that cater to Marwari cuisine. Suruchi. Badruka and Malanis who decided to make Hyderabad their home.” she continues.prominent quality of the Marwaris. their population has risen to around 10 lakhs. have conquered that too. especially business.” says Shallu Jindal. We have been nurtured this way. If they are passionate about something. there are a number of Marwari restaurants like Rajdhani. They have actively contributed to the Indian society right from the freedom struggle and even after independence. built in 1915 in Chandni Chowk. All these qualities make them the best in every field. Now. the Delhi Marwaris are flexible and progressive. culture. The Marwaris came to Hyderabad around 200 years ago.” Modi says. Marwari festivals like teej and chhoti holi are also celebrated by the other communities in Delhi. Bikaner and Shekhawati desert tracts of Rajasthan. principalities that had arisen from the ruins of the Mughal Empire. there were Marwari bankers financing even the assorted independent. if not army provision suppliers and financiers for various Rajput princely regimes. Till around the 16th century. Birla and Lakshmi Mittal: Both their grandfathers worked for Tarachand Ghanshyamdas. their sinking roots into the business landscape covering virtually the whole of the country is a remarkable phenomenon. The latter role was crucial in expanding their footprints to other lands. one of the well-known businessmen. MK Agarwal of GATI and Transport Corporation of India and Prashant Lahoti. one of the first ‘great’ Marwari firms The Marwaris represent the only business community one would truly call pan-Indian. the Agarwals.Suryalata and Suryalakshmi Mills. just as . they often accompanied Rajput units attached to Mughal armies. which. opened up avenues for setting up shop all over the Gangetic plains and the Deccan. From the 18th century. yet cash-strapped. The Pittie family too is involved in various philanthropic activities and is involved in the maintenance of heritage temples. Oswals. the Jagat Seths became treasurers to the Nawab of Bengal. Thus. in turn. For a cluster of Bania/Jain merchant castes originally from the Marwar (Jodhpur). The Marwari business model-I HARISH DAMODARAN G.D. Maheshwaris and Khandelwals of this belt – loosely clubbed under the appellation of ‘Marwari’ – were confined to their homeland as local traders and money-lenders. who also runs an art gallery and has been honoured by a prestigious French order. As ration suppliers and paymasters. to move money and goods across the length and breadth of the subcontinent. also laid the ground for the birth of large multi-branch Marwari trading firms such as Tarachand . northern Bihar. This process gathered further steam with the coming of the railways. before trailing off to a trickle at Madras and Mysore. have the buyer draw a hundi of equivalent amount in his favour and present it to the latter’s agent or drawee at Kanpur. a veritable pan-Indian Marwari business community had emerged – a commercial resource group using thehundi. Darjeeling and Kalimpong. there were sideward forays into Jharkhand. Another large migration stream was to Central India (especially the princely states of Gwalior. and from there.700 nationwide produce mandis and 12 nodal money markets handling the bulk of discounting of these bills at the turn of the century. the seller could transfer the hundi through endorsement to a lender. Orissa. encashed at par by the lender. It was the lubricant that greased the wheels of commerce. the grain markets of Hapur. Khurja and Hathras in western Uttar Pradesh. who would make the payment in cash. as the community spread itself to Kolkata and beyond to Bangladesh. and the Ganeriwala and Pittie families ingratiated themselves with the Nizam of Hyderabad. and the river ports of Farrukhabad. The hundi made it possible for a grain dealer from Kanpur to sell in Kolkata without taking cash and risk being waylaid during transit. an indigenous bill of exchange. He could. Towards the middle of the 19th century. Patna and Bhagalpur along the Ganges. served both as a cashless remittance facility enabling longdistance inland trade and also a source of mobile credit.Alternatively. The first conglomerates The traditional hundi. Mirzapur. who would extend the loan at a discount to its value. Typically. By the early 19th century.Within this overall eastward direction. up the Brahmaputra valley into Assam and across the Bay of Bengal into Burma. in other words. by virtue of it being freely transferable through successive endorsements before being finally presented to the drawee. Some of it spilled over to the Deccan. The same hundiwas. then. and also Chhattisgarh).the firm of Gopaldas Manohardas bankrolled the Kingdom of Benares. Vidarbha and the Maratha hinterland. by connecting some 1. Bhopal and Indore. they were significantly present across Delhi. The hundi. they lent against the security of ijara or land revenue-farming rights assigned for a particular region. Nepal and the highlands of Jalpaiguri. Desert diaspora But the real impetus to Marwari outmigration came during British rule. alongside the modern-day railways and telegraph. instead. Likewise. Birla’s grandfather. but [where] in no single instance has jute ever been delivered”! That view. including through related entities. the Marwaris also pioneered trading in indigenous options (satta). since most purchases and sales got cancelled against each other before maturity date – weren’t taken kindly to by entrenched European interests. who could join as clerks. to also undermine the operations of the British agency houses themselves. opium and grain as well. In this. Rama Prasad Goenka’s grandfather’s great-grandfather. which they contrast to ‘legitimate’ business. Amritsar in Punjab. had offices at Kolkata and Mumbai. among others. brokers and partners.D. who started engaging the Marwaris as intermediaries to finance and forward raw jute for their mills or to redistribute cotton piece goods imported by them. so did the grandfather of the global steel czar. and only to satisfy “their craving for the gains of chance in a system of contracts purporting to evidence the purchase and sale of jute. there was Sevaram Ramrikhdas that employed.Ghanshyamdas – which. But increasing awareness of the power derived from control over the hinterland supply chain led the community. which extended to cotton. The Sevaram Ramrikhdas firm’s division resulted in independent offshoots at Kanpur. to buy or sell a . giving the buyers the right. but with no obligation. Shivnarayan worked with Tarachand Ghanshyamdas. they saw their supply-and-demand calculations and produce flows disrupted by the rampant speculation engendered by such trades. The functional utility of such extensive upcountry networks was soon recognised by British expatriate firms. the practical trading skills and financial ingenuity of its members. Farrukhabad and Kolkata: The Singhanias are descendents of the Kanpur line. the RPG Group patriarch. These firms were magnets for attracting fellow Rajasthani clansmen. Mirzapur. honed over generations. in a sense. echoes those of many who even today harbour a suspicious attitude towards futures transactions. Used only to spot buying. in due course. in 1870. one of their representatives claimed fatka to have been “invented” by Marwaris “deprived of the pleasures of rain gambling”. These contracts – rarely resulting in delivery of the underlying goods. the Malwa opium belt of Madhya Pradesh and elsewhere. managers. ‘Desi’ futures & options In 1905. Apart from the hundi and fatka. six Marwaris introduced fatka or futures trading in raw jute that registered meteoric growth at the baras (informal exchanges) of Kolkata’s Burrabazar market. proved most useful. G. Ramdutt. Lakshmi Niwas Mittal. No wonder. nephews. for that matter. in short. cousins or trusted accountants permitted. facilitating diffusion of entrepreneurship within the community. be put down to three components: Pan-India presence. which could be leveraged to raise capital or expand the scope and spread of business operations.certain commodity at a specified future date and price. share markets or. in-laws. complementing their ostensibly hardwired talents at sourcing/selling of produce and ability to draw on information or ground-level knowledge not normally accessible to others. These could be teji (call) or mandi (put). Snapdeal and Myntra happen to be all northern Bania/Jains. extending from the desert towns of Rajasthan to the Brahmaputra valley. Community resources and connections. with the premium paid by the buyer of the option known as nazrana. if not Marwaris). Over time. These traditional strengths have revealed themselves even in more recent times – be it in organised industry. The Marwari business model-II HARISH DAMODARAN . Flipkart. A firm could open as many branches as the number of brothers. each of these would develop into or further spawn independent firms. modern-format retail and ecommerce (the promoters of Big Bazaar. Evolving sophisticated trading and financing mechanisms. The success of Marwari enterprise can. key to the forging of long-distance networks of trade and finance. Lohanas and Bhatias. Khojas and Bohras — have historically had more geographically concentrated inland operations: Some of them had predominantly overseas mercantile or investment interests. That also included buying . seen with a wire recorder device to improve his English The second and final part of the article on Marwari enterprise and its present-day relevance. more so with the Great Depression. 2013: Having a business presence spanning much of the subcontinent is a feature that has distinguished the Marwaris from other prominent trading communities. The speculative profits earned from fatka and tejimandi transactions — that rose manifold at the numerous commodities exchanges formed in this period — they partly funnelled into industry. Gujarati Banias/Jains. in favour of those whose business activity was largely domesticfocused.Ramkrishna Dalmia. April 8. The ability to draw on extensive pan-Indian bazaar connections made a huge difference during the interwar years. Punjabi Khatris/Aroras or Muslim Memons. It tilted the balance against foreign trade. Nattukottai Chettiars. Sindhis. The latter — the Parsis. The Marwaris were the ones to make the most out of the disruption of normal trading channels during wartime. along with two insurance ventures (Bharat Insurance and Bharat Fire & General Insurance). starting with gambling on silver prices during World War-I. By 1948. Dalmia went to Kolkata to join his maternal uncle’s bullion business. followed by shares at the Calcutta Stock Exchange and trading in commodities. From speculation.800-acre complex — became part of a single entity. sulphuric acid. Dalmia benefited from learning the ropes under an uncle. power house and a rail feeder line connecting the 3. Charkhi Dadri (Haryana) and Trichy (Tamil Nadu). The companies he bought — with interests as diverse as flour-milling. But Dalmia did not stop there. sugar. Sahu Shanti Prasad Jain – under the ‘Dalmia-Sahu Jain’ group banner. arguably the greatest Marwari businessman before Independence. railways. chlorine. coal mines. Andrew Yule and Bennett Coleman. when the World War boom lifted sentiments. In 1943. well entrenched in Kolkata’s Marwari trading circles. provided a captive fund pool. he challenged the quasi-monopoly of ACC — a combine of 10 cement firms formed only the year before — by commissioning plants at Karachi and Dandot (both now in Pakistan). especially for the takeover binge that Dalmia indulged in over the next few years. asbestos. The second is the role of kinship and community ties.out the units of beleaguered European managing agencies. it also housed plants manufacturing cement. that may have well anticipated today’s much-touted Special Economic Zones. to whom they were previously brokers and financiers. apart from the Rohtas Industries facility. This. Rohtas Industries. board. The downside Ramkrishna Dalmia’s case is illustrative on three counts. he promoted Bharat Bank Ltd. Over time. he also had controlling stakes in Punjab National Bank. Even his initial foray into sugar was with a big land-owning relative in Bihar. the ambitious young man had launched his own operations. All the subsequent ventures involved his brother. The ensuing price war lasted till 1941. paper. electricity supply and newspapers — belonged mainly to British concerns like Govan Brothers. Jaidayal and son-in-law. In no time. jute and cotton textiles. civil aviation. central workshop. whose owners weren’t too bullish on business prospects in Independent India. . The first. In 1937. Dalmia’s next port of call was finance. caustic soda and bleaching powder. of course. Originally from Chirawa in Jhunjhunu district of Rajasthan’s Shekhawati region. Dalmia’s industrial debut was through a sugar mill in 1933 at a site in Bihar’s Rohtas district. a valuable resource pool not available to every aspiring tycoon. trading and manufacturing. These units — besides a foundry. Dalmia’s exploits Exemplifying this trajectory was Ramkrishna Dalmia. is the raw drive and venturous spirit of a first-generation entrepreneur it highlights. vanaspati. Even before that. if not surpass. with their associated strengths and weaknesses. among others — he had to suffer the ignominy of a two-year jail term in 1956. in most familyowned businesses. The above three facets — inherent risk-taking disposition. or even Indian. or booking fictitious losses on share transactions between group entities — only rose with time. carbon black. save Bennett Coleman. In the seventies — when most others. chose to tread an independent path. and overwhelmingbazaar orientation even after entry into the ‘modern’ industrial sphere — can be said to apply to Marwari enterprise broadly. The ‘speculative’ phase did not end with putting up factories. spun yarn. The first has to do with entrepreneurial zeal and ‘animal spirits’. Rather. in aiming for globalleadership in the industries where the group is active: Viscose and acrylic fibre. As details emerged of how deposit and premium monies from banks and insurance firms controlled by the group were used to fund acquisitions — of Bennett Coleman. his adroit speculative skills eventually got the better of him. enterprise in general. . were happy doing business domestically — he established viscose staple fibre. aluminium and cement. which.The third element was the extent to which Dalmia’s business operations remained grounded in the bazaar. ability to leverage community resources. The route ahead That links up with two major limitations of Marwari. The same possibly holds for the Birlas as well: Among its various factions today. including Rohtas Industries. for reasons still shrouded in mystery and intrigue. particularly Marwaris. The Bangurs. have since folded up. In Dalmia’s case. Aditya Vikram. the proclivity for playing the market — including diverting public issue proceeds from one company to finance the activities of others. tends to disappear along with the founding patriarchs. the vision of G. only the $ 40 billion Aditya Birla Group can measure up to. Kumar Mangalam. Modis. Singhanias. That calls for no less ambition and animal spirits.D. The second limitation flows from an inability to transcend the bazaar that provided the basis for capital accumulation for most Marwari firms (unlike for say. while the surviving ones. just like Satyam Computers’ Ramalinga Raju some five decades later. But innovativeness in trading and financing – where there’s probably not much JP Morgan. has gone one step further. cannot really be considered in the top league. an Infosys or Dr Reddy’s Laboratories). Shrirams and Dalmias represent this trend in varying degrees. Goldman Sachs or even Walmart can teach our Banias — is inadequate and certainly cannot substitute for knowledge of the factory floor and production processes. Birla. Many of the erstwhile group’s concerns. carbon black and palm oil refining units all across South-East Asia. even if more evolved and organised than innately present in first-generation entrepreneurs. the Dalmia-Sahu Jain empire was partitioned among his brother’s and son-in-law’s families. And that happened because his grandson. The latter’s son. But when I joined. These could be ‘managed’ even from a distance. where the success of Lakshmi Mittal. without going too much into the technical details of manufacture. If substantial deviations occurred. What an IIM graduate learned at the Marwari school of business After graduating from business school and having learned about Porter’s Model and the tricks and trades of running a business. My first and most valuable lesson in a Marwari family business was that one has to be flexible with the work profile and ready to get one’s hands dirty. While their in-born talents in buying and selling or having connections from relatives already in business will always stand the Marwaris in good stead. to straddle diverse industries and operate suboptimal capacity plants using borrowed. outdated technologies. I put together business models and algorithms for processes to be rolled out in my company (we manufacture aluminum consumer goods). then.Weakness on the latter front may not have mattered in a closed domestic economy. the more suffocated I began to feel because I had no clue about what to do and from where to start. The purta system of accounting devised by the Marwaris was perfectly suited for this purpose. Under it. the promoters sitting at their gaddis in Kolkata or Mumbai compared the unit’s actual daily earnings to the normative purta cash flows. But the more I saw hope in his eyes. Here are some of the other important lessons I learned on the job: . The above detached approach has limited relevance in the post-liberalisation era. In multinational companies they call this an induction and training period. It was both theoretically and practically feasible. one has to wear several hats. where you learn about your job profile and what you are expected to deliver. in this case as a second generation entrepreneur. that by itself is not enough in today’s world where other things are increasingly mattering more. Anything I planned and implemented on the shopfloor was scrapped the next day. You can go from CEO to electrician in a single day. Kumar Mangalam Birla or Anil Agarwal owes largely to their focusing on particular industries and building global-scale state-of-the-art plants. I was all excited to join my family business and implement my leanings in real time. a trouble-shooter was sent to check out the ground situation and report back. In extreme cases — rare in a protected economic environment — it led to a shake-up of the plant team or closure of the business. This was my initiation into the Marwari school of business. But as an entrepreneur. where the trader-industrialist’s choice of industry was dictated more by the profits it offered and the availability of licenses at that point of time. everything turned upside down! The employees looked at me as if I was a dumb alien creature! The only person who looked at me with high hopes was my father. Based on it and the expected profits corresponding to the sale price. every group firm provided informed estimates of how much it cost to manufacture a given quantity of their product. Gradually. Uttar Pradesh. an incorporated company has a life span of 30 years. Speaking of employees. Understand their personal problems and remember their names. It makes them feel special. Maheshwari also started an ecommerce venture called Craftila. they have one thing in common — no debt or balanced debt. in a Marwari business you have to treat your employees as a part of the family. It is important for an entrepreneur to understand that unbalanced and over optimistic debt can kill your dreams overnight. in Aligarh. Hit hard on negotiating prices with your suppliers no matter how small the amount. As entrepreneurs we often tend to restrict our employees to certain jobs. “Debt is bad! it’s an evil. But do remember to draw a line and respect that.• • You and I may need software to create a balance sheet but a Marwari businessman can do it on 3×4 inch sheet of paper. Connect with Maheshwari at LinkedIn. things began to change. . we don’t give much importance to small purchases but it helps you cut your overheads. Prior to joining the family business. Every rupee saved is a rupee earned. This inculcates financial discipline in your employees too. He is a computer science engineer from Rajasthan Technical University and an alumnus of IIM Bangalore. • • • • So what’s better? Business school or Marwari business school? Studying at IIM taught me how to become more presentable and analytical. Whether small or big. debt is required. But at the Marwari school of family businesses. They had problems with some processes and said that they were afraid to bring those to the notice to the owner of the business — my father. Personally. I don’t think that is good for the company. Employees should be encouraged to work as entrepreneurs and not as robots. Author Bio: Siddharth Maheshwari is a second generation entrepreneur and is currently involved with his family business.” In general. Simply put. After all. I’m not saying that debt is bad. As entrepreneurs. I used the feedback to address as many of those problems as possible. But family businesses in India have been running for more than 60 years. To grow at a particular level. You really have to earn the respect of the employees. as I started spending my days on the shopfloor and interacting with everyone. NM Metalworks. none of my employees used to respect me and that’s fair because I had not done anything for them. before talking about making a billion dollars at least make a million. I was told a hundred times. an online store for handcrafted gifts. they are your employees. When I joined the business. Trust me! The day I started work in the family business. It has also helped tremendously in developing a perspective about business operations and management practices. I learned to connect with the grassroots and developed a practical approach to sustaining business which I often find lacking in today’s young entrepreneurs. But grow slow and calculate a sustainable pace for you and your company. I always carried a box of these. one of the world’s richest men and a Marwari. seldom given business roles Overtly religious Religion is an essential part of Marwari life Joint living Most Marwaris still stay in joint families—often three or four generations together Vegetarians Marwaris are staunch vegetarians. and ordered only hot water.” . It was a couple of tea bags. and put it in my palm. She felt a tap on her shoulder. even new-age Marwari kids stick to this *** Bachi Karkaria’s Behind The Times serves up a delightful story on the Times Of India’s Samir Jain that highlights a key trait of the Marwari—thrift. with son Aditya at their London home MARWARIS The Watertight Men Iron-clad ways have rooted Marwaris in well-ploughed enterprises ARINDAM MUKHERJEE Points To A Marwari • • • • • • Will sell anything Ready to get into any business. turned around and saw VC (Samir Jain): ‘He put his hand into his suit pocket. however small Frugal Marwaris’ fabled frugality has often been a subject of jokes Conservative Marwaris are sticklers for tradition. instructed the receptionist to give her a wake-up call. while taking her room key. Karkaria writes: “Once Indira Deish (of Times Response).Top of the heap Lakshmi Mittal. I learnt the value of thrift’. and send a pot of bed tea with it. After that. The scene: the hotel lobby at an international advertising conference. their women marry early. pulled out something. Yet. They still follow the old system of close financial control over their firms and take daily stock of money matters. they are phenomenally successful and have been so for generations. The only pastime is charity and community service. spawning many workaholics—you get up in the morning and start working and you work till you sleep. Owner. financiers and businessmen. Archana Garodia Gupta. an arid part of Rajasthan. MD.M. Touchstone Jewellery Harsh Pati Singhania. There’s also a social conservatism that preserves these qualities and passes them along. Marwaris have confined themselves to traditional brick-and-mortar or old-economy businesses like manufacturing and shied away from new age and internet businesses. satta and supplying provisions for the army. Birla. Their roots lie in Shekhawati. Outside the state. a culture of pragmatism. traders. Chairman. allows them to excel is high internal trust.” says business author Aakar Patel. Aditya Birla Group . RPG Enterprises K. Marwaris continue to be conservative in their approach. in business. Later. they transformed into traders. Despite their successes. Business historians say this is because their unique set of talents are a perfect fit for old-style commerce. writing and re-writing Indian business history. when many Marwaris settled there. they got into money-lending. it is difficult for most Marwaris to work for others. JK Paper Psychologically. “What makes them special. an understanding of capital and interest. and in the 1920s and 1930s came into manufacturing at Calcutta—the capital of British India and one of the fastest growing cities anywhere in the 19th century. while software businesses do not necessarily need the typical skills they have been honing through generations. conservative. They have been called traditional. clannish and parsimonious. Chairman. where it matters. Harsh Goenka. They have a ferocious work ethic. India’s archetypal business class of brokers.That’s the Marwari for you. “They live in an atmosphere where there is business all around. In modern times. Entrepreneur Sachin Taparia. is because of the change in the nature of modern business. Despite having typical Marwari roots. the tradition of high education did not exist in Marwari families. But times are obviously changing. Former IIM Ahmedabad professor and business historian Dwijendra Tripathi says. older Marwari businesses have not faded out. Archana Garodia Gupta. “Till recently. is a modern Marwari. as young blood ensures continuity of business tradition and conservatism—with a success that’s enshrined in Forbes’s ‘world’s richest people’ lists. wahan jaaye Marwari”.” says Harsh Pati Singhania. is often “considered a hobby”. an ethnic jewellery manufacturing company. she never thought of working in a company and didn’t bother to apply to one. MD. Education.” she says. It’s not for nothing that Marwaris still take pride and believe in their own old adage: “Jahan na jaye gaari. At the same time. in contrast. Marwari progeny were exposed to this influence from early on. Like a true Marwari. but in an area few Marwaris would dare to tread. few new businesses are emerging from Marwari families. business experts and historians say. and one of the first in her community to get a professional postgraduate degree. While scions of modern Marwari families are increasingly going overseas for studies. “I was clear that I wanted to do an MBA and thought of going abroad. business can’t. Sachin’s ecommerce intermediary business will be launched in the next few months. could be considered a rebel.” says Patel. “The answer lies in the nature of capital formation in a world dominated by the multinational corporation. Sachin Taparia. which come with a fair sprinkling of Marwari names. This brought about a commercial thought process and influenced youngsters. But what has ever stopped the formidable Marwaris venturing into uncharted territories if it means good business? We have seen the successes of Marwari-led Patni computers in IT and Polaris in software.Typically. Archana graduated from IIM Ahmedabad and even qualified for IIT. . he is launching his own business. All family discussions were related to business. he not only studied engineering but also went to the US for further education and worked as a management consultant and in an aviation components business there before returning. The new Harvard/Stanford-educated generation is mixing professional training with family business wisdom and is willing to get into new areas. as a Marwari said.” Singhania remembers his college days when he’d go to a morning college that got over around 10:30 am and then would have to go to the family business “office”. owner of Touchstone Jewellery. That. JK Paper. Marwaris lived in joint families and grew up in a business environment. So they preferred to push youngsters into family business. the community remains conservative. The thinking was education can wait. One needs vast sums to compete and these are available only to a few. for she was the rare Marwari woman who went for higher education. She was also the first girl in her family to stay in a hostel. But despite her IIM tag. while traditional Marwari businesses continue to thrive. laying bare the broader historical context could throw some light. . now see their role evolving RAMAN MAHADEVAN Can we discuss Indian entrepreneurship exclusively in terms of caste and community? Can it be claimed that Indian business has broken loose of its traditional social moorings and is much more inclusive? Are caste and community affiliations still of some consequence. despite the transformed economic context? And.Everyone Is A Vaishya India’s business communities. ever in the forefront. can we be dismissive of the weight of history in shaping the social trajectory of entrepreneurial development in contemporary India? These are key concerns we face in trying to make sense of this complex conundrum of business communities. While there are no short answers. Kutchi Bhatias and the Nattukottai Chettiars. the Gujarati Banias/ Jains. the Marwaris. and a natural propensity for risk-bearing swung things in favour of the merchants from these traditional communities. India was required to absorb the manufactured goods of Britain as well as meet the ever-growing demand for primary products from British and European industry. despite the overbearing presence of foreign capital. is illustrative of this trend. It enabled them to move into industry with great alacrity when opportunities arose. access to market intelligence on investment opportunities. the Multanis or Shikarpuris of Sindh. among others—as well as the distribution of the imported manufactured goods from the ports to the hinterland—was almost exclusively in the hands of merchants from distinct business communities. and the brash entry of Marwari capital into a range of consumer industries later. It was a product of colonial commercialisation during the 19th century. As a colonial economy. The flow of some Parsi and Gujarati Bania capital into textiles. The development of commodity markets provided the necessary impetus for the Indian merchant class to grow and flourish. In contrast. Their presence in the ‘bazaar’ economy was pronounced and critical in lubricating the wheels of commerce. These communities stood out by virtue of the sheer scale of their commercial and financial operations. The ability to mobilise capital with relative ease in a situation of underdeveloped capital markets. extending over large tracts within and outside the country. Calcutta. These communities/ castes included the Parsis. Old-timers Traditional Marwari traders in Sadasukh Katra in Burra Bazaar. (Photograph by Sandipan Chatterjee) The financing of the export trade in primary products from the hinterland to the ports in principal commodities such as opium. is exceptional and has few parallels in the rest of the Third World. communities like the Chettiars and the Shikarpuris of Sindh were more conservative. oil seeds. They didn’t find the returns on investment in industry sufficiently alluring and chose to remain largely bankers . The intra-caste credit and trade networks which were developed by them greatly facilitated the process of wealth generation within the community. raw cotton and jute. at least as far as the two major nodes of trade— Bombay and Calcutta—were concerned.The rise of an indigenous entrepreneurial class in pre-independence India. Even within these business the noted economist and keen industry watcher. Gadgil. So conspicuous was their control that it even provoked D. However.R. The presence of merchant capitalists was not as pronounced as in the north. Business communities. It is only now. based on his transition from observations of the more visible nodal centres of commerce and industry. were critical in facilitating wealth generation by the family firms in the initial phase of their growth. South India started its journey towards industrialisation later than western/eastern India and remained a poor cousin well till the 1970s. Gadgil’s analysis. Outside the Bombay-Ahmedabad-Calcutta axis.and traders. that there is a growing recognition of interregional variations in sources of entrepreneurship. The nascent trends of this were discernable as far back as the 1920s. after some of them shifted to Pakistan following Partition. cultural practices or even business organisations. there were no strict entry barriers like in north India. the Chettiars—the traditional business community of Tamil Nadu—ended up creating an economic environment in south India (especially in the Tamil region) that allowed other players from non-ethnic and non-commercial castes to venture into commercial enterprise. Ironically. An unfortunate fallout was the exclusion of alternate social routes of entrepreneurship outside the business community frame. as an organisational structure. The same applies to the Khojas and Memons. Furthermore. in a given historical context. entrepreneurs from across a few traditional business communities were in firm control of the then modern Indian corporate sector. . it was only a few who could effect the transition from trade to industry. only a uniquely Indian form of entrepreneurship could be best understood only few could effect the through the prism of business community. The rise of interest groups in the form of chambers of commerce and trade associations is a manifestation of this trend. the social basis of private investment was more broad-based. the entrepreneurial scenario was distinctly different. But even among them. the two Muslim business communities from the Gujarat region. entrepreneurship. Yet they seemed to share one common trait: a keen market sensibility. In short. trader to had a pervasive influence on subsequent writings on Indian industrialist. these communities were not really similar in their social mores. By choosing to move to greener pastures in the south and Southeast Asia during the late 19th and early 20th centuries as purveyors of credit. following the remarkable growth story of the south. By 1947. they had a free run and ended up controlling most of their major industries well till the 1970s. community structures became less relevant. But with the growing economic distance between family firms over time. to suggest in 1950 that the communities. Science by traditional and technology-driven education and government policy provided a fillip to business families. organised finance and industry. the new groups who were investing in emerging industries. upper echelons of artisanal castes (Kaikollars or Senguntha Mudaliars. Syrian Christians. in myriad new forms it continues to play an important role in shaping the new entrepreneurial initiatives. Nehruvian period With the expansion of the market and incomes. India Inc big guns at a global investors meet. A broadening of the social base of entrepreneurship has been evident from the late 1980s. Thiyyas) channelised investment into trade. be it electronics. Birla. pharma or biotech. communications. Gounders. Reddys. Rajus. investment in the right through the ’70s. The recent. Though it may not have as much meaning as in the past. IT.First families Mittal. Tamil Brahmins and Goud Saraswats). Similarly. exceptional story of the Tiruppur garment cluster and of the ‘Gounder’ enterprise is a good example of the effectiveness of caste as a means for consolidation and . the number of claimants were mostly seized seeking licences for setting up industries increased exponentially. and gaining momentum after independence. (Photograph by AFP. Devangas) and other occupational castes from the socially marginal sections of south Indian society (Nadars. The diversified social base has not necessarily resulted in a weakening of caste and community influences. Premji. By virtue of their sheer size and by using the tough licensing for private system to their advantage. though a good number from traditional merchant families have also entered the field. This is particularly true at the lower and middle levels of enterprise. commencing roughly from the 1920s. The new opportunities for private investment in the Nehruvian period were mostly seized by business houses from the traditional business New opportunities communities. The 1980s economic reforms were a game-changer. sections of prosperous agriculturists/landowners (Kammas. they created barriers for the entry of new capital. Ezhavas. Mallya. From Outlook 01 October 2012) Significantly. Many of them were first-generation entrepreneurs. there was a movement of Patidar capital into industry and other commercial enterprises in Gujarat and of the Khatris in Punjab. The ethical dimension of trust. but in ways very different from the past. The success of certain castes in business in the past has become a beacon for others to use the same route. Maharashtra and Punjab. can be reached at ramanmahadevan AT gmail. chairman of the Murugappa Group CHETTIARS Chettiar Band.com) Pushing on A. critically integral to any enterprise. The entry of new entrepreneurs from the Marwari and Bania communities (but operating in a globally competitive market) suggests that the caste dimension operates in far more subtle ways than earlier. The benefit of being part of a traditional business community is the immense advantage in terms of networks and information flows and. drawn largely from UP. and the promotion of community-based Dalit chambers of commerce reinforces the continuing importance of caste in a certain historical context. (The author. as cases in Andhra and Tamil Nadu demonstrate so starkly. The import of the reassertion of caste in the wider social and political sphere was not lost on business. While caste and community are no longer central to the story involving large corporate houses.weathering competition. of the unquantifiable asset of an inherent business sensibility. The case of the diamond cutting and polishing industry of Surat and of the Palanpuri Jains is broadly illustrative of the same trend. The recent rise of a nascent entrepreneurial class from the Dalit community. above all. also serves to strengthen caste structures in certain situations. with each sphere reaping not inconsequential gains from this relationship. they remain critical to enterprises at the regional level. Business and politics are often intertwined and mediated through caste affiliation. AVM To FM . Vellayan. a Chennai-based economic historian. Tradition holds strong. They owned vast tracts of land in Burma and other countries. They rode risk to Burma. recounts how his father Vellaippan Chettiar. teak.000—this was in the 1980s—for enrolling in an MBA course. above all. got himself an MBA. windowed with stained glass. Dr M. Chidambaram . and. Names and initials repeat themselves: Ashwin Chidambaram Muthiah. “Why do you need to enrol in a course to learn business administration?” Nagappan. was: why a business course for you when business courses through you? The decades before 1950 were when the Chettiars—also known as the Nagarathars or Nattukottai Chettiars—were at their flourishing peak. Land all-important: Traumatised by their forefathers’ loss of huge land holdings abroad. director of the Madras Stock Exchange. picks itself up slowly but surely PUSHPA IYENGAR Quiet. Pragmatic • • • • • Secrecy: They say Freemasons are more open than Chettiars. ornamented with carved-wood roof trimmings. Chennai. the community has contributed by bringing quiet elegance to doing business. Meiyyappan. colonnaded with pillars of teak. What his father had meant. Nagappan. who has written a book on the Chettiars. collapsing with laughter. a trader. have a quiet elegance. timber and gemstone trades. MD. Founder. girls are still named after their grandmothers and boys after their grandfathers. heads the global operations of a business founded by his grandfather. once in decline. in all seriousness. nevertheless. Paramount A. many are taking up salaried jobs Traditional: Are educated. Ceylon. they now own lots of land and plantations in India Women out: Chettiar women rarely join family businesses but focus on the families’ cultural and philanthropic initiatives *** V.A. Every Chettiar wedding is held in the family house and is registered at a village temple. reacted when he asked him for Rs 25. highlighting their secretiveness Practical: Since the decline of Chettiars in business. Malaya and other South Asian and African countries to return rich from investments in plantations and estates. M. Thiagarajan. “A course?” his father had said. AVM Besides Chettinadu architecture and cuisine. Families meet in their huge village mansions for family functions. Marble from Italy and foreign objets d’art were common. banking and finance. the ivory. keep a low profile. for instance.A money-lending community.” says Prof Raman Mahadevan of the Institute of Development Alternatives. “Much of their capital was parlayed outside the country.V. In many households. Prosperous Chettiar families turned their 70-odd villages near Karaikudi into opulent clusters of mansions. ” says Prof Raman. Chidambaram has emerged from the community.. still remains a family enterprise. AVM Productions. Ooty. films. plantations. Coorg and Chikmagalur are owned by Chettiars. His daughters are called Devaki and Alagu—after his and his wife’s mothers. Independent India’s first finance minister. abrasives. the group has 29 businesses—finance.except in small and medium business ventures. the community yielded space to the Gounders. fertilisers. Madras Craft Foundation M. These days. There are Chettiar real estate businesses.K. R. some had to foot it to Bengal before getting home.C. This may explain why the community’s influence is largely confined to the Sivagangai district. bicycles. But it’s a small community—about 1. Shanmukham Chetty. it’s not unusual for Chettiar family businesses to be driven by theory and practices learnt at the best B-schools. Founder. Deborah Thiagarajan. Many tea and coffee estates in Kerala. Families that tarried in modernising have not fared as well. Muthiah. engineering goods—most of them acquired rather than inherited. one of the oldest film production houses. it has been a decline of sorts. Now. Subbiah who first brought in professionals. It was former chairman M. “They can’t count on votes from the SC/STs because of grudges from a time the community ruled the roost. Young Chettiars now hone their business skills at B-schools rather than learn at their father’s work table. Although a political giant like Union finance minister P. started by A. Chettiars hardly have a high profile in politics. his first business venture. A. was from the community. Naidus.” says a community watcher. “Chettiars have almost no political heft. By and large. Meiyyappan. Nagappan chose to do BCom but took the Rs 2 lakh to start a cement agency.and inherited by his father A. chairman of the Murugappa Group and a fourth-generation Murugappa Chettiar.25 lakh families—and Dravida politics has been the dominant force in Tamil Nadu. The years in which the British and other Europeans left the colonies saw Chettiars returning to India from 58 countries. and the community has a lot of holdings in the upscale Kotturpuram area of Chennai. who are a force in the IT sector. heads a company run by family members and professionals..V. Nagappan. Nadars and even Brahmins. Vellayan.M.V. Madras Stock Exchange . Some families returned with nothing but the clothes on their backs. Many businesses collapsed or were lost to new laws. pharmaceuticals. “Since then. But Nagappan recalls how his business instinct sprang up on an opportunity when he was still a teenager without an MBA: his father offered to pay Rs 2 lakh for an MBBS seat in Manipal.” V. they have supported the Congress. Rajya Sabha MP But Chettiars are still an influential presence in business—textiles.A. Ramaswamy. Indian Bank and Bank of Madura were started by Chettiars. Says Vellayan. Busybees Jagjit Singh Kapoor of Doraha (Ludhiana)-based Kashmir Apiaries. “We can call ourselves a community of MNCs. is the trademark of this community CHANDER SUTA DOGRA . not aggression. There’s an apocryphal story about M. Not War Industry. when they marry into another family. “The story of the Chettiars is the story of how a business community completely lost the plot. in the middle of which was a four-bedroom bungalow for himself. its metier. will do better to be part of the husband’s family than take pride in the family they came from. But when banks were nationalised. our women are not working in the Murugappa Group—for a good reason: we believe girls. Muthiah. It was this that gave them the expertise to move into banking and finance—the Indian Overseas Bank. Being tradition-bound. he had to give up the bungalow—much in the way the community has had to gradually withdraw from banking. which the community is known well for. He employed a British architect to design the staff quarters. was founded in 1943 by Raja Sir Annamalai Chettiar. referring to the travels undertaken by their ancestors to set up money-lending businesses. the community hasn’t been very encouraging of women working or tending business. whose grandfather founded the Indian Overseas Bank.C. bringing in the money for the upkeep of the edifices and bringing worldwide fame to Chettiar cuisine and culture.” But Chettiar women are prominent in cultural and philanthropic activities. “At the moment. There are many educational institutions run by the community and the Tamil Isai Sangham.” But the mansions in Devakottai and Kanadukathan near Karaikudi are testimony to how some are moving with the times and embracing new businesses—many of the sprawling houses are now being run as heritage hotels.” says Nagappan. with his wife and daughte PUNJABI KHATRIS Make Money.A veteran journalist says. to promote ancient Tamil music. made them the formidable component they are today of the India growth story. and bathing at railway station waiting rooms. “he began inviting other fleeing Punjabis to Doraha. I did a course in beekeeping. which grew around the hundreds of sports goods craftsmen and traders fleeing Sialkot in Pakistan in 1947. Arora.When Neil Armstrong reached the moon. His conversation with them went something like this: Armstrong: “Who are you and what are you doing up on the moon?” Aliens: “We are Sikhs. I also tried my hand at several small ventures. The industrial hubs of Ludhiana. every decade has spawned absolutely new success stories. Nine out of ten businesses run by the Punjabis today are by the Khatri Punjabis (found both among Sikhs and Hindus because of their common ancestry) who really landed on the business map of India after Partition. he saw some friendly-looking people there. their enterprising nature and legendary capacity of hard work. but most failed. Pahwa and so on—many of whom trace their ancestry to the 10 Sikh gurus. “When my father came here. and Jagjit is proud of being able to adhere to stringent international standards. started by Jagjit Singh Kapoor. Bhalla. from small food joints to massive manufacturing industries. non-confrontationist businessmen hailing from clans like Bedi. Mahindra & Mahindra Most of them still speak the sweet. and soon all of us were into small businesses. After graduating in 1971. Ahluwalia. Arriving as penniless migrants from what was then called West Punjab.” . running a variety of businesses. he says. west Pakistani dialect of Punjabi that differentiates them from their loud and somewhat brash Jat Sikh brethren. fuelled by adversity. Displaying the quintessential Khatri trait for hard work and risk-taking. selling a variety of honey products to 48 countries. In the early ’80s. son of an impoverished school teacher from Mirpur in Pakistan-occupied Kashmir. Kapurs of Atlas cycles and Munjals of Hero Honda pioneered the bicycle industry in Ludhiana. of course. just as the Sondhis.000-crore Jalandhar sports goods industry. “I used to travel third-class to find buyers for my honey and saved on hotel bills by sleeping on night trains. found today in almost all parts of the world. Chadhas and Wassans established the Rs 2. Akshay Bector. Cremica Group Anand Mahindra.” Jagjit tells Outlook. The Pahwas of Avon cycles. Assi te Partition de baad hi aithe aa gaye (We came here after the Partition)!” This is one of the many jokes about the ubiquitous Sikhs. Like the Rs 300-crore Doraha (near Ludhiana)-based Kashmir Apiaries. Yamunanagar and Delhi. began selling boxes for beehives and soon began buying honey from people who had bee colonies. with strange headgear. The Khatri Sikhs are the sweet-talking. Jalandhar. Though the post-Partition years saw several Khatri families growing from small-time traders to big business interests. grew on the back of Khatri enterprise.” Kashmir Apiaries is today the largest Indian exporter of honey. So. Hero Honda Unlike the ever-cautious Jains and Banias of north India. “It didn’t make much money initially. though. but my father who was a leading motion picture distributor of north India said we should not leave a town which had given us so many good decades. who established Radisson hotel in Jalandhar some eight years ago. “and the Punjab government made it into a resthouse to enable us to get by. Bryair Asia Pawan Munjal.” Onkar Pahwa. in 1985. an instinct honed possibly by centuries of survival in the invader-prone northwest. and the family has recently added a four-star property.” he recalls. in 1953.” says his son Manmohan. started Aroma hotel. taking risks comes naturally to the Khatris.Deepak Pahwa. when militancy was at its peak. when nascent Chandigarh was just a cluster of a few houses and government offices. the city’s first commercial property. Wassan Exports Risk-taking comes naturally to Punjabi Khatris.” Over the years. originally from Rawalpindi in Pakistan. “when businessmen were moving out of Punjab. But the 57-year-old had started his hugely successful hand tools manufacturing business also in adverse conditions. besides interests in the hospitality business in the US and video distribution. “It was a time. Avon Cycles Satish Wassan. Darshan Singh. at a time when opening a five-star property in the city was considered foolhardy. Aroma’s become a Chandigarh landmark. In the same mould is Gautam Kapur. a trait possibly honed by centuries of survival in invader-prone . with an annual growth of almost 30 per cent. His grandfather was a renowned eye surgeon of Punjab. mainly as commission agents in the mandi town of Ludhiana. when McDonald’s was entering India.Among the Punjabi Khatri enterprises which have ‘arrived’ in recent years is the Rs 700-crore Cremica group of companies started by Ludhiana housewife Rajni Bector in 1989. condiments and sauces in north India. northwest. But Akshay attributes much of their present success to the opening up of the Indian economy. hailing from a few villages around Ludhiana. though. is a first-time entrepreneur. there is some ambiguity about their place in the varna system. many Khatris from service backgrounds have given in to their merchant genes and entered business. is probably a distortion of the subcaste Bakhtiars. The family has been in business since 1880. many found their way into the army. as her son Akshay informs us. Though the Khatris believe they are warrior Kshatriyas who took to trading. for instance. banking and judiciary. From making ice-cream and bakery products for friends. Deepak Pahwa of Bryair Asia. the Bectors beat several established players like Britannia and Bakeman’s to get a contract to exclusively supply buns to the American chain’s restaurants in India. the group’s become a household name in confectionery. as their enterprise coincided with the increase in consumption and their products found acceptability in newer geographical areas and rural markets. Bector. . Deepak himself began with a small air-conditioning unit some three decades ago to grow into a Rs 500-crore engineering giant with a presence in 40 countries. In 1996. as they have for centuries been in mercantile occupations. Their children received solid education. In recent decades. his father was in insurance while numerous uncles and cousins of his were in the army. not given to taking strong stands. “who will never be found protesting and sitting on dharnas. and get a high from making money.” he observes. great networkers. sees Khatris as “the politest people I know.Sharp hotelier Gautam Kapur in Jalandhar “Yes. we are a docile community. though not necessarily very honest in business”. is more direct about typical Khatri traits. though we may talk a lot. first established in 1948. but do not see the hard work behind it.” Avinash Chopra of the Rs 500-crore Hind Samachar group of newspapers.” Kishie Singh. . “We are basically ‘darpok’. Other communities are jealous of our success and influence. a Jat Sikh journalist and keen observer of Punjabi culture. SYRIAN CHRISTIANS The Latters Of Thoma The Nasrani journey to prosperity has a touch of the Damascene about it MINU ITTYIPE Spot A Syrian Christian • • • • • Spreading wings: Can be found in every field—hospitality. oddly. though times are changing. Defining Khatri-Ness • • • • • • Unfailing politeness: Avoid disputes. it’s often said. due to which they got marginalised in the agrarian-based politics of north India after Partition. plantations. the community has always survived on trade and business. “There is a feeling. Trustworthy and hardworking: He fears a moral authority above. Traditionally landless. but we have still made it. Stay out of trouble: Will never fight for a cause. Tall claims: Will claim superiority. She takes pride in her cooking and throws fabulous parties. We Khatris have never had a helping hand from the polity because of our minimal presence there. if there is one. but freely acknowledge he is not a typical politician who can be counted on for “favours”. jewellery. The Khatri Sikhs. “Politics put me off. No taboos: No enterprise is hands-off. Their business philosophy is best illustrated by the phrase. sort it out cordially with minimum fuss Compromise formula: Never. construction. *** .” Vijay Chopra. media. Confident: With a partly non-Indian appellation. are not hobbled by either. the Khatris. Even take on trades meant for certain castes.” Unlike other media barons. Show wealth: Love big cars and grand mansions—make sure everybody and their neighbours know when they ‘arrive’. have not made it big in politics. Smart: Stylish and well turned out. clench your teeth and do it. conservative and god-fearing. but don’t expect him to trust you. It means minding one’s business. Extremely religious. ever. they have a robust sense of national identity. Hind Samachar Group Everyone is hugely proud of Prime Minister Manmohan Singh. if there is money to be made there. The Punjabi Jat Sikh. his father Vijay Chopra has refused offers from mainstream parties to join politics. on the other hand. their best known political face. opting instead to instigate others to do the same. Will ‘know’ every high connection. ‘sanoo ke lena ji (how does it concern me)’. is known for agriculture and litigation (from never-ending disputes over land). rub a government official the wrong way. Even those who do join—like Gautam Kapur who flirted with the Amarinder Singh camp in the run-up to the Punjab assembly elections this year—beat a hasty retreat because. as he says. Love family: Prefer to operate within joint families. You can trust him with your soul. Even if one has to do something unethical.Despite their financial clout and proximity to New Delhi. “that it is better to fund political parties and use the influence to prosper rather than join them.” says Avinash. “The original Syrian Christians. And therefrom begins one of the most fantastic backstories ever devised by immigrants anywhere. Syrian Christians were even accorded caste-restricted privileges like the use of the umbrella. Joyalukkas India Ltd.” The secular kings welcomed foreign philosophies and allowed settlers to build places of worship. The story goes that St Thomas converted a few Brahmins and established seven churches along the Malabar Coast. MD & CEO. with a few Syrian families. Kalli. in the grand tradition of apocrypha. Says Jose Dominic. holistic working system of human society and thought. came to Kerala as traders. the spread cloth to walk upon. Perhaps a few Brahmins did convert to Christianity due to land disputes or other reasons. It follows that there may have been no Brahmins hanging about in an earlier time to be converted. the Gospel of Christ arrived in Kerala on a Syrian boat and seeped into its being like tea from a teabag (with due credit to Arundhati Roy’s The God Of Small Things). you find its roots are drawn from the Brahmin families of yore. The conversion story was a handy aid to augment this process. that long. The names are listed with pride. 8th and 9th centuries AD. CGH Earth Joy Alukkas. Historian M. if you examine any diligently upkept Syrian Christian family tree. Syrian Christians chose not to remain the ‘other’ and positioned themselves as high-caste converts and with great canniness inserted themselves into the deeply caste-embedded society. “Syrian Christians take great pride in coming from a ‘good family’ and their behaviour is governed by this. No small feat given the standing strictures on hierarchy. Sankarapuri etc. a disciple of Iso Misiha (Jesus the Messiah). A nativised form of worship evolved. Kerala had abundant spices and oceanic trading played a crucial role in its economy. docked on the shores of Kodungalloor. Not entirely canonical legend has it that St Thomas the Apostle. And having managed to meld into society. Jose Dominic. “Perhaps their greatest contribution has been in infusing the Christian tradition into the Indian socio-religious mosaic in a truly indigenous way. thereby reiterating India’s ability to achieve the highest form of pluralism within a single. Kerala in 52 AD.” The Syrians were largely a monolithic church with strong relations to the Oriental Churches of the East till the Portuguese came on the scene and with papal sanction tried to . All trading was done in exchange for gold and the traders were immensely wealthy.” This high-caste positioning also had considerable influence on their conduct. MD and CEO of CGH Earth (a Syrian Catholic in the hospitality business). and then proceed to articulate which branch they are descended from. long before Christianity wore the vestments of Rome’s official state religion. Gangadharan says. Says Thiruvananthapuram MP and writer Shashi Tharoor. Historians are not without doubts about this theory. which has—with devotedly persistent retelling—entered popular imagination and even crept into school textbooks. Interestingly though. They behave very civilly in society and are good workmen as well. They point out that Kerala’s Aryanisation probably happened much later: in the 7th. MD. At some point in time. like the Arabs and Jews. they weathered the upheavals that time wrought and tenaciously preserved their position.It is said. which resembled a fusion of Hindu rites and ancient Syrian liturgy. or the banana leaf doubling as a plate. Kallyamgal. When the Syrian Christians became a landed community. the ownership gave them a sense of security and their sense of enterprise was reduced. there are real-life evincements of such success in the finance sector.Forbes Asia magazine had Muthoot Finance chairman M. hospitality and jewellery. “a Syrian Christian woman enters her husband’s house with 20 eggs and a hen. If you look at the old audit books of the State Bank of India (SBI). The larger companies are the A. both blessed with wide acreage. This lent itself quite naturally to moneylending activities and later to banking practices.” These banks were liquidated in the early 1960s and merged with national banks like SBI. George Muthoot and his three brothers listed among the hundred richest Indians. One banker says. in particular. George group and the society. Her survival instincts are so strong that the eggs will hatch and the hens will soon multiply and she will have a roaring business. However. Christians filled the Kanjirappally. that it is in its migrant state that a community excels. They weren’t able to live up to their full capabilities during this time. Companies like Muthoot Finance and Muthoot Fincorp have carved out a solid presence in the gold loan sector.” Mammen Mathew. a native Vaishya they were sitting pretty. they have consistently enjoyed a foothold in the gold loan business. the rubber belt of Kerala—Pala. the world over. there are notes from the RBI that attest to agricultural financing being a non-banking activity. but many retained their Oriental rites. State Bank of Travancore. Kottayam.G. Some took to paddy cultivation and became The caste ladder in agriculturists. they amassed considerable amounts of wealth. the present generation has realised the need to do something besides owning property and are once again making forays in IT. But banks like Federal Bank and South Indian Bank flourish. or Quilon Bank—undertook rapid expansion.” Chicken-egg analogies aside. In the mid-20th century. “You could say they were pioneers in agricultural financing. Chief editor. they have reversed that policy. “A story goes. Manorama Kochouseph Chittillapilly. some of which adopted Catholicism. writer. They succeeded: in splitting the Syrian Christian church into a number of splinters. Says Babu Paul. as Dominic says. orator and former IAS officer. In the pre-land reform days. Pathanamthitta. .J. Malankara plantations. V-Guard Industries The caste ladder in Kerala did not have a native Vaishya rung and the Syrians filled the gap. Kottayam Orient Bank.” says P.V. Today. Today. Koney—has a strong Syrian Christian gap. MD. “The Syrian Christians underwent different divisions and reunions and now are spread across the total spectrum of church theology from the Syro-Malabar at one end to the Pentecostal at the other. a former DGP of Kerala.induct them into the Catholic fold. Indian Bank among others.” As traders. But. It needed an unfulfilled entrepreneurial streak to go rung and the Syrian into the forested hills. Syrian Christian-owned banks—like Palai Central Bank. The introduction of rubber cultivation in the early 1900s had Kerala did not have few takers among the Namboodiris and Nairs. “It is a well-known tale. melding into presence. Alexander. Minting gold George Alexander Muthoot and M. forays into English. the MM gives due coverage to the Left while staying steadfast to its more right-leaning stance. Business acumen. Pioneer. The group brings out about a dozen titles from its stable. the founding editor.Vinoo Mammen.G. Kerala being divided into Centre-right and Left in political affiliation. From Outlook 01 October 2012) . vision and practical wisdom helped the Mappilais build up Malayala Manorama into one of India’s largest media powerhouses. Hindi. Says veteran journalist and writer Kurian Pampadi.” The daily has a circulation of over two million with 18 units in Kerala. India and the Gulf. (Photograph by Fotocorp. White Revolution Malayala Manorama. the third largest circulated newspaper in the country. is run by the Kandathil Mappilai Syrian Christian family and has shaped Malayalee public opinion since its first edition rolled off the press in 1890. was a visionary who wrote his first editorial pleading for the upliftment of the untouchable Pulayas. George Muthoot of Muthoot Finance. Chairman. Tamil and Bengali and even traverses mediums with radio and television broadcasts. “Varghese Mappilai. MRF Verghese Kurien. what has put Mangalore firmly on India’s economic map is the spirit of enterprise and its reputed educational institutions (though one’s eyes may boggle at the capitation fees charged by some of them). Yet. Bollywood beauty. They have even done excellent work as teachers in the field of education. the Goud Saraswat Brahmins (known simply as GSBs). who created the Pace Foundation in 1987 to train and develop young fast bowlers. SOUTH CANARA’S MOGULS The Konkan Rail Banks. Beyond the glamour. there have been visionaries too like Dr Verghese Kurien. “They have excelled in every sphere. Mathai was the founder member of the prestigious Indian Institute of Management (Ahmedabad). part of the Madras presidency during the British rule. The GSBs were merchants and entrepreneurs in Goa too. Situated on the west coast. It says much about the enterprise of the region that despite neglect by the new administrators. Among the pioneers in setting up banking institutions in Mangalore were Ammembal Subba Rao Pai. Canara. Shilpa Shetty and Sunil Shetty. two areas where Mangalore has carved a niche.” says Vinutha Mallya. talent and enterprise like Aishwarya Rai. yes. perhaps one needs to have rich cultural resources from an ancient environment. whether in education or banking. are often likened to the Punjabis of the north and GSB to the Patels of Gujarat in their entrepreneurial spirit. As is the state’s current CM. who took on the might of the Reddy brothers of Bellary mines with his Lokayukta report. Bunts. South Canara’s B-people have set the trend LOLA NAYAR Santosh Hegde. But who here now knows the Syriac culture? No Syrian Christian speaks Syriac. the spearhead of India’s white revolution. Mangalore became a hub by the 1970s.” Not that there aren’t areas for improvement.K. music and letters. The willingness to sacrifice bits of self-identity in order to better assimilate into the whole. As an anti-scriptural pithyism perhaps purports to illustrate: a Syrian will marry a tribal princess and readily shed his clothes to become the chief when she inherits the throne. He presented two budgets. we don’t find too many. . The main business communities of south Karnataka region are the Bunts.Admittance into the upper echelons of power came early post-Independence. the finance portfolio. Mangalore. flamboyant (and currently flailing) businessman Vijay Mallya. GSBs soon settled in to build several remarkable enterprises. despite competition from many replicas the originals stand tall. And John Mathai’s son Ravi J. all the PMs from the Gandhi family have had Syrian Christian personal assistants or secretaries. a Goud Saraswat Brahmin. Dominic laments. came under Mysore administration post-Independence. illustrious writer Arvind Adiga—the list of Mangalore’s icons is endless. with John Mathai becoming India’s first railway minister and later taking over. Yes. Defence minister and former chief minister of Kerala A. Vijaya and Corporation—were from south coastal Karnataka. Though dutiful in service. An unsung hero in the Indian sports arena is the late Ravi Mammen of MRF (owned by the Kandathil family). To do that. theatre. “The Bunts have been landowners and traders for centuries. Interestingly. education. and carried that character with them when they migrated (the largest number during Portuguese rule of Goa). It is difficult to say who led whom in the race to set up new institutions of learning or enterprise. an independent publisher who belongs to the GSB community. so the GSBs had to start life from scratch.” A grievance many in the community acknowledge. When India nationalised 20 banks in two phases. But being highly literate. as Dominic says. Antony is a Syrian Christian. a martial race of Mangalore. “In the field of arts. four of them—Syndicate. They landed in the South Canara districts with little resources. With out-ofthe box strategising in the 1980s—its sponsorship of motorsports in particular—MRF was able to establish itself as a market leader. the Mangalore Catholics and also the Bearys. Oommen Chandy. Shetty. while Vijaya Bank was set up in 1931 by A. Narayana. a temple town. “It was considered philanthropic. which led to the setting up of chit funds. The element of nepotism helped people get jobs but the climb up thereafter was purely on merit. the people get bank private sector Karnataka Bank grew with the merger of Sringeri Sharada jobs but the climb Bank Ltd. points out business journalist Vivian Fernandes who hails from . Over the years. Other banks followed with Karnataka Bank set up by prominent members of the Brahmin community in 1924. UB Group K. Narayana Hrudayalaya Vijay Mallya. B. Each bank is a story of different community efforts—exactly like the Kerala side of the banking story. Mallya narrates how people like her mother got a walk-in bank job just because she was a graduate.. “The element of nepotism helped Shetty of the dominant land-holding Bunt community. cooperatives and banks. Chitradurga Bank Ltd and Bank of Karnataka.V. Community feelings were so strong that till the 1980s top bank officials were from the respective groups. a business historian and head of the Thiruvananthapuram-based Gulati Institute of Finance and Taxation.. “The foundation of up thereafter was banking is trust and each of these banks came up in competition with each purely on merit.. UAE Dr Devi Prasad Shetty.B. Syndicate Bank in 1925 by a group of GSB community members.” says Prof D. Kamath.who started the Canara Bank in 1906. ICICI Bank/Infosys An ability to mobilise small savings is an important usp of the GSB community.R. New Medical Center. This got the ball rolling with Khan Bahadur Haji Abdullah Haji Kasim Sahib of the Muslim community setting up the Corporation Bank in Udupi. which was part of the erstwhile undivided Dakshina Kannada (Mangalore) district of Karnataka.” other along caste and religion lines.” she says. Of course. other Brahmin groups. Stubborn. In the early 1930s40s. Christians or Muslims.M. we are witnessing a shift with large numbers moving to IT. Mallya’s foray into aviation with Kingfisher Airlines has hit a bad air-pocket in the past months. said to have been started in 1928 by Syndicate bank just three years after it opened operations. and has emerged as the net exporter of talent with 10 per cent of the population. Narayana says that when T. A perplexed Subramanian is said to have wondered aloud at “this mad man who wants to pay for the use of the district hospital”. took their hotel business to the north and many prospered with their eateries serving non-vegetarian food in places like Mumbai and Pune. a practising surgeon. Are known to be polite and courteous. today the bank collects around `2 crore per day under the scheme. An intrinsic aspect of the GSBs and the Bunts are their restaurant and liquor business. the GSBs have a takeaway. in the liquor business. to name a few. Woodlands. One such was Pigmy banking or daily collection. straightforward Parsis will tell it like it is. Subramanian. Not show-offs Parsis don’t flaunt their wealth. Mohandas Pai.” says T.A. PARSIS Straight. working overseas. bought 107 acres of barren land on a hilltop near Udupi. Permission was granted and till today the arrangement continues—benefiting both the medical college and the Vellore district hospital. Pai. whether Bunts. Most Parsis are well-to-do enough to feel contented. they’ll stick with it . stretching right up to Kochi in Kerala where GSBs have a strong presence. the takeover of United Breweries Ltd by prominent GSB member Vittal Mallya and later its emergence as the king of domestic spirits under his son Vijay Mallya is a well-charted growth. But after some failed ventures.A. Honest Parsimoney The Parsi reputation for diligence and trustworthiness warms their businesses ARTI SHARMA Compass Card • • • • • Honest. Similarly. current CEO of the Manipal Education and Medical Group.V. Believe there is something more important than that —enjoying life to the fullest. Mangalore and Udupi are the hub of several such ventures by different communities.Mangalore. There is a sizeable number of IT entrepreneurs in the US now. This concept took shape and assumed various guises in this coastal region. mostly professionals. Starting self-financing colleges may not have been the original idea when Dr T. Parsis are non-combative. whether you want to hear it or even if you don’t Shy and reserved By and large. Dasprakash. if a Brahmin set up an eating joint. This led to the emergence of Brahmins as hoteliers for the entire south—Udupi. Pai points to the fact that undivided South Canara had the highest human development index. Content lot Not known to be overly ambitious.M. everybody would eat food there. “After two generations. C.” reads a brief history of the bank. when Pai. Today. a prominent GSB industrialist. on the other hand. Pai set up the Kasturba Medical College in the 1950s he requested then finance minister of Madras state. that the college be allowed to use the Vellore district hospital facilities for training for a fee. As the government flounders through various models of public-private partnership (PPPs). ventured into education he hit upon a winning formula that’s been replicated across the country. “The bank collected as low as 2 annas daily in 1928. have an understated style. loyal If they believe in something. The Bunts. quirky. almost blunt. are happy with life. when the income-tax department questioned him about the transaction. and they are uncomfortable about pushing the boundaries. but it’s the truth. director of Kejriwal Research and Information Services. the British came to see them as efficient at work. The builder refused to sell the property unless part of the payment was made in cash.” says a man who enjoys the company of his many Parsi friends.” says Kejriwal. There are no grey areas with Parsis. The next edition of the newspaper carried a front-page piece on how the “Parsi Racing Society” had “sponsored” this event and that “full credit should be given to Parsis for organising a racing event”. they would rather not know of any sort of wrongdoing. friends for life. non-Parsis who have worked with them say that. happy with what they have and manage to have a balanced life. “but doing so goes against their grain and. Later. The annoying ones will be out-and-out rogues.” says Shroff. Ratan Tata. sponsored by the Performance Racing Store. They readily believed him. Poonawalla. even if you are the closest of friends with them. they accepted his word and let him off. Later. recalls a Parsi trying to buy a house in Mumbai some years back. as far as possible. a senior office manager at a leading multinational firm. Mumbai’s history is interwoven with the history of Parsis: a bulk of the minuscule community still lives in this metropolis. they know how the game is played. . A ‘PRS Bike Race’ was being held as part of the festival. there are references to how the British found Parsis easy to deal with and even a bit like them in manner. Arun Kejriwal. of her community’s “types”: “I think there are two types of Parsis—the really good ones and the really annoying ones.” Generally.*** At the annual festival of Wilson College last year. even eccentricities. Parsis are honest. honest and reliable. a writer for the Parsi Times. The really good Parsis will be honest to a fault. the builder’s name and other details on the counterfoil. Poonawalla Group A senior banker at a public sector bank says one thing has stood out in his dealings with Parsis: they are shrewd. “I am not saying they don’t use the system. decided to have a bit of fun. contrarian and unpredictable. real estate and businesses belong to Parsis. “Given the goodwill the community enjoys. You can call that being an ostrich. Most Parsis have a laidback attitude.” Says Benaifer Shroff. The Parsi withdrew the required sum from a bank and wrote down the date. it was the builder who was questioned. “If there’s any community that happens to be more jovial. he explained the circumstances and produced the counterfoil in evidence. In several historical accounts of Parsis. there’ll be a point that cannot be crossed. “It’s that thoda hai. a local community pullout. They might hire somebody else to get their job done. Later. I’ll be extremely surprised.” he says. Some of the largest plots. education. they maintain a healthy worklife balance. thode ki zarurat hai attitude. Tata Group Cyrus S. generally happy with life. Most Parsis tend to be reserved and understated. Wadias and Godrejes—haven’t found enterprise flowering in the younger generations. when it comes down to it. young Parsis are keen to take up professions. He belongs to the Pallonji family. with the new generation showing more ambition. for instance—the circle of influence would seem to be small. speaks of this openness to change. “It is the people you meet in your transformative years that determine your approach to life. expanding them or changing them to suit the times. he says. 43. Mistry’s track . For proof. Thermax Strangely. like medicine. Shapoorji Pallonji Mistry. but rarely venturing to create new businesses. that “you need a microscope to find out where they are”. it was not the right way. a real estate firm. Parsis are viewed to be quite open to change and technology. One thing Parsis are not is clannish. We’re no longer insulated and therefore will not necessarily reflect the characteristics of the community. Godrej Group As a community. Adi Godrej. There are a few exceptions. He recalls an old gentleman reminding him at a Parsi conference that if a business was not conducted the Parsi way.” Indeed. business and money. The company’s name—it’s named after his father—marks it out as a Parsi company. Kejriwal speaks of a Parsi classmate from Campion school in Bombay. Architect Hafeez Contractor. who the boys would tease by calling him half-witted. “A Parsi will not hire another Parsi just because they belong to the same community. founder-chairman and managing director of the Rustomjee Group. at life and at their own community. but outside influences make a key difference. Irani believes it’s his responsibility to make sure that his customers and employees are well taken care of as long as he heads the business.” says a Mumbai-based headhunter. and people tend to trust and feel comfortable with it. who grew up with Sindhi and Marwari friends. This is unlike any other business community. Given the diminishing population size—there are only a few hundred Parsis in Delhi. Mistry. who are so reclusive. though. However. In the business sense. We still draw from our heritage. Parsi influence in the business world still rules strong. architecture and education. Boman Irani.They love to laugh at themselves. They are known to be extremely stubborn. law. he’d retort that he’s grateful he didn’t turn out witless. Shapoorji Pallonji Anu Aga. These days. Most young Parsis seem content with handling family-owned businesses. “It’s next to impossible to change the mind of a Parsi businessman who has made a decision. unless you present a compelling argument. says an insider. look no further than the intense media attention around Cyrus P. for his parents happened to be first cousins. The boy went on to become a top lawyer in the UK.” says Kejriwal. the older generation of Parsi entrepreneurs who set up business houses—the Tatas. Ratan Tata’s chosen successor. profit comes up trumps. He will first weigh the advantages and disadvantages. especially the newer generation. says he has benefited from his Parsi lineage. near Kalol. former home minister and a Patel. Of Patel cohesion. Zadaphia. a Patel will stand by another Patel. it might be said. its self-reliance Great institution-builders. instances abound. often for huge sums. In Mokasan village. In Patel-dominated Unjha town of north Gujarat.” says Gordhanbhai Zadaphia. MISRA Lords Of land • • • • • • Believed to be Kurmis from undivided Punjab. which he heads. who broke away from chief minister Narendra Modi and is now one of the prime movers of Keshubhai Patel’s Gujarat Parivartan Party. whatever the circumstances. Patels have been progressive agriculturists and land-owners in Gujarat They were the first to try out cash crops like cotton and tobacco Known to be hard-working and optimistic. PATELS The Rap Of Enterprise Patels have transformed their hardiness into appetite for risk R. with the guts to take business risks Highly clannish and bound to tradition but pretty modern in their outlook on life Great sense of pride in their community. had to join Keshubhai. Now he has the chance to be a new-gen flag bearer for an old business community. “Patels who earn well make it a point to plough back some wealth to create facilities for the community and for society at large. after all. are organised on no more surety than a verbal promise to return the money once the borrower has settled down. NDDB Odhavji Raghavji Patel. Amrita Patel. First and foremost.record is primarily in Shapoorji Pallonji’s construction business. Patels have set up a cooperative to fund youths keen on going to the US but lacking the finances. Orpat Group . Loans. they are both Patels. with a keen eye on making money work *** ‘P for P’ is a phrase heard often in Gujarat.K. the agricultural produce marketing yard has covered all residents of the town and tehsil under a group accident insurance scheme. So many industry-specific acumen. a Patel who was president of the Rajkot Engineering Association for 20 years. there has been large-scale diversification into castings and automobile ancillaries. A place to stay came free and liquidity was never a problem. the down payment was never a problem thanks to a network of relatives and community members. to the UK. confronting the vagaries of nature and having to migrate (in search of work as farm hands) has given them optimism and stomach for risk. Girish Patel. coupled with repeated famines. Thus the honorific Patel. Paras Pharma Karsanbhai Patel. Additionally. “This.” says Vajubhai Mavani. From politics to business. the be good institutionceramics industry of Morbi and the rest of Saurashtra. They were given land pattas and gradually acquired leadership positions as revenue collectors for the rulers. “The Patels’ link with the soil makes them hard-working. the West. the list of prominent Patel names can take up reams of paper. The pharmaceuticals industry is another area into which Patels have made a recent foray: Zydus Cadila comes to mind. Besides business trade. Some of the entrepreneurship. founder secretary of SETU (Centre for Social Knowledge & Action). the US. but the prosperous Patels of what is now central Gujarat had to part with much of their land. Ahmedabad. their role in revenuegathering has given them leadership qualities.” says Achyut Yagnik. What more does a Patel need? The dominant Patel stock has become the front face of Gujarat globally. creating in the process the portmanteau coinage ‘Potel’ (a motel owned by a Patel)? As one who was part of the trade pointed out. author of The Shaping of Modern Gujarat. their clannish moorings provide an essential safety belt. much of the skilled labour and the muscle for handling competition come from the Patels of Bhavnagar and adjoining areas. especially Rajkot was the only diesel engine manufacturing centre in India—since the of cooperatives. . There would hardly be an automaker who does not source parts from here. saw the enterprising Patidars migrate to East Africa and later. raising both envy and ire. Nirma Group The evolution of the Patels makes for an interesting case study. “Other than Agra.” says Yagnik.How did one-third of the motels in the US come to be owned by Patidars. builders. They became landowners under the rayatwari system of the Bombay Presidency.” These factors have enabled the community to claw its way up in industry. there was a steady supply of helping hands.” In Surat—the business capital of the state—Patels have a fair share in the diamond cutting and polishing industry. the Patels initiatives in the state have come from the Patels: the diesel engine are also known to manufacturing units of Rajkot. in a double migration of sorts. business or positions of importance. “The Patidars are basically of farming stock. the brass parts industry of Jamnagar. “Today. sixties—and it was the result of Patel initiative. Land reforms introduced by Morarji Desai (then heading the Bombay state) may have made land-owners out of tenant tillers in Saurashtra. Patel. and Keshubhai Patel—and a host of Patel ministers. The movement has been taken to 25 countries. the EDI was set up as a national resource institution. who later became the director of the Entrepreneurship Development Institute (EDI). The idea turned into a movement: in three decades. industrial estates promoted by the Gujarat Industrial Development Corporation (GIDC) came up. harnessed him to set up the first industrial estate promoted by a state-level public sector corporation. the author and implementer of the KHAM— Kshatriya. but there’re stirrings of conflict within PRAGYA SINGH Ways Of The Bohras • • • • Close-knit Bohras are a close-knit Shia community in Gujarat Trading Usually merchants or engaged in self-owned businesses. Patel in entrepreneurship. dairies and agricultural marketing ventures—in fact. enjoying the first-mover’s advantage even as they take their quota of falls in their stride. and is now chairman of the Consumer Education and Research Centre (CERC). What Tribhovandas was to Kurien. later provided the rock-like backing that helped the late Verghese Kurien bring his dairy revolution to fruition. over much of Gujarat’s strong network of cooperatives. relatively new to professions Impartial Don’t oppose governments in power—a self-preservative instinct that is now leading to isolation Educated They’re highly educated. The state has had three Patel chief ministers—the late Babubhai Patel. quick to see potential. this Patel with ancestral connections to Karamsad gave up a bright future to come back to a disillusioning short stint with the Planning Commission. Adivasi. the late Chimanbhai Patel.000 trainers. along the stretch between Vapi and Ahmedabad.G. A young economist. Is it just a coincidence that the Congress has never won in Gujarat in the quarter century thereafter? Let’s give the last word to Yagnik. V. with funding from idbi. “Remember. women not discriminated against . Ahmedabad.” BOHRA MUSLIMS Guns And Manners Bohras still excel at trading. The community has a strong hold over cooperative banks. laying the foundation for industrialisation. making India the biggest milk producer in the world. Thirteen years on. Indira Gandhi’s commerce minister Manubhai Shah was to V. “Patidars are also a step ahead of others. This was in 1985. Shah. Under him. fondly recollects the early days. Tribhovandas Patel of Anand. we needed a steady supply of entrepreneurs. who in turn have trained some 10. EDI has trained 2. With almost hundred per cent finance being made available. 37 of them turned entrepreneurs and the programme was on.There’s no dearth of Patel pioneers.” he says. “We had industrial estates. Because of their close bonding and economic strength.000 entrepreneurs. whom Sardar Patel had asked to organise milk cooperatives. Muslims—formula.G.” he says. It is common knowledge that the Patidars had moved away from the Congress in Gujarat after they were ignored during the chief ministership of Madhavsinh Solanki. when the Congress bagged a record 148 of the 182 seats. we set up an investment corporation to finance projects but the entrepreneurs to take advantage of it all were missing. So we motivated a group of 45 and conducted an entrepreneurship programme in April 1970. fresh from the US after his doctorate. They possess the capacity to tilt political fortunes in 80 of Gujarat’s 182 assembly constituencies. Harijan. in 1983. the clannish approach of the Patidars has helped fuel their growth. the Patels have wielded decisive political power. If nascent Gujarat had to grow industrially. at Aji in Rajkot. Wipro chairman Azim Premji is another famous Bohra. an embroidery works unit started by his father Shabbir . Being educated. such as the scientist Yusuf Hamied. except those proscribed by Islam. With their metier being in trading. but the latter section adopted Sunni Islam. the Bohras have traditionally done better compared with other Muslims in India. “You will find Bohras engaged in all kinds of business. who leads the Progressive Dawoodi Bohra movement. Bandukwala is part of a small and tightly-knit community tracing its roots to western India—mostly Gujarat—since the 12th century. and Habil Khorakiwala.• Reform Progressive elements want the priesthood of Bohras to be less interfering in everyday lives *** “As my name suggests. iron. Alavis and others. so there was a split in the Bohras. glass-works as well as grain-trading.” explains Asghar Ali Engineer. Founder. creative director at Best Sellers. Bohras are engaged in cloth. often erudite. After the split. and successful in trade. In turn. The aura of prosperity about the community is fuelled by the handful of well-known. my family has been traditionally engaged in the arms and ammunition business. the Bohras are further split into Dawoodis. mobile services. As a Bohra Muslim. a cousin. Azim H.” Engineer adds. ‘curry king’ Lord Gulam Noon. Wockhardt “Right from the beginning. who established the company in 1969. Egyptian and Indian influence. Premji. I did work for a while for other companies but very soon decided to join my father’s company. like banking. who lives in Mumbai and is the managing partner of a packaging and printing unit. the community took on a distinctly mercantile and urban character. Sulaimanis. tobacco and the betel nut business are considered taboo. It clocked a turnover of Rs 25 crore last year.” says Fardeen Bunglowala. with a culture that is an amalgam of Yemeni. the Bohras join Gujarat’s two other prominent mercantile communities—the Memons and Khojas—in boasting enormous success over the ages. but which now has a global footprint. who founded Wockhardt and merged it with his father’s chemical and pharmaceuticals firm in the 1960s. Wipro Habil Khorakiwala. making it one of the bigger firms in an industry dominated by small-scale units.” says Arif Bandukwala. whose father started the generic drugs company Cipla in the 1930s. The Paper Print and Products. very few Bohras have ventured into manufacturing. Chairman. The founding partner is London-based NRI. There are no peculiar characteristics other than that wine. Gujarati-speaking and largely engaged in trading and merchant-oriented activities. or the legal profession. More often. The only member of Bandukwala’s family still engaged in the family’s old arms and ammunition trade is his sister in Mumbai. “The new trend is for Bohras to join the services sector. the reformist writer and activist from the community. Bohra Muslims were engaged in business as well as agriculture. successful Bohra businessmen. Arif Bandukwala. who are Sunnis. vested interests of the high priests have led them to lavish praise on Modi at the risk of alienating all others. But business was encouraged. and are different from Memons. Paper Print & Products Asghar Ali Engineer. The tendency of the religious leaders to hobnob with those in power ensures protection and breeds success. Both Engineer and Juzar Bandukwala point to how success among the Bohras has come at a price. as well as manufacturing. however.” says he. who is now an activist for rights of Dalits. “The Bohra priesthood’s closeness to Narendra Modi has been resented by most Bohras. both get the freedom to study as much as they want. as a means of financial survival. In Gujarat.” Fardeen says.” explains Juzar S. He is 26 and has two higher academic degrees. marriage and social relations were confined to within the community. “Till recently. To survive. Bohras are also a very closed group. branching out of traditional trading to new professions. The new generation of Bohra businessmen is atypical. This was largely due to the position taken by the clergy in the aftermath of the 2002 Gujarat riots. when among Muslims. Engineer. they followed a route similar to that of Jews in Europe and America or Parsis in India. Juzar Bandukwala points out. Domination by their religious leadership (Syedna) has led other Muslims to look askance at Bohras. “My role has been to modernise the business by introducing technology as also engaging with means of communication so as to boost exports. “yet it drives the educated away” from within the community. Yet. and surrounded. In the Bohras’ own history lies further clues to their standing out from other Muslim communities. Writer. Being a small group of Shias. Many religious rites were secretive and totally closed to outsiders.Bunglowala three decades ago. by a much larger Sunni community. To preserve their distinct identity. All his relatives are graduates—some business management grads—and are in the legal and other professions. “We Bohras do not discriminate between boys and girls. But it comes at a high price for any modernising impulse—both Juzar Bandukwala and Engineer have been attacked several . all may not be well within the community. activist Over the years. a retired professor of physics living in Vadodara. Bohras developed a strong sense of community consciousness.” says Arif Bandukwala. in commerce and fashion. Bandukwala.” he adds. which may hurt the Bohras in the long run. They are closed to inter-mixing and practise all rites separately from other Muslims—including separate mosques and burial grounds. obcs and Muslims. The Bohras and Khojas of Gujarat are like-minded Shia Ismailis. it was almost impossible to penetrate these societies. The story of the Bohras is that of a distinctive culture fuelling business success. giving the community a further leg up. tribals. is uncomfortable with some facets: “At times the language used by people of other religions to deride Muslims is used by Bohras against other Muslims. and jealously guards identity. It has also produced bitterness among other Muslims. Bohras have taken to higher education. It’s ironic. except in religion and cultural habits. “Still. Credit it to the fact that a Reddy rarely loses his rural-agricultural connect. Reddys know their paddy from their corn. rainfall and soil fertility.” says Engineer. construction. The community. As a natural offshoot. REDDYS Always On The Reddy Rooted to the soil.” says the industrialist-politician. diagnostics. a tad boastful. Since most of them have witnessed windfall gains and losses in farming. power. also seriously lavish weddings Wonderful hosts: Reddys know how to make their guests feel like royalty. sums it up best: “The Reddys imbibe their risk-taking nature from their agrarian backgrounds. power. Son Sandeep and son-in-law Sanjay. “We are aggressive by nature and a dominating force both politically and agriculturally. Natural leaders: Confident to the point of being arrogant. irrigation. has an affinity for ‘leadership’.” Subbirami Reddy’s was among the first Reddy families from Nellore to enter the construction business— 50 years back. the GVK Group. It’s no surprise. he (or she) can lecture you endlessly on crops. real estate. mining. films. hospitality. You can take a Reddy out of industry and put him elsewhere but you can never take the business gene out of a Reddy. sugar and chemicals.times by different groups for being partial to bringing reform and progressive ideas into the Bohra fold. . therefore. former MP and founder of Gayatri Group. Reddys are successful business barons as well. Across the spectrum. What lies unstated is a general fear that the Bohras are moving further towards isolation. education or IT project. they are not given to panic. Regardless of the position he may hold. infrastructure. infrastructure and always. the Bohras are the same. Subbirami Reddy. huge mansions. there’s a Reddy. construction. that where there’s an infrastructure. at least a minimal amount. highways. flamboyant: Reddys love to display their wealth in the form of flashy cars. who hails from the other Reddy powerhouse. *** Tell a Reddy there’s a fresh enterprise brewing and chances are he’ll give you not just a patient ear. but also come back with an improvised business model in hand. The family’s business interests now span hotels. in every way. Their success in the hospitality sector is a natural corollary. are ably steering the capitalist ship ahead. healthcare. of farming. exotic holidays and yes. which has a history of successful farming and ancestry harking back to the ruler or warrior class. Reddy women always play a part in decision-making Flashy. as other mercantile communities of India. Reddys bring the same earthiness to business MADHAVI TATA Steady Reddys • • • • • Sons of the soil: Most of Reddy enterprise lies in land. pharma. T. with the Nagarjunasagar dam. a Reddy’s body language is never submissive Strong women: Whether they are in the family business or minding the home. K. the Reddys made a foray as PWD (public works department) contractors in dams. Dr Reddy’s Laboratories K. property and power. roads and even railways. In the pre-Mandal era. The community has always seen a high number of MLAs and MPs since Independence. Dr Reddy’s Laboratories Reddys have dominated Andhra politics for decades. Anji Reddy. electrical equipment. extending the same tips now to his children.” says Adala Murali Krishna Reddy. conservation and growth on the farm. I’d say I learnt the basic concepts of entrepreneurship like management.” says the 58-year-old. hotels. warehouses. hotels. “The Reddys have an ability to harmonise other communities and sustain them. and the Reddys. when the government introduced publicprivate partnerships. chairman of the MAK Group. This is because Reddys are perceived as ‘able’ administrators who can exercise power with flair. they entered the manufacturing industry in a big way. Anji Reddy. Much of the surplus rural capital of dominant castes like Reddys flowed into these ventures. who had hitherto owned large tracts of land. be it of Sanjeeva Reddy or of Kasu Brahmananda Reddy. bridges.” In the 1950s and ’60s. canals. “Many Reddys in Nellore and Chittoor explored commercial exports like tobacco and micanite mining even way back in 1944. The proximity of Nellore to Chennai had led many Reddys to explore industry in the erstwhile Madras presidency during the British rule. disproportionate to its numbers. And in the ’70s. a professor of history at the Osmania University. almost the entire state cabinet would comprise Reddys. opportunities for investment in non-agricultural activities such as mining. “Studies reveal that during and after World War II. transport and lift irrigation schemes were on the rise. began educating themselves aggressively. At the same time. “Even though I left my village years back. . thrift. That changed after then prime minister Indira Gandhi introduced the Land Ceiling Act. taking baby steps into steel.” says Satyanarayana Adapa. detergents and TV sets. they realised that agriculture alone could not secure their future and began scouting for fresh enterprise. whose verticals include irrigation projects. it’s not just their spending capacity but their organisational abilities as well which make Reddys what they are: confident businessmen. village headmen. says M. became crucial to the community’s growth when the steady revenue from agriculture began dwindling. Gautham is among the line of young Reddys who believe that it is not just community background alone but hard work and good education that make a difference. Somireddy Chandramohan Reddy. Education. and even abroad in countries like Ethiopia. thinks the best part about Reddys is “they know how to get work done”. Educated in Manchester. “It is again to do with our agrarian roots. bridges.D. . Gautham Reddy. One of their strongest traits is said to be the community’s liberal and people-oriented approach. The solidity of the Reddy stock as big farmers. Nageshwar Reddy. indeed. Asian Inst of Gastroenterology Nellore’s proximity to Chennai had led the Reddys to explore industry in Madras presidency during the British rule. UK. mostly under NHAI. airport runways and power. highways.” emphasises Telugu Desam Party leader from Nellore. MD of KMC Constructions Ltd. whose family is in the business of power projects besides agriculture. Asian Inst of Gastroenterology D. landlords and village representatives creates an almost impeccable line of top-notch industrialists. Nageshwar Reddy. “The Reddys do have the knack of adapting easily to varied work environs which helps them in bagging several projects.” says Gautham Reddy. The KMC Group’s primary portfolio comprises roads. Somireddy. It has projects lined up in several states. Evidently. ” says a Reddy hotelier who also runs a successful business in neighbouring Karnataka. informal networking is also something the Reddy is adept at. Dr Prathap C. What’s more. (Photograph by Nilotpal Baruah) And so. They also draw reference points of knowledge from each other. Standard Reddy sanghams apart. this networking may appear a chaotic honeycomb but in fact there is order within the chaos. “That’s because we . Reddy of the Apollo Group.V. irrespective of the party in power. Rajeev Reddy of Country Club. they’ve not wielded as much power as we have. most top industrialists of the community stay in touch. A modest Reddy employee who has worked in a cement factory would in no time be picking up the tricks of the trade from his employer and use him as an inspiration to set up his own cement business. Reddy. industrialists of this community wear their capitalist tag proudly on their sleeve. Smooth. From a distance. They may compete against each other. An accepted fact about Reddys is that they manage to stay close to the corridors of power. “But somehow. The Kammas in Andhra Pradesh come from a similar background of farming and landowning class.K. he will even borrow the initial capital from him. but industrialists of the community do not shy from extending a helping hand should a fellow Reddy be in trouble. exchanging market tips and earthy business advice.A place in the sun Dr Prathap Reddy of the Apollo Group. Anji Reddy of Dr Reddy’s Laboratories or G. our company had a turnover of Rs 30 lakh. She takes equal part in decisions affecting the farm. Their friends and relatives. And when there is a void caused by incompetence or death of the male. who joined them to help and open new firms. Varaprasad Reddy. who runs the show at Dr Reddy’s Labs as MD and COO. “In 1992. since they were either associated with the Marwaris or introduced by them. Nagi Reddy started Vijaya Productions in Chennai and went on to become a famous producer and studio owner. but that hasn’t stopped him from producing actor Nagarjuna’s latest release. Make no mistake. I travel 25 days a month and work 15-16 hours a day. has a successful businessperson in wife Deepthi Reddy. Wealth goes around. his first such foray. Deepthi runs the widely popular Wow! Hyderabad magazine. multiplies. like B. particularly Bengal. Ex-RBI governor The clannish behaviour reveals itself in the pattern of marriages.” says Mahesh Reddy proudly. The . In the social and trade parlance of Calcutta and Dhaka of the British period all traders from North India passed for Marwaris. And even as they temper passions to meet market conditions. The wife of a Reddy farmer knows everything about crops and their marketability.500 crore. Satish Reddy. Reddy. some of them. Immigrants from Rajasthan into Eastern India. an old state of Jodhpur in Rajasthan. Reddys gather all the ingredients and cook the dish of success themselves. For that matter. Today it stands at Rs 1. Even today. The credibility attached to the Marwari businessmen influenced other Rajasthani traders and merchants to introduce themselves as Marwaris. Prior to Independence. the Reddys are not averse to trying out new ventures.Shirdi Sai. came to be known as Marwaris irrespective of their original homes. This is evident right from the village level. busier than any other in the country. but stays within the wider Reddy family. “Nothing is readymade. industrialist A.are an agricultural community which has transformed itself into a business community. We are not a trader community. The Telugu film industry.” explains Murali Krishna Reddy.V. Marwaris refer to a commercial and industrial community originating from Marwar. but it was the Reddys who cut their teeth on it first. The women in the Reddy community are powerhouses in their own right. is that he never loses his drive. ventured into movie-making. Shanta Biotech Y. of which she is the managing editor.” It shows in the aroma. established their credibility in commercial enterprises and emerged as the leading merchants and traders. might be dominated by the Kammas today. mostly within the community. says the newbie film producer. Reddy women take charge with elan. Mahesh Reddy’s company amr India Ltd may be primarily into contract mining. The secret of the Reddy’s success. Nagi Reddy. The landholders. During the Nawabi period the Oswals seem to have established their dominance in Bengal trade and commerce. who were also Oswal Marwaris. salt. Standing as jamin or security to government for malguzar clients became a great business in the early 18th century and the Marwaris were its principal beneficiaries. Ever since the time of akbar the Marwaris established their business houses outside Rajasthan.Marwari diaspora to Bengal seems to have begun from the 17th century or even earlier. Subsequently the Singh family entered jute trade. After the permanent settlement he also acquired extensive landed estates. During the Nawabi period the Marwaris monopolised the mint and currency business. They mainly dealt in hundis (bills of exchange) in long distance trade. Oswals. In some areas of trading. Patuakhali and Comilla districts were co-shared by the Khwajas of Dhaka. Bihar and Orissa. Some of them settled here permanently and participated in local trade and moneylending. Maheshwaris. and moneylending. was the most important Marwari house in Murshidabad and Calcutta in the last two decades of the 18th century. revenue farmers and ijaradars looked to the Marwaris for standing as their jamins to the government. a Porwal Marwari. particularly in Bengal. which had the monopoly of the mint and banking sectors of Bengal. The pure Marwaris of Rajasthan belonged to several socio-religious groups. Another great speculator was Dulalchand Singh (alias Dulsing). grain. such as banking. belonged to the Oswal group of the Marwaris. their presence was very large. The famous house of jagat sheth. It was banking and bank-related trade in which the Marwaris established their predominance. The jamini business reached its peak in the early phase of British rule. who bought large zamindari estates in Bengal districts. So were the great commercial and banking houses of Gopal Das and Banarasi Das. He lived in Dhaka where he established many markets. cloth. such as Agarwals. It is known that some members of the Vaishya class first came to Bengal in the train of the Mughal Rajput army. which were in the private sector. . Hajari Mull. zamindars and taluqdars. Bihar and Orissa and which played a crucial role in the politics of Murshidabad Darbar. murshid quli khan's malguzar system provided for securities from the revenue farmers. engaged in revenue farming in almost all Bengal districts. Many of his large estates in Bakarganj. Khandeshwals and Porwals. From Barabazar these great Kothiwals financed the centres of Marwari banking and trade in East Bengal in Naogaon. Khulna. Mymensingh. Harsukhdas Balkissendas. but its main financiers were the Marwaris.Dhaka. who came from Jaipur. dominated the indigenous money market. Rangoon. Bansilal Abirchand. Kothiwal Daga and Ramkissen Bagri. Mir Qasim captured two chiefs of the House and killed them. In Akyab they dominated indigenous finance and trade. Six great Marwari bankers and merchants at Barabazar.The three great nawabs of Bengal-Murshid Quli Khan. . depended consistently on the Marwaris whenever they were in distress. Chittagong. had branches in Calcutta. a monopoly made possible by the large Arakan trade with East Bengal. The opium and indigo trade in Bengal was a British monopoly. Calcutta. Naogaon. overshadowing the Nattukottai Chettiars. The advancing Marwaris pushed the economic frontier of the hundi to areas where it had never operated-to Assam and to Arakan. Unable to get the expected help from the Jagat Sheths. Khulna. Chittagong and Sandaway where they dealt in hundis and gave loans to traders and private persons. namely Tarachand Ghanshyamdas. Sadasuk Gambhirchand. Nawab mir qasim sought Marwari help in implementing his plan for rebuilding his army. There was a massive migration of Marwaris in the 19th century and within four to five decades they gained control over the whole economy of the region. with headquarters in Akyab. Chittagong. The Marwaris were the main target of the Maratha maraudars who raided Bengal several times during Alivardi's regime and it is estimated that from them the Marathas squeezed above three crores of rupees. The Marwaris had set up commercial firms in the towns of East Bengal . Mymensingh etc. Most of the shopkeepers of Calcutta and other Bengal towns in the 19th century belonged to the Shekhavati Agarwal group of Marwaris. Dhaka. Shujauddin Khan and alivardi khan. They had established a near complete domination over indigenous finance and trade. the large Marwari firm of Lakshminarayan Rambilash. For instance. declaring them responsible for the miseries of Bengal. dwarkanath tagore had opened several indigo concerns with financial support from the Marwari houses of Sevaram Ramrikh Das and Tarachand Ghansyam Das. Though they belonged to the Hindu and Jain religions and though they had many castes among themselves. Tularam and Dugar families. Several branches were opened in Rangpur and Dinajpur. For example. The other was reformist in religion and often nationalist. Both the Hindus and Jains were vegetarians. Diwali. Rakshi and Karbachut. Chief deities of the Hindu Marwaris are Ganesha and Laksmi. Shethia. At the centre of the family was the father. By 1900. socially they lived together as a community. such as the Lohia. Nathuram Ramkishan established Messrs. Nag. more than one half of the jute balers of Calcutta were Marwaris. commission agency and rice and opened agencies in other parts of Bengal during the jute season. All Marwaris loved a rich diet. The Marwaris maintained the traditional panchayat (council of elders) system that they brought with them from their native land. The social structure of the Marwaris was quite simple and had grown along the concept of the extended family. and controlled by the more traditional types of traders and agents (banians) engaged in the British firms. jute bailing and shipping was carried on. Amongst their religious ceremonies the most attractive and most wonderful ones are Holi. The females of their society had very little freedom. In the early 20th century the Calcutta-based Marwari community was divided into two groups. while with people outside their community they used Bangla. peddlers and cultivators were the subordinate instruments of big Marwari firms that financed them and collected their produce. One was highly orthodox in religion and largely pro-British and anti-nationalist. The exact number of Marwaris in Bengal districts and Calcutta is not known. Dealers. GD Birla. he was the head of the family and controlled the family business. Ramkishandas Sivadajal in Calcutta in 1847. Compared to other Hindu societies the females were confined to their homes and lagged behind in all aspects of education. Almost all the Jains who settled in Bengal were shvetambar.European and Marwari firms dominated the East Bengal jute trade with Calcutta as headquarters. The panchayat used to settle social and religious disputes and its decrees were binding on the part of the members. founder of the great House of Birla. The Marwaris of Bengal were bi-lingual. of the 74 balers on the rolls of the Jute Balers Association in Calcutta 49 were Marwaris. There were also independent jute traders. This firm dealt in jute. amongst themselves they used the Marwari dialect. Gulabchandji established another firm in Calcutta in the 1930s where a flourishing business in banking. It has been estimated that their number never reached above 200 thousand at any stage of their presence in Bengal. Influence of the local culture on the Marwaris is also evident. led the . nationalist group. This reformist group financially supported many Hindu reform movements. The Arya Samaj movement, for example, is said to have been entirely supported by the Marwari House of Ghanshyam Das. The support of the Marwaris to the Congress is well known. MK Gandhi and the Nehrus, who received donations and hospitality from them, are said to have influenced them to undertake humanitarian and social welfare activities. Consequently, a series of Marwari-backed schools and colleges were established in Calcutta and other towns in the 1920s and 1930s. The Marwari Relief Society played a significant role in relief operations during the Great Famine of 1943. In the 1940s the Marwaris of Calcutta set up a number of hospitals, vagrant homes and charity houses. Numerically the conservative Marwaris were in the majority and they controlled the Marwari Association and Marwari Chamber of Commerce, the two major institutions of the Marwari community in Bengal. Even GD Birla, backed by the Congress and Hindu elite, was unable to get elected as chairman of the Marwari Association in 1923. The Marwari nominee for the Central Legislative Assembly from Calcutta was Keshoram Poddar, a British-backed conservative. The dominance of the conservatives had one serious ill effect on the Hindu-Muslim relations. In the 1920s the conservative Marwari firms openly refused to maintain co-operative relations with the Muslims. The Marwari shopkeepers refused to sell goods to Muslim buyers. Marwari landlords refused to let their houses to Muslim tenants and Marwari traders replaced local Muslim dyers and tailors and weavers by Hindu upcountrymen. Muslim bandsmen, coachmen and shahises were also boycotted. In newspaper announcements it was urged that no good Marwari should keep Muslim employees in their establishments or have any business transactions with them, on religious grounds. Scholars believe that the Calcutta riot of 1926 was largely the outcome of such a communal outlook of the Marwaris. The depression of 1929-30 and Partition of India in 1947 caused an exodus of Marwaris from East Bengal, but quite a substantial number of them stayed back and continued their business, mainly in the cloth and jute trade. The communal riot of 1964 and the wars of 1965 and 1971 caused the departure of the community from Bangladesh. At present there are only 700 Marwaris living in Bangladesh; the Tularams of Narayanganj and Dugars of Dhaka are the most known. [Prodip Chand Dugar] What makes business communities special? The brave business communities went around the world in pursuit of ambition while the rest of us remained in our caste ghettos Mumbai’s Zaveri Bazaar is run largely by Gujarati traders How did the Marwaris come to Calcutta? Krishna Kumar Birla, in his autobiography Brushes With History, gives the story: “The business community was confined to Rajasthan till the sixteenth century. As Akbar’s Commander-in-Chief Man Singh, raja of Amber, conquered and subjugated distant areas of the country, the business community went with him to regions outside its homeland. In course of time it spread throughout the country.” I had not realized this before reading Birla’s book. Man Singh was from Shekhawati, the same area the Birlas were from, and was appointed governor of Bengal in 1594, staying for a dozen years. This means the Marwaris (our slang for all Rajasthani Baniyas, whether Mewari, Marwari or Shekhawati) have been in Bengal for 400 years. Birla says the three main trading communities of north India are Agarwals, Oswals and Maheshwaris. The Maheshwaris, of which the Birlas are a part, are the smallest group. Oswals are Jains, and Murshidabad’s infamous Jagat Sheth, who financed and probably masterminded Clive’s conquest of Bengal in 1757, was an Oswal. Birla says the Maheshwaris were descended from Kshatriyas who “decided to turn Vaishya”. This claim of martial ancestry is a common thread that runs through mercantile communities, including the Khatri/Kshatriya of Punjab and the Lohana of Gujarat and Sindh. The slim book Agrawalon ki Utpatti (Origins of Agrawals) says that these Baniyas descended from the Kshatriya ancestry of Raja Agrasen. Whatever their origin, Marwaris fitted nicely into the fabric of Calcutta, because Bengalis don’t have mercantile castes. How did the Gujaratis come to Bombay? B.R. Ambedkar wrote about this in his lovely 1948 essay, Maharashtra As a Linguistic Province. It was written in response to a resolution passed by the Indian Merchants Chamber demanding that Bombay be made an independent state, rather than a part of a future Maharashtra. Ambedkar noted of the IMC meeting that “with the exception of one Indian-Christian it was only attended by only Gujarati-speaking merchants and industrialists” (this should give pause to those who think Gujarati industrialists are right when they collectively endorse something or someone). Anyway, Ambedkar then tears into the Gujarati claim on Bombay by showing how they came to dominate the city in the first place. The fact is that the British imported Baniyas from Surat so that the new port of Bombay could take off (since Marathis don’t have mercantile castes either). The Gujaratis made demands of the British before they would agree, of which Ambedkar lists 10. They include: “Land in South Bombay free of rent to build a house or warehouse” (now you know why Gujjus are all over Malabar Hill, Colaba and Nepean Sea Road). “That no Englishman, Portuguese, or other Christian nor Muhammadan shall be permitted to live within their compound or offer to kill any living creature there.” “That in case there falls out any difference or suit in law between him or his vakil or attorneys or the Banias of his caste, and any other persons remaining on the island, the Governor or Deputy Governor shall not suffer him or them to be publicly arrested dishonoured or carried to prison, without first giving him due notice of the cause…” “That in case of war or any other danger which may succeed, he shall have a warehouse in the castle (today’s Fort area) to secure his goods, treasure, and family.” The right to carry an umbrella (presumably this added respect to the Baniya’s aura). The Parsis of Surat demanded free land for their Tower of Silence, which they also got from Gerald Aungier, Bombay’s second governor, in 1672. So this is why the Gujaratis dominate south Bombay, and their merit is only one aspect of it. Ambedkar’s essay put paid to any hope the shameless Gujarati merchants had of controlling Bombay. How did the Memons come to South Africa? We know that while he was only 23, Mahatma Gandhi was trusted with their disputes by Gujarati Muslims in Natal, but what were they doing there? In his book The Memons, Mihir Bose recounts the following story: “An Indian trader in Mauritius, Sheth Abubakar Amad, thought of opening a shop in Natal. The English in Natal had then no idea of what Indian traders were capable of.” Soon they found out. Then “the story of his prosperity reached Porbandar, his native place. Other Memons consequently reached Natal. Bohras from Surat followed them. These traders needed accountants and Hindu accountants from Gujarat accompanied them.” The reason that Pakistan has an economy at all is not because of its Punjabis, whose merchant castes were Hindu and Sikh and all left, but its Gujaratis in Karachi, Memons, Khojas and Bohras. What makes our business communities special and different from the rest of us? One is of course that they are brave and went around the world in pursuit of ambition while the rest of us remained in our caste ghettos. In his book India’s New Capitalists: Caste, Business And Industry in a Modern NationState, Harish Damodaran writes: “The common thread through all these communities—Hindu, Parsi, or Muslim—is their rigid rules of marriage and commensality and conservative social values...” Commensality is a relationship where one side benefits and the other neither benefits nor loses. An example is the lending of capital by Baniyas to one another at almost no interest. It is quite different from the idea we have of the “kanjoos Marwari”. PAISO LADHUM PATA TAAN Secret of Sindhi's Business Sense have risen to built empires. with a Sindhi present in over 200 countries all over . A typical Sindhi day starts early and goes till late into the fter day. just enough time for food and sleep. It is a common sight to encounter a Sindhi man or woman. west. month to month. By and large Sindhi businessmen maintain a friendly public relation enterprise. from Gujarat to Gandhidham. a lure of zeroes so deep. Moti Prakash put it. week in week out. in short what is the magic behind his millions? one mantra that a Sindhi chants day `n' night. amass wealth and power beyond . But a true Sindhi player can mysteriously smell future more accurately than any of the other business community. a Sindhwarki made far flying journeys to distant and difficult corners of the earth. a Sindhi enterprise is preferred by most communities simply its largeheartedness coupled with a humble approach to business associates. In addition to the ambitious adventurer. mendably. “Khak Mein a Wara Sindhi” (the Sindhis who can create gold from dust). As the saying goes. Something basic at the roots of a Sindhi culture is the belief that a good life e wallet. y. north. From nada. effortlessly. a Sindhi family preserves slogs for its money. daptability to strange environment is by now a proverbial fact. a sort of genetic programming to nd succeed. which comes in good stead in pioneering new far flung projects that seem to ope from the current moment's point of view. ece of economic wisdom that seems to have worked wonders for Sindhis is the fact of “low margins rolling”. no gain'.al human trait to think big to travel far in fantasy and reach for the stars. What exactly is the secret of a Sindhi's e factors that make him get what he wants. well known to possess a business acumen. A Sindhi believes in work hard play hard policy. A ‘Dhun' or ‘Junoon' is how one can describe this hard each somewhere. There seems to be an indelible imprint on a Sindhi psyche. a Sindhi businessman is d with a far sightedness. some one hi businessman scolds with a smile. “Paiso Ladhum Pata Taan” . “Paise Bina Prasad. or talent or genius to see other can see a sapling. a set of principles around the business of earning money. beautifully. So its. to achieve the goal and have the best of both the worlds. or competition is high. that their heart goes boom g a lucrative proposal. their minds start racing at the mention of a good deal. That's the reason a Sindhi beggar arity. Another strictly adhered rule is to have clean and honest exchanges without resorting to ortcuts. As Dr. at ease with language and dealings of most major societies all over the ng ambition of a Sindhi makes him go and explore the moolah wherever it happens to be available. This important psychic trait of adaptability has made a satile and global citizen. needs to be appreciated and valued. This ever friendly style of doing business comes in good stead usiness is low. with only a small Daryashah Uderolal. for years and years together. “Paiso Kamayum Mahhat Saan” as song that says. traveling in hardships ine. This blessing. “Jhulelal. A Sindhi has traveled to the length and he entire globe and commendably has been successful in all environments basically because he he mysterious talent for integrating and adapting himself to any and every cultural situation. His age old greeting. History is replate with here ordinary human beings. Theirs is a strong deep in the value of wealth. Haroo Na De Hath Mein” . Sindhis have a special relationship to riches. Beda Paar”. and a Sindhi wealth is a phenomenal fact to reckon with. south a Sindhi takes on the colours of any makes them his own. (you don't even get ngs without funds). springs from a Sindhi's ross seven continents. Sindhis are truly a world community. a sort of dare devil s in the motto of ‘no risk. east. This ambition naturally makes him a willing taker of risks. That is the mystery of Sindhi money. the ose for him. a Sindhi would always go out of his way to lend a helping hand for dhi. bigger and better ecret of a successful Sindhi business venture is not so mysterious. and so a Sindhi empire. hand in hand. Ta Puta Pota Khave”. progressive and free thinking life contacts in high places of business and government. done that. once created goes on and on to create similar. . a Sindhi has been there. “Jo Vanje Jaave. overb says. A Sindhi never says die. even an ordinary Sindhi back home stands a e to be picked up for a right opportunity and offered an international life style. its all these above facts that make a Sindhi coon an admired.his fact alone makes the Sindhi community available to modern. a true Sindhi businessman knows no limits to expansion and growth. or it is not as if a Sindhi is more or te with lady luck hovering around him all the time. respectable and welcomed wherever he happens to walk by. So Phir Na Aave. From marrying a Mangol in Malaysia to attending a Church o playing Garba in Gujarat and dancing in Durga Puja in Bengal. Je Aave. thereby sailing together. se. Since Sindhis have a ut community fellow feeling.