i

BUILT TO LEAD

(Leadership Development at Bhadrachalamby K.L. Chugh, Chairman Emeritus, ITC Ltd.)

Dr. V. BarlaBhadrachalam Silvers Group

ISO 9001:2015 CERTIFIED

(ii)

© Author

No part of this publication may be reproduced, stored in a retrieval system, ortransmitted in any form or by any means, electronic, mechanical, photocopying,recording and/or otherwise without the prior written permission of the author andthe publisher.

First Edition : 2020

Published by : Mrs. Meena Pandey for Himalaya Publishing House Pvt. Ltd.,

“Ramdoot”, Dr. Bhalerao Marg, Girgaon, Mumbai - 400 004.Phone: 022-23860170, 23863863; Fax: 022-23877178E-mail: himpub@bharatmail.co.in ; Website: www.himpub.com

Branch Offices :

New Delhi : “Pooja Apartments”, 4-B, Murari Lal Street, Ansari Road, DaryaGanj, New Delhi - 110 002. Phone: 011-23270392, 23278631;Fax: 011-23256286

Nagpur : Kundanlal Chandak Industrial Estate, Ghat Road,Nagpur - 440 018. Phone: 0712-2721215, 3296733;Telefax: 0712-2721216

Bengaluru : Plot No. 91-33, 2nd Main Road, Seshadripuram, BehindNataraja Theatre, Bengaluru - 560 020. Phone: 080-41138821;Mobile: 09379847017, 09379847005

Hyderabad : No. 3-4-184, Lingampally, Besides Raghavendra SwamyMatham, Kachiguda, Hyderabad - 500 027.Phone: 040-27560041, 27550139

Chennai : New No. 48/2, Old No. 28/2, Ground Floor, Sarangapani Street,T. Nagar, Chennai - 600 017. Mobile: 09380460419

Pune : “Laksha” Apartment, First Floor, No. 527, Mehunpura,Shaniwarpeth (Near Prabhat Theatre), Pune - 411 030.Phone: 020-24496323, 24496333; Mobile: 09370579333

Lucknow : House No. 731, Shekhupura Colony, Near B.D. ConventSchool, Aliganj, Lucknow - 226 022. Phone: 0522-4012353;Mobile: 09307501549

Ahmedabad : 114, “SHAIL”, 1st Floor, Opp. Madhu Sudan House, C.G. Road,Navrang Pura, Ahmedabad - 380 009. Phone: 079-26560126;Mobile: 09377088847

Ernakulam : 39/176 (New No. 60/251), 1st Floor, Karikkamuri Road,Ernakulam, Kochi - 682 011. Phone: 0484-2378012, 2378016;Mobile: 09387122121

Cuttack : New LIC Colony, Behind Kamala Mandap, Badambadi,Cuttack - 753 012, Odisha. Mobile.: 9338746007

Kolkata : 108/4, Beliaghata Main Road, Near ID Hospital, Opp. SBI Bank,Kolkata - 700 010. Phone: 033-32449649;Mobile: 07439040301

DTP by : Pravin Kharche/Priyanka M.

Printed by : SAP Print Solutions Pvt. Ltd., Mumbai. On behalf of HPH.

(iii)

Lord Rama – The Creator of our Mills

(v)

Our Mills – ITC Pspd Sarapaka (Burgumpad)

(vii)

DEDICATION

This book is dedicated to Mr. K.L. Chugh andMrs. Kamal Chugh who have developedscores of young people from ordinary workinghands to extraordinary leaders. Their life andmission is an ever inspiring fountain forfuture generations of leaders.

Dr. V. Barla

Bhadrachalam Silvers Group

(ix)

FOREWORD

On reading the book “Built to Lead” writtenby Dr. V. Barla with Bhadrachalam Silvers, Ifind that this is much more than a book onLeadership. It is indeed a work thatbeautifully illustrates powerful themes. First,it is an insight into how new companies cangain a foothold in the competitive industryand attain leadership status. Second, it is abook on how people from humble

backgrounds can move up in their careers.

Further, this book is about how leadership development from thegrassroots helps to build great organizations. The field experience ofMr. Chugh and his team in handling planning, organizing, staffing,controlling and reviewing as management functions and division oflabour, delegation, motivation, career development, etc. asmanagement tools have been demonstrated using the case studies ofwhat exactly shaped the establishment of Bhadrachalam PaperboardsLtd. (BPL). The saga of establishing BPL in the backward tribal areaof Burgumpad, Khammam District of the erstwhile State of AndhraPradesh started with the land acquisition by involvement of theDistrict Collector of Khammam District who boldly decided to give700 acres of land. The process of this land acquisition, described as afascinating story by the author, is a wonderful lesson for managementstudents and business leaders.

Then came the phase of manpower development. Mr. Chugh broughta few engineers from IITs and other good institutions to be trained asfuture leaders. The training and case studies of these managers andengineers, who became CEOs of companies including BPL itself, isanother absorbing section in the book which lends to newer learning.Learning also occurred in the backward areas in and aroundBhadrachalam. After skill development, the local people were

(x)

engaged with work. Besides these, farmers also were also involved inplantation on barren lands on a massive scale. This generated incomewhich they never had initially expected. It, therefore, became a majorinitiative in the country and was appreciated by awards and rewardsfrom the Ministry of Environment and Forests, Government of India.The method of dual employment and environment developmentbrought fortunes to the local people. This is surely a takeaway fromsuccessful model for industrial houses as well as the government toemulate from the experiences of BPL.

On business development front, the book deals with finer nuances ofhow markets were developed in India and abroad despite themany hurdles in the tribal areas. The biggest contribution of BPL wasin terms of bringing professionalism into a market hitherto dominatedby unprofessional practices and underhand dealings. Professionaldevelopment for young managers can be drawn from this section ofthe book. It details in depth about business ethics and personaltransformation.

The other areas of development like pollution control, technologydevelopment, safety and campus school are also discussed toenlighten the readers. Pollution control naturally is on the agenda ofevery new venture but many are struggling to manage the pollutionrelated problems. The experience of BPL in combating pollution in achemical industry like paper manufacturing is a must-read lessonwhich cannot be glossed over. The company got several awards fromthe Government of India for their efforts in pollution control.Technology development is yet another area that BPL has awonderful experience to offer. The company implemented latesttechnologies which were unknown to the paper industry in India.Processes such as Oxygen Bleaching and Ozone Bleaching wereintroduced, and the process of acquiring such newer technologies is agood lesson for the new age leaders of the 21st century.

Another noteworthy feature of the book is the way BPL followed theILO norms of safety right from the beginning which is rare in manyindustries in India or in developing countries. Though the return oninvestment is not directly visible in putting the safety practices inplace, BPL took lead and trained all the workmen and officers bysending them to training courses in India and abroad. This is a greatmodel to emulate by human resource leaders of present generation.The book also deals with development of Campus School andSwachh Village Movement by Bhadrachalam Mahila Samithi lead by

(xi)

Mrs. Kamal Chugh which gave indirect support to the establishmentof BPL and its productivity movement, winning national productivityawards thrice in succession, besides many other international awards.

Overall, the book is a must-read for college students and businessleaders engaged in project management and leadership development.It is written in simple business language to facilitate ease whilereading to sustain the attention of the readers.

I congratulate Dr. V. Barla and his fellow-silvers for their wonderfulwork and making their learnings and experiences public in the formof this book.

Prof. Sandeep Sancheti

Vice Chancellor, SRMIST, Kattankulathur, Tamil Nadu &Former President, Association of Indian Universities, New Delhi.

(xiii)

SPECIAL HONOURS

गुरुॄर्ह्मागुरुिवर्ंणुगुर्रुदेर्वोमहेश्वरःAगुरुसाक्षातपरॄह्मा तःमैौीगुरवेनमःAA1AA

Guru is Brahma, Vishnu and Maheshwara! Guru is supremeconsciousness; thus salutations to sacred teacher (AdiShankaracharya).

THE FOUR EARS OF ITC

1969-1983 1983-1991

AJIT NARAIN HAKSAR JAGDISH NARAIN SAPRU■ Led ITC into hotels and paperboards.■ BAT divested to bring down equity

holdings to below 40 per cent as perregulatory requirements.

■ Added agri-business. Launched ‘Sundrop’brand.

■ Amalgamated Tribeni Tissues with thecompany.

1991-1995 1995-2019

KRISHAN LAL CHUGH YOGESH CHANDER DEVESHWAR■ Diversified into information technology

(ITC Infotech) and Finance (ITC ClassicFinance).

■ Started an asset management company tofloat a mutual fund.

■ Encouraged exports.■ ITC became a star trading house under

him.

■ Led the big push into FMCG streams –foods, personal care, lifestyle retailing.

■ Amalgamated ITC Classic Finance intoICICI and divested edible oil and seedsbusiness.

■ De-listed hotel business.■ Started e-choupal for farmers.

Source: http://www.forbesindia.com/article/boardroom/the-itc-kings-gambit/14562/1

(xiv)

SCOPE AND LIMITATIONS OFTHE BOOK

This book is neither about ITC Ltd. nor about ITC PSPD (BPL).It is about the emergence of world-class leaders at BPL under thestewardship of Mr. K.L. Chugh with a unique philosophy right fromthe project design stage. This is also a biography of KLC as Iwitnessed, in my modest understanding, during my working in thisgreat organization, BPL, as also thereafter from my kith and kinworking at the Mills and as a native of Burgumpad and Bhadrachalamzone where this plant is located. It is all about those events that weredocumented during the period of establishing ITC BPL and thereafter,to the extent, data is available and what several people described withtheir experiences during my study of the company background. I’msure the undocumented and unavailable data is much more that putslimitations on the book-scope, though the captured value is beyondour expectations.

During my study of the data archives on the topic and interviewswith learned people, the respondents have suggested to make it usefulto the entrepreneurs and academic scholars. Thus, we have picked upthe relevant material for inclusion in the book. Therefore, the readersmight find something not covered or left out in the book. Suchmaterial will be considered on merits for inclusion in the next volume,as we see it as an evolving document to the extent the company isevolving year after year. Hence, the purpose of this book, as of nowin the first edition, is to serve as an “Entrepreneurial LeadershipGuide” to the young leaders, academics and entrepreneurs, using theexamples drawn from ITC BPL saga championed by Mr. K.L. Chughand colleagues. There have been many other extraordinary peoplewho contributed vastly to the organization especially from theboardrooms of ITC, the parent company. We have apologetically nottouched upon their roles in this venture to keep our focus on thatvariety of leadership Mr. Chugh and his colleagues provided to theproject, which makes this book so special.

In this edition, we have also not been able to cover the perceived,national or international, roadblocks and legal issues Mr. Chugh mayhave overcome in ascending the corporate ladder. We are constrainedto delist those rough edges, putting another limitation on the scope ofthis book.

(xv)

Case studies and illustrations with theoretical backdrops havebeen picked up from the open sources which are not under copyright.This has added a silver-lining to the scope and originality of suchmaterial and we have considered it as a privilege to honour suchauthors by picking on their work, though in tit-bits, in this volume.The essential purpose is to bring the special knowledge to use.

Since our scriptures say, Vidya viniyogadvikasaha (Knowledgeshines when utilized).

I am confident that my readers will appreciate the aforesaidlimitations.

Dr. V. Barla

(xvii)

PREFACESilver and Gold are the most coveted possessions in a household.

In this Biography and Entrepreneurial Leadership Book, and themaking of ITC Bhadrachalam Paperboards Ltd., Silvers are thepeople whom Mr. K.L. Chugh (KLC) developed as a part ofestablishing ITC BPL (now christened – ITC PSPD – Paperboardsand Specialty Papers Division), which celebrated its silver jubileeyear during 2004-05 and now heading towards Golden Jubilee in2029. They are the Golds for the Chughs. Their association andexperience in building Bhadrachalam under the stewardship of KLCare captured in this book to showcase the practice of EntrepreneurialLeadership in building this great enterprise as India’s largestmanufacturers of Paperboards and Specialty papers.

Building Bhadrachalam has another connotation. The templetown of Bhadrachalam, the abode of Sri Seetha Ramanjaneya Swamy,was a small village on the eastern side of river Godavari while ITCPSPD is situated on the western banks of Godavari way back in 1975-76. Now, with the establishment of this company, the whole region ofBhadrachalam, Burgumpad, Sarapaka and all the adjoining 20villages, attained economic upliftment, from utter poverty to middle-class status and above, with creation of huge employmentopportunities and livelihood for people in this region, besidesenormous contribution to the Government exchequer by way of taxesand duties. They have indeed become proud owners of Silvers andGolds, thanks to ITC PSPD. The whole region of Bhadrachalam hasseen socio-economic upliftment with trained and empowered localsand non-locals, experts and other staff.

The author of this book is a native of Burgumpad where ITCBPL is established. As one of the proud Silvers, an ex-employee ofthis enterprise, with my lifetime association with this region and withITC PSPD Silvers group, I venture to dig deep into what makes thiscompany so great as an Entrepreneurial Leadership saga, in writingthis book.

This book is about Entrepreneurship and Leadershipdevelopment practiced, beyond books, during the annals of the BPLunder the leadership of KLC. Hailed as one of the most successfuland fastest paper projects in the world, BPL has many lessons to offerto the younger generation. Such lessons are brought out succinctly in

(xviii)

various chapters in this book through appropriate live examples andexciting case studies for the discerning minds. These case studies alsohighlight the Social Work and Corporate Social Responsibility (CSR)projects that went hand-in-hand with BPL saga which is so uniqueand worth understanding.

Another interesting feature of this book is the exemplary workdone under the stewardship of Mrs. Kamal Chugh, be it TheBhadrachalam Mahila Samithi works, The BPL School or The DivyaChaya Trust and other welfare organizations whose contributionsadded a silver lining to the Farm Forestry, Social Forestry andmassive plantation schemes undertaken by the company under theleadership of KLC – the real CSR work – when the corporate worldin India seldom thought of CSR except a few. This demonstrated thata company, like a fish, has to thrive in the waters around it. Thus,BPL envisioned socio-economic well-being and social upliftment,skill development and empowerment of people and its environment asits basic responsibility besides its business.

Some of the interesting features of Bhadrachalam PaperboardsLtd. (BPL) include the following:

1. The BPL Project – Design, commissioning, erection –people, events, vendors and contractors – EntrepreneurialLeadership lessons.

The uniqueness of BPL project is the way in which corecompetence was embedded into every aspect of the projectway back in 1975 by its leaders, while core competencyconcept was propagated only later in 1990 by C.K. Prahaladand Gary Hamel as “a harmonized combination of multipleresources and skills that distinguish a firm in themarketplace”, and therefore, are the foundation ofcompanies’ competitiveness. This chapter describes the corecompetency fundamentals in its every line through whatwas physically established. A must read.

2. Forest management, plantations, raw materialarrangements for BPL and policy of the Government.

“Man is inseparable from his environment” and “businessis as safe as its environment”.

The traditional paper industry adage is “He who has fibrecontrols the industry”.

(xix)

BPL’s bold move to source its raw materials from farmersby getting them to grow eucalyptus/casuarinas met withmuch resistance. Between 1982 and 1989, the companycould get Eucalyptus/Casuarinas and Subabul plantationsgoing on only about 2,000 hectares. Nevertheless, BPL stillsaw an opportunity. It was aware that people in the regionwere looking for alternative crops that would be pest andflood resistant, offer better income and require less lookingafter – the region had a large share of absentee landlordsand wastelands. It believed an improved eucalyptus cropcould meet these needs. What followed was a greenrevolution and environmental resurrection, in millions ofhectares of land by Chugh’s team much like the whiterevolution of Kurien. An absorbing story.

That takes us to the next part of the book – LeadershipDevelopment in Commercial and Marketing.

3. Creation of HR, Marketing, Commercial, Accounts andPurchase/Finance Departments.

Evolution of funding pattern and funding agencies, banksand financial institutions, and capital markets of BPL –Liaison and PR. How Government departments, localpeople, interest groups, strikes and political forces weremanaged for good with case studies – Management ofvendors, machinery suppliers, international agencies,contractors and implementation of contracts – Real-timeproblems and solutions with examples. These chapters aptlyprovide the readers many lessons as to how the overallsuccess accrued when the leader planed technical andcommercial together to scintillate the external and internalstakeholders.

And then the memoirs.

4. The potpourri of memoirs and experiences.

Of people who worked closely with Mr. K.L. Chugh withcase studies and photographs. Emotions pour out. Peoplecry out of happiness of working with KLC as he leavesMills and Hyderabad Office to take over as Chairman ofITC at Calcutta. The charismatic leader made all thedifference when he made everyone around him a leader. Atrue leadership lesson for many business families who

(xx)

believe in ― me all ― or aham brahmasmi attitude. Buthow one develops leaders is what comes out from thismotion and emotion filled section as we read through. Thestories narrated by the legends – Pradeep Dhobale, K.L.Narasimhan, Padmanabha, B. Shetty among others – areheart touching indeed!

Further, write-ups on people who made biggest impact inmaking of BPL —

A leader is the one who makes many other leaders ― is what welearn as we read this chapter. Many leaders of BPL write about theirsuccess stories in respective departments and corporate roles in thischapter that makes a summary of the basic intent of this book. Andhow such success saga could have been otherwise but for theeffective leadership. 21st Century Leadership is a multidimensionaland integrative view of leadership that is based in relationships.Through shared purposes and aspirations, leadership brings forwardnew ways of being, knowing and doing, while respecting thedevelopmental nature of the human life. 21st Century Leadership isoriented towards being inclusive, collaborative, and of service, toindividuals, the social good and ecological sustainability.

In the traditional corporate model, strong leaders pursued asingular vision through the strong command of an organization.Today, we live in a time of rapid change, when products and servicesoften become obsolete overnight, and competition includes startupsand companies in adjacent industries — the traditional leadershiparchetypes need not apply. Instead an entirely new value system isbeginning to emerge for the leaders of the future, one that willcontinue to grow with the rise of new tools like Artificial Intelligence,Augmented Reality, Block Chain Technologies, Robotics andAutomation – all meant for human welfare and right conduct – opinesMr. Chugh who believes in the hymn: Brihadaranyaka Upanishad(1.3.28).

The book also covers Family life of Mr. K.L. Chugh –

“Happy family – happy work-life and vice versa” is proven inthe narratives of Chugh’s Couple, an ideal couple who gave awonderful, practical and trustworthy meaning to “work-life balance”– a fine balance that an individual needs between time allocated forwork and other aspects of life. Areas of life other than work-life canbe, but not limited to personal interests, family and social or leisure

(xxi)

activities because they made the whole BPL as a single greater family.This is an important lesson in this era where many business housesare breaking away and getting weaker. That is the personality of thiswonder-couple.

Awards won by BPL is another interesting section.

Winning awards is a habit for KLC team. Every time an award iswon, the team feels “We are candidly rejoicing the moment and arecelebrating the honour accredited to us. However, this award hasentrusted us with a responsibility of raising the standard and repute ofbusiness with our defect-free practices in our each endeavour and byconstructing a flawless establishment which will be at par with theinternational standards and national policies”. This lesson that“awards is responsibility” helps to get more award any time and everytime to this team.

Dr. V. Barla

(xxii)

ACKNOWLEDGEMENTSITC Bhadrachalam Paperboards Ltd. is the lifeline of The

Temple-town Bhadrachalam, Burgumpad, Sarapaka and adjoiningareas that were once poverty-stricken hamlets but were transformedinto clusters of economic prosperity with the setting up of thiscompany in this belt. Thanks to the management of ITC that cameforward to establish this venture at a time when no other businesshouses in India thought of it and responded to the call from the thenChief Minister of Andhra Pradesh, Shri Jalagam Vengala Raosupported by the famous civil servant of Khammam district,Mr. P.V.R.K. Prasad IAS in 1975-76 and Revenue Officer like ShriSangisetty Vijaya Rao, Tahsildar, Burgumpad are always in the heartsof the people. We bow our heads to them in reverence.

ITC doyens M/s. Ajith N. Haksar, J.N. Sapru, Samir Ghosh andRamesh Sarin, K.L. Chugh, P.B. Capoor and many engineers andmanagers have envisioned the setting up of this venture to utilize andconserve the natural resources of this region, and to make it a “rags toriches” story of that local people. Their vision and foresight wereunparalleled. They had burnt their midnight oil for the project. Kudos,Pranams and hats-off to them!

On the personal score, I owe a lot to Mr. K.L. Chugh andMr. P.H. Rao who brought me into ITC BPL way back in 1982 whenthey became aware that I’m a native of Burgumpad and educatedfrom REC Warangal and IIM Ahmedabad. Mr. Chugh had the visionto foresee that a local person can inspire many others like a chainreaction to develop the local economy. The period that I worked inITC BPL was the golden period in my life where I learnt enormouslyfrom M/s. – P.B. Capoor, R.P. Agarwal (Late), M.M. Shukla, K.L.Narasimhan, R. Sheopuri, P. Shankar Rao, George Thomas, Joga Rao,Venkatraman, N.V.H. Namassivayya (Late), R.C. Sharma. IllangoVishwanathan, Venkata Raman, Christina Roberts, Eshwar Reddy,Madhusudan and many other colleagues – I’m ever indebted to them.Big thanks to every one of them wherever they are.

The idea of writing this book was only a hallucination in mymind until I met Mrs. Kamal Chugh and Mr. K.L. Chugh on 16thSeptember, 2018 in a get-together of the ex-employees (The groupnamed Bhadrachalam Silvers by the silvers located at Hyderabad tocelebrate the silver jubilee of ITC BPL). Mr. Chugh welcomed the

(xxiii)

proposition and asked me to go ahead. Then I discussed with him thatI intend to write his biography as the biography of ITC-BPL. Mrs.Kamal Chugh appreciated the idea and provided notes, souvenirs andphotographs from Delhi which tells volumes about the story of thiscompany. Their blessings, unstinted cooperation and support madethis venture possible. I’m indeed grateful to both of them.

My guiding forces – Mrs. Kamal Chugh, P.H. Rao, M.V.S.Murthy, D.R. Rao, Tata Rao, Tata Reddy, K.K. Anand, Kannababu,Kulkarni, V.R.P. Rao, D.V. Raju, Kanchan Rao, Pradeep Dhobale,Sanjay Singh, Sethu Nambiar, Manjith Singh, Ayyappan Nair, S.L.Sadani, Raghavan, Rakesh Chopra, S.R. Tulasi, Swaroop and manyothers have been the guiding force for this venture. My heartfeltthanks to all of them.

Senior Silvers of BPL, P.B. Capoor, B.G. Shetty, A. Padmanabhaand many others have been a source of inspiration which I can’tforget ever. I’m grateful to them all.

Guidance by Mr. K.L. Narasimhan (KLN), my first guru in BPL1982 on, was indeed meticulous and unparalleled. He madewonderful suggestions and modifications to the text that wereappreciated by the publishers besides my own admiration. I’m indeedgrateful to KLN (Lakshmi).

My friends and well-wishers in research field, Dr. D.V.G.Krishna, Dr. Sailendra Saxena, Dr. Vidyadhar Reddy, Dr. V. Sekhar,Dr. Krishna Reddy, Dr. Chandramohan, Dr. A.V. Rao, Dr. I. Gopinath,Dr. V.G. Chari, Dr. Muralidhara Prasad, Dr. P.V. Rao, Dr. RajkumarBidlan and many others – whom I owe my research career andwriting habit.– I’m grateful to them forever.

My schoolmates Vishnu, Lukesh, Janardhan, Anantham, mybrothers Barla Tirupathi, Barla Venkanna and Dr. Barla Kiran Kumarwere constant source of love and affection in my life. I owe a lot tothem.

Alumni of IIM Ahmedabad and NIT Warangal have indeedbettered my life – my teachers at NITW, IIMA and Law CollegeDr. Vijayalaxmi, Ms. Nalini, Mr. Sripad Harnoor, RadhakrishnamurthyGaru, Prof. Basha and Prof. Vasantha Rao — all who added LL.B.flavour to my profile, without which writing large volumes of textwould not have been possible – I’m ever indebted to them.

(xxiv)

Several authors and writers acknowledged in the Bibliography,whose uncopyrighted material is taken from the open source, deserveour appreciation and gratefulness. We are ever indebted to them fortheir excellent documented sources of relevant material.

My family members – Vijaya, Ushaswini, Abhishek and mydaughter-in-law Akshaya have been able to bear with my timelessand tireless working, and my special affectionate acknowledgementto them.

Finally, to the Almighty God who has guided me, guarded meand instructed me during my personal prayers with all his blessingsand a bit more than his choicest ones, though I do not consider myselfas any deserving for all this grace ever.

Sarve jana sukhino bhvanthu (May all the people be in peace andhappiness).

I remain in my prayers!

Dr. V. Barla

(xxv)

CONTENTS

Foreword (ix)

Special Honours (xiii)

Scope and Limitations (xiv)

Preface (xvii)

Acknowledgements (xxii)

Chapter 1: K.L. Chugh – Leadership Development atBPL

1 – 19

Chapter 2: Mrs. Kamal Chugh – Leadership in MahilaSamithi

20 – 34

Chapter 3: Childhood Impact on Later Life – K.L.Chugh: A Comparative Study of EarlyChildhood and Impact on Later Life

35 – 45

Chapter 4: Leadership Development in BPL – The Caseof a Slumdog Millionaire from BurgumpadVillage

46 – 49

Chapter 5: BPL – The Origins 50 – 62

Chapter 6: Leadership Development at Mills – TheBeginning of Production at BPL

63 – 79

Chapter 7: Leadership Development in SafetyEngineering – BPL

80 – 89

Chapter 8: Leadership Development in Forestry andPlantations at BPL

90 – 105

Chapter 9: Leadership Development in Marketing atBPL

106 – 127

Chapter 10: Leadership Development in Finance,Accounts and Investment at BPL

128 – 132

Chapter 11: Leadership Development Concepts inPractice at BPL

133 – 141

Chapter 12: Memoirs of BPL Leaders 142 – 187

Chapter 13: Leadership Development Reflected inAwards and Honours

188 – 206

Chapter 14: The Future 207 – 211

Annexures and Exhibits 212 – 216

Bibliography 217 – 219

Chapter 1

K.L. Chugh – LeadershipDevelopment at BPL

Leadership Development at Bhadrachalam Paperboards Ltd.(BPL) began with the induction of Mr. K.L. Chugh as the BPLProject In-charge from ITC in the year 1975. His life and mission isan inspiring story to begin with, for the youth who are willing to takeup the challenges and grow as the future leaders.

K.L. Chugh’s Life and Mission – The Role Model for Young Leaders

K.L. Chugh is the Chairman Emeritus of ITC Ltd. He wasChairman of the ITC Group from November 1991 to December 1995.On his retirement, he was honoured with the title of ChairmanEmeritus – ITC. Prior to joining ITC in 1971, Mr. Chugh – aMechanical Engineer from Delhi University – worked for 10 yearswith India’s largest engineering enterprise, the Heavy EngineeringCorporation, a public sector organization based in Ranchi. Mr. Chughachieved valuable experience in heavy industry and large projects.

Mr. Chugh was instrumental in setting up of ITC BhadrachalamPaperboards Ltd. in the tribal area of Andhra Pradesh. Leading ayoung team, Mr. Chugh implemented this large project in record timewith no cost overruns. The company has since received numerousawards in recognition of its excellent working and has grown to

Built to Lead2

become India’s largest company. Mr. Chugh has authored ClonalPlantation Technology in Bhadrachalam – which helped spur therapid growth of the Indian paper industry. In 1989, Mr. Chugh cameback to ITC as Vice-Chairman and took over as Chairman in 1991.During his stewardship, ITC became one of the India’s leadingprivate sector corporations in turnover, profit and marketcapitalization, the country’s largest exporter and a prestigious SuperStar Trading House. During Mr. Chugh’s tenure of four years asChairman, ITC grew more than two-fold in turnover and almost fourtimes in profit. For two consecutive years, ITC was India’s No. 1Company based on a number of criteria – growth, profit, return toshareholders and market capitalization. In the early days of economicliberalization, Mr. Chugh re-engineered ITC to grow as India’sleading multinational company. He was the first Indian CEO to talkabout ‘Creating India’s Multinationals’ and encouraging globalcompetitiveness.

Mr. Chugh was appointed as a Director on the Central Board ofReserve Bank of India, Shipping Credit and Investment Company ofIndia Ltd., Tourism Finance Corporation of India and NationalHousing Bank of India; Member of Board of Governors, NationalCouncil of Applied Economic Research; IIM, Kolkata;Administrative Staff College of India and President, AIMA.Mr. Chugh was elected as the financial world’s International 1994CEO of the Year Asia and in 1993 was adjudged amongst the Top 2Best Indian Chief Executives. He was elected as one of five ‘TobaccoMen of the Year’ by the World Tobacco International, USA and theMost Distinguished Alumni of the Delhi College of Engineering.

He guided many institutions as : Chairman of Gati Ltd., Directorof Sandhar Auto Industries, Urban Mass Transit Co., Fozal SmallHydro Power and Spice Telecom and Member of Board of Governorsof the Indian Institute of Management, Bengaluru and PopulationFoundation of India.

Mr. Chugh’s current interests are management consulting,renewable energy and education.

Prior to joining ITC, Mr. Chugh was amongst the first 10 youngEngineers to join and worked for 10 years with India’s largestEngineering Enterprise, the Public Sector Heavy EngineeringCorporation, Ranchi, Bihar. During this period, he experienced thechallenges of building a Mega Project.

K.L. Chugh – Leadership Development at BPL 3

The company received National Productivity Awards for threeconsecutive years 1982, 1983 and 1984, and a special Award in 1986at the hands of Honourable President of India. Today, ITCBhadrachalam is the largest paperboard mill in India and amongst thetop 10 in the world.

Plantation Plans and Awards from President of IndiaHis Excellency Abdul Kalam

Corporate Excellence Awards through the Hands of President andPrime Minister

Mr. Chugh was Member Board of Governors, AdministrativeStaff College Hyderabad, Academy for Excellence in ManagementEducation Madras and Indian Institute of Management Kolkata. As aChairman, Assocham Knowledge Millennium Council, he helpedposition Assocham as the “Knowledge Chamber of India”. He wasPresident of All India Management Association during 1993-94. Hehas been member Board of Governors of IIM Bangalore for 10 yearstill May 2016.

He is presently Chairman Emeritus, ITC; Chairman, Gati Ltd.;Chairman, Cosmos Consulting; Member Board of Directors ofSandhar Auto Group; Population Foundation of India from 1998 to

Built to Lead4

September 2018; Member Board of Directors, Kiwani Club, NewDelhi; Member Advisory Council of Institute of Directors – IOD; andMember, Board of Management India Energy Forum. In 1992, duringhis annual speech as Chairman, ITC, Mr. Chugh was the first IndianCEO to beckon emergence of India’s multinationals, powered byknowledge, leadership and endowed by India Spiritual Capital.

Accolades from Ms. Shiela Dixit and Pt. Ravi Shankar

National and International Awards and Honours received by K.L. Chugh

Honours andAwards

AwardingOrganization

Year ofAward

Honourary Fellowship, in recognitionof his outstanding leadership, visionand managerial achievements in Indianand international business

AIMA, Bombay 1992

One of the Two ‘Best Indian ChiefExecutives’

Media Poll 1993

International CEO of the Year – Asia Financial World 1994National Award for OutstandingContribution to HRD

National HRDNetwork

994

Honoured in recognition of hisextraordinary efforts to achieve thehighest standards in his special areas ofwork in the field of business andindustry

GiantsInternational,Bombay

1994

Honourary Fellowship, in recognitionof his outstanding leadership, visionand managerial achievements

AIMA 2002

Distinguished Alumnus Award DelhiTechnologicalUniversity

2002

K.L. Chugh – Leadership Development at BPL 5

Award presented for his outstandingachievements in the field ofmanagement, human resourcesdevelopment, business and industry,and also for his involvements witheducation and green energy movement

World BusinessForum, Inc., 3rdMay, New York

2003

On the occasion of its Golden JubileeYear, AIMA honoured Mr. Chugh forhis eminent contribution tomanagement in India

All IndiaManagementAssociation

2007

Udyog Ratan Award for valuablecontribution in the field of industry

Delhi TeleguAcademy

2007

Global Alumni Excellence Award forbringing glory to his almameter andpride to the nation by his exemplarycontributions to engineering andtechnology profession at GLOBALALUMNI CONCLAVE – 7th to 8thJanuary.

DelhiTechnologicalUniversity

2012

“Token of gratitude for the immenselifelong contribution to the EnergyForum. We cannot thank you enoughfor having imparted your pricelessdistilled wisdom and sincerely lookforward to your continued guidance.”

India EnergyForum

2018

Mr. Chugh’s current interests include renewable energy,strategic business advisory, philanthropy and population issues facingthe nation.

Mr. Chugh received honours and awards from Prime Ministers,Presidents, Industry Bodies, Ministries, world-class leaders indifferent fields and other National and International bodies, as shownin the following pictures.

A very inspiring saga indeed!

Built to Lead6

K.L. CHUGH HONOURS AND AWARDS

Hon’ble Prime Minister Shri Narendra Modi – Greets K.L. Chugh

Hon’ble Prime Minister of India Mr. Manmohan Singh –Greets Mr. K.L. Chugh

K.L. Chugh – Leadership Development at BPL 7

The President of India Mr. Abdul Kalam – Greets Mr. K.L. Chugh

Mr. K.L. Chugh Shares Dais withAbdul Kalam, M.M. Joshi and R.K. Somani

at Knowledge Millennium – III

Built to Lead8

K.C. Panth and K.L. Chugh at Agri-Biotechnology Council

P.V. Narasimha Rao – Greets K.L. Chugh