Business Mahajas - best selling book

7/31/2019 Business Mahajas - best selling book

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DHIRAJLAL HIRACHAND AMBANI

SABKA

SAPNA

MERA

APNA


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Hirachand Ambani was a village school teacher with less income given to him.

Hirachand and Jamnaben had two daughters - Trilochanaben and Jasuben and

three sons - Ramnikbhai, Dhirubhai and Natubhai. Dhirubhai was the second

son.

Dhirubhai was precocious and highly intelligent. He was also highly impatient

of the oppressive grinding mill of the school classroom.

He chose work which used his physical ability to the maximum rather thancramming school lessons.

Why do you keep screaming for money? I will make heaps of money one day"

EARLY LIFE


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I need your money. The family needs it. You must work now. Ramnikbhai

has arranged a job for you in Aden. You go there.

On reaching Aden, Dhirubhai joined office on the very day of his arrival. It

was a clerk's job.

Those days Aden was the second busiest trading and oil bunkering port in

the world after London handling over 6,300 ships a year.

To learn the tricks of the trade he offered to work free for a Gujarati trading

firm. There he learnt accounting, book keeping, preparing shipping papers

and documents

LIFE AT ADEN


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Dhirubhai often asked journalists to write about his rags-to-

riches background.

He was proud of it and people should get inspiration from this.

People will have hope that they too can become successful.

He belongs to zero group because he started with nothing.

THE ZERO CLUB


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In feb 1966 ambani built a spanking new mill at Naroda, 25 km fromahmedabad.

By 1983,Reliance would become Indias largest composite textile mill

employing 10000 workers.

Between 1977 and 1980,almost daily a new and exclusive vimal outlet

would open its doors to business.

Sales doubled every two years from Rs 49m in 1970 to Rs 2097m in 1980.

GROWTH IS A WAY OF LIFE


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In nov 1977,Dhirubhai had a hard time convincing people to

trust him with their money.

Despite the dip in profits, Ambani declared a 27% dividend.

The 1979 issue(worsted mill) was quickly followed by one in

1980(mordenizing its textile mill)

In 1979, Reliance needed money to finance a worsted spinning

mill.

EQUITY CULT


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In 1982, Reliance Industries came up against a rights issue regardingpartly convertible debentures.

It was rumored that company was making all efforts to ensure that

their stock prices did not slide an inch.

To complete the transaction, the much needed cash was provided tothe stock brokers who had bought shares of Reliance, by none otherthan Dhirubhai Ambani.

With this, the demand increased and the shares of Reliance shotabove 180 rupees in minutes. The settlement caused an enormousuproar in the market.

DHIRUBHAIS CONTROL

OVER STOCK EXCHANGE


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Reliance is now 10 times bigger and its profits have increased.

Reliance today is well handled by his sons Mukesh and Anil Ambani.

Motivated manpower is the most important thing.

At Reliance they work like anything, leave no stone unturned, work roundthe clock, to achieve something which is best.

The visibility and success of Reliance has made others develop the courageto think big.

Others may think that he has finally arrived, he himself thinks that he hasjust begun

THERE IS NO INVITATION TO MAKE

PROFIT


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RAHUL KUMAR BAJAJ


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EARLY LIFE

Rahul Bajaj is an alumnus of Harvard Business School in USA,

St. Stephen's College, Delhi, Government Law College,Mumbai and Cathedral and John Connon School.

He took over the reins of Bajaj Group in 1965. Under his

stewardship, the turnover of the Bajaj Auto the flagship company

has risen from Rs.72 million to Rs.46.16 billion.

Rahul Bajaj created one of India's best companies in the difficult

days of the license-permit raj.


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TEMPO TANTRUMS

His first job was as a deputy general manager in Bajaj

Tempo ltd.

His boss was Naval.k.firodia chief executive of Bajaj Auto

and managing director of Bajaj Tempo.

In1957, Bajaj Tempo was promoted to make three-

wheelers using German technology.

Now there is a rift between Florida's and Bajaj's

Floridias walked off with Bajaj Tempo and Bajajs held on

to Bajaj Auto.


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YOU CANT BEAT BAJAJ

Despite all obstacles by congress party, BAJAJ Auto prospered. In

its start-up year(1962), it manufactured 3995 scooters.

By 1971,the BAJAJ scooter was a completely local product without

any imported Italian parts. since 1994,it has been producing over a

million two-wheelers annually.

Rahul Bajaj made the Bajaj scooter so popular that a flourishing

black market developed. A customer with a Chetak or super could sell

it the next moment at double the price.


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COMPETITION

In 1986,the two people who most worried Bajaj- the Firodias and Japans Honda Motor

Company-tied up with each other to produce scooters in Bajajs own backyard.

For years Honda had been eyeing India and its huge domestic market. Honda entered into

a technical collaboration with the Munjals to make motorcycles through Hero HondaMotors, and a joint equity venture with the Firodias to make scooters through Kinetic

Honda.

Still Bajaj auto sold more scooters than Honda and were the leading company in market.

Rahul Bajaj had nothing against foreigners or tieing up with them but he did not want toshare power,authority,and ownership with a foreigner in his own country. only weak do

that


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HAMARA BAJAJ

This iconic ad in 1989 reflected the pride that Indians took in the

name of Bajaj which was synonymous with their sole vehicle of

dreams: a scooter.

The fact that Bajaj is now positioned second in the motor cycle

business and has excited the scootor market is a sign of a change in

power equation between consumer and manufacturer.

This is the world of consumers, and brands have to take theshortest route to their hearts and minds, hopefully Rahul Bajajs

thinking will give a fresh impetus to this debate.


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ADITYA VIKRAM BIRLA


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TEMPLE BELLS AND LADDOOS

ON NOVEMBER 14,1943 at 11:07 p.m on Sunday in room no.3 of

Birla house, Aditya Birla was born.

Aditya Birla was the only son of Basant Kumar and Sarala .

When Aditya Birla was born, temple bells pealed and laddoos were

distributed .

Aditya spent most of his childhood in Calcutta, living in Birla Park until

1955.

His first school was the Mahadevi Birla Shishu Vihar at 4 Ironside

Road, founded specially for him

After two and a half years, he went on to the Hindi High School.

After his matriculation, he joined St. Xavier's College, graduating in

science.


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HUNGERFOR BUSINESS

Like his grandfather, early on in his career, Aditya displayed an

incredible hunger for business.

On November day in 1963, aditya written a letter to his parents in

Calcutta:

Ma, So far, I thought of only studies--studies and studies. Now I feel

that studies will be completed thereafter, I have to work. I now feel

that I should enter business at the earliest--and create something

really big--something really big--really BIG. I now realize that studies

would be over soon. Until recently, the aim was to join MIT--then it

shifted to getting the degree from MIT. Now the aim is to become

very big and important in business. Big and important not only in

business--but also in other aspects of life.


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SOMETHING REALLY

BIG

After completing a degree in chemical engineering at

the Massachusetts Institute of Technology(MIT),he was

married to Rajashri.

His father had lined up not one but two projects forhis only son.

The first was a small spinning mill for which BK had

acquired an industrial license and the second job was to

overhaul Hindustan Gas, a Rs 30m Company.

The Eastern Spinning Mill wasn't the something big'

of the MIT-returned youth's dreams, but the Rs 8m

project offered tremendous opportunity.


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Handing the valuable license over to Aditya in July1964, BK told him, "This permission is just a piece of

paper. If you are interested, take it up. If not, tear it up.

Close by and around the same time that Aditya

bought Indian Rayon for Rs 3m in October 1966, small

unknown yarn trader was building a spinning mill at

Naroda in Gujarat for Rs 0.3m.

Six months later, Dhirubhai Ambani's Reliance

Textile Industries couldn't produce fast enough whileBirla's investment looked as if it would go up in smoke.


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BRIJ MOHAN KHAITAN


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The Harrods bombing was a car

bombing that occurred

at Harrods department store in London on

17 December 1983.

Brij mohan and Pradip Khaitan, a cousin close business

associate. They had flown into London that morning for an

important meeting with Richard Magor, BM's partner.

A Scotland Yard investigation revealed later that dynamite had

been concealed in the car next to the Khaitans' Volvo.

Pradip and Brij mohan Khaitan were both thrown about twenty

yards away. They were unconscious for 4 to 5 minutes.

HARROD BOMBINGS


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Brij was bleeding badly, but he patted pradip on the cheek

and said, "Don't worry, we're still living, we aren't dead

yet.

Richard Magor, joined hands with one George

Williamson to promote Magor to manage tea gardens

in Assam.

HARROD BOMBINGS


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Mulling over offer, the thirty-four-year-old Khaitan figured a one-third

share in Williamson Magor.

There was also the little matter of prestige. Many Marwaris were cornering

British tea gardens and becomingBurra sahibs.

In 1964,Khaitan was appointed as managing director of Willinamson

Magors.

Matters came to head when Pat Williamsons died a few months later,

Khaitam become a chairman of Willinamson Magors.

This was the first step towards becoming the worlds biggest individual tea

planter.

FROM BURRA BAZAAR TOBURRA SAHIB


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Gardens of FEAR

On Tuesday, February 11, 1991 at Lahowal. Three gangstersburst into the office of D.K. Chowdhury, pumped nine bulletsinto him and escaped on scooters before they could be caught.

ULFA (United Liberation Front of Asom), a terroristorganization was behind this.

"Donations' were frequently extorted from living in far-flung

and isolated tea estates, but the tents were small.

The commander of ULFA demanded ,Khaitan alone have toshell out Rs 23.5m to buy peace.

GARDENS OF FEAR


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Khaitan refused to pay it. Instead he increase its gardens

security.

Today the gardens are guarded night and day by Khaitan's

private army. Two thousand armed guards, forty per garden,

patrol its perimeters constantly.

No manager is allowed to go outside the garden without some

protection. If he does, and he is kidnapped ,the management is

not responsible for his ransom

Khaitan's protective attitude towards his executives has earned

him their unflinching loyalty.


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I was the last person to pay and I was the softest Target in the

whole f Assam. I've gone through nights of literally torture in

my mind, putting my head on the pillow and not knowing who

will be the person to be killed tomorrow morning. That was

the time that l decided to build a good school in Assam. I haveput in Rs 22crores into the project, brought in the finest

faculty--the principal of London's Westminster School.Can a

mere school buy peace with ULFA? "No. I want to prove that

a good school will produce a good student, and that a goodstudent will produce a good citizen, and a good citizen will

produce a good country.1 have gone out of my way to put

money back into Assam, and people will realize it someday."


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RATAN NAVAL TATA


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INTRODUCTION

Ratan Naval Tata born on 28th December 1937 is the present

chairman of Tata sons and Tata group.

In 1962, after graduating from Cornell university with a

degree in Architecture and structural engineering, Ratan joined

the family business.

Ratans childhood was troubled as Naval and Sonoo didnt get

along with each other.

I would probably want to do something more for the uplift of

the people of India.I have a strong desire not to make money but

to see happiness created in a place were there isnt.


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A SRATEGIC PLAN

In october 1978 he took over the chairmanship of

Tata industries.

Ratan Tata wrote out a new plan for the group

called 1983 Tata strategic plan.

There was a need to look into the future and plan

for it more than in the past,and to look at new

business areas in a different kind of way

He foresaw that india would one day stop being a

sellers market.


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CORPORATE SPURS

Trouble at truck manufacturers pune had started brewing.

Nobody anticipated that an assault on Ratans position would come not from an

autocratic Tata executive Russi Moody but an unknown trade union leader Rajan

Nair.

Ratan launched measures to build bridges between the management and theworkforce.

Nair announced that he and his supporters would go on an indefinite fast at

Shaniwarwada fort.

For Tata, the Telco crisis became the test of his managerial ability.

Tatas victory: Tata believed it was a Vindication of principles and values which

the group had so zealously protected and propagated all along.


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QUESTIONING THE UNQUESTIONABLE

Aware of the criticism and whispering going on behind his back,

Ratan understands the challenges that face him. He knows that thedecisions he takes today will decide the future.

Ratan wants to radically change the Tata culture, make it more

competitive and agile.

change is not going to come by merely making that a mandate.

change is not going to come by writing letters to various group

companies. change is going to come from the competition that

environment provides.


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WHAT WE LEARNT FROM THIS BOOK

DHIRAJLAL HIRACHAND AMBANI: Dream with your eyes

open, its difficult but not impossible, Be innovative.

RAHUL BAJAJ: Know the path you want to take, Be a risktaker.

ADITYA BIRLA:

BRIJ MOHAN KHAITAN:

RATAN TATA: Be committed, Be Courageous, move closer to

the goal even if the goal keeps shifting

Business Mahajas - best selling book

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