ROKDA: HOW BANIYAS DO BUSINESS
Nikhil Inamdar
Random House India
242 pages; Rs 199
For those of us who grew up in the pre-liberalisation days, hearing the word "baniya" being used with derision was not uncommon. A typical member of the community was supposed to be soft in body (till Yash Birla built his amazing biceps), a miser and devilishly cunning. Film after film heaped insult on him: the bloodsucking moneylender, the cold-blooded businessman, the slimy broker. In popular culture, he was the man responsible for all human misery. Everybody accepted the notion that it was easier for a camel to pass through the eye of a needle than for a rich man to reach heaven. It is only in recent years, when commercial success has come to be recognised as the success and profit is no longer a dirty word, that the worth of the community has finally been realised. With the government no longer on investment mode, it is the Baniya businessman who will create jobs, produce goods and provide services. The community's stock has never been higher.
Nikhil Inamdar's book is a recognition of their contribution and of their talent. The success stories of Neeraj Gupta of Meru Cabs, Radhesyam Agarwal and Radheshyam Goenka of Emami, Rohit Bansal of Snapdeal, R K Somany of Hindware and V K Bansal of Bansal Classes (Kota), recounted in great detail by Mr Inamdar, tell you why Baniyas succeed in business.
"Baniya" derives from vanijya, Sanskrit for trade. Over centuries, they spread out to all over the country, carrying out trade and banking. Many of these bankers became rich and powerful. Some ran their own mail service and financed overseas merchant maritime expeditions. They were tapped regularly by rulers, including the East India Company, to finance their wars. When the industrial age finally came to India, these people were at the forefront of setting up factories and mills. And now they are spearheading the e-commerce revolution in the country: the roll of honour is dominated by one surname, Bansal.
What is it about the Baniyas that makes them so successful in business? Actually, business is in their blood. It is not uncommon to find children helping out their parents at shops and factories after school hours. They are encouraged to take risks and think out of the box - all the ingredients of success are instilled into them at a young age. As a result, their appetite for risk is enormous, and risk and reward go hand in hand. Imagine the risks that the Baniyas of Rajasthan took when they migrated up to Kolkata in search of business opportunities. The journey at that time was long and arduous; the routes were infested with robbers. But it was never enough to stop their march.
And they are practical people, ready to work out solutions rather than prolong confrontations. Mr Inamdar mentions an incident in the chapter on Emami. The two partners, Radheshyam Agarwal and Radheshyam Goenka, had acquired Himani from the Banerjee brothers. "The Banerjees," Mr Inamdar says, "embodied the lazy, smug Bhadralok character of Bengal's erstwhile aristocracy. Even as the enterprising Marwaris, who had their backs against the wall, were busy seizing control of all trade and business in the state, the Bengali gentry were squandering away the massive fortunes their forefathers had earned during the colonial times." While the Banerjee brothers called it a day promptly at 1.30 p m, the two new owners of Himani worked overtime to restore the financial health of the company. The fleet of eight or nine cars that the Banerjee brothers had bought to raise their snob value but served no practical purpose was promptly sold. They sat with workers to demonstrate how to polish a glycerin soap that would make it more acceptable in the market. All this while, they did not ease out the Banerjees from the company; or else, the workers would have started to feel insecure about their jobs. The company turned around in no time.
It is this practical attitude, the readiness to resolve differences quickly and amicably, that the world must learn from the Baniyas. That's why one doesn't hear of regressive practices like honour killings in the community.
The world often underestimates the Baniya community's capacity to work hard. It is not uncommon for a businessman, from a grocer to an industrialist, to work up to 18 hours a day - without complaining. Their ability to postpone instant gratification, fun and games for the sake of work is karma of the highest order. In the chapter on Neeraj Gupta of Meru Cabs, Mr Inamdar mentions that in his early days, when his fleet of taxis was small, the businessman wouldn't think twice before pressing his personal car, or that of his in-laws, into service. He would often also take the steering wheel to drive people around! That is the Baniya work ethic. Mr Inamdar's book offers a good insight into the ways of this remarkable community.
Nikhil Inamdar writes for the Business Standard website
