This
might strike one reading now as just another instance of a scion of one
of the premier business families of India taking over the mantle of
running the family business, and carrying forward the legacy with utter
ease. But, if one takes a closer look at the progress of the various
companies under the group, one will be surprised, almost amazed- that it
wasn’t anything like that when Mr. Venu Srinivasan assumed the
responsibility back in 1979.
The saga of the TVS Group, from a small
family business running a rural transport service in the temple town of
Madurai in southern Tamil Nadu growing into a $4-billion conglomerate
with a wide range of business interests - from auto components, scooters
and auto-rickshaws, to financial services and logistics, is a go-to
book for all aspiring entrepreneurs. For it has traversed the path of
growth and success like very few corporate entities, conceivably have.
More so of Mr. Srinivasan’s emergence as one of the most inspiring
leaders to have risen in India in the last three decades or so. The
group presently has operations spread across India, the United States,
Europe, Indonesia and China.|
Early Days
With
the advent of industrial India, following a spate of pro-business
policies that were envisaged to foster growth and prosperity of the
country, the group ventured into manufacturing of auto components by
establishing Sundaram-Clayton Ltd in 1962.
By the time Mr. Srinivasan, (Born December 11, 1952), the grandson of TV Sundaram Iyengar – founder of the TVS Group and one of the very few entrepreneurial talents that pre-independence had seen- was ready to join the family business, it would seem as though everything was laid on a platter for him. Even if that was indeed the case, Venu Srinivasan did not think so. His idea was to get some hands on experience with the nuances of the field which he would ultimately get into. So, it is said, that instead of just waiting to assume office amongst the ranks, he set up a small garage while he was still pursuing engineering (Madras University). This was where he would, during vacations, put in some grueling hours as a mechanic to be able to explore and experiment with automobiles and auto parts. Once he was thorough with the nitty-gritty of the automobiles, he took the next logical step in his preparation for taking his rightful place in the family business after completion of his engineering – doing his Masters in Business Administration from Purdue University, Indiana (USA).
The Spark
Mr.
Srinivasan became the CEO of Sundaram-Clayton in 1979. What set him
apart from the other leaders of his time was his ability to quickly
seize the situation, and act appropriately, even if it meant taking some
tough and unusual decisions. Right since the early days of leadership
in the company, and even after the TVS Motor Company (as it has come to
be known since 2001 when its partnership with Suzuki ended) was founded
in the same year, 1979; he had very keenly observed the day-to-day
functioning of the company. His education and the experience thus far,
made him realize that although the company had done reasonably well to
sustain business the way it has been for over seven decades, it needed
some changes in its running if it were to remain amongst the top
automobile companies of India.
This
meant that he had to take hard decisions and also look for practices
that best-run business the world over were adopting to achieve quality
as well as sustainable performance. The company which had relatively
little worker-related trouble for so long had now encountered some in
the form of labour unrest in a couple of the group companies, especially
the TVS-SUZUKI factory, apparently propagated by the labour unions.
This was anathema for the thorough-bred Mr. Srinivasan. So he dealt the
situation sternly by shutting down the factory for a period of three
months, thus forcing the unions to relent.
While
that was one way of stamping his authority on the business, Mr.
Srinivasan knew that the company also, perhaps, needed a re-structuring,
if not a complete over-haul. That is when he set about re-structuring
operations by upgrading plant machinery, investing in new technologies
and implementing Total Quality Management Practices.
Torch-bearer for the Indian Industry
A
re-structuring called for expert intervention, and Mr. Srinivasan
sought the help of Prof. Lord Kumar Bhattacharyya of the University of
Warwick as a consultant to provide guidance in this endeavour. This was
also around the time when the company split, amicably, with Suzuki and,
having obtained the capacity, started manufacturing on its own. And in
just less than a decade after the separation from Suzuki, the company,
now re-christened TVS Motor Company Ltd, made its mark as the third
largest manufacturer of two-wheelers in India following the launch and
success of ‘Victor’, which was then India’s first indigenously built
four-stroke motorcycle, besides the launch of a handful of other models.
Not
one to sit on laurels, and someone for whom excellence was intrinsic,
Mr. Srinivasan was always keen to improve and work to strengthen the TQM
processes within the company. So, it was no surprise then that he
brought in the best in the business, so to say, the Japanese as mentors
to bolster the various processes of the company. First it was Yasutoshi
Washio, a Deming Application Prize Winner and globally renowned expert
in Total Quality Management, followed by Quality Management Guru Prof.
Yoshikazu Tsuda. Thus, he was the first one to think of, and to
implement, the very successful and effective Japanese model much before
any other entity in India, big or small, had not even so much as given
it a thought. It was a manifestation of what Mr. Srinivasan had always
been – a perfectionist and a visionary.
As
a result, TVS Motors continued to prosper and by 2008-09 it was one
among the top-ten two-wheeler manufacturers in the world. It makes for a
great case study, especially for the kind of revolution it has brought
about in the way personal commutation was happening, way back in the
1980s. Beginning with launching a simple, easy-to-use moped for the
middle class in India in the 1980s to launching 7 new bikes in a single
day (first time in the history of the automotive industry in the world),
TVS has often taken the unbeaten path to innovation. No small
achievement for a company that had relatively humble beginnings, one
must say, and whose make-up manifested the culture of its country and
yet was open to the wonderful possibilities that industrialization and
modernization presented it with.
The
TVS Group is presently India's leading automotive component
manufacturer, with an annual turnover of more than USD 4 billion,
employing over 40,000 people in the 30 companies under its stable.
Another
feather in the cap of the TVS Group, and TVS Motors in particular, has
been its emphasis on bringing in new and relevant technology,
particularly use of eco-friendly and recyclable raw materials. As a
result, it was able to bring out -in 1996 itself- the first two-wheeler
in India – TVS Shotgun - to use the catalytic converter. Not
surprisingly, all the company vehicles are believed to be complying with
world’s recyclability standards. This only highlighted the standing of
the Group as a pioneer in industrial practices in India, coming as it
did on the back of the fact that the TVS Group was the first in India to
start an employees providend fund scheme and also the first one to pay
gratuity to employees, long before any other enterprise in India could
think of, and even before they were made mandatory by the Government of
India. Also, it has been constantly exploring to bring out
alternative-fuel based vehicles such as the electric scooter and
factory-fitted LPG and CNG three-wheelers. TVS can proudly assert that
85% of all TVS vehicles are completely recyclable. All this on the basis
of a very strong customer relationship with its customers built over
decades and kept intact through various exercises to remain in constant
contact with them.
Such
foresight, dynamism, as also his penchant for perfection, and
conformity to values have always kept the company focused on way to
accomplishing its objectives. His penchant, almost obsession, for
quality and excellence have brought in rich dividends to the group as
Sundaram-Clayton and as well as the TVS Motor Company have both won the
global quality benchmark – the Deming Prize in 2002 – the same year he
assumed the Chairmanship of the TVS Motor Company, for achieving
distinctive performance improvements through application of company-wide
quality control. In fact, TVS Motors was the first company in the world
to have received the Deming Prize. It is noteworthy that TVS was the
only Indian manufacturer to have been considered eligible for Star of
Asia 2002 (Awarded in 2003). It is these very aspects about the
functioning of the Group that have, in a way, heralded a new era in
corporate India which is also looking to keep up with world standards
vis-a-vis quality management. No wonder then that apart from being one
of the key functionaries on quite a few of the group companies, Mr.
Srinivasan has also been entrusted with many other important
responsibilities in various positions.
Some of the positions that Mr. Venu Srinivasan held, and successfully carried out his responsibilities, include:
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Social Responsibility
Always
one for thinking differently and staying ahead of the pack, Mr.
Srinivasan did not limit himself to the exigencies of corporate
governance. He has always been one of the very few who work for the
betterment of society along with their own, and in their own distinct
way. Srinivasan Services Trust (SST), the social arm of Sundaram-Clayton
Limited and TVS Motor Company, was established in 1996 with an aim to
create self-reliant communities that are models for empowerment and
sustainable development for rural communities. The Trust has primarily
four focus areas - Education, Environment, Health, and Infrastructure -
activities under which have expanded to almost about 1000 villages
across the 4 States of Tamil Nadu, Karnataka, Maharashtra and Himachal
Pradesh. The efforts of the Trust have had a great impact in the target
areas and the results are there for everyone to see. Today about 50% of
the families (about 61500) in the project villages earn a monthly income
of Rs. 10,000; morbidity due to communicable diseases has come down to
less 5%; 72% of the children pursue higher education after completing
schooling; about 72% (92500) of the households under the project areas
have access to sanitation facilities, and about 162000 hectares in the
Eastern Ghats covered under the afforestation drive. Now those are
outstanding figures to achieve in a mere decade-and-a-half since the
time it was founded as an extension of the Group’s responsibility
towards the cause of the less-fortunate people of the country.
Like
Mr.Venu Srinivasan, the Trust has also been recognized for its yeomen
work for the society. It was awarded the Times of India Social Impact
Award on Advocacy and Empowerment in September, 2011.
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Awards and Accolades
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Quotes
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