When the Kings of England were also Emperors of India, Hindus in business had to be content with second-class corporate status. They could make comfortable fortunes—and many families did—exporting jute, tea and other products, and importing British goods. But, because Britons dominated the field, the Indians were mostly shut out of top manufacturing jobs.
Since their country achieved independence 19 years ago, however, Indian businessmen have been emerging on their own. And to an ever increasing degree, the subcontinent is becoming dominated by a group of young Indian executives who were schoolboys when the Empire crumbled.
"The older generation only knew a period when India was under foreign rule," explains Rasesh Mafatlal, 33, one of four brothers who direct Mafatlal Gagalbhai, a vast collection of textile and chemical companies. "We grew up knowing only modern India. Our psychology is entirely different."
The new psychology pays off. At a time when India's critical business downturn has cut production nationally to 60% of capacity and inflation is razoring the rupee, the younger Indians and their modernized companies are rolling along and expanding into new markets.
Gin & Catchup. Most of the new breed had old family fortunes to build on, and they used that base imaginatively. Indian companies were formerly privately owned hodgepodges put together, without economic rhyme or reason, over the years. The new boys have turned their enterprises into stock companies to gain additional capital and are carefully tailoring operations so that they complement one another.
Lucknow's Ved Ratan Mohan, 36, for instance, is India's biggest distiller. But in a nation where opposition to drink is strong and prohibition varies locally from state to state, Teetotaler Mohan has balanced his beer, gin, rum and whisky with breakfast foods, apple juice and catchup. Arvind Mafatlal, 43, who as oldest brother became chair man of Mafatlal Gagalbhai after his father's death eleven years ago, is leading it away from textiles and into more profitable chemicals. He has undertaken joint ventures with both Shell and Montecatini, has a $140 million expansion program under way that will make the brothers India's biggest petrochemical producers.
Like Mafatlal, other young Indians have entered new fields by associating with foreign companies. Keshub Mahindra, 42 (University of Pennsylvania '47), controls 15 companies that make, among other goods, Jeeps in conjunction with Kaiser, tractors with International Harvester, and elevators with Otis Elevator. Hari Nanda, 48, of New Delhi makes everything from railroad couplers to razor blades, is now manufacturing arm tractors designed in India with French engines and Polish transmissions, as well as a baby tractor priced at $1,000, the cost of three teams of bullocks.
Once such joint ventures are arranged, the Indian government protects them against foreign imports by high tariffs and quota restrictions. Says Charat Ram, 49, whose combine of sewing-machine, refrigerator, air-compressor, textile, and chemical companies makes him India's eighth largest manufacturer: "You cannot make a loss unless you are an utter fool. We are absolutely in a seller's market."