1. business and industrial

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MARWAR INDIA march-april 2015
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A cultural
repository
Well-known business historian, researcher, academician and writer
Dr D K Taknet’s many endeavours have resulted in unearthing an
impressive wealth of information about Marwaris, much of which
would have been lost in the folds of history if it wasn’t for his penchant
for extensive research and love of the community to which he belongs.
MARWAR presents an excerpt and rare photographs from his soon tobe-released coffee-table book, The Marwari Heritage, aimed at bringing
to light the community’s unsurpassable contributions towards the
socio-economic development of the country as well as a Q&A with the
author to delve into the finer aspects of the book.
Text ✲ Neehar Mishra Images courtesy ✲ Business History Museum, IIME, Jaipur
Most of the projects you have
undertaken have been based on the
Marwari community. Considering
the fact that you too are a Marwari as
incidental, what led you to dedicate
a major part of your professional life
to studying the community in such
depth?
come to light. Considering the paucity of
research and literature pertaining to the
community, it is pertinent to bring to the
fore lesser-known facts and highlight its
latent characteristics in a concrete form. The
community has thus always interested me
and being part of it gave me an insider’s view
since the very beginning of my research.
What most people don’t know is that
the Marwari community also actively
participated in the Indian Independence
movements, be it the First War of
Independence in 1857 that was a defining
moment in our freedom struggle, or the
economic reconstruction in the ‘90s. It is
indeed strange that till date historians have
not given due consideration to this fact
and the contribution of Marwaris has not
Let’s talk about your upcoming book,
The Marwari Heritage. What objectives
did you have in mind when you first
decided to write it?
The Marwari Heritage attempts to be, for
the first time in the annals of Indian history,
a large format, aesthetically produced
and richly illustrated coffee-table book
that includes significant achievements
Facing page (clockwise from top): A Marwari trader concentrating on his bahi-khata (accounts); The bahi-khata is placed
before the idols of Lord Ganesha and Goddess Lakshmi for worship by the businessmen on the occasion of Diwali; By the mid19th century, the Marwari community had amassed a large amount of wealth in British India and held sway over Rajputana.
The rajas even started the tradition of visiting the houses of renowned traders on special occasions.
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of Marwaris in the fields
of business, industry, the
freedom movement and
other spheres of life along
with a discourse on the
geo-socio-cultural factors
which have contributed to
their phenomenal growth
and prosperity. The book
will also highlight the welfare
activities pioneered by this
philanthropic community,
the first to have a recorded
history of CSR even before the term
became known in the business sphere.
Accompanied with rare, original sketches
and photographs that complement the text,
the main objective of the book is to publish
our research study in a distinct and lucid
style to acquaint its readers with the myriad
noteworthy characteristics and hitherto
unknown trivia about the community.
What are some of the primary and
secondary sources from where you
have gathered information for the
book?
Primary data has been gathered from
personal interviews with munims,
gumastas [agents] and entrepreneurs of the
community. Our research team travelled
over 3,50,000 km and spent more than
2,000 days researching and interviewing
over 8,000 people directly or indirectly
associated with the community—ranging
from those in the capacity of Chairman
Emeritus to service-class Marwaris. People
from diverse backgrounds poured their
hearts out to narrate fascinating stories,
replete with previously unrecorded facts,
inspiring anecdotes, opinions and vignettes,
providing dramatic insights into the
community. The team diligently pored
over approximately 2,75,000 sheets from
various archives, apart from other data
like personal records, memoirs, diaries and
ledgers, British gazetteers, census reports,
biographies, daily newspapers, journals and
reports of conventions and conferences
held periodically. Research data has
been collected from various national and
international libraries, museums and private
collections.
From conceptualisation to research
and finally publishing, approximately
how much time did it take for you to
finish the book?
The Marwari Heritage is the result of
thorough and meticulous research of five
years, going back over 400 years to capture
the community’s rich history. Comprising
over 500 pages, the book is embellished
with more than 800 rare coloured and
black-and-white photographs, lithographs,
paintings, etchings, line drawings and other
never-seen-before illustrations.
What is the one characteristic of the
multifarious Marwari community that
you found especially striking while
researching for your book?
Left: Dr D K Taknet;
Below: It took almost three
months for the Marwari
migrants to reach Assam.
They had to cross the
Brahmaputra river in
boats and battle against
the rough strong currents.
No wonder then that it was
said: ‘Jahan na pahunche
bailgadi, wahan pahunche
Marwari’ (Marwaris can
reach any place, even those
which are inaccessible by a
bullock cart).
During the course of the research, it was
established that among Indian business
communities, the Marwaris were the
first community to have spent more than
`25,000 crore on various welfare activities
between the first and the 21st century. I
came across several interesting anecdotes
The book will highlight the welfare activities
pioneered by this philanthropic community,
the first to have a recorded history of CSR
even before the term became known in the
business sphere.
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that support this. For instance, once G D
Birla asked his elder brother, Jugal Kishore
Birla: “Bhaiji, you are giving money to
these people; out of them 99 per cent are
undeserving.” His brother smiled but gave
no answer. G D Birla repeated his question.
This time Jugal Kishore turned to him and
said: “You think that only one per cent
of these people are deserving; I am only
concerned with that one per cent. The
remaining 99 per cent will be taken care of
by the Almighty. I am not worried about
them.”
Another example is that of Sohan Lal
Duggar, a renowned philanthropist and
speculator who donated crores of rupees to
various charitable causes. During his lifetime
he never constructed a house for himself
and instead gave away his money to needy
people. These instances have created a deep
impact on me and I hope they will inspire
the readers of my book as well as future
generations of Marwaris.
What are the challenges that you most
often face during your academic and
literary pursuits?
Sustaining research, procuring original
paintings and contacting old and established
business houses for photographs and old
business documents is no easy feat, as you
can imagine. Finances and manpower are
crucial and so is the organisation of data.
According to you, what are some
of the most crucial ways in which
Marwaris have contributed to
the growth and development of
the country in terms of economy,
infrastructure and also culture and
society?
Analysts attribute the Marwaris’ significant
contribution to the socio-economic
development of India to their foresight
which leads them to invest in the latest
technology in order to drive products
and production forward. Their focus
on in-house research and innovation to
achieve low-cost manufacturing without
compromising on quality has also enabled
them to offer their customers products
which are good value for money. In the
years past, Marwari industrialists have
constantly been increasing their wealth, sales
Top to bottom: A
business postcard
dispatched to
business associates
on Diwali
(dedicated to
Lakshmi, the
Goddess of wealth
and prosperity);
The facsimile of
an interesting
advertisement
that appeared in
a local newspaper
for Marwari
traders to set up
an agency in
London; Muria
is a bare-headed
script which
was adopted for
writing accounts
by indigenous
Marwari
bankers, known
as Mahajans
and Sarafs, in
the northern and
western parts of
the country. Its
alphabet is based
on Devanagari
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Analysts attribute the Marwaris’ significant
contribution to the socio-economic development of
India to their foresight which leads them to invest in
the latest technology in order to drive products and
production forward.
and profits. They have pioneered several
products and manufacturing systems at the
national and international levels. Marwaris
deserve full credit for giving new direction
to the country’s economy and their recent
participation in global economy. They have
also equally contributed to the socio-cultural
growth of the country. Hence, several
Marwaris have been awarded by various
organisations, including the Padma Awards
conferred by the Government of India, for
their contribution in various spheres of life.
Of the innumerable well-known
Marwaris you have gotten to know
closely while researching on them,
please mention few of the names you
find most noteworthy and why.
Shri G P Birla, a great industrialist and
philanthropist who took a keen interest
in empowering the youth of the country;
businessman and dedicated humanitarian
Shri B M Khaitan; Shri Rahul Bajaj, a
visionary entrepreneur with an appetite for
risk; Shri Kamal Morarka, an extraordinary
statesman, industrialist and philanthropist;
Shri B H Jain, who has revolutionised
Indian agriculture by infusing it with the
most advanced technologies; mining baron
Shri Narendrakumar A Baldota, who is a
frontrunner in CSR; renowned politician
and president of the All India Vaish
Federation, Shri Ramdas Agarwal; and
Shri N R Kothari, an exquisite jeweller and
chairman of KGK Group are but few of the
many names that come to my mind.
Clockwise from
top: The scene
of a typical
Marwari gaddi.
The seth is seen
here along with
three other
munims checking
his bahi-khata;
A scene depicting
mass migration
of Marwaris
from their native
place. Boarding
a train packed
with migrants
was a mammoth
and herculean
task. Once
missed, travellers
had to wait for
12 to 24 hours
at a stretch for
the next train;
A busy Marwari
gaddi where four
generations are
seen working in
unison. A photo
of the great
grandfather on
the wall seems to
shower blessings
on them
The leaders profiled in the book
represent only a small cross-section of
this ambitious cartel of businessmen
and women, who deserve a salutation
for their laudatory contribution to the
country.
You have unearthed a vast wealth
of information on the Marwari
community, majority of which
would have been lost in history
if it wasn’t for your academic
endeavours …
We have set up a Business History
Museum under the aegis of the
International Institute of Management
and Entrepreneurship (IIME) in Jaipur
where we collect rare material related to
the Marwari community such as articles,
books, souvenirs, biographies, individual
collections, historical documents, British
gazetteers, census reports, old account
books and business documents. We
even have plans to establish a museum
dedicated to the community, where
innovative products, rare visuals, letters,
dresses, old magazines, photographs,
paintings, lithographs, maps,
illustrations, line-sketches and other
valuables and objects will be exhibited
for the benefit of scholars, general public
and youth of India.
What are the future projects that
you have conceptualised or are
currently working on?
Presently, research on three volumes
on the socio-economic contributions
of the Vaish community is in progress.
This comprehensive and authentic
study intends to bridge the wide chasm
that prevails in the absence of dedicated
research and will also include details
about the multifaceted personalities
and trailblazers of the community. In
order to defuse the impression that
Vaish is only a money-making business
community, it has become imperative to
highlight its rich heritage and glorious
traditions. Additionally, two other
research projects, Heritage of Rajasthan
and Heritage of Oil are in the pipeline,
since both are crucial areas of research
and there is no comprehensive book
available on the either subjects. ✲
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Excerpt from Dr D K Taknet’s upcoming book, The Marwari Heritage ...
THE MIGRATION STRUGGLE
The gigantic industrial empires of the Marwaris today are the
outcome of the ceaseless struggle of their forefathers during their
migration. The inspiring story of this migration is one of courage,
patience, hard work and endurance. During the initial stages of
migration, there were hardly any means of communication or
arrangements for boarding and lodging on the way. Besides, the
Marwaris had little knowledge of the language and culture of the
places they were migrating to. In those days, escorting camel
caravans across vast expanses of desert infested with sand dunes
was like confronting death, and they were frequently preyed
upon as they travelled for months on camel back in scorching
heat. Describing their migration, G.D. Birla observed that travelling
to Bombay in those days was a dreadful experience. The nearest
railway station to Delhi then was either Ahmedabad or Indore.
Travelling on camel back from Ahmedabad, Indore or Pilani was
extremely taxing. The journeys were undertaken in groups called
sagas and it took almost twenty days to undertake the journey
from Pilani to Ahmedabad, death stalking the travellers at every
step. But nothing slackened their pace of migration.
A journey to Bengal at that time implied travelling for
months at a stretch on camel back, on foot or by bullock cart and
then in boats. The Marwaris had to encounter thieves, dacoits
and wild animals in dense forests, and had to cross a number of
rivers and nullahs on the way. Traders from Rajputana frequently
travelled on foot to Mirzapur when the area came under British
control and although many died in the process, this did not deter
those who followed. The journey to Assam was fraught with even
greater dangers. Many died of diseases caused by germs and
mosquitoes and it was often ten to fifteen years or more before
they were able to rejoin their families, with the latter receiving no
information about their fate or well-being in the interim. It was
only occasionally when a trader returned home that he brought
news and correspondence from his fellow brethren.
RECIPE TO SUCCESS
The adverse geographical conditions in the land of their
origin also gave rise to the virtues of patience, endurance and
resourcefulness. Hardworking by nature, it is no surprise that
their business ventures became profitable right from the start.
However, what was most commendable was their intrinsic ability
to spot opportunities and capitalise on them. Where another
businessman would hesitate, wait and rethink, a Marwari would
immediately calculate the pros and cons, and act. Perhaps this
ability to judge quickly and take calculated risks could also be
best attributed to the inherent hardiness of the Marwari mind
and body which had dealt with the tribulations of growing up in a
stark desert land.
Respect for centuries-old culture values and facilitating
support systems for their fellow Marwari businessmen led them
to extend economic assistance to their fellow businessmen.
Those who had migrated to Calcutta, Delhi and Bombay opened
basas or hostels, charging nothing or very little for a year’s
boarding and lodging. These basas enabled younger migrants
to settle down in a new city and establish their business without
financial tension. The experienced businessmen shared business
strategies and insights with the newcomers. Imbued with a
strong sense of community, they preferred employing relatives to
ensure trust and loyalty. Jagat Seth helped many Oswals settle in
Murshidabad; Surajmal Jhunjhunwala of Chirawa and Nathuram
Saraf of Mandawa recruited many Marwaris for the textile trade in
Calcutta, as did the firm of Tarachand Ghanshyamdas. The Birlas
too followed the same practice. Marwaris encouraged enterprise
among each other and promoted the economic development
of their community by setting up institutions like the Marwari
Association of Calcutta, the Marwari Chamber of Commerce, All
India Marwari Federation and the All India Marwari Yuwa Manch.
A deep-seated sense of religious and spiritual beliefs
dictated that their personal lives were free from excesses.
Leading simple, austere lives, they kept their business expenses
to the minimum and spent very little on themselves. However,
they were generous and lavish when celebrating marriages
and festivals. Following the credo: ‘Pisa kan piso aawe – money
earns money,’ they believed in saving money for a rainy day. The
Chand magazine described how the Marwaris set up their gaddis
furnished with pillows and bolsters, and transacted deals worth
lakhs of rupees every day, and at night converted their gaddis
into beds! Such thrift was symbolic of their love for and their
responsibility towards home and family. Most of their profits were
sent back to Shekhawati where joint family systems flourished. It
was only due to the reassurance that his family would be looked
after by his relatives that a young Marwari ventured forth to
unknown lands in search of economic prosperity. The joint family
system also encouraged cooperation and multiplied capital, thus
becoming a huge contributory factor in the Marwari success
story.
A typical Marwari trader, seated comfortably against a bolster, enters the accounts in the bahi-khata.
What cannot be ignored when it comes to capital
accumulation is that the Marwaris were perhaps the country’s
first investment bankers, having started the hundi purja system.
Rather than merely hoarding their profits and savings under their
mattresses, a group of established Marwaris would often collect
funds and lend them to potential entrepreneurs who needed
capital, charging them an interest. A dual purpose was served
through this. The businesses that they encouraged the new
entrepreneurs to start were actually ancillary services that would
support their own business, thus allowing it to grow further.
For example, a textile manufacturer would support his cousin
who wanted to start a firm that made dyes. In this manner he
strengthened his own business.
With a genetic ability to calculate debit and credit, and
profit and loss, accounts and finance became their forte. Young
boys were often included in discussions regarding trade, and
developed an enviable ease for arithmetic calculations. When
the time came for these youngsters to either take over their
father’s business and expand it, or start out on their own, they
already had a good understanding of economics, and easily
overtook their peers with their business acumen. Added to this
intrinsic monetary understanding, the vigorous practical training
they were given in their early teens, especially when it came to
serving customers or handling the books of accounts, held them
in good stead. It strengthened their understanding of customer
needs, making them open to technological innovation and
advancements to ensure consumer satisfaction. Consequently,
they enjoyed a goodwill and long-term relationship with their
customers. It was common to hear about Marwaris in the late
eighteenth century selling off their goods at a loss or borrowing
money at high rates of interest to pay off a loan in order to
keep their goodwill within and outside their community. The
trust that these pagdiwalas commanded was one of the main
reasons they were appointed as agents in British firms. Their
English-speaking ability was another factor that gave them an
upper hand in the pre-Independence era. Anticipating business
opportunities, Marwari traders were one of the first in the country
to learn the Queen’s language. Moreover, their scrupulous trade
practices combined with their reliability quotient and reputation
for prudence in economic matters assured them more business
than their contemporaries. Capitalising on economies of scale,
the Marwaris earned quick profits in deals where others saw no
opportunity. One such method was selling off large quantities
Right:The Marwaris migrated from Rajputana due to
geo-socio, economic and political factors. They journeyed on
foot in groups for greener pastures of livelihood with small
bundles and lota-dor as their only luggage.
of goods at low prices; this was called rasksas in their parlance.
These seths also had the knack for predicting future trade
fluctuations and made huge profits in speculation. Strong
community ties further helped them touch base with other
businessmen of their community in different regions, thus giving
them insider knowledge that few others were privy to. Sharing
this sense of brotherhood, they often entered into business
partnerships, which not only made obtaining capital easier,
but also spread the risk. Such were their personal relationships
that these partnerships usually lasted a lifetime. Most Marwari
industrial houses were started in partnerships and evidence of
the trend can be seen even today.
Their main focus on wealth can also be attributed to
their religious beliefs. The cornerstone on which the Marwaris
built their enterprises could well be attributed to the ninth sutra
of the Rig Veda which states: ‘May God make us men of action.
We should give up laziness and, functioning with fair means, we
should acquire tremendous wealth ... ’ Placing their accounts
books, pen and ink in front of the Goddess during Diwali, they
worshipped Lakshmi in the form of money, Saraswati in the
form of bahi, and Kali in the form of black ink. Thus business was
practised with a righteous zeal that precluded any nefarious
practices. No wonder success was always at their doorstep …
Published by The International Institute of Management and
Entrepreneurship (IIME), Jaipur, The Marwari Heritage is due
for release between April and May 2015. For more details
contact IIME, Jaipur at [email protected] or 01412620111.