A Dynamic Catalyst

Ekatmata Sharma, The entrepreneurs' organization has carved a smooth road for those on the route to becoming successful entrepreneurs worldwide. Society speaks to the young minds that operate its India chapter.

For young businessman Rajeev Deep Bajaj, Managing Director of Bajaj Capital, there has been immense support from the Bajaj clan, and also his famous last name has helped his business grow. But, for those not belonging to a big business house, things are not always as cushy. To facilitate business ideas and to deal with complex issues, established businessman like Rajeev Deep Bajaj, under the aegis of the Delhi chapter of the Entrepreneurs' Organisation (EO), give their expert knowledge to the upcoming entrepreneurs.

As Indian businesses have grown far more complex than before, they need special skills to manage and grow. They require an army of business professionals who can guide and equip the budding entrepreneurs with their valuable experience. To facilitate an exchange of business ideas between entrepreneurs, along with a complete personality development, the EO is a platform where entrepreneurs get an opportunity to interact, exchange ideas at a deeper level for business growth and personal challenges.

Founded in 1987, the EO is dynamic, global network of more than 7,500 entrepreneurs across 118 chapters in 40 countries. An association exclusive to entrepreneur achievers, the EO's purpose is to provide a global yet localized platform for like-minded business owners to actively engage, learn and grow from each other's experience in order to achieve greater business success and an enriched personal life. The membership of the EO, which is by invitation only, links some of the leading industrialists and entrepreneurs across countries and cultures through a single platform.

In India, the Delhi chapter was founded in 1998 by a group of distinguished business barons like Pranab Ansal, Sanjay Kapur, Neeraj Kanwar, and Amit Burman. Since its foundation, the Delhi chapter has seen the participation of renowned entrepreneurs. The current president of the EO's New Delhi chapter, Riju Jhunjhunwala who is the Joint Managing Director of RSWM Limited, the youngest in the EP, says, " The EO is different from other business organizations as it covers all aspects of an entrepreneur, from business to different aspects of life relating to self development, family, spouse, children, grooming, et al. It benefits all the dimensions of an entrepreneur. Other organizations are arbitrary bodies to discuss business with the government whereas the EO is purely an interactive ground for like-minded business entrepreneurs. I believe only 40 per cent of my involvement with the EO is about business, the rest is about getting a different support system. " A non-profit organisation, the EO structure is the same across the world.

Aditya Burman, "There are ideas being proposed by entrepreneurs, but the lack of guidance, resources and other factors become a barrier in taking that idea forward. Hence, new entrepreneurs need a platform to take off and the EO provides it."

Rajeev Deep Bajaj, the EO's Communication Chairman, says, "Our basic protocol is Gestalt - share experiences not opinions. I have been a member of many other business organizations where the interactions between the members very superficial. We, as a part of an international body, have several tools to make the members benefit from it."

While there is the expertise of the business barons, there are also fresh ideas that are facilitated in the EO. "Over the years, what the different members have practised have become like template tools which we use to exchange ideas. A lot of newer ideas and concepts are being generated. There are ideas being proposed by entrepreneurs, but the lack of guidance, resources and other factors become a barrier in taking that idea forward. Hence, new entrepreneurs need a platform to take off and the EO provides it. It encapsulates an entrepreneurs' entire life," says the Forum Chairman of the EO, Aditya Burman. He is the director of OncQuest Laboratories Ltd.

" Though the EO is spread all over the world, it customizes according to the work ethics and culture of different countries. We connect as a family. Hence, we bond at different levels, not just professionally," adds Ashna Singh, Director, Ashna Gallary and President Elect of the EO. Intangibly, the EO has benefitted its members through various programmes and has helped in personal and business development. There are several membership benefits for an EO member. The Forum enables the members to discuss their triumph and tragedies of life as an entrepreneur. " Members don't give advice; they speak from prior experience, letting the participants to draw their own conclusions on the best manner to proceed," enlightens Bajaj.

The member exchange programmes enable an entrepreneur to tap into the collective experience of 25,000 members of the EO, including those of the Young Presidents' Organisation (YPO), the World Presidents' Organisation (WPO) and the Chief Executives' Organisation ( CEO). Also, activities like 'EO Groups' enable entrepreneur to start a group and work with their peers to tackle financial issues. On the other hand, there are also speakers from all spheres of life, like Tim Sebastian, MJ Akbar, to hardcore businessmen like Gautam Singhania for discussions on diverse topics to make it an enriching experience for the entrepreneurs.

Runway to Success

Puneet Kaura, Executive Director, Samtel Display Systems (SDS), is the scion of the over Rs. 1,200 crore Samtel Group. Passionate about planes, Kaura decided to spread the group's wings into the defence avionics space. SDS manufacturers high-tech products for avionics and military applications.

His is a success story of a private sector's entry into the Indian defense manufacturing space. 33 years old Punnet Kaura's SDS was launched in 2004 and manufactures cockpit displays and systems for military as well as commercial aircraft. A graduate in from Bentley College in US Kaura, after a stint at Samtel Electron Devicen is Germany, returned to India 2004.

It begun with the signing up of a Mou with the Defense Research Development Organization in 2004 to develop indiginous technology for cockpit displays for Sukhoi aircraft. Today, SDS is the only private company in India that manufactures avionics products and equipment for military as well as commercial aircraft.

But what fuelled Kaura's passion to get into avionics? "I went to an air show when I was very young. When the fighter jets flew over my head, I was so excited. That was the beginning of this passion," recalls Kaura.

The product portfolio of the business is impressive. Kaura started with manufacturing cockpit displays and is now diversifying into avionic suites. He is also getting into products like electronic warfare suites or certain high-end avionic products that are used by both fighter jets and commercial jets to become a complete avionics company.

Ask him the being the man behind the SD-HAL joint venture in 2006 (the first public-private partnership in defense avionics) and Kaura says, "This JV was really our first brick into the defense world. Samtel-HAL Display Systems is a company which is required to manufacture cockpit displays for different HAL programs. Our idea is to create a centre of excellence in India which would manufacture cockpit displays available for all Indian platforms".

Kaura further adds that in the defense sector per se, the India government is planning to spend about RS 4.5 lakh crores over the next five years. Another major objective of the Indian government is to create self-reliance in the sector. "That's where we come in. In some cases we are partnering with the world class players to bring in the technology, then localize it. In some cases we are doing it ourselves, like we did with Sukhoi. But as we move forward, there is a lot of potential of growth in the coming years," says Kaura.

SDS also entered in to another JV with Thales Airospace in 2008, the sixth largest aerospace and defense company in the world, Thales Aerospace holds a 26 percent stake in the JV. The major focus of this JV lies on the developing helmet-mounted displays and other avionics systems for fighter aircrafts. "We are venturing into some high-end sensors that the Indian government is looking for. We are also interested in venturing into full cockpit suites and avionic suites."

He is focused on the Thales point venture to sell in India and then exploring opportunities globally. He hopes to start production next year.

SDS currently accounts for about 10 percent of the group’s turnover, and Kaura has ambitious plan to take it to 50 percent in the next five years. But how exactly is he proposing to do this? “The Indian defense market is growing. We have some of the best partners in the world to bring technology into the country. And then there are offsets which will encourage a lot of global players to buy back from India. And then all that is combined, my goal seems very reasonable,” explains the young entrepreneur.

But what about the new defense procurement policy? “In defense, the offset ranges between 30 percent to 50 percent on the deal. It’s known that we are partners with the Mirage 2000 upgrade with Thales, we are partners with many U.S. pursuits like the P8, the Boeing, some programs with Lockheed Martin etc. So, some global majors are already tying up with us for different pursuits and we are now engaged in defining the work scope. As these programs unfold, the work will start. Some of it will kickstart this year and some of it will come in next year,” explains Kaura.

The product lines that this entrepreneur is expecting to work on include displays and some other defense avionics products. The next step for him is to go beyond just LRU’s to do a full system manufacturing.

Through strong partnership worldwide, SDS has built a robust long-term growth plan. In the pipeline are plans to upgrade displays in Airbus 320, 330, and 340 aircraft and with its recent partnership with SAAB Avionics, Kaura is also eyeing manufacturing Head Up displays. He hopes to touch the Rs. 500 crore mark by 2016.

He has already diversified into military and navy products. Another areas he’s interested is certain technologies that he is developing in defense which can be utilized for commercial usage as well.

With the U.S. and the U.K. being the biggest markets for aerospace industries, Kaura is now planning to expand the majorly into the U.S. market. “Our idea is to provide some technologies we can manufacture here locally, hopefully more competitively than the global majors that are already supplying them in the U.S. markets,” says Kaura.

There have been a number of challenges that Kaura has faced over the years. "This industry is different in the sense that it needs a lot of patience. The turnover took five years to come, it does not happen overnight. It takes time to mature your project management, to start delivering the aerospace standards which is really the epitome," he says.

So, does he aspire to be the frontrunners in the aerospace industry? "The aerospace industry is very wide. Avionics is just one part of it. I think anywhere between 25 perfect to 35 percent of value of an aircraft is avionics. And we are really working on that space now. Engines and mainframes are not the one we are interested in. We are expanding the product portfolio. We are expanding the depth of our technology which is the main focus of us. And once we do that a very large portion of the 35 percent of an aircraft can be captured by us," signs off Kaura.

Q. How important has it become for new-age (Gen X and Gen Y) entrepreneurs and business leaders to network with their peers and competitors on a regular basis?

The mindset that you bring to your business in essentially a product of your background. If you are a first-generation entrepreneur, for instance studies and general observation tells us that they will be more hands-on. On the other hand, fourth-generation entrepreneur has been brought up in such an environment that he/she would be acclimatised to play a supporting role, and leave the day-to-day running to the professional staff. It has become important for entrepreneurs to actively engage, learn and grow form each other’s experiences to achieve greater business success. Peer-to-peer learning is the real learning for an entrepreneur, much more important than classroom lessons. Research shows people can learn best from experience sharing.

"Entrepreneurs embark upon their journey with an innovative idea, but don't always have a clear direction"

Rajiv Deep Bajaj, Communication Chairman, Entrepreneur's Organisation - New Delhi Chapter and Vice Chairman & Managing Director, Bajaj Capital Ltd. talks to Yasmin Taj about the incessant need for entrepreneurs and business leaders to network with their peers and competitors to derive valuable learnings.

Q. Since when has this trend gained impetus in India?

Indian entrepreneurs are now realising the importance of social entrepreneurship and shedding old traditional ways of management and instead, are opting for collaborative approach in business enterprises. The global nature of the networked technology sphere has the potential to foster global thinking and cosmopolitanism.

While our business objectives are the same, which us add value it society and create profit making ventures in turn, our way of doing it is different because of our cultural differences from the rest of the world. The West is an “I” society, they are more individualistic. We are a “we” society; we live for the family; in rural India, we live for the community. Most entrepreneurial ventures in India are family-run and not professionally run as in the West; in the West, they segregate ownership from management whereas here there’s a strong alignment between the two.

Q. Why is this trend catching up amongst entrepreneurs so rapidly?

Entrepreneurs now look at peer networking as a way to learn and grow form the advice and experience of other business owners. What makes peer interactions work for entrepreneurs is the simple support they provide. There is a latent need for entrepreneurs to learn and share with each others. Peer forums provide valuable outside perspective to specific challenges. This collaborative approach allows members to teach each other; improve attitudes, motivation and learning. This concept generates a proactive approach towards business–related issues unlike, other methods (like conferences, seminars, lectures), which just initiate reactive approach among entrepreneurs. Entrepreneurs embark upon their journey with an innovative idea but don’t always have a clear direction. Here in comes the role of peer networking, which helps them target their audience.

Q. What are the various ways through which new-age entrepreneurs are networking and connecting with people in their respective fields if interest?

The application of computer technology helps an entrepreneur in his/her venture. Through the use of the Internet and some social networking sites, entrepreneurs use the so called on-line business, which is very effective for communication” and networking with other entrepreneurs and related people. Online business networking allows for connecting and creating opportunities on the Web. Networking events also provide an opportunity to meet and interact and interact with like-minded people.

No Longer A lonely Path

How networks are helping entrepreneurs share the business journey

Chitra Narayan: Mr.Rrajiv Deep Bajaj, Vice-Chairman and Managing Director of Bajaj Capital, was at business cross road some time back. His dilemma: how he and his brother Sanjiv could grow the business founded by their father Mr. K.K. Bajaj - what should be the strategy? Should one go for the listing in the market or not?

Help came from the peer to peer networks he is member o - the Entrepreneurs’' Organization (EO). At one of the forum meetings, he posed this question to his peers, and was promptly mentored. “I got a three dimensional view with all the options, pitfalls ahead. Now, I have a clear three year plan for the company," he says, delight.

As India gets into the entrepreneurial superhighway, more and more networks such as EO and The Indus Entrepreneurs (TiE) and handholding start-ups and mid-level companies, taking them up the growth ladder - saving them the big expense or hiring consultants. but why so many networks and does it make sense to the part of more than one?

DIFFERENT FROM OTHERS

Mr. Bajaj, who is also a TiE member, things each network has its own distinct advantage. He claims that the EO is a bit different from other networks because it not just tackles business problems but personal ones to. Besides, we engage spouses and families too and have a special programme for spouses, he says, “we also do a lot of personality development and invest time on issues like how can industry cope with naxal problem," he adds.

Also he points out, while at TiE the biggest issue discussed are how to raise capital at EO, where more members are from mid and large-size companies than start ups, the issues are more related to growth. "We are also faced with issues like evaluating your own role in business - should one step back or step forwards, when to professionalize and so on," he says. Mr. Bajaj is a board member at EO's Delhi Chapter ( EO has nine chapters in India).

To be a member of EO, one has to be an owner, founder/co-founder or controlling shareholder of a business that grosses $1 million or more annually. Also unlike TiE, where membership fee is nominal, here the membership fee is steep (Rs. 5 lakh is the induction fee besides which one has to shell out $1,400 to be part of the global EO network and an annual fee of $700). In addition, there is a rigorous selection process. "This varies from chapter to chapter. In the Delhi chapter, only one is four candidates who apply for membership is selected." says Mr. Bajaj.

He rejects suggestion that EO is a clubby organization. "We are selective," he admits. "But that's because, we want to avoid or passive membership. We only choose members based on the contribution he or she can give in the organization and much we thing they will gain from being part of the network." members have to set aside half a day in a month for EO activities, he says, besides which there are retreats (for instance a trip to Japan was organized) where they can bond more.

With affiliations to all the other 'O' organizations - the Young Presidents' organization, the Worlds Presidents' Organizations and the Chief Executives' Organization (CEO) - Mr Bajaj describes how being part of the network can help a member rub shoulders with the likes of Mr Mukesh Ambani and Mr Azim Premji during exchange events.

So - unlike TiE which is so visible - why have we not heard much about EO till now? "That's going to change now - we now have a public relations and communication strategy," says Mr Bajaj.

EXECUTIVE PROGRAMME

Now, also taking a cue from the global EO, which offer an Entrepreneurial Masters Programme (EMP) at the Massachusetts Institute of Technology in Boston for its members, the India region is stepping up educational activities. IT has introduced an executive Business Growth and Leadership Programme at the Indian School of Business in Hydrabad that is custom made for its members.

As another EO member Mr Shamit Khemka, DEO and founder Synapse India, puts it, the enterpreneurial path doesn't have to be a lonely one. "There are tonnes of people who can help you or your journey - you just have to know where to look."

The Entrepreneurs’ Organisation, a global network of more than 7,500 entrepreneurs across 118 chapters in 40 countries, organised a seminar in Delhi recently with professor Nandini Vidyanathan, co-founder of CARMA, who spoke on the Indian way of entrepreneurship in India. Amongst prominent speakers who attended the event were Riju Junjhunwala, managing director, Bhilwara Energy Ltd., and executive director, HEG Ltd.; Ms Ashna Singh, director, Ashna Gallery; Aditya Burman, general manager, Dabur OncQuest; and Deepak Jain, senior executive, Lumax.

Picture (Left to Right): Anurag Rathi, director, Rathi Steel Bars Ltd; karan Bhatia, executive director, Uttam Air Products; and Lalit Aggarwal, managing partner, Manish Indutries

Building on passion

Bajaj Capital’s MD talks about the ‘Indian way of entrepreneurship’, and why training is so important

Shreya Ray

There might be some truth to the stereotypical view of Indians being more emotional and passionate, at least as far as businesses are concerned. Discussing the “Indian way of entrepreneurship”, Rajiv Deep Bajaj, vice-chairman and managing director of Bajaj Capital, and communications chairman of the Delhi chapter of the US-based Entrepreneurs’ Organization (EO), says training entrepreneurs is essential in India. He believes that drawing from Western models won’t help much given the differences. EO is a global network of more than 7,500 business owners from 40-odd countries, which provides learning opportunities across countries and enables entrepreneurs to solve business challenges, learn in different ways, network locally or globally, and much more. Edited excerpts from a phone interview:

What do you mean by the Indian way of entrepreneurship? How would you say it compares with the West?

Business basics: Simply copying Western models won’t work.

There is a difference. While our business objectives are the same, which is add value to society and create profit-making ventures in turn, our way of doing it is different because of our cultural differences from the world. The West is an “I” society, they are more individualistic. We are a “we” society; we live for the family; in rural India, we live for the community. Most entrepreneurial ventures in India are family run and not professionally run as in the West; in the West, they segregate ownership from management whereas here there’s a strong alignment between the two. Given the vast difference in both styles, our attitude and way of working is different and has to be different—if we simply copy Western entrepreneurial models, it simply won’t work.

How do the diverse backgrounds of entrepreneurs make them different? For instance, how would a first-generation entrepreneur be different from a fourth-generation one?

Your background plays a huge role in business: The mindset that you bring to your business is essentially a product of your background. If you are a first-generation entrepreneur, for instance, studies and general observation tell us that they will be more hands-on. On the other hand, a fourth-generation entrepreneur has been brought up in such an environment that he would be acclimatized to play a supporting role, and leave the day-to-day running to the professional staff.

Do you feel that India lacks training facilities for its entrepreneurs?

I absolutely agree. Our strength is also our weakness. The fact that we’re so high on emotions in our management is ultimately the reason we ignore processes. We do not go into details of understanding the process of management, and hence we make mistakes in our respective ventures. There are few platforms where entrepreneurs can learn from each other and share experience, and our organization, EO, attempts to change that.

Can anyone be groomed into becoming an entrepreneur, or do you need some inherent qualities?

You need the attitude of an entrepreneur, which is the mindset of risk; you need to understand the risk-reward equation, and that for high risk there is high reward. If you belong to a conservative school of thought, and are used to a fixed-return mode, then an entrepreneurial venture is perhaps not for you.

What is the kind of training EO can equip budding entrepreneurs with?

Training is essentially making someone aware of the issues an entrepreneur should be aware of while running a business, such as HR, tech, operations, processes, marketing, sales, areas that are part of any business. As an entrepreneur, another essential aspect—that they miss out on—is peer-to-peer learning, which is the real learning for entrepreneurs as opposed to classroom learning. They need to share their experiences because whether they have a Rs1 crore business or a Rs1,000 crore business, the generic management issues and challenges are the same.
Research shows that people learn best from experience sharing. The registration and application of that learning is much better. At EO, we provide such platforms for students. EO Delhi has 100 members, and this breaks up in sub-groups called forums, which then meet periodically and meet the informal board of directors to get feedback about their business. This board consists of experts in every field: HR, finance, marketing, and so on.