Looking Back
A post-graduate in English literature (1965), I passed the written round of the IAS examination but was stumped at the interview. Contemplated setting up a small industry of my own - had always felt I had the necessary flair and vision. But lack of resources was a serious hitch. My father, a bank employee, had a single asset, our house in Model Town. Putting that at stake as a collateral to get a bank loan was simply unthinkable.
Instead, thanks to my post-graduate degree, I started off in 70 as a professor in Delhi University, earning Rs 500 a month.
Starting Out
The idea of acting as a real estate broker - organising office premises for banks on commission basis - surfaced from my interactions with many bankers. This venture as such needed no capital investment on my part to start with. So in 72, I was operating from home and simply cashing in on my contacts with bankers and property owners.
However, things were far from easy. And although I was, technically, not on the streets I went through many cash-starved days. Eventually, after running around for nearly six months, I finalised my first deal for Allahabad Bank. My commission - half a months rent worth Rs 4,000.
Make or Break
The income was quite inconsistent. There were times when clients came in bunches, at other times, there were long lulls. But slowly, I developed a good network with property dealers and owners and I could give banks an assortment of premises to choose from and things started looking up as my client list rose to around 20 banks.
In 1979, with a lakh of my savings I purchased an office, about 400 sq ft in Nehru Place. The staff were a peon, a receptionist and a typist. Last year, I decided to dabble in real estate more seriously and set up Sunrise Estates with an equal partner. We started investing in all kinds of property in mainly Delhi and Faridabad and then sold them. Nearly 70 per cent of my earnings would be ploughed back into the business.
Turning Point
Around 84, more than a decade after I started, my net assets crossed the million mark. At this point I decided I to quit the real estate business and utilise the capital I had to set up my industry, a dream that had been long put on hold. I set up Rockland Leasing Limited to ensure a backup of capital for my plans. Starting with a paid up capital of Rs three lakh and a registration for Rs 10 lakh, all my savings alongwith some capital borrowed from friends and relatives were coughed up to meet this amount.
Continuing with the same staff and office premises, working 18-20 hours a day (I still do that), I standardised all the required documents. So much so that those documents are still valid today. Having faced similar restrictions in the past, I firmly refused to demand any collateral and was willing to finance any and everything under the sun. Yes, it took time to verify the clients credentials but I was in no hurry. No questions of instant finance facilities arose - the risks were too high.
The first client, an architect in Nehru Place itself, was give around Rs 50,000 to finance two air-conditioners. And there was no looking back - getting clients was never a problem. We earned a net profit of around Rs 17,000 in the first year itself.
Branching Out
In 86 we added more offices in Janakpuri, Lucknow, Chandigarh consequently increasing the staff. Today, we employ around 300 people.
I gradually sold all my assets and put the cash into the company. In 88, I set up my second company, Rockland Thermionics for making welding electrodes in Kosikala (Mathura) with the help of UPSIDC. The 3,200 sq m area bought in 89 for Rs 1.5 lakh was entirely from my savings.
Slowly, we grew to a group of 11 companies. I had good consultants who advised me on the merits of various industries, which state offered what incentives for starting which industry. I would then personally do a survey and, finally, feed in the cash and get good working staff.
The net profit of the leasing company alone in the last financial year was Rs 2.62 crore while overall we made not less than Rs four crore.
Rules to Play By
Money was not minted overnight, nor was it easy to come by. I give money its due importance because it is our raw material. But, equally important, are ethical values - the belief in fair play especially as finance companies always face the question of respectability. We survived because of our good intentions, determination, tenacity of purpose and hard work. Sometimes, my fetish for growth makes me impatient with people who fail to keep pace.
To be successful it is important to be able to take the right decisions at the right moments. My biggest plus is my memory and banking on the advice of a good team and my own common sense. I never felt the need for any management or financial degree because everything was learnt by experience and that is the best teacher.
(As told to Sarika Dandona)
