Indore’s Man of Steel

Dr. Ramesh Baheti’s rise to fame and riches is classic example of what positive thinking can achieve. It can push a ne’er good backbencher (which is what he was) to the centre stage to soak in the applause.

At only 42 years of age, the short and bespectacled Dr. R.B. Baheti may not be (or may be?) the richest person in Indore, the premier industrial and trading centre of M.P. He is also one of its most respected and renowned citizens. This respect and adulation for Ramesh Baheti is not merely for his entrepreneurial achievements but because of a genuine feeling of care and concern that he has for the city and its people.

The story of this self-made-industrialist could easily pass off as a work of fiction meant to inspire others but for the man, it took years of sweat and toil to cherish his dreams of steel.

Born on the 2nd January, 1946, Ramesh was the second child and the first son of Mr. And Mrs. Babulal Baheti, a teacher-turned-textile businessman (which he is even today) in Indore.

Being a part of a large Marwari joint family, no particular attention or prominence was given to young Ramesh, which he remembers, though with a tinge of sorrow. ” I was just an average boy with no signs of any spark in me. As children, we were brought up under a lot of restrictions-no colours on Holi, no crackers on Diwali and all that. So in terms of specific memories, with due regards to my parents, I would say that I did not enjoy my childhood. In fact, I very much miss those days when I see my kids growing up and the amount of attention we pay to them.”

Not much of importance or thought was given to the kind of schools the children were put in as long as it was a school of sorts. Though all the schools that Ramesh studied in were run by private organizations, but there was not much to distinguish them from the Government pathashalas. Ramesh was one of the many faceless students, passing through school without any distinction or detention. Until, 1960. That year in his 10th, he performed miserably and was detained despite a couple of tuitions and also an attempt in the supplementary examinations. ”It was matter of great social humiliation and disgrace for me. I just did not know what to do. Even thoughts of committing suicide flashed across my mind.” It is usually at such decisive and tense moments of life that a person either gives up or resolves to start afresh and fight. Ramesh chose the latter and for good. ”The desire to prove my mettle was so overpowering that I just could not give up. I firmly resolved to give my personality a complete facelift from that of a shy back bencher to that of a confident top notcher. All this did not come to me from any person or book-it all came from within.”

As the first step in the process of metamorphosis, Ramesh decided to change his school to bury his memories of the failure and start from square one.

In the first monthly test, the boy who was unable to pass only a couple of months ago amazed everybody, including himself. ”For the first time in my life, I stood first in the class. Those feelings of achievement I don’t think I can put them in words. ” Ramesh started participating in debates, essay contests and almost always came on top of the pack. ”When I stood first in the annual examination, I literally became the hero of the school.”

Like anybody else, Ramesh Baheti’s career is also marked with important events-but in parts (which he names turning points). In 1960, when he switched over to a new school in search of greener pastures, he met a boy who was to have a very deep and lasting impression on his career and the future, Kailash Garg. Kailash was from Dhamnod, a town near Indore and had come to Indore for education. He was also a student of the same class and school as Ramesh. Neither of them is able to explain what drew them close but their friendship, affection and liking for one another resonated to an extent which was beyond the relationship between the best of friends. They studied together, ate together, stayed together all the time and parted only at the time of sleeping; and this went on for years. The closer Kailash comes to describing their relationship, is, ”I think it is a spiritual bond. A gift of God if one could say. Mind you, we make no sacrifices for one another to strengthen our friendship but the urge to work and live and spent time in the company of one another is never quenched. The childhood friendship transcended the bounds of paternal family, sect and background and the two with their individual families now live together in their new house setting a sterling example in these troubled times of what friendship ought to be. Even at this age, they eat in the same thali whenever at home and look forward to spending as much time as possible together.

Once Ramesh started tasting success, he made sure that he stayed ahead. In the class XI Higher Secondary Examinations, he topped the Commerce stream in the entire state. Again in B.Com, he featured prominently in the merit list.

But the best came on 12th May, 1967 when Ramesh topped the M.Com results of the University of Indore and was awarded a Gold Medal. ”12th May 1967 could probably be termed as the biggest turning point of my life. On that very day, when my M.Com, results were announced, I got married to Rajni.”
Ramesh wanted to marry into such a family which could not afford dowry, so that the question of giving dowry just did not arise. ” I WAS WELL AWARE THAT MARRYING IN AN UPPER CLASS FAMILY WOULD CERTAINLY MEAN THAT EVEN IF I REFUSED DOWRY AT THE TIME OF MARRIAGE, GIFTS AND OTHER THINGS WOULD KEEP COMING AMOUNTING TO THE SAME IN DUE COURSE OF TIME.”

Also in a deliberate attempt to break down caste barricades, Ramesh wanted to marry outside his caste and had even selected a Jain girl. As expected, there was a lot of resistance from the family, especially from Ramesh’s mother, a very religious minded women. Ramesh almost succeeded but for a devastating trick his mother played on him. In those days, a female astrologer was quite popular in Indore. His mother managed to arrange Ramesh to visit the astrologer. In a most professional and matter of fact manner, the lady predicted to Ramesh (little did Ramesh know then it was his mother’s commands she was obeying) that if he marred inter caste, his mother would commit suicide.

Imagine the 21-years-old chap, already tense with his decision and trying to stick to it faced with such a frightening situation. He grew cold feet and conveyed his defeat to the mother of the Jain girl.

When the family found Ramesh compromising on one count, they also respected his wishes and started looking for a girl from a family of modest means ”I had never seen Rajni – my fiancée – even six months after our engagement though we had exchanged a few letters.”

Many claim though Ramesh vehemently denies it, that it was his marriage to Rajni that changed his fortunes. ” I would not say that my wife brought me good luck or anything of that sort. But at the same time, I would definitely give Rajni the complements for being an excellent companion and friend in all my ups and downs. In fact, it was not just that I married her that things changed but her cool temperament, patience and the pleasing relations we share that must have been instrumental in my career.”

After an excellent performance in his post graduate examinations, Ramesh’s interest in academics was aroused. He started delivering lectures on Commerce and allied topics in the local colleges. At the same time, he registered himself for a Ph.D. ”As I had some first-hand knowledge of textile mills as the family business was in textiles, I decided to work on ‘Cotton Textile Industry in India’ as my topic for the doctoral research.”

After a long interval of seven years (probably due to his commitments) Ramesh Baheti was awarded a Ph.D. In 1974. A question creeps up almost immediately ‘Is the doctorate only an ornamental degree or does it really help?’ Dr. Ramesh Baheti clarified, ”The higher you study, the more you acquire the power of analysis and reasoning which can very well be utilised in one’s own sphere of activity. It definitely gives a person better standing. At least, it did help me a lot in my career so one can’t just pass it off as an ornament to show off on the visiting card.”

Although Ramesh had passed his academic examinations with flying colours, but to carve one’s niche in the real harsh world of money and wealth was an altogether different proposition. When in college, Ramesh had started attending to the family business quite seriously. But he had decided that the family business was not going to be his business. One, the scope of growth was definitely limited and did not justify proper utilisation of Ramesh’s talents. Two, even if he were to work hard and make the business grow, it would just be the usual label of ‘carrying on the father’s trade’ and nothing more. ‘My father was aware that if I did not have good option, I would take up some managerial job in a company.” Coincidentally, there was a sick small scale unit in Indore, Steel Tubes of India Pvt. Ltd, manufacturing steel tubes. The unit had incurred heavy losses and was served with various notices and warrants for economic violations. ”My father gave me Rupees One and a half lakhs and Kailash’s father gave him a Lakh of rupees. Blindly, we purchased shares of this company and started looking after it.”
With practically no previous experience in engineering industry, or any theoretical knowledge, Ramesh Baheti was caught plumb on the wrong foot. ”I did not know what we made, what was the technology, where was the market. It was just sheer madness to go into such an industry.”

This was November, 1967, Ramesh recounts that for a month, there was not a single day when he did not cry in his cabin repenting his decision. But, like before, the desire to triumph overcame the feeling of remorse and repentance and operation salvage commenced.

For three gruelling weeks, he read every word in every single file handed over to him by the outgoing management. He wanted to understand the company’s history, its problems and everything connected with it. The process was tiresome but the knowledge that emanated gave him the clue for his future actions.

”I made my first business trip on the 24th of December, 1967 to Hyderabad, Bangalore and Madras. It was, surprisingly, a tremendous success. I got so many orders that the entire scenario changed from despair to hope.”

Though in the first year, he incurred a loss of Rs. 2.62 lakhs, but he managed to break even the very next year. In 1971, the fourth year under the new management, STI showed a modest profit of Rs. 2.01 lakhs. From a production of only 454 tonnes and turnover of only Ten lakhs in 1967, the plant produced around 4000 tonnes in 1974 with a very respectable turnover of 144 lakhs. The company had come of age.

”By 1975 we had built a reasonably good surplus and capital funds and were also getting a lot of optimistic queries and orders. To fulfil all those, we realised that our plant and machinery had become obsolete. The Government was insisting on industrial development in backward areas. So we scrapped the plant at Indore and set up an entirely new plant with updated technology at Dewas, 35 kms from Indore. Not a single chair or table was carried from Indore to Dewas. All that went was the name and the men behind it.”

What made Ramesh Baheti, with an academic background in Commerce, click in an engineering industry? ”It was all a matter of common sense. As a technical man can look after the commercial side, so can a commercial man handle the technicalities with ease. If he is ready to apply himself. It is the sincerity, dedication and integrity of purpose that are the essential ingredients. And above all; the grace of God always makes the difference between an also ran and the winner.”

An incident which Dr Baheti remembers quite distinctly is his first encounter with drinking in Calcutta in 1972. While on a business trip, he felt that if he shared a drink with the official sitting across, it could help his business interests. So he had his first sip. ”But now my intake is very infrequent, and only for the sake of others”. Is this an argument not rather flimsy and baseless? ”Yes, it is. Social drinking is not any criteria for your career graph to grow. There are many other important requisites.”
The third time, one can mark the turning point syndrome in Dr Baheti’s life is 1982. The turnover of Steel Tubes of India had reached around Rs15 Crores and a need for an overseas plant was felt to strengthen the base of the company. Singapore, with its free port facility and very conducive business environment seemed ideal. To set up a plant abroad, two prime requisites were capital and adequate supply of raw materials. With Dr. Baheti’s charismatic personality and his able persuasion, Steel Tubes of India created a virtual record of sorts by tying up with two Japanese giants as partners for Steel Tubes of Singapore Pte Ltd. With Dr Baheti as Managing Director. ”Kobe Steel with a turn over of around six Billion Dollars and Tokyo Boeki Ltd., with an annual turnover of around two Billion Dollars thought it prudent to join hands with Steel Tubes, a dwarf having a turnover of around 20 million dollars to set up the plant at Singapore.” What was probably most remarkable was the fact that the technology and know-how was all supplied by Steel Tubes of India Pvt Ltd, even after a coalition with the Japanese, who are recognised as world leaders in steel.

Taking a quip, Dr Baheti remarked, ”In terms of licensing policy, redtapism and working conditions, if Singapore is named as Ram Rajya, then Inida would not be wrongly called as Ravana Rajya.” Evidently so. His plants at Singapore produce more than 100 percent of the installed capacity whereas those at Dewas always fall short due to power failure, erratic raw material supply and all that.

In the same year (1982), the plant at Dewas was at the threshold of a major expansion. In Indore to sustain the same, Steel Tubes of India, the largest producer of precision steel tubes in the country became public with a share issue which was received very warmly in the market.

Some quarters ‘allege’ that the growth of Steel Tubes is not due to the skills of Dr Baheti but because of his close contacts with the powers that be, especially the Chief Minister Arjun Singh. After a very long and thoughtful pause, Dr Baheti said, ”For us, there is no power base at the state or national level. Everybody has been kind and cooperative to us, in their own official way. Mind you, ours is the biggest unit in the state, barring MRTP and public Sector Undertakings. So you can say that there is a ‘son of the soil’ feeling for Steel Tube. If this is regarded as otherwise, well…”

Today, the STI group has combined turnover exceeding Rs. 75 crore The plant nourished by Dr Baheti today provides direct employment to over 1000 people and indirectly to over 10,000.

Dr. Baheti’s leadership, foresight and managerial skills are well acknowledged, but his piece de resistance is his man management. To him, ”The treatment and respect of values of others is not just an artificial management gimmic but a genuine feeling from within. The human being has to be treated as a colleague and not as subordinate in order for him or her not to feel like a commodity.” Three days out of six, Baheti and Garg go to Dewas in their staff bus along with other employees. At lunch, all have their meals together in the mess in a unique atmosphere of camaraderie and ease. Even the meals are a proper Indan thali lunch, unlike the usual executive grab of a cup-of-coffee and a slice to munch. Owing to the cordial relations between the staff and management, despite the large employee roll, nothing like a ‘trade union’ exists in STI. A senior assistant summed it all rather aptly, ”Dr Baheti is like a messiah to all of us.”

Another project, though personal in nature was launched in 1984, in which for once Dr. Baheti was not at the helm. ”Our new house owes all to Kailash. Right from conception to construction phase, he was the one who was actively involved. I just came here one fine day and started living in it!” he quips.
The large mansion with its slanting mock-tiled roof is such a sight on the busy national highway that one can’t possibly ignore it. Inside, the large expanses of white marble and the serene green of the creepers and Bonsai all around gives it the quality of a retreat. Indeed, it is the name of the house that Kailash Garg has proposed which is most striking and a revelation of their relationship ‘Sadbhava’.
When you ask him how he combines his business interests with that of his family, his answer is as expected. ”Whenever I am in Indore, I make it a point to spend my evenings exclusively with the family so that we do not drift away from each other. All this does call for an inherent time management, not the one written down in black and white, but the one planned out in the mind in advance.”

Dr Baheti is the father of three daughters, Rachana (20), Namrata (15) and Darpan (13) who are as much the loved ones of Kailash and Pushpa Garg as they are of their real parents. The eldest, Rachna is doing her graduation in management in England. Earlier, she was also awarded the best student’s award of the Daly College, Indore.

With only three daughters between Ramesh and Kailash, the ‘Sadbhava’ household is evidently without an heir. ”Well, as far as the girls are concerned, I am very clear that they can join their husbands’ businesses, if they wish, and not mine. And for STI, it has been our endeavour to institutionalise the organization rather than make it a personal affair. So whoever shall take charge in future will do so on their merit and not on lineage.”

Dr. Baheti himself is a workaholic whose chief way of relaxation is reading. ”Apart from daily diet of 7 newspapers, I love to read books on post war world politics and on management and nothing else.” And he says quite categorically that he has no plans to retire. The man of steel concludes, ”Never. Not only till my last day, but till my last moment, I shall make it a point not to stop working. After all, it is not all the sermons and preaching’s but the work that matters.’