Rai Bahadur Mohan Singh Oberoi: Father of the Indian Hotel Industry by Prakash K
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Rai Bahadur Mohan Singh Oberoi: Father of the Indian Hotel Industry By Prakash K. Chathoth, Ph.D. and Kaye K.S. Chon, Ph.D. ntroduction (“The Padma Bhushan is an Indian civilian decoration in Pakistan) for higher education, I A good majority of the hotel established on January 2, 1954 by the President of In- which he later abandoned to pursue graduates from institutions in hos- dia. It stands third in the hierarchy of civilian awards, a career. As a student in Rawal- pitality education in India would after the Bharat Ratna and the Padma Vibhushan, but pindi, Mohan Singh was mesmerized rate the Oberoi Group as their comes before the Padma Sri. It is awarded to recognize by the beauty of the best hotel in most preferred hotel company for distinguished service of a high order to the nation, in town in the early twentieth century launching their career. Such is the any field.” This definition is extracted from http:// - Hotel Flashmans- that he later regard aspiring hotel professionals en.wikipedia.org/wiki/Padma_Bhushan, verbatim.) acquired. have for this firm that it has re- M. S. Oberoi’s contribution as an hotelier is not His quest to start earning drove mained one of the most preferred only at the national level in India, but also extends to him to Lahore (now in Pakistan), hotel companies in India over the international level, especially within Asia. He has where he joined his uncle’s shoe several decades. It takes leader- contributed to the growth of the hospitality and tour- business. Although he was success- ship and vision on the part of the ism industry in various lands, encompassing countries ful in establishing himself in his firm’s management to achieve this such as Indonesia, Mauritius, Egypt, Saudi Arabia and uncle’s business, the factory closed status, and without doubt, the Australia. Oberoi was an entrepreneur and a visionary, down due to the Indian indepen- Oberoi professional would pay trib- whose philosophy towards life is reflected in the fol- dence movement in the late 1910s. ute to its founder, the late Padma lowing quote: Mohan Singh returned to Bhaun Bhushan Rai Bahadur Mohan Singh “When he was honoured with the Newsweek where he married Ishran Devi and Oberoi for setting the foundation Award in 1978 for making significant contributions had his first child during this time. on which India’s premier hotel to the world of business, the editor asked what mo- However, in 1922, as fate would firm has surged to its heights. In tivated him to become one of the biggest hoteliers have it, Mohan Singh, with not fact, the Indian hotel industry has in the world, Oberoi replied - The idea was never much money in his pocket, had to recognized M. S. Oberoi as one of merely to make money. The compulsion was to think flee Bhaun for the sake of his child its founding fathers, often refer- big, always to offer the best and let it happen. Name, as plague broke in the township. ring to him as the Conrad Hilton fame and profits would automatically come in.” (the- The pursuit of a government of India (ehotelier.com). India’s south-asian.com) (This quote was extracted from www. job in the Public Works Depart- great industrialist, the late Padma the-south-asian.com. See references for details.) ment drove Mohan Singh to Simla, Bhushan J. R. D. “Jamsetji” Tata, Every success tale has twists, and M. S. Oberoi’s India but he failed to qualify for under whose auspices the Taj Group is no different. His story is inspiring to every profes- the job. However, the visit to Simla of hotels blossomed, himself called sional, irrespective of his/her domain of expertise. introduced him to the Cecil Hotel, M. S. Oberoi “the country’s only His life story, his traits as an entrepreneur, a leader, where he landed his first hotel job as exclusive hotelier” (ehotelier.com). a visionary and his legacy are detailed in the sections a clerk, a hotel he would later call that follow. his own. Despite being overqualified for the job, he carried out his job Prakash K. Chathoth, Ph.D. is an assistant professor in the School M. S. Oberoi: Life Story task with ardor of looking after the of Hotel and Tourism Management Rai Bahadur Mohan Singh Oberoi was born in Chak- hotel’s coal supply and to ensure at the Hong Kong Polytechnic wal, Punjab (now in the Punjab province of Pakistan) that each guest had sufficient hot University in Hung Hom, Kowloon, Hong Kong; Kaye K.S. Chon, on August 15, 1898. He was barely six months old when water. His work ethics and dedication Ph.D. is a chair professor and his father passed away. He grew up under the auspices were traits that saw him grow on the head of the School of Hotel and of his grandfather, in Bhaun (now in Pakistan) who job, influencing Ernest Clarke, the Tourism Management at Hong Kong made sure that he received the best education and Manager, to promote him to guest Polytechnic University in Hung Hom, Kowloon, Hong Kong. upbringing. At age 15, he moved to Rawalpindi (now services clerk. Journal of Hospitality &Tourism Education Driven by his ambition to own India, in 1944, which included the Cecil Hotel in Simla in India at the time (the-south- a hotel, Ernest Clarke bought the that had once introduced him to the world of hotels. asian.com). He was known for Carlton Hotel in Simla, which he He then acquired the Flashmans Hotel, the first hotel refurbishing undervalued properties renamed the Clarke Hotel, while he had laid his eyes on as a young lad growing up in and converting them into hotels offering Mohan Singh the job of Rawalpindi. (e-hotelier.com), which he used as manager. Mohan Singh’s success as Oberoi realized the importance of managing the a vehicle to grow overseas. This the Manager led him to become the travel business and to integrate backward in the value is evidenced in the acquisition of working partner, and later, the owner chain. India received its independence from the British properties in Katmandu Nepal, of the hotel. Ernest Clarke went in 1947 and soon after, M. S. Oberoi set up his own travel Mena House in Egypt, and the Wind- back to England due to his wife’s ill- agency firm – the Mercury Travels – in 1948. It is one of sor in Melbourne, Australia. ness while selling the hotel to Mohan India’s leading travel agencies today (ASIA Travel Tips. M. S. Oberoi’s entrepreneur- Singh (the-south-asian.com). com) with over 300 employees in 15 offices in India and 2 ship skills are reflected in his marketing office in New York and Frankfurt (Mercury-in- strategy to diversify into the up- An Entrepreneur who dia.com). He founded the East India Hotels (EIH) in 1949 scale/mid-market segment in the “Dared to Dream” as the flagship company of the Oberoi Group to diversify late 1980s, at a time when the de- (“Dared to Dream” is reflected his business (India Infoline.com). In 1959, the company mand for first-class hotels in India in the title of the book by Karkaria, started flight catering operations, the first Indian compa- was on the verge of increasing. The B.J., 1992, “Dare to Dream: A ny to do so. The flight services facilities, located in Delhi, Oberoi Group was one among the Life of Rai Bahadur Mohan Singh Mumbai and Chennai, provide in-flight meals to airlines of first hotel chains in India to diver- Oberoi,” Viking.) repute (ASIA Travel Tips.com). sify into this segment. He launched “You think of money and you The multinational corporation was a new con- the Trident Hotels in 1988 by open- cannot do the right thing, but cept to Indian business in the sixties, which Oberoi ing the first hotel in Chennai, India. money will always come once you was able to establish when he bought the group’s first Since then, the group has grown do the right thing, so the effort international hotel in Nepal, the Soaltee Oberoi (the- into a chain of nine hotels including should be to do the right thing.” south-asian.com). In 1965, Oberoi opened India’s first two in the Middle-East. Further, the (ehotelier.com) (This quote was modern five star hotel, the Oberoi Intercontinental, Group has allied with Hilton Inter- extracted from www.ehotelier.com. Delhi. This was a unique venture, in that it was the national to co-brand the product See references for details.) first Indian hotel to ally with an international chain while combining the marketing ex- The opportunity to own the (The Hindu Business Line, Internet Edition, 2002). pertise of Hilton International with Clarke Hotel was not easy to pass This was followed by the Oberoi Sheraton in Mumbai the management expertise of the for M. S. Oberoi even though he in 1973, this time allying with another chain of inter- EIH (Trident Hotels.com). did not have the resources to own national repute, the Sheraton. While he succeeded to The philosophy of the firm to it. With his wife’s support (she grow his business into a chain of hotels, there were achieve excellence has been the mortgaged her jewelry) and money setbacks he suffered in his ventures. Due to the parti- cornerstone of its growth and de- borrowed from his uncle, M. S. tion of Punjab and the creation of Pakistan, he had to velopment instilled by its founder.