The Rane Group is one of the best-recognised industrial houses of India today. Beginning as a dealer for automobile, trucks and auto-parts in Madras in the 1920s, the Group has grown from The Story strength to strength, reaching the premier status that it now enjoys. How the Group managed the transition in the A Journey of Excellence various scenarios that the Indian economy presented, forms the thread of this story. In the pre- Independence era, when trading was more the norm, Rane was a name, albeit a small one, in the The Story business of automobile and truck dealership. There too, the company had to survive challenges such as the Great Depression and the Second World War. Sriram V has emerged in the last ten years as an engaging chronicler in two areas – Post 1947, India adopted a socialistic pattern of Carnatic music and the history of Madras society where the private sector was considered to be that is Chennai. An entrepreneur by of secondary importance as compared to the “This is the story of how a relatively small firm profession, he is a historian by passion and Government-sponsored behemoths. But at the same is well known for his writings, heritage dealing in distributing imported automobiles and time, there was a thrust given to the setting up of tours and talks. Sriram is one among the parts has gone on to establish itself as one of the enterprises that were into production as opposed to trading. It was in this environment that Rane, team of catalysts that helps put together best-recognised names and preferred business became truly a Group, taking up the manufacturing Madras Week each year in August to of various automobile components. The constituent celebrate the founding of the city. partners in the automotive industry.” companies created a market for themselves in India A regular contributor to The Hindu and the and abroad, even while they battled issues such as associate editor of Madras Musings, the labour problems, the licence-quota system and fortnightly dedicated to the city’s heritage, overwhelming Governmental control. he is also the author of five books – Carnatic The post-liberalisation scenario brought its own Summer, the lives of twenty-two exponents hopes and challenges. Rane, realising that quality (2004), The Devadasi and The Saint, the life would hold the key in the new markets that were and times of Bangalore Nagarathnamma opening up, embraced a whole host of initiatives (2007), Semmangudi Srinivasa Iyer - Life & leading up to the adaption of TQM as its credo. The Music (co-authored with V Subrahmaniam) Sriram V success of the TQM effort, which culminated in the (2008), Historic Residences of Chennai Deming award for several constituent units, saw (2008) and Four Score and More, the history Rane becoming a global name in the field of of the Music Academy, Madras (co- automotive components. It is on the platform of authored with Dr Malathi Rangaswami) TQM that the Group continues to build. (2009). The Rane Story is his first corporate This is a chronicle of success, that holds many a biography. Sriram V. lesson for several upcoming organisations and entrepreneurs of today. Rane’s All-India Presence Pant Nagar New Delhi Bawal Pune Medak Medchal Hyderabad Aziz Nagar Tumkur Bangalore Chennai Mysore Plant Office Plant & Offices Sriram V. Copyright © Rane Holdings Pvt. Ltd. Printed by Sudarsan Graphics Pvt. Ltd., Chennai Designed by Malvika Mehra All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form, electronic, mechanical or otherwise without the prior permission of the company. FOUNDER TR Ganapathy Iyer 1892 - 1946 THE RANE GROUP OF COMPANIES RHL Rane Holdings Limited RBL Rane Brake Lining Limited RDL Rane Diecast Limited REVL Rane Engine Valve Limited RML Rane (Madras) Limited RNSSL Rane NSK Steering Systems Limited RTSSL Rane TRW Steering Systems Limited KML Kar Mobiles Limited JMA Rane JMA Rane Marketing Limited Foreword It is a rare privilege to live through history that is still in the making. Writing the foreword was a humbling experience as you try to visualise the “distant past” and speculate on the "unknown future". Created in 1936, I assume Rane was one of the few “swadeshi” initiatives during colonial times. I would venture to guess the aims and aspirations at birth must have been quite humble and modest – for the creator and his family to make a living. Rane today has not only surpassed those but has survived as a successful business for seventy-five years. No business forecaster would have placed his bet on such an outcome. Currently, one of the foremost suppliers of automotive com- ponents and systems, Rane has won acclaims from several vehicle manufacturers within and outside India and its stakeholders. Such a reputation has been built through hard work and integrity of purpose. Opportunities and luck have no doubt played their part in large measure. Rane earned in early years its spurs as a reliable business entity. The trend was possibly set when in1948 a new but defective Renault car was recalled and the customer given a free replacement. Way back in 1920, TR Ganapathy Iyer, a high school graduate qualified in shorthand and typewriting, “went North” to Bombay from his dwelling in Trichur, Kerala and served as an employee in an auto parts distribution firm. His spirit of adventure not adequately quenched, he moved down to Madras and created a trading entity and called it Rane (Madras) Limited in 1936. The company was registered in the Madras Presidency with a share capital of Rs.1 lakh. An enterprise was born. iii Ganapathy Iyer died at the young age of 54 and was succeeded by his son-in-law LL Narayan (LLN), a student of Botany from the Madras Christian College; on the face of it an ill-suited successor. Legend has it that “Mappillai” could sell a refrigerator to an Eskimo. TGK Raman, the very young son of Ganapathy Iyer, had a more sombre and self-effacing personality. Directed undoubtedly by the helmsman, the culture and behaviour of Rane as an organisation has been subject of talk and admiration in industry and trade. Several employees have made significant contributions towards this and have also reinforced the value system. Seventy-five years of successful existence cannot be rationalised just through markets and technologies. Customer and employee- centric management, fair-mindedness, openness and transparency must have been the other ingredients. The most discernible watershed in the history of Rane was when it moved into manufacturing in the late 1950s. The national quest for self-sufficiency made this possible. The beginning was with engine valves and products were added on in subsequent years. The one initiative to move away from the automobile component business, the launch of a five star hotel, did not take off. Rane owes its success today to its core competence in the automotive markets. Seventy-five years of history have not been without trials and tribulations. There were times when industrial relations hit lows, businesses incurred losses; in retrospect these were for the betterment of the business and its stakeholders. The post-liberalisation era brought along with it challenges. Cultural and behavioural adaptations were required. New paradigms of customer expectations and technologies emerged. Built on foundations of “customer first”, Rane adapted with ease. iv No doubt new challenges will arise. The journey of continuous improvements must show the way. The underlying robust and dynamic processes will have to be renewed. The organisation will have to reinvent itself. Simplicity and integrity of purpose will have to remain the watch words. The principle of frugality to do more with less must be reniforced. There will be more dreams, frustrations and realisations. These are the ways of institutions that endure. On reaching this major watershed of seventy-fifth year, it was felt appropriate to archive the history hitherto. Sriram V., the well- known historian from Chennai was assigned the task. As the book evolved, there were new discoveries, which characterise Rane even to this day. An example is the free replacement of a faulty Landmaster car in the 1940s. Sriram’s diligence and untiring efforts are commendable. Although by no means, the last word on Rane, I still believe future generation of managers will gain through this archive. I place on record our appreciation of Sriram’s efforts, and friends and stakeholders alike who have made this possible. L Lakshman Chairman Rane Holdings Limited, Chennai 11 December, 2011 v Author’s Note It was sometime in 2009 that Mr L Lakshman called me over to his office and asked if I would be interested in documenting the history of the Rane Group. I was a little hesitant as this would have been my first corporate biography, all my previous books having been in the area of arts and history. But given my entrepreneurial background, I was interested and decided that I would have a go at it. Over much of 2009 and 2010, my Research Assistant Susan Philip and I, scoured the Minutes books of the various companies in the Group and interviewed several of those who were involved in the development of the conglomerate over the years. And slowly, bit by bit, the Rane story emerged. Documenting the Group’s early history would have been a challenge had it not been for two excellent sources. The first was Fast Forward, Sixty Years of Rane Madras, an account of the Group put together by veteran writer Geeta Doctor in 1995. The second was a veritable mountain of correspondence between Chairman Emeritus LL Narayan and his ‘poet, guide, philosopher and friend’ in the UK, Sidney Lewis.