‘I’m fairly hands-off in my approach’

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: led to losses within one of their group companies ultimately leading to a dispute between the brothers and the nationalised banks. The nationalised banks led by RBI went on to ban the entire group because of the inability of one of the company’s to pay its outstandings.

Ever since, Modi’s approach to business has been largely conservative but courageous. He took the bold step of initiating joint ventures and alliances with European and American companies in the 1980’s when it was not as much the norm as it is today. Modi’s logic was simple, “In order to build modern plants, have world-class partners and obtain a technology edge to succeed, the group needed to form alliances with overseas companies”.

Modi’s personal work ethic does not allow him to put himself before the organisation and he sees his role as a trustee of the organisation. It’s little surprise he expects the best from his employees. “I expect sincerity from my people and once I have shared the strategy to be followed, I’m fairly hands-off in my approach.” He also prides himself on being a quick decision maker and if an idea is not working he does not keep trying to beat up on a dead horse idea. He personally spends his time strategising and expects this to be followed by strong execution.

In fact, it was ability that allowed Modi to recognise in early 80’s that pharma was the field of the future and went on to form Win Medicare in collaboration with Sterling Drug USA in 1982. Although the beginnings were humble, (a school was used as the first factory), the company progressed rapidly. In the early 1990’s, Modi enhanced his pharma practice focusing on specialty products through a 50:50 Joint Venture with privately held Mundipharma group. The track record speaks for itself, growing from Rs 67 crore in 1993 to Rs 421 crore in 2008.

Today, the Modi conglomerate stands at eight companies with cumulative revenues of Rs 1,800 to Rs 2,000 crore. The company’s debt exposure is to the tune of Rs 200 crore. Sugar, cosmetics, pharma are the main areas they are in now and are looking to enter the liquor market.