Ramamurthy Thyagarajan, the founder of Shriram Group, is a prominent figure in the business world, yet he leads a remarkably simple and humble life. Known for his unconventional approach to finance, he established Shriram Chits, which evolved into a vast business empire valued at ₹1,50,000 crore.
A Different Kind of Wealth
Unlike many affluent business leaders, Thyagarajan embraces a philosophy that wealth does not necessitate extravagance. He resides in a modest home, drives a ₹6 lakh car, and intentionally avoids distractions like mobile phones. His fortune primarily comes from lending to low-income borrowers often overlooked by banks.
Early Life and Education
Born into a prosperous farming family in Tamil Nadu, Thyagarajan possessed a keen analytical mind. He pursued mathematics at both the undergraduate and master’s levels in Chennai and later spent three years at the esteemed Indian Statistical Institute in Kolkata.
Career Beginnings in Finance
Thyagarajan’s financial career began in 1961 at New India Assurance Co., one of India’s largest insurance firms. His two-decade tenure included roles at Vysya Bank and JB Boda & Co., gaining valuable experience in finance.
Identifying a Market Need
During his career, he observed a significant demand for loans among aspiring truck drivers and small business owners in Chennai. Recognizing that banks were hesitant to lend to lower-income individuals, he seized the opportunity to fill this gap.
Founding Shriram Group
At the age of 37, with support from friends and family, Thyagarajan founded Shriram Chits, focusing on providing loans to underserved communities for financing commercial vehicles. This innovative approach transformed his side project into a major financial institution, dedicated to inclusivity.
A Financial Giant with a Social Mission
Thyagarajan pioneered credit access for India’s economically disadvantaged, helping those in need acquire trucks, tractors, and other vehicles. Under his leadership, Shriram grew into a conglomerate with over 108,000 employees spanning various sectors, from insurance to stockbroking.
Philanthropic Commitment
In a significant philanthropic gesture, Thyagarajan transferred all his shares in Shriram companies to the Shriram Ownership Trust in 2006, highlighting his dedication to giving back to society and distancing himself from the allure of wealth.
A Unique Business Approach
Thyagarajan’s business model contrasts sharply with the traditional focus on affluent clients. Instead of relying on credit scores, Shriram Group evaluates borrowers based on referrals from existing customers. This strategy not only fills a critical market void but also fosters customer loyalty.
Innovative Compensation Philosophy
Thyagarajan believes in offering fair compensation to employees without inflating salaries. He aims to keep staff content without encouraging unhealthy comparisons with others, prioritising their well-being over market rates.
Today, Shriram Group stands as a crucial resource for many individuals, solidifying its status as a leader in the financial sector and embodying Thyagarajan’s commitment to social responsibility.
