Paul had the right idea, but wrong execution
W ith a personal current net worth of $2.2 billion, he is famous as the Chairman of the London-based Caparo group (also a philanthropist & prominent politician). But Swraj Paul’s true moment of glory was in 1983 when he gained infamy as a corporate raider with his bids on Escorts and DCM (then known as Delhi Cloth Mills). Paul, being a good friend of Indira Gandhi, the then Prime Minister of India got news that DCM had stepped back from the fertiliser complex for which a license had been granted to the company. And Gandhi supposedly asked Paul to step in to replace DCM. Paul launched hostile takeover bids for both DCM and Escorts at that time. Paul lost against protectionism, as he not only had to face a major opposition from both the families (Shrirams & Nandas) but also from various government run financial institutions like LIC and Reserve Bank of India, (particularly Dr.Manmohan Singh, then Governor of RBI). Even Paul admitted once in an interview and said, “At that time a lot of people thought too narrowly and missed the boat.”
W ith a personal current net worth of $2.2 billion, he is famous as the Chairman of the London-based Caparo group (also a philanthropist & prominent politician). But Swraj Paul’s true moment of glory was in 1983 when he gained infamy as a corporate raider with his bids on Escorts and DCM (then known as Delhi Cloth Mills). Paul, being a good friend of Indira Gandhi, the then Prime Minister of India got news that DCM had stepped back from the fertiliser complex for which a license had been granted to the company. And Gandhi supposedly asked Paul to step in to replace DCM. Paul launched hostile takeover bids for both DCM and Escorts at that time. Paul lost against protectionism, as he not only had to face a major opposition from both the families (Shrirams & Nandas) but also from various government run financial institutions like LIC and Reserve Bank of India, (particularly Dr.Manmohan Singh, then Governor of RBI). Even Paul admitted once in an interview and said, “At that time a lot of people thought too narrowly and missed the boat.”
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human FaceProf. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
