Takeover artiste of former times

Raja, the `takeover' artiste
For a brief few years in mid-90s, he was the most sought-after guy by all – from distressed industrialists to media persons. From nowhere, this short and bespectacled man emerged as a ``new shining star’’ on the Indian corporate horizon. For a long period, this safari suit-clad so-called ``takeover tycoon’’ ran his durbar from a suite at Oberoi Towers at Nariman Point in Bombay. Ever since he bought into State Bank of Baneras (God knows how), Rajaratnam went on to acquire one `failing’ company after the other. Who was he fronting for? No one had any clue. Owner of every sinking entity was keen to palm it off to this willing buyer!  Why did he target ``ailing entities’’’? Till date, I couldn’t fathom his intention. Surprisingly, even renowned names in the Indian industry queued up to his doors, seeking him to play the `rescue act’!

Shining star

He shone only briefly, but disappeared quickly thereafter. I know not where he is now. None of his former associates could enlighten me of his present address. Just as he came, he moved into complete oblivion like his first buy (State Bank of Baneras)! When he was in limelight, he lived in style, though. They way he hired a NEPC plane and herded his entourage (comprising this writer and another senior journalist) to Tirupathi left none in doubt then that he had indeed arrived. From the airport, the plane-load of Rajarathinam’s men went in a convoy (several cars) up the seven hills to Lord Balaji’s abode for a board meeting of State Bank of Baneras!  Well, we two were the only journalists to get an exclusive briefing of the first board meeting of the Rajarathnam-controlled bank! Later, we headed for common date with Lord Balaji, jostling the queue with the owner of bank in Baneras!  Now, I am still searching for the whereabouts of this Raja who shone like ``Ratnam’’ once upon a time!

A reformer’s plight

http://www.thehindu.com/business/Economy/article3696875.ece

A reformer’s plight

These are tough times. These are different times, too. However, there is this irresistible temptation to compare different time zones. Two decades have gone by since the unassuming Manmohan Singh put the country on a mission mode. Brand Manmohan was synonymous with change. Deservedly, he was hailed as the architect of the economic reforms in the country. But the brand has undergone a major metamorphosis. In the process, it stands a largely belittled one! Brand Manmohan has in it so many things — an economist, a central banker, a bureaucrat, a minister and a Prime Minister. Such a wholesome brand is finding it difficult to deliver now. So much so, the Asian edition of Time has put him on the cover with a caption “The underachiever-India needs a reboot”. What has gone horribly wrong for Brand Manmohan in these two decades? If the brand delivered when Manmohan Singh was the Finance Minister, why it couldn’t when Manmohan Singh is the Prime Minister? Well, the contrast is sharp.

Considered apolitical, Finance Minister Dr. Singh had the blanket backing of his Prime Minister Narasimha Rao as he singularly pursued the reform agenda without any let up or hindrance. The government of the day at the Centre then was in minority. It was a single party rule. Luckily, there weren’t coalition partners for Rao then to worry. The two combined well to take to the reform road. Much water has flowed under the bridge since then. Coalition government has become the rule at the Centre. With it, the game of the rule has changed considerably. This appears to have hit Brand Manmohan very hard.

During the first innings of UPA (United Progressive Alliance), Brand Manmohan managed to hold on to its image and reputation. So much so, Prime Minister Dr. Singh was showered praise from various quarters for the way he held on to his ground in the face of aggressive opposition from the Left parties, and pushed the passage of the nuclear bill in Parliament. Always seen to be reticent, he played a high-stake game — risking his personal reputation and the government, in the process — to secure the Bill.

But the brand has come under considerable assault only under UPA-II. The reasons are not far to seek. A series of scandals — from 2G to Adarsh and what not — has undone the brand image. As though these aren’t enough, the Manmohan Singh-led Government has to contend with coalition partners who are refusing to rise above narrow considerations. With many pulling in different directions, Dr. Singh appears to stand still. Dr. Singh, the Prime Minister, perhaps, requires a Rao-like mentor to regather his reform agenda!

It is ironical that the original reformer Dr. Singh-led UPA-II Government has to be constantly reminded by none other than the Reserve Bank of India (RBI) on the need to keep “the fiscal house” in order. Control fiscal deficit, go for market-led fuel price so on and so forth. The governor of the central bank has been continuously pleading with fiscal mandarins, even as critical macro numbers (be it inflation or industrial output and trade figures) have begun to show disconcerting signs. Surprisingly, every one — from common man to the industry and the politician — has berated the RBI for playing the ‘spoilsport’ and painted it as a villain! .

Often times, perception can play havoc. The widely-held belief is that Brand Manmohan has long gone into ‘inactive mode’. As pressure mounts from within and without, time appears to be running out for Dr. Singh to regain the reformist tag. The biggest challenge for him now lies in getting the reform agenda back on track. A positive action in letting foreign direct investment (FDI) in multi-brand retail and aviation can have a huge effect on rejuvenating Brand Manmohan. It is easier said than done, however.