AFTERSCHOOOL

CENTRE FOR SOCIAL ENTREPRENEURSHIP

S I VA K A M U V E T E R I N A RY H O S P I TA L R OA D
BIKAER 334001
W W W. A F T E R S C H O O O L . T K

MY CORPORATE
JOURNEY
(SPEECH )
BY :
MR. B.R. NAHAR

AT
AFTERSCHOOOL
CENTRE FOR SOCIAL ENTREPRENEURSHIP
DATE : 26 SEPTEMBER 2009
FROM : 11 AM TO 1.30 PM

COMPILED ON THE BASIS OF SPEECH BY : DR. T.K. JAIN

HONORARY CHIEF MENTOR, AFTERSCHOOOL
© : AFTERSCHOOL CAREER GUIDANCE TRUST.

NOTE : THE PURPOSE OF THIS MATERIAL IS TO PROMOTE ACADEMIC DISCUSSION AMONG

PGPSE PARTICIPANTS OF AFTERSCHOOOL. PGPSE IS THE PROGRAMME TO PROMOTE SOCIAL
ENTREPRENEURSHIP THIS PROGRAMME IS AVAILABLE FREE OF COST FOR ANY PERSON WHO
WANTS TO PLAY AN IMPACT MAKING ROLE IN SOCIAL TRANSFORMATION. FOR THE PURPOSE OF
ACADEMIC DISCUSSIONS, CHANGES HAVE BEEN MADE IN THE DOCUMENT, FURTHER THERE
ARE POSSIBILITIES OF ERRORS IN THIS DOCUMENTS – SO THESE DOCUMENTS SHOULD NOT BE
USED FOR ANY DOCUMENTARY EVIDENCE.
 AFTERSCHOOOL
CENTRE FOR SOCIAL ENTREPRENEURSHIP
S I VA K A M U V E T E R I N A RY H O S P I TA L R OA D
BIKAER 334001
W W W. A F T E R S C H O O O L . T K

B.R Nahar:

I am from a nearby village Deshnok. I studied upto metric

class there. In my family, no body got education more than
class 10th. I was also asked to go to Bengal to undertake
service under maternal uncle. I requested my father to allow
me to study further. He agreed. Fortunately I got first class. I
got a chance to study further. I passed B.Com. from Jain PG
College. I got rank in Rajasthan University. I went to Mumbai.
At that time, guidance was not available. I got a chance to
serve a bank. My desire was to be CA. I didn’t know How to
do CA. There was no guidance. Finally I got admission in CA.
I passed CA in first attempt. After that I got an opportunity to
work with Aditya Birla Group. I worked with Grasim at Nagda.
My professional journey started. My learning also started
from Nagda. I got the opportunity to learn and grow.
Whether it is study, or sports, I got the opportunity to learn. I
learned Billiard and many sports. I developed myself in
extracurricular activities. I participated in many of these
events. At Nagda, we used to have many sports. I got
opportunity to learn in my professional capacity. After 1 year,
I got a chance to be in charge of the accounts department.
There from that level, I reached the level of joint GM in 10
years. In 1984, Mr. Aditya Birla selected me out of the entire
group to work for internal management and control. At that
time I was 33 years of age. I was working for all Birla group
companies. I worked for 2.5 years in this work. That was a
great learning experience. I got this due to my immediate
boss, who gave me an opportunity to learn. He had given me
opportunity whenever there was opportunity. I was offered
job outside India also. We had many ventures in Thailand,
Malaysia etc. I continued in India due to family reasons. The
environment was such that I could do a lot of work in my
normal work. My responsibilities were to handle commercial
work for the group.
 AFTERSCHOOOL
CENTRE FOR SOCIAL ENTREPRENEURSHIP
S I VA K A M U V E T E R I N A RY H O S P I TA L R OA D
BIKAER 334001
W W W. A F T E R S C H O O O L . T K

I was selected for internal restructuring of the Birla group.

We used to make Vikram Cement from Neemach plant. I
worked exclusively for mining work and for finalizing other
projects. I was involved in all the work related to that project.
I was the commercial in charge of the project, but I decided
to continue with the previous job and returned back to
Nagda. I was never satisfied that I should do only one work. I
wanted to do many work. I was very hard working during my
initial work. I used to work a lot. Once I worked for 7 days
continuously without sleeping a single day. I have never had
any hesitation in working hard. After reaching the post of
CEO (at the age of 37) (in 1997 -98) – I worked to set up
projects for cement. I was also instrumental in setting up a
project in Africa. Fortunately, we identified a project in Africa.
Today, we are having a good project in Egypt. Which is the
highest capacity in one location. We also entered into
viscous fiber and other projects. I signed MOA with the
government of Egypt. That period gave me the courage that
I can take bigger responsibilities. At that time, the largest
project was sponge iron project near Mumbai. I was asked to
look after the project. I used to travel every Friday to Nagda
(my family was at Nagda). I used to look after the project of
sponge iron project. My family also shifted to Mumbai. It was
a new project for me. I didn’t know many things, but I
devoted myself more than 16 – 17 hours daily. I visited many
plants to learn about how these plants work. After evaluating
these plants, I was able to start the project.

We got the blessings of B.K. Birla sahib for the project. At

that time World Bank had sanctioned a loan. We were asked
to work only on a particular technology. We had to procure
the technology from the USA. I visited different plants. I
convinced the management that we need a particular
technology. One of my colleagues (who was CEO of a
 AFTERSCHOOOL
CENTRE FOR SOCIAL ENTREPRENEURSHIP
S I VA K A M U V E T E R I N A RY H O S P I TA L R OA D
BIKAER 334001
W W W. A F T E R S C H O O O L . T K

fertilizer unit) also convinced the management that this

technology is useful for us. We narrated plus and minus
points of the new technology. We were taking a risk as the
technology was being used for the first time. The World Bank
also withdrew – they asked us not to proceed with that
technology. We selected the new technology – as it would
reduce cost of operations and started the project on the
bank of Arabian Sea. We needed sea shore for our project.
15 lakh tones of the project required huge raw material,
which had to be brought from sea route. We also needed
natural gas which was also available nearby from Mumbai

There was no power. We needed power. Total amount was

huge for bringing power. Continuity of power was also not
assured. Thus we had to install captive power project. This
technology from Mexico worked on cold discharge. We had
asked for hot discharge. We were to do it by installing
turbine. Our power project was also low. In terms of cost of
production, our project would be producing at lowest cost
per tones. Our capex was also low. We selected the
technology and started the plant – although many people
warned us that this is a new technology and it was risky to
go with this technology.

Everything worked ok. But when we were discharging

material – at 800 degree heat – the material stopped in the
furnace – we again started the plant – it again started but
the material stopped, we again and again tried but for the
same results. We were incurring heavy losses. We spent 3-4
days to clean the furnace. The material had solidified in the
furnace. The technology supplier was also worried. At that
time more that 100 technocrats worked at our plant to
correct his problem. Even after 6 months, there was no
result. Aditya Birla had put all his resources – man, machine
and resources – but the outcome was nil. We had to convert
it to cold discharge. The management wanted to do it as hot
 AFTERSCHOOOL
CENTRE FOR SOCIAL ENTREPRENEURSHIP
S I VA K A M U V E T E R I N A RY H O S P I TA L R OA D
BIKAER 334001
W W W. A F T E R S C H O O O L . T K

discharge. No solution was forthcoming. Mr. Birla had never

fired us. He always encouraged us. We were getting bad
name in the market. Everyone was asking : “Why this idea
was implemented”. So we were spending lot of money. We
had raised loans for this project. The suppliers of the
technology and consultant were sure that the technology
would be successful. One technocrat suggested that
everything had failed, but now let me try a new thing. If this
will fail, we will go for cold discharge. Birla said that this is
the last chance. The technocrat studied the process. He put
up an apparatus, which could ensure that the temperature
inside the plant was high and outside it was low. It was 17
October 94, he tried and at about 6 o’clock, he got the first
production. I was at Mumbai at that time. I got the
information that the plant is operational. He telephoned Mr.
Birla and everyone that the plant was now operational.

At 6 o’clock we went by sea to see the plant. We reached at

8 o’clock

These occasions gave me an opportunity to learn. Whatever

problems may be - don’t get discouraged. We should get
success. We should try and continue to try.

Don’t fear from failures. If you take 10 decisions, a few may

go wrong. Don’t be fearful. Go into every aspect of the
decision. Once you take a decision, don’t fear. Somehow the
plant started.

We had thought that the plant would give lowest cost of

production. It has been proved correct. We are now bringing
material from Brazil, Mangalore etc. we have now become
the lowest cost producer in the world.

I would tell you the number of 2001 – 5. We started making

good profit from 95 onwards.
 AFTERSCHOOOL
CENTRE FOR SOCIAL ENTREPRENEURSHIP
S I VA K A M U V E T E R I N A RY H O S P I TA L R OA D
BIKAER 334001
W W W. A F T E R S C H O O O L . T K

In 2001 -2, that plant started increasing profitability.

Initially we had lost 50 crores in the fist 6 months, but

ultimately, it has given a good success. Now it is generating
more than 1000 crores of profits.

We have taken up a project. We

150000 tones in one vessel. There is no port in Western

India. We couldn’t bring the material. In India the quality of
iron ore was not good. We needed more Fe content.

We thought about this project. How to bring the best iron

ore. We were thinking to import material from Brazil. People
thought that it was a joke. We however, made a proposal to
the government. We wanted to reduce the cost of
production.

We had to purchase our own floating tray and our material

handling equipment. If you bring a smaller vessel 30000
tones, the freight cost was 1250 rupees per tones. It was not
competitive. (25 dollars per tones). So we visited Kolkata to
see the floating crane, and saw the system. This crane could
be used for material handling of 1.5 lakhs tones of material.
We could install the crane. It was a very ambitious venture
again. At that time we were not making good money. Were
not worried. We prepared the project and found that 20%
returns were possible with the new project. We were
confident. We convinced the management that it was
possible. We submitted the plan to him when he was there.
He saw the jetty.

People were laughing at us. People told us that you are

spending another 45 crores in the Arabian Sea. They told us
that this plant was not going to survive. However, we got the
plant sanctioned. We got the cargo from Brazil and Sweden
 AFTERSCHOOOL
CENTRE FOR SOCIAL ENTREPRENEURSHIP
S I VA K A M U V E T E R I N A RY H O S P I TA L R OA D
BIKAER 334001
W W W. A F T E R S C H O O O L . T K

which was cheaper in comparison to Mangalore /

Vishakapatanam. The cost was only 5 Dollar per tones (cost
of transportation.

Thus we improved our quality. From zero to 60% exports. We

were now exporting more than 200 corres of

We were able to give 19% project. Now everyone was

looking at our project. In 1995, Aditya Birla died.
Kumarmanglam visited our plant. At that time, we had
handled 2 cargoes. We could see that we were able to save
over 2 crores in two cargoes. He realized that it was a good
project. The returns per annum were actually more than 200
percent. This project subsequently was recognized by the
group. When Kumarmangalam took the charge, he decided
to recognize the good work. He appointed a panel to
evaluate the work. The panel consisted of HLL chairman,
chairman of Zee and Sundaram group. We were having 50
companies in the group. Whatever we had done, each group
presented case studies. For 3 days, we had case studies.
When we presented our case study, Subhash Chandra told
us how you did it. We presented the case study on the basis
of customer satisfaction. Our logic was that customer should
get benefit. Our site was so well designed. Subhash Chandra
told that this project should get the top most prize. This
project should be considered for transformational award.
This project enabled our company to transform.

In the job, if you are unsuccessful you are thrown out. If you
devote wholeheartedly, you will succeed. We have been able
to turnaround the project due to highest per

It is very heavy monsoon in Mumbai. Small ports go for

fishing. From May to November we can’t use our floating
crane. For 2-3 years, we were facing problems. We were
acquiring a cement plant in Jamnagar. There was a lot of
 AFTERSCHOOOL
CENTRE FOR SOCIAL ENTREPRENEURSHIP
S I VA K A M U V E T E R I N A RY H O S P I TA L R OA D
BIKAER 334001
W W W. A F T E R S C H O O O L . T K

controversy whether we should buy the project or not. For 9

months, there was no decision. In the group, we had two
groups = there were some people in favour of decision and
some against. My boss Mr. Malodia was in favour of purchase
of the plant. I proposed that whether I should present
something. I told him that I had prepared a small note. I
didn’t know about cement, but I had seen the plant. from
jetty

We were importing a lot of coal. If we can get it from jetty,

we can reduce the cost. I proposed that during 5 months, we
should shift our jetty to Jamnager. During Monsoon this can
work. If you can bring a ship of 1 lakh tones during that
period, we can have lot of savings.

However, my ideas didn’t find any takers. After a week, my

boss called me up and asked me to prepare complete
project. I prepared a presentation. For 2-3 years we worked. I
started with this project. I didn’t known about cement. Our
purpose was to ensure that we would be able to reduce
costs.

I assumed that there would be savings of 4 dollars per tones.

This was without investment. We had to shift our jetty from

Mumbai to Jamnagar.

What is a venture, it is just to earn profit out of best

utilization of resources.

We selected top people and went to Jamnagar.

We once again visited the site. We experimented there

during monsoon. Based on our experimentation, we found
that the jetty would work during (Monsoon 9(though it would
not work in Mumbai). I was made in charge of acquisition of
 AFTERSCHOOOL
CENTRE FOR SOCIAL ENTREPRENEURSHIP
S I VA K A M U V E T E R I N A RY H O S P I TA L R OA D
BIKAER 334001
W W W. A F T E R S C H O O O L . T K

the Cement plant (from Bangar Group). With lot of other

problems, we finalized the deal. The plant was running in
loss at that time.

I went to Africa and finalized the purchase deal. Earlier we

used to buy through middlemen – but now we were buying
directly. From April, 99 we shifted the jetty to Jamnagar. We
got vessels of 1.5 lakh tones and it was successful. It was the
fist time this was done in Jamnagar. The average freight cost
was 3 dollar per tones. At that time we were paying 14
dollars

Customs duty was 25%. Customs is included in CIF. If it is 14

dollars of material, you pay 3.5, but on freigt, you are paying
.75due to freight.
In the fist year, we were able to save 40 crores from this
project.

In the whole process, you need a free hand. You should have
the courage, don’t fear even when you face problems. No
person should fear.

Now I shall talk about Birla Corporation.

When I joined in 2002 December. The company was losing
35 crores per year. The cost of production was very high. We
were not even among first 30. The share price was 10
rupees. After joining I proposed some changes. I was the
executive president and MD. The owner used to take the
decision. I suggested the main costs in cement. We were
buying total power - which was costing 4-5 per unit. There
was also a problem of getting funding. After 3 months of
joining, we should set up power plants. This will bring down
dost cost of production.

We found that we would be able to reduce the cost of

production. Financial challenges were big problems. Mr.
 AFTERSCHOOOL
CENTRE FOR SOCIAL ENTREPRENEURSHIP
S I VA K A M U V E T E R I N A RY H O S P I TA L R OA D
BIKAER 334001
W W W. A F T E R S C H O O O L . T K

Lodha assured that financing would be available. But the

project should be successful. In one meeting, I told them that
there was no possibility of failure of the project. We got the
sanction and we were able to set up the plant. The cost of
production was reduced. We have been operating the plant.
One plant is over 30 years old. I suggested for upgradation
of the plant. We will not increase any manpower. Anyway,
when I become CEO, I again presented the paper.

Technical team was asked to evaluate the project. I

convinced the technical team about the feasibility of the
upgradation of the plant. The technical team didn’t have
confidence so the plant was rejected. After 6 months, we
again invited consultants and we again presented the plant.
After 6 months it was approved. Technical team was now
convinced. So the capacity will increase from 5 million tones
to 7.5 million tones.

This will help the company to prosper and progress. In the

last 3 years, the company which was not among first 3
companies of the country, we have been improving. Now we
are the best among first 5 in terms of cost of production. In
the last quarter we were number 4 in terms of cost of
production. We are not very profitable company.

We have been identified as best among the best out of 200

companies out of Asia Pacific region in 1 billion groups (from
FORBES MAGAZINE). In the cement sector, we are the only
company to figure in this list. Considering the age of the
plant and its blast,

The same capacity plant will need only 300 people. We are
having 4000 people and we are making this achievement.
 AFTERSCHOOOL
CENTRE FOR SOCIAL ENTREPRENEURSHIP
S I VA K A M U V E T E R I N A RY H O S P I TA L R OA D
BIKAER 334001
W W W. A F T E R S C H O O O L . T K

I have worked as an entrepreneur. I have been given free

hand. You can do this only when you get free hand. I feel that
I could achieve this

I am in job, but I tell you that don’t look for job. Become
entrepreneur and achieve something which can do.

My son, a CA (2nd rank), MBA from University of Michigan, but

he decided to start his own business. His wife is also MS, but
he has taken bold decision to start his business. He is now
enjoying.

I told him to start venture from Bikaner (as it is our

responsibility to serve our homeland), he agreed and started
a new venture in Bikaner. We want that people from Bikaner
should progress.

Take some risk and grow. Take risk that you can afford.

ANSWERS TO QUESTIONS :

How can Floating cranes be used ? (question by Ajay)

Floating crane takes about 20 tones from vessel and puts it
in Barch (which has capacity of 1000 tones). It doesn’t need
any port.
In Mumbai, we can’t get vessels of above 40000 tones. In
Paradise and in Tundra Port, it is possible to have vessels of
above 2 lakh tones.

How can we use eco-friendly and sustainable technology in

cement production? (question by Priyank Vyas)
Solar plant: 25 crores of 20000 MW.
Thermal power plant costs 2 crores for the same capacity.
1 mw = 6 crores per megawatt (actually have 24 crores –
due to load factor).
Biomass = problem of collection and bringing the material
 AFTERSCHOOOL
CENTRE FOR SOCIAL ENTREPRENEURSHIP
S I VA K A M U V E T E R I N A RY H O S P I TA L R OA D
BIKAER 334001
W W W. A F T E R S C H O O O L . T K

Biomass – if agriculture waste is available.

If municipal waste available – in Jaipur – they make power
plant using material out of the municipal waste.
In Japan, one company is having a contract for taking the
waste.
That is called ecocement – In cement

In Birla corp., we are setting up the largest plant

Chimney gas which is having 350 degree of temperature, we
want to capture that heat and produce power from that heat.
In India, India cement had set up that plant.
In Chittor, we are setting up 9 mw and in Satna we are
setting up 15 mw plant. It will cost 10 crores per MW. It will
not require any fuel.
Our project will be most cost competitive plant after this

Can we use wind power in the process? (question by Priyank

Vyas)
In wind power load factor is 17 or 18 percent. In south the
wind velocity is more so they have load factor of 30 or 40%.
In thermal it takes only 4 crores
1 mw = 250 kw crore