Professional Documents
Culture Documents
net/publication/329040206
CITATIONS READS
0 45
1 author:
Aynampudi Subbarao
VNR Vignana Jyothi Institute of Engineering & Technology
6 PUBLICATIONS 1 CITATION
SEE PROFILE
Some of the authors of this publication are also working on these related projects:
All content following this page was uploaded by Aynampudi Subbarao on 20 May 2019.
INDI A SINGAPORE M A L AY S I A
Notion Press
ISBN 978-x-xxxxxx-xx-x
This book has been published with all efforts taken to make the material error-free after the consent
of the author. However, the author and the publisher do not assume and hereby disclaim any liability
to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors
or omissions result from negligence, accident, or any other cause.
No part of this book may be used, reproduced in any manner whatsoever without written permission
from the author, except in the case of brief quotations embodied in critical articles and reviews.
Contents
iii
iv | Contents
Foreword
I grew up travelling in erstwhile Madras Province, Nizam State and Andhra Pradesh along with my
father late Sri. N. Veeraswamy Naidu I.A.S. (Retd.) and had the opportunity of studying in various
places adapting to various cultures right from my childhood. Graduated in 1959 in Mechanical
Engineering from University of Mysore, Karnataka and joined M/s. Hyderabad Allwyn Metal Works
ltd as a Management Trainee. Was trained at M/s. Hind Motors’ works at Uttarpara, W.B as a Tool
Room Engineer. Hyderabad Allwyn Metal Works Ltd was established in 1942 as Allwyn Metal Works
by the then Industrialist Mr. Alladin Khan to initially assemble bus bodies for erstwhile NSRRTD
and later manufacture Steel Furniture and Refrigerators with U.K.’s M/s. Prestcold’s Refrigerators in
India. It later became a State Public Sector Undertaking and further expanded to manufacture Wrist
Watches with a Japanese collaboration. During this period, I modernized the existing Tool Room to
manufacture High Precision tools and components required to make Compressors. Next, I had the
opportunity to establish a Green Field steel forging unit of capacity 9000tpa for M/s. Republic Forge
Co. Ltd with the collaboration of M/s. Seri – Renault Engineering, France.
After successful stint in large industries, started my journey as an Entrepreneur in 1968. Founded
Narne Tulaman Manufactures Pvt. Ltd. (Presently known as Hyderabad Tulaman Pvt. Ltd.) to
manufacture Indicating type of mechanical weighing machines with technical collaboration from
a World Renowned French Organisation, M/s. Charles Testut, Paris. Later to meet the demand of
Electronic Weighing, associated with M/s. National Aeronautics Laboratory, Bangalore, a public
v
vi | Foreword
Successful Entrepreneurs need to pay back to Society. With strong conviction some of us
Industrialist promoted Vignana Jyothi Society in 1991 and established several Educational Institutions
in Engineering, Management, Arts & Science, Rural Technology and Schools. Employees or
Entrepreneurs both need world class education. Universities do not become world – class institutions
as soon as they are created but evolve to become world – class Universities through long years of work
pursued by the commitment and dedication of students, faculty and staff.
I am sure this book of Dr. A.S. Rao will be useful for future entrepreneurs.
– Narne Prabhakar
Prologue
The world was never flat. In Year 1 AD, India and China were home to one-third and one-quarter of
the world’s population respectively. It’s hardly surprising then that they also commanded one-third
and one-quarter of the world’s economy respectively. India was by far the biggest economy at the
dawn of AD. In Milton’s Paradise Lost, the great Mughal cities of Jahangir’s India are shown to Adam
as future marvels of divine design. This was no understatement: Agra, with a population approaching
700,000, dwarfed all of the cities of Europe, while Lahore was larger than London, Paris, Lisbon,
Madrid and Rome combined.
But though size of economy, population, empire territory varied till 1000 AD there was little
difference in the GDP of nations. But between 1000 and 1500 wages in Western Europe started
to inch up thanks to moderate technologies and agrarian organization, such as three-field rotation
and horse harnesses. The massive power of the Industrial Revolution becomes evident in the period
1500 to 1800.
vii
viii | Prologue
(The graph was created from a research letter by JP Morgan Chairman of Market and Investment Strategy Michael
Cembalest and shows GDP growth since 1 AD)
Thus it can be said the modern economic history began with First Industrial Revolution. What
was the scene in India and Andhra in the early 19th century when Europe was swarmed with modern
science & Technology? For illustration, I classify our understanding of history as:
• History we remember
• History we have forgotten
• History we ignored.
Unlike Arabs trading in Indian spices, Europeans quickly discovered coercion and thefts more
profitable covering risks of longer journey. European oppression began with reign of terror by the
Portuguese followed by Dutch, French and finally the British. Following the Battle of Plassey in 1757,
the British East India Company gained control of Bengal, which was progressively expanded towards
Central and Southern India. Loot of India started after Battle of Plassey. Mir Jafar, the new Nawab
Prologue | ix
paid East India Company 2.2 million pounds and its officers & troops another 1.2 million pounds.
From out of taxes collected in Bengal, Bihar & Orissa, Emperor in Delhi received 2,72,00 whereas
East India Company retained 16,50,900/-. For centuries Gold & Silver had poured into India and
British extortion left India barren of savings accumulated over centuries. All authorities agree that the
tribute from India which amounted to almost a third of Britain’s national savings for the last three
decades of eighteenth century financed trading networks serving as lubricants for the new economic
engine.
India not only provided capital but also market for industrializing Britain. Indian cotton and silk
were either banned or subjected to import duties of 30% to 80%. Calcutta which sent to London
2million worth of cotton goods in 1813 instead imported same value of British goods in 1830. The
share of Indian textiles in the West African trade was about 38 percent in the 1730s, 22 percent in
the 1780s and 3percent in the 1840s. By the end of the 17th century, Indian calicos were a major force
in European markets. For example, the share of Indian textiles in total English trade with southern
Europe was more than 20 percent in the 1720s, but this share fell to about 6 percent in the 1780s
and less than 4 percent in the 1840s. While India produced about 25 percent of world industrial
output in 1750, this figure fell to only 2 percent by 1900. The demise of the Mughal empire, huge net
transfer from India and rapid productivity advance in European manufacturing had all completed first
de-industrialization of India. From a manufacturing economy with thriving exports, India became an
agricultural economy producing grains.
Along with consolidation of British rule, there were many administrative changes like in education
and tax collection. The indigenous mode of education was replaced with British model. Around 1830
there existed 100,000 village schools in the regions of Bengal and Bihar alone. After the introduction
of British education, the numbers of these indigenous education institutes decreased drastically.
Thomas Babington Macaulay, who strongly believed that traditional India had nothing to teach,
regarding modern skills; introduced English education in India, especially through his famous minute
of February 1835. He called for an educational system that would create a class of anglicized Indians
who would serve as cultural intermediaries between the British and the Indians.
Several British and European historians attempted to portray India as a society that had made
no civilizational progress for several centuries. William Jones asserted that Hindu society had been
stationary for so long that “in beholding the Hindus of the present day, we are beholding the Hindus of
many ages past.” James Mill, author of the three-volume History of British India (1818) essentially
concurred with William Jones as did Henry Maine. This view of India, as an essentially unchanging
society where there was no intellectual debate or technological innovation was propagated by the
colonial rulers and gradually shared among English educated elite of India. What was important to
Western civilization was deemed universal, but everything Indian was dismissed as either backward
and anachronistic, or at best tolerated as idiosyncratic oddity.
x | Prologue
There were 31 serious famines in the 120 years of British rule compared with 17 famines in the
2,000 years before British rule. More than 85 million Indians died in these famines which were in
reality genocides done by the British Raj. More famines occurred in the 200 years of British rule than
in all of the seven hundred years before them. Not to forget the scale of these mass deaths; the largest
catastrophe before British was 2 million deaths in famine of Gujarat and Deccan famine of 1630–32,
both 1772 famine of Bengal and 1876 famine of Southern India took over 10 million and 6 million
lives respectively. India was run like a machine with main motive being profit with utter disregard for
the inhabitants. During the height of 1770 famine, the tax rates were actually raised. While normal
Prologue | xi
practice in such conditions was to forego these, the British forcefully collected the taxes, leaving the
people to die. That year the Company actually recorded an increment in its profits.
In 1776 British acquired the delta of Godavari and Krishna. From that time for 80 years famines
regularly occurred destroying the people. During Guntur Famine 150000 people died of starvation,
also 74,000 bullocks, 159000 milk cattle and 300000 sheep & goats. Captain Best, an Officer of the
Madras Engineers (the pre-1852 Public Works Department) estimated that in Guntoor, 150,000
persons out of a population of 500,000 people died during the famine. His account also described the
pathos of famine deaths:
We are apt not sufficiently to consider, in reading of 150,000 people killed by famine, how much
individual wretchedness is indicated by those six digits. We shrink from the six hundred tales of broken up
village communities, the uncultivated lands, the uncelebrated feast, the fierce contest at the well, the thronged
burning ground, the unburied dead. We like not to contemplate the spectacle presented in thousands and tens
of thousands of families, the herdsman with his uncomplaining cattle dying around him, stripping the coarse
thatch from his roof which for years have been the grateful object of his care, the sheep burnt to death with the
withered grass, the hungry children and their starving parents, the famished mother unable to moisten the
parched throat of her dying infant, or the hard struggle between the strong ties of kindred and the stronger
instinct of self preservation.
Walter Compbell, who was an eye witness, describes the horrors of the famine in Masulipatam
in the centre of the Krishan delta. He writes: “The description in “the siege of Corinth” of dogs gnawing
human skulls is mild as compared with the scenes of horror we are daily forced to witness in our morning and
evening rides… It is dreadful to see what revolting food human beings may be driven to partake of. Dead
dogs and horses are greedily devoured by these starving wretches; and the other day an unfortunate donkey
having strayed from the fort, they fell upon him like a pack of wolves, tore him limb from limb and devoured
him on the spot.”
A Letter on 8th April 31st written by William Howell, a missionary in Cuddapah to London
Missionary Society says that he rejoices at the famine that enabled him to reap souls. “Taking advantage
of this situation the missionaries jumped in to convert people to Christianity.” An epidemic broke out in the
following year, and “a man in perfect health was hardly to be seen anywhere.” This famine had taken a
toll of lives of one half of the total population of Guntur. The reports of the Collectors of Cuddapah,
Bellary, Godavari, Nellore, Guntur, etc., show the deplorable condition of peasantry under the British
rule. Godavari district, the garden of Madras Presidency, the report of the Collector says, was on the
verge of ruin. The population which in 1830 had been 695016 had decreased in 1840 to 533,836.
British attributed famines and starvation to higher population growth, presence of money
lenders and farmer’s improvidence. The fact was that population increase in India at that was slower
than England and wales. Farmers lived frugally and money lenders are result of poverty. The real
xii | Prologue
causes are: failure of rains, chronic poverty of cultivators due to over-assessment of tax on soil. One
thirds of revenues were sent out of India every year and land revenue is the most important revenue
of Indian revenue. The burden of taxation falls heavily on cultivators of soil. They can save nothing in
years of good harvest and every year of drought is a year of famine. Large tracts of lands which were
earlier under cultivation have gone out of cultivation due to over assessment. The principle accepted
was that one half of the net produce of the soil is due to the government as revenue and that net
produce is ascertained by deducting from the gross produce the estimated cost of cultivation. The
calculations were made by settlement officers. For good soil the cost estimated is Rs. 14 per acre and
for ordinary soil it was Rs. 5 per acre. Break up for 14 Rs: Bullock – 1 rupee 5 anna 6 paisa, Seeds
2 rupee 3 anna 0 paisa, Manure 2 rupee 12 anna 0 paisa. Another problem was compulsory water rate
for all cultivators in the wet cultivation area.
the natural way of keeping the population under control. Eventually famine would act as a natural
check on population growth, equilibrating the demand for food with food supply. Malthus believed
you have to be cruel to be kind; you are not supposed to help the starving because helping them will
only encourage them to breed more rapidly – increasing the problem. Acceptance of famine as a
necessary state and inevitable fate of the weak and the poor had led to actions which created famines
and perpetuated famines.
ex-slaves as formal wage labor. Planters’ unchanged attitudes towards ex-slaves, however, ensured a
rapid post-emancipation movement of ex-slaves away from estates. After abolition, sugar production
dramatically decreased and the market value of Caribbean estates declined. Planters saw the labor
shortage as the heart of the problem, and soon initiated various immigration schemes, including the
introduction of Africans “liberated” from other nations’ slave ships and brought directly from other
Caribbean islands or Africa. For various reasons, the planters found none of these groups suitable. The
planters demanded, instead, a wholly controllable, extremely cheap workforce that was accustomed
to agricultural labor. In turn, this led to tensions between freed people who demanded equality and
autonomy and planters who attempted to maintain their economic livelihoods and social hegemony.
Where slaves revolted to work indentured servants from India found a living. That was the level of
desperation of impoverished Indians. By the end of the eighteenth century, the East India Company
was deploying Indian labor outside India. It was in this context that in the 1820s sugar planters
in Reunion and Mauritius experienced some success in importing laborers from India whose “cost
[was] not one-half that of a slave.” Learning of such success, John Gladstone, representing Caribbean
planters, contacted an English recruiting firm with a presence in Calcutta regarding the possibility of
similarly obtaining Indian labor for the Caribbean. The response of the firm was encouraging: “ ‘ We
are not aware that any greater difficulty would present itself in sending men to the West Indies…, the
natives being perfectly ignorant of the place they go to or the length of voyage they are undertaking.” ’ Rather
than being an avenue of opportunity, for the majority of Indians indenture was an “exile into bondage”
as many found they had exchanged one form of poverty and servitude for another, and many more
found only death and disease.
For the Telugus, Burma was known as the suvarna bhumi – the golden land of plenty. The
inhabitants of lower Burma were called as Talaings. It has been said that the local rulers of Ancient
Andhra country-Kalinga conquered the natives and established their authority and trading relations.
The Telugu speaking people in Burma were known as “Coranghees” to the local people as well as the
press and government. Since the Andhra migrated in earlier times from a port called Korangi in the
present day East Godavari District of Coastal Andhra Pradesh in South India, they were identified
with that place.
Initially most of them were drawn from the professional caste of Devadasis, known as
kalavantulu/Bhogam and from other lower sudra and untouchable castes. A definite correlation
existed between natural calamities and increased migration in certain years. As early as 1865–66
large-scale emigration from Vizagapatnam to Lower Burma averted the spread of famine from
neighboring areas into that district. In 1896–97 the number of emigrants from Ganjam to Burma
doubled and those from Vizagapatnam tripled as a result of widespread famine in these districts.”
In 1840 the collector of Godavari stated that it was mainly barbers, washer men, tailors and weavers
who had gone to Burma, while Vizagapatnam collector mentioned (in 1863) that majority of the
Prologue | xv
emigrants were weavers and there were no agricultural labour. In the twentieth century emigrants to
southeast Asia were drawn from the agricultural communities. Among the agricultural communities
emigrating to southeast Asian countries there were the non-Brahman castes of owner-cultivators,
tenants, share-croppers, landless agricultural laborers like Kapu, Nayudu, Kamma, Reddi, Padayachi,
vellaela, Muthiraj, Gavara etc. it is also of interest to note that other agriculturists from high-
to-middle scale in the caste hierarchy (Kapu, Kamma, Reddi, Velama etc.) chose to migrate. It was
possible that deteriorating conditions in agriculture such as pressure on land, famine, flood and
cyclone were responsible for their migration. Hence for them emigration became an escape route
and a habit.
Scientific Discoveries and Technological Inventions Fueled the Industrial Revolution. Scientific
Revolution of the 16th and 17th centuries led to discovery of principles and laws of physics (heat,
work, energy, thermodynamics, motion) and chemistry (elements, reactions, thermochemistry).
Industrial Revolution of the 18th-19th centuries represented practical application of science to increase
agricultural and industrial production, to create new materials, processes and manufacturing methods,
to improve health, to create new sources of power; in fact, a collaboration of science and technology.
The eighteenth century witnesses a closer rapprochement between science and technology. On the
one hand, men of science took a more active interest in practical problems; on the other hand, practical
craftsmen or technicians showed a new interest in the scientific aspects of their work.
for survey. East India Company restricted the art of surveying to their own covenanted or military
personal. There was a definite prohibition against the instruction of any Indian in the art of any kind
of surveying. The emphasis on scientific research and the lead to create condition for young Indians to
engage in Science came from Indians themselves. Science returned to India largely as a consequence
of the movement for national self-determination.
The East India Company in 1806 set up Haileybury College in England to train administrators.
In India, there were four colleges of civil engineering; the first was Thomason College (Now IIT
Roorkee), founded in 1847. The second was Bengal Engineering College (now Indian Institute of
Engineering, Science and Technology, IIEST). Their role was to provide civil engineers for the Indian
Public Works Department. Both in Britain and in India, the administration and management of
science, technical and engineering education was undertaken by officers from the Royal Engineers
and the Indian Army equivalent, (commonly referred to as sapper officers). This trend in civil/military
relationships continued with the establishment of the Royal Indian Engineering College (also known
as Cooper’s Hill College) in 1870, specifically to train civil engineers in England for duties with the
Indian Public Works Department.
The British rule during the 19th century did not take adequate measures to help develop science and
technology in India and instead focused more on arts and humanities. Till 1899 only the University
of Bombay offered a separate degree in sciences. In 1899 B.Sc and M.Sc. courses were also supported
by the University of Calcutta. By the late 19th century India had lagged far behind in science and
technology and related education.
Prologue | xvii
On September 19, 1798, the Exposition publique des produits de l’industrie française commenced
with a formal procession. Artists enrolled for the exposition—the 110 inventors and industrialists
whose works were on display marched with infantry and cavalry. What the crowds saw was a
mixture of eccentric inventions by individuals and the products of highly organized industry.
Citizen Chaussier offered his “keratome” as the latest and ultimate instrument for cataract
operations. Citizen Lacaze showed his “machine for the purpose of retrieving wood from water
without the necessity of workers entering the river.” The master horologer, Abraham-Louis
Breguet, received a gold medal for his “metronome clock,” which employed a novel mechanism
for keeping strict time and serving as a music metronome. The Republic needed products that
would help France survive in the face of foreign competition. The exposition jury, in its official
catalog for the exposition, noted that “products which could be offered that were comparable to those of
British industry” would be especially welcomed. When the jury made its selection on the final day
of the exposition, it chose products that seemed to offer the best chance of competing successfully
with the English. The winning exhibits were solemnly placed inside the Temple of Industry and
instead of relics from the past, the public is invited to pay homage to the best products of the
present.
The French Industrial Exposition of 1844 (French: Exposition des produits de l’industrie française
en 1844), held in a temporary structure on the Champs-Élysées in Paris, was the tenth in a series
of eleven French national industrial expositions held to encourage improvements in progressive
agriculture and in technology, that had their origins in 1798. In 1844 the exposition last 60 days,
with 3,960 exhibitors. It opened in the Champs-Élysées on 1 May and closed on 29 June. In the
1844 exposition it was found necessary to exclude retailers who did not make their own products, and
to eliminate anything that was not socially useful, which included both freak artisan products and
instruments used only by scientists. Entrants had to fill out a form that gave information about their
business including its nature, number of employees, materials used, export and domestic earning and
so on. The king opened the exposition and toured all the exhibits. There were 3,969 exhibitors, with
xviii | Prologue
most exhibits held in forty galleries in the grand hall. Exhibits were placed in the categories: Fabrics,
Metals and other Minerals, Machinery, Precision Instruments, Chemical Arts, Fine Arts, Pottery, and
Diverse Arts.
The tenth Paris exposition immediately spawned imitators, including the 1851 Great Exhibition
in London, which was open to international exhibitors from the entire world and outshone the highly
successful French exhibition. Other European expositions soon followed: Bern and Madrid in 1845;
Brussels with an elaborate industrial exposition in 1847; Bordeaux in 1847; Saint Petersburg in 1848;
and Lisbon in 1849.
The issue of a suitable venue was settled when the Duke of Wellington backed the idea of Hyde
Park in central London. The design of the impressive glass and iron conservatory, or Crystal Palace
as it would more popularly become known, was amended to accommodate the parks rather large elm
trees before building finally began.
It took around 5,000 people to erect the 1,850 feet (564 m) long, 108 feet (33 m) high structure. But
the work was completed on time and the Great Exhibition was opened by Queen Victoria on 1st May
1851. The exhibits included almost every marvel of the Victorian age, including pottery, porcelain,
ironwork, furniture, perfumes, pianos, firearms, fabrics, steam hammers, hydraulic presses and even
the odd house or two. Although the original aim of the world fair had been as a celebration of art in
industry for the benefit of all Nations, in turned into more of a showcase for British manufacturing:
more than half the 100,000 exhibits on display were from Britain or the British Empire. The Great
Exhibition of 1851 ran from May to October and during this time six million people passed through
those crystal doors. The event proved to be the most successful and became one of the defining points
of the nineteenth century.
The American Pavilion, which featured large numbers of inventions and improvements in
agricultural machinery, was at first criticized by the British press. However, certain products, including
Colt’s revolver, McCormick’s reaper, and Day and Newell’s patent lock changed British opinion and
demonstrated the U.S. potential for becoming a leading industrial power. Rising in the pavilion’s
center was a trophy of vulcanized rubber by the Goodyear Rubber Company.
Display of Indian products in The ‘Great Exhibition of the Works of the Industry of all Nations’
limited to a needlework carpet cover from Lahore, a bed from Cashmere with a bedstead of solid
silver and carpet from Eluru.
xx | Prologue
The novel ‘The Talisman’ written in 1825 by Sir Walter Scott narrated a fictionalized encounter
between King Richard 1 of England and Sultan Saladin during the Third Crusade. The story goes
that in that encounter both King Richard and Sultan Saladin were keen to show off to each other the
superiority of their blades. To prove that he had a better sword King Richard took a steel bar one and
half inch thick, laid it on a piece of wood and cut it by a mighty stroke. No notch remained on the
sword blade. Then Sultan drew out his sword and with a light stroke cuts a silk pillow into two parts.
The incredible sharpness of Sultan sword won appreciation of Europeans. That was called Damascus
Sword, made in Syria with steel imported from India.
First age of Steel between 300 BC to AD 1856 steel was made in crucible in small quantities
and India was the leader. The modern age of Steel began with pneumatic process by Sir Henry
Bessemer in 1856. The steel exported from India was called wootz steel derived from ‘ukku.’ There
was a preliminary identification of a sample of high carbon steel of the composition of around
1.5% carbon from megalithic Andhra Pradesh. There were accounts that in the 1600’s individual
shipments of Indian Wootz crucible steel ingots from Golkonda to Persia consisted of upto 20,000
pounds of steel.
In trying to unravel the secrets of wootz steel, European metallurgists laid the foundation for
material science.
Chapter 1
From famine and starvation Andhra moved to hope and prosperity in 200 years. Andhra Entrepreneurs
made significant contribution in this. But these class of business people had not risen from mercantile
class as was the case in Europe.
The East India Company evolved from a small enterprise run by a group of City of London
merchants, which in 1600 had been granted a royal charter conferring the monopoly of English trade
in the whole of Asia and the Pacific. The East India Company developed beyond a purely commercial
enterprise when war between Britain and France spread to India in the mid-1740s. The Company
established military supremacy over rival European trading companies and local rulers, culminating
in 1757 in the seizure of control of the province of Bengal.
Mercantilism
Mercantilism was the main economic system of trade utilized from the 16th to 18th century.
Mercantilist theorists believed that the amount of wealth in the world was static. Thus, European
nations took several strides to ensure their nations accumulated as much of this wealth as possible.
The goal was to increase a nation’s wealth by imposing government regulation that oversaw all
of the nation’s commercial interests. Exploration was financed by stock companies; East India
Company was such an entity. At first the Spanish expeditions did not show very much profit, but
soon silver mines were discovered. Then gold began to pour into Spain from Mexico City and the
conquered Inca Empire. The Portuguese struck it rich with their attempts to go around Africa when
Vasco Da Gama not only rounded the Cape of Good Hope, but in 1498 reached Calcutta India
where his ship took on a cargo of spices. These successes interested other nations in exploration.
The British were especially keen. They financed several expeditions to the New World and even
trade missions to Russia by setting up stock companies. These companies, with multiple investors
using excess capital paid explorers and colonists to venture overseas. This divided risk among many
investors and ensured a vetting of expeditions. Projects were less likely to be undertaken unless they
could show a reasonable likelihood of success.
1
2 | Andhra Entrepreneurs
Conditions in England during the 16th and 17th centuries reflected great changes which were
taking place in both rural and urban areas. Economic changes centered on sheep and the demand for
woolen cloth. Through a series of legal actions, known as the “Enclosure Acts,” English landowners
were allowed to enclose their farms and fence off large areas as grazing lands for sheep. This made
available large amounts of wool which merchants sold throughout Europe. It also meant that farmers
who had rented their small plots of land from large landowners were uprooted and drifted from
the countryside to towns and cities looking for work. While landowners, wool manufacturers and
merchants amassed great wealth, many of the migrants were reduced to begging or stealing to survive.
Migrating to a new world seemed a hopeful choice for many of these people, as it did for English
leaders who saw colonies as a way to solve the problems of the growing numbers of displaced and poor
people. England was looking at the settlement of colonies as a way of fulfilling its desire to sell more
goods and resources to other countries than it bought. If colonies could send raw materials, such as
lumber, from the abundance of natural resources available in the colonies, then England would not
have to buy these from other countries. At the same time, colonies could be markets for England’s
manufactured goods. England knew that establishing colonies was an expensive and risky business.
The organization of business ventures by merchants, blessed by the crown, served both the economic
and political interests of the country.
All of these factors were at play when a group of merchants formed a joint-stock company called the
Virginia Company of London. In 1606 King James I granted the Virginia Company its first charter,
which included the right to establish colonies in Virginia and extended all rights of Englishmen to
colonists. Under this charter, wealthy men invested money to finance ships and supplies needed for
the voyage to Virginia. A royal council made up of 13 members was appointed by King James to
govern the enterprise. The area designated was between 34 and 41 degrees latitude. Another branch
of the company, the Virginia Company of Plymouth, was granted the right to settle another area
between 38 and 45 degrees latitude.
English merchants were leaders in developing a commerce which increased the demand for more
goods. The expansion in trade had made it possible to accumulate capital to use in industry. Cloth
merchants, for instance, would buy raw wool from the sheep owners, have it spun into yarn by farmers’
wives, and take it to country weavers to be made into textiles. These country weavers could manufacture
the cloth more cheaply than city craftsmen could because they got part of their living from their
gardens or small farms. The merchants would then collect the cloth and give it out again to finishers
and dyers. Thus they controlled cloth making from start to finish. Similar methods of organizing and
controlling the process of manufacture came to prevail in other industries, such as the nail, cutlery,
and leather goods. Some writers call this the putting-out system. Others call it the domestic system
because the work was done in the home (“domestic” comes from the Latin word for home). Another
term is cottage industry, for most of the workers belonged to the class of farm laborers known as
cotters and carried on the work in their cottages. This system of industry had several advantages
Farmer Capitalists of Coastal Andhra | 3
over older systems. It gave the merchant a large supply of manufactured articles at a low price. It
also enabled him to order the particular kinds of items that he needed for his markets. It provided
employment for every member of a craft worker’s family and gave jobs to skilled workers who had no
capital to start businesses for themselves. A few merchants who had enough capital had gone a step
further. They brought workers together under one roof and supplied them with spinning wheels and
looms or with the implements of other trades. These establishments were factories, though they bear
slight resemblance to the factories of today.
(Indian ship on lead coin of Vasisthiputra Sri Pulamavi, testimony to the naval, seafaring and trading capabilities
of the Satavahanas during the 1st–2nd century CE)
Among the other areas, the Coromandel Coast which does include Andhra coast is identified
as an important entry port of trade. The Portuguese entered into Coastal Andhra in fifteenth and
sixteenth centuries basing their trading stations on loose networks on the edges of the coast, these
bases developed into larger fortifications & warehouses with small contingents of Portuguese, larger
class of native middlemen interpreters and officials. After initially colluding with Arab Naval forces
the Portuguese controlled the area They were later joined by various other European powers among
whom the English termed to be more successful in building the colonial methods.
This entire coastline was always a busy trade zone it was littered with a number of ports situated
within small distances from each other. Many of these ports served as outlets for innumerable products
4 | Andhra Entrepreneurs
of the hinterland to the outside world. There is an ample information on topography and the evaluation
of these ports such as, Bimlipatnam Nizampatnam, Sadraspatnam and so on. Coastal Andhra area is
watered by a number of rivers like Godavari, Krishna and Pennar etc These river valleys produce rice
sugarcane, tobacco, groundnut pulses, cashew nuts and millets etc.
In case of Andhra, it enjoyed special privileges from times immemorial that accrued to a country
with a long and hospitable coastline. When ships were the only means of bulk transport, Andhra ports
were centers of brisk trade. Historically, ports of Andhra under Satavahanas bubbled with trading
activities from 270 BC. The coins of Satavahana period, with motifs of ships embossed on them
certainly indicate the amount and influence of trade on economy of the state. In the coastal districts of
Andhra, Roman coins of the period between 14 BC to 217 AD have been discovered. The prospects
of trade in this region attracted almost all the European trading companies which established their
collection points for textiles in the ports across the Krishna and Godavari delta. As a result of the
growing export market, ports in the region were considerably expanded and the port of Masulipatnam
developed into an important port city. Traveler Marco Polo visited the Port of Motupalli and paid rich
tributes to the muslins of the place.
It was one of the ancient ports which had commercial relations before Christ. Pliny and Ptolemy
mentioned about the Motupalli in their writings. Merchants from Rome and Alexandria came to this
port for trade for textiles, muslins, diamonds and spices ships from Japan, China, Sumatra, Ceylon and
Arabia used to come here. After the Satavahanas in the time of Kakatiya Ganapathideva (1198–1261)
again it became prominent port of the Andhra coast. He developed the trade by inviting merchants
from other places and by giving exemptions on taxes. He took personnel interest to develop this port.
Qutb Shahi dynasty under Quli Qutb Shah developed the port of Machilipatnam as the chief maritime
outlet of the kingdom of Golkonda. By the seventeenth century, it seems to have lost its importance.
Farmer Capitalists of Coastal Andhra | 5
Bimilipatnam was also a significant port during the course of 17th century. The coastline between
Kalingapatnam and Bimilipatnam is brought with dangers and, generally inhospitable. The Dutch
established their settlement at Bimulipatnam in the seventeenth century and, built a fort and factory.
It was a principal rice exporting port to Ceylon and Malabar coast. Daniel Havart, described
Bimilipatnam as a ‘rice bowl’ for Ceylon and other ports. The Dutch ships, on the onward transport to
Malacca and Batavia, anchored here to procure rice, meat and other foodstuffs for the journey.
The natural port of Visakhapatnam provided a bold and safe access to its shore. Golkonda ruler,
Sultan Abdulla Qutb Shah (1626–1672) gave necessary nod to Capt. Thomas Joyce to carry on trade,
free from any exactions, to their mutual benefit. This act helped British in establishing commercial
relations with the local mercantile community and established a factory in 1682 A.D. It was a place
abundant in all sorts of goods that could be procured for nominal rates like coffee, tin, pepper, oil
and others. There was a dock yard for repair of ships and the facilities attracted even the European
shippers.
The port of Kakinada is one of the most interesting Eastern ports and busiest minor ports on the
Coromandel coast. It was the safest harbor in India in those times as it had all the natural advantages.
In addition, it was one of the best shipping ports in India. All the raw materials and Lasker seamen
were cheaply available in this port. Kakinada, in fact, one of the pivotal ports on the Coringa bay.
This bay is south of Visakhapatnam and made up of multiple ports each with a spatial proximity,
Coringa, Kakinada, Ingeram, Bendamurlanka, yanam and Jagannathapuram formed important ports of
the Coringa bay.
(https://knappily.com/On%20this%20day/november-25-1839-coringa-is-destroyed-by-a-cyclone/
5a1971e09622cdde40a8faf9)
6 | Andhra Entrepreneurs
On November 25, 1839 a violent tropical cyclone struck the busy Indian port city of Coringa in
Andhra Pradesh province on the Bay of Bengal. There are no measurements of the maximum wind
speed but the storm surge was estimated at 40 feet (12 meters). This destroyed the harbor city and
wrecked 20,000 vessels. An estimated 300,000 people died in the storm making it one of the deadliest
storms in history. The city of Coringa had been hit by another cyclone 50 years earlier that killed
20,000 people, but the port had managed to rebound from that disaster. However, this time, Coringa
was unable to recover economically and remains a very small village today. This storm prompted
Henry Piddington (President of the Marine Courts of Inquiry at Kolkata) to present the results of his
studies of similar storms (especially the 1789 Coringa storm) to the Asiatic Society of Bengal in 1840.
It was during this presentation that he coined the term ‘cyclone’ to describe the coiling circulation of
the winds.
Narasapur port and docks are seen to the south of the cluster of ports in the Coringa Bay in the
Godavari delta. It abounds in handsome quantities of timber and is a convention yard for ship –
building as well as repair. The place was historically known for more than two centuries for its docks
and repair of vessels. Once a ship of the capacity of 1000 tons was built here for the king of Golkonda.
The Europeans used these facilities and built their ships here as the timber, iron and steel were readily
available in the Godavari regions.
In India, there are various places that have the traditional boats and boat building technology.
The Andhara coast is known for 4 types of traditional boats constructed for cargo transport, fishing
and ferrying purposes, which are catamarans (teppa), dugout canoe, stitched-planks-built boats
and Nailed-planks-built boats. Generally the types of wood used for boat building in Andhra
Pradesh are grannari karra (Egesa: Acquicia canilotica), arcini karra (Melia dubia), cinntha karra
(Albizzia sp.), rai karra, teak, circini karra (Anogeissus sp.), mamidi karra (Mango: Magnifera indica),
sal (Shorea robusta), Indian laural (Terminalia tormentosa) and maddi (Alianthus malabarica).
Teppas are simple floating devices, but are the predominant traditional sea craft along the Andhra
Pradesh. Some keeled planked boats locally called padavas are also common vessels along the
Andhra coastline.
To the South of Divy Island and lying on the estuary of a river is Petapolee, popularly called
Nizampatnam. The name Petapuli was in the records till 1679. There was a big shipbuilding industry
and, both the Dutch and the English competed for trade in salt-petre. The Dutch companies
participation in Indian trade started with the establishment of a trading port (called Factory) at
Petapolee, in 1606.
The chief port of Nellore town was Krishnapatnam. It is situated on the left bank of the
river Upputeru. Krishnapatnam otherwise known as Calitor in the records, traded in salt, which
was mainly indented by government and sent to Calcutta and Chittagong. In the district there
Farmer Capitalists of Coastal Andhra | 7
were 31 places from where salt was manufactured and it was lifted from 11 platforms. Salt was
also exported to Sumatra and out stations. In the Nellore district there were nearly forty minor
ports.
(Map of the East-Indies and the adjacent countries, with the settlements, factories and territories,
explaning what belongs to England, Spain, France, Holland, Denmark, Portugal,
https://texashistory.unt.edu/ark:/67531/metapth298421/m1/2/)
Despite all the risks and dangers involved in seafaring, the Telugu traders were active and
adventurous. They were enthusiastic participants in the oceanic trade. They continued the tradition
of seafaring and reaped rich dividends. The flourishing of the ports during the period primarily
depended on regular supplies from the surrounding villages viz., the hinterland. There were
organic links between centres of production and centres of trade. It was at these Narasapur yards
that large ships of the Qutb Shahi rulers were built for voyages in the Bay of Bengal and Arabian
Sea. The English authorities in England appeared to be unhappy with the Indian enterprise in
ship building. King Charles II of England ordered in 1622 that “no one should teach the natives
to build and navigate ships in those parts to the great prejudice of the English nation, contrary to
the royal character granted to the said (East India) Company.”
8 | Andhra Entrepreneurs
Textile of Andhra
(By Jacket and shawl in chintz, skirt in glazed printed cotton, 1770–1800. Jacoba de Jonge Collection in MoMu –
Fashion Museum Province of Antwerp, www.momu.be/Photo by Hugo Maertens, Bruges, CC BY-SA 3.0,
https://commons.wikimedia.org/w/index.php?curid=25129699)
The textile of Andhra were a craze among all sections of the population not only in South-East
Asian countries but also in England, France, Persia etc. A remarkable feature of the dyed chintzes of
Machilipatnam was that colours became more bright and beautiful after washing. In England calicoes
and chintzes were in great demand. To protect their own local textile industry, England followed
a policy of protection and in 1700 and 1721 a number of laws were enacted prohibiting import of
Indian textiles and even wearing of calicoes. Berhampur, Peddapuram and Dharmavaram were some
of the important silk weaving centres of Andhra. The carpets of Eluru and coloured rugs and blankets
of Kurnool were well known in the international markets. In Eluru, the craft was developed by the
immigrants from Persia when came under Muslim rule. At the London exhibition of 1851 the carpets
of Eluru has become the cynosure of all eyes. No foreign or imported wool was used. The wool of
indigenous sheep of Krishna and Godavari was used in their production.
Farmer Capitalists of Coastal Andhra | 9
Irrigation
Irrigation was developed in the Indus Valley Civilization by around 4500 BCE. The size and prosperity
of the Indus civilization grew as a result of this innovation, which eventually led to more planned
settlements making use of drainage and sewers. Sophisticated irrigation and water storage systems
were developed by the Indus Valley Civilization, including artificial reservoirs at Girnar dated to 3000
BC and an early canal irrigation system from circa 2600 BC. Archaeological evidence of an animal-
drawn plough dates back to 2500 BC in the Indus Valley Civilization. Soon all the knowledge is lost
in the dark age of India and this has become another Indian fable.
During Guntur Famine about 40% of the total population died. Besides Guntur, Machilipatnam
and Rajamundry were also affected by the drought. The terrible destruction of the population and
loss of revenue forced the company to construct major irrigation works on the rivers of Krishna and
Godavari. Sir Arthur Cotton was responsible for the construction of the Godavari anicut, which has
changed the profile of the area. Arthur joined the Artillery and Engineering services of the east India
company and was attached to the office of the Chief Engineer of the Madras Presidency. When he
was Superintending Engineer at Vizag, he submitted plan to construct anicut over Godavari near
Rajamundry. The construction work began in 1847 and completed in 1852. Total cost Rs. 1,50,000/-
It was the most benevolent civil construction ever taken at a very low cost. Before the decline started
export of textiles from Visakhapatnam reached 7 lakhs and Machilipatnam Rs. 30 lakhs. Anicut on
Krishna at Vijayawada was completed in 1855 by Capt Orr.
10 | Andhra Entrepreneurs
In modern India enterprising farmers brings to mind farmers from Punjab and Andhra. First on
hardworking farmers of Punjab.
Punjabi Farmers
With almost the entire cultivated area receiving irrigation, Punjab is among India’s most widely
irrigated states. Government-owned canals and wells are the main sources of irrigation; canals are
most common in southern and southwestern Punjab, while wells are more typical of the north and
the northeast. The Bhakra Dam project in neighboring Himachal Pradesh provides much of Punjab’s
supply of irrigation water. Punjab farmers stand out for their entrepreneurial zeal taking up farming
in Europe, Canada, USA against heavy odds.
Smart Punjabi’s found a way, early male Punjabi immigrants married Hispanic women. Many of
the men were unable to retrieve their family members from India, and thus were forced to seek new
relationships in the United States. Barred from owning land due to anti-Asian laws, many married
Mexican women and forged a fusion culture that flourished in California’s Yuba City and Imperial
Valley.
(http://www.sikhfoundation.org/sikh-punjabi-language-studies/a-century-of-sikhs-in-california-
by-bruce-la-brack/)
The transition from colonial elite to rural elite was turning point in large scale creation of enterprises
by the farmer entrepreneurs. Most of the new industries were agro-based, mot common were sugar
factories but other enterprise such as financial institutions and transport companies were also floated
by wealthy landlords.
12 | Andhra Entrepreneurs
Rayagada sugar factory was established in Orissa by a group of wealthy kammas headed by
C. Ramakrishna. They encouraged migration of farmer from Godavari to produce sugar cane.
Sri Ramdas transport was started by a group of local cultivators in Kakinada. Rice mills and rice
trading were initial ventures for additional income. Once they reached saturation, they were rented
out. Many took dealership of agriculture inputs like fertilizers and pesticides. Chit funds and movie
theater also were popular investments.
India’s new capitalists: Caste, business and industry in a modern nation by Harish Damodaran,
Palgrave Macmillan, Basingstoke, 2008, xxii, 66 GBP, 341pp., ISBN: 978-0230205079
Damodaran shows the different ways by which caste and community have contributed to India’s
dynamic private sector, capturing in seven chapters the rise of Indian business firms in specific
industries and locations. Historically sensitive, he traces business communities, beginning with the
old mercantile families and communities (Chapter 2) that had links with Arab merchants, Central
and Southeast Asians and later Europeans before and during colonialism. Next, he examines
the evolution of the upper priestly and warrior castes (Brahmins and Khatris) in the North
Farmer Capitalists of Coastal Andhra | 13
(Chapter 3), the landowning lower castes of Kammas, Reddys and Rajus in the South (Chapter 4),
two other groups of Southern business communities (Naidus and Gounders) (Chapter 5), and Nadars
and Ezhavas (Chapter 6). In Chapter 7, he discusses the rise of capitalists in the West (the Patidars
and Marathas), who emerged from cooperative farming, and in Chapter 8 he tries to answer why the
Northern farming capitalists could not transform themselves into industrial capitalists as successfully as those
from the landowning communities in the South.
There are three major pathways by which industrial capitalists (factory owners) have emerged:
Non-trading castes entered business through social relations, networks and extended families, which
supported subsequent expansion. Whereas upper castes leveraged their social standing to gain access
to capital, lower castes relied on kinship and social networks to promote their caste based communities
and families. Trust, cemented by a common caste background, allowed mercantile families to prosper
and also allowed international money transfers through the hundi system, an old trust-based
money-transfer system organized by India’s trading diaspora. Merchants were also involved with
imperial business and trade. For example, Marwaris from the West moved up during colonial rule
largely by monopolizing internal trade while supporting the trade of English merchants. Under the
British, the Parsis engaged in opium trade with China and like other business communities also
benefited as suppliers to the British in the two world wars.
The evolution of caste- and community-based Indian businesses was incremental: from
humble beginnings, they exploited opportunities created by state spending and relied on extensive
social networks for expansion and strategic diversification. In the North, Mohan Singh Oberoi,
an upper-caste Khatri Sikh, worked in a shoe factory in pre-partition Lahore, became a hotel
clerk in Shimla, and later purchased the hotel from its British owner. Today, Oberoi’s is a leading
international luxury hotel chain. Other businesses found their fortunes abroad. Take Mittal
Arcelor, based in Europe with the world’s largest steel company. Laxmi Mittal had a humble
beginning as a scrap dealer, but now appears in the Forbes list of the world’s richest individuals.
Reliance Industries is a classic story of happenstance, political connections and shrewd business
sense. With a privileged licence to import synthetic yarn, the Ambani family moved to strategically
manufacturing textiles and then integrated backwards to raw materials in petroleum products.
The family found opportunities to diversify into telecommunications and mining. The business
exceeds US$30 billion today. But the use of social networks is best seen in the global diamond
industry. Except for mining, the industry is controlled by the Palanpur Gujratis, an ethnic
community from Western India. Some unusual sources of capitalist dynamics can be gleaned
from Patidar and Maratha communities in Gujarat and Maharashtra, who emerged from milk
14 | Andhra Entrepreneurs
In the late 1970s, many new entrepreneurs and businesses emerged. After partition in 1947,
Delhi’s Punjabi refugee community had found new business opportunities. Being close to the centre
of political power had its own advantages, as they could influence policies in their favour. With the
ousting of IBM in 1977 for refusing to dilute its ownership, many new IT firms were formed. Similarly,
the partnership between the government and Suzuki Motors in the early 1980s also incubated many
entrepreneurs from established business communities – in the National Capital Region, the auto parts
and components industries and in the South dealerships, gas stations and repair centres.
The state also influenced the rise of Indian business. For example, securing contracts in public
transportation systems and government spending on infrastructure such as construction of dams and
irrigation was the first step to diversifying business and transforming Southern farmers in Andhra
Pradesh into entrepreneurs. As a result, the Kammas specialized in food processing, the Reddys in
pharmaceuticals and hotels, and the Rajus in IT. Later, state policy in favour of alternative energy had
similar beneficial impact for companies such as Suzlon, which diversified from textiles to wind power.
Other Southern caste groups – the Naidus and Gounders – also prospered. Many engineer turned-
entrepreneurs in Coimbatore tinkered with technologies and came to dominate textiles, engineering
and agri-business. Tirupur, another Southern city, famous for its flexible specialization in textiles, rose
in the 1980s with nearly half of India’s knitwear exports. The Gounders controlled the entire sub-
contracting chain through ethnic links. factories.
In the South, there has been also upward mobility of lower-middle castes such as Nadars and
Ezhavas (toddy tappers and tanners). However, the reasons for their economic and social progress are
multiple. The first was land ownership, which they leveraged to create an economic surplus. Another
supportive factor for the rise of lower castes was Christianity (which under European missionaries
encouraged education), clerical work, emigration to Southeast Asian plantations and labour contractors.
These opportunities allowed many lower-middle castes to pursue diverse economic activities. Today, a
prominent Nadar is the founder of HCL, one of India’s largest IT companies. Many others diversified
their ‘commodity basket’ into higher-value crops. This bazaar-to factory movement among Nadars is
witnessed in Sivakasi’s match industry.
North Vs South
(http://www.sify.com/finance/what-s-caste-got-to-do-with-business-news-default-jegxs5cjfbgsi.
html)
Damodaran and others also attempted to answer why industrial capitalism has been more
successful in the South than the North and in the West than the East. Better access to education,
Farmer Capitalists of Coastal Andhra | 15
especially English education, and weaker control of merchants in the South have contributed to
greater capitalist dynamics. Southern firms in India were flexible in pursuing a variety of vocations
within the caste system, compared with the Northern business communities. In the North, all the
owners of sugar mills, edible oil/solvent extraction units, dairies, etc were mostly either Banias or
Khatris. Take for example, sugar, where you have Bajaj Hindusthan, Balrampur Chini, K K Birla,
Dhampur Sugar Mills, Dwarikesh Sugar and DCM Shriram Consolidated (all Bania-Marwari) and
Triveni Engineering (Khatri). Similarly, take the big branded basmati rice players: India Gate and
Shrilal Mahal (Bania), Daawat Kohinoor and Lal Qila (Khatri). It is the case even with media: India
Today-Aaj Tak (Khatri), Punjab Kesri (Khatri), Dainik Jagran, Dainik Bhaskar, Amar Ujala, Aaj,
Zee Network (all Bania/Marwari). The striking thing here is that all the owners of sugar mills, rice
mills, edible oil units in the North are Banias or Khatris, whereas the farmers who grow sugarcane,
mustard, paddy or wheat are all Jats, Yadavs, Gujjars, Bishnois, Kurmis, Koeris, Sainis, etc. This was
case surprisingly even in Punjab, where the so-called rich farmers are all Jat Sikhs, whereas the big
players in industry in Ludhiana are all Khatris (the cycle majors – Hero, Atlas, Avon) or Banias (the
various Oswal factions who control the knitwear business).
The above pattern does not apply in the South, where it is difficult to identify industry with
any particular caste. Again take sugar: KCP and Andhra Sugars (Kamma), Sakthi, Dharani and
Bannari Amman Sugars (Gounder), Rajshree Sugars (Naidu), Thiru Arooran Sugars (Mudaliar),
GMR Industries (Komati), Gayatri Sugars (Reddy), Empee Sugars (Ezhava), Ponni Sugars and Ugar
Sugar (Brahmin). Similarly in the media business, we have Eenadu (Kamma), Daily Thanthi (Nadar),
Malayala Manorama (Syrian Christian), The Hindu and Dinamalar (Brahmin), Deccan Chronicle-
Andhra Bhoomi (Reddy), Deccan Herald-Prajavani (Idiga), Sun Network-Dinakaran (Isai Vellalar),
Asianet (Nair) and TV-9 (Raju). Simply put, one sees a diversity of ownership by caste in the South,
unlike in the North where every industrialist is a Bania or Khatri. In the South, the farmer could be
Gounder or a Kamma, as much an industrialist could be from these castes.
Vivek Kaul started researching and examining the database of BSE-listed companies to try and
trace the caste origins of the promoters.
1. Which castes/communities originally got into business in India in the nineteenth and the
twentieth century?
2. What were the reasons for their success?
The old merchant communities in India are the Gujarati Banias/Jains, Marwaris and other non-
Gujarati Banias/Jains, Parsis, Nattukottai Chettiars, and the Lohanas and Bhatias of Kutch-Kathiawar-
Sindh belt. The trading and banking networks of these communities have historically been spread
out much beyond their home base. One of the main reasons for the success of these communities
was a mechanism for remitting large sums of money to remote corners of the country. This financial
instrument was a very old Bania invention called the hundi. A hundi is akin to a bill of exchange.
16 | Andhra Entrepreneurs
What this system did was that it made possible the transfer of cash across the country without the
need to physically carry it. Over a period, hundi became much more than just a remittance facility. It
became a credit instrument. The seller of cotton could use the hundi to take a loan by transferring it
through endorsement to the lender. The lender would give the loan at a discount to the value of the
hundi and when the loan became due, he could encase the hundi on par. To use modern legal, jargon,
the hundi became what we call a ‘negotiable instrument.’ One community that business in India is
associated with is the Marwaris. How do you explain the rise of the Marwaris? The Marwaris were
originally a group of Bania castes from Rajasthan. Besides being involved in money lending and
trading, they acted as army provision suppliers and bankers to the various Rajput princes. Building on
this by the eighteenth century, Marwari banking firms established their presence outside Rajasthan
as well and started financing numerous-cash strapped independent principalities that had risen on
the ruins of the Mughal empire. However, once the English East India Company started making
inroads across India, these Marwari houses seamlessly switched sides. As the British rule expanded
across India, so did the migration of Marwaris across the country. The commissioning of the railway
line between Delhi to Kolkata in 1860 led to movement of the Marwaris eastwards all the way to
Bangladesh and from there into Burma. Another large migration was to parts of Central India. The
migration to Central India reached its peak during 1820–1860, when Malwa opium trade reached
its peak. By the middle of the nineteenth century, Marwaris were present all across India. This led to
them becoming a truly networked group through the indigenous hundi as well as the British-built
railways and telegraph. At this point in time, large multi branch trading firms run by the Marwaris
also started to emerge. Some of the famous firms during that time were Tarachand Ghanshyamdas
of Kolkatta, Sevaram Ramrikhdas of Mirzapur and Bansilal Abirchand of Nagpur. These firms
were magnets attracting fellow Rajasthani clansmen and many of them were ancestors of today’s
famous Marwari industrial houses. Ghanshyam Das Birla’s grandfather, Shiv Narain, was a clerk in a
Hyderabad trading firm and the grandfather of the steel tycoon L N Mittal worked with him.
The community that seems to have made the most of the British rule were the Parsis. How did
that happen? From the late seventeenth century, the Paris evolved a very good working relationship
with the British. At that point most Paris lived in the Surat-Navsari stretch of southern Gujarat and
worked there as agriculturalists, artisans, small-time coastal traders and shipbuilders. They were not
a part of Hindu or the Muslim mainstream. Other than this, they had been exposed to commercial
influences because they lived very close to the ports of Bharuch, Daman and Surat. Therefore, to
the British, they seemed like an ideal recruitment as native brokers, agents and shippers. In 1735,
Lowji Nusserwanji Wadia, a shipbuilder from Surat was invited to set up a dock in Mazagon. For the
next 200 years, nearly seven generation of Wadias, built around 400 ships in Mazagon and Bombay
dockyards. In fact, the rise of Mumbai is very intimately linked to the Parsi migration to Mumbai.
Almost as a part of a deliberate settlement policy, by 1800 the community owned half of the city and
was even known to rent out property to Europeans. The Parsis also gained tremendously when the
Farmer Capitalists of Coastal Andhra | 17
East India Company opened up the Chinese market for opium and cotton, in order to pay for the
tea exported to Britain. In fact, a number of Parsis were even imprisoned by the Chinese authorities
in the Opium War of 1839–1842. However, unlike the Marwaris, the Parsis were direct participants
in export trade as shippers. Take the case of Jamsetjee Jejeebhoy. He used to send opium and cotton
from Mumbai and Kolkotta to Canton, export Chinese tea and silk from there to London, and then
reroute funds from China to India by importing textile and iron goods from Britain. However, over
the years, the importance of Parsis as a business community has diminished. This is primarily because
of Anglicisation and the thrust of economic activity shifting from foreign trade to producing for the
domestic market.
Brahmins in the western and southern part of the country have been fairly successful despite
coming from a non-business background. What are the reasons for that? In 1713, the beleaguered
Maratha King Shahu appointed Balaji Vishwanath Bhat as his peshwa (prime minister). This led to the
family of this Chitpavan Brahmins from Konkan becoming the defacto rulers. Over time, Chitpavan
Brahmins became the biggest moneylenders in the western part of the country. They accumulated
capital by financing the empire and supplying stores and munitions for its war machine. However, all
this came to an end when the last peshwa Baji Rao II was defeated in the third Anglo Maratha War
of 1818. This was a setback for Brahmin enterprise in Western India and the Brahmins were nowhere
to be seen when the Mumbai started to develop as India’s commercial capital. Having said that, the
community retained its grip over education and bureaucracy. Take the case of Ranchhodlal Chhotolal,
a Gujarati Nagar Brahmin from Ahmedabad. During his stint in the government, he conceived the
idea of starting a textile mill. However, it took him almost ten years to realise his dream. The problem
came while arranging the finances for the venture. The Ahmedabad Spinning and Weaving Company
was finally registered in August 1858, just four years after a Parsi, Cowasji Nanabhai Davar, floated
the first Indian owned mill at Mumbai. Towards the end of the nineteenth century, Ahmedabad had
25 mills, though 21 mills were controlled by Banias and Jains. Just as was the case in the west, in the
south too, Brahmins had a head start on education – particularly English education, the master key for
opening the doors to the professions and service appointments. The Tamil Brahmins’ entry into the
industry happened in the 1920s. Take the case of T V Sundaram Iyengar, whose group has become a
veritable metaphor for Tambram capital. He had a middle class background and in 1908 he invested
Rs. 25,000 he inherited as share in ancestral property in timber trading. Profits he made on this were
deployed four years later to launch a bus service in Madurai. In 1923, TV Sundaram Iyengar and sons
was incorporated with its business centred around the sale and servicing of automobiles. Starting
from this, over the years the group has started a series of auto-parts making companies like Sundaram
Clayton, Sundaram Fastners, Sundaram Brake Linings etc.
Some of the communities/castes that get into the business first taste big money through agriculture
and then deploy the money into business. Given this, why haven’t we seen the Jats (Sikhs and Hindus),
the biggest farming community in northern India, get into business big time? Why does business in
18 | Andhra Entrepreneurs
north India continue to be dominated by Banias and Khatris? Yes, this is indeed a big mystery. Only
two big Jat industrialists we have in this country are KP Singh of DLF and Sameer Gahlaut of
India Bulls. The main reason for this is the fact that in the North, the Bania always had a ubiquitous
presence right from the level of the village grocer-cum-moneylender to the arhthia in the mandi, the
big city financier, and the factory owner. This was a network very difficult to break into, even if you
are a big farmer.
In the South, there was no equivalent of a Bania caste. The Chettiars were mostly moneylenders
and who actually preferred to venture out to Burma, Malaysia and Sri Lanka. So, there was always
this ‘Vaishya vacuum’ that could be filled by any enterprising community. This absence of strong
entry barriers, therefore, facilitated the entry of several industrialists from non-traditional business
communities – including not just the Gounders and the Kammas, but even Brahmins. There was also
an additional factor: access to education, in turn, facilitated by reservations/social justice movements
right from the early twentieth century. As a result, communities such as the Kammas, Naidus, Ezhavas
and Nadars were able to take advantage of educational opportunities, unlike the Jats or Yadavs who
remained educationally backward until recently.
The farmer-capitalists of coastal Andhra Pradesh. Economic and Political Weekly 23 (27&
28): 1376–82, 1433–42, 1988. Carol Boyak Upadhya
The author traces the rise of a new class of businessman out of the class of capitalist farmers in
coastal Andhra Pradesh and explores some of its social and economic characteristics. The research
project consists of in depth interviews with about 50 businessmen in Vizag who came from landowning
and cultivating families of coastal Andhra. These businessmen are engaged in a wide variety of
activities. The largest number are small industrialists followed by contractors, trawler operators and
traders. Almost all entrepreneurs started out as small businessmen and their business constituted as
partnership firm.
All business activities by this class started after 1950. They tended to invest in non-industrial
and low capital types of business. Most did not have sufficient capital in the beginning to start
industries larger than small scale but those who have made money in other businesses particularly
trade and contracting do look for better opportunities for industrial investment. Much of the capital
comes from agricultural land. Agricultural profit is reinvested in business but sale of land is not
uncommon.
Businessman from rural landed class are the conduits along which agricultural surplus flows into
industry and other non-agricultural sectors of the economy. The capital tends to concentrate in few
developing regions like Hyderabad, Vijayawada, Visakhapatnam. And it focussed into few proven
fields of business. Once a pioneer proves a new line of business there will be spate of investments in
wither same type of industry mostly by members of same social group.
Farmer Capitalists of Coastal Andhra | 19
Farmer entrepreneurs gradually launched into business as an adjunct to agriculture. Their entry is
funded by agriculture profits. Agriculture and business were seen as complementary, farms provided
security with low returns whereas Business a high return higher risk proposition. The members of
this new business community are united by their common class and regional origin, that is they come
from a class of landed cultivators of Coastal Andhra. Whereas most members of trading castes enter
trade regardless of their economic status, among cultivating class only those families with sufficient
resources have the capital and incentive to start business enterprise
Dominant caste and territory in South India: The case of the Kammas of Andhra Pradesh,
Dalel Benbabaali
(https://www.scribd.com/document/321971646/Princeton-Talk-on-Kamma-Caste)
Kammas are widely perceived as the new business class though trading is not their caste profession.
Kammas’ early history is associated with buddhism, which was very influential in the Krishna valley
in the 3rd century. According to epigraphical records, the Krishna delta area at that time was known as
Kammanadu, and the main farming community living there was called Kamma. But it is only after the
10th century that the name Kamma started referring to a specific Hindu agrarian caste. Most Kammas
were small farmers, but some of them worked as soldiers for the Kakatiya kings of Warangal. During
the Vijayanagar empire, more and more Kamma farmers were employed as soldiers, and even as army
commanders, to participate in the conquest of the Tamil country. At that time, war was the main
migration factor, and this explains the presence today of a large Kamma community in Tamil Nadu,
which is the consequence of military migrations from the 15th century onwards. In times of peace, the
Kamma settlers engaged in agricultural activities on the conquered territories of South India.
The rich Kamma farmers were no longer dependent on agriculture. They invested in agro-
industries, transportation business, and they were able to send their children to Hyderabad for higher
education. They became more and more urban-oriented, in search of new avenues of employment.
When they migrated to rural areas, it was mostly to new irrigation projects, because they knew they
could buy cheap lands in Telangana or in the neighbouring State of Karnataka, and then improve
20 | Andhra Entrepreneurs
their plots once irrigation was available and thus benefit from land appreciation. Even in cities like
Hyderabad, when they bought land, it was often speculative as they were very active in the real estate
business.
The development of an entrepreneur class is not a function merely of economic forces but also of
social and political history of the region and particularly of the dominant landowning castes. They
played an important role in the emergence of the new business class. For many coastal – Andhra
framers the type of trade in which they engaged is more likely a capitalist enterprise than traditional
bazar trading.
The research on raise of Farmer Entrepreneurs of Andhra was detailed, two additional factors also
deserve a place. They are; Awakening of Andhra and Empowered women of Andhra.
Da Vinci set up controlled experiments in water flow, medical dissection, and systematic study of
movement and aerodynamics, and he devised principles of research method that led Fritjof Capra to
classify him as the “father of modern science.” Other examples of Da Vinci’s contribution during this
period include machines designed to saw marbles and lift monoliths and new discoveries in acoustics,
botany, geology, anatomy and mechanics. A suitable environment had developed to question scientific
doctrine.
Reforms in Andhra started with advent of Buddhism and Jainism. In the history of Buddhism
Andhra then a maritime power took leading role in spread of Buddhism to Far East. Andhra was home
of Mahayana, Nagarjuna was credited with laying firm foundation for Mahayana. The cosmopolitan
spirit of Buddhism helped to remove tribal barriers, integrated the people and gave them a cultural
identity. Tirthankara Vasupujjya Jainism was also popular in Andhra. Vijayawada was a great Jain
center during reign of Pulakesi II. Both Buddhism and Jainism disappeared over a period of time.
Social and cultural renaissance movement in Andhra started in the latter half of the 19th century.
With the establishment of University of Madras in 1857, higher education in Andhra started upward
journey. Andhra University inaugurated in April 1926 at Vijayawada with jurisdiction of all Telugu
districts. The spread of education and the rise of Telugu journalism accelerated the pace of public life
in the coastal districts.
Andhra Pradesh and Andhra people could not be what they are if Veereshalingam had not arrived to
shake them from their medieval stupor. He wrote the first novel in Telugu, rendered the first drama
in Telugu, authored first books on natural sciences and history. He was the father of renaissance
22 | Andhra Entrepreneurs
movement in Andhra. Women empowerment began with this social reformer fighting for educating
women and widow re-marriage. He started a girls high school at Dawaleswarama in Septemeber
1874. He encouraged co-education and admitted girls in schools started by him. He organised the
first widow re-marriage on 11th December 1881.
He was a disciple of Veeresalingam and has been described as the most powerful orator of his day. He
founded the Social Purity Association in 1891 to train people as honest citizens. He worked for the
eradication of untouchability and upliftment of Harijans, and founded an orphanage and a hostel for
Harijan boys and girls in Kakinada.
He strived for the abolition of the “Devadasi system” in Andhra and succeeded to a considerable
extent. He promoted widow remarriages and encouraged women’s education. He was an ardent
Brahmo and promoted the Brahmo movement in Andhra.
Gurazada Venkata Apparao was a noted Indian playwright, dramatist, poet, and writer known for
his works in Telugu theatre. Rao wrote the play Kanyasulkam in 1892, which is often considered
the greatest play in the Telugu language. One of the pioneers of Indian theatre, Rao holds the titles
Kavisekhara and Abyudaya Kavitha Pithamahudu. In 1910, Rao has scripted the widely known Telugu
patriotic song “Desamunu Preminchumanna.”
Farmer Capitalists of Coastal Andhra | 23
(A more than century-old photograph of the marriage of Polavaram Zamindar with a 12-year-old girl, which
Gurajada Appa Rao (seated on the ground second from right) attended with his father. This incident inspired
the social reformer to write his iconic classic drama, Kanyasulkam. The picture is from the collection of Velugu
Ramunaidu of Vizianagaram, an admirer of the legendary writer. —photo: C.V. Subrahmanyam)
Vemana
Gona Vema Reddy, popularly known as Vemana, was born in Nellore. He was a major Telugu
philosopher and poet writing in Telugu. His poems are known for their use of simple language and
native idioms. They discuss the subjects of yoga, wisdom and morality. He is popularly called Yogi
Vemana, in recognition of his success in the path of Yoga. Many lines of yogi Vemana’s poems are
24 | Andhra Entrepreneurs
now colloquial phrases of the Telugu language. They end with the signature line Viswadaabhi Raama
Vinura Vema, literally Beloved of Vishwada, listen Vema. There are many interpretations of what the
last line signifies. Vemana’s poems were collected and published by C.P. Brown in the 19th century.
Dravidian Movement
The Self-Respect Movement is a movement with the aim of achieving a society where backward
castes have equal human rights and encouraging backward castes to have self-respect in the context
of a caste-based society that considered them to be a lower end of the hierarchy. It was founded in
1921 by S. Ramanathan who invited E.V. Ramasamy (also called as Periyar by his devoted followers)
to head the movement in Tamil Nadu against Brahminism. The movement was extremely influential
not just in Tamil Nadu, but also overseas in countries with large Tamil populations, such as Malaysia
and Singapore. Among Singapore Indians, groups like the Tamil Reform Association, and leaders
like Thamizhavel G. Sarangapani were prominent in promoting the principles of the Self-Respect
Movement among the local Tamil population through schools and publications. A number of
political parties in Tamil Nadu, such as Dravida Munnetra Kazhagam (DMK) and All India Anna
Dravida Munnetra Kazhagam (AIADMK) owe their origins to the Self-respect movement. Periyar
was convinced that if man developed self-respect, he would automatically develop individuality and
would refuse to be led by the nose by schemers. One of his most known quotes on Self-Respect was,
“we are fit to think of ‘self-respect’ only when the notion of ‘superior’ and ‘inferior’ caste is banished
from our land.” Tamil Brahmins (Iyers and Iyengars) were frequently held responsible by followers
of Periyar for direct or indirect oppression of lower-caste people and resulted in attacks on Brahmins,
which, among other causes, started a wave of mass-migration of the Brahmin population.
The first half of the 19th century had produced two interesting ideologues in the South. They were
Mahatma Phule in Bombay presidency and Pandithamani Ayothidasar in Madras presidency. It was
Ayothidas who popularized the concepts of Dravida, Sakya Buddhist society that helped to lay the
foundation for a self-respect movement to be led by Periyar and even inspired Ambedkar. In fact,
Periyar Ramasamy was influenced by Ayothidas and worked with him when he was young. Similarly,
Phule had laid the philosophical foundation for B.R. Ambedkar to work in Maharashtra. But there
was no such precursor for Tripuraneni.
Tripuraneni had very good contact with the Dravidian movement led by Periyar and participated
in their meetings at several places. He hailed from a farmer’s family and started his public career as
an independent freethinker and joined the contemporary Social Justice movement started by non‐
Brahmin landholders in Madras Presidency. Unlike other members of the Justice Party in the Andhra
region, Tripuraneni was not a landlord or a zamindar.
Ramaswmay Chowdary did not suffer adverse discrimination from Brahmans; on the other hand,
being from a well-to-do property-owning farmer family, he was in a position to “give”; not submit to
insult or humiliation. He had modern education, went to Ireland and qualified as a Bar-at-Law. He did
not practice law but was exceedingly good in logic; a quality to be a rationalist for which he is famously
known. He studied Telugu and Sanskrit literature, progressed to be a Sataavadhani, proving thereby
that he was equal to any high caste Brahmin scholar. He believed that South Indians were Dravidians
and that the caste system and Brahmin superiority were imposed on the subjugated Dravidians in
the South. He studied the 18 Puranas and found lot of irrational and unjust expositions in them. He
denounced the Brahminical order that denied the right to education, especially Sanskrit and Vedas
to Sudras and Panchamas. He found no scriptural sanction for untouchability and much less of it for
evil and superstitious practices – animal sacrifice to Gods, belief in omens, rahu kaalams (unpropitious
times), ritualistic poojas and visits to temples, even idol worship, child marriages, conduct of marriage
rites in Sanskrit incomprehensible to whom it is intended. He used his vast scholarship and pen and
the lawyer’s logic to assault caste domination and discrimination through plays, prefaces, speeches and
debates.
He did not denounce Hinduism/Sanaatan Dharma but denounced all the privileges and exclusive
rights and claims of Brahmins to the disadvantage and humiliation of other castes. His logic and
rationalism naturally led to his criticism of the caste system. In his plays Sambuka Vadha and Khooni
(murder) he showed up the Brahmin-instigated atrocity of murder by Dharma-upholding Kshatriya
ruler of a non-Brahmin performing Yagnas.
He had the courage of convictions unlike the present day secularists who promise whatever is
asked by vote banks. As Municipal Chairman in Tenali, he refused permission for animal sacrifice on
a Hindus festival, even when the Councilors threatened a “no confidence motion” and public agitation.
He did not lose faith in Sanatan Dharma – he just denounced whatever was against reason, in the
26 | Andhra Entrepreneurs
Dharma’s tradition of free and unfettered inquiry of the Upanishadic seers. Indeed, he was performing
the Arya Samaaj rite of Shuddhi to admit back to Hinduism, those who were inveigled to convert to
Christianity.
Sri Ramaswamy’s legacy to the people is his powerful literary work which to this day amazes readers
for its bold and logical assault on orthodoxy and reaction. The Kamma community (from which he
rose) responded to him magnificently – they look to education, to compete with the most forward;
education gave them entrepreneurship. Ramaswamy’s patriotic song (like Tamilnad’s Bharati’s)
“Veeragandhamu techinaramu, veerudevvadu telpudee…” became the battle-song of the Satyagrahi’s,
freedom-fighters.
The aspirations of Kammas in regard to self-development, claims over a superior social status and
intra caste reform were to continue for a long time to come. Even during the peak of the activities
of Justice Party, the non-Brahmin castes did not lose their insights into other social issues. The first
Kamma Conference was organised in 1910 under the chairmanship of Kanthamaneni Rangaiah
Chowdari. Following this, various conferences of Kammas were organised throughout Andhra
with vigorous activity confined to Godavari, Krishna and Guntur districts. In Rayalaseema, these
conferences were organised at places like Gutti and Kurnool. Most of these conferences gave an
increased emphasis to eradication of social evils and the importance of education.
Telugu Women
Saree with petticoat worn along with blouse& bra and one end of saree left flying is typical
representation of Indian women dress. This symbol of national dress has an interesting story. In
India unlike Britain there are no written code of conduct of sumptuary laws about should be worn.
What was considered suitable was spread through word of mouth. In England there was rebellion
against Victorian Dress code and it was called rational dress movement. The feminists wanted
more practical and comfortable dress than the fashion of the times. In India historians trace the
beginning of saree to approximately 1500 BC. The manner of wearing the unstitched cloth varied
across regions and classes. It appears daughters of farmer families in Andhra were the first to wear
the present version of saree and the fashion had come from dancing girls of Maharashtra.
Inukonda Thirumali focussed on the historical production of women’s dress to explore the level
of their gender consciousness and social mentality. The evolution of women’s dress was not only
an indicator of the conflict between men and women and also upper castes and their lower castes
but also an indicator of men’s vision of women. The daughter or paduchu, among the Telugus has a
blessed place in the family; she is loved and respected by her father, brothers and sister-in-law. This
is a cultural symbol of Telugus among all upcoming castes in all Telugu speaking regions. The male
members resented the modern changes that reflected in women’s clothing in general but in the case of
Farmer Capitalists of Coastal Andhra | 27
the adapaduchu, the father did not resent the change, he rather welcomed it. This way Andhra women
played the role of harbinger of new dress and gender attitudes.
The revika came to Andhra from Pitan a town in Maharashtra. In the 19th century Chandragiri sari,
Kakinada bangles and Rajamundry ravika were popular in Andhra region. The Reddy and Kamma
paduchu became trendsetters for the entire Andhra Region; they followed and changed trends without
inhibition. Nautch women had considerable influence on fashion. The lehanga was primarily used by
the dancers and rich peasant women belonging to Kamma and Reddy castes were the first to adopt
the lehenga with myjarukattu. The Telugu paduchu established her identity with tight myjaru sire and
a biguvu raika tucking flowers in her plait. The acceptance of this dress was a great achievement for
women in Andhraisation of their person and personality. The fashion tender after marriage turns into
family manager.
(A Nautch, Native Dancers at Nizugapatahi Coast of Coromandel East Indies; group of dancers in centre in
interior, musicians to right and dancers to left, Captain Lyons seated to left in foreground smoking on long pipe and
attended by turbaned man. 1801. From British Museum)
The peasant family entered into a commercial relationship after the introduction of ryotwari
tenure in the Andhra region. The legal ownership made them work together and protect their land
for their family and children. The rural women from working families were rooted in the reality of
28 | Andhra Entrepreneurs
land ownership and worked in fields. The women’s position as an equal partner and companion of her
husband made her assertive in all family related matters. Women transformed from family satisfying
wife to the manager of family budget in order to expand the farm. Cutting expenditure on food and
clothing and wastage prevention became the primary tasks of the women. Their devotion and energy
was used for the family’s advancement through agricultural progression. They sacrificed jewelry and
even mortgaged it when needed. These new women and families were the real force behind the success
of the commercialization of agriculture in Andhra. Cultivation of commercial crops needed tight
schedule for the year to raise crop after crop but also tight day beginning every day early morning.
The new family proved that additional land can be acquired if wife and husband worked together.
The peasant families increased output with hard work though the size of their holding remain small.
The modern Andhra women of dominant peasant castes came to be known as a responsible
hardworking family women. Acquisition of property and prosperity of the family became the motto
of life.
The company become a Government company and on 9thNovember 1983 the factory was
dedicated to the people by the Honorable Chief Minister of Andhra Pradesh Mr. N.T. Rama Rao
(Late), Thus APHMEL is truly a ‘people’s project. APHMEL is in 206 acres with all infrastructural
facilities like railway lines, roads, water facilities, power supply etc., with great foresight of
APHMEL, at the early state itself set up man power development programmers, and to this end a
training cell was established at Autonagar, Vijayawada from here emerged a vast reservoir of skills
in various disciplines.
Farmer Capitalists of Coastal Andhra | 29
Similar vision by farmers of Guntur district created new capital city – Amaravathi. Farmers were
agitating all across India against Land Acquisition by the state. Initially land was acquired for building
dams, mines and infrastructure. Such development initiatives were justified as steps being taken to
achieve rapid economic development necessary for public welfare in the long run. There was always
resentment on compensation and rehabilitation. When large tracts of land acquired for SEZs remained
unoccupied, people lost faith in the system. Violent reaction was noticed in Bengal at Nandigram and
many parts of the country. Due to opposition, Odissa government had to cancel prestigious POSCO
project.
In this background, orphaned state of Andhra had to build new capital city. For revenue deficit
agricultural state acquiring land as per land acquisition bill was not feasible. Visionary farmers of
Andhra again came as saviors. Amaravathi will occupy 54000 acres, that will over 10 years house
Andhra Pradesh’s secretariat, the high court, the legislative assembly and other structures. It will
also be home to 30 lakh people. Of that 54000 acres, nearly 21000 acres is already owned by the
Government. The remaining is owned by over 23000 farmers across 29 villages. Acquiring the land
would have cost the AP Government more than 7500 crore rupees and would take several years. Add
to that rehabilitation and re-settlement requirements to be fulfilled under the Land Act, 2013.
Farmers have “voluntarily offered” about 90 per cent of the 38,581 acre land required for Andhra
Pradesh’s new capital at Amravati under the pooling system.
Whether Farmer Capitalists of Andhra made wise investment or not – history will judge.
Chapter 2
Turgot and Say differentiated the capitalist from the entrepreneur. According to them, a Capitalist
was one who assumed the risk or uncertainty whereas an entrepreneur obtained and organized production
factors to create value. The term entrepreneurship encompasses a wide range of activities such as
creating, founding, adapting and managing a venture. Entrepreneurship is the function of seeking
investment and production opportunity, organizing an enterprise to undertake a new production
process, raising capital, finding site, hiring labour, arranging the supply of raw materials, introducing
new products or commodities. It is the character, practice and skill of an entrepreneur that combine
innovativeness, readiness to take risk, sensing of opportunities, heightened initiative, perceiving and
mobilizing potential resources, concern for standards of excellence, persistence in achieving the goal,
positive orientation to problem solving and constant striving for growth and excellence. When all
these attributes are developed in one person, the person becomes an entrepreneur. Such entrepreneurs
can be found in any field like business, education, public or professional bodies.
Farmer Capitalists of Andhra took risks and ventured into non-farming areas or farming along
River Krisha, Godavari crossing traditional borders. Second generation of Andhra Entrepreneurs
built organizations and in the process disproved popular theory of Entrepreneurship in India.
According to Varna scheme, the Hindu society consists of five broad caste categories. The segment
traditionally associated with entrepreneurship was the Vaisyas, who specialized in trade. In northern
India the term baniya was used to denote any merchant. Indian entrepreneurship mainly came from
three community groups, Parsees, Gujaratis and Marwaris. Both Parsees and Gujarati entrepreneurs
had their beginning as traders whereas Marwaris were from money lending class. This coincides with
the usual pattern that, industrial entrepreneurs had begun their enterprise mostly as traders.
Gujarat had a highly developed bania community, which consisted of Hindu Jain and Muslim
trading communities (Bohras, Khojas and Kachchhi). For centuries the trading community of Gujarat
and erstwhile Saurashtra had been involved in foreign trade, especially in west Asia – mostly with
Iraq and Iran. The largest trading and industrial group in Gujarat was the Jains. After the formation
of Pakistan a large number of Bohras and Khojas migrated to Pakistan and became the famous
entrepreneurs of Karachi. In late 19th and early 20th centuries a large number of people from Patel
30
Second Generation Andhra Entrepreneurs | 31
community of Gujarat migrated to Kenya, Uganda, Tanzania, Zambia and South Africa to first get
started with trading and then focus on growth and diversification.
Parsees migrated from Persia to Gujarat and started their career as small farmers. In the 19th
century, they took English education and adapted to European lifestyle to become pre-eminent lawyers,
physicians, scientists and other professionals. They were brokers for the European traders at Bombay
and Surat and later gradually established themselves as merchants. By the middle of 19th century they
emerged as a dominant trading and financing community in Bombay and Gujarat. During the same
time they controlled majority of the India’s foreign trade. 1870 onwards Parsees established several
cotton mills in Mumbai. Two of the well-known Parsee industrialists include Jamshedji Nussarwanji
Tata and Adi Godrej. Jamshed N Tata was the first to establish an iron and steel mill in India. Adi
Godrej pioneered manufacture of steel safes, office/hospital furniture and consumer durables.
For more than three hundred years, merchant traders have travelled from Rajasthan villages across
northern and eastern India, as well as to Russia and Central Asia. These traders belonged to a varied
trading heritage, identified by various sub-castes. By the late nineteenth century, they acquired the
ethnic tag “Marwari.” The Marwaris are renowned all over India as the most prominent group of
migrant baniya. They acted as intermediary traders or middlemen for the British firms. In 1564,
merchants of Marwar were awarded the contract of supplies for soldiers of Akbar’s camp during
the reign of Suleman Kirani. Rajasthan was faced with insufficient rainfall, famines, the economic
exploitation by feudal lords and the terror of robbers and dacoits. Because of these reasons the trading
community of Rajasthan, especially Shekhawati Marwaris migrated to other places in India. Upon their
arrival in Bengal, these merchants introduced themselves as Marwaris. Historical evidence shows that
Marwaris were involved traditionally in financing. To quote a few examples, Seth Mirzamal advanced
a sum of four lakhs of rupees to Maharaja Surat Singh of Bikaner. The Poddars of Ramgarh provided
financial assistance to the Raoraja of Sikar. While serving the Mughal Nawabs of Bengal, the head
of Oswals community of merchants was given the hereditary Mughal title Jagat Seth (“Banker of the
World”). In the mid-nineteenth century other trading community of Rajasthan, viz., Oswal, Agarwal
and Maheshwari migrated to Calcutta and displaced the Bengalis as the principal collaborators of the
expanding British companies, and occupied the key entrepreneurial positions of trader and financier.
It was only after 1920, that the Marwaris entered the manufacturing sector. The beginning of the
industrial age in India was seen in Calcutta. Entrepreneurs from Bengal as well as other parts of India,
maintained a significant base of operation in Bengal. All the goods were sent from Calcutta and were
from four families viz., Durgha Prasanna Ghose, Rajender Dutt, Raj Kissen Mitter and Nusserwanjee
Wadia.
British entrepreneurs developed coffee and tea plantations, and jute manufacturing. They mostly
started off as small firms, gradually diversified, and finally ended as conglomerates with multiple
products and businesses. Such conglomerates were managed through the agency system. Some of the
32 | Andhra Entrepreneurs
Indian traders established agency connections with reputed British firms of London. As the British
East India Company lost its monopoly the Indian agencies increased and expanded their activities.
British entrepreneurs were not interested in cotton textiles and steel manufacturing. Taking this as
an opportunity, Indian entrepreneurs established and flourished in cotton textile and steel businesses.
The Parsee community took early initiatives to set up these industries. The Birlas, Dalmias, Goenkas,
and Juggilal Kamlapat, and Walchand Hirachand established businesses during the inter-war years.
Businesses were promoted in the fields of sugar, cement, textiles, construction, chemicals, newspapers
and publishing, banking, insurance and a host of other fields. During the Second World War many
Marwari families including Bangurs, Goenkas, Shethias, Beriwallas, Jhunjhunwallas, Bhuwalkas and
the Jaipurias entered the industrial scene.
Amrutanjan was founded in 1893 by journalist and freedom fighter, Kasinathuni Nageswara Rao
Pantulu. He was born on 1 May 1867 in Elakurru village, Pamarru mandal in Krishna district of
Andhra to a Brahmin couple, Bucchaiah and Syamalamba. He received his early education in his
native place and later at Machilipatnam. He graduated from Madras Christian College in 1891.
Kandukuri Veeresalingam’s articles in Vivekavardhini journal influenced him. After a brief stint in
business in Madras, he went to Calcutta to work in an apothecary business for some time. Later, he
went to Bombay to work in an office. But, he was restless and interested in starting his own business.
He founded Amrutanjan Limited in 1893 and invented Amrutanjan pain balm, which soon became
a very popular medicine and made him a millionaire. He recognized the need for a Telugu language
journal to campaign effectively for the freedom struggle and founded a weekly. Andhra Patrika, in
1909 in Bombay. In January 1924, Rao launched a Telugu journal, Bharati.
Second Generation Andhra Entrepreneurs | 33
Sri Bhogaraju Pattabhi Sitaramayya (24 November 1880 – 17 December 1959) was born in a
Telugu 6000 Niyogi Brahmin family in Gundugolanu village, Krishna district (now part of West
Godavari district) in Andhra Pradesh. Pattabhi graduated from the prestigious Madras Christian
College, fulfilled his ambition to become a medical practitioner by securing M.B.C.M. degree.
He started his practice as a doctor in the coastal town of Machilipatnam, headquarters of Krishna
District and the political centre of Andhra. He left his lucrative practice to join the freedom
fighting movement. He established Andhra Bank in Machilipatnam on 28 November 1923.
It commenced business on 28 November 1923 with a paid up capital of ₹100,000 (US$1,500)
and an authorized capital of ₹1 million (US$15,000). He also founded many other financial
institutions – Krishna Cooperative Central Bank in 1915, Andhra Insurance Company in 195,
Vadiamannadu Land Mortgage Bank in 197, Bharat Lakshmi Bank in 1920 and Hindustan Ideal
Insurance Company in 1935.
Ayyagari Ramamurti (1895–1949) was a teacher of science. He foresaw a great future for the
manufacture of scientific instruments in India and with money borrowed from friends started
34 | Andhra Entrepreneurs
the Andhra Scientific Company in 1926. Converted it to public limited company in 1937 with
a capital of Rs. 5 lakhs. By the end of second decade the Andhra Scientific Company became
the leading and biggest manufacturer of precision scientific instruments with annual turnover of
Rs. 25 lakhs employing 600 people. He had many more dreams to industrialize the place. Along
with his brother Dr. AN Rao started a pharmaceutical unit called Eastern Drug Company in
early 40s. Again in 1944 he founded National Chemicals Ltd at Machillipatnam for manufacture
of industrial chemicals, fertilisers and laboratory chemicals. He started Scientific Glass Products
for manufacture of optical components. He died of cancer before realizing his plan to start Soda
Ash factory.
Sugar Barons
Mullapudi Harischandra Prasad, Founder of Andhra Sugars
Tanuku, a historic little town in West Godavari District of Andhra Pradesh on the banks of sacred
Gosthani River was part of the history books along with the empire of Samudragupta. The region
has a timeless reputation for prosperity and also known as “Punya Bhoomi” as it had a lot of scholars,
poets, artists and entrepreneurs. Late Shri PSRVK Ranga Rao and Shri Mullapudi Harischandra
Prasad showed an idea for rooting an agricultural industry, a small sugar factory in the beautiful
village of Tanuku. The Mullapudi Family of Tanuku and the Pendyala family of Dommeru from
strong agricultural background put their heart and soul before they laid the foundation in the year
1947 by Hon’ble Late Shri VV Giri. Mullapudi Harischandra Prasad (28 July 1921 – 3 September
2011) was regarded as one of the pioneers of Andhra Pradesh industry having started Andhra Sugars
in 1947 – one among the first industries set up in Independent India and hence called “Andhra Birla.”
He established the first aspirin factory in India and created a rocket fuel unit that supplied to Indian
Space Research Organisation.
Second Generation Andhra Entrepreneurs | 35
Late Shri. Adusumilli Gopalakrishnaiah, who hailed from Gudivada, is pioneer in setting up the
Cooperative sugar factory of 600 TCD as early as in 1936 in Vuyyuru under cooperative sector.
Velagapudi Ramakrishna was an Indian Civil Service (ICS) officer was born in a Telugu-speaking
Kamma family to Velagapudi Venkata Subbayya Choudary in 1896 in the village Bellamvaripalem
in the Guntur district of Andhra Pradesh, India. He studied at Oxford University and acquired B.Sc.
and M.A. degrees. Shri. Velagapudi Rama Krishna., ICS, had conceived the idea of promoting agro
based industries, when he was Director of Industries, Madras state. He took over the sugar industry
in 1941, at Vuyyuru which was not doing well. The sugar factory is of 600 TCD and it is christened as
The KCP Ltd. He is source of inspiration to many entrepreneurs to set up sugar industries in Andhra
Pradesh. Some of them are Andhra Sugars, Sarwaraya Sugars and Deccan Sugars. Since then The
KCP Group has diversified into Cement and Heavy Engineering. The KCP Cement Division went
operational in 1958 and was India’s first dry process kiln. The KCP Heavy Engineering Division
was established in 1955 as a sprawling High Technology Complex in the suburb of Chennai. This
complex is one of the largest and highly integrated centers with Casting, Fabrication and Machining
facilities required in the manufacture of large infrastructure machinery for core Industries like Sugar,
Cement, Steel and Power.
Nutrine Confectionery Company Limited was founded in 1952 and it is a part of the Nutrine
Group. Nutrine Confectionery Company Limited was founded by Shri B. Venkatarama Reddy.
36 | Andhra Entrepreneurs
He was a graduate of National University, Adyar. The company is involved in the business of
producing and exporting a wide range of toffees and confectionery. Since 1980, the company
is the single biggest producer of toffees and confectionery in India. Nutrine Confectionery
Company Limited manufacturers a wide range of products such as instant foods, fruit pulp,
chewing gums, processed fruits, and dehydrated fruit bars of Guava, Mango, Papaya, and Banana.
Nutrine Confectionery Company Limited has a high market share in the organized sector of
confectionery which is around 34%. Nutrine Confectionery Company Limited manufactures its
confectionery at the main factory located at Chittoor and it also has arrangements for packaging
at many centers. It is the only company in the country that uses an innovative technology for
manufacturing bars of dehydrated fruits. The company employed about 3000 persons at the
height of it glory and turnover of R 1710 crores in year 2000. Venkatarama reddy is credited with
developing rural marketing.
‘Siris’ Raju
Gokaraju Subba Raju (GS Raju) promoted Siris Pharma Limited in Vijyaada. Born in Juvvalapalem
in West Godavari district, he did his MS in Pharmaceutical Sciences at University of California, San
Francisco. The firm was inaugurated by the first governor of Madras Province Colonel Maharaja
Rao Sri Sri Kumarsinhji Bhavsinhji in 1950. he Company is one of the first in India to manufacture
Analgin in private sector. Company is also one of the first in India to manufacture Sodium Methoxide
liquid using Caustic Lye which is a low, cost raw, material instead of Sodium Metal, a very high value
imported raw material. The Company is also one of the first in India to manufacture SMO Powder
through the Caustic Lye Route. These products offer significant contribution to the profits of the
Company.
Second Generation Andhra Entrepreneurs | 37
Jayant Dharma Teja shipping tycoon, nuclear physicist, financial wizard is unique in many respects.
His father, Jayanti Venkat Narayan Teja, had renounced Brahminism, taken an oath of poverty, and
became a missionary of the Brahmo Samaj founded by Raja Rammohan Roy in the early part of the
19th century. The elder Teja, resigned from his career as a judicial magistrate in 1911 and helped set up
Brahmo missions all over India, from Chittagong in erstwhile East Bengal to Nainital in the shadow
of the northern Himalayas. He was among the founders of the Congress units in Orissa and Andhra
Pradesh, and was imprisoned by the British six times until his death in the 40’s. His wife, Surama, was
the first woman in south India to be imprisoned as a nationalist. She went to jail five times.
Between the singing of Brahmo hymns and chanting of the Upanishads, Teja grew up as a brilliant
student, a linguist and a mathematical genius. He took his masters degree in physical chemistry at
Mysore University, and then did a year’s stint at Sevagram near Wardha, the ashram founded by
Gandhi. He took over as executive vice-president of a company called Mystic Tape, which made
magnetic tapes, and literally pulled it up by the bootsraps, taking its US $10 million turn-over to
US $30 million when he left it in 1955. In 1960, he had acquired two ships half a dozen research
laboratories in the U.S. and houses spread over Europe and America, including one at the picturesque
town of Marni, 100 km from Rome. His laboratories sold processes for liquid laser for treating ordinary
paper – curiously – with aspirin, and for devising a sort of soluble progesterone hormone that broke
new path in oral contraception.
Jayanti Shipping Corporation began in 1961with Morarji Desai as a senior member of the Cabinet,
launching the corporation’s first vessel. He was the first man to introduce Deferred Payment System in
acquiring new ships. Without his shipping tonnage, Govt. of India would not have achieved the target
of 5 million ton capacity in the 3rd five year plan. His last ship Vikram Jayanti was uniquely acquired
in a novel way. He placed the order on M/s. Mitsibushi without paying any advance. He then floated
38 | Andhra Entrepreneurs
an advertisement stating that his bulk carrier ship will be ready for charter hiring in six month’s time
from the date. He then entered in to a charter agreement with M/s. Esso Standard Vacuum Co. And
pledged the charter agreement with M/s. Barclays Bank and paid the 10% advance. This was one of
the contentions of Govt. of India. He also bid to build the present Srisailam Project with collaborators
from U.S.A. and France at Rs. 45 crores in 7 Years.
The country went hysterical in acknowledging and applauding his ‘spectacular’ achievements.
Then came his fall which was a little slower than his rise. By 1965, his company was caught in a web
of unpaid bills and unpaid bank loans, personally accused of all manner of financial skullduggery he
became a fugitive from Indian law, taking shelter in Costa Rica.
Tall, suave, researcher, financial wizard, houses in several countries, partying with Prime Ministers
and Presidents, Teja stands out as unique personality among the Andhra Entrepreneurs.
Infra Entrepreneurs
In India, Andhra Pradesh-based firms span irrigation projects, roads, airports and power, having outbid
established players and outpaced them in growth. In fact, India’s four best airports—Hyderabad,
Bangalore, Mumbai and Delhi—are all managed by AP entrepreneurs. Most of these entrepreneurs
come from agricultural backgrounds and are rooted in contract engineering. They are familiar with
taking up their own work for agriculture requirements be it local bore well or a canal. The state’s
business story started with the birth of Andhra Pradesh and the building of the Nagarjunasagar dam,
one of India’s earliest infrastructure projects, and possibly the largest masonry dam in the world. The
dam was started in 1955 and took 12 years or so to complete. Most of the present-day infrastructure
entrepreneurs in the country cut their teeth here.
Second Generation Andhra Entrepreneurs | 39
Gunupati Venkata Krishna Reddy, also referred to as Dr. GVK Reddy was born on 22 March 1937
in Kothur village of Nellore district, Andhra Pradesh. He did his basic schooling from Kothur,
early college from Nellore and graduated from Hyderabad. He later pursued Owner/President
Management (OPM) Program from Harvard Business School, USA. Reddy entered into the business
starting with the construction of Nagarjuna Sagar Right Canal. After completion of Dam work, he
continued to work on construction project like Srisailam Dam project and diversified into other
businesses. Reddy acquired majority shareholding in Hotel Banjara, a four star hotel and became the
managing director and completed the project by 1976–77. Collaboration with Holiday Inn marked
his entry into the hospitality business. He also incorporated Novopan India Limited, being the first
company in India to bring the Pre-laminated Particle Board Technology to manufacture Plain and
Melamine Faced Particle Boards. GVK set up India’s first Independent Power Project (IPP) in the
private sector at Jegurupadu, Andhra Pradesh to generate 217 MW power. Also executed India’s
first six-lane expressway connecting Jaipur to Kishangarh in the state of Rajasthan. With airport
terminals at Mumbai’s Chhatrapati Shivaji International Airport and Kempegowda International
Airport, Bengaluru he became popular with the media. He went global with coal mines from Hancock
Prospecting Ltd. in Queensland, Australia.
Mr. A. Ayodhya Rami Reddy Chairman, Ramky Group holds a Masters in Civil Engineering from
Osmania University with more than 24 years of experience in the environmental engineering, civil and
40 | Andhra Entrepreneurs
infrastructure works, bio-medical waste and hazardous waste management. He has held senior positions
at Gannon Dunkerley and Reliance Industries Ltd. The Company was originally incorporated as
Ramky Engineers Private Limited on April 13, 1994 to undertake construction projects. In 1998, the
Company diversified into construction and began to undertake civil and environmental EPC projects.
The early construction projects were concentrated in the water and waste water sector. Subsequently,
the Company expanded into roads, buildings, irrigation and industrial construction.
He is referred as Garbage King. In the article about him Business World narrates Ramky Enviro
Engineers (REEL). Ramky’s business model is simple. It collects money from municipality bodies
and private companies for the collection, handling, transport and disposal of waste. In Bangalore,
Delhi and Guwahati, the city municipal corporations have outsourced the collection and disposal of
municipal solid waste to Ramky’s. From pharma companies such as Dr. Reddy’s and Tata Chemicals
to hospitals such as Apollo and Fortis, all have outsourced their waste management to REEL, saving
themselves a big headache and helping Ramky fill its coffers.
L. Rajagopal LANCO
LANCO foundation was laid when in In 1960, brothers Amarappa Naidu, Venkata Rama Naidu
and Venkata Ratnam Naidu laid the foundation by starting a transport business with one truck
(a converted bus) inherited from their father L.V. Subba Naidu. Amarappa Naidu’s business acumen
and the brothers’ commitment soon led to orders pouring in from construction companies that
needed material to be transported to and from construction sites. By 1976, the thriving business
boasted of a fleet of 100 trucks that serviced the construction industry in Andhra Pradesh. In
1985, L.V. Rama Naidu’s son, L. Rajagopal, a mechanical engineer, was inducted into the company.
L. Rajagopal diversified from construction business to manufacturing by setting up a pig iron plant
of 90,000 tpa. LANCO entered the power sector against a power purchase agreement with the
state government with a 368 MW gas power plant in Kondapalli, commissioned in 2000. Lanco
Infratech also received 40% of the contracts for first phase of the National Solar Mission, garnering
235 mw worth projects.
Second Generation Andhra Entrepreneurs | 41
Alluri Venkata Sathyanarayana Raju, familiarly known as AVS Raju works in the Indian construction
industry and is the founder chairman of Nagarjuna Construction Company Ltd. AVS Raju was born on
18 April 1937 and hails from a family that has been in the construction for over three generations. He
left his village Antervedipalem in East Godavari District, Andhra Pradesh, India, after matriculation
at the age of 18 years to make his career in Hyderabad and started contributing his share in developing
the state in the areas of Industry, Infrastructure, Agriculture and Power. He was one of the promoters
of M/s. Nagarjuna Steels Ltd., during 1975–76, the first company of the present popular Nagarjuna
group of Companies in Hyderabad and Deccan Cements Ltd., during 1983–84 a successfully and the
first mini-cement plant in the country.
Subbarami Reddy was born on 17 September 1943. He completed his education from Nizam College
in Hyderabad as a B.Com graduate. He was born to T. Babu Reddy and Rukmini Amma at Nellore,
Andhra Pradesh. He received a Gold Medal by the then Prime Minister of India, Indira Gandhi, for
his great contribution in the construction of the then world’s biggest dam Nagarjuna Sagar Project
in Andhra Pradesh in 1967. Reddy was the mud contractor for this dam. Subbirami Reddy founded
the Gayatri Projects India Pvt. Ltd. The Gayatri Group consists of four companies namely, Thermal
Powertech Corporation India Ltd., Gayatri sugars, Gayatri Bio Organics and Park Hyatt, Hyderabad.
The Gayatri holdings has been the field of business for the last 35 years involved in the construction
activity, sugar industry, chemical industry, State’s development.
42 | Andhra Entrepreneurs
GMR belongs to coastal Andhra’s traditional merchant moneylender caste, Komati born into a family
of gold merchants. Grandhi Mallikarjuna Rao was a mechanical engineer, worked for a brief period in
government, acquired a failing jute mill at a bargain, this venture proved to be lucrative and allowed
GM Rao to use leverage from local banks to acquire other assets. Eventually GM Rao divested his
stake in a multitude of industries and started a bank named Vysya Bank in collaboration with ING.
Rao eventually diluted his stake in ING Vysya by selling his stake in whole for 340 crores. The cash
from the bank stake sale allowed his entry into the power business allowed Rao to build what would
become India leading infrastructure asset developer. He won the bid for the Hyderabad airport and
did not look back. Started in 1978, GMR Group is now present in 7 countries, active in energy,
highways, large urban development and airports sectors, known for building and operating world class
national assets.
Southern Engineering Works was promoted by Vallurupalli Nageswara Rao, Y. Purnachandra Rao
and Y.M.G. Nageswara Rao with initial work at Nagarjuna Sagar Dam. Later they constructed
dams Madhya Pradesh and Andhra Pradesh. Some of the dam projects completed by this builder are
Second Generation Andhra Entrepreneurs | 43
Bansagar, Hasdeo, Tawa, Bargi, and Bango in Madhya Pradesh & Srisailam and Priyadarshini Jurala
in Andhra Pradesh.
Andhrapreneur
The 1980s saw the emergence of the Andhra entrepreneur (or ‘Andhrapreneur’). The rise of N.T. Rama
Rao, the charismatic film star and the Telugu Desam, brought a flood of investors into Hyderabad. A
new breed of entrepreneurs such as K.V.K. Raju, an NRI who established the Nagarjuna Group, and
many others moved from the agriculture-rich coastal Andhra to Hyderabad—buying land and setting
up industries in several sectors.
KVK Raju (born 28 November 1928), whose surname is Kanumuri, was a first generation technopreneur
born in a humble agricultural family in Andhra Pradesh. He was the founder of the Nagarjuna
Group of companies. He was born in a small village at Ai Bhimavaram in West Godavari District,
Andhra Pradesh. KVK Raju had his elementary education in a local school during 1933–38. he passed
Secondary School Leaving Certificate Course from Sri Rama Krishna Mission School, Tanuku in
1945. He was the first batch of Intermediate in 1945–46 at West Godavari Bhimavaram (WGB)
College, subsequently renamed D.N.R College. During 1947–49, KVK Raju studied B.Sc course
in Banaras Hindu University at Varanasi and later he joined the Madras Institute of Technology
at Choromepet, Madras and did Automobile Engineering. He went on to complete his Master’s
in Mechanical and Industrial Engineering from Michigan State University and the University of
Minnesota, USA. After a short stint in American he returned to India and joined Union Carbide of
India. He started the Nagarjuna Steels Limited in 1973. NFCL (National Fertilizer corporation of
India) and GFCL (Godavari Fertilizer Corporation of India), were initiated and very rapidly went
online during is first and second terms of NTR respectively.
44 | Andhra Entrepreneurs
Many eminent persons founded successful companies and one person gave birth to a cluster of
industries. Dr. Kallam Anji Reddy (1 February 1939 – 15 March 2013) was a legendary Indian
entrepreneur in the pharmaceutical industry, the founder-chairman of Dr. Reddy’s Laboratories,
which he established in 1984. After graduating from Annapotanna Bold High School, Reddy received
his first Bachelor of Science degree from A.C. College at Guntur in 1958.[5] He then earned his
B.Sc. (Tech) in Pharmaceuticals and Fine chemicals from the University Department of Chemical
Technology of University of Mumbai (now Institute of Chemical Technology, Mumbai), followed by
a Ph.D in chemical engineering from the National Chemical Laboratory, Pune in 1969. Along with
YK Hamied and Bhai Mohan Singh, Dr. Reddy defined and built the Indian pharmaceutical industry.
Born the son of a turmeric farmer, the scientist-entrepreneur went on to become the elder statesman
of the pharma industry. After obtaining a Ph.D in chemical engineering from the Pune-based National
Chemical Laboratory, Anji Reddy worked in state-run Indian Drugs and Pharmaceuticals Ltd from
1969 to 1975 before turning entrepreneur. The company started with methyldopa, a hypertension
drug, in 1985. Its success was followed by an initial public offering in 1986 that raised Rs. 2.46 crore.
A key breakthrough came in 1987, when Dr. Reddy’s received approval from the U.S. food and drug
administration to make the painkiller ibuprofen, opening up that country’s market. Venturing into
drug research in 1993 the company discovered and licensed an anti-diabetes drug to the world leader
in diabetes therapies, Novo Nordisk A/S. In April 2011, Dr. Reddy’s be came the first Asia-Pacific
pharma firm outside Japan to list on the New York Stock Exchange.
India had become the world’s largest exporter of generic drugs, with $16.4 billion sold abroad in
2016. In the first half of 2017, Indian firms got about 40 percent of new U.S. approvals for generics,
up from 35 percent just a year earlier.
(IDPL) and the second is the Regional Research Laboratory (now Indian Institute of Chemical
Technology). These two organizations have given rise to leading entrepreneurs like late Dr. Anji
Reddy and many others from the state. While IDPL provided the environment for spawning drug
firms in Hyderabad, the credit for turning the state into a breeding ground for entrepreneurs should
go to Standard Organics Ltd. It was one of the first private sector companies to venture into making
APIs for multinationals. From here emerged Kallam Anji Reddy, founder and builder of global brand
Dr. Reddy’s Laboratories. In fact, Standard Organics in the early 1980s and Dr. Reddy’s in the early
1990s became the springboards for more than two dozen entrepreneurs, who built up companies of
significant size. They manufacture APIs and generic drugs, have U.S. Food and Drug Administration
approved facilities, and have a global presence in regulated markets as well as developing ones.
Aurobindo Pharma was promoted by P.V. Ramprasad Reddy in 1986. HERREN DRUGS &
PHARMACEUTICALS LIMITED is the flagship company of the Herren Group, founded by
Mr. Sarat Gopal. Besides Herren Drugs a Pharmaceuticals Ltd., Sarat Gopal also successfully
promoted four other Bulk Drug and Intermediate manufacturing units, M/s. Dolphin Drugs
(P) Ltd., United Intermediaries & Chemicals (P) Limited, Dymes Engineers (P) Limited and
M/s. Dymes Exports Ltd. Later this became Matrix laboratories under Nimmagadda Prasad and
sold to Mylan. Divi’s lab the world’s largest manufacturer of Naproxen, an anti-inflammatory that is
a part of medicines used to treat osteoarthritis was founded by Murali Krishna Divi, He started his
entrepreneurial journey in 1984 on return to India after working in senior research and development
roles in American firms such as Fike Chemical. He had spent several years in the U.S. after receiving
his doctorate in pharmaceutical sciences from erstwhile Andhra’s Kakatiya University. He joined as
a director on the board of the newly formed Dr. Reddy’s Laboratories in 1984. Together, Reddy and
Murali Divi took over Cheminor, an ailing contract manufacturing company. Rajeev Nannapaneni
Chief Executive Officer of Natco Pharma Ltd. worked in Merill Lynch and Natco Systems LL.C in
USA. The senior Nannapaneni, who worked in the U.S. for 13 years before returning to India to set
up Natco in 1981 was a chemist by training. Rajeev Nannapaneni became Big Pharma’s newest bête
noire with fight against Bayer. Dr. Davuluri Rama Mohan Rao, Promoted Neuland. He had a Masters
in Science from Andhra University, Post Graduate Diploma in Technology from IIT Kharagpur and
a Ph.D in Organic Chemistry from the University of Notre Dame, U.S.A. Prior to founding Neuland
in 1984, he had held senior positions in R&D, production and quality assurance at Glaxo India for
about ten years and was Director, R&D and QA at another Pharmaceutical company. PVN Raju
founded Gland Chemicals in 1974 and Gland Pharma in 1978. He was a Graduate in Chemistry
from the Presidency College of Madras and a Post Graduate from the Indian Institute of Chemists.
Starting his career as a chemist, he received training at Evans Medical in the UK and Pharmacia in
Sweden. He pioneered Heparin technology in India in 1960, and set up the country’s first state-of-
the-art Pre-Filled Syringe (PFS) facility for LMWHs in 1998. Mr. Venkat Jasti is a Post Graduate
in Pharmacy from Andhra University, Visakhapatnam, and also a Post Graduate in Pharmacy from
46 | Andhra Entrepreneurs
St. John University, New York, specializing in Industrial Pharmacy. Having registered himself as a
Registered Pharmacist, he successfully owned and operated a chain of community pharmacies in the
state of NY and NJ from 1977 till 1989. He was the president elect of Essex County Pharmaceutical
Society of NJ in 1988. He returned from USA to India in 1989 and promoted Suven in 1989.
Dr. K.I Varaprasad Reddy was born in an agriculture family in Nellore district, did his Engineering
(Electronics & Communication) from Andhra University in 1970. Reddy established Shantha
Biotechnics Ltd. in 1993 made the country’s first indigenously developed recombinant hepatitis
B vaccine. Shantha Biotechnics grew out of ‘incubation’ with the Centre for Cellular and Molecular
Biology (CCMB), Hyderabad. Mr. Varaprasad Reddy and his small unit were helped by the CCMB
scientists in the development, testing and evaluation of the rDNA vaccine. The product was launched
in the market under the brand name ‘Shanvac.’ The vaccine, Shanvac-B, was launched in the country
in 1997. It gave such giants as SmithKline Beecham a run for their money by slashing the price of the
hepatitis vaccine Shantha Biotechnics’ successful development of recombinant products heralded the
bio-pharma revolution in India which motivated many scientists and entrepreneurs to develop and
produce life-saving drugs indigenously.
Ella was born to a Telugu agricultural family in Tamil Nadu. Ella holds M.S. from the University
of Hawaii and Ph.D from College of Agricultural Sciences, Department of Plant Pathology at
Second Generation Andhra Entrepreneurs | 47
University of Wisconsin, Madison, U.S.A. Later, Ella held the position of assistant professor, at
Medical University of South Carolina, Charleston. A research scientist in Molecular Biology,
Dr. Ella strongly believes that innovative technology in vaccine development is essential to solve
public healthcare problems caused by infectious diseases. Under Dr. Ella’s leadership, Bharat Biotech
has grown to become a global leader in innovative vaccine. A serial entrepreneur with a passion for
innovative ideas, Dr. Ella has also ventured into veterinary vaccines, food processing, and developing
biotechnology infrastructure in the country. Ella’s company also partnered with Indian government
to make the first-ever Indian-made vaccine called ‘Rotavac,’ a vaccine against an infectious diarrhea
disease caused by Rota virus that afflicts children.
Scientist Entrepreneurs
Alla Venkata Rama Rao (Dr. AV Rama Rao), Founder of AVRA Labs
Rama Rao was born and brought up in Guntur and did graduation (Chemistry) in 1956 from A.C.
College. After working for two years as demonstrator and technical assistant in A.C. College and
Agricultural College, Bapatla, respectively, he joined Bombay University Department of Chemical
Technology (BUDCT) in 1958 for graduation in Chemical Technology with specialization in
pharmaceuticals and fine chemicals. I continued my career as a Ph.D. student at National Chemical
Laboratory (NCL) under the guidance of Prof. K. Venkataraman, the then Director of NCL and
obtained my degree, Ph.D (Tech.). Rama Rao is the only Fellow of the Indian National Science
Academy (FNA) who has trained 112 Ph.D. students, published more than 250 papers in reputed
international scientific journals, developed over 30 process technologies for making life saving drugs
more affordable and finally after retiring as Director of Indian Institute of Chemical Technology, built
a multi-million dollar pharmaceutical company (Avra Laboratories). In India AVRA Labs was the
first to demonstrate capabilities in innovative contract research.
48 | Andhra Entrepreneurs
Dr. Vasireddi is the Executive Chairman and founder of VIMTA LABS. He founded the company
in 1984 and is considered the father of CRO industry in India. He has extensive experience in food
and pharma contract research and testing industry. He holds a Ph.D., in Inorganic Chemistry from
Nagpur University. First laboratory in Asia to be pre-qualified by WHO for Medicines Programme
Inspection of Quality Control Laboratory. VIMTA is the No. 1 choice in India and a specialist
in analytical services, supporting the pharmaceutical, biopharmaceutical and animal health industry.
VIMITAs analytical services support the entire life cycle from early phase drug development, to
regulatory submissions and GMP manufacturing, to post marketing analytical testing requirements.
Dr. Kuchimanchi Venkata Satya Sarveswara Sairam (Dr. KVSS SAIRAM – Dr. RAM) from
Amalapuram with Ph. D in Agriculture Sciences from Oxford Academic Council, Oxford, UK.
Started Prathista Industries in 1995 to produce Organic Plant Nutrients. Prathista Industries Ltd.
operates an industrial fermentation facility that deals with various microbes/fungus for the production
of eco-friendly bio-technology products. It offers bulk drugs, food preservatives and additives, organic
agricultural inputs, bio-fertilizers, bio-pesticides and bio-control agents, botanical crop protectors,
cattle/poultry feed supplements, and other value added products based on carbohydrates. The company
also provides agricultural products, including crop nutrition, crop protection, and bentonite sulphur
products; animal health care products, such as animal nutrition, multizyme, by pass fat, pharmaceutical,
MPCM, and RBAN products; neutraceuticals, including green nutrition/propionic acids and salts,
Second Generation Andhra Entrepreneurs | 49
neutraceutical and natural colorants, proteinates, and other products; and CMC products. It markets
its products to various markets, including pharmaceutical and food, animal health care and agro bio-
technology, organic solvents and bio fuel, etc.
M Prabhakara Rao graduated from Banaras Hindu University, where he ranked second in the
University in B.Sc (Agriculture) and first in M.Sc (Agriculture). His fight against Monsanto hit the
headlines. Monsanto had, until very recently, 49 sub-licensee partners, NSL being the largest of the lot
and the toughest to deal with. Rao has also questioned the manner in which IPRs in seed technology
are rewarded in India, and strongly opposes Monsanto’s view that it should be governed under the
patent law. Rao believes intellectual property protection for seeds should be within the domain of the
Protection of Plant Varieties and Farmers Rights Act (PPVFRA). The differences, therefore, find its
roots in patents and patentability, and are not merely about a breach of trust or non-payment issues
between two companies.
Bhaskar Chalasani has passion for green and game changing new technologies and has incubated
and pioneered the setting up of first integrated industrial scale biodiesel facility in India in 2007.
He has bachelor’s degree in engineering and graduate degree in business administration from
50 | Andhra Entrepreneurs
Wayne State University. He worked with advanced engineering group at Ford Motor Company in
USA and subsequently joined family paper manufacturing business in India. Naturol BioEnergy,
India was first fully integrated bio-diesel plant that can make 300 tonnes fuel daily using a wide range
of feedstocks, from crude palm (CPO) and rapeseed oil, to jatropha oil and fatty acids. It also offers
glycerin, edible oils, fatty alcohols, and phyto chemicals.
Electronics Hub
Hyderabad was once a hub of electronic manufacturers with ECIL, HAL, DRDO labs and many
private entrepreneurs.
Narne Prabhakar’s passion for Technology and his pioneering contributions to the Indian Weighing
Industry are legendary. Born in 1934 into a well to do farming family from in Prakasam District and
his father Narne Veeraswamy Naidu was IAS official in Madras province. Received his Bachelor’s
Degree in Mechanical Engineering (ME) Department from University of Mysore, Karnataka. He
had set up a Green field, Steel Forging Unit with capacity of 9000 tons per annum for M/s. Republic
Forge Co. Ltd under collaboration with Renault Seri-Engineering of France. Founded Narne
Tulaman Manufacturers Private Limited (Presently known as Hyderabad Tulaman Private Limited)
to manufacture, Indicating Type of Weighing machines with Technical Collaboration from the World
Renowned French Company, M/s. Charles Testut, Paris. Later developed other Mechanical Scales
indigenously. Entered into a technology pact with M/s. National Aeronautics Laboratories, Bangalore
and successfully developed the FIRST ELECTRONIC WEIGH BRIDGE ingeniously.
In 1978, the company in association with M/s. Rank Industrial Controls, U.K., designed,
manufactured a Computer Supervised Automation System for the new 7th Blast Furnace at Bhilai
steel plant which has achieved many firsts in the productivity of Blast Furnaces in India. e.g. five
2000 cubic meter Blast Furnaces at Bokaro steel plant produce only 1950 tons of molten iron per day,
Second Generation Andhra Entrepreneurs | 51
whereas, the same 2000 cubic meter 7th Blast Furnace at Bhilai achieved a production of 3000 tons of
molten iron per day with better chemical composition and lesser coke consumption (449 kilos of coke
per ton of iron produced).
Dr. Maganti Venkata Ramana Rao holds a Bachelor of Engineering (Electrical and Electronics
Engineering) from Andhra University College of Engineering, Master of Engineering (Applied
Electronics) from PSG College of Technology & Ph.D (Electronics & Communication Engineering)
from Jawaharlal Nehru Technological University. Prior to promotion of MIC Electronics Limited,
he worked about 2 years as lecturer in VRS Engineering College & KL College of Engineering, in
A.P and teaching subjects in Micro Computers and guided more than 10 projects in the field of
embedded Micro controllers. The small pixel LED displays from MIC Electronics are used in high-
end applications such as 3D Holographic display and all control room applications including Smart
City Control Rooms. In addition to producing high-end LED display products, MIC Electronics
produces centrally controlled LED lighting solutions.
Founded in 1973, Vijai Electricals has become a pioneer in the manufacturing of electricity
distribution transformers. The company has expanded its T&D business in 2006, when it entered
the power transformer and switchgear businesses. It manufactured and supplied the ultra-high
52 | Andhra Entrepreneurs
voltage 1200 kV power transformer. Japanese electronics giant Toshiba Corporation acquired
majority stake the electricity transmission and distribution (T&D) business of the Vijai Electricals
owned by Dasari Jai Ramesh for about $200 million. He was the first entrepreneur to manufacture
Single Phase Transformers in India. He was also the first person to manufacture Metal clad
transformers which reduces the power losses and has greater efficiency.
Batteries
Aluru Jagadish Prasad, Founder of HBL Power Systems Limited
Dr. Prasad graduate in engineering from IIT Kharagpur and has a Master Degree in Management
from the Massachusetts Institute of Technology and a Doctorate from Columbia University in
International Business. Started Hyderabad Batteries Ltd (HBL) in 1977 and Sab Nife Power
Systems in 1988 a Joint Venture with Nife, Sweden. HBL Power Systems Limited is engaged in the
business of manufacturing batteries. The Company’s segments include Batteries and Electronics.
The Batteries and Electronics segment consists of various types of products for defense, aviation,
telecom and industrial application. Its products include batteries, including Lead Acid Batteries,
Nickel-Cadmium Batteries and Specialized Defense Batteries; Power Electronics, which includes
Thyristor Battery Charger, Switch Mode Rectifiers, Battery Monitoring System and Earth Leakage
Monitor; Concrete Products, including Spun Concrete Poles, Spun Concrete Poles, Spun Concrete
Poles and Hollow Core Slabs; Renewable energy, which includes Off-grid Solar Systems and
HBL Green Products Division, and Engineering Solutions, which includes Training Simulators
and Railways, including Data Loggers, Audio Frequency Track Circuit, Electronic Interlocking
System, Train Collision Avoidance System, Train Management System, SPAD Alert System and
Rail System Unit.
Second Generation Andhra Entrepreneurs | 53
Galla was born in 1938, in Chitoor District, did his bachelors in Electrical Engineering at JNTU
ANANTAPUR, then took a master’s degree from the College of Engineering Roorkee, and a second
master’s degree at Michigan State University. After leaving Michigan, he worked as an Electrical
Engineer for Sargent & Lundy a consulting engineers firm engaged in the design of Fossil and
nuclear Power projects. He returned to India in the 1980s, when he founded Amara Raja Batteries in
Chittoor; the group spun off a number of subsidiaries, including Galla Foods and Mangal Precision
Products.
Mr. Reddy received a bachelor’s degree in electronics and communications engineering from Mysore
University. He worked at Yamuna Digital Electronics Pvt. Ltd., and Electronics Corporation of India
Limited. He along with PS Babu collegue from ECIL promoted Medha servo drives in 1984 to design
and manufacture high-tech electronics products for application on locomotives, coaches, railway
stations and yards. Medha’s Electronic Interlocking system has successfully been commissioned in
200 stations in Indian Railways and are in working continuously.
54 | Andhra Entrepreneurs
Ashok Atluri is a graduate in Commerce from Osmania University and a PG Diploma holder in
Applied Computer Science from CMC. He is a first generation Entrepreneur who along with his
partners stared Zen Technologies, which was one of the a pioneers in the field of Simulation in India.
He was instrumental in helping to design the simulators so that they would be simple to use, and
ensured that the products would be based on industry standards, by developing the software on the
Windows-Intel platforms.
Dr. Vidyasagar did his B.Tech from JNTU, Kakinada, Andhra Pradesh in the years 1977 to 1981
and did his Master of Engineering from NT, Kharagpur from 1981 to 1983. He also did Master of
Business Administration from Osmania University, Hyderabad in 1991. Dr. Vidyasagar started his
career as a Design Engineer in Hindustan Aeronautics Limited, Hyderabad and latter on worked
as General Manager for two reputed organizations. He is also Founder at Wiki Kids Ltd. Avantel
initially started making RF subsystems for Defence labs, ISRO and companies abroad, gradually
shifted to design, development and manufacture of analogue and digital Radios, DSL equipment
to Department of Telecommunications. They now undertake entire spectrum of activities ranging
from design, development, manufacture, installation & commissioning, system integration, testing &
evaluation of defence electronics, satellite communications & software systems.
Second Generation Andhra Entrepreneurs | 55
ELICO Ltd is a leading Analytical Instruments Design & Manufacturing Company established
in 1960 headquartered in Hyderabad, Andhra Pradesh. It is the first Analytical Instrumentation
Company in India and the first Electronics Industry in the State of Andhra Pradesh. Elico has
developed several technologies in the areas of Spectrophotometry, Chromatography, Electrochemistry,
Flame Photometry Instrumentation. He is the first entrepreneur to establish an Electronic Industry
in Andhra Pradesh. He headed his research team, designed and made many instruments for various
applications.
Subba Rao Pavuluri was a hardened space entrepreneur with a Master’s in Engineering from IISc,
Bangalore and holds a Ph.D from Bangalore University. He was a pioneer in the GIS space, worked for
a decade in Indian Space program. Ananth, founded in 1992 specialize in the design and development
of highly sophisticated aerospace subsystems and other embedded systems. Ananth Technologies
participated closely in the moon and mars missions of ISRO by building satellite components.
Pavuluri took the first steps towards becoming an international satellite operator, by signing a
300 million USD deal with Russian company Reshetnev Information Satellite Systems (ISS
Reshetnev). In 2011, Pavuluri set up one more firm, AOneSat Communications AG, as a joint venture
with the Swiss group INDEN.
56 | Andhra Entrepreneurs
JA Chowdary has an M.Tech in Solid State Electronics from IIT Chennai and an M.Sc degree
from SK University. JA started his career at ISRO as a scientist where he was involved in designing
telemetry test equipment and telemetry sub systems for Bhaskara, Rohini, and Aryabhatta. He then
worked at BHEL, where he was instrumental in developing mechanisms that facilitate monitoring
of pollution levels online and process control instruments for BHEL power stations… In his capacity
as the founding Director of STPI at Bangalore, Hyderabad and Chennai, Mr. Chowdary played an
important role in developing the IT industry in the states of Karnataka, Andhra Pradesh and Tamil
Nadu in the 1990s. He was one of the key architects of the Hi-Tech City; Cyberabad in Hyderabad,
and also played a major role in founding the IIIT at Hyderabad. As a member of the IT Task Force
set up by the then Chief Minister of A.P for implementing IT for the government, Mr. Chowdary
ensured a healthy growth of the industry in Andhra Pradesh. On the corporate side, Mr. Chowdary
was one of the co-founders of PortalPlayer, and pioneered the development of the chip that went into
the very first generation of Apple iPod. The iPod story took PortalPlayer to a successful IPO and
subsequent acquisition by the Visual Computing giant NVIDIA.
Engineering
Kamineni Suryanarayana, Oil Country Tubular Limited (OCTL)
trained in Kaiser Steel Works, Fontana, California, USA, in 1960–61 in the technology of Steel
manufacture. After his return from USA, he worked in the Plate Mill of Rourkela Steel Plant as
Production Engineer till 1966. During that period, he was associated with the Heat treatment and
Processing of various specialty steels. In his quest for an entrepreneurial career, he quit Rourkela
Steel Plant in 1966 and established an independent firm, United Steel Allied Industries in 1966
which later was converted to United Steel Allied Industries Pvt. Ltd. (USAIPL), for fabrication
and erection of Heavy Structural Engineering Projects for Power Plants, Steel Plants, and
Technological Pipe Lines for Steel Plants. Mr. Kamineni Suryanarayana promoted Oil Country
Tubular Limited (OCTL) in Technical collaboration with Baker Tubular Services/Baker Hughes
Tubular Services, Houston, USA, in 1986. Oil Country Tubular Limited (OCTL), is a processor
of a wide range of Oil Country Tubular Goods and Drilling Products required for the Oil Drilling
and Exploration Industry. OCTL’s wide product range covers Drill Pipe, Heavy Weight Drill Pipe,
Drill Collars, Kellys, Production Tubing, Casing, Tool Joints, Couplings, Pup Joints, Nipples, Subs,
and Cross Overs. OCTL’s Oil Field Accessories include Rotary Subs, Lift Plugs and Lift Subs,
Cross Overs (Drill Pipe to Drill Collar or Drill Collar to Drill Collar), Stabilizer Sleeves, Welded
Blade Stabilizers & Integral Stabilizers and Cast Steel Lifting Bails. Services include Tool Joint
Hardbanding, Make and Break of Tool Joints, Internal Plastic Coating of Drill Pipe and Tubing,
Reconditioning of Drill Pipe, Re-threading of Drill Pipe, Tubing and Casing, and Field Inspection
of Tubulars.
Dr. D. Subba Rao, Sri P. Punnaiah and Sri A.S. Chowdhri in 1972 promoted Nava Bharat Ferro
Alloys Limited (NBFA) with the manufacture of ferro silicon at Paloncha. Devineni subbarao had
a doctorate in metallurgy. NBFA ventured into the production of sugar and other by–products
like rectified spirit and extra neutral alcohol. The Deccan Sugar & Abkhari Company, Ltd., was
amalgamated with the Company with effect from 10th December. Consequently, DSA became
the sugar division of the Company. The domestic business divisions of the company includes:
58 | Andhra Entrepreneurs
Ferro Alloy, power, sugar, infrastructure. The International business divisions of the company
include: Power, Mining, Coal, Ferro Alloy, and Mineral Ore.
Chandra Sekhar Movva is a Promoter and serves as Managing Director of Synergies Castings
Limited. His work experience at Engineering Mechanics Research Corporation (EMRC), Detroit,
Zexel Corporation, Tokyo and Ford Motor Company, Michigan includes over 8 years in the
automotive industry in Detroit and Tokyo in design, engineering, marketing, project procurement,
implementation and general management. He was the founder promoter director of the erstwhile
Synergies-Dooray Automotive Limited. He is a post graduate in Mechanical Design/Automotive
Engineering from Michigan State University and an MBA from Kellogg Graduate School of
Management, Northwestern University, USA.
Mullapudi Lokeswara Rao is the promoter of Lokesh Machines Ltd, with more than 46 years of vast
experience in the machine tool industry. He has started his career with KCP Limited in 1965 and after
a brief stint joined Hindustan Machine Tools Limited (HMT) in 1966. while working at HMT for
almost a decade, Mr. Rao has obtained a methodical understanding and insight of the manufacturing
industry. the manufacturing insights supplemented with the entrepreneurial abilities prompted
Second Generation Andhra Entrepreneurs | 59
Mr. Rao to start Lokesh Machines Limited. Today Lokesh exports CNC machines to Japan,
Germany, Netherlands, Italy, Turkey, China and Middle East countries. The firm is s a leader in Cam
& Crank borers, Fine borers & Finish Milling machines.
Yalamanchili Satyanarayana Chowdary was an entrepreneur and headed the Sujana Group of
Industries before retiring from business to join politics. He graduated with a bachelor’s degree
in Mechanical Engineering from the Chaitanya Bharathi Institute of Technology (CBIT) in
Hyderabad in 1984. He completed his master’s degree in Machine Tool Engineering from
the PSG College of Technology in Coimbatore, Tamil Nadu. In 1986, he founded the Sujana
Group of Companies. Sujana started as domestic appliance company in 1986. Sujana Universal
Industries Limited manufactures a range of home appliances that include fans, steam irons, geysers,
roti-makers, water heaters, mixies and ventilation fans. Sujana Group’s industry foot print includes
Steel, Home Appliances, Telecom & Power Infra, Light Engineering, and Infrastructure.
Goda Venkata Narasimha Murty, did not let circumstances and adversities determine what he would
do. Born in 1926 in Kakavakam village close to present Chennai city, to Suryanarayana and Meenakshi,
60 | Andhra Entrepreneurs
he went through deprivation and even struggled to complete his education. Schooling he finished in
flying colours on the basis of which he got admission into the prestigious Madras Christian College
in B.Sc Physics with a scholarship to support his continuing education. After completing B.Sc, he
enrolled in Madras Institute of Technology for Automobile Engineering where he was again favoured
with a scholarship. On completion, he went to Ceylon for a year to work in a college. He returned to
India, joined Lumas and later worked at Bhilai Steel Plant and Rourkela Steel Plant.
He promoted Ardee Enterprisers, partnered with a Belgian company in 1976 to market their
products in India later established manufacturing facilities for manufacture of temperature probes,
oxy probes, lollipop samplers, compensation cables and so forth. In the late 1980s, with a tie-up
with a German introduced dual gamma ray ash analyser technology. Based on the need to detect
and remove discrete pieces of contaminants in coal streams such as stone and shale Ardee developed
patented RAMDARS where gamma ray and laser technology was used to detect high contaminant
particles in coal streams. At a critical stage of this development, he passed away in February 2000.
This technology was further developed into ArdeeSort which is being positioned as the primary dry
beneficiation technology for minerals like coal, iron ore and manganese.
Consumer Products
Challa Rajendra Prasad, Continental Coffee Limited (CCL)
In the early 1990s, P Brahmanandam, who was a civil constructions contractor in Visakhapatnam,
received an offer from a friend who owned fishing trawlers. Given the surplus cash he had from his
business, would Brahmanandam be interested in investing in the lucrative marine export industry?
He said he would. After pooling in their own money, and taking a ₹25-lakh loan from Union Bank of
India, the two friends started Devi Sea Foods (DSF) out of a leased facility in 1992, with the intention
of buying shrimps from local farmers and selling them in the international market. By 1997, DSF had
established itself in the Japanese market, with clients such as Mitsubishi Corporation and Hitachi
Corporation.
Krishna Prasad Tripuraneni has a Bachelors degree in Engineering from Andhra University and MS
in Electrical Engineering from the Illinois Institute of Technology, USA. Spartek Ceramics India was
promoted by Krishna Prasad Tripuranani in association with several non–resident Indians. The main
objective of the company is to manufacture glazed and unglazed wall and floor tiles. The company
entered into a financial and technical collaboration with Ceramic U.S., U.S. Ceramic Tile Co Inc,
Ohio, USA for the manufacture of ceramic wall and floor tiles. The technology being used for the first
time in India replaced the traditional double firing system by single firing process.
62 | Andhra Entrepreneurs
In 1983, GK Naidu promoted Regency Ceramics Ltd, now the country’s largest tile manufacturer
with a capacity of 55,000 sq.mtrs/day from its state of the art production facilities in the Union
Territory of Pondicherry, using Single fast firing technology in collaboration with Welko, Sacmi and
SITI, Industriale of Italy,
Velamati Chandrasekhara Janardan Rao promoted Veljan Denison Ltd with an objective to
manufacture and distribute hydraulic motors, pumps and valves. Denison Hydraulics India
Limited, was set up originally in 1974 under technical & financial collaboration with Denison
division of Abex Corpn. USA. When Hagglunds of Sweden acquired Denison Hydraulics from
Abex Industries this Indian company too went to its fold to become Hagglunds Denison India
Limited. When Hagglunds divested the Denison Hydraulics part in 1994, the Indian company
decided to part ways and since then it has been on its own and without having any relationship
Second Generation Andhra Entrepreneurs | 63
with its erstwhile collaborators. This company has been renamed as Veljan Denison Limited in
the year 2010. Veljan has experience in developing and manufacturing a wide range of Pneumatic
and Hydraulic products, components and systems for Ship building, Energy, Mobile and Industrial
segments.
Corporate Hospitals
Prathap Chandra Reddy, Founder of Apollo Hospitals Group
Dr. Prathap C Reddy, the visionary Founder-Chairman of Apollo Hospitals is widely acknowledged
as the architect of modern Indian healthcare. Dr. Reddy is a cardiologist with international experience.
He worked at the Missouri State Hospital in the U.S where he also had the distinction of heading
multiple research programs. Apollo Hospitals opened its doors in 1983 and introduced international
quality healthcare to India, at a cost that was a fraction of comparable costs in the western world.
Over the years, Dr. Reddy has carried the torch of healthcare to distant corners of India. Always the
visionary, he harnessed technology and insurance to take healthcare to the masses. The pioneering
success of telemedicine and innovative insurance in Aragonda, the world’s first V-SAT enabled
remote village in Andhra Pradesh validated the concept of ‘Healthcare for All.’ He also envisioned the
groundbreaking Apollo Reach Hospitals model, one that takes high quality healthcare to semi urban
and rural geographies. The chain of corporate hospitals, 38 owned and 13 managed, treats patients
from 120 countries.
The trend continued with NRI doctors returning to A.P to start super specialty clinics. Another
important landmark was return of Kakarla Subbarao founder president of Telugu Association of
North America (TANA) at the invitation of NT RamaRao.
64 | Andhra Entrepreneurs
Dr. Kakarla Subba Rao was born on 25 January, 1925 in a middle class agricultural family at
Pedamuttevi, a small village in Krishna District of Andhra Pradesh. He had his early schooling at
S.R. High School, Challapalli and The Hindu College at Machilipatnam, between 1937–1944. In
1944 he joined Andhra Medical College at Vizag and passed MBBS in 1950. Having completed
his internship at K.G. Hospital, Vizag in 1951, Dr. Subbarao left for USA for higher studies, on a
special scholarship. In 1955, he cleared his American Board Exam in Radiology. During 1954–1956
Dr. Kakarla worked as a ‘Special Fellow’ in Radiology at New York and Baltimore. Dr. Subba Rao
was the one of the few eminent personalities who responded positively to the Chief Minister’s call.
He wanted to provide world class medical facilities to the common man in India. So he started
reorganizing the Nizam’s Institute of Medical sciences (NIMS) at Hyderabad with the help of
government of Andhra Pradesh. Today, NIMS is prestigious medical institute of excellence in patient
service, education, training and research.
Corporate Schools
Ponguru Narayana, Founder Narayana Group of Educational Institutions
Starting a small mathematics coaching centre in 1979 Dr. Ponguru Narayana post-graduate gold
medalist in Statistics from S.V University, Tirupathi. has come a long way in pioneering what is today
the Narayana Group of Educational Institutions. From residential schools to professional colleges
Second Generation Andhra Entrepreneurs | 65
and coaching centres across the country today, Dr. P. Narayana’s institutional have transformed
conventional education. Today it is Asia’s largest educational conglomerate with over 300,000
students, 30,000 employees capital over 500 centers, spread across 13 states.
IT Boom
Byrraju Ramalinga Raju, Satyam Computers
Ramalinga Raju, born to a farming family, earned a Bachelor of Commerce degree from Andhra
Loyola College at Vijayawada and subsequently earned an MBA from Ohio University in the United
States. After returning to India in 1977, Raju ventured into many businesses including Dhanunjaya
Hotels, Sri Satyam Spinning and Mytas Infra Limited before starting Satyam Computer Services in
1987. In 1999, Raju launched Satyam Infoway (Sify) as Satyam’s internet subsidiary, thereby becoming
an early participant in the Indian internet service market. Sify was later sold to Raju Vegesna.
Emergency Management and Research Institute (EMRI): was funded by the Raju brothers, of
Satyam Computers Services, with the vision of an emergency response service at global standards
applying innovative technology to respond to 30 million emergencies and save one million lives per
year. The three guiding principles are; involving people, applying knowledge and making things
happen. The toll-free number 108 enables people to call from landlines and mobiles to access medical,
police and fire department support. The ambulances are equipped to provide quality pre-hospital
care. Doctors are available around-the-clock at the control center, to provide support both to the
personnel in the ambulance and to the people at the site of the emergency. The delivery model builds
on integrated processes housed under one roof. With the life-saving service becoming so popular in
the rural parts of combined Andhra Pradesh, the (108) system was later introduced by the Central
government of India in other parts of India, it is currently operational in 22 states.
66 | Andhra Entrepreneurs
BVR Mohan Reddy holds a graduate degree in mechanical engineering from the College of
Engineering, Kakinada, India, and postgraduate degrees from the Indian Institute of Technology,
Kanpur and the University of Michigan. Cyient was established as Infotech Enterprises Ltd. in 1991
in Hyderabad, India by B.V.R. Mohan Reddy. Around 1999, it signed a breakthrough contract to
provide GIS conversion and consultation mapping services worth U.S. $5.5 million to U.S. based
Analytical Surveys, Inc. Within the same year, the company acquired Cartographic Sciences from
Analytical Surveys, Inc. In June 1999, the company acquired Dataview Solutions Limited, a UK based
GIS Software Company. The company continued to pursue engineering services, and finally got a
major breakthrough with a leading aircraft engine manufacturer in the year 2000 for engineering
services.
Media
Cherukuri Ramoji Rao, Founder of Ramoji group
Rao was born in Pedaparupudi, into an agricultural family. Ramoji Rao started his professional journey
by launching a magazine “Annadata” in 1969. From magazine, he turned towards providing trusted
financial services through Margadarsi Chit Fund. He then established Eenadu Newspaper, Eenadu
Television and Priya Foods under Ushodaya Enterprises. By 2009, Reliance Industries had acquired
the broadcast businesses of Ushodaya Enterprises for a reported $537 million. Rao has also produced
Second Generation Andhra Entrepreneurs | 67
more than 100 Telugu films through Ushakiron Movies. Companies owned by the Ramoji group
include Margadarsi Chit Fund, Eenadu newspaper, ETV, Ramadevi Public School, Priya Foods,
Ushakiran Movies and the Ramoji Film City near Hyderabad. He is also the chairman of Dolphin
group of hotels in Andhra Pradesh.
Women Entrepreneurs
Nara Bhuvaneswari, Heritage Foods Ltd
Mrs. Nara Bhuvaneswari, BA is a Promoter of Heritage Foods Ltd., and has been its Managing
Director and Vice Chairman since July 15, 2005. Mrs. Nara has 10 years Industry experience.
Mrs. Nara has been a Whole time Director for Heritage Foods (India) Ltd. since December 12,
1994. She serves as a Director in Heritage Finlease Limited, The annual turnover of Heritage Foods
crossed Rs. 2344.01 crores in financial year 2017–18.
Chakrapani was born on 05-08-1908 at Aitha Nagaram in Tenali district, AP and was christened as
Aluri Venkata Subba Rao. He took interest in literature and started writing. He assumed charge of
68 | Andhra Entrepreneurs
a Hindi school and had translated some hindi write-ups into Telugu. He took up writing seriously
and wrote for the magazines “Chitragupta and Vinodini.” He assumed a pen name of “Chakrapani”
suggested by Vrajananda Sharma. Chakrapani was introduced to Bengali literature when he was at the
sanatorium at Madanapalli undergoing treatment for Tuberculosis. He was was highly influenced by
the works of Sharath. He started to translate most of Sharath’s works into Telugu.
Chakrapani’s life always surrounded arts. He immersed himself with literature, magazines and
films. He was a versatile writer who wrote the stories “Patha Mangali, Aham Brahmasmi, and Komma”
etc and wrote satires on the society under the title of “Panileni Mangali.” He started the magazines for
elders “Andhra Jyothi” and for children “Chandamama” according to their tastes. He ran the children’s
monthly magazine “Chandamama” in 14 Indian languages which stands as a record for an editor.
The Marwaris and the Parsis were once the backbone of business in India. The Tatas, Shapoorji
Pallonji Mistrys, Godrejs, and the Wadias are shining examples of Parsi enterprise. The Marwaris too
commanded a major chunk of the country’s industrial assets: Business houses included the Khaitans,
Goenkas, Kotharis, Lodhas, and the Ruias. By the mid-19th century, the Marwaris had set up robust
Second Generation Andhra Entrepreneurs | 69
trading and banking networks wherever they went. They were talking of profits and global expansion
long before anyone else in the country. The community is known to have made money speculating
in cotton, jute, and hessian during World War I; those profits were used to lay the foundations of
successful businesses. The likes of Ghanshyam Das Birla and Ramdutt Goenka set up the Birla and
Goenka empires, which continue till today. Down south, the Chettiars stood out; they made their
fortunes as moneylenders in Burma before returning to India to set up flourishing business houses
such as the Murugappa Group, SPIC, etc.
Historically, any successful business group emerged from an area of scarcity. The Jews, the Arabs,
and the Marwaris all came from the desert; the Chettiars left their drought-stricken homeland for
greener pastures. The Parsis, who came from Persia, first settled in Kutch in western India—desert
again. It seemed a great theory, but one community refused to fit in. Like the Marwaris characterised
the 19th and 20th centuries, the Andhra entrepreneur is prominent in the 21st century, with companies
including the GMR group, GVK Industries, Dr. Reddy’s Labs, Apollo Hospitals, Lanco Infratech,
and Amara Raja Batteries.
The founders of most of these companies come from fertile lands, so that put paid to the desert
theory.
Chapter 3
We stand on the brink of a technological revolution that will fundamentally alter the way we live,
work, and relate to one another. In its scale, scope, and complexity, the transformation will be unlike
anything humankind has experienced before. We do not yet know just how it will unfold, but one
thing is clear: the response to it must be integrated and comprehensive, involving all stakeholders of
the global polity, from the public and private sectors to academia and civil society.
The First Industrial Revolution used water and steam power to mechanize production. The
Second used electric power to create mass production. The Third used electronics and information
technology to automate production. Now a Fourth Industrial Revolution is building on the Third, the
digital revolution that has been occurring since the middle of the last century. It is characterized by a
fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.
70
Fourth Industrial Revolution | 71
first world’s fair, at which they exhibited telegraphs, sewing machines, revolvers, reaping machines,
and steam hammers to demonstrate they that were the world’s leading manufacturer of machinery.
By this time the characteristics of industrial society—smoke rising from factories, bigger cities and
denser populations, railroads—could be seen in many places in Britain.
Britain tried to keep as secret how its machines were made, but people went there to learn about
them and took the techniques back home. Sometimes they smuggled the machines out in rowboats to
neighboring countries. The first countries after Britain to develop factories and railroads were Belgium,
Switzerland, France, and the states that became Germany. Building a national railroad system proved
an essential part of industrialization. Belgium began its railroads in 1834, France in 1842, Switzerland
in 1847, and Germany in the 1850s. Industrialization began in the United States when Samuel Slater
emigrated from Britain to Rhode Island in 1789 and set up the first textile factory on U.S soil. He
did this from memory, having left Britain without notes or plans that could have been confiscated
by British authorities. Francis Cabot Lowell, of Massachusetts, visited Britain from 1810 to 1812
and returned to set up the first power loom and the first factory combining mechanical spinning
and weaving in the States. Railroad construction in America boomed from the 1830s to 1870s. The
American Civil War (1861–65) was the first truly industrial war—the increasingly urbanized and
factory-based North fighting against the agriculture-focused South—and industrialization grew
explosively afterward. By 1900 the United States had overtaken Britain in manufacturing, producing
24 percent of the world’s output.
Between 1660–1760, few patents were awarded in England; it was unusual for more than a dozen
to be granted in any one year. Number of patents increases rapidly so that in 1800, 96 patents were
awarded and in 1850, 513. Out of 72 ‘superstar’ inventors born between 1660 and 1830, 81% obtained
at least one patent in the course of their careers. Patent agents appeared in the third quarter of the
eighteenth century. Agents offered an extremely valuable service; by 1849, virtually all inventors
employed an agent (even if they resided in the capital).
International patents: In the 1820s, Britons obtained, at the very least, 170 patents in France
(6.3%) of the total awarded) and in the 1830s, 415 (7%) of the total awarded. Henry Bessemer worked
on the problem of manufacturing cheap steel for ordnance production from 1850 to 1855 when he
patented his method. He sold an exclusive license to the Spanish for his steel converter for £5,000.
72 | Andhra Entrepreneurs
Patent infringement: Work on patent cases in the Court of Chancery between 1714 and 1758,
shows that there were, at the very least, forty one cases instigated by patentees. The Court of Chancery
offered patentees a variety of legal remedies – most importantly, injunctions.
Patent licensing: Between 1770 and 1845, around 30 percent of English patents were assigned
in full and another 25 percent were either assigned in part and/or licensed as well. Many inventors
licensed their patent. By selling a portion of the patent as part of a partnership agreement, inventors
could obtain access to manufacturing plant and/or capital. Without sufficient capital, it is difficult to
turn an invention to profit.
Many inventors made money: Silk-winding machinery patented by Thomas Lombe in 1718 and
worked in partnership with his half-brother John and his cousin William. Over the course of the
patent term (1718–1732, Thomas made £80,000, and when he died in 1739, he was able to leave his
family £120,000, a colossal fortune by the standards of the day.
All inventors did not make money: There were many inventors during the industrial revolution
who failed to reap any rewards from their endeavors and ended their days in poverty – John Kay,
James Hargreaves and Richard Trevithick to name but three. Moreover, Kay, Hargreaves and
Trevithick all chose to patent their most important inventions (respectively, the flying shuttle, the
spinning jenny and the first high-pressure steam locomotive), but to no avail.
With the rapid spread of the Industrial Revolution from Great Britain to the United States
and Europe came a wave of inventions, some of which were new, many of which simply improved
upon existing machines. Advances in science, particularly in chemistry, led to widespread changes,
especially in agriculture and medicine. Petroleum became an important source of energy, leading to a
new class of mobile machines (notably automobiles and trucks). Electricity was developed into a new
means of delivering energy, leading to the introduction of small motors as well as superior lighting for
both factories and houses. A new process of stringing together several inventions to create complex
systems revolutionized manufacturing, transportation, and communications, and helped to create new
business enterprises that were much larger than anything that had come before. The Second Industrial
Fourth Industrial Revolution | 73
Revolution brought advances in new energy sources, communication and transport. In each of these
developments, electricity played a major role.
The international aspect of patents in the chemical industry during that era makes an interesting
reading. Before World War I the acknowledged leader in the coal-tar dyestuff industry was Germany,
whose major companies held U.S. patents on all the important new chemicals. During the war,
however, the U.S. government, in order to bolster American companies producing organic-based
explosives, seized all the German patents in this country and distributed them among the largest
domestic concerns. Du Pont alone received licenses on some three hundred German patents. The
setback to Germany, even in defeat, was short-lived, though, and by the 1930s its chemical industry
was once again formidably strong. The response of American companies this time was to enter into
international cartels, in which patents were shared with foreign concerns in return for pledges not to
invade each other’s territories. One such alliance was effected before World War II between Standard
Oil of New Jersey (today’s Exxon) and Germany’s I.G. Farben; it permitted Standard Oil to hold sway
over the petroleum industry while Farben dominated the chemical.
Independent Innovators
From 1790 to 1853, the rate of invention was very low in the U.S. as economy was dominated by
agriculture. Yet, patenting exploded in the Industrial Revolution starting in the mid 19th Century
and lasting through the 1920s—a period characterized as the “golden age” of invention. The era of
independent innovators began about the same time Alexander Graham Bell invented his Telephone
and Edison opened his Menlo Park Laboratories. The successful independent innovators worked
with few assistants, mostly craftsman and in small laboratories or workshops that they designed
and owned. They used an empirical approach when science and scientific methods failed but they
also relied on organized information and experimental technique like those used by experimenting
scientists. Edward Weston, independent innovator of generators, lamps, measuring instruments built
a well-equipped lab besides his residence. The complex had steam driven machine tools, a chemical
lab, a physical lab with an array of electrical testing instruments and a library with ten thousand
volumes. He regularly employed 5 assistants.
When the independent innovators could not establish their own model room and machine shop,
they turned to model building shops that served a number of inventors. Charles Williams was a model
maker for Edison, Bell and many others. There were several unsuccessful inventors, experimenters and
entrepreneurs who walked into the Williams shop to have their experimental designs built. Sometimes
there were two or three in the shop at a time supervising the construction of their projects. But, there
were a few of them that were successful and became prominent inventors of this era. Edison at the
age of 21 worked on a press wire at night at Western Union and during his off hours, worked on his
projects at the Williams shop. Williams gave him the space he needed and extended Edison credit
74 | Andhra Entrepreneurs
for materials and work performed by his machinists. He sometimes worked after Williams went
home. While in Boston, Edison worked on a number of projects including a self-adjusting relay, stock
printer, and his own fire alarm telegraph. In October of 1868, Edison filed for his first patent, a vote
recorder for legislative bodies. In December of 1868, he placed his first advertisement for one of his
inventions and listed the Williams shop as his address.
Independent innovators could not depend on Science and abstract theory as guides into the future
because they were exploring beyond the front edge of technology and knowledge. They probed beyond
the realm of theory and the organized information that makes up packed down Science. Independents
invented a disproportionate share of radical inventions. They preferred to strive for breakthroughs
or improvements in nascent system rather than for incremental improvements in well-established
technologies. It was said that the greatest invention of 19th century was a method of invention.
This method not only produced technological artifacts but also large systems of interconnected
machines, distribution platforms, bodies of knowledge, techniques, training programs, careers etc.
As a consequence of 2nd industrial revolution which pushed the frontier of useful knowledge toward
capital intensive innovation, the direction of technology development changed resulting in relative
decline in contribution of independent innovators.
At the turn of the century, innovation and commercialization were increasingly separated activities
and specialized inventors sold or licensed their patents to firms. This development cumulated in
the outsourcing of some research tasks and the close collaboration between in-house researchers of
manufacturing firms and specialized free-standing research laboratories. Research laboratories were
established in the U.S. chemical and pharmaceutical industry at the same time as in Germany, whereas
the British chemical and pharmaceutical industries lagged behind. In the electrical engineering industry,
centralized R&D facilities were set-up during the inter-war period, but decentralized research was
conducted during the pre-1913 period in the U.S. and Germany.
The increasing innovative capacity of the German economy is, for example, reflected in
the rising number of patents granted as well as in the rising number of economically valuable,
long-living patents granted. The total number of patents granted per year varied between 4,000 and
5,000 during 1877–1890. Thereafter, the number of patents granted per year increased to about
10,000. During 1884–87 and 1889–1913, 219,513 patents were granted in Germany. The number
of patents traded was clustered in few technology classes: The largest number of transfers was
registered in electrical engineering with 2,405 transfers between 1877 and 1913, printing machines
and typewriters with 848 transfers, mechanical metal processing (754 transfers;), and chemical
processes and drugs, excluding dyestuffs (752 transfers). Firms from the dyestuff industry, which
was prominent for the early establishment of in-house R&D capacities, were less active on the
market for technology. Only 396 patent transfers were registered just 7.3 percent of the number of
patents granted.
Fourth Industrial Revolution | 75
The digital technology, the heart of the Third Industrial Revolution has been responsible for
unleashing exponential curves, disrupting entire sectors of the economy, and creating new business
models for several decades, beginning with the doubling of capacity and the halving of cost of computer
chips at Intel, bringing the cost of computing to near Zero Marginal Cost. Digital technology has
spread to personal computers, cell phones, the World Wide Web, social media, data storage, digital
music and video, renewable energy technology, fabrication technology, robotics, artificial intelligence,
gene splicing and gene sequencing, synthetic biology, GPS tracking etc The velocity, scope, and
systems impact has been both exponential and transformative.
The music industry, television, the news media, the knowledge sector, and more recently, the
energy sector, transport sector, and retail sector have been massively disrupted and diminished by the
free sharing of music, YouTube videos, e-books, social media, Wikipedia, and Massive Open Online
Courses at near Zero Marginal Cost. Millions of people are also producing renewable energy at near
Zero Marginal Cost, car sharing and home sharing at low marginal cost, producing 3D printed products
at low marginal cost, and increasingly transferring their shopping to virtual retail. At the same time,
while traditional industries have declined, thousands of new entrepreneurial enterprises, some profit
driven, others nonprofit have arisen. These new enterprises are harnessing the productivity potential
of the digital revolution by creating the digital platforms, algorithms, apps, and interconnections,
speeding humanity into the digital era and a Third Industrial Revolution.
Like the industrial revolutions that preceded it, the Internet revolution has its genesis in innovations
in technology. Although a vast number of discrete innovative steps helped contribute to emergence
of the Internet and continue to fuel its growth, the Internet, as we know it, was made possible in
large part by four advances in technology: low-cost computing power based on the integrated circuit;
advanced software that has made computers more versatile and easier to use; a high bandwidth
telecommunications network; and the development of the World Wide Web.
The story begins in the summer of 1958 with the invention of the integrated circuit. Jack Kilby
and Robert Noyce share the distinction of inventing the “integrated circuit” or microprocessor, now
often referred to simply as “the chip.” The integrated circuit is credited as one of the most important
inventions of the twentieth century, yet it is impressive more for its impact on technology than for
76 | Andhra Entrepreneurs
its sheer inventiveness. Kilby and Noyce, working separately and for competing companies, each
integrated a number of individual pre-existing components, transistors, resistors, capacitors and
connecting wiring to make the integrated circuit a reality. The invention of the microprocessor had a
tremendous impact on the affordability of computing power. By reducing the cost of computers while
massively increasing their power, the microprocessor made computers accessible to many who could
never have afforded or operated their predecessors. Noyce later went on to start Intel Corporation
with a friend named Gordon Moore, who led the project team at Intel that would eventually develop
the first microprocessor chip, the Intel 4004. The 4004 was the first “computer on a chip.” It integrated
on a single chip all the parts that made a computer “think.” As Moore continued his work on the
microprocessor, he noticed that the computing power of the microprocessor doubled every 18 to
24 months, an observation known today as Moore’s Law. Moore’s Law had a tremendous impact
on the computing industry, one that prompted a second important technological innovation. As
computer processing power began to drop in price, it became increasingly apparent to some that the
computer might one day become affordable to consumers and small- and medium-sized businesses.
This could only occur, however, if the software used on these machines made them easier to use and if
the computer industry’s business model evolved towards a mass-market economics that would reduce
prices.
As late as the early 1980s, the majority of computers used in commerce were built by companies
such as IBM and DEC and ran proprietary operating systems and software applications developed
specifically for each computer. This business model produced powerful machines that could do specific
things well, but it also kept prices high and versatility low. Beginning in the mid-1970s, however,
companies like Apple, Microsoft and others began to develop operating systems and applications
designed for the small but growing market of individual computer users and enthusiasts. This software
was more appropriate for a mass market business model because a single version of the software
could accomplish a variety of tasks and support a broad array of applications, and could be used by
non-experts without difficulty. These innovations laid the groundwork for companies such as Dell,
Compaq and others to develop a similar mass-market business model for the computers on which this
software could run. As economies of scale in both the software and hardware industries began to take
hold, prices dropped dramatically.
At the same time that personal computers were beginning to spread, a third important development
was emerging, this one in the area of telecommunications. As late as the mid-1980s, phone service in
nearly every country in the world was provided by telecommunications monopolies that were either
state-owned or state-sanctioned. In 1984, for example, AT&T Corporation controlled 95 percent of
the U.S. long distance market and provided most local services through its wholly owned subsidiaries.
13 Beginning in the 1980s, however, governments around the world began liberalizing, to varying
degrees, the market for basic telephone services. Liberalization of the U.S. telecommunications market
began with the 1984 divestiture by AT&T, which ended AT&T’s monopoly over long distance service
and divided local telephone service among the newly independent Baby Bells. Europe followed
Fourth Industrial Revolution | 77
suit in 1990 with the European Commission’s Services Directive, which imposed deadlines for
telecommunications liberalization in its Member States. This liberalization, together with important
innovations in the areas of cable-based and wireless telecommunications services, greatly expanded the
availability of moderately priced telecommunications bandwidth to large segments of the population.
The realities of Moore’s Law, higher telecommunications bandwidth and the new mass-market
business model in the information technology (IT) industry gave birth to a colossal increase in the
availability and use of computers throughout the world. Standard software applications such as word
processors and spreadsheets made computers both more useful and easier to use, while computer games
introduced a whole new type of recreation. But as late as 1990, only 22 percent of U.S. households had a
computer, and in other countries the figure was far lower. And despite growing investment by businesses,
information technologies were not causing noticeable increases in productivity or living standards. It
took the advent of a fourth innovation to unleash more broadly the potential of microprocessors,
software and high bandwidth telecommunications. This new technology came from the work of
Tim Berners-Lee, a British computer scientist. In 1989, while working at CERN, the European
Laboratory for Particle Physics in Switzerland, Berners-Lee proposed a new global hypertext project
for the Internet that was designed to allow people to collaborate and share information through inter-
connected hypertext documents. His program, called “WorldWideWeb,” was first made available
within CERN in December 1990 and on the Internet at large in the summer of 1991. Berners-Lee’s
new technology dramatically changed the Internet. It allowed people to publish words, pictures and
sounds online. It enabled businesses to exploit their information technology resources not only to
share information within their own companies, but with customers, suppliers, and anyone else located
anywhere in the world. Just four years after Berners-Lee introduced the World Wide Web, Internet
use started to grow exponentially – a trend that has continued since then.
Service Economy
Service economy can refer to one or both of two recent economic developments; The increased
importance of the service sector in industrialized economies and servitzation of products. The current
list of Fortune 500 companies contains more service companies and fewer manufacturers than in
previous decades. The service economy in developing countries is mostly concentrated in financial
services, hospitality, retail, health, human services, information technology and education. Products
today have a higher service component than in previous decades. In the management literature this is
referred to as the servitization of products or a product-service system. Virtually every product today
has a service component to it. The old dichotomy between product and service has been replaced by
a service-product continuum. Many products are being transformed into services.
For example, IBM treats its business as a service business. Although it still manufactures computers,
it sees the physical goods as a small part of the “business solutions” industry. They have found that
78 | Andhra Entrepreneurs
the price elasticity of demand for “business solutions” is much less than for hardware. There has been
a corresponding shift to a subscription pricing model. Rather than receiving a single payment for a
piece of manufactured equipment, many manufacturers are now receiving a steady stream of revenue
for ongoing contracts.
Since the 1950s, the global economy has undergone a structural transformation. For this change,
the American economist Victor R. Fuchs called it “the service economy” in 1968. He believes that
the United States has taken the lead in entering the service economy and society in the Western
countries. The declaration heralded the arrival of a service economy that began in the United States
on a global scale. With the rapid development of information revolution and technology, the service
economy has also shown new development trends. Services such as Telecommunication, Computer
and Information services have emerged as one of the most dynamic sectors. Between 1995 to 2014,
world exports of computer and information services expanded much more rapidly than any other
services sector, recording as much as 18 per cent growth on average annually. In 2014, world exports
of computer and information services reached an estimated U.S. $302 billion.
Technological innovation is increasingly making services exportable at low prices, and thus
causing a shift in a 60-year-old economic paradigm about tradable versus no tradable sectors, in that
countries do not need to build a domestic market or invest first in a manufacturing sector, but rather
“leapfrog” directly to exporting services. In such a case, service globalization offers new hope for
countries at various stages of economic development. Growing tradability of services may help with
the diversification strategies for resource-rich countries and low-income countries that are highly
concentrated exporters. For advanced economies, harnessing the benefits of trade in services will likely
remain a key factor to retaining their global competitive edge that powers the internet, and high value
components in global value chains.
Fourth Industrial Revolution | 79
The possibilities of billions of people connected by mobile devices, with unprecedented processing
power, storage capacity, and access to knowledge, are unlimited. And these possibilities will be
multiplied by emerging technology breakthroughs in fields such as artificial intelligence, robotics,
the Internet of Things, autonomous vehicles, 3-D printing, nanotechnology, biotechnology, materials
science, energy storage, and quantum computing.
Major shifts on the demand side are also occurring, as growing transparency, consumer engagement,
and new patterns of consumer behavior (increasingly built upon access to mobile networks and data)
force companies to adapt the way they design, market, and deliver products and services.
A key trend is the development of technology-enabled platforms that combine both demand
and supply to disrupt existing industry structures, such as those we see within the “sharing” or “on
demand” economy. These technology platforms, rendered easy to use by the smartphone, convene
people, assets, and data—thus creating entirely new ways of consuming goods and services in the
process. In addition, they lower the barriers for businesses and individuals to create wealth, altering
the personal and professional environments of workers. These new platform businesses are rapidly
multiplying into many new services, ranging from laundry to shopping, from chores to parking, from
massages to travel.
80 | Andhra Entrepreneurs
On the whole, there are four main effects that the Fourth Industrial Revolution has on business—
on customer expectations, on product enhancement, on collaborative innovation, and on organizational
forms. Whether consumers or businesses, customers are increasingly at the epicenter of the economy,
which is all about improving how customers are served. Physical products and services, moreover, can
now be enhanced with digital capabilities that increase their value. New technologies make assets more
durable and resilient, while data and analytics are transforming how they are maintained. A world
of customer experiences, data-based services, and asset performance through analytics, meanwhile,
requires new forms of collaboration, particularly given the speed at which innovation and disruption are
taking place. Overall, the inexorable shift from simple digitization (the Third Industrial Revolution)
to innovation based on combinations of technologies (the Fourth Industrial Revolution) is forcing
companies to reexamine the way they do business.
It highlights that in 2016, Europe, the United States and Japan were the main innovation centres,
with the Republic of Korea and China growing fast. Within Europe, Germany and France are foremost
Fourth Industrial Revolution | 81
in 4IR innovation, with complementary strengths. Germany stands out in the application domains
of vehicles, infrastructure and manufacturing, while France leads in enabling technologies such as
artificial intelligence, security, user interfaces and 3D systems. In terms of regions, the greater Paris
area (Île-de-France) and the greater Munich area (Oberbayern) lead Europe in 4IR technologies.
Asian companies are well represented among the top 25 4IR applicants and together account for
46% of all 4IR applications filed with the EPO between 2011 and 2016. Of these top 25 applicants,
twelve are from Asia, of which seven are from Japan, three from China and two from the Republic of
Korea. Inventions from the Republic of Korea and China have been increasing at a faster rate than in
other regions in recent years.
find that the majority of Patenting activity in this domain occurred in technology areas related
to Resource Management in a Wireless network, the patent distribution in this domain is very
fragmented with the Top patent filer in the field holding around 5% of the total patents. LG
holds the largest patent portfolio and, it is closely followed by Ericsson and Qualcomm. Using
proprietary patent analytics tool LexScore TM, WIPO identify Qualcomm as the leader in this
technology domain with high patent portfolio quality as well a good patent filing activity. NPEs
(Non Practicing Entity) like Interdigital and ETRI hold substantial patents in their portfolio.
With a very fragmented patent holding pattern and a high patent filing activity, we expect to see
significant patent licensing activity in this technology domain. Using Heat-map framework, they
predict significant patent licensing activity in the Wireless Communication Protocol and Device
Control Systems technology segments.
The patent portfolio has been divided into three broad categories – Networking, Computing
and Infrastructure. In the Networking level 1 category, the following three categories are of
interest: Resource Management, Communication Protocols, and Topology Management; with
2669 patents filed in Resource Management (Wired & Wireless), 2212 in Communication
Protocols (Wired & Wireless) and 1676 in Topology Management (Wired & Wireless). Resource
Management (Wired & Wireless) has seen a lot of patenting activity in the last 5 years with 2201
patents being filed in the last 5 years. In the Computing level 2 category, Information Retrieval,
Image Processing, and Data Security are the main focus areas; with 984, 671 and 628 patents
filed respectively. Information Retrieval has seen significant activity with 377 patent filings in the
last 5 years. Control Systems, Circuits, and Sensors form the key focus areas under Infrastructure
with 980, 893 and 277 patents filed respectively. Over the last 5 years, 700 patents were filed in
the field of Control Systems alone. In the Miscellaneous category, 1088 patents were filed in
E-Commerce, 755 in Home Security, and 735 in Healthcare. E-Commerce, which covers all the
transaction related processes has seen a lot of patenting activity in the last 5years with 689 patents
being filed in the last 5 years. LexInnova brought out a similar report. This report focuses on the
IP portfolio of Ericsson, LG, Nokia, Qualcomm and IBM. They divided IoT patents into four
Stack Layers: Edge Nodes, Connectivity, Data Centers and Analytics/Apps. Edge nodes are the
various devices and sensors which receive or collect data of the functioning and surroundings of
the system. The Connectivity layer is the network infrastructure involving all the communication
devices present in the network. Data Centers are server farms which receive and store data from
the network. Analytics/Apps access data from the data centers, analyze it and extract the desired
information with which users make decisions and further collaborate with other applications and
users. LG is the top patent filer in this domain with 1464 patents/patent applications. Out of
those 1464, 1403 are related to connectivity layer. LG is followed by Ericsson and Qualcomm
in number of patents/patent applications filed in overall IoT technology domain. They also have
shown extremely high interest in connectivity layer with more than 80% of the patents lying in
Fourth Industrial Revolution | 83
this domain. This is because the Connectivity layer lies at the foundation of the IoT technology
as it performs the crucial task of cleaning the data captured by the Edge Nodes and relaying them
to the data centers. Open Interconnect Consortium (OIC) and AllSeen Alliance are fixated on
defining the standards for the connectivity layer. IBM seems to be the only player whose prime
focus is not on connectivity but on datacenters and Analytics. This is evident by IBM’s R&D focus
in analytical engines like Watson and Blue Gene/Power servers.
Robots
Another trend is Robotisation of workplace. Armies of robots are spreading throughout factories
and warehouses around the world, as the accelerating pace of automation transforms a widening
range of industries. And it is not just in advanced countries but in emerging economies as well where
machines are a growing force, with global sales of industrial robots increasing by 18 percent to a record
$13.1 bn in 2016, according to research by the International Federation of Robotics, IFR. The rise
of the robots has coincided with a surge in share prices of some of the biggest manufacturers in the
sector, including the Japanese groups Fanuc and Yaskawa, Swiss engineering conglomerate ABB and
Kuka of Germany.
Another trend is the increasing range and type of robot, as they vary from flexible mechanical limbs
to smart machines that can work alongside humans. Collaborative robots, or cobots, are specifically
designed to interact with people.
84 | Andhra Entrepreneurs
In a business setting, those analytic techniques can be applied to solve real-life problems. These
problem types include:
Classif ication. Based on a set of training data, categorize new inputs as belonging to one of a set
of categories. An example of classification is identifying whether an image contains a specific type
of object, such as a truck or a car, or a product of acceptable quality coming from a manufacturing
line.
Continuous estimation. Based on a set of training data, estimate the next numeric value in a sequence.
This type of problem is sometimes described as “prediction,” particularly when it is applied to time
series data. One example of continuous estimation is forecasting the sales demand for a product,
based on a set of input data such as previous sales figures, consumer sentiment, and weather. Another
example is predicting the price of real estate, such as a building, using data describing the property
combined with photos of it.
Clustering. These problems require a system to create a set of categories, for which individual data
instances have a set of common or similar characteristics. An example of clustering is creating a set of
consumer segments based on data about individual consumers, including demographics, preferences,
and buyer behavior.
All other optimization. These problems require a system to generate a set of outputs that optimize
outcomes for a specific objective function (some of the other problem types can be considered types
of optimization, so we describe these as “all other” optimization). Generating a route for a vehicle that
creates the optimum combination of time and fuel use is an example of optimization.
Anomaly detection. Given a training set of data, determine whether specific inputs are out of the
ordinary. For instance, a system could be trained on a set of historical vibration data associated with
the performance of an operating piece of machinery, and then determine whether a new vibration
reading suggests that the machine is not operating normally. Note that anomaly detection can be
considered a subcategory of classification.
Ranking. Ranking algorithms are used most often in information retrieval problems in which the
results of a query or request needs to be ordered by some criterion.
Recommendation systems suggesting next product to buy use these types of algorithms as a final
step, sorting suggestions by relevance, before presenting the results to the user.
Data generation. These problems require a system to generate appropriately novel data based on
training data. For instance, a music composition system might be used to generate new pieces of music
in a particular style, after having been trained on pieces of music in that style.
In 69 percent of the use cases the consultant studied, deep neural networks can be used to improve
performance beyond that provided by other analytic techniques. Cases in which only neural networks
can be used, which we refer to here as “greenfield” cases, constituted just 16 percent of the total. For
the remaining 15 percent, artificial neural networks provided limited additional performance over
other analytics techniques, among other reasons because of data limitations that made these cases
unsuitable for deep learning.
Deep learning methods require thousands of data records for models to become relatively
good at classification tasks and, in some cases, millions for them to perform at the level of
humans. By one estimate, a supervised deep-learning algorithm will generally achieve acceptable
performance with around 5,000 labeled examples per category and will match or exceed
human level performance when trained with a data set containing at least 10 million labeled
examples.7 In some cases in which advanced analytics is currently used, so much data are available—
millions or even billions of rows per data set—that AI usage is the most appropriate technique.
However, if a threshold of data volume is not reached, AI may not add value to traditional analytics
techniques.
Technology Substitution
Some scenarios projected are frightening, consider this – A basic shovel, probably made of some
kind of metal, greatly improved human productivity in the production task of moving earth
(digging). The invention of mechanical diggers, first powered by steam and later by fossil fuels,
again greatly improved productivity in this task. A human operating a mechanical digger can move
much larger amounts of soil in a fixed amount of time than a single human using a shovel, who can
in turn move larger amounts than a human using just bare hands. The shovel and the mechanical
digger are pieces of capital that embody technology that complements human labour by making it
more productive. Some workers may lose their jobs as shovel operators when mechanical diggers
are introduced, or as bare hand diggers when shovels are introduced. Therefore these pieces of
equipment may, at the same substitute for human labour, depending on total demand in the
industry. Workers that are substituted in this way may, in the longer run, as a result of indirect
effects such as an increased demand for digging services, be re-employed (after acquiring new
skills) as operators of the new technology. In this case, they will tend to end up being better-off
due to higher wages that reflect higher productivity. Under the influence of machine learning,
however, the mechanical digger could be made self operating, just as autonomous (self-driving)
cars are now being developed. Such an autonomous digger would substitute entirely for human
Fourth Industrial Revolution | 87
labour, and the task of moving earth could, under at least some circumstances, be carried out
without any input of humans. This ultimate step in technological progress (robotisation) is very
different than those before, since it puts the worker out of a job without any perspective of being
re-employed in the digging business.
Hype Cycle
New technologies are hyped and Gartner came with a hype cycle.
The Hype Cycle for Emerging Technologies, 2017 provides insights gained from evaluations
of more than 2,000 technologies the research and advisory firms tracks. From this large base
of technologies, the technologies that show the most potential for delivering a competitive
advantage over the next five to 10 years are included in the Hype Cycle. The eight technologies
added to the Hype Cycle this year include 5G, Artificial General Intelligence, Deep Learning,
Deep Reinforcement Learning, Digital Twin, Edge Computing, Serverless PaaS and Cognitive
Computing. Ten technologies not included in the hype cycle for 2017 include 802.11ax,
88 | Andhra Entrepreneurs
Affective Computing, Context Brokering, Gesture Control Devices, Data Broker PaaS (dbrPaaS),
Micro Data Centers, Natural-Language Question Answering, Personal Analytics, Smart Data
Discovery and Virtual Personal Assistants.
The three most dominant trends include Artifical Intelligence (AI) Everywhere, Transparently
Immersive Experiences, and Digital Platforms. Gartner believes that key platform-enabling
technologies are 5G, Digital Twin, Edge Computing, Blockchain, IoT Platforms, Neuromorphic
Hardware, Quantum Computing, Serverless PaaS and Software-Defined Security.
Technology S-Curves
Explaining the dynamics of substitution is an important goal of the technology strategy literature.
S-curves have become the canonical representations of both the technology life cycle and of competing
technologies. The S-curve approach holds that the magnitude of performance improvement in a given
technology for a fixed unit of effort or time is relatively low during the early development stages. As
the technology is better understood, the rate of progress increases until the stage of maturity, at which
point the technology approaches its limits and the performance impact of additional efforts to improve
the technology are subject to decreasing returns. In the context of competing technologies, Foster’s
influential work posited that the substitution threat becomes salient when the new technology moves
beyond its development stage, and that substitution occurs when the new technology’s performance
surpasses the performance of the old technology – the point at which the new S-curve crosses the old.
Christensen observed that substitution can take place even when the new technology is inferior to
the old, arguing that if consumers are over-served along the main performance dimension they may
switch to the new technology if it offers superior performance on new dimensions.
Fourth Industrial Revolution | 89
Technology substitution is slower than expected as what matter for consumers is not the performance
of a technology “as-developed” rather, what matters is the performance of the technology “as-used..”
Consider the example of electric cars, which are threatening to substitute traditional gas-powered cars
on the basis of energy efficiency and emissions reduction. Although this competition is often framed
as one between products (i.e., electric vs. gas-powered vehicles) its outcome will be determined by
the competition between systems. Here, as-developed product performance is determined by the
interaction between the battery components (e.g., how much electric charge can be stored in the
battery) and the design of the car (e.g., how efficiently is energy consumed within the car, such as
through regenerative braking systems that captures the energy generated from slowing the car and
transfers it back to the battery). But once launched, the as-used performance of an electric car depends
on complementary elements such as the charging station infrastructure (e.g., how convenient it is for
a driver to recharge the battery). Taking such a systems view, it follows that the competition between
gas and electric cars should not be assessed on the basis of the standalone product or artifact, but
rather be considered within the context of the entire technology ecosystem on which the products’
performance depends.
Many technologies do not fall into this plug-and-play mold. Rather, their ability to create value
depends on the development and commercial deployment of other critical parts of the ecosystem.
When a new technology isn’t a simple plug-and-play substitution—when it requires significant
developments in the ecosystem in order to be useful—then a race between the new- and the
old-technology ecosystems begins. For example, in the case of cloud-based applications and storage,,
success depended not just on figuring out how to manage data in server farms, but also on ensuring
the satisfactory performance of critical complements such as broadband and online security. For the
old technology, what’s important is how its competitiveness can be increased by improvement in
the established ecosystem. In the case of desktop storage systems (the technology that cloud-based
applications would replace), extension opportunities have historically included faster interfaces and
more-robust components. As these opportunities become exhausted, we can expect substitution
to accelerate. And old technologies can stay longer than expected, Bar codes and radio frequency
identification (RFID) chips provide a good example. RFID chips hold the promise of storing far
richer data than bar codes ever could, but their adoption has lagged because of the slow deployment
of suitable IT infrastructure and non-uniform industry standards. Meanwhile, IT improvements have
extended the usability of bar code data, relegating RFID to niche applications and keeping the RFID
revolution at bay for the past two decades.
India Century
Opportunities abound for India as per report prepared by AIMA. Remote services alone can contribute
$133–315 billion in revenues to the Indian economy by 2020. The resultant employment creation
90 | Andhra Entrepreneurs
(direct and indirect) will be in the range of 10–24 million jobs by 2020. Starting with simple services,
such as call centers targeted at corporate clients, Indian providers can evolve to providing more complex
services to corporations and also targeting individuals as potential customers. The second opportunity,
importing customers into India, has the potential of generating $6–50 billion of revenues and creating
between 10 and 48 million jobs (direct and indirect) by 2020. Purely from an economic perspective,
the fundamentals for this business are strongly in India’s favour. The cost of medical treatment and
educational services in India is a fraction of the cost in developed countries. Several Indian health care
providers are already tapping into this opportunity by serving customers from the Middle East. In
the area of leisure tourism, India currently has an insignificant share of global tourist arrivals. Clearly,
there is large, untapped potential in this area waiting to be harnessed by India Inc.
Chapter 4
India’s long-term economic performance has been impressive. Despite variation around the
long-term growth rate, average growth over any continuous 10year period has steadily accelerated,
and has never reversed for a prolonged period. Acceleration in growth rate is consistent with India’s
steadily improving proximate determinants of long-term growth. Economic growth has also become
more stable, partly due to growth rates stabilizing within each sector, and due to the transition of the
economy toward the services sector, which has a more stable growth rate. And growth acceleration
has been characterized by productivity gains and not just by an increase in factor inputs. Productivity
gains are reflected in both labor productivity and total factor productivity. The contribution of
productivity gains to growth has increased in recent decades. Productivity gains are attributed to
both “within sector” gains, and to the reallocation of resources to more productive sectors.
PWC forecast of world economy by 2050 ranks India at number 2 position one rank higher than
USA. India’s share of the world GDP (PPP) is expected to raise from 7% to 15%. GDP measured
at market exchange rates (MERs) do not see quite such a radical shift in global economic power,
reflecting the lower average price levels in emerging economies. However, the gap is closing, in 2016,
U.S. GDP per capita was around four times the size of China’s and almost nine times that of India’s
and by 2050, these gaps are projected to narrow to around double China’s and around three times
India’s, demonstrating long-term income convergence.
91
92 | Andhra Entrepreneurs
But, there are other reports placing India near the bottom of ranking like The Global Competitiveness
Index, Global Innovation Index, World Happiness Index. On the relationship between competitiveness
and 4th Industrial Revolution, the report says:
The possibilities of the Fourth Industrial Revolution to produce productivity gains and, therefore, greater
prosperity for both individuals and communities depend on a number of factors. Ultimately the goal is for
individuals, firms, and sectors to be able to access emerging technologies, incorporate them into their innovation
and operational processes, and participate meaningfully in both new and transforming value networks. The
Forum’s approach to measuring innovation is itself changing, taking an integrated, future-oriented, and
ecosystemic approach to the link between productivity and new products and processes, moving away from a
linear process of idea creation to commercialization. A hallmark of the Fourth Industrial Revolution is the
way in which it converges with relies on and employs digital technologies and business models in order to
create, exchange, and distribute value, requiring digital infrastructure and network availability in addition
to business sophistication.
job in manufacturing, there are 3.4 full-time equivalent jobs created in non-manufacturing sectors.
Manufacturing has spurred Traditional industrialization models that have worked in the past are
now being challenged as viable growth models for the future due to changes in production and the
macro environment. Each industrial revolution has created its own path, and new players have often
seized the opportunity to bypass legacy leaders. The Fourth Industrial Revolution and emerging
technologies are spurring the development of new production techniques and business models that
will fundamentally transform global production systems.
WEF Readiness Assessment is a mid-level analysis focused on production. The assessment is forward-
looking in that it measures readiness for the future, rather than performance today. It measures average
national readiness—meaning it assesses the entire country on average, not just the highest-performing
areas within a country. Readiness is generally regarded as the ability to capitalize on future production
opportunities, mitigate risks and challenges, and be resilient and agile in responding to unknown
future shocks. The assessment is made up of two main components: Structure of Production, or a
country’s current baseline of production, and Drivers of Production, or the key enablers that position
a country to capitalize on the Fourth Industrial Revolution to transform production systems. Where
does India stand?
Of the 100 countries and economies included in the assessment, there are 25 Leading countries,
10 Legacy countries, 7 High-Potential countries/economies and 58 Nascent countries. All Leading
countries are high-income countries except for China and Malaysia. Overall, the 25 Leading countries
already account for over three quarters of global Manufacturing Value Added today and are poised
to do well in the future—which could lead to increased global disparity in production. India is in
the Legacy country category, meaning there exists large structure of production but pulled down by
unfavourable drivers of production, which is measured by Technology & Innovation, Human Capital,
Global trade & investment, demand environment and sustainable resources. Thus India gets 30th rank
for structure of production but 44th rank for drivers of production. And in the demand environment
it ranks in top 5.
Legacy countries currently have a strong Structure of Production, but display a low level of readiness for
the future of production, characterized by weak performance across the Drivers of Production. Historically,
many Legacy countries benefited from globalization as more developed economies outsourced lower pieces of the
value chain to places with lower labour costs. As a result, Legacy countries received foreign direct investment,
increased market access and developed a strong Structure of Production. Whereas Leading countries score very
well on Complexity, Legacy countries’ strength within the Structure of Production tends to be on Scale. With
rising production costs, Legacy countries risk losing traditional manufacturing share to Nascent countries that
can offer even cheaper labour. By underinvesting across drivers, Legacy countries risk not being as prepared as
Leading countries to capture advanced manufacturing share in the future. Combined, these risks could lead to
premature de-industrialization if they are not managed effectively.
94 | Andhra Entrepreneurs
Does this mean India’s ride in 4th Industrial Revolution could be bumpy with obsolete manufacturing
technology?
Source: World Economic Forum Handbook on the Fourth Industrial Revolution and World Economic Forum Global Risks
Report 2017.
Global IT Outsourcing Market is accounted for $314.92 billion in 2015 and is expected to reach
$481.37 billion by 2022 growing at a CAGR of 6.2% during the forecast period. Improved company
focus, gaining access to exceptional capabilities and reduced costs are some of the major factors
driving the market. New market opportunities and trends with cloud computing and new business
models are prompting the IT infrastructure outsourcing services market. Given India’s status as an
offshoring and outsourcing destination of choice, it comes as no surprise that India is a huge provider
of “innovation services” to global and Indian companies. This extends to areas such as engineering
services, IT services, and contract research in the areas of pharmaceuticals and biotechnology. The
service verticals range from traditional industries, such as aerospace, automotive, telecommunications,
semiconductors, consumer electronics and construction/heavy machinery to new and emerging
verticals such as computing systems, energy, infrastructure, industrial automation and medical
devices. Companies providing innovation as a service include HCL Technologies, Wipro, Infosys,
Zensar, Aurigene and Clinigene, among others. While this innovative work is delivered in response
to somebody else’s specifications, it is technically complex, the intellectual property (IP) generated
may be co-owned, and sometimes, everything but the final branding and distribution takes place in
India. However, given the B2B nature of the R&D services provided, as well as the need for high
levels of confidentiality in projects of this nature, much of this innovation is not visible or known to
the end consumer. One example of this type of innovation is offered by HCL Technologies and its
contribution to Boeing’s 787 Dreamliner; HCL was responsible for “two mission critical systems: one
to avert airborne collisions and another to enable landing in zero visibility.”
India is expected to continue to be a preferred destination for both back-end and front-end
outsourcing. Five Key Future Opportunities for India’s BPO Sector:
• India is expected to continue to excel in service sectors that demand advanced English, such as
KPO, Content Creation, and Medicine. NASSCOM predicts India will successfully emerge
as a global hub for knowledge services soon leading up to 2022.
• India has a significant presence in pharmaceuticals, particularly in growth areas such as clinical
research and manufacturing. Availability of talent for high-quality trials and data management
gives Indian firms an edge over competitors.
• According to a Booze and Company study, India is set to dominate the Engineering R&D
sector. The ER&D sector is expected to grow to $1.4 trillion by 2020, with India’s domestic
market expected to contribute 10 to 15 percent of the global ER&D market.
• One area of sustainable economic advantage for India’s BPO sector continues to be its large
pool of English-speaking lawyers with expertise in overseas legal systems. This expertise enables
these firms to offer legal support and patent Several Indian companies have forged affiliations
with American law firms, capturing a small share of the U.S. market.
Opportunities for Andhra Entrepreneurs | 97
• India now leads the FAO (Finance and Accounting Outsourcing) market with a substantial
number of Fortune 500 companies having their outsourced operations in India through firms
like IBM, ACS, and TCS.
• Another vertical representing significant potential growth for Indian BPO firms is
Infrastructure Management Services. A wide range of management services for IT
infrastructure, application operations, IT security and maintenance fall into this emerging
sector.
Expertise in the IT industry erodes fast as software programs are upgraded or become obsolete.
Indian outsourcing giants such as Infosys and Wipro spend heavily to keep employees’ skills up to
date. But staff looking to change their career paths—to say nothing of those who didn’t crack the
interview in the first place—need rapid systems upgrades of their own. Training courses authorized
by software providers exist but cost up to 4,00,000 rupees. Fees at Ameerpet’s informal institutes are
typically below 25,000 rupees for classes lasting three to six months. Many courses that are in high
demand from students from across the country are taught in primitive classrooms filled with plastic
chairs. Costs are low in part because institutes use pirated software, avoiding expensive licences. Raids
occur sometimes, and the servers have to be wiped clean. But help is at hand to reinstall the software
quickly. It is what the attendees will soon be paid to do, after all, once they land a job. Many instructors
are moonlighting from their own IT jobs. In the classroom they use projects that simulate real-world
scenarios. Study material is repeatedly refreshed to reflect current job descriptions at leading IT firms
across India, not an outdated curriculum.
The training cluster started during the Y2K boom in India, there was a huge demand for the
jobs and courses in Hyderabad. The node was STPI (Software Technology Park of India) regional
headquarters located in Mytrivanam Building in Ameerpet. The initial group of entrepreneurs
got their license approvals and had setup their small startups with a capacity of 20 people in
rented apartments in and around Aditya Enclave’s Annapurna, Nigiri blocks. Over the time,
some of these tiny institutes have evolved to the spacious 300 seater halls equipped with LCD
screens and surround speakers to train the future software geeks. The tipping point reached
with Java.
98 | Andhra Entrepreneurs
Today, this three-square-km neighborhood packs in hundreds of IT institutes and over one
lakh students. Schoolchildren from the U.S. don’t come, but send their homework to be done by
the institutes of Ameerpet, while college kids send their university projects. Everybody comes to
Ameerpet, even students from Nigeria, the U.S. and UK. Most come to receive training, skill and
experience, while some come to teach. Together, they have created the most intense, intricate and
ingenious IT ecosystem packed into a single neighborhood.
An example is training in Block Chain offered by Sathya Technologies. The promotional materials
says – Our training on BlockChain technology offer in-depth understanding on the fundamentals of
BlockChain and practical usage of the technology. The training starts with introduction to the importance
of consensus in transactions, how transactions are stored in BlockChain, invention of BlockChain and
creptocurrency and BITCOINS. Proceeding further the training focuses on Ethereum platform and the
supporting programming language. Setting up private BlockChain using Ethereum will be the focus of
the practical training with contracts on Private Ethereum BlockChain on the web and console mode.
Hyperledger and Multichain and its usage will proceed and other key concepts of BlockChain will drive
the remaining part of the training program.
professionals on various kinds of exchange programs started applying for the permanent resident
status in the United States in order to become the citizens of the U.S.
In parallel advancements in the field of communication technology have accelerated the emerging
networks, more active, fast, instantaneous and cheaper than before, with the computer mediated
communication. These networks are a platform for the Telugu diaspora, to interact with itself and
with other migrants in various parts of the world, and also with the Telugus back at home. It is this
interaction between the Telugu diaspora and the Telugus that resulted in a virtual online community
of Telugus. This presence is felt online in terms of web pages (of Telugu associations, personals,
literary and entertainment pages etc), discussion forums/online groups, thread messages, list forums,
and Telugu Usenet groups. The online interaction between the Telugu diaspora and the Telugus
back at home results in a strong affiliation towards each other and helps in reinforcing the Telugu
identity among the diaspora. There is some kind of sub-nationalism among the Telugu diaspora based
on regional sentiments, that have really stretched with communication across the boundaries and
cyberspace has evolved into an effective platform.
Telugu is a global language, it is the language of enterprise and technology, of Indian soft power and a
vibrant Telugu-speaking diaspora – President Ram Nath Kovind addressing the valedictory function of
the World Telugu Conference in Hyderabad.
Whole eras of technical progress and growth appear to be driven by a few ‘General Purpose
Technologies’ (GPT’s), such as the steam engine, the electric motor, and semiconductors. GPT’s are
characterized by pervasiveness, inherent potential for technical improvements, and ‘innovational
complementarities,’ giving rise to increasing returns-to-scale. GPTs stand on technological solutions
which, thanks to their high level of technological generality, may find applications in different markets
and knowledge domains. They are often considered as impactful innovations that pave the way to
a swarm of incremental innovations transversally impacting several industries. A definition which
gathers together these perspectives is provided by Lipsey: a GPT “is a single technology, recognizable as
such over its whole lifetime that initially has much scope for improvement and eventually comes to be widely
used, to have many uses, and to have many spillover effects.”
Bioinformatics technologies, applications, and solutions touch the following fields: microbial
genome applications, molecular medicine, personalized medicine, preventative medicine gene
therapy, drug development, biotechnology, climate change studies, insect resistance, veterinary
science, evolutionary studies. Technologies drawn from diverse knowledge areas contributed to the
creation of this GPT. The history of Bioinformatics traces back to the late 1970s when Staden, in
a series of studies published on Nucleic Acids Research outlined the basics for the development
of computer programs allowing researchers to analyze DNA sequences. However, they could be
used only on large mainframe computers and run with non-standard programming languages;
these two characteristics made adapting them to small microcomputers time consuming and
not even economically affordable. These reasons, along with the need to facilitate dissemination,
inspired the work of James M. Pustell at the Kafatos Laboratory in Harvard’s Department of
Cellular and Development Biology. He worked on and improved four aspects: interaction, data
management, data analysis, and software compatibility. It was a success and the Bioinformatics
industry underwent periods of technological and scientific challenges, feeding each other over a
long period of time. In the 1990s the most urgent challenge was to deploy systems able to collect
huge amounts of data. At that time, the technical advancements were as such that tools like the
Genome Sequence Database allowed scientists to process data within 13 hrs; a performance that
only few years before was of 13 months. Since the beginning of the Human Genome Project in
1990, always more sequence data entered the databases. Then, a new challenge showed up: data
integration. Although progress has been made, still today this challenge is considered as perennial
issue in that the increase in the quantity of data brings complexity. Different approaches to data
integration are nowadays available ranging from service-oriented architectures, data warehousing,
view integration; workflows, mashups, and semantic web. Another set of challenges laid in the
problem of data standardization and data indexing. Recent technological advancements allow for
solutions which can also allow standardizing and indexing big data, mainly based on supervised
and unsupervised machine learning techniques. In terms of scientific developments, it is worth
Opportunities for Andhra Entrepreneurs | 101
considering that it is only from the mid-1990s onward that new journals, new conferences, and new
training programs (and textbooks) began to appear supporting this new domain of knowledge: in
1994, the first statement on the birth of computational biology as a discipline in its own right was
made by the new Journal of Computational Biology; in 1995, the first Bioinformatics textbook was
published Waterman; in 1998, the journal Computer Applications in the Biosciences (established
in 1985) changed its name to Bioinformatics highlighting “the importance of Bioinformatics, a
subject which is emerging as one of the leading scientific disciplines for the next century.”
Education in Bioinformatics has gone through the hype cycle. History of bioinformatics in
India dates back to the 1960s when Prof. G.N. Ramachandran and colleagues derived the famous
Ramachandran plot that provided the foundation of modern structural biology/bioinformatics.
Formalization of bioinformatics activities in India began in the early 1980s with the establishment
of a nation-wide network of Distributed Information Centers (DICs) under the umbrella of
the Biotechnology Information System (BTIS), by the Department of Biotechnology (DBT),
Government of India. The training programs in the 1980s focused on building awareness of
bioinformatics among biologists, medical practitioners, statisticians, mathematicians and IT
professionals. One year Advanced Diploma course in Bioinformatics (ADB) was launched in 1997.
In the wake of popularity of information technology, bioinformatics has also gained enormous
popularity among aspiring students and teaching institutions that are out to ‘make hay while
the sun shines.’ Unfortunately, neither the highly remunerative and satisfying jobs are in sight
nor are employable graduates who know their biology and technology well to become useful
“biotechnologists.” It was realized Bioinformatics cannot exist in vacuum, the output has to be part
of large research by Pharma firms.
Similarly, all transforming technologies would evolve as GPTs creating business opportunities
for entrepreneurs. OECD says Artificial intelligence, especially machine learning, is the most
important general-purpose technology of our era. The impact of these innovations on business
and the economy will be reflected not only in their direct contributions but also in their ability
to enable and inspire complementary innovations. New products and processes are being made
possible by better vision systems, speech recognition, intelligent problem solving, and many other
capabilities that machine learning delivers. AI, and in particular machine learning, certainly has the
potential to be pervasive, to be improved upon over time, and to spawn complementary innovations,
making it a candidate for an important GPT. The current generation of machine learning systems
is particularly suited for augmenting or automating tasks that involve at least some prediction
aspect. These cover a wide range of tasks, occupations and industries, from driving a car (predicting
the correct direction to turn the steering wheel) and diagnosing a disease (predicting its cause) to
recommending a product (predicting what the customer will like) and writing a song (predicting
which note sequence will be most popular).
102 | Andhra Entrepreneurs
Most importantly, machine learning systems can spur a variety of complementary innovations. For
instance, machine learning has transformed the abilities of machines to perform a number of basic
types of perception that enable a broader set of applications. Consider machine vision—the ability
to see and recognize objects, to label them in photos, and to interpret video streams. As error rates
in identifying pedestrians improve from one per 30 frames to about one per 30 million frames, self-
driving cars become increasingly feasible. Improved machine vision also makes practical a variety of
factory automation tasks and medical diagnoses. Specifically, the rise of cloud computing has made it
significantly easier to scale up new ideas at much lower cost than before.
McKinsey in their report India’s technology opportunity: Transforming work, empowering people
analysed impact of 12 empowering technologies. India is likely to experience very rapid diffusion
and adoption of 12 general purpose technologies and technology applications in the coming
decade. The most potent of these, the mobile Internet, will likely reach 700 million to 900 million
Indians by 2025. Along with cloud-based services, the automation of knowledge work, digital
payments, and verifiable digital identity, the mobile Internet can provide the foundation for remote
health care, adaptive learning, mobile agricultural extension services, and other innovative services.
Beyond digital technologies, rapid advancements in energy (unconventional oil and gas, renewables,
storage), genomics, advanced geographic information systems (GIS), and intelligent transportation
and distribution can help India build a more stable power supply, raise productivity in farming,
move goods and people more efficiently, and improve access to clean drinking water.
Many of the Indian IT companies have invested in artificial-intelligence (AI) technologies, and
have developed their own products and platforms. For instance, Tata Consultancy Services, India’s
largest IT-services exporter, launched its Ignio AI platform in June 2015 both as a standalone product
and as a bundled offering with its other services. Infosys, the second-largest player in the country’s
IT space, unveiled its Aikido offering in August. Wipro launched its Holmes platform around the
same time. Several smaller players are planning to follow suit. India has an edge in SaaS given its
status as a mobilefirst country, and the fact that much SaaS innovation will be focused around mobile
applications. Indian SaaS companies are deemed to have particularly great potential in the areas of
customer-relationship management, data visualization, human resources, marketing, healthcare and
education. Examples of successful Indian SaaS companies include FreshDesk, Appointy, SignEasy,
Grabber, WebEngage, Wingify and Helpshift.
Opportunities for Andhra Entrepreneurs | 103
India Stack is a set of APIs that allows governments, businesses, startups and developers to utilise
an unique digital Infrastructure to solve India’s hard problems towards presence-less, paperless,
and cashless service delivery. The Open API team at iSPIRT has been a pro-bono partner in the
development, evolution, and evangelisation of these APIs and systems. India Stack provides 4 distinct
technology layers. Presenceless layer – Where a universal biometric digital identity allows people to
participate in any service from anywhere in the country. Paperless layer – Where digital records move
with an individual’s digital identity, eliminating the need for massive amount of paper collection and
storage. Cashless layer – Where a single interface to all the country’s bank accounts and wallets to
democratize payments. Consent layer-Which allows data to move freely and securely to democratize
the market for data.
2009-UIDAI was created with the objective to issue Unique Identification numbers (UID), named
as “Aadhaar.”
2010-UIDAI launched Aadhaar Auth API even before the first Aadhaar was issued.
2011-NPCI launched Aadhaar Payments Bridge & Aadhar Enabled Payments System which
uses Aadhaar number as a central key for electronically channelizing the Government benefits and
subsidies.
2012-UIDAI launched eKYC which allows businesses to perform Know Your Customer
verification process digitally using Biometric or Mobile OTP.
2015-CCA launches eSign as an open API to facilitate an Aadhaar holder to digitally sign a
document and MeitY launches DigiLocker, a platform for issuance and verification of documents &
certificates in a digital way, thus eliminating the use of physical documents.
104 | Andhra Entrepreneurs
2016-NPCI launches Unified Payments Interface, the most advanced public payments system in
the world to revolutionise digital payments in India.
2016-NeGD launches DigitalLocker, a a platform for issuance and verification of documents &
certificates in a digital way.
Yellapragada Subbarao was an Indian biochemist who discovered the function of adenosine
triphosphate as an energy source in the cell, developed methotrexate for the treatment of cancer and
Opportunities for Andhra Entrepreneurs | 105
While Subbarao worked in USA, another distinguished Scientist Naudamma worked in India,
bring lab technology to field. Yelavarthy Nayudamma was a chemical engineer and a scientist who
contributed to the initial development of the Central Leather Research Institute (CLRI) at Chennai,
India. He was responsible for building the international image of the institute and for establishing
close ties with the Indian leather industry. Nayudamma laid the foundation for collaboration among
the trinity of academy–research–industry in the Indian leather sector. He believed that the role of
CSIR institutions is to design, develop, deliver and disseminate technologies which matched the
need of a developing country. He believed in extension as a mechanism of technology transfer. He
developed several original models for technology dissemination and transfer from CLRI to industry.
He launched “Tanners’ gettogether” (a research-industry meet) as an annual event in the last week
of January. He introduced ‘International Leather Fair,’ industrial exhibition every year. Research
Institutes continue to value industry participation.
CuTi was developed by DRDO to make hand tools which are heat and spark free. DRDO works
on products containing explosives and other inflammable material which cannot be worked upon with
conventional tools. The heat produced by the torque of the conventional spanner and the slip of the
tool creates an arc which renders these tools unsafe. Earlier they were importing tools made of Copper-
Beryllium (CuBe) alloy from abroad but Beryllium is highly toxic and also not available in India. This
led to development of CuTi alloy by DMRL which filed for a patent in 1999. CuBe is strongest known
alloy of Copper and finds uses in many applications across industry sectors. Beryllium is a rare-earth
material, hazardous to produce and causes fatal human disease called Chronic Beryllium Disease,
when the exposure exceeds a certain limit. Many countries are restricting or banning use of alloys
106 | Andhra Entrepreneurs
containing beryllium. Because of its rare earth nature and strategic use in high-end defense products,
Beryllium is also prohibitively expensive. Of the many alternatives developed globally, DRDO’s CuTi
comes closest to CuBe, in which Copper provides malleability and Titanium provides strength. The
resulting alloy has high conductivity and thus produces no spark. (DRDO) has provided its patented
Copper-Titanium (CuTi) alloy technology for commercial exploitation to a start-up company Pahwa
Metal Tech Pvt Ltd. Besides non-sparking hand tools, the licensee also intends to use the alloy for
resistance welding products, MIG welding, electrical contacts, plunger tips, dies and moulds, engine
valve seats and for other special applications.
Like DRDO all research labs of CSIR, ICAR, ICME, BARC, ISRO, DBT, NRDC, IITs and IISc
are offering technologies to entrepreneurs. Technologies available from 15 labs of ICAR is placed at:
http://www.agrinnovateindia.co.in/india/index/113/availabletechnologies
The birth and growth of India’s chemical, agrochemical, generic drugs, petroleum, petrochemicals
and engineering industries can be traced to specific interventions of CSIR. Several pesticide plants,
based on technology developed at IICT, have been set up in different parts of the country; some
of them being Monocrotophos, Butachlor, DDVP, Diazinon, Chloropyriphos, as well as pestiside
intermediates like, Phosgene and phosgene based chemicals, Chloro-phenol, Allyl-chloride, Diketene
and diketene based chemicals, and intermediates for pesticides like, Trimethyl-phosphite etc. The
first organic chemical company (Hindustan Organic Chemicals), the first agrochemical company
(Hindustan Insecticides Limited), the first generic drug manufacturing company (CIPLA) and
the first tractor manufacturing company (Punjab Tractors Limited) all owe their origins to CSIR.
Technologies on offer from CSIR can be browsed at:
http://techindiacsir.anusandhan.net/online/Control.do?_tech
Opportunities for Andhra Entrepreneurs | 107
NRDC has the most successful record in Technology Transfer with over 4000 licensing agreements.
List is at: http://fccollc.com/nrdclive/search.php.
http://meity.gov.in/content/funded-projects
Some business opportunities based on technologies available from Indian research institutes are
highlighted here.
Agriculture
Testing adulteration in milk: A new rapid test for detection of detergent in milk, A new strip based
test for detection of neutralizers in milk, A new strip based test for detection of urea in milk, A
strip based test for detection of sucrose in milk. Paper strip assay for rapid detection of pesticide
residues in milk. Paper strip based assay for antibiotic detection in milk. Rapid test for detection
of coliforms in milk. Rapid test for detection of E. coli in milk. Spore-based kit for detection of
antibiotic residues in milk at the dairy farm. Strip based test for detection of glucose in milk. Strip
based test for detection of hydrogen peroxide in milk. Strip based test for detection of maltodextrin
in milk. Two stage enzyme assay for detection of enterococci in milk and milk products. Two stage
enzyme-based assay for detection of L. Monocytogenes in milk.
Superabsorbent Polymer from Cassava Starch: Superabsorbent polymers (SAPs) are a unique group
of three-dimensional polymeric networks that can absorb over a hundred times their weight in liquids
and the absorbed liquid is released slowly when put in the dry air to maintain the moisture of the
environment. In agriculture, these can be used as hydrogels to retain the moisture content of soil.
Hydrogels act as ‘miniature water reservoirs’ in soil, releasing water into the soil and maintaining
moisture balance in the soil.
Lac wax policosanol based plant growth regulator formulation: It is naturally found in epicuticular
waxes and responsible for plant growth promotion activities like growth, yield, photosynthesis, protein
synthesis, uptake of water and nutrients.
Bio NPK liquid formulation: Liquid formulation of NPK can be used for cereals, millets, pulses,
vegetables, fiber and oil producing commercial crops.
Biogrow: Liquid formulation of Biogrow can be used for maize and vegetables particularly tomato
and other solanaceous crops.
Vivek Millet Thresher-cum-Pearler: A finger millet thresher cum pearler with a threshing capacity of
30–35 kg/h and pearling capacity of 60–65 kg grain/h was designed on the basis of physical properties
of the grain.
VL Insect Trap: This works on the principle of the attraction of Scarabaeid beetles towards the
light. All light traps attract and capture beetles but this is designed specifically for Scarabaeids with
the negligible capture of beneficial insects
Value added products from Rice: Rice Riche cream for Cracked Heel and Dry Skin – The product is
an herbal formulation useful for therapeutic and cosmetic applications such as cracked heels and dry
skin disorder. Rice Riche Face Scrub – This product has been developed from rice bran oil, rice flour,
humectants and acceptable amount of preservative. Rice Riche Moisturizing Lotion – The starch
extracted from brown rice acts as a gelling agent in the formulation and provides moisture to skin
slowly but for a longer period of time. Rice Riche Pain Relieving Gel – The product is non-sticky,
light and absorbed by the skin quickly.
Pheromone traps: Aneco-friendly sex pheromone trap attracts male flies thus check the multiplication
in the field with the help of Lure (pheromone applied on wood piece).
GYP Kit: The Gyp kit was developed on titrimetric soil analysis. This kit is useful to assess soil
sodicity and quantum of mineral gypsum required for chemical reclamation of sodic soil to optimizing
crop production.
NutMagic: A formulation of consortium of PGPR, PSB, and groundnut rhizobia: The consortium
has been formulated as talcum based powder and also in liquid and recommended for seed treatment
for both irrigated and rain-fed situations.
Agricultural Machinery
CIAE Power Operated Millet Flaking Machine – suitable for use with different sizes of millets/cereals
and other food/feed materials into variable thickness flakes.
CIAE Power cum Manual Operated Fruit and Vegetable Grader – used for grading of different
spherical fruits and vegetables having an equivalent diameter of 35 mm to 120 mm.
CIAE Power Operated Expanding Flap Type Fruit Grader – The developed grader has been installed
at M/S Patidar Musli Farm and Research Centre, Jotpur, M.P., India. The grader was run for the
grading of citrus fruit on the farm for two seasons.
CIAE Tractor Drawn Pre-Emergence Herbicide Strip Applicator-cum Planter – The 6-row
pre-emergence herbicide strip-application system was designed and developed as an attachment to
Opportunities for Andhra Entrepreneurs | 109
the inclined-plate planter to apply herbicide at the time of sowing in widely spaced crops to control
weeds along the crop rows, often not possible in mechanical weeding.
CIAE SPAD – Meter – a low cost alternative to imported one to measure the greenness of the leaf.
CIAE Motorized Multi Millet Thresher: single machine was available for threshing of all minor
millets.
CIAE Tractor Drawn Rotary Assisted Broad Bed Former-cum-Seeder – In this machine rolling type
shaper has been used which is suitable for vertisols also. CIAE Manual Stalk Uprooter – The developed
manual stalk uprooter would be an appropriate cost-effective aid to mechanize the uprooting stalks of
crops such as cotton, red gram, lantana camara etc.
DNA Markers for Assessing Seed Purity: The invention relates to DNA markers specific to WA
cytoplasmic male sterile lines of rice, for assessing seed purity and a method for ensuring the purity of
cytoplasmic male sterile lines of rice using the said DNA based markers.
Annona Seed Extract as Insecticide: Bioactive based insecticidal compositions with improved
retention times.
Avobenzone-Anti-UV Agents: Oil-soluble ingredients which can absorb the full spectrum of
UVA rays.
Novel Pesticide – Botanical Pesticide Against Plant Pathogenic Fungi and Nematode: In pilot plant
experiment soil treatment with developed microemulsion formulation approx. 5 ml active ingredient/
msq gave good control of pathogens.
PAU Farm Solar Dryer: The stagnation temperature of 70–75 degree C while working temperature
of the order of 50–70 degree centigrade has been recorded in this dryer.
A Cooking Process for Silk Cocoons: Tasar cocoons dipped in amine solution and treat cocoons at a
temperature of 70 to 90 deg C for a period of 30 to 120 minutes.
Food
Bitter Gourd Spiced Drink: Process for Preparation of Bitter Gourd Spiced Drink for Control of
Diabetes Mellitus (Type-II).
110 | Andhra Entrepreneurs
A biopersevative for extending the shelf life of fresh mutton: DFRL has addressed the problem of
preserving fresh mutton without adding chemical preservatives by identifying and applying an edible
preservative viz. pomegranate peel extract which enhances the shelf life of fresh mutton up to four
days at ambient conditions.
Barley bar and fibre enriched bar: Changes in life style and eating habits have considerably decreased
the intake of fibre through the diet. Diet rich in fibres are associated with various health benefits.
Various processed foods or bars available lack in the fibre content to a desired level.
Aloe vera based fruit spread: Commonly used medication for colon ulcer offer only temporary relief
to ulcerative colitis. The aloe vera based fruit spread developed has been experimentally proved in rats
that it can ameliorate the acetic acid induced colon ulcer.
Beet root Juice Powder Mix: The vegetable juices are good source of minor nutrients and functional
properties with higher assimilation into the body.
Beetel Leaf Juice: Beetel leaves are having digestive property and good source of cartineoids,
Vitamins, minerals. Consumption of this juice after a heavy meal is good for digestion. But constant
chewing has a various effect in the mouth and therefore juice form will serve as a good solution.
Breathable films for packing fresh produces: The quality and shelf life of fresh produces were enhanced
by enclosing them in films that modified or controlled the atmosphere surrounding the product.
Chicken Biscuits: Meat is a good source of readily digestible protein and it contains all the essential
amino acids and fatty acids and supplies vitamins B-group Vitamins, minerals Cu, Zn, Na, K, Fe and
P. Various type of biscuits are available in the market but with vegetarian ingredients only. Hence to
develop a high protein biscuit which can deliver essential amino acids, fatty acids and iron, chicken
biscuits were developed.
Composite cereal bar: Composite cereal bar was prepared using composition of different cereal
ingredients of choice.the bar contains soy, wheat, maize, barley etc as cereals toto provide a balanced
protein in the diet.
Egg Protein Biscuits: The biscuit industry lacks suitable protein rich egg biscuits and since egg
protein is the best protein in terms of biological value, the same required to be incorporated maintaining
optimal sensory attributes of the product without textural losses or off-flavour.
Opportunities for Andhra Entrepreneurs | 111
Fibre rich bisibele bhath, Fibre rich vegetable pulav: The functionality of dietary fibre refers to the
physiologically beneficial actions leading to better health conditions. In high altitudes, dietary fibre
rich diet is needed because of problems of constipations, haemolroidiate.
Freeze Dried Mango Milk Shake: Freeze dried fruit drinks serve as a natural source for delivering
functional components. Techniques employed for processing fruit and vegetables often result in
significant loss of colour, flavour and nutrients. Freeze drying technology eliminates the need for
synthetic colouring and flavouring and also provides functional components. Considering these, a
ready-to-reconstitute freeze dried mango milk shake was developed which can deliver the RDA level
of ascorbic acid and carotene.
Groundnut Burfi: Burfi based on khoa is a sweet product relished by all segments of population
having a limited shelf-life. Burfi prepared by using groundnut which is a rich and economic source of
protein and other micronutrients is available with longer shelf-life.
Instant Carrot Halwa: The carrot halwa is popular Indian sweet prepared by cooking grated
carrot along with milk, khoa, dry fruits cashew nuts, raisins and flavouring cardamom powder. It
is rich in nutrition particularly vitamin a, proteins, and calories. the problem is, the availability of
carrot is seasonal, the preparation of carrot halwa is tedius and time consuming process in addition to
cumbersome. More over the freshly prepared carrot halwa has limited shelf life of 2–3 days at room
temperature and about 1–2 week in refrigerated condition. The development of Instant carrot halwa
is intended to solve these problems.
Low Calorie Aloe Vera Juice: Natural Antidiabetic without toxicity and less cost is necessary to
reduce side effects of allopathic drugs. Low calorie aloe juice reduces blood sugar enhances nutrient
absorption, heal the wound very fast anti-inflammatory and antimicrobial.
Moringa Products soup mix and beverages: Commercial Moringa drumstick products in value added
form are not available. Moringa products are known for rich contents of iron and calcium and they
are also known to be extremely good health products as due to their rich content of antioxidants and
dietary fibre.
Retort Processed Chapaties: Freshly prepared chapaties have a minimum shelf-life. DFRL developed
preserved chapaties having a shelf-life of more than one year.
Shellac Coating: India produces and exports a large quantity of shellac. However, there is no
commercial shellac based surface coating available within the country for the purpose of coating
of fruits and vegetables for extending their shelf life. The waxol based coatings have number of
disadvantages such as non-uniform nature, incidence of anaerobiosis within the fruits, long drying
times etc.
112 | Andhra Entrepreneurs
Standardization of process for making milk paneer and enhancement of its shelf life: This innovation
was done to enhance the shelf life of paneer with respect to standardization of paneer preparation
and to study the physico-chemical, microbiological and sensory attributes and raw material treatment
with different hurdle treatments.
Cashew Apple Crunch: The crunch is a sugar treated chewing, crunchy bites. It is prepared by
utilizing the wasted cashew apples and then treating the same in a various sugar concentration and
then made in the form of chewing bytes.
Nutmeg Pericarp Taffy: This biomass of nutritious pericarp is simply left behind in the garden for
rotting after collecting the seeds and mace.
Ornamental Fish Feed Technology: These ingredients were dried, pulverized, mixed, steam cooked
and pelletized. Further, these pellets were dried and stored in airtight containers.
Mineral Mixture for Sheep and Goat: This mineral mixture is formulated based on the specific
mineral requirement of sheep and goat to meet 100% requirement of most deficient trace minerals
and partially meet the requirement of other minerals, with a consideration that remaining is to be met
through feed and fodder offered to animals.
Mobile Starch Extraction Plant for Sweet Potato and Cassava: in situ production of starch and value
addition near the farm site is possible with this mobile plant.
Convenient foods from Millets: Finger millet rawa (Ragi rawa), Finger millet Vermicelli (Ragi
Vermicelli), Foxtail millet vermicelli, Jowar Atta, Instant Millet Idli Mix, Instant Millet Laddu Mix,
Instant Sorghum Idli Mix, Jowar Biscuits (Sorghum biscuits), Jowar Cake, Jowar flakes (Sorghum
flakes), Jowar Idli Rawa (Sorghum Fine Semolina), Jowar Instant Pongal mix, Jowar Instant Upma
mix, Jowar Khichidi rawa (Sorghum Coarse Semolina), Jowar Pasta, Jowar rawa (Sorghum Medium
Semolina), Jowar vermicelli (Sorghum vermicelli), Millet rawa, Multi millet Biscuits, Multigrain
Atta, Pearl Millet puffs (Bajra Puffs), Sorghum extruded flakes, Sorghum extruded snacks, Sorghum
Instant Khichidi Mix, Sorghum muesli, Sorghum puffs.
CIAE Gluten-Free Eggless Cake: The invention comprises a series of manufacturing steps to prepare
multi-nutrient gluten-free flour mix (suitable quantities of finger millet flour, sprouted amaranth
flour and sprouted soy flour) and utilizing the flour mix to produce a cake.
CIAE Soy Fortified Nutritious Healthy Noodles: The noodle was developed based on ICMR
recommendations for school children of age group 9–18 yrs.
Tea Catechins: Green and sustainable process developed for obtaining green tea antioxidants
products free from toxic chemicals/solvents, physiological antioxidants and is used in nutraceuticals,
natural preservative, anti-microbial in food, health-care and cosmetic Industries.
Opportunities for Andhra Entrepreneurs | 113
A Process for the Production of White Pepper: Faster process producing white pepper with biogas
generation.
Bottling of Sugarcane Juice: Process for shelf stable natural sugarcane beverage. Beverage has a shelf
life of 4 months.
Coconut Beverage from Tender Coconut: Production of tender coconut beverage without any artificial
flavouring agents has nice market to cater the consumers with high awareness that prefer least chemical
additives.
Composite Ragi Rusk: In view of the trends in diversification of bakery products and importance of
health, bakery products composite bread containing millets such as Ragi has great scope.
Health Care
Chikungunya Antigen ELISA: This assay is based on the principle of double antibody sandwich
ELISA. Appearance of color change to brown indicates positive result. These kits will be useful for
early diagnosis of Chikungunya infection with high sensitivity and specificity.
Herbal Composition for Treating Asthma: The invention provides a method for the treatment of
asthma, employing principles extracted from the plant Murraya koenigii.
Anti Cough Herbal Formulation: Anti Cough Herbal Formulation for dryness of mouth, cracking
of voice and throat soothing.
Antiulcer Formulation: Antiulcer Formulation for acute and chronic ulcers in glandular region of
the stomach.
Herbal Sindoor: It does not contain any toxic metals or chemicals and is completely natural.
Natural Streptokinase (Sk) – The First Generation of CSIR’s Clot Busters: Natural streptokinase (SK),
a clot dissolving protein of bacterial origin, is a drug used world-wide for the treatment of diverse
circulatory disorders, especially myocardial infarction (M.I.).
New Infant Milk Formula (12% protein): The development was carried out on the CFTRI pilot
plant on a scale of 15 kg/batch.
Wound Dressing from Collagen Sponge: A collagenous source is made free from non-collagenous
materials to get a pure collagen solution, which is treated with foaming agent, drug solution, cross
114 | Andhra Entrepreneurs
linking agents, then lyophilized and sterilized to prepare the reconstituted collagen sponge. The
process uses slaughterhouse by products.
Water
Portable Water Bottle: A portable water bottle was developed to provide pure drinking water by removing
most of the harmful contaminants from water. It is able to remove main contaminants viz. iron and
turbidity and more experiments are under progress to remove bacteria from water. The portable water
bottle is suitable for disaster management like flood and other natural calamity. The portable bottle is
expected to purify most of the chemical and biological contaminants from flood water.
Arsenic Removal Water Filter: Large population in Gangetic belt of India is alarmingly affected
by arsenic poisoning. Effects of arsenic are severe and responsible for skin cancer, carcinoma, stunted
growth, etc. To mitigate the problem of arsenic contamination, a novel technology has been developed
at NMRL. This technology is based on the principle of co-precipitation and adsorption.
Water Analysis Kit: Portable Water analysis kit for determining physico-chemical and bacterial
parameters in drinking water.
Hand Pump Attachable Iron Removal Plant for Community Water Supply: Removal of iron from
groundwater for potable and other domestic purpose.
NEERI-ZAR: Instant Water Filter: Removes turbidity, organic matter and bacterial contamination.
Ceramic Membrane Based Technology for Water Purification: An innovative membrane technology.
Arsenic Water Filter: low cost filtering unit to provide arsenic free drinking water with a simple
cartridge made of modified plant materials.
Domestic Filter for Defluoridation of Water: Effective reduction of F – concentration from ~ 5 ppm
to below permissible limit (~1.5 ppm) Simultaneously useful for bacterial remediation since standard
SIAC is used.
Social Impact
Acoustic Life Detector (Sanjeevani): The technology is used to detect and save human beings trapped
under the debris of collapsed buildings due to earth quake or land slide. This equipment is based on
highly air sensitive acoustic sensor and audio signal processing to clearly listen to the victim’s low
frequency sound from below the debris. The sensors and related equipment are hermetically sealed
and hence it can be used in wet or raining environment after a calamity.
Biodigester: Technology has been developed for resolving the problems of un-decomposed human
waste. The innovation degrades and converts the human waste into usable water and gasses in an
Opportunities for Andhra Entrepreneurs | 115
eco-friendly manner. The generated gas can be utilized for energy/cooking and water for irrigation
purposes. The process involves the bacteria which feed upon the faecal matter inside the tank, through
anaerobic process which finally degrades the matter and releases methane gas that can be used for
cooking, along with the treated water. The Bio-digester tank can be manufactured and customised as
per the requirement.
DEPA 50% LOTION: DRDE, Gwalior has synthesized the multi-insect repellent
diethylphenyleacetamide (DEPA) and developed various formulation such as DEPA 50% lotion in
isopropanol. DEPA 50% lotion is an indigenized repellent available in India and highly effective
against various blood-sucking organism such as trombiculid mites and land leeches. Drug Controller
of India has granted license for its use as insect repellent on human being and DEPA is included in
the Indian Pharmacopoeia.
Herbal Mosquito Repellent Vaporizer: The innovation is a herbal based eco-friendly, non-toxic
and sweet smelling formulation of mosquito repellant liquidator, which is very effective and has long
shelf life. The chemical repellents available in the market all contain toxic chemical and may cause
some health problems after long use. The innovation is based on natural products incorporating
safety from accidental application by human, particularly by children and quick in action to cause
repelling/mortality in mosquitoes with an environmentally accepted sweet fragrance. It is produced
from herbs with repelling and medicinal properties and it is non-toxic & non allergic. It suits
children.
Anti-Fungal Ointment for Domestic Animal: CSIR-NEIST has developed two herbal formulation
i.e. powder and ointment for protecting domestic animals from skin infection. The formulation need
to apply to the affected skin of the animals for protection. For external use in skin fungal infections
of animals.
Herbal Non-Greasy Body Cream: The Jojoba plant (Simmondsia chinensis Link) seed oil contains
monoethylenic fatty acid and alcohol, which have good skin penetration similar to epidermal lipids.
Leather Puppet Manufacture: It is a process for production of leather puppets. In traditional folk art
plays and home decorative works/lamp shades etc. This work requires skill of art and painting.
Smart Technologies
Active Noise Control System for Pilot Helmet: Fighter and transport aircrafts, helicopters, Medical
application – infant incubators (spin-off ). Mitigation of health hazards resulting from exposure to
high noise levels. Enhancement of pilot comfort. Low frequency noise attenuation – 15dB.
City Air Pollution Monitoring and Prediction System – CAMPS: The system can monitor the city air
pollution at a granular level. The profile of air pollutants like Ozone, VOC, CO, NO2 etc. over the city
has been calculated based on developed spatial models on a Geographic Information System (GIS)
platform from the measured location based pollution level.
Development of Autonomous Intelligent Robotic Wheel Chair: Joystick based intelligent control system
with differentially steered six-wheel configuration.
Technologies from CDAC, Thiruvananthapuram: Solar power based Wireless Traffic Control
System (WiTraC), Second generation Area Traffic Control System (CoSiCoSt-2G), Real-
time Traffic Counting and Monitoring System, Intelligent Parking lot Management System
(e-PARK), Advanced Traveller Information System for Indian Cities, Intelligent Transit
Trip Planner and Real Time Route Information, Red-light Violation Detection System, An
intelligent Traffic Congestion Management System using RFID. Vehicle Control Unit, Train
Communication Network, Auxiliary Converter, STATCOM for neutral current compensation at IT
Parks.
Waste Management
A Wet Process for the Preparation of Waste PVC (Polyvinyl Chloride) Modified Bitumen: The process
developed uses most toxic plastic waste i.e. PVC waste which is difficult to recycle and which has
no safe disposal method and which is the most polluting in terms of dioxins can be safely reused in
bituminous roads.
Patch Fill-Pothole Repair Solution for Bituminous Roads: Patch-fill solution is useful for faster filling
of potholes in bituminous roads without causing any environmental pollution and hindrance to roads
users.
An Anaerobic Digester for Treating Household Organic Wastes: Important process to tackle the menace
of domestic organic waste with zero waste discharge.
Opportunities for Andhra Entrepreneurs | 117
Precast Ferrocement Toilet Core Unit (Prefer TOCO): Quality and speedy construction of the toilets
are essential to meet the massive demand. Precast concrete technology and ferro cement technology
are adopted in this technology to alleviate the problem.
Geopolymeric Building Materials: Room temperature cured flyash based geopolymer composition
for concrete and building materials using a specific process.
Plastic Waste Sorting System for Five Types of Plastics: The system sorts plastic waste materials
moving on a conveyor into five types of plastics viz., Poly-Ethylene-Teraphthalate (PET),
Poly-Propylene (PP), Poly-Vinyl-Chloride (PVC), Poly-Styrene (PS) and Poly-Ethylene (PE).
Fly Ash Soil Amendment Technology (FASAT): A process for the production of fertilizer from waste
fly ash with synergistic combination involving mixing of fly ash with grounded phosphatic rock,
potassium chloride etc.
Digital Grain Moisture Analyser: For grain harvesting, procurement, storages and food processing
industries, etc to ensure right quality and perseverance of quality.
Collagen Scaffold from Fish Scales: Process for the preparation of a collagenous scaffold from fish
scales for use in ophthalmic surgery.
A Cost-effective Process for Recovery of Low Sodium Salt from Bittern: A new process for recovery of
Low Sodium Salt from bittern has been described consisting comprising desulphatation, evaporation
processing.
Palladium Recovery: An improved process for palladium gets adsorbed into silica gel pores.
Agriculture Waste Fired Copra Dryer: copra dryer was developed and performance evaluated to dry
coconut in 36–40 h. The capacity of the dryer developed was 400 nuts per batch.
Kraft Paper from Cotton Plant Stalks: Cotton plant stalks are cut, cooked and beaten to make pulp.
Others
Fire Resistant cement Free ConcretCoe: It has advanced Hybrid Organic-Inorganic geopolymeric
materials possessing “pentavalent silicon complexes” due to incorporation of Hybrid Organic-
Inorganic liquor as special additives (3 to 5% only) leading to improved engineering properties in
comparison to conventional geopolymeric materials containing “tetravalent silicon complexes” only.
Cement Paint: A cement paint plant capable of producing 2 tpd (one shift) capacity White cement,
pigments, accelerators, water-repellants, hydrated lime, etc in ball mill.
1 kW Grid Tied/Stand-alone Solar Inverter: The inverter work as grid connected as well as stand-
alone inverter.
118 | Andhra Entrepreneurs
5HP Three Phase Solar Inverter for Pump Drive: Variable Frequency Drive (VFD) to provide
maximum torque with minimum sunlight.
Lithium Carbonate from Indian Lithium Bearing Mineral-Lepidolite: The process involves roasting
of ground ore (lepidolite 2.5 to 4% Li2O) with alkali sulphate followed by water leaching and
subsequently treating with carbonate salt. The recovery of lithium and purity of lithium carbonate
from this process was obtained as 90–92% and 98% respectively.
Explosive Detection Kit (EDK): An explosive test kit has been developed for identification of
explosives in pre and post explosion field conditions. Explosives in trace quantities (as low as 10 g)
can be identified using the kit. It is in use by paramilitary forces etc.
Acne Face Wash: A process to manufacture natural formulation for acne having plant extracts and
essential oil with gel base.
CIMAP ASVIKA Portable Mini Distillation Unit: for small scale production of rose water, distillation
of aromatic crops for essential oils, spices for spice oils, water extracts of herbs etc.
CRACKNIL – Anti-crack Cream: anti-crack cream having herbal extracts with natural essential
oil and beeswax as base, which provides all round protection to dull and rough skin and cured severe
cracks also.
Acoustic Milk Analyser: The system is capable of measuring milk contents like butterfat (%), solid
nonfat (%), proteins (%), lactose (%), density and added water (%) in milk.
Energy Efficient Multi-fuel Portable Cook Stoves (Harsha): A variety of solid fuels such as wood,
twig, leaf, dung cake, agricultural waste, raw coal, briquettes etc., can be burnt in the stoves at high
thermal efficiency (30% to 40%) irrespective of different physical & chemical characteristics.
Coconut Dehusking Machine: This improved manual and electric motor operated deshusking devices
can be used to dehusk coconuts without any damage.
Biochem treatment for softening of coir fibre: he Biochem treatment for quality improvement of
machine extracted coir fibre is carried out in open areas.
Cabinet Dryer for Ginger and Turmeric: Drying of freshly harvested ginger and turmeric to reduce
their moisture content and thereby preventing the loss in quality and quantity of cash-crops during
storage.
Opportunities for Andhra Entrepreneurs | 119
Rotary drum washer for ginger and turmeric: Rotary drum washer for ginger and turmeric –
Continuous hopper-fed washing of freshly harvested ginger and turmeric.
Fluidized Bed Dryer for Agro Crops: For drying in a safe desired level, storage & further processing
of different oilseeds.
Inter-Row Rotary Cultivator: For Intercultural operations in wide row crops like vegetables,
sugarcane, maize, cotton, soybean, peas, grams etc.
Dust Filter Fabrics: Tubular bags without seams can be effectively produced on circular weft
knitting machines.
Exotic Leathers: It is used for making high quality ladies handbags, shoes, belts and fancy items.
Stain Removing Technology for Fabrics: The different stain from tea curry Mud, grass, cowdung,
grease, ghee, tractor oil stains, etc. are treated in the different stages for complete removal of the stains
by this technology package.
Technologies from IITB: Supercritical Fluid Extraction System Design for extraction of food
flavours, additives and medical components, Vermiculture Technology for Solid and Liquid Waste
Management, New generation staple Herbicide, Ammonia absorption refrigeration system for ice
making application, Low cost Ammonia Sensor etc.
Innovations from grass root innovators (NIF): Pepper Thresher, Reaper Windrower with Reel,
Turmeric Harvester, Soil Scrapper cum loader, Tree Climber, Low Cost Paddy Thresher, Herbal
formulations, Cotton Stripper, Bicycle Weeder, Multi Crop Thresher, Chandraprabah – Rain
Gun, improved variety of onion, ground nut, carrot, cardamom, paddy, cauliflower, mustard, black
pepper etc.
Idea Connection lists many inventions for sale: Examples – Safe Cap is a technology that can be
built into any types of screw caps and give a visual indication (tamper alert) if the bottle, carton or
jar have been opened after it was sealed. This can be from factory or because the content must be
120 | Andhra Entrepreneurs
kept safe. 5 GALLON WATER JUG CARRY HANDLE-A small simple item that grips the neck
of the water jug for easy one hand lifting and carrying. This unit stops the strain on back and knees
when moving these awkward jugs. Canadian Patent application # 2,962,166. TRASH CAN WITH
A SHREDDER. Self-sharpening knife block etc.
Patent auction lists over 500 design patents and 5000 patents to buy. Examples – BIOPSY
NEEDLE SOFT TISSUE END CUTTING-A new, complete MEDICAL percutaneous “needle
biopsy system” for simple, safe, full-core, TRUE “end-cut” specimens from percutaneous soft tissue
biopsy. Patent issued 5/25/10 U.S. 7,722,550.
OECD took a survey of firms in Europe and Japan to find out why they license out their patents.
The results show that patent licensing is widespread among patenting firms: around one company
in five in Europe licenses patents to non-affiliated partners, whereas more than one in four does so
in Japan. The major barrier to licensing out patent markets is informational (identifying partners).
The motivations to license technology are diverse. Traditional explanations for licensing build on the
idea that firms license if they are less able (or unable) to exploit the innovation than the potential
licensees, or they aim at establishing their technology as a de facto standard, for instance when network
externalities are important.
India is an attractive but difficult market, universities and SMEs are always on the lookout for
partners to sell patents/designs. New to join are Born Global Firms or international new ventures
(INVs) defined as “business organisations that, from inception, seek to derive significant competitive
advantage from the use of resources and the sale of outputs in multiple countries.” These firms actively
hunt for business partners. They generate valuable patents in smaller nations in Europe, Israel,
New Zealand etc but market either does not exist or unattractive, they necessarily have to go out and
big markets waiting are India and China.
GreyOrange is a unique example of Indo-German collaboration of another kind. Many Indians are aware
of the start-up’s tremendous success in its five years of existence. What few know, however, is that this is an
example of collaboration between a senior German national (grey) and two young and enterprising Indian
engineers (orange), all of whom were passionate about robotics. Wolfgang Hoeltgen, a German engineer
with a successful 20-plus-year career at IBM, had been concerned over Germany’s changing demographic
profile and the consequences that would have on his country’s innovation capacity. Recognizing that striking
partnerships with India’s talented young engineers could result in mutual benefits for the two countries,
Hoeltgen began to visit India through his other venture, the German-India Business Center, in an effort
to educate German Mittelstand companies on the need to invest in and collaborate with Indian companies.
On one visit to India, he met Samay Kohli and Akash Gupta, then high-school students who had built the
first Indian humanoid robot, Achyut. The three stayed closely in touch, with the young engineers running
business ideas by Hoeltgen, and the German engineer providing advice and mentorship. Recognizing Kohli
Opportunities for Andhra Entrepreneurs | 121
and Gupta’s talent, Hoeltgen advised the pair to focus on solutions in the area of industrial automation. The
trio met at the end of 2011 to draw up a business plan. Hoeltgen prematurely closed his life-insurance policy
and provided the GreyOrange founders with seed capital in exchange for equity, on the condition that they
would keep him involved in the business. The combination has been extremely successful. While Kohli and
Gupta focused on developing the product, Hoeltgen provided the strategic and operational inputs necessary
to get the business off the ground. For example, he was instrumental in developing the start-up’s business,
strategic and marketing plans. Hoeltgenalso developed the customer presentations and the pitch presentations
for investors, and recruited the first set of GreyOrange employees. Conscious of the stresses associated with
the company’s meteoric growth, from 20 people to more than 360 people in a span of five years, Hoeltgen has
ensured that the young company invests in state-of-the-art systems, from lead-management software such as
SalesForce to engineering-management systems such as Windchill and enterprise-management software such
as SAP HANA. Hoeltgen views his role as “seeing things that the others don’t see” – the indefatigable engineer
is now focusing on expansion plans for GreyOrange.
Joint ventures, Technology Transfer agreements were common in India. Patent/design licensing
is relatively new and there a million patents for Indian entrepreneurs to leverage – USPTO issued
10 million patents. This unexplored territory is most promising opportunity now. Some technologies
listed at AUTM Global Technology Portal (USA) are: Biochar Adsoption of Chemicals From Agriculture
Drainage Water, Fracking Water And Other Polluted Waters, Unmanned Aerial and Ground Vehicles
in Precision Agriculture, The Purdue Plant Doctor App, Efficient Process to Liquefy Soy, Portable
And Autonomous Hydroponics Growing Unit, Remote Sensing of Subsurface Soil Moisture, Orchard
Insect Control Device, Developing Next Generation Insecticides, Natural product based Herbicide
and many more.
Royalty Payments
A royalty is a payment made by one party, usually a licensee or franchisee, to the legal owner of a
particular property, patent, copyrighted work, license or franchise for the right to use it for the purpose
of ongoing use to generate revenue. It is essentially a payment made by a party who wishes to use the
property of another for profit-generation for the use of this property. In India, Royalty is permitted
on any IPR with technology transfer under the automatic route, provided the payment does not
exceed 5% on domestic sales and 8% on exports and lump-sum payment does not exceed $2 million.
32 MNCs account for large part of royalty payment and five of these 32 MNCs have accounted for
over 70% of the royalty payments over the past four years: Maruti Suzuki India Limited (MSIL),
Hindustan Unilever Limited (HUL), ABB Limited (ABB), Nestlé India Limited (Nestlé), and Bosch
Limited (Bosch). These five companies paid royalty of Rs. 55.4 bn in FY16 – which is 78% of the total
Rs. 71 bn paid by the 32 MNCs.
122 | Andhra Entrepreneurs
Examples
Big data and IoT are creating new possibilities in agriculture and may provide useful tools to increase
food security by allowing farmers to identify the best time to plant by monitoring soil conditions
and by facilitating insurance. In India, the CropIn start-up provides analytics and software solutions
for crop management and has developed a vegetation index using satellite imagery that provides
support to farmers in decision-making to ensure crop health. Today, customers for this customized
cloud application are large companies that have invested in food processing and agriculture and
development until harvest. The system when fed with information pertaining to sowing time and
seed type provides crop development information at various stages of production. CropIn is used by
40 companies, including Pepsico and Mahindra.
Advances in ICTs could also facilitate the production and efficient distribution of water
like Mapping of water resources and weather forecasting, Remote sensing from satellites, In-situ
terrestrial sensing systems, Geographical Information Systems, Sensor networks, Setting up early
warning systems and meeting water demand in cities of the future, Rain/storm water harvesting,
Flood management, Managed aquifer recharge, Smart metering, Process knowledge systems, Asset
management for the water distribution network, Buried Asset identification and electronic tagging,
Smart pipes, Just-in-time repairs/real-time risk assessment, Just-in-time irrigation in agriculture and
landscaping – Geographical Information Systems.
Reinventing Farming
Today, there are hundreds of agriculture tech startups around the world and some experts say the
situation reminds them of the early days of the internet: There’s a lot of activity in agriculture, but no
clear winners yet – it’s hard to say who might become the Facebook or Amazon of the scene. Couple
that with climate change pressures, the fact that two billion more people will live on this planet by
2050 and that just 40% of the world’s land is available to grow crops, the farm market is ripe for
innovation and big money. Few examples from Forbes and other lists.
AgCode: This vineyard management company helps winegrowers track harvests, field conditions
and grape maturity in order to maximize yields and manage labor…
AGERpoint: This startup produces nut and citrus orchard management software that uses satellite
data. The data is granular enough to provide tree-specific information, like the size of the canopy or
the trunk diameter.
Bovcontrol: This livestock manager is helping cattle farmers keep better track of their herds using
cloud technology. Bovcontrol tracks inventory, vaccinations, nutrition needs and more.
124 | Andhra Entrepreneurs
Clear Labs: This science startup is making a database of the world’s food supply by studying food
on a molecular level. The goal is to use the information to help food retailers pick the best suppliers
and avoid the next crippling food borne illness outbreak.
CropX: An Israeli startup, CropX sells cloud-based software which aims to boost crop yields by
focusing on saving water and energy. With in-field sensors, the system automatically delivers the
correct amount of water to each plant instead of watering a whole field at a time.
FarmLead: An online marketplace for grain, FarmLead lets grain growers expand beyond their local
market and sell to the best bidders. Buyers and sellers can register for free, and deals are negotiated
anonymously.
FoodLogiQ: The average food recall costs companies $10 million. FoodLogiQ aims to reduce
those costs by using data to track a supply chain (i.e, food) from the farm to the fork, ensuring the
correct foods are recalled.
Full Harvest: 20 billion pounds of “ugly” produce go to waste in the U.S. each year. Full Harvest
is trying to reduce that waste by building a B2B marketplace where growers can connect with food
companies to offload surplus or imperfect produce.
Mavrx: This startup’s software allows farmers to visualize their entire fields in an instant,
highlighting areas where resources need to be directed and benchmarking crop performance.
NutriLeads, develops proprietary nutritional ingredients with clinically proven health benefits.
PeelPioneers, is focused on repurposing waste, by turning citrus peels into oils, fibers and food
ingredients
Produce Pay: Founded at Cornell University in 2014, this supply chain startup aims to fix cash-
flow problems by paying for the product the day after it is shipped, rather than the typical 30–45 day
waiting period.
RipeIO: Former financiers are bringing blockchain technology to the food supply chain. Its
algorithms crunch data to calculate sustainability scores, as well as scores for spoilage and safety levels.
Sample 6: Sample 6 claims to be “the world’s fastest food pathogen detection system” by detecting
a bug within 6 hours.
Simris Alg is cultivating algae as a food ingredient for the B2B market, as well as developing
consumer superfood and supplemental products.
Seamore Food has developed pasta and bacon alternatives from seaweed.
Opportunities for Andhra Entrepreneurs | 125
Spensa Technologies: Its Z-Trap hardware allows farmers to track pests in the fields by trapping
and identifying bug species.
Strider: A Brazil-based ranch management startup that sells a pest monitoring application which
allows farmers to monitor and decide how to treat infestations.
Terviva: An Oakland-based company that is cultivating the pongamia tree, which is native to
Australia and India, on American soil. The trees produce an oilseed with 10x more yield than soybeans
and have the potential to create a biofuel alternative.
Trace Genomics: using machine learning and genomics testing, Trace Genomics can ID microbes
and other biological data in soil, helping farmers maximize yields.
Technology Applications
Costly first and last More efficient first and Resource utilization improvement
mile delivery last mile delivery (e.g., shared transportation
platforms)
Market Greater disintermediation Marketplaces
intermediaries that do Emergence of higher
not generate value value-add intermediaries
Driverless tractors tilling acres of crops, produce growing in massive climate-controlled warehouses,
and seeds genetically altered to require less water are among the high-tech innovations changing or
about to change, agriculture. These technologies are making farms smarter, more productive, and
increasingly efficient. Precision agriculture involves collecting and analyzing data at the individual
plant level. According to the Stanford GSB team’s research, a survey of American farmers who used
precision technology reported average cost reductions of 15% and a 13% increase in yields. New
technologies such as gene editing or cellular agriculture are designing entirely new kinds of foods.
New irrigation systems deploy highly targeted water and fertilizer, using less of each, while vertical
and urban farms use less land and reduce pesticides.
128 | Andhra Entrepreneurs
In India, Innovation Fairs are organized by Indian Innovators Association (IIA), member of
International Federation of Inventors Associations (IFIA). Fair in 2016 was held in Bangalore
and in 2017 at Visakhapatnam. International Federation of Inventors Associations is a nonprofit
organization aiming to disseminate the culture of invention and innovation support inventors transfer
technology and establish cooperation with the related organizations. IFIA cooperates closely with
international organizations of importance in the realisation of its objectives. Established in 1968, IFIA
headquartered in Geneva, Switzerland has members from 80 countries. Thousands of innovations
exhibited in innovation fairs sponsored by IFIA are available for Indian entrepreneurs at International
Technology Bazaar.
Opportunities for Andhra Entrepreneurs | 129
Proliferation of enterprises in geographical proximity in same product line have not resulted
in development of thriving clusters in Andhra due to inadequate linkages – supply chain linkage
and knowledge linkage. In recent years, some studies have emphasized that geographically bounded
clusters should be viewed as systems of knowledge accumulation rather than just production systems.
In simple terms, ‘combinations of internally organised capabilities with external knowledge resources, and
the links between them’ is referred to as innovation or knowledge systems. An application of ‘innovation
systems’ concept to a cluster would require an analysis of capabilities internal to the cluster (or firms in
a cluster) and their linkages with external knowledge sources including organisations like universities,
R&D institutions, certification agencies, external firms, customers and so on.
Knowledge can flow into firms from outside the system, between firms (and other institutions)
within the system, or even internally within the firms themselves. All of these varied kinds of knowledge
flows may contribute to the accumulation of those knowledge stocks and resources often labelled
‘technological capabilities.’ At one end of a complexity spectrum these include the most routine
production capabilities required simply to maintain the efficiency of an established production system
130 | Andhra Entrepreneurs
of materials, labour and customer requirements as in the case of traditional manufacturing clusters. At
the other extreme are the most innovative capabilities required to specify and design new products,
develop novel machines and install new processes, establish new channels of supply and distribution
as in the case of modern manufacturing and services clusters.
Knowledge systems and production systems obviously overlap, but they are not identical.
Actors in one may not be actors in the other. Similarly, knowledge flows may be carried along the
same channels as those concerned with market transactions over goods but it is also very clear that in
some situations, goods – cantered linkages play little or no role in creating or diffusing knowledge. In
place of knowledge and production systems, some people refer to them as knowledge using elements
and knowledge-changing elements. The knowledge-using elements are involved, for example, in
maintaining or expanding capacity using given modes of production, training workers in established
operating procedures; and within a cluster context, the imitation of production techniques used by
neighbouring firms. The knowledge changing elements are involved, for example, in the management
of innovation processes, in product design and development, or in the search for, the selection of, and
adaptation and assimilation of new product or process technology (from outside the cluster).
Following the international fragmentation of production, goods and services are nowadays
produced and heavily traded in international production networks or Global Value Chains (GVCs).
More recently, innovation activities have also become increasingly internationalised thereby giving
rise to global innovation networks (GINs). The networks typically consist of own R&D facilities
abroad as well as collaborative arrangements with external partners and suppliers.
New networks, GVCs and GINs are more relevant today than caste and regional networks that
served to seed the growth of entrepreneurship 50 years back. Now, Andhra needs leaders who will
forge linkages with Global Value Chain, Global Innovation Network and facilitate formation of a
cluster of small industries. In this, The Smart Andhra Entrepreneur would be moving away from their
comfort zone and become explorer of new world like their predecessors – Farmer Capitalists.
References
Carol Boyak Upadhya (1988), ‘The farmer-capitalists of coastal Andhra Pradesh’ Economic and
Political Weekly.
Dalel Benbabaali, ‘Dominant caste and territory in South India: The case of the Kammas of Andhra
Pradesh.’
Harish Damodaran, (2008), ‘India’s new capitalists: Caste, business and industry in a modern nation’
SATYANARAYANA K, ‘A Study of the History and Culture of the Andhras,’ Volume 2, New Delhi,
People’s Publishing House, 1983.
131
About the Authors
This book is published by Indian Innovators Association (IIA) as service to society. In 2017 IIA
published guidebook Patent IPR Licensing, Technology Commercialisation, Innovation Marketing’.
Aynampudi Roshan is management consultant based in USA specializing in Heath Care and new
technologies.
133
View publication stats