Inspiring Tales Part 5: My Interviews of First Generation Indian Entrepreneurs Who Made It Big

Inspiring Tales Part 5: My Interviews of First Generation Indian Entrepreneurs Who Made It Big

May 2013

    Aiming for the Stars

    Dr. AK Agarwal

    CEO, Autometer Alliance Ltd, Noida

He wanted to become a movie star and had even fled to Bombay to try his luck. But destiny had something else in store for Dr. AK Agarwal, son of a teacher. He could not get a break in the tinsel town but today, this village bred, cow rearing, and God fearing person, is considered a man with the Midas’ touch who not just turned around the fortunes of Autometer Alliance Ltd. from a turnover of just about Rs 1.8 crore in the late eighties, to the present Rs. 175 crore, he set up another company – River Engineering Private Limited – which in just five year has recorded a turnover of Rs. 65 crore. In an exclusive interview to Deepak Parvatiyar, he speaks about his life, achievements and dreams. Excerpts:

You never wanted to be an entrepreneur. How did you get into it?

 We were a mediocre family. I got my basic education in my village near Meerut. My father was a college teacher. I came to this profession by accident. I was in the cultural society in Pantnagar university, Nainital in 1978-79. After doing my graduation in engineering, I ran to Bombay to get a chance in some movie..to become actor. I remained there for six months but nothing happened. Small roles were there, but not so much success. I did not know anybody first of all. When it did not happen I came to this profession. Now I am enjoying the profession. But I am still a villager. I still maintain a cow. But side by side I am running the industry. I think that motivates me.(laughs)

Was it a big disappointment not getting into Bollywood?

(Pause) At that time yes. I have kept my passion alive. I even won an award for a 10-minute short film in a film festival. Our functions have stars and they come free of cost as I maintained a relationship with them and they all became big now.

When and how did you get associated with Autometers Alliance Ltd. which is a privately held public limited company?

I came here at a very junior level …deputy manager in Electrical Accessories department in 1986. Then I became senior in management so more responsibility, more accountability.

How challenging was it to carve a niche for yourself in this organization?

Challenging means first of all the project which I am handling today it is new. Earlier it was not there. From the beginning we were in automotive instrumentation. That was not so good market. That was highly competitive and there was no money there. And we were losing. So in 1988 we started this railway business and the first product was the a recording system for drivers in the locomotive (railway tachographs) in technical collaboration with a Swiss Company, Hasler AG. During those days there was the license raj system  so we used to get license for foreign exchange. So there were so many challenges that are very easy today.

How easy was it to climb the ladders without a godfather?

Even I had a great Father – God. God is supreme. I believe in divinity and in spirituality. Destiny plays a big role.

How did you apply for the job here?

 During those days opportunities were not so many. Like today there are opportunities but competition is also so much. At that time opportunities were there but competition was not so high. It was not so difficult to get job for qualified people. Today in every corner you find engineers, doctors. At that time nobody was there and so There was no big queue.

Had you ever imagined yourself to be as the head of the organization?

Not heading but it was always in my mind to become superior. It was always in my mind to get a luxurious position. Now I won’t call it a luxurious position but yes I enjoy some luxury as well. (laughs) As you go higher and higher  luxury is automatically embedded. You know I was interested to go for the movie business. That was always in my mind because you get luxury. I was thinking that to go to the movie business, it is a big luxury. I aspired for luxury and that was the driving force to work hard. So luxury was always in my mind but now I don’t need luxury at all.

What stake do you have in the company now?

Minority share. But the board has reposed faith in my abilities.

You are an engineer by profession and also hold a Ph.D in electrical engineering. Do your educational qualifications give you an edge over others?

Yes of course. Education always helps. It makes you thorough.

What type financial support did you have when you started?

Hardly anything! We were losing money. We were basically dependant on the bank. Still I remember I went to the bank – Central Bank of India – and met the chief manager. I told him that we don’t have money but we have the project. So he helped. He told me that on face value, he was giving us money. He gave us about Rs. 88 lakh in 1987-88. I was still a deputy manager at that time. The project was my idea. Naturally it was easy to convince my bosses as the company was losing money in automotive instruments. I was given the charge to rebuild the company. The bosses had no choice. So they decided new business generally thinking that it is a small business that should go to a small person of deputy manager level. But now we are not doing any automotive business.

What type of turnaround could you make?

See. First it was an automotive instrumentation. We shifted to new business. This was the first turnaround. It was a leading business at that time Earnings before interest, taxes, depreciation and amortization (Ebitda) was Rs 77 lakh now it is Rs 22 crore.This is a big turnaround. That time the turnover was around Rs 1.8 crore. Now it is Rs. 175 crore.

               

You also have a majority share in yet another company – River Engineering Private Limited. Please tell us about it?

While AAL is basically for power electronics and Railway, River Engineering is The company is basically focussing on defence. We manufacture certain items for aircraft and submarines. It is more of a mechanical electronics company. I started that company about five years ago. I started it with a seed money of Rs. 1 crore and now it has a turnover of around Rs. 65 crore. It is also a professionally managed company. It is in Greater Noida and I go there about two three times in a month. My son is under training there. He is an MBA from UK but the company is headed by a professional. I am the majority share holder.

Who do attribute your success to?

I attribute my success to hard work. We care for others. We deliver because of delegation. Management is all about managing the people and that does not mean bossing around but care for the people and empowering the people. I don’t believe in hire and fire policy.

Would you say it is a natural progression for an engineer to become an administrator?

 Really not! Engineers will always remain engineers and administration comes as a bonus. We cannot forget engineering.

What is your idea of leadership?

Leadership is basically to share with people, how to empower them and to create a perfect equation between accountability and responsibility. That is the main challenge in leadership.

What qualities are essential to be a successful entrepreneur and a good business leader?

Logical thinking is essential to be a successful entrepreneur.

Have you ever gone wrong on your thinking process?

Yes. So many times!

How do you define logical thinking? Is there any difference between logical thinking and out of box thinking?

Sometimes logical thinking also may not be the thinking what I need. I may be thinking its logical but it may not be logical. Out of box thinking is something out of the way. Our move to shift business was purely logical but we have taken so many out of the box decision. Like, we entered the escalator business. Where is escalator and where is power electronics. But we are doing very well in escalators. So my dream is to enter into high engineering business like escalators, elevators, Para bridge.

What is the message that you would like to give to budding entrepreneurs?

 Action without direction can be fatal…Arjun’s eye needs to be always kept on the roadmap. Better discover a new straight highway, than share a common zigzag street.