RPG dies

Rama Prasad Goenka, 83, the patriarch of the over Rs.30,000-crore RP Goenka Group, passed away on Sunday at his Alipore residence in Kolkata after a protracted illness. A visionary business leader often referred to as the country’s original takeover tycoon, he perhaps saw it coming and divided his empire amicably between his two sons—Harsh and Sanjiv—in 2010. While Harsh has retained his group’s name as RPG Enterprises, younger brother Sanjiv calls his entity RP-Sanjiv Goenka Group.
Also referred to as “Rama babu” or “RPG” in modern times, he created a unique place for himself in the then staid world of business with his fast-paced takeover of companies—10 large ones in 11 years since 1981— in sectors as diverse as tyres, carbon black, pharmaceuticals, IT, power generation and transmission, entertainment, media, retail and plantations. This was before mergers and amalgamations became fashionable. But what he’ll always be remembered for is that he did all that sitting in Kolkata at a time industrialists—and capital—were exiting the state. What is also significant is that RPG did all this in the pre-liberalization era, battling red tape and a strong socialist mindset.
He kept his faith in Bengal, a conviction that would have made his task harder, and carried forward the fascinating journey of the Goenka Group started in 1820 by Ramdutt Goenka, who moved from Dundlod, a small town in Rajasthan, to do business with the British East India Company. An entire generation of Goenkas remained traders until independence and became the most influential Marwari family in Calcutta after the Birlas.
When RPG’s father, Keshav Prasad, divided his assets among his three sons, RPG, the eldest, inherited Phillips Carbon Black, Agarpara Jute Mills, Murphy Radio and Asian Cables with a combined turnover of Rs.105 crore. He then consolidated his companies under a separate entity, RPG Enterprises, and grew his business through a series of acquisitions. His first acquisition two years later was CEAT Tyres, after 11 trips to Turin to convince the Italian owners of the company to sell it to him. Over the next decade, he acquired nine more companies. But the acquisition of CEAT remained close to his heart even after 32 years.
RPG had one regret though — the exit of RPG Enterprises from the telecom sector in December 2003, he had said in the same interview. The group had formed RPG Cellular, a joint venture with Vodafone and Cellphone UK, but sold it to Aircel despite doing very well.
A graduate from Kolkata’s Presidency College (now University), he was inducted into the family business when he was just 21. This was also the time he was playing badminton for Bengal at the national level and cricket for the Calcutta University team. Cricket legends like Vinu Mankad, G Ramchand and Poly Umrigar were his close friends. While in college, RPG struck an enduring friendship with veteran Marxist and former Lok Sabha Speaker Somnath Chatterjee. But he had friends across the political spectrum.
RPG’s proximity to Indira Gandhi, whom he admired, landed him in jail, albeit for just three days, during the Janata Party regime in October 1977.  He was also a member of three trusts of the Nehru-Gandhi family till his death. A former member of the Rajya Sabha, Goenka was president of Ficci and also the chairman of IIT-Kharagpur’s board of governors.
A confidante described him as a “spontaneous person” who would find happiness in simple treats and loved Bengali food. He not only used to put a premium on loyalty, but also underlined that unless he himself was loyal to his employees, he could not expect the same in return. RPG’s passing away will bring the curtains down on an era where the head and heart used to drive business decisions in equal measure.