Through a whirlwind of mergers and acquisitions in the 1970s and ‘80s, he forged a billion-dollar conglomerate, RPG Enterprises, almost entirely through audacious inorganic growth, leaving an indelible mark on India’s industrial landscape.
He was born into a lineage of business royalty. His father, Keshav Prasad Goenka, expanded the family business through shrewd acquisitions like those of Duncan Brothers and Octavius Steel, two British trading houses and was awarded the Padma Bhushan in 1969, for his contributions to Indian industry. His grandfather was Badridas Goenka, the first Indian to be appointed chairman of the Imperial Bank of India (now the State Bank of India).
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Originally from Rajasthan, the Goenka family settled in Kolkata long enough to consider themselves honourable Bengalis. Young Rama Prasad secured his MA degree in economics from the prestigious Presidency College and claimed the city as his own.
Beginning his career in 1951 as an assistant in Duncan Brothers, he would get a chance to lay down his personal market after his father Keshav Prasad Goenka divided the family business among his three sons in 1979. Rama, the eldest, inherited Philips Carbon Black, Asian Cables, Agarpara Jute, and Murphy India—businesses with a combined turnover of ₹75 crore. From this springboard, he launched a takeover spree that was as relentless as it was strategic.
If the scale of his achievements was staggering, it was the skill with which he went about the business that commanded respect.
Takeover king’s empire
In 1981, he acquired Ceat Tyres of India (later renamed as Ceat Ltd), a subsidiary of Italy’s Ceat. In the next few years, he bought power engineering firm KEC International, Searle India (now RPG Life Sciences) and tyre-maker Dunlop in partnership with Manu Chhabria. His appetite still not satiated, he picked up a minority stake in Bayer which was later sold off. At this time, he also co-promoted Haldia Petrochemicals with the West Bengal Industrial Development Corporation.
Gramophone Company of India Ltd, (now Saregama India), Fujitsu ICIM, now Zensar Technologies, followed before the 1989 acquisition of CESC, along with Harrisons Malayalam and Spencer & Co in 1992, cemented his growing empire and fortune. By then, RPG Enterprise was a billion-dollar conglomerate.
If the scale of his achievements was staggering, it was the skill with which he went about the business that commanded respect. Not for him the barbarians at the gate approach. Indeed, it’s the one that got away which brings out the personality of the man even if it caused him some subsequent heartbreaks.
That elusive prize was the textile giant, Bombay Dyeing which, in a twist of fate was practically served to him on a silver platter. In 1971, Neville Wadia, yearning for a tranquil life in Switzerland, decided to liquidate his Indian business empire. The crown jewel, Bombay Dyeing, despite some financial turbulence, was suddenly up for grabs. Goenka, still early in his deal-making career, smelt opportunity and was the first to leap. A sale agreement was swiftly signed – Bombay Dyeing was, for a fleeting moment, his.
But then came the twist in the plot. Neville’s 26-year-old son Nusli Wadia, who refused to live as a “second-class citizen in some European country”, wasn’t about to let his father sell off their legacy.
Faced with his son’s unyielding resolve, Neville Wadia had no choice but to backtrack. He approached Goenka to undo the sale. Any tough negotiator would have refused or at least extracted a heavy price. Not Goenka who was something of a romantic.
As Gita Piramal recounts in a piece for Open magazine, he told Neville “If you offer me a drink, I’m prepared to cancel the deal.” The relieved Wadia rushed off to get the finest bottle of Royal Salute. Goenka did say later that he had been an “idiot” since there was “no room for emotions in business.”
Just like that, with the clinking of glasses, a multi-million-rupee deal evaporated and Bombay Dyeing remained with the Wadias. Goenka was forever left with the regret of what might have been.
But Rama Babu, as he was always called, had other fish to fry than dwell on this one setback.
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More than a businessman
Beyond the boardroom, he was a Kolkata icon. Dressed usually in crisp silk kurtas and pleated bengali dhotis, he was a warm host who delighted in sharing his chef’s creations and was an enthusiastic patron of the city’s Durga Puja festivities. His annual yagna at his Alipore home reflected his deep Hindu faith, while his eclectic reading betrayed a restless, curious mind.
Honours piled up: a Rajya Sabha nomination, Trusteeships with the Jawaharlal Nehru Memorial Fund, Indira Gandhi Memorial Trust, and Rajiv Gandhi Foundation, and leadership roles chairing Ficci and IIT Kharagpur. A lifelong Congress loyalist, he was as comfortable with Nehru’s ideals as he was with balance sheets.
Rama Prasad Goenka’s legacy isn’t just in the companies he acquired but in the audacity and grace with which he played the game. This was a titan who conquered with a smile and a handshake, forever chasing the next deal.
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