Tarachand Ghanshyamdas

Last updated

Tarachand Ghanshyamdas was a famous Marwari trading firm that flourished from 1791 to 1957. [1] It is believed to have been responsible to introducing many of now famous Marwari clans from Shekhawati to national and international business field. [2] The grandfathers of both G.D. Birla and Lakshmi Mittal worked for great Tarachand Ghanshyamdas while grandfather of Raja Baldeo Das Birla worked at the great Ganeriwala Firm [3] [4]

Contents

Tarachand Ghanshyamdas in 1870, had offices at Kolkata, Mumbai, Amritsar, the Malwa opium belt of Madhya Pradesh and elsewhere. Another great Marwari firm Sevaram Ramrikhdas, employed the RPG Group patriarch, Rama Prasad Goenka's grandfather's great-grandfather, Ramdutt. The division division of Sevaram Ramrikhdas resulted in independent branches of that family at Kanpur, Mirzapur, Farrukhabad and Kolkata; the Singhanias are descendants of the Kanpur branch. [5]

Rise

The firm initially dealt in woolen garments. In the early 19th century many Marwari merchants settled in Calcutta. Opium soon became a major commodity. The records of "Sevaram Ramrikhdas", a Marwari firm based out of Mirzapur in 1830s show opium to have been their major commodity. Tarachand Ghanshyamdas had several branches in the opium tracts of Malwa. Opium sales were Legalized in Hong Kong in 1845 after the British defeated China in the First Opium War. The opium trade was expanded after the Second Opium War in 1860. Calcutta became an important market for opium trading after auctions in Bombay were discontinued in 1830s. [6]

The Poddar family originally hails from Churu in the Shekhawati region of Rajasthan. Around the year 1791 CE, when the local ruler (thakur) of Churu imposed very heavy taxes on the wool trade, a group of Marwadi tradesmen, including ancestors of the Poddar family, left Churu and moved into the domain of neighbouring Raja of Sikar. They created a settlement there and named the village Ramgarh.

The founder or earliest known patriarch of the Poddar family was Bugotee Ram (Bhagwati Ram). He became the treasurer of the nawab of Fatehpur, Rajasthan, a large local landowner. [7] The local term in that region for Treasurer was "Fotedar" or "purse-man". That term mutated first into "pothdar" and then "poddar", and this is the origin of the name by which the family is known.

The Nawab of Fatehpur, although important within his immediate region, ranked far beneath the rulers of the great Rajasthani states such as Jaipur, Jodhpur, Bikaner or Udaipur. Nevertheless, the position of treasurer was one of prestige, and conferred upon men whose personal wealth is so vast that they can bankroll the Nawab's estate on credit. Bugotee Ram must have been both extremely wealthy and good at his job, for he also became a trusted banker to the royal families of Jaipur, Bikaner, and even distant Hyderabad. Bugotee/Bhagwati Ram's son, Chaterbhuj, help a saint Yati. The Yati inspired him to go to Bhatinda in Punjab where, he was told, his business would prosper. [8] Chaturbhuj duly went and resided in Bhatinda for many years, and also extended his business by opening branches in Amritsar and Hissar.[ citation needed ]

Until this time, the family kept to their traditional businesses of money-lending and commodity trade, mainly in cotton and grain. It was Chaterbhuj's son, Tarachand, who added the extremely lucrative trade in opium to the family business portfolio. Indeed, it was the opium trade which was the true source of enrichment for the Poddar family, and which magnified their wealth manifold. Their role in the trade was to source poppy/opium from the hinterland and supply the same to Parsi tradesmen who plied the China trade, and to Parsi-owned opium units in Ahmedabad and Surat. [9] Tarachand's son, Ghanshyamdas, was the founder of the trading firm 'Tarachand Ghanshyamdas.'[ citation needed ]

Tarachand Ghanshyamdas was the greatest Marwari firm during 1860s and 1914 when it rivalled British companies in size. [10] They took deposits, gave loans, engaged in the wholesale trade, transferred money for clients to distant cities, cashed bills of trade, insured shipments, as well as speculated on commodity futures. [11]

Dissolution

After the dissolution of Tarachand Ghanshyamdas, the three brothers Bimal Kumar Poddar (were adopted by his maternal grandfather Janki Prasad Poddar, a partner of Tarachand Ghanshyamdas [12] ), Suresh Neotia and Vinod Neotia set up Radhakrishna Bimalkumar in the mid '50s. Shrikumar Poddar another descendant of Tarachand Ghanshyamdas set up the successful Poddar Group ventures in the Americas and Europe. [13] As a leading agent of Burma Shell in India it operated several branches across UP, Bihar and West Bengal. [14]

The "Great" Firm model

T. Timberg considers Tarachand Ghanshyamdas to be a good example of a "Great" Firm. [15] He suggests the following challenges to the existence of the great firm: [16]

The model has been used to explain the decline of the Mughal empire. [17]

Related Research Articles

<span class="mw-page-title-main">G. D. Birla</span> Indian businessman

Ghanshyam Das Birla was an Indian businessman and member of the Birla Family.

The Birla family is a family connected with the industrial and social history of India.

<span class="mw-page-title-main">Marwari people</span> Ethnic group from Rajasthan, India

The Marwari or Marwadi are an Indian ethnic group that originate from the Marwar region of Rajasthan, India. Their language, also called Marwari, comes under the umbrella of Rajasthani languages, which is part of the Western Zone of Indo-Aryan languages.

<span class="mw-page-title-main">Shekhawati</span> Region in Rajasthan, India

Shekhawati is a semi-arid historical region located in the northeast part of Rajasthan, India. The region was ruled by Shekhawat Rajputs. Shekhawati is located in North Rajasthan, comprising the districts of Neem Ka Thana, Jhunjhunu, Sikar that lies to the west of the Aravalis and Churu. It is bounded on the northwest by the Jangladesh region, on the northeast by Haryana, on the east by Mewat, on the southeast by Dhundhar, on the south by Ajmer, and on the southwest by the Marwar region. Its area is 13,784 square kilometers.

Fatehpur is a city in the Sikar district of Indian state Rajasthan. It is part of the Shekhawati region. It is midway between Sikar city and Bikaner on National Highway 52. It is also the land to Havelis built by Marwari Seth's. It also has many Kuldevi Temples of the Agarwal community for Bajoria,Bindal, Saraf, Chamadia, Choudhary, Goenka, Lohia, Singhania, Saraogi, Bhartia Families. It is famous for its extreme weather conditions throughout the year. In winters, the minimum temperature falls below 0 °C at night for many days making it the coldest town in India in non mountainous region. In summer the temperature rises to 50 °C in the afternoon making it one of the hottest places in India. 1985 Bollywood film Ghulami starting Dharmendra, Naseeruddin Shah, Mithun Chakraborty and Smita Patil was extensively shot here in many of its havelis and the railway station.

Nawalgarh is a heritage city in Jhunjhunu district of Indian state of Rajasthan. It is part of the Shekhawati region and is midway between Jhunjhunu and Sikar. It is 31.5 km from Sikar and 39.2 km from Jhunjhunu. Nawalgarh is famous for its fresco and havelis and considered as Golden City of Rajasthan. It is also the motherland of some great business families of India.

<span class="mw-page-title-main">Chhatri</span> Elevated, dome-shaped pavilions in Indian architecture

Chhatri are semi-open, elevated, dome-shaped pavilions used as an element in Indo-Islamic architecture and Indian architecture. They are most commonly square, octagonal, and round. Originating as a canopy above tombs, they largely serve as decorative elements as opposed to functional elements. The earliest examples of chhatri being used in the Indian Subcontinent were found in the Shrine of Ibrahim in Bhadreswar, constructed between 1159 and 1175 AD.

<span class="mw-page-title-main">Marwar</span> Region in Rajasthan, India

Marwar is a region of western Rajasthan state in North Western India. It lies partly in the Thar Desert. The word 'maru' is Sanskrit for desert. According to the Rajasthani languages, In “Marwad” word “wad” means “defense” and “Maru” means “desert“, so the meaning of “marwad” is, “A country protected by desert“.

<span class="mw-page-title-main">Loharu</span> City in Haryana, India

Loharu is a city, municipal committee and assembly constituency, near Bhiwani City in the Bhiwani district of the Indian state of Haryana. It is the administrative headquarters of one of the four administrative sub-divisions of the district and covers 119 villages. It is also a railway junction station.

Rajgarh, is a city, municipality, tehsil and Legislative Assembly seat in Churu district of northern part of Rajasthan state in India. It lies in Shekhawati region at an elevation of 239 metres (784 ft). To distinguish Rajgarh from several other places with same name, Sadulpur has become a synonym of Rajgarh town's name in recent times.

<span class="mw-page-title-main">Ganeriwals</span>

Ganeriwala family are a Marwari family, connected with the financial, social and cultural history of Rajasthan. Through the 19th and early 20th century, members of the family were financiers and money lenders in the princely state, and they served as treasurers for the royal families of the state. A common trait among the traditional banking families of Rajasthan, members of the Ganeriwala family have been credited for the construction of various Hindu temples and haveli’s in Rajasthan.

<span class="mw-page-title-main">Hanuman Prasad Poddar</span> An introduction of A Great Indian Grihasth (Married) Saint, popularly known as Bhaiji

Hanuman Prasad Poddar (1892–1971) was an Indian independence activist, littérateur, magazine editor and philanthropist. He was the founding editor of the spiritual magazine, Kalyan which was published by Gita Press setup by Ghanshyam Jalan and Jay Dayal ji Goeyendka. His work in fostering pride among the people regarding India's history and philosophic tradition earned him praise from Mahatma Gandhi. He was affectionally called "Bhai Ji" or "Lovingly Brother". The Government of India issued a postage stamp in his memory in 1992.

The J. K. Organisation is an Indian industrial conglomerate, with headquarters in Delhi, Kanpur and Mumbai. It is run by the Singhania family, which rose to prominence in Kanpur, India, under Lala Kamlapat Singhania. The name JK is derived from the initials of Kamlapat and his father Seth Juggilal (1857–1922), who belonged to the family associated with the Marwari firm Sevaram Ramrikhdas of Mirzapur. The JK Group was founded in 1918.

<i>Beend Banoongaa Ghodi Chadhunga</i> Indian TV series or programme

Beend Banoongaa Ghodi Chadhunga is an Indian television series which aired on Imagine TV from 28 March 2011 to 24 February 2012. It is based on the story of two people who get caught up in the web of strong traditions. The show is set in Jaipur.

<span class="mw-page-title-main">Maheshwari</span> Hindu caste in India

Maheshwari, also spelled Maheshvari, is a Hindu caste of India, originally from what is now the state of Rajasthan. Their traditional occupation is that of commerce and as such they form part of the wider Bania occupation-based community that also includes castes such as the Khandelwals, Oswals and Agrawals, Gahois.

<span class="mw-page-title-main">Shekhawati painting</span>

The region of Shekhawati in Rajasthan is remarkable for its wealth of mural paintings which adorn the walls of many buildings, including havelis.

Suresh Kumar Neotia was an Indian industrialist, entrepreneur, art collector, philanthropist and the co-founder of Ambuja Cements and associated companies. He was the chairman of the Group till 2009 when he relinquished the position in favor of his co-founder, Narotam Sekhsaria, and remained as the Chairman Emeritus of the Group until his death. He was a recipient of Harvard Business School - Economic Times Award and was involved in many social activities which included the promotion of cultural organizations such as Anamika Kala Sangam and Padatik. The Government of India awarded him the third highest civilian honour of the Padma Bhushan, in 2008, for his contributions to trade and industry.

Seth Ramnarain Ruia was an Indian businessperson. He is also referred as the Cotton King.

Raja Gokuldas MalpaniRB was a Marwari millionaire from Jabalpur during colonial rule in India. He was the wealthiest banker in the Central Provinces of British India. Born into a prominent family of Marwari bankers in Jabalpur, his banking firm was one of the "great Marwari firms" as termed by T.A. Timberg.

References

  1. ↑ Industrial Entrepreneurship of Shekhawati Marwaris, D. K. Taknet, Kumar Prakashan, Jaipur, 1987 p. 76–80.
  2. ↑ What’s caste got to do with business? Vivek Kaul, DNA, 23 August 2008.
  3. ↑ The Marwari business model-I, HARISH DAMODARAN, The Hindu Businessline, 7 April 2013.
  4. ↑ Timberg, Thomas A. (22 May 2015). The Marwaris: From Jagat Seth to the Birlas. Penguin UK. ISBN   9789351187134.
  5. ↑ The Marwari business model-I, HARISH DAMODARAN, The Hindu Businessline, 7 April 2013.
  6. ↑ Marwari Identity: Tracing Its Origin, OCCUPATIONS - Commodities Trading & Speculation - Opium, Nikunj, 1 September 2013
  7. ↑ Popular Literature and Pre-modern Societies in South Asia, Surinder Singh, I. D. Gaur, Pearson Education India, 2008, p. 71
  8. ↑ [Poddarji ka Gharana aur Poddarji, Jhavarmall Sharma, in Poddar Abhinandan Granth, Ed. Vasudevsharan Agrawal, Mathura Sam. 2010 (1953), Akhil Bharatiya Braj Sahitya Mandal, p. 10]
  9. ↑ Prakash Narain Agarwala, Vikas Publishing House Private, Limited, 1985, pp. 216, 225, 226
  10. ↑ The desert breeding ground of India’s billionaires, Richard Orange, The Spectator, 5 September 2007
  11. ↑ The Oxford Companion to Economics in India, Edited by Kaushik Basu, Pages 141 - 145, Oxford University Press, New Delhi, 2007
  12. ↑ Cement industry doyen Suresh Neotia passes away, Ritwik Mukherjee 8 May 2015
  13. ↑ Arati Sharma, VIVA Institute of Management and Research
  14. ↑ Ambuja Neotia, History of the Group Archived 2016-06-20 at the Wayback Machine
  15. ↑ A Study of a "Great" Marwari Firm: 1860-1914, TA Tillberg, Indian Economic & Social History Review July 1971 8: 264–283
  16. ↑ Decoding the Marwari model of business success, Dibeyendu Ganguly, ET Bureau, 14 Nov 2014
  17. ↑ The 'Great Firm' Theory of the Decline of the Mughal Empire, Karen Leonard, Comparative Studies in Society and History, Vol. 21, No. 2 (Apr., 1979), pp. 151–167
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.