Post-2014 era of the Indian economy was booming with a fascinating underdog story of ADANI GROUP – a first-generation Indian entrepreneur making it to the top three of the world’s richest list. A story which has now come to a chapter filled with turmoil due to an international research firm Hindenburg’s report disclosing the ways and means in which Adani Group’s wealth is accumulated, where everyone who mattered in running the Indian economy, including regulators, policymakers, operators, official watch dogs are in hand and gloves to justify that end justifies the means.
Indian economy’s history is filled with case studies that have concluded on either side of the ile.
In the 2000’s India, we also have a case study of Satyam’s Ramlingaya Raju and Kingfisher’s Vijay Mallya where they could not defend themselves against the allegations, charges and media trials against them, and they perished finally.
In Pre 2014 era, when the economy was showing some gloomy signs of growth, we witnessed daring family business entrepreneurs like Kishore Biyani and Vijay Mallya who had borrowed heavily for working capital requirements to fund their mammoth ambitions by hypothecating their intangible assets like “brand equity” & “logo” had faced similar rough patch when the economy was sluggish, unstable and with no certain sign of recovery during the year 2010 era, both these companies suffered so very badly. Future Group company had already sold its equity in bits and pieces, and it’s painful to see a similar happening with the absconding poster boy family entrepreneur Vijay Mallya who had also put various of his companies on sale in bits and pieces.
Then came the iconic Indian economic case study of creators of very successful International brands, which made them poster boy entrepreneurs out of family-owned enterprises, i.e. Neerav Modi, Mehul Chowksi, and Vikram Kothari who were just reflections from the tip of the iceberg of this latent economic phenomenon which is bringing bad fame to Indian family-owned enterprises fraternity at large.
Hence proves why this ‘Principle Of Borrowed Richness’ is not taught in any of our Business Schools. These examples reaffirm what our elders have taught us about managing ‘Business with Ethics’ – when you borrow, consider it as a liability and not as borrowed richness.
