Biography of Grandhi Mallikarjuna Rao: Founder & Chairman of GRM Group -Industrialist
Biography of Grandhi Mallikarjuna Rao:
Early Years: A Foundation of Ambition
Grandhi Mallikarjuna Rao was born on July 14, 1950, in
Rajam, a town nestled in the serene district of Srikakulam, Andhra Pradesh,
India. Raised in an upper-middle-class family, his early life was shaped by the
modest yet enterprising spirit of his parents. His father's ventures in
commodities trading and a small-scale jewelry business in Rajam instilled in
young Mallikarjuna a deep-seated respect for entrepreneurship and enterprise.
Early Insights and Beginnings
Following the passing of his father, Grandhi Mallikarjuna
Rao transitioned from his family's businesses in Srikakulam to work briefly at
A P Paper Mills in Rajahmundry. It was here that he absorbed valuable lessons
from a seasoned Marwari businessman, gaining insights into managing diverse
stakeholders, a skill that would prove instrumental in his future ventures.
Building Foundations: Learning and Growth
Rao further honed his skills in infrastructure development
during his tenure as an executive engineer on the Vamsadhara Project with the
state's Public Works Department. His dual experiences in both private and
government sectors provided a comprehensive understanding of operational
dynamics and strategic planning.
The Journey Begins: From Engineer to Visionary
Upon completing his education at Andhra University, Rao
embarked on his professional journey. He initially joined a paper mill, where
he honed his skills as a shift engineer. Later, his career path led him to the
Public Works Department of the Andhra Pradesh Government, where he served as a
junior engineer. These formative experiences not only equipped him with
technical expertise but also ignited a burgeoning ambition to contribute
significantly to India's infrastructure landscape.
Venturing Solo: The Entrepreneurial Leap
Armed with knowledge and ambition, Rao ventured into
entrepreneurship by starting his own venture manufacturing cotton ear buds.
Concurrently, he divested from ventures like a brewery partnership with Shaw
Wallace and a small insurance business, setting the stage for larger ventures
ahead.
Founding GMR Group: Building a Legacy
In 1978, fueled by a fervent desire to create a lasting
impact, Grandhi Mallikarjuna Rao took a leap of faith and founded GMR Group.
What began as a humble endeavor has since burgeoned into a global powerhouse in
infrastructure development and operation. With a presence spanning seven
countries, GMR Group has earned renown for its contributions to vital sectors
such as energy, highways, urban development, and airports. Rao's visionary
leadership has been instrumental in crafting and executing projects that
elevate national assets to world-class standards.
Seizing Opportunities: The Hyderabad Airport Bid
In a pivotal moment in 1991, Rao secured the bid for the
Hyderabad airport, outshining competitors like L&T. Recognizing the
enormity of the project, he sought guidance from international experts in
airport construction and management from Germany, Singapore, and Malaysia. This
proactive approach underscored his commitment to quality and excellence.
GM Rao: From Commodities Trader to Infrastructure Leader
Early Ventures in Commodities Trading
GM Rao's entrepreneurial journey began with commodities
trading, driven by his mother's encouragement. Establishing strong
relationships with suppliers and customers, Rao swiftly expanded his influence
in the industry.
Biography of Grandhi Mallikarjuna Rao: Founder & Chairman of GRM Group/ energy, highways, large urban development & airports sector/journey of GRM Group
Entry into Manufacturing and Banking
Capitalizing on his success, Rao acquired a struggling jute
mill at an advantageous price, turning it into a profitable venture. This success
allowed him to leverage local bank support for further acquisitions across
diverse sectors. Eventually, Rao ventured into banking by co-founding Vysya
Bank in collaboration with ING, further diversifying his business portfolio.
Expansion into Power and Infrastructure
Rao strategically sold his stake in ING Vysya for 340
crores, enabling him to enter the power sector. This move paved the way for GM
Rao to establish GMR Group, a prominent infrastructure asset developer in
India. With a strong foothold in the market, GMR Group emerged as a leader in
airport development, surpassing competitors like GVK in terms of revenues,
asset size, and market capitalization.
Government Appointment and Impact
In recognition of his leadership and vision, GM Rao was appointed
Chairman of the Andhra Pradesh Skill Development Corporation in 2014. Under his
stewardship, the government embarked on a ₹700 crore initiative to skill
approximately two crore people over a decade, demonstrating Rao's commitment to
enhancing human capital and fostering economic growth.
Establishing GMR Group as a Leading Brand
Over four decades, GM Rao transformed GMR Group into one of
India's most esteemed brands. The group is now renowned for its diversified
portfolio and professional management, specializing in airports, energy,
highways, and urban infrastructure, including SEZs. Despite entering new
sectors, GMR Group rapidly scaled up, delivering world-class infrastructure
assets.
Driving Innovation: Projects and Milestones
GMR Group has significantly contributed to India's
infrastructure landscape with achievements such as greenfield power plants in
Tamil Nadu, Karnataka, and Andhra Pradesh, and the modernization of Delhi International
Airport's Terminal 3. Internationally, the group has established airports in
Hyderabad, Istanbul, and Maldives, setting benchmarks in airport management and
operations.
Vision for the Future
Grandhi Mallikarjuna Rao envisions GMR Group as a perpetual
institution that creates entrepreneurial organizations dedicated to societal
impact and value creation. His steadfast commitment to excellence and
sustainable growth continues to propel GMR Group to new heights, solidifying
its reputation as a leader in infrastructure development.
Institution Building and Values
GM Rao prioritized institution building within GMR Group,
emphasizing the pillars of People, Process, Governance, and Technology. The
group's vision emphasizes creating entrepreneurial organizations that
contribute positively to society through value creation. Seven core Values
& Beliefs define GMR Group's organizational culture, reflecting Rao's
commitment to excellence and ethical business practices.
Integration of Family and Business Values
Rao believes in integrating family and business principles,
stating that strong family governance ensures robust corporate governance.
Early on, he emphasized ESG (Environment, Social, Governance) factors across
all infrastructure assets, underscoring sustainability and responsible business
practices.
Diversification into Commodities Trading: A Turning Point
Driven by his mother's encouragement, GM Rao ventured into
commodities trading. Through adept relationship-building with suppliers and
customers, he seized an opportunity to acquire a struggling jute mill at a
favorable price. This strategic move marked the beginning of his expansion into
diverse sectors.
Expansion and Diversification: Acquiring Assets
Bolstered by the success of his initial ventures, GM Rao
continued to expand his business portfolio. He strategically acquired
additional assets, leveraging his growing expertise and network in the
industry.
Venturing into Banking: The Birth of Vysya Bank
GM Rao's entrepreneurial spirit led him to establish Vysya
Bank, a significant milestone in his career. By successfully nurturing and
developing the bank, he demonstrated his prowess not only in business but also
in financial services.
Success in Strategic Investments: A Profitable Journey
With astute investment decisions, GM Rao achieved
substantial returns from his stake in NG Vysya, earning an impressive Rs 340
crores. His ability to identify opportunities and maximize returns underscored
his reputation as a savvy investor.
Beyond Business: Sporting Ventures
Beyond his corporate endeavors, GM Rao holds a prominent
stake in the Indian Premier League cricket team Delhi Capitals. This
involvement reflects his diverse interests and commitment to supporting sports
and entertainment ventures.
GM Rao: Entrepreneurship and Philanthropy
Entrepreneurial Recognition
GM Rao, the Chairman of GMR Group, was honored with the
Economic Times Entrepreneur of the Year Award in 2007, acknowledging his
exceptional leadership and contributions to the business landscape.
Philanthropic Endeavors
GM Rao's commitment to philanthropy is profound through GMR
Varalakshmi Foundation (GMRVF), the CSR arm of GMR Group. Established to uplift
underserved communities across 22 locations, the foundation focuses on
enhancing social infrastructure and improving the quality of life. In 2012
alone, GM Rao donated ₹1,540 crores towards charitable causes, inspired by the
philanthropic philosophy of Warren Buffett.
GMR Varalakshmi Foundation
GMR Varalakshmi Foundation operates as a non-profit
organization under Section 25, with dedicated staff and governance overseen by
GM Rao himself. The foundation's initiatives reflect GMR Group's commitment to
corporate social responsibility and its impact on community development.
Conclusion: Pioneering Excellence
Grandhi Mallikarjuna Rao's journey from a small town in
Andhra Pradesh to the helm of a multinational conglomerate exemplifies the
power of determination and foresight. His unwavering commitment to innovation
and quality has not only transformed GMR Group into a symbol of excellence but
has also left an indelible mark on India's infrastructure landscape. As Rao
continues to steer GMR Group towards new horizons, his story stands as a
testament to the limitless possibilities that arise from daring to dream and
persevering in pursuit of those dreams.
A timeline summarizing the story of Grandhi Mallikarjuna
Rao:
1950: Born on July 14 in Rajam, Andhra Pradesh, India.
Early 1970s: Begins his career at A P Paper Mills in
Rajahmundry, gaining early business insights.
1978: Establishes GMR Group, starting with ventures in
manufacturing cotton ear buds.
1991: Wins bid to develop Hyderabad airport, marking GMR
Group's entry into infrastructure.
1996: GMR Group expands into power sector with greenfield
projects in Tamil Nadu, Karnataka, and Andhra Pradesh.
2004: Completes modernization of Delhi International
Airport's Terminal 1, showcasing expertise in airport infrastructure.
2007: Acquires Istanbul Sabiha Gökçen International Airport,
GMR Group's first international airport venture.
2012: Launches GMR Varalakshmi Foundation for community
development and philanthropy.
2014: Appointed Chairman of the Andhra Pradesh Skill
Development Corporation, focusing on skill enhancement initiatives.
2017: Expands GMR Group's footprint with development
projects in the Maldives, highlighting international growth.
2020: Continues to lead GMR Group as a prominent player in India's
infrastructure landscape, emphasizing sustainable development and innovation.
This timeline outlines the pivotal moments and expansions
that define Grandhi Mallikarjuna Rao's entrepreneurial journey and the growth
trajectory of GMR Group in India and internationally.
