He grew an empire around $750 through lending to low-income people who are shunned in banks. He donated a large portion of his wealth to a few of employees.
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The conglomerate, which has a an international presence employs 108,000 employees across a range of industries, from stockbroking to insurance.
The stock of the main firm set a new record in July, after a jump of nearly 35 percent this year, which is four times more than the benchmark index of stocks.
Business Empire
He built an empire of $750 through lending to low-income people who are shunned by banks. He gave away the bulk of his fortune to a handful of employees. He lives in a tiny house and owns a vehicle valued at $5,000, and has no mobile phone.
R. Thyagarajan
R Thyagarajan is arguably one of the world's most unique financiers. He has developed a multibillion dollar business called known as the Shriram Group, which is the first to extend credit to the poor in India for tractors, trucks and various other vehicles.
Conglomerate
The conglomerate, with an international presence employs a total of 108,000 workers working in a variety of fields, including insurance and stockbroking.
The shares of the flagship company hit record heights in July after climbing over 35 percent this year, which is four times more than the benchmark index of India according to a Bloomberg report.
The 86-year-old Thyagarajan is now in an advisory position within the company at present and has stated in an interview to Bloomberg News that he entered the business to show that the possibility of lending to those with no previous credit history or regular income isn't as risky as believed to be.
He says there's nothing unique in his business approach and his decision to sell the stake in Shriram which is now worth over $750 million.
RT who is known within the southern Indian town of Chennai in which he established this group back in the year 1974. declared,
"I'm a bit of a leftist. I've never believed in making life better for people who have a great life. Instead, I was looking to eliminate some annoyance from the lives of people who are having problems."
Thyagarajan's personal life, work and many other specifics
For someone who was raised with servants in an extremely wealthy farm family from the State of Tamil Nadu, forging a socialism-inspired lender might be unorthodox career choices. However, Thyagarajan stated that he's always had an analytical and egalitarian mindset according to Bloomberg report.
Education
He was a mathematician at the master's and undergraduate levels in Chennai prior to spending an entire three-year period at the highly regarded Indian Statistical Institute in Kolkata.
First jobs and a journey of Entrepreneurship
In 1961 He joined New India Assurance Co. one of India's biggest insurers. He began a job in the finance industry as an employee for two years. This included periods in Vysya Bank, a regional lender, as well as JB Boda & Co. Reinsurance broker.
At the same time, people from Chennai would come to him to purchase used vehicles, and he offered them loans from his estate. As time went on, this side business became his main objective and, at 37, he started Shriram Chits in partnership with family and friends.
In the course of time Thyagarajan also set up additional companies as well, and Shriram became an organization of more than 30 businesses.
In the case of truck financing, Thyagarajan noticed that the pay rate was very high, at 80 percent because banks would not accept the trucks. Thyagarajan concluded the general notion was not true.
"People used to think that because the interest rates were very high, lending was very risky. I realized it was not risky at all," the economist stated while speaking with Bloomberg.
As per Bloomberg News, Thyagarajan said that he has always was an analytical and egalitarian mind.
Shriram Finance Ltd., the company's flagship company, has a market capitalization of approximately $8.5 billion. It made around $200 million in profit during the period that ended in June.
Thyagarajan is one of the people who lives in the mass
Shriram's employees say that the key element that makes the system fair for the company is Thyagarajan's personal determination to live in the crowd. He drove for a long time in an Hyundai hatchback. He doesn't have an iPhone as he sees it as distracting.
Shriram Ownership Trust
The Indian billionaire gave away all of his shares in Shriram businesses to a few of employees. He then transferred these shares to Shriram Ownership Trust. Shriram Ownership Trust, which was created in the year the year 2006.
The trust's perpetual trust includes 44 executives from the group as beneficiaries. Executives quit at the time they retire, and take millions of dollars with them.
Trust's Holdings Surge to Over $750 Million
The worth of the trust's holdings exceeds $750 million, and has increased several times in recent years, those who are familiar with the situation claimed, requesting not to be identified since the information is confidential as per Bloomberg.
R Thyagarajan's Bloomberg Interview
In an interview with Bloomberg the business publication, he stated that his only regret isn't that the money he earned was given to charity, but the way the process went.
If he had known how lucrative Shriram will become and how much its company's stock would increase it would have been more generous with the profits.
"I did not imagine that so much money was going to be distributed to so few. I'm not very happy about it. But it's OK. I'm not very sad either," Thyagarajan said.
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