Personal chemistry sealed Piramal’s investment in Shriram
When Ajay Piramal decided to invest in the Shriram group in 2010-11, it was not a smooth process; there was, in fact, even a decision not to go ahead with the deal. Piramal then couldn’t have imagined himself taking over as chairman of Shriram’s finance business and, eventually, a possible merger with IDFC Bank. In the event, Piramal invested over ~4,400 crore in Shriram Capital, holding company of Shriram City Union and Shriram Transport Finance.
The Shriram group’s founder, R Thyagarajan, released a book — “I am not an entrepreneur”: The R. Thyagarajan Story — in November 2016 recalling his journey, which quoted Piramal as saying till an investment banker told him the Shriram group was worth investing in he had not known much about Thyagarajan.
After a meeting with Thyagarajan, whom Piramal describes as a simple and straightforward man, he was convinced this was a man one could do business with. Piramal also came in at a time when Thyagarajan was considering what would happen to the group after him.
Thyagarajan says he felt he did not have a set of people who could take the group on the next leg of its journey, so when the opportunity came, and knowing Piramal’s dynamic leadership, he thought it would be good for the group if he came on board.
For Piramal, the deal was special for a different reason. The Piramal group wanted to enter the financial services space and Shriram was one of the best names that came up.