Rajeev chadrashekar

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Text of Rajeev chadrashekar

  • 1. SWAPNIL HUMNE

2. RAJEEV CHADRASHEKARFORMER CHAIRMAN & CEO,BPL MOBILE 3. BORN IN 31ST MAY1964. BIRTH PLACE AHMEDABAD (GUJARAT). FATHERS NAME AIR COMMONDOREM.K.CHANDRASHEKAR(RTD). MOTHERS NAME VALLICHANDRASHEKAR. MARRIED ON 26TH AUGUST WITH ANJU. HAVING ONE DAUGHTER AND ONE SON. HOBBIES OF FLYING, SQUASH,DRIVING& MUSIC. 4. BE(ELECTRICAL ENGG.)ADVANCED MANAGEMENT PLACEMENTAT MANIPAL INSTITUTE OFTECHNOLOGY MANIPAL(KARNATAKA). MASTER IN COMPUTER SCIENCE FROMILLINOIS INSTITUTE OFTECHNOLOGY,CHICAGO & HARVARDUNIVERSITY, BOSTON (USA). 5. As a senior technology professional in theSilicon Valley at Intel between 1985 and1991, was Senior Design Engineer of the teamthat designed and launched 32 bit 80486microprocessor.Founder Chairman, BPL Mobile, 1994-2005 hefounded BPL Mobile in 1994 and was one of thepioneers to invest in and build the Indiantelecom sector. By 2001 BPL become Indias Largest Operatorwithout his having to go to a single politician orpay a single bribe. 6. He had many offers after he finish his degree, but hechose Intel over Microsoft because of VINODDHAMs influence. In his record he says of meeting he attend whereBILL GATES was another participant and discussionwith LARRY ELLISON in Intel caf. He was one of Intels fastest rising star. In 1980s he met ANJU in BOSTON and decided toget married and took year of absence from Intel cameback to INDIA. 7. COINCIDENCES His Father introduced him to RAJESH PILOT, whomhe had taught to fly. Rajesh took him to meet Rajiv Gandhi. Rajiv Gandhi asked him, Why not come back toIndia and help country for electronic revolution oftwenty-first century? He was having great time in silicon valley. 8. But somewhere in his heart, he knew there is life beyond blues.A life in BANGLORE. 9. When he first got into business in India , in 1991, herejected the software option. In 1990s Mobile Telephony was not big in US. Rajeev found good partners in France Telecom andCraig McCaw. He used his father-in-laws brand name and bid for 1stround of cellular License. In 1994 he got licence and move to Mumbai fromBangalore. 10. He hired 1,000 sqft office in Arcadia at Narimanpoint, borrowed Rs100crore from IDBI. Staffed operation with youngster. Tried to drag India into cellular age. As according to hisplan. In 1996, the telecom minster Sukh Ram announcedanother round of bidding. Telecom minister invited Rajeev. After first meeting Sukh Ram again invited him forsecond meeting, but Rajeev still failed to see the point. 11. Sukh Ram did his little fiddles to benefit HimachalFuturistic. His experience paralleled that of his softwarebillionaire Bangalore buddies. 12. By 2001,BPL mobile was the largest cellular operation inIndia. Rajeev had become poster boy of the telecom revolution-the Intel engineer who came back to India to prepare usfor 21st century. Then he makes mistake to get involved with what wasknown as Batata Conglomerate. Kumar Mangalam Birla, Ratan Tata and AT&T decided tocome together and create a new company would beprofessionally managed and would have no controllingshareholder. 13. By merging BPL with big Batata Rajeev recognizing thathis company would be the single largest shareholder inthe new entity. An MOU was singed Chandrashekar sat back and did notinvest further in business and waited for the newconglomerate to take shape. And take shape it did. Except that BPL was not part of the entity that eventuallybecame Idea. In 2002, the MOU expired and Idea said it had no interestin renewing it. And having a great losses Chandrashekar got disturbed. 14. He said that Im not going to point fingers at anybody. Lets just say the deal didnt work out. 15. The BATATA fiasco marked the end of BPLsnational ambitions. Airtel raced ahead of BPL in the nationalmarketplace. Chandrasekhar was back in news fighting for a verypublic battle for reform of the licensing policy. Few people noticed BPL had missed out completelyon the bidding for the fourth licenses and had no Ideamerger on the cards and BPL would certainly havebid for Delhi. 16. BPL lost his preeminent position in Indian cellularmarket. Even he was losing, he won the bigger battle for thecellular industries. The government agreed to migrate to a profit-sharingarrangement. His success in the battle made him less prepared to faceWLL/CDMA onslaught. When licenses are issued, operators had been assuredthat nobody else would be able to offer cellular service. But Vajpayee govt. turned this rule by declaring thatprivate operators who were offering fixed line servicesalso offer cellular operation. 17. Provided they used CDMA technology rather than theGSM technology favored by the exiting operators. They said CDMA was a new technology. It was muchcheaper than GSM.CDMA phones would be Jantamobiles. It would be available to a common man for a songcompared to the expensive, rich mans GSM phones. These arguments still anger Rajeev. 18. He said-a) GSM chose by Govt. for us and not by us.b) CDMA is not latest technology.c)It is not cheaper than GSM. CDMA are more expensivethan GSM phone.d) Reason it would be cheaper in India was becauseCDMA operators were not being charged the highstartup cost that GSM operators has been subjected to.e)The moral issue is the GSM operators were paying forlicenses to operate cellular services on theunderstanding that the market would be restricted to acertain number of players. 19. Finally, the GSM operators had their day inSupreme court and they win. It was good news for GSM industries but too latefor BPL mobile. 20. While Rajeev was fighting these battles his companywas going to drain and got financial problemsmultiplied. He was default to lenders and creditors lined outsidethe door. Motorola filed a winding up petition arguing that thecompany was in no position to pay his debt. It was the lowest period of Rajeev. Till 2001 his success story was same as any of thesoftware engineer, by 2003 creditors were ready toclose his company. 21. Chandrasekhar threw himself back into the businessto pull BPL mobile out of the hole it had dug itselfinto. 2002-03 no growth had seen. Chandrasekhar determine to do better, in 2003-04growth had been 14% and got 58% in 2004-05. He pulled company back from the brink. But the poster boy of telephony belong to SunilMittal of Airtel. 22. His father-in-law decided to fight Rajeev in court .The Rajeev position as described by the lawyers wasthat BPL mobile was his own business. He paid license fee to his in-laws for BPL brand butthat was all. He refuses to say a word against father-in-law. He decided that he would treat it as a businessproblem not as a family dispute. July 2005 the dispute was settled as a family spirit. 23. He give up the BPL brand. He gave instruction to Morgan Stanley to find a 40%equity partner. June 2005 a good offer came from Ruias of Essar(HUTCH). He decided to end one chapter of his life. It was around $ 1.2 billion. He admitted that Im now a very rich man and verycomfortably off. He had many plans at that time , looking forinvestments in IT sector. 24. He was just 40s he has still life in front of him. His story demonstrated that the middle class techiesmay do well with foreign customers but are screwedover much too easily by the experienced baniabusinesses. His career had two phases as we look what happenedafter2001. He got license in 1991 and in 2001 the BPL companybecomes Indias largest company without going tosingle politician or pay a single bribe. 25. He makes a valid point :If we had offered bribe of x, they would have offered a bribe of 4x. We couldnt have bought our way out of this one . We had no choice but to fight.RAJEEV CHANDRASEKHARS fighting days are over now he went on easy food and of course the VODKA, find more time for Lamborghini . He says he is relieved.