Arunachalam Vellayan (72 years) belonged to the fourth generation of the Murugappa Group. Having worked his way up, he ended up as chairman of the group in 2009.
The large Murugappa family has been lucky in finding capable family members to run the group among themselves. They attract and hire professionals, but the head of the group is always from the family. It always takes care to choose the family member who is most competent for the job.
Vellayan was more than equipped to head the group with his many qualifications, experience and leadership qualities. During his tenure as chairman, the Group entered a period of rapid expansion and organisational strengthening that helped shape it into one of India’s most respected business conglomerates, says the Times of India.
Known for his calm authority and long-term outlook, Vellayan brought to the Group what many describe as a “strategic lens rare even among business leaders”.
“He had a high level of business acumen and a strong grasp of international developments.”
He did his schooling at Doon School, away from home. When I asked him once why the family sent their children to the North to study, he said it was to make sure the children got proficient in Hindi, as the group had extensive activities in the North. “The problems my father faced when he was the president of FICCI was that all the Marwaris were talking in Hindi and he couldn’t understand. So, early on, he decided that if one had to run a national business, one had to know Hindi,” he says.
Vellayan had a bachelor’s degree in commerce from Shri Ram College of Commerce, in Delhi and a Diploma in Industrial Administration from Aston, UK. “He also received a Master’s in Business Studies from the University of Warwick Business School and a Doctor of Science (Honoris Causa) conferred by Tamil Nadu Agricultural University .
Apart from being the Chairman of the Indian Institute of Management, Kozhikode, he was an Independent Director in Kanoria Chemicals & Industries.
After his earlier training, he worked extensively in the group’s fertiliser business. Later as head of the group he was fully involved in general management, and financial planning. Vellayan excelled in anything he did. He constantly travelled and never thought of the Murugappa group as restricted to the South. He expanded business across the country. Mergers and acquisitions became a key part of the Murugappa Group’s strategy under his leadership. Size was important to him.
Vellayan said in an interview, “If you are big enough, you get a fair share of voice.” He described how they built up the fertiliser business. “By sheer size, we are creating inter-dependence in the economy. As the economy grows, we grow.”
One of the companies he took over in Gujarat, Sabero Organics (2011), became the subject of an insider trading investigation by the Securities and Exchange Board of India (SEBI) in 2015, which led to Vellayan stepping down as chairman. When I met him then he was his normal cool self and was sure that nothing will come out of this accusation. He was proved right. He was totally exonerated and took over as chairman again. Running an ethical business was important to him.
Vellayan played a pivotal role in steering the Group’s growth. Under his leadership, revenues nearly doubled – from Rs. 15,907 crore in 2008-09 to Rs. 30,023 crore in 2016-17 – through a mix of organic expansion and acquisitions. His M&A strategy was focused on acquiring and turning around distressed companies.
For all his success he completely remained low key and never projected himself. Vellayan will be remembered as one of the most respected businessmen of his generation. As the press release from the Murugappa family says “Mr. Vellayan dedicated several decades to the Group, providing strategic direction across its diversified businesses. His vision, integrity, and long-term approach to value-creation helped strengthen and expand the Group, contributing significantly to its reputation as one of India’s most respected conglomerates.”