Meet Ramamurthy Thyagarajan: The founder of Rs 1.5 lakh crore Shriram Group who still drives Rs 6 lakh car and has no mobile phone

Ramamurthy Thyagarajan, the brilliant mind behind Shriram Group, is a respected figure in the business world. Despite building an empire worth Rs 1,50,000 crore, Ramamurthy Thyagarajan leads a life of simplicity, making his success story stand out among other billionaires.

A Humble Lifestyle Despite Massive Wealth

What makes Ramamurthy Thyagarajan's success story unique is his refusal to indulge in luxury. While many with his level of wealth live extravagant lives, he chooses to live modestly. He lives in a simple house, drives a Rs 6 lakh car, and does not own a mobile phone, which he considers a distraction. His wealth stems from providing financial services to low-income borrowers who are often neglected by traditional banks, a business model that made him successful while staying grounded.

Ramamurthy Thyagarajan’s Early Career

Credit: Forbes India

Born into a farming family in Tamil Nadu, R Thyagarajan’s journey began with a strong academic foundation. He studied mathematics in Chennai and then spent three years at the prestigious Indian Statistical Institute in Kolkata. In 1961, he started his career at New India Assurance Co., one of India’s largest insurers. Over the next two decades, he gained experience in finance, working at Vysya Bank and JB Boda & Co., where he learned the ropes of the financial industry.

How Shriram Group Was Founded

Thyagarajan's career took a turn when he noticed that people often approached him for loans to buy trucks. He realised that traditional banks were reluctant to lend to lower-income individuals, particularly young truck drivers and small business owners. Seeing this gap in the market, he decided to take action. At the age of 37, he founded Shriram Chits with AVS Raja and T Jayaraman.

The focus of Shriram Chits was to provide loans for commercial vehicles, which was a game-changer for underserved communities. This idea formed the foundation for Shriram Group’s success, which today serves around 11 million clients through its 3600 branches, over 70000 employees and 140000 agents with an AUM of over Rs 150,000 crores, according to the website, Shriram Group.`

The Growth and Success of Shriram Group

Under Ramamurthy Thyagarajan’s leadership, Shriram Group grew into a vast conglomerate comprising over 30 companies. As of August 2023, the group was valued at over $750 million, with its flagship company, Shriram Finance Limited, valued at around $8.5 billion, reported in ET.

One of the most notable aspects of Ramamurthy Thyagarajan’s success is his generosity. In 2006, he transferred his shareholdings in Shriram companies to employees through the Shriram Ownership Trust. This act of philanthropy demonstrated his belief in sharing the company’s success with those who contributed to its growth.

A Different Approach to Business

Unlike many financial institutions that cater to wealthy clients, Ramamurthy's business model was designed to support people in need. Shriram Group does not rely on credit scores; instead, it depends on recommendations from existing customers. This approach helped build trust with clients, particularly those who were often ignored by traditional financial institutions.

Internally, he believed in fair compensation for employees. He maintained that workers should earn enough to live comfortably but discouraged comparisons with others, as this often led to unhappiness. His focus was on creating a work environment that fostered loyalty and satisfaction rather than competition.

A Lasting Legacy

Today, the organisation stands as a major force in the financial sector, and Ramamurthy Thyagarajan’s journey remains an inspiring example of how simplicity, humility, and a commitment to helping others can lead to great success. His career, from humble beginnings to creating a Rs 1,50,000 crore empire, shows that true wealth lies in making a positive impact on people’s lives, rather than living lavishly.

By remaining grounded, Thyagarajan has become a shining example of how one can achieve significant success while staying true to their values. His legacy at Shriram Group and his unique business philosophy will continue to inspire future generations of entrepreneurs.