More JVs, acquisitions, divestments and friendships
Our partnership with Geosource, with their Smith Meters and Crosby valve divisions, was another successful venture. Bill Moore and some colleagues acquired a few divisions of Geosource, including Smith and Crosby through an LBO and formed Moorco.
When Crosby Relief Valves was sold to Tyco, Tyco became our partner. Asco, makers of solenoid valves, a separate division of Emerson Electric were our JV partners. We sold the business back to them.
We also had successful partnerships with PTI Filters, another joint venture partner. When Sensortronics was taken over by Vishay Transducers, Sensortronics Sanmar became Vishay Sanmar. Eventually we exited that business. In the nineties, we merged Kumar’s industrial electronics business with Sanmar Engineering. We started the foundry business to meet our own requirements of castings for valves.
Today, we have come back to the core businesses of Sanmar Engineering in Chennai and Viralimalai. We have added a foundry business overseas to our
domestic effort to acquire one of the largest steel foundry businesses in the world. Our partings with partners have always been friendly. We can always go to our old partners for references. Charles ‘Chuck’ Knight, the CEO of Emerson Electric, was one of the top managers in America when we tied up with Emerson. We were very small compared to them, but within five years, Knight was saying that we were one of their best joint venture partners. He became a personal friend and the friendship continued for many years.
Joint venture philosophy
Our JV philosophy evolved over time, based on our experience with each partner. From the beginning, I was clear that neither partner should take out profits any other way than from dividends. There would be no outsiders in the JV, only the two partners. The JV would be run as an independent venture for its own benefit and not for that of either partner. Being in management, we could have derived benefits, but we stuck to this principle scrupulously. We followed the same rules with each partner. Honesty and transparency are essential features of our approach to joint ventures.
People, our strength
We were lucky in our people. We had some amazing talent. Sesh was a unique person, with his knowledge, hard work and commitment. Chandar was a great commercial and marketing person. Radha (MN Radhakrishnan), another unique personality, joined as a sales manager in 1979, and rose to head Sanmar Engineering. We met almost everyday at Karapakkam. All three were heavy smokers and at the end of the day I had a severe headache after inhaling the fumes in the room all day. Gopinath, Venkataramani, Thiagarajan, Ramesh, Varma, ... I could go on and on—over the years, we had many excellent people who were really responsible for our growth. All in all, an amazing team.
Proud moments
There have been several proud moments. If it was a proud moment to enter into our first partnership with Durametallic, so was it to make profits in the very first year. Each new joint venture was a success to be proud of, with an amazing run of continuous growth that has lasted 35 years, with the period 2008-10, the only exception, when our US venture, Matrix Metals experienced a downturn.
To get Emerson to partner us and for Chuck Knight declare publicly that we were their best partners were proud moments indeed. At the personal level, Sanmar Engineering set my reputation with its terrific track record. People started regarding me well after my successes there. In fact, it has supported the group strongly all these years as its main profit making flagbearer.
One of my proudest moments was a couple of years ago, when I took my father to Viralimalai. Although, he had laid the foundation stone for it 27 years earlier, he had not been back there for many years, and was very happy to see the large Engineering complex we had set up there.
Mentors and supporters
From my father, whose people skills are legendary, I learned the value of openness and honest communication in dealing with people—not only our business associates and partners but also our own people.
At work, my mentor was Mr S Ramaswami, my first and only boss. I learnt a great deal in the four years I worked with him. Another person I remember with great fondness is Paul Jackson—the CEO of Durametallic when I set up the venture. He was older than my father, but became a great friend of mine and gave me complete trust and support.
Actually, the first letter of intent and other approvals for Durametallic were in my brother Kumar’s name. Kumar spent a short period with Durametallic India, and a three-month training programme at Kalamazoo. Though not directly involved after the first couple of years, Kumar has been a tower of strength. I could always count on his unquestioning support.
Lifelong relationships
Our oldest JVs, Durametallic and BS&B, have been our great allies. Paul Jackson, Raymond Battilana, Jim Ware, Clark Hulbert, Tom Haan, Bill Adams, JT Kenneally, Tiffin Kenneally, Rod Huse, Hugh Beveridge, Dr Izzo … the list is long and distinguished. Some of them are no longer alive, but some are joining us at the 35th anniversary commemoration. Their friendships are among our greatest gains.