The forebears of G.D. Birla belonged to Maheshwari community that is also known as Marwaris. It was a brotherhood group. An individual’s gain or loss was considered to be that of the community. A very indigenous model of cooperative society it was. A man in financial trouble was bailed out by others as a matter of moral duty. When someone stepped in a new in business every community member donated him a brick and a rupee. It created a strong bond amongst community members. It was the basic factor that helped Marwaris take a strangle hold on the financial sector of the country. They functioned as a giant community corporation of trade and business. Birlas were in Pilani since 18th century.
Historically, during 9th century Kshatriyas had ventured into business activities. Thus, warriors turned traders. During that period caste was determined by one’s acts or profession of choice instead of it being a birth factor. One of those new convert traders was Behar Singh. With time it got corrupted into Behra, Behria, Berla and finally became Birla. In 18th century Lala Bhudarmal Birla settled down in Pilani.
Bhudarmal established a good business of money lending in Pilani. His eldest son Udairam joined him in his business. But his other two younger sons went away to Surajgarh and Bikaner to spread their wings there. Meanwhile, Udairam sired three sons in Shobharam, Ramdhan Das and Chunnilal. Shobharam begot a son named Shivnarain in 1840 as his only child. And he started the Birla story really.
Lala Shobharam spent his early years in Pilani but then he left for better future. In the course he reached Ajmer where he got employment with Seth Puranmal as a Munim (accountant) for his banking business. His main business was in Hyderabad. Shobharam was to look after Ajmer and Mau cantonment account as well, which meant dealing with the East India Company authorities. His salary was Rs. 7 only a month.
But he was not fated to live long. In 1858 he passed away. His son Shivnarain was only 18 years old. He had been married to a trader’s girl called Kundini. She bore him two children, a boy and a girl. Born in 1863 was Baldeodas and in 1866 the girl Jheema Devi arrived. Shivnarain started enterprises that proved to be the very foundation of Birla empire. He was the true pioneer of Birla business tradition.
Shivnarain birla
The demise of the father put burden of the business and the family on the immature shoulders of 18 year old Shivnarain. He was more interested in business and had no liking for serving others as an employee. So, in Pilani itself he started a business in partnership. It was a success at village level but was far too short of his ambitions and dreams. However, he continued for sometime and saved enough money. He wanted the people to call him ‘Seth’, a social title or address for a man of riches. He decided to move to Bombay (Mumbai).
Mumbai even then was the centre of financial activities, trade and commerce. Port cities were the favourite places of the British for the convenience of exploitation of their colonies. Through ports they sent raw materials to England and brought finished products and their own goods to markets in the native lands. They built up and set up industries in those port cities only. The people of states like Rajasthan had to move to the cities to make a living or earn money. Every village had such migrant groups that moved to cities for short periods and returned home with money in pockets. Their living would become better than others. They also told about the opportunities in the big city. That inspired more young groups moving to the city. Shivnarain was also influenced by those stories.
Before moving to Mumbai Shivnarain went to Ajmer to seek the blessings of Seth Puranmal for whom his father had worked as Munim for a long time. Seth Puranmal advised Shivnarain to work for him like his father to gain experience for some time. A good salary he promised. But the mind of the youngman was set on Mumbai. So, with the blessing of his mother he set out for the dream city.
Those were the days when the transport system was not in place. No motor roads or railways. The terrain and tracks were difficult and hazardous being stalked by wayside robbers. The people used to travel during day time in convoys for security. It took Shivnarain twenty days to reach Khandwa from Pilani.
Somehow Shivnarain reached Mumbai to try his luck. Marwaris were yet to make a mark in Mumbai business world. Trade and commerce was being run by Europeans, Parsis and Gujaratis. In the 18th century the Marwaris had begun to arrive in that city. The feeling of being in alien territory had brought the Marwaris closer to each other and united them.
Then Mumbai was a port from where large quantities of opium was exported to China. Even then it was a very lucrative trade. Marwaris had natural line on that product. The poppy was cultivated in Rajasthan and Malva region. That was why they had descended on Indore (Malwa town) and Mumbai. In Mumbai Marwaris worked as agents (reps), contractors and brokers in gold and silver deals. They thus amassed a nice packets of money. They were united and helped each other. Marwaris of a village or area used to live together at one place in Mumbai. Pilani Marwaris had their own abode. Shivnarain in partnership with one Hardyal Pandya started a business of satta (speculation or a native kind of forward trading) on opium. Shivnarain rarely lost.
He had landed in Mumbai in 1863. In the next seven years he made seven lac rupees. Then, he returned to Pilani, a rich man. A mansion came up soon. To thank God he got an inn constructed for travellers or visitors for free stay and sank a well. The forward trading (satta) in opium had earned him a fortune. Birlas were now respected people of Pilani. A son also arrived to enrich the domestic life of Shivnarain. He was named Raja Baldeodas. In 1875 at the age of eleven Baldeodas joined his father in Mumbai to learn the business.
Raja Baldeodas with father
Shivnarain began to teach his eleven year old the business of forward trading (satta) in opium during his own life time. The boy did not disappoint his father. After four years in business together, in 1879 a shop-office by the name ‘Shivnarain Baldeodas’ was set up in Mumbai. Indian shop-office meant no furniture, mattresses spread on the floor, covered by a white sheet, Seth (Boss) would sit cross-legged backed up by a big bolster, the customer would sit before him in the same way and the Munim shall sit on his left at the end with writing box in front and a pile-up of red ledgers. A smaller bolaster at his back indicated his subordinate status. The shop office proved a milestone and it took Birlas to a new height of riches.
Their prosperity reflected in their Pilani mansion which underwent periodic renovations, fresco additions and out houses. The back side was for the females. The orthodox family believed in the old saying Money and women are not for display. The house had always been in religious mood, pilgrimages were made from there, recitations of holy books would be organised and on every auspicious occasion Brahmins were fed.
As father as son
The father and son, Shivnarain and Baldeodas respectively both had religious bend of mind. The two believed in charity and gave away a part of income to that purpose. They were generous in helping out others. In 1899 the Pilani area was struck by famine. They opened up free mess for the hungry and arranged food grains at cheap price. For the livestock of village the father-son duo bought huge quantities of fodder and fed for a period. In 1905 famine Shivnarain sank a number of wells for the people at the cost of ten thousand rupees. He made a huge contribution in getting a free inn constructed in the village. The later generations of Birlas continued the tradition of charity and public welfare deeds. For the Marwari society they set up a fund to help the resourceless entrepreneurs loan on minimal interest.
New shop in Kolkata
The father and son were doing well in Mumbai but the destiny had different script sometimes or unforseen factors change the course of events of one’s life. In August 1896 plague broke out in Mumbai. It spread fast killing people. Marwaris were fearstruck. They closed down their shops and fled.
Shivnarain and Baldeodas had set up shop-office in Kolkata in 1890. They decided to operate from Kolkata that was a big centre of satta trade in opium. With fifty thousand cash in pocket the two reached Kolkata. There they had to work hard to get established the earlier time and had to retreat. When plague died out in Mumbai, Shivnarain decided to return to service business again there. Baldevdas was to go to Kolkata to restart the business there.
In Kolkata Marwaris were in control. The local Hindus had suffered business reverses during mid-19th century. There was little competition for Baldeodas now. In the opium trade Marwaris were already in advantageous position having line on poppy cultivators. Baldeodas managed to get a space in a room there through some connections of Seth Puranmal of Ajmer. Three other Marwari operators were already in that room. Now it had four tenants. The rent was Rs. 60 a month and additional Rs. 40 for kitchen and rest cabin. All of them were in the same trade, opium satta or forward trading. They came to be known as ‘Big Four’. Later Baldeodas rented a roof top room for himself. Gradually the Marwaris prospered and so did their numbers. Soon, Kalakar Street, Harrison Road, Pagia Patti and nearby areas got populated by Marwari businessmen. New trades were started by them. The money helped them buy landed properties and assets from Bengali Zamindars. During that time there was a good textile import business in Kolkata. Many Marwaris got into that business. Then their interest diversified into trade of jute and cotton goods. By the end of the 19th century Marwaris had gained monopoly over trade in Kolkata.
Baldeodas was now a very busy businessmen of Bara Bazaar where he worked from 7 a.m. till night. His eldest son Jugal Kishor arrived to assist him in business. The son had good business sense basic mathematics. The firm now became ‘Baldeodas Jugalkishor’. Now they started real opium trading which used to be done by the Europeans only early. Other Marwaris followed them. Now Birlas stepped into the business of silver, foodgrains, sesame seeds and Manchester textiles. They earned good money and made a fortune from the Stock Exchange as well.
By the end of 19th century Birlas of Mumbai and Kolkata had gained control of the market. Opium satta was a real money spinner. In 1909 a Marwari Seth made two crores out of it. Some other Marwaris were also making money in gold-silver and opim trade.
‘Shivnarain Baldeodas’ of Mumbai and ‘Baldeodas Jugalkishor’ of Kolkata were emerging as familiar trade names.
At the age of 69 Shivnarain passed away in 1909. In 1920 his wife Kundani Devi also died 11 years later.
Birlas—upto 1900 ad.
The real Birla story started with Shobharam Birla. (G.D. Birla was born in 1894 which we shall detail in the next chapters.) In the case of the forebears of G.D. Birla following facts need bearing in mind :
❑ The Birlas came from Pilani village of Rajasthan which was in area earlier known as Shekhawati and Dalelgarh was the name original of the village.
❑ Pilani and Rajasthan in whole was neglected by the British because it was away from port city.
❑ 18th century life of Pilani was difficult. There was water scarcity and the people lived on farming and live stock rearing.
❑ Birlas were originally Kshatriya who became businessmen as times changed.
❑ Lala Bhudarmal was the first Birla to make Pilani his home in 18th century. His son Udairam carried on his profession of money-lending. Udairam sired three sons in Shobharam, Ramdhandas and Chunnilal.
❑ Shobharam did not join money-lending business. He worked as Munim of Seth Puranmal of Ajmer. His only son Shivnarain was born in 1840.
❑ After the demise of Shobharam his son Shivnarain opted to do business instead of serving others. He started a business in partnership in Pilani and earned money. To realise his big dreams he migrated to Mumbai. There in opium satta (forward trading) he made a fortune.
❑ In 1861 Shivnarain became the father of a son who was named Raja Baldeodas who later married in 1875 to Yogeshwari Bai of Churu.
❑ In 1874, a rich Shivnarain constructed a mansion in his village besides a temple, inn and a well was sunk to thank God for good fortune.
❑ In 1890 under an expansion idea Kolkata shop-office of ‘Shivnarain Baldeodas’ was set up but found it hard to get going there. Kolkata was a big centre of opium trade.
❑ In 1891 Birlas bought a house in Mumbai which was an achievement even during those days.
❑ In 1896 plague broke out in Mumbai making the Marwaris flee from the city. The father-son duo went to Kolkata to restart business there. This time situation had become favourable for Marwaris. Shivnarain returned to Mumbai as the plague had been contained. Baldeodas took charge of Kolkata shop-office and emerged as a Bada Bazaar trading power.
❑ Baldeodas was blessed with four sons, Jugal Kishor in 1883, Rameshwar Das in 1892, Ghanshyam Das in 1894 and Brajmohan in 1904.
Ghanshyam Das Birla was the third son of Baldeodas Birla and the grandson of Shivnarain Birla. He proved to be the luckiest and the most enterprising amongst all Birlas as the time would reveal.
