June 22, 2024

BIG BREAKING: This Business Tycoon Donated His Entire Wealth Of Rs 6210 Crore To His Employees

New Delhi: It gives him immense joy to help others. And not just that, he has given away almost all his wealth, that is $750 million (Rs 6120 crore) to some of his employees, and he is happy with his small house and he doesn’t own a mobile phone. Meet Shriram Group’s founder R Thyagarajan who views lending money to underserved individuals as welfare, as it caters to the poor and those overlooked by traditional banks.

World’s Most Idiosyncratic Financiers
R Thyagarajan is arguably one of the world’s most idiosyncratic financiers – in no small part because his multibillion-dollar business, the Shriram Group, has thrived in an industry that tripped up countless others around the globe, Bloomberg reported.

His Approach to Offering Loans At Affordable Rates
His approach involves offering loans at more affordable rates, demonstrating that lending can be both secure and lucrative. This approach also showcases his belief in making financial services accessible while maintaining profitability.

Objective of Shriram Group
Notably, Thyagarajan founded Rs 90,000 crore Shriram Group in 1974 in Chennai. And he built this empire by lending money to low-income borrowers that don’t get loans from banks. Despite having material success, Thyagarajan lives frugally and has donated most of his money and drives a simple car worth Rs 6 lakh.

Thyagarajan’s Shriram Group employs 1,08,000 people and the company is a pioneer in extending credit to the poor sector of the society for trucks, tractors and other vehicles.

Significantly, the Shriram Group’s current valuation exceeds $750 million (Rs 6210 crore), with a workforce of 108,000 individuals.

In an interview with the Bloomberg, Thyagarajan said he launched the company to prove that it isn’t risky to lend money to those without credit histories. he also added that his business strategy and the choice to offer a stake in Shriram are not unconventional.

“I lean towards leftist beliefs. My focus wasn’t on improving the lives of those who are already well-off,” he said in the interview and instead, he aimed to alleviate difficulties for individuals facing challenges.

Even as Thyagarajan distributed a significant portion of his wealth among a select group of employees, his company Shriram Finance Ltd, the main company under the group, witnessed a remarkable increase in its shares, reaching an all-time high in July with a surge of more than 35% in the current year.

“People held the perception that lending was highly risky due to the elevated interest rates,” Thyagarajan noted and added, “I came to understand that the risk was not substantial as it seemed.”

Know All About Thyagarajan
Thyagarajan completed his graduation in mathematics and did his master’s degree at Indian Statistical Institute in Kolkata.
Later, he joined New India Assurance Company in 1961 and worked for two decades as an employee in several finance companies.
Most significantly, Thyagarajan began entrepreneurship at an age of 37 and now the group owns 30 companies. The company has over 23 million consumers.
It should be noted that the market value of the flagship company, Shriram Finance Limited, is about 8.5 billion dollars and the profit was around 200 million dollars in the June quarter.
What is interesting about Thyagarajan is that he gave away all his shareholdings to a group of employees and transferred the entire money to the Shriram Ownership Trust.india.com

Sabse Bada Daanveer: This Business Tycoon Donated His Entire Wealth Of Rs 6210 Crore To His Employees, Lives In A Small House And Drives A Modest Car


R Thyagarajan Shriram Group Success Story: This is the story of R Thyagarajan, a visionary Indian business tycoon whose journey from humble beginnings to astonishing heights is not only marked by his empire’s financial triumphs but by his exceptional commitment to humanity.

responsibility. By providing accessible financial services while maintaining profitability, he shattered perceptions about lending to the underserved.

His legacy in the industry demonstrates that empathy and innovation can lead to transformative impact.

Shriram Group’s Enduring Legacy

Today, the Shriram Group stands as a testament to Thyagarajan’s vision. With a workforce of 108,000 individuals, the group’s current valuation surpasses USD 750 million (Rs 6210 crore).

The flagship company, Shriram Finance Limited, commands a market value of about 8.5 billion dollars and reported a profit of approximately 200 million dollars in the June quarter.

R Thyagarajan: A Visionary For Change

R Thyagarajan’s journey from humble beginnings to becoming an Indian business tycoon with a heart of gold showcases that business success can be a vehicle for positive societal change. His dedication to inclusivity, empathy, and philanthropy has not only reshaped the financial landscape but also left an indelible mark on the lives of countless individuals.ZN

JKNEWS NATION

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