 "Ramoji Rao dies aged 87")
Ramoji Rao, chairman of Eenadu Group and founder of Ramoji Film City in a file photo. (Twitter)
Cherukuri Ramoji Rao, Padma Vibhushan, died today at 88. He began as a small-time exporter of Indian goods to the Soviet Union, started and ran a highly successful chit fund business, sold bottled pickle and founded a hospitality group, launched Telugu and English newspapers that ruled over undivided Andhra Pradesh for several decades, made many award-winning films on a low budget, and was one of the most important forces behind the rise and growth of the Telugu Desam Party (TDP). He reached the height of his power and fame before he turned 50 and even months before he died, was brimming with ideas that could give smart young entrepreneurs today a run for their money.
Nearly 30 years ago, speaking to Business Standard, he explained: “the secret is to use capital wisely. You have to know how to squeeze every drop from it”. He was, of course, talking about the days when banks were state-owned and credit was costly. But this was a principle that was the kernel of his business till the end.
Contrary to general belief, Ramoji Rao was not born to money – he married it when his parents arranged his marriage with Rama Devi, his quiet right hand in business and politics. Rao belonged to the Kamma caste, mostly landowners in the fertile irrigated Krishna district of undivided Andhra Pradesh (now Andhra Pradesh). He understood power even though there was little money to back it. He started Margadarsi Chit Funds in 1962 when no one had much idea what a chit fund was. Today, Margadarsi’s turnover is estimated at Rs 10,000 crore and it is present in Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. Subrata Roy Sahara was to emulate his idea many years later. enthusiastic successors like BandhanBank followed. When it started, it consisted of agents collecting small savings from distant villages in the state in an account with Margadarsi that would advance the money when needed. The account qualified customers to enter a prize lottery. The chit fund business was based on credibility, trust and a certain chutzpah: a quality Ramoji Rao was never short of.
With the capital from Margadarsi and support from his wife and her family Ramoji Rao scouted for business ideas. He launched an advertising agency but by 1970, was already thinking about a Telugu newspaper. Eenadu (‘Today’) was launched in August, 1974. It was a newspaper different from anything Andhra Pradesh had ever seen, dominated as it was by the reverential Andhra Jyothi and Andhra Prabha. Existing newspapers had content that was of little value to readers – localisation was largely absent. Eenadu upended all that, becoming irreverent, hyper-local and therefore, the first with the news. Ramoji Rao, always an enthusiastic votary of new technology, localised the production and printing of Eenadu with multiple editions, especially when the facsimile machine entered India and editions could be updated via fax. By 1979, he told interviewers, the circulation was around 180,000. "Two out of every five readers of dailies in the state are Eenadu readers," he said.
Meanwhile, Indian politics was going through political upheavals and Andhra Pradesh was no exception. Ramoji Rao flirted with the idea of joining politics, but saw other possibilities that could involve money but increase political capital. By the time the 1983 assembly elections in Andhra Pradesh came around, Eenadu was staunchly supporting the Telugu Desam Party (TDP), formed in 1982, fronted by the mercurial but widely recognised actor, NT Rama Rao. Ramoji Rao was one of those who provided the ‘ideology’ for the TDP: Telugu self respect or ‘atma gouravam’. This followed a rapid turnover of chief ministers by the ruling Congress at the centre (six between 1971 and 1983 with a short stint of President’s Rule), and the ‘insult’ of a sitting Chief Minister, T Anjaiah by then rising star in the Congress, Rajiv Gandhi.
In 1983, TDP contested elections for the first time. The results astounded everyone: the party got 202 out of 294 in the assembly. Eenadu’s page one at the time was widely discussed in newsrooms both in India and abroad: it carried a huge picture of NTR with his arm raised, as if ordering the Congress out of the state. The headline was: “NTR sooper hit”, a twist on movie lingo. Conservative newspapers got a shock from which they never recovered. The Eenadu success prompted him to launch an English version, Newstime in 1983. That however, was an experiment ahead of its time and it closed later. He also launched a film production house that made a movie on the story of a local girl who was a classical dancer and lost a leg in an accident but continued dancing with an artificial leg. The film won many awards and broke box office records.
However, Ramoji Rao soon wearied of NTR’s tantrums and attitudes. He strongly backed the rebellion of Nara Chandrababu Naidu, known as Alludu Garu (son in law), both financially and in terms of media resources. TDP split and NTR would slowly sink into oblivion along with his wife, later widow, Lakshmi Parvati. Ramoji Rao later distanced himself from TDP, though backing to Naidu continued. By 1999, Chandrababu Naidu would become Andhra Pradesh’s longest-serving chief minister and continued to enjoy Eenadu’s unflagging support. It was only natural that when Naidu was defeated in the 2004 assembly elections and the Congress won 185 out of 294 assembly seats that the state government would go after Ramoji Rao and the Eenadu group which, by then, had a flourishing TV empire. YS Rajashekhar Reddy, who became chief minister, and his son Jaganmohan Reddy, launched Sakshi, a rival tv channel.
However, Ramoji Rao had several personal setbacks. The loss of his wife was a shock. But both his sons Kiran and Suman, predeceased him. Other members of his family are now managing the business, though, from his lair in Ramoji City on the outskirts of Hyderabad, Ramoji Rao was still strategizing on business and politics till a few years ago especially during the bifurcation of Andhra Pradesh and Telangana.
Ramoji Rao lived the interface between business and politics and was an active participant in both for most of his remarkable life. He was always known as ‘Chairman’ and only wore white. The state funeral ordered for him by Chief Minister Revanth Reddy is a measure of the respect the state accorded this colossus.
First Published: Jun 08 2024 | 1:39 PM IST
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