Sankar, the chairman of Chemplast Sanmar, who passed away recently at the age of 76, was a many-splendoured man. He was a tennis buff, a cricket enthusiast, a sports administrator, a cultural patron, an ambassador par excellence and a consummate industrialist. His passing away has left a huge void in India’s industrial and sporting horizon, particularly in Tamil Nadu.
If Chennai is considered the citadel of family businesses, especially in the brick-and-mortar old economy, Sanmar group has carved a niche for itself thanks to the strategies pursued by its skipper Sankar. He was at the forefront in orchestrating the cause of the family business ever since the reform era began in the early 1990s. He expanded the conglomerate’s core business: PVC, chloro chem and specialty chemicals.
An entrepreneur to the core, Sankar never hesitated to seize any opportunity that came his way. Be it the group’s entry into shipping or the bold foray into Egypt, the Sankar stamp was discernible in Sanmar initiatives.
JV king
A no-nonsense and non-controversial personality, Sankar stood out for the myriad JVs he managed effortlessly for a long time. Indeed, he turned JV management into a fine art.
The group, which his father late KS Narayan started in 1972, has an enviable reputation, managing diverse businesses and partnering with a host of associates across the globe. “The group not only knew how to enter businesses at the right time but had the knack to exit as well when the going got rough. Sankar was consummate in his ability to strike joint ventures with some of the best names globally and keep a happy relationship when many other promoters fell out with their partners,” said V Ranganathan, who was a partner at Ernst & Young.
He successfully promoted a cluster of joint ventures through Sanmar Engineering, which roped in leading global players such as Emerson, Pentair, Tyco, AMP, BF Goodrich, Bayer, Elf Atochem et al. At one time, under his chairmanship, Sanmar had over thirty joint venture partners.
Sanmar was an early entrant in the life insurance business through AMP of Australia. Sankar also set up a JV with Dragoco of Germany to produce fragrances and flavours. He prudently acquired the business of Nocil & Kothari and divested stakes in JVs such as peroxides, insurance, Dragoco, et al.
Sankar helped IOB have a presence in the NBFC segment by floating a JV, Overseas Sanmar. The group exited the JV later but Sankar ensured that depositors’ dues were settled fully before Sanmar exited the NBFC venture. He was also chairman of India Cements under a pact between the promoter groups. He, however, cashed out of India Cements subsequently. Much before any corporate could enter the realty field, Sankar led his group into the property business. In fact, Sanmar also entered the IT arera under Sankar.
Championing the cause of industry
During the early stages of India’s liberalisation, Sankar had a visible public presence through his involvement in various business chambers.
As president of the Madras Chamber and Assocham, he effectively spoke up for Indian industry in the early years of liberalisation. Also in the 1990s, he worked with fellow industrialists in the auto sector to help the Jayalalithaa Government come out with the State’s first industrial policy.
An astute manager of money, Sankar was known for his ability to innovatively restructure his businesses and optimally use the levers available in law to maximise value for investors.
“The evolution of Chemplast Sanmar Ltd., which ultimately culminated in its second visit to the bourses in August 2021, is a testimony to his ability to move businesses around and consolidate when needed to generate investor interest,” said Ranganathan.
The Sankar-led group pioneered PVC making based on molasses from the sugar industry. The venture, however, hit too many road blocks in getting supply of molasses for its alcohol plant due to the policy followed by successive Tamil Nadu governments, which saw diversion of molasses to make liquor. Nonetheless, the indomitable Sankar found ways to run Chemplast, taking on competition from late entrants such as Finolex and Reliance.
When shareholder activism was at its peak and the core business of Chemplast had a tough time, he opted to delist the stock. When the India growth story attracted global investor attention in the wake of the return of the NDA at the Centre, he got investment firm Fairfax to make a substantial infusion of funds. Last year when the market was buoyant despite Covid, he guided his son to revive the listing, with a high premium.
The Sanmar family runs two cricket clubs: Jolly Rovers (for over 50 years) and the Alwarpet Cricket Club. These clubs have produced outstanding players, some of whom have gone on to represent India. Himself a university tennis champion, he promoted that game by sponsoring tennis talent over four decades. He was President of Tamil Nadu cricket and tennis associations and also President of the Madras Cricket Club.
He also breathed new life into Madras Musings, a reputed fortnightly devoted to the preservation of the heritage and environment of Chennai, and placed it on a sound financial footing with support from multiple corporate houses.
Sankar’s passing at the age of 76 has left not only his immediate family but all his wide circle of friends and admirers quite shocked.
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