Veterans Unpacked | If you don't fail once in a while, something is wrong, says Arun Nanda

Arun Nanda

Before he resigned as the executive director of M&M Limited in 2010, Arun Nanda, who is a lawyer, accountant, MBA and company secretary by training, created Mahindra Holidays & Resorts India (MHRIL), India's largest publicly listed timeshare vacation provider. Even as he pursues his interests outside the boardroom, Nanda is the only senior executive still involved in a non-executive role with businesses at the Mahindra Group. He emphasises the value of risk-taking, why young leaders must embrace humility and how trust between organisations and its executives only works when it is a two-way street. Edited excerpts:

I first wanted to see how I could help children but at orphanages when they turn 18 they become independent and there's not much you can do. So then I looked at senior citizens. Today people live longer and so I started a trust which has 12 community centres in Mumbai

I'm building a geriatrics specialty hospital in Palghar and an old-age home. Beyond that, at a personal level, when in the farmhouse, (I) swim regularly. I also am a non-executive director at companies at M&M, so that takes some of my time too but not like before.

I can think of two instances. When we went public with Mahindra Holidays, our first accounts were being audited and I went to Anand (Mahindra) to say that this venture generates a lot of cash and while it's our group policy to keep between 30 and 50 percent of profits, I'd like to go higher. He asked 'who is the chairman of the company?' and I said 'I was' and he said if your board agrees, take the decision.

The second was a marine transport business between Versova and Nariman Point that failed for two reasons—scale was small and landing logistics never mapped. I was scared when I went to see Keshub Mahindra but told him, "I'm going to wind up this business. Also, there have been losses of about a million dollars". The unexpected answer was he was glad to see that we were taking risks. “It's good if you fail in a venture because you can't succeed in everything you do."

Initially, the power, the corporate spotlight and the recognition with the position. There's no doubt you miss that in the beginning but if you can find a calling, which for me was to give back to society, you also transcend it. Of course, as I mentioned, thanks to Mahindra's generosity, I do have the unusual benefit of both worlds.

I should have been a bigger risk-taker and tried to grow the businesses I oversaw faster but as an accountant by training, I have been very cautious.

One is technology, AI, machine-learning and all that. The other thing is consumer behaviour is changing much faster than in my time, so you have to be lightning quick and adapt to change.  That pace is only accelerating as we go along.

It's difficult to name one person but if I had to narrow it down to qualities it would be these: trust, open leadership culture with respect for individuals for which I look up to Mr Mahindra, and lastly vision and the ability to change with times.

When it came to the second innings, I felt a need to give back but I'm the kind of person who needs interaction with people, so the social sector made the most sense. I actually resigned not retired.

When I turned 60, I then started thinking of what I would do with my life. Remember, I'd become a director at the age of 40 and I was not someone who could retire and sit at home or play golf during the day. I also realised that planning at 65 would be too late, so I started thinking about it earlier and went to a life coach in Singapore who helped with getting perspective.

There is no end to learning is what I would tell myself. The day you stop learning is the day you stop growing and the second is practice self-humility and empathy for one's partners in business.

Learn the art of giving and create interests that can continue post-retirement. I think at some stage you must also realise that you have to move on and will need things to keep you busy post-retirement.