Rajiv Lochan Sundaram Finance MD

In his three years, Rajiv has silenced his critics with an outstanding performance on all metrics achieving unprecedented growth momentum

Disbursements more than double, Profit up over 60%, Record Dividend, Stock at its all time high

Rajiv is a Professional you would like to be on your side - K. Balaji, Former MD, The Hindu

It was 2pm on Wednesday January 20, 2021. This writer the then PR for Sundaram Finance sent out a press release to announce the taking over of Rajiv Lochan as the MD of the company from April 1 that year. Most of the them were shocked – some said he would not last, a few remarked that the staffers would have to gear up for a round of lay offs. A fortnight later, a journalist asked him on the face at the quarterly (Q3) presser held for the first time in the company’s history as to what experience he had to lead such a legendary company. 

In that early phase, many journalists questioned his leadership qualities, only for this writer (the PR of the firm then) to challenge them that he would succeed beyond expectations and that most of them would have to eat their words. A Vaishnavite leader from Mylapore called at 11.30pm to ask if there would be trouble for the employees. A CEO of a global auto firm asked if his deposits would be at risk and if he should pull out!!! One Editor with great humility and professionalism said that if indeed he did, he would be happy to showcase the success (when it happened).

As luck would have it, Wave 2 of the Pandemic hit its peak soon after he took over as the MD and he was not able to meet his team members across the country for several months given the travel restrictions. He also lost his appa just ahead of his 80th birthday celebrations that Rajiv had planned for. His appa had been a  big guiding force in his life and his passing away all of a sudden was a big setback for him in that early phase as the MD. His phenomenal achievement over the last three years assumes even more significance against this backdrop. 

Stand out personality even as a teenager

Even as a young boy and a student of PSBB Nungambakkam, Rajiv was unfazed with criticisms and largely ignored his batchmate friends at Singaram Street (T. Nagar), those that would often pull his legs and imitate his distinctive English slang. In those early years, he rode BSA Mach 1, a racing cycle. In the recent decade, he has taken a liking to the Bullet. He was a cut above the rest and stood out in the gang. Unlike many of those friends on that street, he did not take a liking to cricket and with his height preferred sports such as Basketball.

South Zone cricketer and classmate through the schooling days LU Arun (https://prtraveller.blogspot.com/2021/06/psbb-lu-arun-state-schools-south-zone.html) recalls Rajiv from those days in the 1980s "He was a brilliant student and a true all rounder -  Good in studies, played Basketball well, was terrific in debates and could deliver extempore speeches."

 With LU Arun, his classmate at PSBB

But this was a large shoe to step into. TT Srinivasaraghavan (TTS) had taken the company on a steady growth path over the previous two decades and had earned the respect of the large team, nationally. Questions were being asked if he was good enough to take that chair.  However, he had the big backing of his Vice Chairman Harsha Viji, the grandson of the founder of the company. It was also Harsha who took on the journalist at the presser that afternoon when asked about the credentials of Rajiv to lead a NBFC.

The Most Academically Qualified MD in SF's history

This writer (the then PR for the company) had told the outgoing MD in that phase in 2021 that Rajiv was easily the most academically qualified professional in the history of the company with his engineering degree at IIT, and the MS and MBA degrees from Prestigious Universities in the US.  Historically, the leaders at this company grew the business by 'wetting their feet' engaging closely with customers in remote locations. In a completely different context, Rajiv had told this writer during that one year period that there is always a first in life. 

He certainly did not have on the ground experience in the NBFC sector though he had been a  consultant in the financial sector for a few years and had also had a consulting engagement with SF. His appointment was indeed a first of its kind at SF.

                                      

But this was a phase when the next gen in the family Harsha Viji, who was taking over as the Executive Vice Chairman, made a bold move to appoint a leader with no hands on experience in the NBFC space and interestingly against the historic precedence in the company picking someone with overseas degrees and Big Five Consulting experience!!! Harsha knew Rajiv inside out having worked with him in the US and believed that he had it in him to take over the reins from TTS (https://prtraveller.blogspot.com/2021/08/tt-srinivasaraghavan-tts-sundaram.html) and to take this company into the next phase of growth. 

As a person, Rajiv has always had great respect for elders and tradition and now sports the sacred ash, something both he and the boys his age were shy to wear in the 1980s.  He also places a premium on values and those at SF are also close to his heart. When one of the senior staffers at The Hindu came to him to bid goodbye after his retirement, Rajiv fell at his feet seeking his blessings.

The Hindu Experience

Rajiv valued every firm he worked for. He was the first non family member to be inducted into The Hindu Board. Prior to that, he had stints at McKinsey, American Express and US Airways after having started off as a summer intern at the World Bank. In his early media interactions in 2021-22, he stressed on how blessed he was to have worked for firms with great history and now this NBFC, one of the oldest and certainly the most respected in the country. 

Early into his stint, he told Raghuvir Srinivasan, Business Line's Editor in an interaction on his experience at The Hindu "It was very enriching and my most character building experience was there. It prepared me for life. It taught me the importance of having the trust of the target audience. Imagine sending the paper by an aircraft to reach it on time to your readers. It takes hell of a lot of effort to keep your readers. The importance of the employee connect and them being the most precious resource was a big learning. The art of motivating people, treating them the right way was a massive learning and the constant quest to keep improving."

"The Hindu was the first on many things. Similarly SF has been the first on many things (EMI was first introduced by SF, Credit scores/ assessment was first done by SF). There are a number of commonalities with Sundaram Finance. There is always a quest for the next new innovation difference that we can make. The mindset of doing things that would outlive one. Then there is the philosophy of ensuring that everything is for the customer and for the long haul", he told BL in September 2021.

A Balanced Approach grounded in reality

TN Ranji cricketer from the 1970s and former MD of The Hindu K Balaji (https://prtraveller.blogspot.com/2020/09/a-blossoming-cricket-career-was-cut.html) has known Rajiv for almost a decade and a half having also watched him from close quarters during the latter's stint as the MD of The Hindu through the middle of the last decade. 

Balaji says that Rajiv has a sharp intellect and a capacity to understand the nuances of any proposition quite quickly. "He brings to bear a balanced approach to work and life that is grounded in reality. He speaks and acts with a strong conviction but is ready to listen to the other point of view. Rajiv's work ethic and value system are qualities that I am able to relate to very well. He is a professional you would like to be on your side", Balaji told this writer on Sunday evening.

Straight Forward and a Disciplined Leader

"He was a nice, straight forward person, who was very vocal in his views" says Arun, who worked at Infosys for over two decades, recalling Rajiv from the 1980s. Rajiv has remained so into his Sundaram Finance days. He has not held back from expressing his views on topics that are close to his heart. He is on your face and blunt with his feedback as most of his team members would have found out by now but he is also a very honest and friendly man. 

Very disciplined and a Sergeant

There is also a certain discipline about him and the way he goes about his work, a characteristic that his school mate and now a successful global entrepreneur Promodh Sharma (https://prtraveller.blogspot.com/2020/05/promodh-sharma-cricketer-turned.html) distinctly remembers as a distinguishing feature of Rajiv's childhood and a reason for his outstanding success "He was an ardent NCC Cadet and a leader there. He was very disciplined and well regarded among his mates, features that led him to gaining acceptance as a Sergeant."

Pacing up the Disbursements Growth

During the first year of his stint as the MD, Rajiv repeatedly spoke about taking the company into a faster pace of growth and a trajectory of  at least 18% from the 12% or so that had existed previously. He was tech savvy and saw data analytics as an important factor in identifying growth opportunities for the business. Coincidentally the next gen at the customer end too had become tech savvy and comfortable with the digital media as contrasted with the customers in the past who needed a lot of hand holding. 

Strengthening and Expanding non South markets

TTS had laid a strong foundation during his stint expanding the company North of the Vindhyas. In 2005, he had (in)famously shot back at a journalist who asked as to why the company continued to remain South based ‘If having a branch 50 kms off the Pak border is South based, then so be it’, he retorted in his typical style. 

Rajiv has consciously focused on markets outside of the South, and the contribution especially from the North and West has gone up during the last three years (the last story that this writer did as the PR for the company was one of him pushing the pedal on the non South markets and getting the disbursements up in those regions).

May 30, 2022

Unprecedented Growth

The company annual results for FY24 were out on Friday and Rajiv’s three year performance has been outstanding. From just over Rs. 800crores, the net profit has shot up to Rs. 1454crores (Rs. 1334cr without exceptional profit), a significant jump indeed. The receivables under management has gone up almost 50% from just over Rs. 35000cr to over 51000cr. AUM has touched almost Rs. 44000cr, again registering a strong growth from 2021(just over Rs. 30000cr). 

Disbursements, which has always been a key metric, has grown leaps and bounds in his tenure to over Rs. 26000cr from around Rs. 11000cr at the time he took over. During the one year that this writer engaged with him as the PR, Rajiv repeatedly spoke about gaining market share as one of his prime objectives. And he has done that remarkably well increasing the market share in all the asset classes. From an investor’s point of view, the dividend percentage has shot up in the last couple of years as has the stock price which has more than doubled taking it new highs.

Interestingly, the staff count has gone up to over 7000 much against the predictions of his sceptics.

Not many would have given him a chance to take Sundaram Finance on such an unprecedented growth path having also taking over at the peak of the Pandemic (Wave 2) when everything seemed to be working against you but Rajiv is a silent achiever and has always been one. He has scored extraordinarily on almost all counts during these three years. He is a hard task master and high on technology as his team mates would have come to know by now but that is to be expected of one who has always raised the bar in his life right from his schooling days. It has been a great journey for him from being a Consultant in a big five firm (he was one of the founding members of McKinsey's Chennai Practice) to being a hugely successful leader at this legendary NBFC.  

In this short period of three years, he has catapulted this traditional and historically cautious firm into new highs on every front.  In his first year as the MD, he spoke about the company @ 75 and what he needs to plan and do on different fronts ahead of that big year that will come up at the end of the decade.  He is an ambitious man and it is likely that he would have set his sights far and high for that milestone year. And knowing him, he will do everything within his fold to  take Sundaram Finance on a strong growth path leading to the Diamond Jubilee Celebrations.

(This writer handled the PR for Sundaram Finance for two decades from the early 2000s including for a year after Rajiv took over as the MD)