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The Marwaris: From Jagat Seth to the Birlas
In the nineteenth century, a tiny community from the deserts of Rajasthan spread out to every corner of India. The Marwaris controlled much of the country s inland trade by the time of the First World War. They then turned their hand to industry and, by the 1970s, owned most of India s private industrial assets. Today, Marwari businessmen account for a quarter of the Indian names on the Forbes billionaires list. What makes the Marwaris so successful? Is it their indomitable enterprise, or their incredible appetite for risk? In this new book, Thomas Timberg shows how the Marwaris rely on a centuries-old system for conserving and growing capital which has stood them in good stead, alongside a strong sense of business ethics which has earned them respect. Family businesses in general and the Marwaris in particular might have a vital role to play in shaping India s economic future.
224 pages, Paperback
First published May 15, 2014
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Displaying 1 - 26 of 26 reviews
May 5, 2015
An okayish introduction to the Marwaris, a community in India that has produced a large number of successful (and large) businesses over the last few centuries. I bought this book in the hope that it takes an in-depth look at the practices of this community over the years, in an attempt to explain their disproportionate representation in successful businesses in India. Timberg does dive into these details to a limited extent, but only in the second half of the book.
The first half of the book is quite garbled. Paragraphs appear disconnected amidst a sea of names of Marwari business houses of old and their descendants. Among this cloud of names appear some orderly classification of the early Marwari businessmen starting out as speculators, and ultimately ending up as industrialists, as agents to foreign brokerages, or as bankers to the British Raj. I would advise giving these chapters a quick skim at best. These chapters try to focus on the firm of Tarachand Ghanshyamdas, an old "Great Firm" in British India, but does a pretty bad job of it.
The second half of the book is a very pleasant read. Calling upon sources in his earlier book from 1978 (also titled "The Marwaris"), as well as Gita Piramal's (and other) biographies on business families in India, Timberg starts to draw distinctions and parallels between successful Marwari business families in India. The Birlas and Goenkas feature prominently in this part of the book, especially the Birlas. There are interesting observations presented, albeit not always with references - like for instance, family-owned firms are less profitable than professionally-run firms in America, but the reverse is true in Europe. Similarly, the theory that conglomerate groups of companies are prevalent in countries with an under-developed financial system is explored to a certain extent, and studied from the perspective of Indian business groups.
Overall, I wished the book had gone more in-depth into the Birlas and Goenkas than it did, or at least looked at a few other business families. Luckily, the book is chalk full of references in the latter half of the book, and provides a good reading list for any interested reader.
The Story of Indian Business series, of which this book is a part, looks interesting in general, and it is probably worth looking into more books in this series.
The first half of the book is quite garbled. Paragraphs appear disconnected amidst a sea of names of Marwari business houses of old and their descendants. Among this cloud of names appear some orderly classification of the early Marwari businessmen starting out as speculators, and ultimately ending up as industrialists, as agents to foreign brokerages, or as bankers to the British Raj. I would advise giving these chapters a quick skim at best. These chapters try to focus on the firm of Tarachand Ghanshyamdas, an old "Great Firm" in British India, but does a pretty bad job of it.
The second half of the book is a very pleasant read. Calling upon sources in his earlier book from 1978 (also titled "The Marwaris"), as well as Gita Piramal's (and other) biographies on business families in India, Timberg starts to draw distinctions and parallels between successful Marwari business families in India. The Birlas and Goenkas feature prominently in this part of the book, especially the Birlas. There are interesting observations presented, albeit not always with references - like for instance, family-owned firms are less profitable than professionally-run firms in America, but the reverse is true in Europe. Similarly, the theory that conglomerate groups of companies are prevalent in countries with an under-developed financial system is explored to a certain extent, and studied from the perspective of Indian business groups.
Overall, I wished the book had gone more in-depth into the Birlas and Goenkas than it did, or at least looked at a few other business families. Luckily, the book is chalk full of references in the latter half of the book, and provides a good reading list for any interested reader.
The Story of Indian Business series, of which this book is a part, looks interesting in general, and it is probably worth looking into more books in this series.
December 31, 2018
The book is poorly written and organized. The overarching narrative is also absent. The only chapter of any importance is the third one - The Marwaris, the Bazaar Economy, and the British Raj. Mostly, due to the informational content of different Marwari groups and their business activities. All the later discussion on the viability of family firms, with particular emphasis on the Birlas, was mostly ambiguous in nature. In the title, there is written - From Jagat Seth to the Birlas, however, Jagat Seths, meaning the firm of Tarachand Ghanshyamdas, has received disoriented attention, scattered haphazardly all over the pages.
The author on his website has only mentioned the positive reviews from the newspapers. He should either remove those positive reviews or also include the Goodreads rating of the book. A book which has been given a prominent place as a member of a series on Indian Business and edited by Gurcharan Das should have kept to the mark. Most of the sales of the book will happen due to such associations and not quality, giving wrong signals to the market.
The author on his website has only mentioned the positive reviews from the newspapers. He should either remove those positive reviews or also include the Goodreads rating of the book. A book which has been given a prominent place as a member of a series on Indian Business and edited by Gurcharan Das should have kept to the mark. Most of the sales of the book will happen due to such associations and not quality, giving wrong signals to the market.
July 25, 2016
The Marwaris form a powerful business community in India. More than a quarter of the country’s richest men belong to the group. They control many large and profitable enterprises that are leaders in their area of expertise. However, the term ‘Marwari’ conjures up images of a usurer or a non-ethical trader in many parts of India, most notably in the South. They are associated with money lending at cut throat interest rates, and are intent on promptly getting the money back without any leniency or kindness. In other words, their social standing may be likened to Jews in medieval Europe, with Shylock as their most notorious representative. The term ‘Marwari’, which is used in the book, however refers to enterprising families from the region of Marwar in Rajasthan, which is centered on the city of Jodhpur and adjoining areas. They do not belong to any particular caste – which is very important to note – but includes Hindus and Jains as well. A typical Who’s Who of Indian business includes names like Birla, Goenka, Ruia, Singhania, Mittal, Khaitan, Bajaj and numerous others, who are all Marwari. Thomas A Timberg is a scholar and consultant on economic development. His fields of study include Baghdadi Jews in India, contemporary microfinance and Islamic finance. His doctoral dissertation was on the Marwaris as industrial entrepreneurs and this book is a result of his continued interest in following the affairs of the community. This book is also a part of the series, ‘The Story of Indian Business’ edited by Gurcharan Das. Another title in the series, ‘Merchants of Tamilakam’ was reviewed earlier. Das has contributed an illuminating Foreword to the book.
Business communities are groups of castes with a common regional origin and a traditional involvement in trade and industry. They constitute several castes. Incidentally, different occupational interests may be seen in one caste. The Amils are traditionally service oriented, with most of them taking up positions in government, while the Bhaibands are entrepreneurial by turn of mind. However, both are members of the same Lohana caste. The Marwaris found lucrative business opportunities in an India moulded by the British East India Company. Many of them migrated under Jagat Seth to Kolkata. Their acumen in identifying a business opportunity quickly enabled them to grow beyond comparison. Three typical roles were donned by the Marwari businessmen in running the economic system put in place by the British. This included great firms, that is, large state banks; formal Banias or guaranteed brokers to large foreign firms; and firms that dealt with future and ready markets for shares and commodities. Timberg identifies the reasons for the growth spurt seen in Marwari establishments, such as psychological disposition, social support networks and individual and historical factors. They had innovative ideas the world had not thought about. For example, the Birlas had a kind of accounting system called Parta, which was widely used in the family business for monitoring and financial control. However, the author’s remarks hide echoes of racial profiling of successful business people. There were Marwari firms like Tarachand Ghanshyamdas which failed. Also, Marwari firms flourished in foreign lands too, where you can’t point to social support or historical factors for the success story. Hence, the most logical thing to conclude is that they excelled because they cultivated the above-mentioned redeeming characteristics and not under the umbrella of an enveloping caste system. Timberg’s unwarranted assumption on the effects of caste in the observation that there is a large portion of Indians in the Fortune 500 list is challenging the wisdom of modern Indian society and the principles of social justice. The last two chapters of the book are of a general nature applicable to any business. Where the time-honoured principles of watching the money, delegation of authority with constant monitoring, importance of having a plan with a style, inhibition-free growth and right corporate culture is enunciated, that enterprise is bound to create wonders.
As in most practical cases, good business firms are not necessarily ethically good too, for at least some of the times. Marwari enterprises are also not totally immune from this general principle. The institutions freely traded in opium, but of course, it was completely legal in those days. We should not examine an event in the past under the glow of enlightenment of a future era. But still, it was evident even in those days that opium was a dangerous substance that dissipated men into insignificance and a destroyer of families and health. Besides, industrialists always supported the ruling power. In 1857, when the country erupted into its war of independence, the Marwari businesses helped the British in crushing the insurrection. All of them were richly rewarded for their loyalty. However, it should also be pointed out that industrialists like Birlas sided with the national movement spearheaded by Gandhi, providing all material support, even at the risk of antagonizing the British.
Timberg adopts a very prejudiced point of view in assessing the entrepreneurial spirit of Indians, incorrectly attributing it to the ethos of belonging to a caste or community that traditionally indulged in business. Thus, Nandan Nilekani is hailed as a successful businessman ‘even though’ he did not belong to any recognized community that specialized in business. An unfortunate aspect that cries out is the lack of proper structure in the book’s organization. Though it is rather small, the book took a time disproportionately longer to complete, owing to its regretful inability to interest the reader. The author has relied heavily on the work ‘The Life and Times of G. D. Birla’ by Medha M. Kudaisya. The text transforms into a review of the book at times. History and anecdotes of prominent business personalities abound in the book, but there is no thread of analysis that strings them meaningfully together. The work is adorned with a good section of Notes, a Bibliography and an Index.
The book is recommended.
Business communities are groups of castes with a common regional origin and a traditional involvement in trade and industry. They constitute several castes. Incidentally, different occupational interests may be seen in one caste. The Amils are traditionally service oriented, with most of them taking up positions in government, while the Bhaibands are entrepreneurial by turn of mind. However, both are members of the same Lohana caste. The Marwaris found lucrative business opportunities in an India moulded by the British East India Company. Many of them migrated under Jagat Seth to Kolkata. Their acumen in identifying a business opportunity quickly enabled them to grow beyond comparison. Three typical roles were donned by the Marwari businessmen in running the economic system put in place by the British. This included great firms, that is, large state banks; formal Banias or guaranteed brokers to large foreign firms; and firms that dealt with future and ready markets for shares and commodities. Timberg identifies the reasons for the growth spurt seen in Marwari establishments, such as psychological disposition, social support networks and individual and historical factors. They had innovative ideas the world had not thought about. For example, the Birlas had a kind of accounting system called Parta, which was widely used in the family business for monitoring and financial control. However, the author’s remarks hide echoes of racial profiling of successful business people. There were Marwari firms like Tarachand Ghanshyamdas which failed. Also, Marwari firms flourished in foreign lands too, where you can’t point to social support or historical factors for the success story. Hence, the most logical thing to conclude is that they excelled because they cultivated the above-mentioned redeeming characteristics and not under the umbrella of an enveloping caste system. Timberg’s unwarranted assumption on the effects of caste in the observation that there is a large portion of Indians in the Fortune 500 list is challenging the wisdom of modern Indian society and the principles of social justice. The last two chapters of the book are of a general nature applicable to any business. Where the time-honoured principles of watching the money, delegation of authority with constant monitoring, importance of having a plan with a style, inhibition-free growth and right corporate culture is enunciated, that enterprise is bound to create wonders.
As in most practical cases, good business firms are not necessarily ethically good too, for at least some of the times. Marwari enterprises are also not totally immune from this general principle. The institutions freely traded in opium, but of course, it was completely legal in those days. We should not examine an event in the past under the glow of enlightenment of a future era. But still, it was evident even in those days that opium was a dangerous substance that dissipated men into insignificance and a destroyer of families and health. Besides, industrialists always supported the ruling power. In 1857, when the country erupted into its war of independence, the Marwari businesses helped the British in crushing the insurrection. All of them were richly rewarded for their loyalty. However, it should also be pointed out that industrialists like Birlas sided with the national movement spearheaded by Gandhi, providing all material support, even at the risk of antagonizing the British.
Timberg adopts a very prejudiced point of view in assessing the entrepreneurial spirit of Indians, incorrectly attributing it to the ethos of belonging to a caste or community that traditionally indulged in business. Thus, Nandan Nilekani is hailed as a successful businessman ‘even though’ he did not belong to any recognized community that specialized in business. An unfortunate aspect that cries out is the lack of proper structure in the book’s organization. Though it is rather small, the book took a time disproportionately longer to complete, owing to its regretful inability to interest the reader. The author has relied heavily on the work ‘The Life and Times of G. D. Birla’ by Medha M. Kudaisya. The text transforms into a review of the book at times. History and anecdotes of prominent business personalities abound in the book, but there is no thread of analysis that strings them meaningfully together. The work is adorned with a good section of Notes, a Bibliography and an Index.
The book is recommended.
December 19, 2019
It was a very good read on a very inspiring topic . I liked the expanse Timberg tries to achieve both across time and geographies. This exactly has been his undoing of giving sketchy or anecdotal references to issues which needed a lot of research and detailing,especially the families and the reasons for their continuing success. otherwise else a good attempt on business community,their roots,practices even though lacking in depth.
September 1, 2016
I started reading this book expecting some meaty information on Marwaris, probably the most successful business community in India, however was disappointed with the material. Other than some broad references and a lot of long often confusing names of persons, I didn't see much useful information. Maybe I was expecting too much. It is an easy read, and relatively little content, so quick to finish. I would say, good for reading on a flight, but not if one is searching for details on the cultural and business aspects that make Marwari's so successful.
August 23, 2014
Just about okay, this whole series is turning out to be. Wish the writing style was more witty, the narrative more anecdotal, and the insights more revealing.
January 7, 2015
Vey mature bussiness knowledge and use of local resources
Read
March 6, 2016A light read, fairly informative.
May 3, 2016
Very disappointing book coming from what is meant to be one of the foremost experts on the subjects.
September 14, 2016
A lot of history about the families.
The crux is in the final chapters
An interesting and good-to-know + quick read/skim though
The crux is in the final chapters
An interesting and good-to-know + quick read/skim though
November 5, 2016
Found bits of it interesting (Being a Marwari) and the last chapter relevant. I guess expected more out of it .
June 15, 2019
If you are looking for tips....you could find them elsewhere too. Good to read for general curiosity.
September 14, 2019
lot of references to Gita Piramal's book .... not as insightful as expected
January 1, 2020
A lot of well-reserached facts about the Marwari community, but presented in a cluttered fashion.
Read
February 27, 2020Its a detailed book but not well written, It has description of Marwari Clan but presented in a haphazard manner.
January 9, 2023
This was an interesting book from which I learned a bunch of details about Marwari (but specifically bania castes) migrations and functioning of the larger firms over time. While some of those details are quite illuminating, this book comes across more as a soft hagiography of prominent Marwari businessmen. It doesn't even talk about the everyday Marwari businessperson of India over the years.
Further, I wouldn't say that the author really has a good grasp of how Marwari banias have historically fit into caste societies in different places they've been, particularly the day to day trader common people would come into contact with (not the Birlas). The author perhaps has no idea of the exploitative nature (land grabbing, high interest rates, containing inheritance of wealth through strict endogamy, corruption, cheaper lending within communities, anti-trust activities, tax avoidance through money laundering and many other things that even today's so-called "middle class" Marwaris have or continue to benefit from). At some point, the author even claims Nandan Nilekani (a Saraswat Brahmin) being a businessman as breaking the trend of business community dominance. At another point, the author makes the claim that an accurate caste census would encourage casteism (while denying the fact that caste-based representation for most SC/ST/OBC communities today is far from being significant).
Overall, I didn't mind reading this book because I learned a few things from it, and it was quite short. For the critical reader however, I would advise some caution against taking the author at face value on everything he says.
Further, I wouldn't say that the author really has a good grasp of how Marwari banias have historically fit into caste societies in different places they've been, particularly the day to day trader common people would come into contact with (not the Birlas). The author perhaps has no idea of the exploitative nature (land grabbing, high interest rates, containing inheritance of wealth through strict endogamy, corruption, cheaper lending within communities, anti-trust activities, tax avoidance through money laundering and many other things that even today's so-called "middle class" Marwaris have or continue to benefit from). At some point, the author even claims Nandan Nilekani (a Saraswat Brahmin) being a businessman as breaking the trend of business community dominance. At another point, the author makes the claim that an accurate caste census would encourage casteism (while denying the fact that caste-based representation for most SC/ST/OBC communities today is far from being significant).
Overall, I didn't mind reading this book because I learned a few things from it, and it was quite short. For the critical reader however, I would advise some caution against taking the author at face value on everything he says.
July 29, 2025
Being a Marwari myself, I dived into this book with a lot of expectations, but I was left wanting for more. The narrative is all over the place. The first two chapters are extremely difficult to read and the last two chapters are generic business principles with a bit of Marwarism inculcated. For the author, Marwari business equates with the Birlas and Goenka’s and Neotias only, as he has clearly missed out the dozens of families still inhabiting Kolkata and running smaller but successful business firms. The author has touched upon almost everything without going into the depths of anything. As an introductory text, the book somewhat works, but as someone interested to understand migration patterns, smaller successes and failures, the whole ethos of the globally positioned Marwari communities - the book misses the point by several marks. I hope someone someday does write comprehensively and cohesively about our clan.
May 28, 2024
The book gives a glimpse of how the Marwaris benefitted during the British rule by serving as traders/bankers for the empire. It shares how some Marwaris were able to transition from a bazzar economy operation to huge industrial houses while others failed in transition. The sense of community within the bania community helped them grow in different parts of India. The book could have been structured well as I felt the author's views were digressing from one topic to another in between.
December 30, 2020
A decent book that talks about the history of Marwari business people- particularly those who settled in Bengal. Well researched with primary inputs where possible. Although the book is organised into chapters, these seem disjointed as it lacks a coherent narrative. I’m also disappointed by the fact that women are not mentioned at all.
January 11, 2021
A big disappointment... author has collected few info randomly and compiled them into a book
January 29, 2022
Could have been better
This book is more like an academic research paper .
A more lucid book on this topic will be appreciated.
This book is more like an academic research paper .
A more lucid book on this topic will be appreciated.
August 2, 2024
Poorly written, not organised. Unnecessary detailed description of marwari family lineages. Nothing insightful to gain from it.
November 29, 2016
Very few books have been written on Indian Business history but these series of books edited by Gurucharan Das make up for it. The book primarily deals with what factors have led to make the Marwaris extremely successful businessmen not only in India but also outside of India.
A good amount of information about where these Marwari businessmen came from, how they migrated across different parts of India and set up businesses is covered in the book. A lot of comparison between the family firms set up by Marwaris and the Jewish family firms (mainly into money lending) is presented, the manner in which these small firms scaled up from money lending to becoming leading Industrialists in pre and post-independence Era is explained in detail. Marwari is a generic term which refers to the business community who were predominantly from the Marwar region in Western Rajasthan, they were typically Agarwals or Jains. It is interesting to note that most of these Marwari firms were not only into money lending to the peasants but also the preferred business partner for the smaller kings and also the East India Company when the British came into India to set up their trading business in India.
Most of the Marwaris migrated towards the Eastern part of India and set up their trading firms in and around Calcutta, Assam and to an extent Bihar also, while some of them ventured towards Bombay but it was usually the Parsee and the Gujarathi businessmen who dominated the trading empires in Bombay.
Over the period of 19th century many of these family firms had graduated from just money lending, to private banks to becoming dealers for various multinational products from Europe and this set the stage for the MNCs to enter India post-Independence.
The reader get a good overall picture of what fundamental traits the Marwaris have to make them so successful in the field of business. The most important of them being a good accounting method (Parta as it is called), ability to allocate capital in the most efficient and productive way and form a good network within their own community to help each other in times of distress. What initially started of just Opium and cotton textiles trading over the years has now seen Marwari firms into various industries be it old economy or the new age business. As the fundamentals of business management haven’t changed much the family firms have changed and adapted to the new paradigms of business.
Case in example is of the Birla group which has been extensively covered by the Author and also taken input from the book Business Maharajas by business historians Swati Piramal. The challenges faced in today’s complex business world be it about succession planning, corporate culture etc etc is something the new generation of Marwari firms have to deal with. The GD Birla group seems to have got their act together by appointing professionals to run the company but the family still monitors it on a regular basis and also involved in key decisions, something that other first generation non business group will have to learn from.
A good book for anyone interested in knowing Indian Business history and the rise of Marwari businesses in particular.
A good amount of information about where these Marwari businessmen came from, how they migrated across different parts of India and set up businesses is covered in the book. A lot of comparison between the family firms set up by Marwaris and the Jewish family firms (mainly into money lending) is presented, the manner in which these small firms scaled up from money lending to becoming leading Industrialists in pre and post-independence Era is explained in detail. Marwari is a generic term which refers to the business community who were predominantly from the Marwar region in Western Rajasthan, they were typically Agarwals or Jains. It is interesting to note that most of these Marwari firms were not only into money lending to the peasants but also the preferred business partner for the smaller kings and also the East India Company when the British came into India to set up their trading business in India.
Most of the Marwaris migrated towards the Eastern part of India and set up their trading firms in and around Calcutta, Assam and to an extent Bihar also, while some of them ventured towards Bombay but it was usually the Parsee and the Gujarathi businessmen who dominated the trading empires in Bombay.
Over the period of 19th century many of these family firms had graduated from just money lending, to private banks to becoming dealers for various multinational products from Europe and this set the stage for the MNCs to enter India post-Independence.
The reader get a good overall picture of what fundamental traits the Marwaris have to make them so successful in the field of business. The most important of them being a good accounting method (Parta as it is called), ability to allocate capital in the most efficient and productive way and form a good network within their own community to help each other in times of distress. What initially started of just Opium and cotton textiles trading over the years has now seen Marwari firms into various industries be it old economy or the new age business. As the fundamentals of business management haven’t changed much the family firms have changed and adapted to the new paradigms of business.
Case in example is of the Birla group which has been extensively covered by the Author and also taken input from the book Business Maharajas by business historians Swati Piramal. The challenges faced in today’s complex business world be it about succession planning, corporate culture etc etc is something the new generation of Marwari firms have to deal with. The GD Birla group seems to have got their act together by appointing professionals to run the company but the family still monitors it on a regular basis and also involved in key decisions, something that other first generation non business group will have to learn from.
A good book for anyone interested in knowing Indian Business history and the rise of Marwari businesses in particular.
This entire review has been hidden because of spoilers.
July 13, 2024
Detailed Review here https://www.anuradhagoyal.com/the-mar...
March 23, 2017
Risk taking and intrigue
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