One of the most prominent business leaders from Kerala, Ravi Pillai is counted among the richest in the world. Beginning from scratch, he built a business empire in the Gulf. His RP Group, said to be worth billions, now operates across the globe.
Pillai talks about his five-decade-long business journey, his views on Kerala’s business potential, why he feels the Gulf will continue to grow, and his plans for the future. Excerpts
You went to Saudi Arabia in the 1970s and started your business. Your reflections on your long business journey…
I went to Saudi Arabia in 1977. Back then, nobody knew me there. Malayalis were rare, and most of those who travelled to Saudi were Muslims. Nobody was there to support me. I’m a Hindu, and the country was dominated by Muslims. Due to sheer hard work and with God’s Grace, I am what I am today. Within two months of being there, I started my own business. At the time, Indians were not held in regard. For them, Indians were mere kitchen helpers, drivers, and gardeners. Back then, the Indian economy was weak. We are admired only when our economy is strong.
Why did you choose business when you didn’t have a business background?
Ours was an agrarian family. But, since childhood, I had an interest in business. During those times, those who passed matriculation would register with the Employment Exchange. I didn’t. At the age of 15, I started a business – a daily chitty. Later, I moved to Kochi, where I did my MBA, during which I met some engineers working with FACT and Cochin Refineries. Based on that relation, I started a new venture. I was involved in the construction of Vellore Newsprint. However, local issues created problems, and I had to stop and leave.
Did your family oppose your decision to go abroad?
I decided, and I went. There was opposition initially. I would not have become what I am today if I hadn’t gone there. It has the best business environment.
You have experienced failure at the beginning. How did that shape your future decision-making?
That failure was actually a blessing. It forced me to go to the Gulf. The initial failure changed my life for the better. One must always remember one’s failures. That makes us more cautious. Running a business demands more than 24 hours a day.
Tell us about the growth of your company from the early days...
I started with 150 employees. Today, around 1.6 lakh people work for the company worldwide. For 40 years, we have been providing jobs in the Gulf. Today, we operate some of the largest gas and refinery plants, and employ up to 30,000 people at each site. Our operations span Abu Dhabi, Dubai, Qatar, and Saudi Arabia. We also partner with global leaders such as ExxonMobil and ConocoPhillips.
As you said, a Hindu migrated to a Muslim country. How did the religion factor play out?
Muslims are the best…very loving. If we are good, work will come to us. Goodwill is important. Trust is also important in both life and business. We should never compromise on this. In my experience, mostly ordinary people consider the religious factor. Those at high levels do not look at such things.
Have you ever regretted going into business?
Never. I could improve the living standards of lakhs of people in India, the Philippines, Nepal, and Thailand. That is my biggest happiness. Not everybody can do it.
When you left Kerala, the state was witnessing the height of trade unionism. What difference do you see now?
Now, there are opportunities to work and invest anywhere. Trade unions are no longer visible, as they once were.
Any memorable experiences during your business career?
In 1977, a Saudi businessman offered to sell me his car, assuming I would not be able to afford it. I bought the car. Another instance happened about 25 years ago, when Koreans and Japanese dominated top positions in the Gulf. A project manager from a reputed firm refused to shake hands with me, considering it beneath him. I later hired him as an employee (chuckles).
You mentioned how Indians were looked down upon. Has the situation changed now?
Yes, the position of Indians has changed drastically. About 20 years ago, I went to meet the chairman of one of the world’s largest companies in the US. His CEO, an American, remarked that Indians could not be trusted and that their knowledge was limited to car washing and kitchen cleaning. At the time, migrant employees were given accommodation nearly 200km away, under the belief that Asians posed health risks and were not trustworthy. Today, people actively seek out Indians. I think Indian expatriates in the Gulf are the happiest. I think 98% of people who came to the Gulf have prospered.
Is it true that job opportunities in the Gulf are on the decline?
There won’t be any issue for the next 10-20 years. Of the Gulf countries, Saudi Arabia has the highest population, and we recruit a minimum of 40% of locals. In some categories, only locals can be given jobs. There are good engineers in Saudi Arabia. The Saudi women are excellent workers.
You have invested in Kerala. Is it because of an emotional connection?
I think business in Kerala can only be at a break-even level and will not yield huge profits (laughs).
What is the most viable industry in Kerala?
I’d say it’s the hospitality sector for the time being. Land is scarce, and so is technical manpower. Fisheries and minerals have scope here. Tea and coffee are good options.
It is said that wealth creation is looked down upon in Kerala…
In Kerala, people are against wealth creators. It is just the opposite in the Gulf.
Why so?
Jealousy, nothing else (laughs). Don’t you think so? They may even say it’s ill-gotten wealth. But in other countries, wealth creators are highly appreciated and welcomed. They value only the wealthy. Or else, who would value Trump? He is valued by world nations due to wealth and military strength. Money power is money power.
Do you think such a mentality exists only in Kerala?
It is seen only in Kerala. That has been the situation for a long time. It’s our culture.
Kerala has no Vaishya community, a state that has no business tradition...
That’s true. But Kozhikode is an exception. I think the richest NRI businessmen and wealthy individuals are from Kozhikode and the northern region.
You often say there is a cultural difference between south and north Kerala, in terms of Gulf migration and prosperity...
In north Kerala, there are more high-income families and NRIs compared to the south. Many of them may not run businesses here, but they send money home regularly. Every day, at least 2,000 people arrive from abroad. When they come home, there is a festive atmosphere for 1-2 months. They call everyone, extend help, and distribute food. Such culture is not as visible in the south.
You have said Kerala’s prosperity is deeply linked to the Gulf...
Absolutely. If there were no Gulf migration, the Kerala we see today would not exist. Lakhs of people have worked there and sent millions back home. Many of us, including me, would not be where we are without that opportunity.
You are known to have cordial relations with leaders across political parties…
We don’t gain anything from politicians. Instead, Gulf Malayalis contribute to the needs of the state. The relationship is for contribution, not for benefit. I have good relations with leaders across parties.
You have known Prime Minister Narendra Modi for a long time. Tell us about your association...
I have known him before he became Gujarat Chief Minister, from Pravasi events. His best quality is that he has no personal or family interests. For him, India is his family.
What are your views on Chief Minister Pinarayi Vijayan?
He is a strong leader who wants Kerala to progress.
There were rumours about you investing in movies, including Mohanlal’s ‘Barroz’…
Not as an investment. Mohanlal is a close friend. If someone needed financial help, I have given personal loans. Not for profit.
Not many know about the valuation of your company. How much is it, on a global scale?
One of the recent works we signed was for more than $8 billion. It is Qatar’s biggest gas project. We signed it with Qatar Energy.
According to the Forbes list, you are one of the richest in the world, in terms of personal assets...
It is a figure put out by them. Such a list was first prepared when I was in Korea. They will consider only the data we provide and audit it properly. As per the latest data, they have valued my worth at $4.1 billion.
Are you planning to list your company on the stock market?
Not as of now. We don’t want others’ money. We cannot predict the way stocks fluctuate. People who invest their hard-earned money in our company should never say that we cheated them. I do not want money drenched in someone’s tears or by cheating someone.
To what extent do ethics have a role in business?
I prioritise ethics. Many businesses experience downfall because of not doing the same. I have neither given a bribe in my life, nor have I been in a situation to give. I have not done any illegal business. I have not made a single penny in an unethical manner, nor will I do so in the future. Money is not everything; we want mental peace.
It is commonly said that people who do business ethically cannot do well…
TATA is doing ethical business in India. Do they have a problem? To do business in the Gulf now, we should sign an ethics document. If not, we will be blacklisted.
Political parties often accept ‘donations’. Isn’t such a system active?
Not to the extent it existed in the past. Today, the media will expose them.
What are the things you look for before signing a crucial deal?
Even if it doesn’t make a profit, it should never make a loss. Every step is crucial. Companies indulging in big publicity take up projects quoting low prices. They do it to improve their share prices. That, I don’t do.
What’s your advice to those who want to invest in Kerala?
Never do business based on the project report alone. A project may be successful in one state, but not in another. Rather, study it extensively and consult experts before making decisions. The challenge in business is that it evolves every day.
You have worked with many nationalities. Who do you admire the most?
I admire the Japanese. They are punctual, dedicated, and honest. Their work ethic is hard to match. They are very sincere and loyal. Koreans are similar in many ways. They are highly dedicated workers.
You have invested in Dhanlaxmi Bank. Any plans to invest in more Kerala companies?
We are ready to invest wherever there are good opportunities.
Many venture into business, but only a few succeed...
Business is very risky. Only those who are ready to take risks should enter. You should not be watching the clock. It demands all your time – 24 hours a day.
Yes, that also. I also believe in astrology. It is a major factor. There are good and bad times, and certain star signs are believed to succeed in business. About 98% of what was written in my horoscope has come true. Some large companies in India secretly consider star signs while appointing people to important positions.
We have heard you frequent the Tirupati and Guruvayur temples…
Once, I had to visit Singapore for a meeting. There I saw a Chinese gold shop where they prayed to Tirupati before opening the shop. Every year, on September 2, I am in Tirupati. I also go to Guruvayur. I believe in God, and that’s good. Because you’ll be afraid to do something wrong.
In countries like the US, there is a system of pledging wealth. You already have CSR initiatives and philanthropic activities...
There are plans. On February 11, we will provide scholarships worth Rs 10 crore to 1,500 students. I have set aside Rs 500 crore for education over the next 50 years. It is being implemented through the government via NORKA. They will select students, and we will provide scholarship cheques. It is for both school and college students.
What is your succession plan?
I have a son and a daughter. They are better than I am. They’ll take care of the things. The loan is very low, so the transition will be smooth. The oil and energy sectors will continue to grow.
How does your day usually go?
I wake up at 6am sharp. I go to sleep around 3am. I try to get four to five hours of sleep. Though seven to eight hours are recommended, even six hours is enough for me… but even that is hard to get.
Don’t you ever feel like slowing down and relaxing after achieving this level of success?
I need to work until my death - not for myself, but for the people who depend on me. Otherwise, I would have stepped away earlier.
What was your target?
It was to provide employment to one lakh people. We have crossed that mark. There is nothing more to achieve. All this happened because of God’s grace.
How’s your relationship with Yusuffali M A?
I have brotherly relations with him. There is no business relation. He has done so much for society. He is an asset to the country.
What’s the attitude Arab Sheikhs have towards Indians?
They respect India. They now acknowledge that Indians have become rich. The lavish marriage of Mukesh Ambani’s son, where expensive gifts were given to the guests, has contributed to this image.
Have the wars and global conflicts impacted the business landscape?
Conflicts and wars do frighten us. Now people are not investing hugely in the Middle East. Most are now investing in the US, considering it safe. There is a 90% chance of a US-Iran war. We consider these aspects while investing.
You mentioned Mukesh Ambani giving gifts to the wedding guests. There’s a section that calls it an extravaganza…
Have you seen anglers catching fish with a hook? (smiles). If you give a gift, they’ll certainly return the favour. The invite is given only to such people, not to commoners. All this is business. Nobody gives gifts without any return benefit.
There’s a general criticism about wealth getting concentrated with a few rich people while the number of poor people increases...
How does this wealth creation happen? It’s due to hard work. Be it the Ambanis or the Adanis, they reached the top due to hard work, willingness to take risks, and political support. And they support many families.
How crucial is political support?
We cannot do business here without political support. Without government support, it’s difficult to get approvals, and officials won’t do anything.
Now that electric vehicles are getting popular, what’s the future of the oil industry?
Still, energy is energy. Gas is in high demand even now, and I think it will remain so. In the Middle East, Qatar has the highest gas availability, and there are projects for another ten years.
So, the prominence of the Gulf will continue?
Yes. The Gulf will continue to improve. Now it’s difficult to get a house in Dubai. People from the US and Europe are shifting to Dubai for various reasons, like safety and not having to pay tax. Many of the richest Indians have houses and offices in Dubai.
If Kerala has to grow faster, what should it ideally do?
Getting approvals for projects should be made easier. Now it takes 1-3 years, because of government officials. If we start the same business in Dubai, Saudi Arabia, or Australia, we get approvals in no time. Secondly, in the Gulf and Europe, legislations have been amended to facilitate liberal investment. Here, there’s harassment by officials.
Are you planning any new projects in Kerala?
It’ll be announced soon. A new convention centre and a good hotel will come up in Thiruvananthapuram. It’s likely to be operational within two years. Kerala’s future lies in the hospitality industry.
There were a few controversies regarding the takeover of Leela Palace. What’s the current status?
Controversies are over. We got the property as per the Supreme Court verdict. ITDC bought it from the government by paying the market rate, and later handed it over to another group. We bought it from the Leela Group.
You have had a long business career. Looking back, how do you feel? Have you achieved everything you wanted to?
It was not for mere achievement but for happiness. Any business is for happiness. I could help lakhs of people and their families in whatever way I could. What more do I need? I never check what my bank balance is.
You are someone without a Godfather. Who are you indebted to?
God. Anyone can succeed in business if they have determination and work hard. Investments should be made wisely, only after proper study.
TNIE team: Kiran Prakash, Cithara Paul, Anil S, Rajesh Ravi, Vincent Pulickal (Photos) Pranav V P (video)