The Comeback Kid

For those who came in late, Chandrasekhar, son of an Indian Air Force officer, cut his teeth in Intel after graduating from Illinois Institute of Technology in Chicago in 1985. He came back to India in 1991 to set up a cellular phone company 8212; unknown territory for Indian business houses back then8212;and married his classmate Anju, daughter of TPG Nambiar.

It was perfect timing: father-in-law was more than willing to play venture capitalist to son-in-law8217;s ambitious plans.

With the help of foreign partners like US West, Chandrasekhar bagged the Mumbai operations in 1995 and launched services next year with an ad campaign created exclusively by cartoonist R K Laxman. He made best use of the BPL brand which was then a household consumer electronics name. In 1996, he expanded services to three more circles8212;Maharashtra, Goa, Tamil Nadu, Pondicherry and Kerala8212;which would, over the years, require an investment of Rs 3,248 crore.

ALL was well till 2000 when Chandrasekhar 8212; who was fighting a fierce battle with Orange Hutch, and Idea, Escorts 8212; fell out with his foreign partners who accused him of not keeping them in the loop for his 64 per cent stake sale plan. A proposed merger deal with Idea Cellular 8212; owned by the Tatas and Birla 8212; also fell through.

This was also a time when BPL8217;s consumer electronics business started losing marketshare and money to new kids on the block like LG and Samsung. Nambiar, who had given charge of his consumer electronic business to his son Ajit was in a major spot. In fact, BPL had to sell off majority of its shares to Sanyo of Japan so that the company could stay afloat.

Rajiv distanced himself from the entire problems faced by BPL group even though all the applications made to the financial institutions by BPL Mobile quoted BPL group as one of the promoters. 8216;8216;I have nothing to do with BPL8217;s other business,8217;8217; was his cryptic reply whenever questioned about the BPL group8217;s financial problems.

As the telecom industry now required a pan-Indian presence, Rajiv knew it was time to quit his business lock, stock and barrel. Companies like Airtel and Reliance were investing billions in setting up nationwide digital and wireless highways. Neither did Rajiv have deep pockets nor did he have foreign partners backing him to bring in more money to the table.

Over the last two years, he negotiated with at least seven telecom players to sell off the business. He finally sold 9.99 per cent stake as first tranche to Essar in December 2004. Rajiv subsequently negotiated with almost all players8212;including Idea, Airtel, Vodafone8212;and finally decided to go with the Essar group as merchant bankers worked out a way around the inter-circle merger guidelines both firms are present in the Bombay circle.

Predictably, Nambiar demanded his pound of flesh. But Rajiv did not play ball and refused any financial bailout to the ailing BPL group. As Nambiar moved the Company Law Board CLB against his son-in-law early this year, Rajiv chose to keep quiet and worked on an out-of-court settlement.

Post settlement, he sold his BPL Mobile for

Rs 4,400 crore to Essar and Hutch combine. Rajiv8217;s earnings? A cool Rs 1,600 crore which he now plans to invest in the telecom not cellular and media sector.

8216;8216;I have a understanding of sorts on that I will not get into the cellular phone business. But I am quite bullish about the Indian telecom sector. This industry provides huge opportunities and am planning to continue to remain in this industry for some more time,8217;8217; he told The Sunday Express.

For now, it8217;s a well deserved break. 8216;8216;For the next three days, I am going on a holiday. But I will be back at work on Monday morning. You will hear my plans soon,8217;8217; a relaxed Chandrasekhar said the day he signed on the dotted line. This time around, it appears that the Comeback Kid has finally arrived.