|
G iven a choice, he would love
to go back to teaching and sharpening young minds. But for
now, Vishnu Varshney, chief executive officer of Gujarat
Venture Finance Ltd (GVFL), has to be content helping entrepreneurs
with their fledgling ventures.
Varshney was born in a business
family in Kanpur and went to BNSD Inter College where he
studied up to Class XII. Influenced by his successful relatives,
who were engineers, he decided to follow in their footsteps
and secured admission to IIT Kanpur.
Varshney studied under the tutelage
of renowned professors like V. Rajaraman and P.N.R. Rao.
He graduated in 1969 and was so sure he would set up his
own venture that he did not even apply for campus placements.
On the advice of a well wisher, he went to Louisiana State
University (LSU) to do his masters in science.
His first job was with a ship
automation company. He considers his time in the US well
spent. Says he, “In America, I learnt my lessons in
ethics and put my value system in place. I also found the
open and flexible educational system very stimulating.”
But it was not all rosy. The Vietnam
War and the subsequent recession in America made things
difficult for professionals like Varshney who had to discontinue
working. To avoid returning to India, Varshney enrolled
for an MBA at LSU.
A family tragedy forced him back
to India in 1974. He then decided to pursue his original
business plans. But he changed his mind after he met Jagdish
Khattar of Maruti fame, then with the government as a civil
servant. Varshney joined Khattar’s team at the Uttar
Pradesh Industrial Development Corporation (UPIDC).
For the US-returned Varshney,
this job was the stepping stone into the area of venture
finance. Says he, “We worked around the industrial
areas of Ghaziabad. We learnt some procedures like the letter
of intent, licensing and other government requirements.”
It was around this time that Varshney
identified software company Hindustan Computers Ltd (HCL)
as a rising star. HCL was in its formative years. That was
the right time to back it.
Such finds were very satisfying.
Soon, however, disillusionment set in with the UP Development
Corporation. Varshney would have gone back to the US, if
not for an offer from the Gujarat Industrial Investment
Corporation (GIIC) in Ahmedabad. He worked there for 11
years overseeing various projects. In July 1990, he was
selected by the World Bank and GIIC to start Gujarat Venture
Finance Ltd (now known as GVFL) as an independent, autonomous
organisation in Ahmedabad.
He has raised four venture capital
funds with a combined asset base of Rs 125 crore and is
currently in the process of raising a biotech fund.
Varshney shares some tips for
start up companies that wish to attract venture capital
funds. “Location plays an important role in the setting
up of companies as do products. Single customers and products
are extremely vulnerable,” observes he. He feels that
in joint ventures, the chemistry has to be good between
the private and the government sector.
Although Varshney invested in
technology-oriented companies, he did not burn his fingers
during the 1999-2000 dotcom bust. GVFL’s success stories
include Deccanet, Scicom, Net4Nuts, e-Infochips, Parsec
Technologies and Neilsoft. Varshney has also worked in successful
joint ventures involving companies like the Essar Group,
the Hero Group, Gujarat Instruments and Gujarat Tyres.
Varshney now has more than 30
years’ work experience in venture capital. Today, when
he invests in any company, he looks at some basic things:
Who is behind the company? How passionate is he?
Varshney has a message for entrepreneurs:
“Do not be afraid of failure. Success is 90 per cent
sweat and 10 per cent luck.”
What with his busy professional
life, he has missed out on spending time with his family.
He does that now. And he listens to classical music.
Despite his children’s repeated
requests to come to the US on a green card, he is adamant
that he will stay in India. It is his hope that India will
become a powerful country in the years to come. And he ventures
to back the people who will help make it one.
Based on a conversation with
Aparna Harish in Calcutta
|
