BASANT LALL SHAW

Powerful Visionary, Great Industrialist, leader and motivator, an extraordinary human being, fearless, dashing and soft spoken too   Shri B L Shaw had a courage to set up his plant without the help of  Governmet  and built his own industrial unit on Private Land at Butibori in Maharashtra and gradually he has developed his own industrial empire.

 Jayaswal Neco Industries Limited (JNIL), which started in 1976 as a small Iron foundry unit at Nagpur, is the flagship company of NECO Group of Industries. JNIL is today an INR 26 billion (US$ 472 million) turnover company with technologically advanced production infrastructure and a strong country-wide marketing network. Today its total production capacity of Iron and Steel castings exceeds 140,000 MTPA. The company’s strategy of backward and forward integration has enabled it absorb the fluctuations in business cycles. The “NECO” name is synonymous with Quality, Reliability and Durability of products.

Mentor of this industrial empire, Shri B L Shaw was born on 3rd August 1933 in a family of agriculturists and small village-business of eastern Uttar Pradesh – District Azamgarh, near Varanashi. His ancestors were also agriculturists having a good trade in cotton and later on, his father Late Jagabandhan Ram Shaw who was very much enterprising,  had started a Khandsari Sugar business which was very successfully run for about 10 years during the Second World War period in between 1940 till 1950. Then the family decided to go back to Calcutta to join and restart their steel trading business which had been started by his father sometime in 1902 when he had left his home in Uttar Pradesh at the age of 18 years after leaving his village business and farming. He was quite new to Kolkata and alone with very small funds to support any business but he worked very hard and within a period of next 4-5 years, he established his own Shop and Godown with a number of supporting staff for trading in Steel business.

In those days, no steel was produced in the country and everything was imported from Birmingham, England. Tata Steel commissioned its Integrated Steel Plant at Jamshedpur in 1907 and started production of various items of Steel. It was very difficult in those days for selling Indian Steel in competition with imported steel. People had more faith in imported Steel. Since his  father was already in Steel Trade, he and a number of Steel merchants of Kolkata were invited by the officers of Tata Steel and in the meeting, it was decided that Tata Steel should be paid only after sales of the products by the merchants and only they should permit storage of the Steel Products in their go-downs.

His father was a leading merchant and he convinced Steel users that Tata Steel was much better in quality than the imported ones as the imported Steel gets damaged during handling in transit from England to Kolkata. At that time, Gandhiji had started Swadeshi movement and all imported goods including clothes, steel etc. was encouraged to be boycotted in support of local Indian Industries.  Most of the merchants and traders supported the move and thus, Indian Steel started selling more and more with the passage of time and thus, Tata Steel became a grand success.

When B L Shaw had passed Class 10th in Kolkata, he joined City College in the year 1952 and opted for Commerce. Side by side, he devoted his time for learning family business and before his Graduation in the year 1956, he had become very much active and successful in the trading business.

 In those days when India was under British Rule, Mahatma Gandhi, Jawaharlal Nehru, Sardar Patel etc. used to visit Kolkata frequently and at that early age, he got opportunity to attend various meetings organized by Congress Party. In those days he could learn the meaning of subjugation and Freedom and the sufferings the country had faced for more than 1000 years with various invasions, destruction of religious places, educational institutions and cultural places in order to destroy the culture and knowledge of  India. 

During their visits, Mahatma Gandhi and Jawaharlal Nehru used to address large gatherings at Kolkata when people in general, could know and understand the value of freedom and what the country can become once it attains Freedom. Pandit Jawaharlal Nehru used to advice young people for higher learning and setting up of Industries so that Industrial products could be produced here in India itself and more and more people can get employment, earn their livelihood and eliminate their poverty.

Shri Basant lall Shaw ,though he was a Commerce Graduate, was very much interested for setting up an industry related to Iron and Steel.  India attained Freedom in 1947 and in the next 10 years, a  number of Steel Plants at Durgapur, Rourkela and Bhilai came up. All were promoted by Government of India with foreign aids. The first Integrated Steel Plant was set up by Tatas at Jamshedpur in 1907 and second Steel Plant was set up by a British Company of Kolkata – named Martin Burn Ltd. at Burnpur near Asansol in West Bengal in 1918.

 In order to gain knowledge and for his curiosity how the steel is produced from Iron Ore on such a large scale, Shri Shaw decided to visit and study all the Steel Plants and he managed to stay there for a few days understanding the technicality and process of making steel. After meeting a good number of technical people and understanding the process etc. he was very much confident that he can do the same in his own small way.

With the passage of time, Kolkata had become India’s largest Business centre and at that time, Bombay was taken as second. There was a time during British rule at their initial stage, Kolkata was proclaimed to be the capital of India for some years. Jute, Tea, Indigo and Engineering industries had flourished very much around Kolkata as Jute, Tea and Indigo were local firm products whereas Steel was being produced at Jamshedpur and Burnpur. Kolkata became industrial hub of the country. Jayaswal community started migrating to Kolkata from neighboring States of  Bihar and eastern Uttar Pradesh, looking for various jobs. There were very few literate people in the community and with the passage of time, they started taking up repairing and maintenance business and thereafter entered into manufacture of small components for local engineering industries. Our community people in general are very intelligent and grasp ideas to do something very fast. So, slowly a group concentrated towards trading of steel, another group took up the business of tools & hardwares, another started with electrical repairing and later on, became specialized in manufacture of Electrical Fans.

With the passage of time people of Jayaswal Community started setting up of engineering industries, mainly Iron foundries in the nearby district of Howrah – just across River Hooghly on the bank of which Kolkata is situated.  Shri Shaw after leaving High School, joined College and being encouraged by various speeches of Pandit Nehru for setting up of industries, became very much encouraged to start with Iron Foundry.

One of Basant lall Shaw’s  relatives, even though he was illiterate and could sign only Bank Cheques, but was very much intelligent and had learnt running a foundry in his friend’s workshop, invited Shri Shaw to learn the trade. After spending 4-5 hours everyday for about 2-3 years, Shri Shaw also became fully acquainted with running an Iron Foundry in the suburbs of Kolkata – at a place called Hooghly around 30 Kms away from Howrah.

He had been ambitious from his childhood and when he got an opportunity for setting up an industry at a very initial stage, he had acquired a land of around 10 Acres. Railways were expanding and setting up new Tracks and there annual demand for Cast Iron Sleeper Plates were about 3,00,000 Tons. A number of foundries were producing Sleeper Plates exclusively as Railways demand was huge. Shri Shaw also joined in the production of Sleeper Plates annually around 10,000 tonnes.

After attaining freedom from British Rules, Government of India had inherited shortage in everything – food, clothes and industrial products as well and side-by-side, the control and permit system. Steel of any kind, Cement were very much scares and was available for industries against quota permit system. Iron foundries around Howrah, manufacturing Railway Sleeper Plates flourished because its basic raw material – Pig Iron, was available from Steel Plants sufficiently at control-prices. Shri Shaw had also joined and his business also became a success.

In those days, politically entire India was under the control and rule of Congress Party - at the centre as well as in all the States. Communist Party was at their initial stage during mid-70s and West Bengal started falling in the hands of Communist Party. All Industrial units came under the grip of Communist Party Trade Union and a new-age stepped in. Side by side, one Charu Majumdar in a village called “Naxalbari” in North Bengal had started a movement for killing local landlords and occupying their lands. This movement within a short time, spread all over Bengal and also spread to industrial belt around Kolkata.

Shri Shaw’s factory in the name of Jayaswal Udyog Pvt. Ltd. at Hooghly producing Railway Sleepers and Sanitary castings, employing around 1000 workers, came in the grip of Naxalite movement. Trade Unions were formed by workers in all the factories around Kolkata and they started putting up their demands for doubling the wages and various such other activities, they started adopting which the industries financially could not bear. There were wave of strikes, closures of factories, followed by fighting amongst workers and ultimately killing of Management staff.

Shri Shaw’s elder son – Shri Arbind Jayaswal who was overlooking the foundry – hardly at the age of 22 years,  while he was on the way to factory from Bank alongwith his Cashier, carrying cash for distribution of salary to workers,  was surrounded by Naxalites and both were stabbed in the back and the cash was looted. However, nothing much untoward happened. Law and Order situation in Kolkata was out of control and around 20-22 persons were murdered everyday and under such situation, Shri Shaw decided to shift to some other cool and calm place and ultimately he reached Nagpur where he too started another foundry in the name of “Nagpur Engineering Company Ltd.” in the year 1974.

At Nagpur, he adopted the same business – foundry and production of Railway Castings – CI Sleepers, Bearing Plates, Brake Blocks etc. alongwith sanitary castings. Here too, it became a grand success as cheaper raw material – Iron scrap was available in plenty from Bhilai Steel Plant. Within a period of 7 years, 7 foundries came up one after another, under the nomenclature “Neco Group of Industries”. A number of foundries of the Group are fully mechanized – with high pressure moulding lines. High value, intricate quality castings started coming up and subsequently production of automotive castings were also taken up. A Steel Foundry was also added for production of Valve Body Castings. Next year, a Steel Valve Manufacturing company came up in the name of NSSL Limited.

During the period when Shri Narsimha Rao was the Prime Minister of the country and Shri Manmohan Singh was the Finance Minister, the age of liberalisation came up. Shri Shaw used to visit International Foundry Exhibitions in Germany and there he met one Chinese company  which has been running Blast Furnaces for manufacture of Pig Iron which is the raw material for Shaw’s foundries which needed more than 1,00,000 tonnes of raw material. After visiting China, Shri Shaw finalized a technical transfer-deal with Shougong Steel Corporation which was the first Integrated Steel Plant of China like Tata Steel. His group entered into an Agreement with the Chinese company and based on their complete design & drawings, set up a Blast Furnace at Raipur which was commissioned in 1996 and thereafter with the passage of time, ultimately it has become an Integrated Steel Plant of around 1 MTPA capacity producing Alloy Steel Bars and Rods from 5 mm to 40 mm in coils and thereafter, upto 100 mm in Bars. The entire production at the Steel plant is for auto-components and forging machines.

An active member of various Industrialist forums, he was the past President of Vidarbha Industries Association (VIA) and Confederation of Indian Industries (CII)-Vidarbha Region among others. He was the founding member of the Indian Institute of Foundrymen (IIF)– Nagpur Chapter and continues to be its Life member.

Shri B L Shaw is actively associated with a number of philanthropic organizations and is committed to the cause of social uplifting of the under-privileged. He had dedicated himself to providing best of medical care at reasonable cost to the socially deprived. Shri Shaw is associated with Rastrasant Tukdoji Regional Cancer Research Centre and Hospital and an active member of its Governing Council.

Basant lal Shaw is the founder chairman of Akhil Bhartiya Kalchuri samavargeeya mahasabha which is the consorcium of various communities in India having same root. This organisation is instrumental to build contacts and harmony among various communities having same culture and same historical roots.

The Kalachuris, also known as the Haihayas, were an ancient people known from the Epics and Puranas having several branches in different parts of India. In south India they are known as ezhavas, billavas, idigas etc. And Shri basant lall Shaw is leading the Kalchuris all over the world.

Kalchuris strongly believed in equality of human kind and strictly practiced this ideology and because of this, the mentors of caste system (chathurvarnyam)   defeated them an ousted from their own empires and spread all over India through the ages. The greatest ever leader of kalchuris was Karthaveeryarjuna who was killed by the Brahmins.

There are many evidences in the history that the    Karchuris are among the first to  develop the technology of steel melting in India which is continuing through the ages and Baant Lall Shaw’s ventures are continuing that great tradition.    like Neco Group.

Neco Group under  the leadership of Basant Lal Shaw as its chairman  continuously achieves economic value by optimizing resources through operational excellence, powered by technology, driven by innovation, creating delight and to be a globally admired organization that enhances sustainable industrial and business development and be the global benchmark in the field of Steel Plant products, Iron & Steel castings, Ferrous & Non-ferrous valves and services, Ceramic products, Defence Equipments.

Mission of Shri B L Shaw  Sustainable Growth and Return on Investment by continuous improvement of Human Resource, Environment, Technology and Product.  NECO Group of Companies  intend to achieve   a culture of constant product innovation & process improvements, nurturing human capital through training, education and exposure, providing opportunities for growth & development,  fostering team-work and mentorship,  developing leadership capability and above all work with Passion, Pride, Transparency.

Being a responsible corporate citizen  it is the company’s duty  to giving back to the environment  itd glory by  adopting cleaner and greener technologies, providing a safe and healthy work environment, Caring for the communities  and demonstrating high ethical standards.

Shri Basant lall Shaw is the leading light of Kalchuris all over the world and a role model for Industrialists anywhere.  He strongly believes that education alone can change the forte of the under-privileged. He is associated with various non-governmental social organizations (All India Jayaswal Mahasabha, Jayaswal Shikshan Samiti) and various other organizations providing technical education at reasonable costs to the masses. He is a strong believer of Sree narayana Guru and very much influenced with Guru’s ideology and views. He motivate the people to practice the way of life with ‘Be Educated and Liberated; Be organised and strengthen’  and ‘one caste , one religion, one god for the mankind’.

posted by 

S.SALIM KUMAR

kurumpakara