Best CEOs: Meet Timken India’s Sanjay Koul, the man who puts the planet first, people second and profits third

Growing up in Kashmir, Sanjay Koul spent his childhood surrounded by the breathtaking beauty of the valley nestled among the majestic Himalayan mountains. The area is also notorious for testing one’s perseverance during the harsh winter months. As he grew older, he developed a deep appreciation for sustainability, a sense of community and deep resilience—values that he still holds dear as Chairman and Managing Director of Timken India, incorporated in 1987 as Tata Timken Ltd (TTL), a joint venture between Tata Iron and Steel Company (Tisco) and The Timken Company, a world leader in tapered roller bearings. (In 1999, Timken acquired from Tata Steel its 40 per cent stake in Tata Timken Ltd and the name of the company was changed to Timken India Ltd).

Koul has seen Timken India—which manufactures engineered bearings and power transmission products—evolve from its early days. He joined the company just before it commenced commercial production at its Jamshedpur plant in March 1992; in fact, he helped set up the plant. “The way manufacturing was done 30 years ago is different from how you do manufacturing today. [In] those days, nothing was digitised. Now, manufacturing plants have process automation, digitisation, robotics, etc. for each of the processes. Manufacturing has changed its shape but has not changed its DNA,” he says. “Today, efficiency has become key.” In the past one year, Koul has spearheaded the company’s adoption of robotics and process automation. “Today, we are digitally connected to our suppliers and our customers. It is very tough for CEOs to function today without tech. I should know things like Twitter, SAP, LinkedIn. People who will not adapt will pay a price,” he says.

The Timken India strategy involves not putting all eggs in one basket. While automotive is one part of its operations—especially heavy trucks, tractors, excavators, etc.—the company is also heavily focussed on serving the railways as a locomotive partner. Apart from that, the company is also involved in steel- and mining-related manufacturing. “We are actually in a fragmented market across the board. The only places in the auto sector where we don’t play are the two-wheeler market, the three-wheeler market, and the low-volume passenger car market. Out of our total kitty of sales in India, automotive would be 20 per cent,” he says.

While Timken India is not heavily dependent on automotive, Koul, the winner in the Auto & Auto Ancillaries category of the BT-PwC India’s Best CEOs ranking, considers it a very important segment for the company. According to him, the company’s strength lies on the design side and represents the India-US relationship very well. “India and America are natural allies and our company is a testament to that long-standing relationship. Both these nations can do a lot of business together. America has a lot of design potential, while India has youth on her side. India will only become great when we will become a design powerhouse; we don’t want to be a sweatshop. This relationship will only blossom in the future,” he says pointing to the India-US flags kept on his office table in Bengaluru’s Electronic City.

As a leader, the question of growth versus profitability was never a tricky one for him. “The mantra for us is profitable growth. Growth without profitability? We don’t play that game. That’s why we don’t play in the two-wheeler market where there’s huge volume but it’s a commoditised market. Timken loves a market where there’s core engineering involved; for example if you want to do deep-sea drilling. We like to play in this market because it’s a tough market and profitability is going to come if we become the only ones to crack it,” he adds.

Koul doesn’t shy away from accepting his mistakes, a mark of a good leader. “Last year, there was a huge crisis of steel. We could have taken some early bets and purchased steel and kept them as inventory which we did not do. Currently, the whole industry has to pay a heavy price of producing steel at a high cost,” he said.

He bets on India’s huge headroom for growth. For bearings, he says, India is only a $2-billion market compared to China’s $20 billion. His belief in the India story is unshakable. “India is going to grow, it’s a no brainer. Only 15 per cent of our economy is manufacturing, you can only imagine how much growth is going to come,” he says.

Koul, who is usually the first one to come to office and the last one to leave, is an ardent believer of ethics and clean play whether it’s his work or personal life. Neither would he ever cheat a customer nor trade anything in place of his family time.

“Family helps you stay grounded as a leader. A cup of tea in your garden with your family is as great as going to the Alps. It’s all about a state of mind. Tea with my wife is a ritual, that’s usually how I start my day. I’ve not gone on long holidays but this is something that I’ve not traded for anything,” he says.

Going forward, he wants Timken India to outgrow the market. “I want to double the company’s revenues in the next five years. I want to make Timken the most preferred brand in India. That is already happening in railways, I want to take that across the industry. The capability that we’ve accumulated in the last 15 years, I want to take advantage of that engineering-wise, from new design perspective. Yes, there will be challenges but need to keep a sharp focus,” he says.

Drawing on the lessons he learnt in the mountains, Koul approaches every challenge with a keen eye for detail and a determination to find creative solutions. “As a leader, you have to put the planet first, people second and profits third.”

@PLidhoo