Laxmanrao Kirloskar: A pioneer of Indian machine-tools industry

In 1907 Henry Ford was busy designing his 9^th car model to be named Model T coming after the 8 models – A, B, C, F, K, N, R and S. Around the same time another gentleman named Laxmanrao Kirloskar in Belgaum, India was getting ready to launch his 2^nd product – iron plough. Ford was creating a history in the world while Laxmanrao was doing the same in India. Why? Because until then no Indian had started a machine-tools product development business in India. How did Laxmanrao, a J J School of Art dropout, go about pioneering a machine tools industry in India? Let’s explore in this article.

Laxmanrao was born in 1869 (same year as Gandhi) and was fond of two things: mechanical objects and painting. Against his father’s wish and with financial support from his eldest brother Ramuanna, Laxmanrao joined J J School of Art in Bombay in 1885. Unfortunately, he had to quit after 2 years as he was found to be partially color-blind. He gave up painting but continued to study mechanical drawing at the institute. This skill came handy and lead him to a position of Assistant Teacher of Mechanical Drawing at Victoria Jubilee Technical Institute (VJTI) on a salary of Rs. 45 per month.

At VJTI Laxmanrao developed a habit of reading American Machinist, Scientific American and Foundry. He worked at the institute’s workshop and learnt to install, operate, repair, dismantle and reassemble various machines. He took pride in in describing himself as a 'ghisadi' - a blacksmith. He also started accepting jobs for installing and repairing machines. Soon he was called Prof. Kirloskar and Principal Mr. Phythian appointed him to teach ‘Steam’ – perhaps the equivalent to ICT of today. Sometime in early 1890s Laxmanrao started bicycle dealership – he would buy bicycles in Bombay and send them to his brother Ramuanna in Belgaum where he would sell them. For a cycle of Rs. 700 to 1000 Ramuanna would also charge Rs. 15 for teaching how to ride.

A turning point came in 1897 when Laxmanrao was passed over for promotion at VJTI in favor of an Anglo-Indian. Laxmanrao quit VJTI and joined his brother at the cycle shop in Belgaum. Soon the duo discovered another luxury item of interest to the rich in and around the town – Windmill. Soon they acquired a dealership from Samson Windmill of USA and went on a vigorous sales drive. They sold so many windmills in a year that Samson folks gave one free to the brothers. Like any luxury good, they soon ran out of customers.

In 1901 he was contracted by the king of a small princely state of Aundh to construct an assembly hall. However, within no time the king died and bitter disputes followed for succession. Laxmanrao’s work came to a grinding halt and his investments locked up. He had to return back to Belgaum. This setback got Laxmanrao thinking for what he could do for a steady income. And he thought of making his own products that would appeal to mass market - that of farmers.

The brothers had continued to subscribe to the three American magazines and Ramuanna used to meticulously file and index them. They also received mail-order catalogues from the USA. In one of the catalogues, an illustration of a fodder-cutter caught Laxmanrao’s eyes. The description said that the cutter would chop fodder into fine bits, including stems and roots which cattle normally reject. He ordered one and tested it. Finding that it worked well, Laxmanrao decided to copy it.

He built a small hut as an extension to his shop, bought a few tools and fixtures and started to make fodder-cutters, buying the castings for them from Bombay. He advertised in the newspapers in the local language. In 1901 this was the first Kirloskar product. As sales picked up, Laxmanrao bought an engine (2 ½ HP), a small lathe, a drilling machine and a small emery grinder, all of which he installed in the hut.

Like Henry Ford, Laxmanrao would also pioneer establishment of an industrial township in India called Kirloskarwadi in 1910 (although on a much smaller scale). Kirloskar Brothers would remain a leading industrial house in India throughout most of the 20^th century. However, it would take India another hundred years to launch its own “model-T” called Nano that would catch world’s attention. And it would be done, not by Kirloskars but by Tatas.

Source: Cactus & Roses: An autobiography by Shantanu L. Kirloskar (Laxmanrao’s son).

Space tourism: A peek into Sir Richard Branson’s mind & method

Prof. Jagdish Sheth of Emory University delivered a great speech in 2005 in a jam-packed auditorium at Sasken, my ex-employer. He talked about various tectonic shifts that are happening around us. Someone asked Prof. Sheth during the Q&A, “What do you think of space tourism?” Everybody laughed. Sheth answered, “I wouldn’t laugh. Richard Branson has entered the game. He is not a fool.” I didn’t know much about space tourism and Richard Branson at that time. But a question came to my mind, “Is Richard Branson really serious about this? Or is he one of those crazy rich guys who don’t know what to do with their money?” Recently I came across Richard’s book Business stripped bare in which he has narrated the process that went behind his investments in space tourism and formation of his venture Virgin Galactic. How did Richard go about investigating and investing in space tourism? Let’s explore in this article.

After the recommendation of Margaret Thatcher, Gorbachev invited Richard for a meeting at Yalta on the Black Sea. A few days later Richard was given a VIP tour of Star City at Baikonur in Kazakhstan. This was the secret world where Sputnik satellite, the Vostok, Voshkod and Soyuz manned missions were designed. This was where Yuri Gagarin blasted off in space in April 1961. Richard was offered once-in-a-lifetime opportunity - To be the first space tourist in the world. Price tag? Over $30 million. Richard declined. Dennis Tito, an engineer at Jet Propulsion Laboratory, became the first civilian to go into space in 2001. Another half a dozen have followed suite since then with a cumulative ticket price of $200 million.

During the Kazakhastan visit curiosity bug bit Richard. Can the price tag be lowered significantly? Since then he had been keeping tabs on anything and everything to do with going into the space. In 2002, Furton one of the leading space consultancies predicted that from 2011 there will be 2000 tourist astronauts a year. And as the costs come down by 2021 there will be 15000 a year and revenue potential will be $700 million a year. Richard felt that Furton study is pessimistic. He set a target price of $100,000 for a space tour.

The tipping point came with the announcement of Ansari X Prize by space entrepreneur Peter Diamandis 1996. The X Prize set a simple challenge: carry 3 people 100km above the Earth’s surface, twice within two weeks. The contest had 29 entrants but only three serious contenders. Of these, only one managed to get serious funding – SpaceShipOne or simply SS1. SS1 was backed by Microsoft co-founder Paul Allen.

SS1 was started by Burt Rutan, the designer of Voyager, the largest all composite aeroplane ever built. It was made from glass, graphite and aramid and bonded with epoxies and resins. SS1 design extremely fault-tolerant and very green. Exactly how green? Well, a flight into the space and back would release less CO2 than equivalent of a person flying from London to New York and back. Contrast this with NASA’s Space Shuttle which has the same environmental output of the population of New York over the average weekend!

On 17 December 2003 SS1 broke through the sound barrier during its first manned test flight. On 21 June 2004, Mike Melvill flew SS1 above 100km altitude. This was space. After space flights on 29^th Sept and 4^th Oct 2004, SS1 won the Ansari X Prize. By then $100 million had been spent on the program. On 27 July 2005 Virgin Galactic and Burt announced a partnership where Burt’s company would undertake all the R&D and certification of the spacecraft and Virgin would do the marketing.

Wikipedia says - Richard unveiled the rocket plane on Monday 7th December 2009. SS2 was presented to the world in the Mojave desert, in California. The vehicle will undergo testing over the next 18 months before being allowed to take ticketed individuals on short-hop trips just above the atmosphere. It is expected to carry six passengers with a total sub-orbital flight of 3.5 hours. The weightlessness will last approximately 6 minutes during which time passengers will be able to release themselves from their seats and float around the cabin! Price tag? $200K with a $20K deposit.

Are you game?

The myth of innovation DNA

My business is based on an assumption that it is possible for any organization to become more innovative – irrespective of its size, sector, culture and leadership. Hence, when I read a senior leader say, “Either you have an innovation culture or you don’t” – I realize it is time to introspect my business assumption. Could my assumption be wrong? Moreover, when the remark comes from Justin Rattner, CTO of Intel, you know you can’t take it very lightly. Is innovation really a DNA which either you have it or you don’t? Let’s explore this question in this article.

To understand the context better, let’s see what question Justin was asked in an interview last Tuesday and what he said. Economic Times asked Justin, “How seriously does Intel take innovation?” Justin said, “Intel spent $5.7 billion on R&D in the downturn year 2009 – approximately the same amount as the year before. However, R&D investment is not sufficient for a successful innovation practice. That latter depends upon developing a set of cultural norms that welcome and reward innovation. In other words, the company must display an intellectual curiosity that challenges its employees to find a better way to do each and every function of the company. Innovation can’t be selectively applied. It is either part of your corporate culture, like it is at Intel, or it’s not”.

I like what Justin is saying about the importance of innovation being a cross-functional process. You can’t say that we have a great research department, we spend a lot of money on R&D and hence we are bound to be very innovative. Perhaps you have a weak marketing or perhaps your R&D and marketing don’t talk to each other. However, it is the claim in the last line that makes me jittery. Here Justin says, “Innovation is either part of your corporate culture or it isn’t”. Is innovation culture really a “binary thing” – on or off?

Andy Grove was asked in an interview in 2007 to explain what “Creosote Conundrum” meant for Intel. Creosote bush is a desert plant found in Arizona. Its characteristic is that it drips poisonous resins around it so that no new plant can survive and all the water comes to the creosote bush. The analogy was applied to Intel to indicate that all the R&D money & management attention flows into microprocessor business and it acts like a creosote bush. Hence no other new business opportunity survives under it. However Andy is not convinced of the analogy and says, “I have a vague nagging doubt whether creosote bush is a good analogy to what was happening there anyway. What if no other plant (other than microprocessor ideas) was coming out? Did Intel have a good enough innovation culture – whatever that means? Too many unproven and unsubstantiated assumptions” Perhaps Justin knows something about Intel that Andy Grove didn’t.

It is easier to look at a company that has published how its innovation practices evolved over a century – 3M. It took 3M more than a decade to understand the importance of quality assurance. It took another 20 years before someone assessed the rate of success for its new product introduction and established a one man innovation department. Later it learnt how to develop innovation platforms and technical career paths.

Perhaps Justin has discovered a switch that turns your innovation culture from off to on. Until we find more about it, I will stick to a simple innovation dashboard, an ecosystem view and a method of innovation that has evolved from Edison to Lafley over the last 130 years.

Jyotiba & Savitri Phule’s girl school (1851): A radical innovation

Think of radical innovation and you are likely to conjure up images of telephone, electricity, airplane, computer, car, Internet etc. These are indeed great innovations. But not all radical innovations are anchored in technology. Girl school started by Jyotiba Phule in 1851 in Pune was radical by whichever definition of “radical” you use. Jyotiba’s wife Savitri was the headmistress of the school. She had to use two saaris; one for the road during which cow dung and mud would be thrown at her. And the second saari was for the school use. What were the challenges faced by Jyotiba, Savitri & team while running the school? And how did this innovation come about? Let’s see a few insights that come out from the report of the second annual examination of the girl school held on 12^th Feb 1853. It was attended by 3000 people including 20 British patrons and 30 notable Indian citizens of the times.

Let’s start with some data. The school had 9 girls on the first day when it started and had expanded to three schools all in Pune with 237 girls on its roll by 1853. The average attendance was a little less than 200 (84%). Salary expenses were Rs.760 and administrative expenses (rent, books, benches, etc) were Rs.610. This includes prizes in the forms of books worth Rs.177. The school got Rs.900 from government (Dakshna fund) and collected Rs.1072 through subscriptions. The report mentions – The progress exhibited by girls was far greater than that made in any Boys’ schools during the same period.

If absenteeism and performance wasn’t a big challenge then what was it? One issue was that the girls were “loaded with valuable ornaments” and had to be escorted to and from school by the peons. But the biggest obstacle comes out in this paragraph – A few of the girls who were then at the head of their respective classes have ceased to attend in consequence of their marriage, and the whims and caprices of their fathers and mothers-in-law. It will thus be seen that the custom of the early marriage offers the strongest opposition to female education to this country. The committee, therefore, proposes introducing into the schools under their management, the system of stipendiary scholarships, to induce the poorer parents or fathers and mothers-in-law, to allow their little girls to attend the schools. This is, however, a partial remedy.

Where did the money come from? Unfortunately, not much support came from wealthy Indians. Education for girls especially from lower-cast was against Hindu scriptures. Sponsorship came primarily from the British well-wishers like Sir Erskine Perry, Ex-Chief Justice of Supreme Court, Bombay, Major Candy, Principal of Poona College and E. C. Jones. Slowly a portion of Dakshna fund, originally meant for Brahmins only, was being given to the school.

How did they sell the concept to the moms? We don’t know. But perhaps we can guess it from the following sentence – The prejudices against teaching girls to read and write began to give way to the general desire of mothers to get rid, during the time of work, the annoyance of their little ones. So if you were to prepare an ad campaign for the school what would you do? “Hassled by the troubling little girls at home? This is your best chance, send them to school!”

Sources:

Mahatma Phule samagra vanmaya (marathi) – Complete works of Mahatma Phule compiled by Y. D. Phadke, published by Govt. of Maharashtra, 1991.

Wikipedia on Jyotiba Phule and Savitri Phule.

Mahatma Jotirao Phooley, Dhananjay Keer (Google books)

India as a hub for low-cost experimentation: my favorite theme from 6th India Innovation Summit 2010

India is known worldwide as a hub for low-cost execution especially in IT and BPO sector. But India as a hub for low-cost experimentation? Well, if some of the stories from 6^th India Innovation Summit 2010 held at Taj Residency in Bangalore last week (17-18 Jun) is any indication, it certainly holds a promise. What kinds of experiments are happening in India? And where do we need to do more work? Let’s explore these questions in this article.

Microsoft started a research lab in India in 2005 and Dr. Anandan MD of Microsoft research presented their charter in the first India innovation summit held in June 2005 at Leela. In the fourth India Innovation Summit held in 2008, Assistant MD of Microsoft Research Kentaro Toyama presented their work in the field of education. In one of the projects, a visiting research scholar, Udai Pawar (son of NIIT’s Rajendra Pawar) was trying to address a typical challenge in India where you have multiple children crowding over one computer screen. He asked, “Can we attach multiple windows and mice to a single computer?” Learning from this project has morphed into a Microsoft product called multipoint server 2010 which was launched this year and guess what is the initial target market for the product? The USA. Also it is worth noting that the early prototype was demonstrated in 2006 and it has taken Microsoft 5 years to go from research project to a finished product. Innovations typically have long cycles and jury is still out whether the multipoint server will be a success. But the point is India did contribute as a low-cost experimentation center in this story.

From education let’s move to healthcare, a sector that is craving for innovations in India and abroad. Preetha Reddy, MD, Apollo Hospitals mentioned a number of experiments in this field. Today India does around 2000 telemedicine interventions per day, perhaps the highest in the world. We serve people not only in India but also from Africa, Bangladesh, Myanmar, Malaysia and Sri Lanka. Clinical trials for stem cell research are happening in India. Preetha mentioned that a low-cost 150 bed high-end acute-care hospital can be set-up in a smaller city serving 100-200 villages nearby with less than Rs.20 Cr. Folks from China, Africa and Korea are visiting to find out how this low-cost model works.

So, what’s missing? Personally, I feel a disciplined approach to low-cost experimentation is missing. Hardly anyone at the conference spoke about the cost and speed of experiments they are conducting and how it can be improved further. Systematic experimentation needs creation of sandboxes or innovation platforms. Thomas Edison supervised 2774 experiments on the electric lamp during the spring of 1884! The point is not that the number was 2774 but that Edison was rigorous in tracking the costs and speed of experiments he supervised. Hope to see more of such rigor going forward in Indian organizations.

Related articles:

A look at Tata Nano through “Dynamic innovation sandbox” lens

4 levers of systematic experimentation: story of Wright brothers

Jamsetji Tata’s method of innovation

Imagine you hit upon what you think is a great idea this morning during the shower. You tell it to your friend over a coffee in the morning or your boss during your hi-hello encounter and you don’t particularly get an encouraging reply. But you are still optimistic. And you say, “OK. Let me check with a few more people”. How long do you think you are likely to stay with it? A week? a month? a year? a decade? Well, Jamsetji Tata stayed curious with the idea of Steel Plant for 17 years! I call this stamina – curiosity stamina and Jamsetji Tata had tons of it. In fact, it was a hallmark of his method of innovation. Let’s look at three things I find most interesting about Jamsetji’s innovation style. We will start with the curiosity stamina.

In 1882 a German geologist, Ritter von Schwartz, wrote a report that the best situated iron ore deposits were in Chanda District, not far from Nagpur where Jamsetji had his Empress Mill. Warora nearby had coal. To start with Jamsetji took samples of both to Germany for testing. The coal was found unsuitable. The mining terms offered by the government were too restrictive. For the next seventeen years Jamsetji kept track of minerals in India. In 1899, Major Mahon gave a report that India was ready for the steel industry. Mahon suggested good quality coal from Jharia coalfields in eastern India and iron ore from Chanda & Salem district, Madras Presidency. Lord Curzon liberalized the licensing system. Jamsetji lost no time to make his second foray into steel. I like what Einstein has said, “It's not that I'm so smart, it's just that I stay with problems longer.”

How did Jamsetji get ideas? By wandering around … not only his factory or city, but the entire world! Jamsetji traveled extensively from Far East in Japan and Australia to west in Europe and US. He visited Japanese silk industry, steel towns in the US, hydroelectric plants of Westinghouse at Niagara Falls and industrial exhibitions at Germany. Everywhere he went, he asked, “Can we use this in India?” Wherever possible, he brought innovations home. He started a silkworm farm in Mysore based on Japanese techniques. He was the first to electrify his home and to equip it with latest in European plumbing. He was also the first Indian to own a gasoline car in 1901. That was 2 years before Ford Motor Company was founded! In an earlier article, I have articulated 3 sources of innovation: pain, wave and waste. If Mahatma Gandhi knew how to feel the “pain” of the masses, Jamsetji had mastered how to surf the next “wave”.

There was one thing common between Gandhiji and Jamsetji. It is to think “big” and “far”. Both were great systems thinkers. However, their approaches were diametrically opposite. While Gandhiji approached problems from grass root levels, Jamsetji approached it from the apex. He knew that if he can create a place where Vikram Sarabhai, Homi Bhabha, Satish Dhawan can be groomed, India at large will benefit. That is how IISc was born.

So tremendous "curiosity stamina", "constantly surfing the next wave" and "using the apex of the system as a lever" were 3 things I find unique about Jamsetji's method of innovation.

Source: For the love of India: The life and times of Jamsetji Tata, by R. M. Lala.

Related articles:

Innovations in Jamsetji Tata’s Empress Mills at Nagpur

Jamsetji Tata's vision of "University of Science" and Prof. Ramsay's experiment

Innovations in Jamsetji Tata’s Empress Mills at Nagpur

In R M Lala’s words Jamsetji Tata “launched his real career as a textile magnate” at the age of thirty five when he established Empress Mills in 1874. By then, he had visited China, helped his father start a trading firm in Hong Kong, spent four years in England keenly observing the textile industry and spent many Sundays at Dadabhai Nauroji’s house in London absorbing stimulating discussions on political reforms in India with stalwarts such as Badruddin Tyabji (the first Indian barrister in Bombay). What kinds of innovations did Jamsetji catalyze in Empress Mill? Let’s explore in this article.

In 1870s Bombay and Ahmedabad were the Lancshires of India. Jamsetji, perhaps at his dad’s suggestion, set out to put up his mill where the cotton came from. After getting his proposal for a land in Jabalpur turned down, Jamsetji went to Nagpur where he found a suitable land. Jamsetji hired two assistants: One, Bezonji Mehta, an uneducated self-made man who had learnt the art of managing in the railways. The other was an English technical expert James Brooksby (CTO?). Initially all the machinist and foremen were from Lancashire. Jamsetji ascribed the success of Empress Mill to these two men and tended to underplay his own role.

In 1883 Brooksby, while on home leave, came across ring spindles invented in America. Jamsetji bought two ring spindle frames and set his team with Brooksby to work them as an experiment. The stated speed of 6000 revolutions was soon exceeded and ring frame produced 9000 to 12000 revolutions. Ring spinning was yet to catch on in Britain. In fact, Jamsetji’s supplier Platts, who were at that time world’s largest supplier of textile mill equipment, refused to produce ring spindles and stuck to older technology – mule spinning. Jamsetji changed the supplier to Brooks and Doxey and replaced mule spindles with ring spindles. To perfect the technology, every defect was reported to the supplier. By the time Platts adopted the new technology, rivals had caught on.

Innovations at Empress Mill weren’t restricted to technology adoption. In fact, lack of skilled and semi-skilled labor was perhaps a bigger challenge. Workers would be absent for sixty days a year due to festivals and for several days during harvest times. Absenteeism was 10 to 20 percent a day. Jamsetji & team set about to make workers’ life easier. A Provident Fund Scheme was introduced in 1886 and pension fund was introduced in 1887. Accident compensation scheme was introduced in 1895. Most of these came before Factory Act of England making certain measures compulsory. Empress held an annual prize day were workers turned up in colorful holiday attire for performance recognition. As many as 1000 workers were called to the platform to collect prizes of gold and silver watches and chains, armlets, medals and bundles of cloth.

In Jamsetji’s words at the opening of the extension of Empress Mills in 1895, “We do not claim to be more unselfish, more generous, or more philanthropic than other people. But, we think, we started on sound and straightforward business principles, considering the interests of our shareholders our own, and the health and welfare of our employees the sure foundation of our prosperity”.

Source: For the love of India: The life and times of Jamsetji Tata, by R. M. Lala.

Related article: Jamsetji Tata's vision of "University of Science" and Prof. Ramsay's experiment