Cherukuri Ramoji Rao: A Titan Of Indian Media And Business Innovation

You may not find his mention in any of the global business rankings but for many in the Telugu states and beyond, Cherukuri Ramoji Rao is a household name that signifies the man with the golden touch, who impacted their lives in ways more than one.

Synonymous with entrepreneurial brilliance and media innovation, Rao’s journey from a humble rural background to a formidable business tycoon is an inspiration and testament to his indomitable spirit and visionary leadership.

All of his businesses—be it Margadarshi Chit Funds, his first entrepreneurial venture, the Eenadu newspapers, or his pickles and jams business, Priya Foods—all of them addressed the core needs of people, more importantly of the rural masses, perhaps a result of the agrarian moorings of his and his family with a deep understanding of and respect for agriculture and community welfare.

The launch of Eenadu, the Telugu newspaper, in 1974 was Rao's most significant venture revolutionising news dissemination in South India. How the newspaper itself came into being is a story by itself. An enthusiastic consumer of political news, he is said to have been irked by the non-availability of a newspaper on a trip to Vishakhapatnam, where he had kicked off his hospitality venture, the Dolphin Hotels. Seeing an opportunity, he decided to set up Eenadu from the very city, even though he was told there was hardly any readership for it. Rest, as they say, is history.

His innovation with district-specific editions bringing local and national news closer to the Telugu-speaking was the most impactful innovation. So much so, Eenadu’s success and mass readership paved the way for the accidental media baron wielding a disproportionate influence on several fronts, most importantly on state politics.

How he came about backing the Telugu Desam Party Founder, N T Rama Rao, is yet another story. Vexed with the Congress party’s strangle hold on Andhra politics and facing issues with the local government, Rao decided to prop up an alternative. He moved coverage of N T Rama Rao from the inside district pages to the front page and, in fact, launched a campaign backing NTR’s big power. His signed front page editorial in Eenadu, professing support for NTR is unheeded for a newspaper owner coming out openly with his political colours. A similar second editorial, after NTR’s electoral win and setting up as Andhra’s 10th Chief Minister, stating support would, henceforth, be issue based and on performance of the new government, is yet another instance of his principled stand.

Another instance of his influence and the power of the Eenadu was most visible in 1984, when NTR was removed from office by Governor Ram Lal and Finance Minister Nadendla Bhaskara Rao, a former congressman, made the CM. Ironically, he is also said to have been a key strategist for incumbent CM of residual Andhra, N Chandrababu Naidu, who unseated his father-in-law in the August 1995 coup.

While known for Eenadu and the Ushakiran Movies—under which banner he produced nearly 100 films, many of them blockbusters—Rao’s vision wasn't limited to the media and films alone. In 1980, he had founded Priya Foods, offering a range of products, including pickles, condiments, and edible oils, which quickly became household names across India. His foray into the hospitality industry with the Dolphin group of hotels further highlighted his versatility as a businessman.

But it was with the venture into television that Rao’s name and influence spread beyond the borders of Andhra Pradesh. In 1995, he further expanded his media empire with the launch of the ETV network, initially in Telugu, but subsequently broadcasting in 11 other languages including Hindi, Bangla, Marathi, Kannada, Oriya, Gujarati, and Urdu. ETV's diverse programming, from daily soap operas to informative shows like "Annadata," which focused on agricultural practices, set new standards in Indian television.

The media turned out to be his first love, not necessarily as a business. However, the Ramoji Film City, set up in 1996, the pinnacle of Rao’s innovative ventures, was meant to be all business. Spanning 1,600 acres, it is Asia’s largest film studio complex, providing a livelihood to thousands and serving as a major tourist attraction. Ramoji Film City has been instrumental in promoting Indian cinema, offering state-of-the-art facilities for film production and hosting a myriad of entertainment options for visitors.

But, for all the success stories, Rao’s life has not been devoid of controversies, including legal battles, particularly those involving his first business, the Margadarshi Chit Fund and Finance, which have been in the eye of the storm with various investigations and legal cases foisted on it. The Margadarshi saga, though challenging, displayed his ability to navigate adversity with unwavering courage.

People who collaborated closely with him will tell you Rao was not the gentle and docile soul that he appeared to be. Always a hands-on manager, working with him was a great learning experience for many who pitched their wagon to his fortunes. So much so, notwithstanding the reputation of the Eenadu group not being a great paymaster, Rao commanded lifelong loyalty from his minions.

One not to fall for praise and accolades, the Padma Vibhushan, India's second most prestigious civil award, was one of those rare recognitions he accepted.

With a business network stated to be nearabout $5 billion, Rao's strategic acumen in monetising his businesses was seen, when for the first time he sold a stake in all ETV channels, keeping the Telugu news channels with himself. While it said his hand was forced to offload this stake, a further divestment earlier this year resulted in the single-largest investment in Indian media. Blackstone Group pumped in $275 million to acquire a stake in Ushodaya Enterprises Ltd., the holding company that manages Rao's media assets at an enterprise value reportedly of $1.06 billion.

Over the past few years, Rao had taken a backseat in the management of the Eenadu group and other businesses due to ill health, say insiders. But the remarkable journey from a farmer's son to a media mogul and business innovator leaves an indelible mark on India's entrepreneurial landscape. His presence will be missed both on the media landscape, as also the political sphere in the Telugu states.

Chitti Pantulu is a Hyderabad-based journalist and has covered business and technology trends for the last 25 plus years. 

The views expressed here are those of the author and do not necessarily represent the views of NDTV Profit or its editorial team.