Who is Ramamurthy Thyagarajan? Social entrepreneur with Rs 87,000-crore empire, transferred Rs 6,210 crore to his employees

Being a social entrepreneur is rare, but those who succeed create value far beyond money as they make a greater impact on people. Tamil Nadu born Ramamurthy Thyagarajan has led an exemplary life as he believes in giving back to the society. Founder of the Shriram Group, R Thyagarajan built a massive empire of Rs 87,000 crore and gave out millions to his employees.

At 86 now, Thyagarajan gave almost all of his shareholdings, his personal fortune, of Rs 6,210 crore, to his employees and only a decent house for himself.

Who is Ramamurthy Thyagarajan?

Thyagarajan, born in the late 1930s, grew up in a humble family and was highly influenced by socialist ideals that shaped his thoughts. He started his career with insurance, working for well-known companies before starting his own venture at the age of 37.

He started the Shriram Group in Chennai with AVS Raja and T Jayaraman in 1974. However, their goal was not to make huge profits but to offer financial help to those who struggle to rely on banks for financial services. They started with chit funds and offered finances to truck drivers, small business owners, and rural borrowers without formal credit histories.

How did Shriram Group expand?

Believing in offering financial services to the low-income groups making risk assessment a priority, he expanded the Shriram Group from a small company with limited operations to a big firm involved in lending, insurance, and consumer finance. Amid expansion, the Group boasted over 30 companies, more than 100,000 employees, and served 23 million customers in 2020s.

At this time, its main arm, Shriram Finance Limited, was valued at around Rs 86,500 crore. Thyagarajan’s focus was always on inclusivity. The company specialised in vehicle loans for commercial trucks, an area to which banks did not provide financial service citing risks. There the company became a boon in this sector.

Under his leadership, Shriram ventured into life and general insurance through partnerships such as with South Africa’s Sanlam, while also expanding into housing finance. By 2025, the group’s assets under management had crossed ₹2 lakh crore, cementing its position as a major non-banking financial services player.