On The Run

The chairman of Edelweiss talks about his journey, from scarcity to abundance—one marathon at a time—and why business is about endurance

- Arun Janardhan

Rashesh Shah, chairman of the financial services conglomerate Edelweiss and an avid long-distance runner, was participating in a run in Khandala, near Pune, in 2015 with a specific target. He wanted to complete the distance, which included a 16km uphill stretch, in under two hours. Headphones on, he was focused, not interacting with anyone, and finished in two hours, three minutes. On the way back home to Mumbai, he was upset that he didn’t achieve his target. But by the time he got back, his outlook to running—and running a business—had changed, "from scarcity to abundance kind of a mindset," he says.

The next year, Shah was a "happy runner," agreeing to selfies, having conversations with other runners, and still pushing hard on his target. He finished in two hours, four minutes. "I lost one minute," he says, weighing in on its significance, "but I gained so much more in enjoyment. The same applies in business. We get so caught up in the outcome, the stock price, the market cap, which are all important because you need to reward your shareholders." But a positive frame of mind helps better in dealing with issues, he says.

The 30-year-old Edelweiss, with a diversified portfolio of seven independent businesses, including EAAA (alternative asset and investment management), mutual funds, asset reconstruction, corporate lending, Nido Home Finance, Zuno General Insurance and life insurance, has a market capitalization of nearly ₹10,000 crore. The group employs nearly 6,000 people across over 250 offices, serving around 9.1 million customers, and managing over ₹2.2 trillion worth of assets.

Over the next year, the company plans to list its seven businesses on stock exchanges and eliminate debt, Mint reported in October. This will start with its mutual fund division, Edelweiss Asset Management Ltd, and EAAAM India Alternatives Ltd (previously Edelweiss Alternate Asset Advisors Ltd), each valued over $1 billion, the report said.