From a small village in India to running a multinational, the incredible journey of Samsonite’s Ramesh Tainwala
Ramesh Tainwala, who this week resigned as the CEO of Hong Kong-listed Samsonite, started off as a small commodities trader in the 1980s, and built his vast retailing empire after cashing in on one opportunity after another
In 2012, Ramesh Tainwala was asked what the greatest challenge facing Samsonite was. “Managing the expectations of shareholders,” the then CEO of Samsonite said. In 2018, that line counts as an understatement.
Tainwala this week resigned from Samsonite after the company was forced to deal with a report by US short-seller Blue Orca Capital that alleged among other things that Tainwala had overvalued a deal to buy luxury luggage brand Tumi, had faked a doctorate on his résumé, and was guilty of massaging Samsonite’s books via a network of related party transactions with entities owned by his wife and son.
The report also alleged that Tainwala and Samsonite had developed a habit of gaining growth through acquisition. “Companies like Samsonite buying growth through expensive, debt-fuelled purchases and playing accounting games with the acquisitions are like drug addicts,” read Blue Orca’s report.
The fall from grace is a harsh denouement for a man once hailed in Indian media as an example of successful entrepreneur – a man who grew up on a humble farm to reach the heights of CEO of an international corporation.
