LEADING TO INFLUENCE & INSPIRE

Padma Jyoti, Chairman Emeritus of Padma Jyoti Group, has witnessed the evolution of his generational family business, and continues to learn and grow with the changing times. Born in Kathmandu, Jyoti spent much of his early years outside of Nepal, and has attended prestigious institutions such as the Indian Institute of Technology, Kanpur, and the MIT Sloan School of Management, USA.

His early involvement with the family business came naturally as it is deeply rooted in the Jyoti family’s tradition of entrepreneurship. Jyoti’s journey from engineering studies to managing the family legacy reflects his deep commitment to carrying forward the rich history of his ancestors while adapting to the changing business landscape. It just meant that he had to be more innovative, more determied and more successful.

The launch of the Padma Jyoti Group recently emerged on the foundations of a long-standing legacy of the Jyoti Group, but represents a new chapter in this family’s entrepreneurial journey. The group’s core principles – trust, respect, fairness, customer satisfaction and a strong commitment to positive change – guide every decision and interaction within the company. Padma believes that wealth should serve to improve the wellbeing of the family and community, rather than being the sole focus of the business.

Looking ahead, Jyoti is confident of the future which is built on a foundation of inclusivity and innovation. The group’s vision is focused on fostering positive change, empowering local entrepreneurship, and contributing to Nepal’s economic growth.

Padma Jyoti offers us insight into what quiet leadership is; with his level-headedness, intellectual persistence, and critical thinking, he demonstrates the power of action above noise.

In this edition of Business 360, Jyoti speaks about the reasons behind the formation of Padma Jyoti Group and the way ahead. Excerpts:

Could you tell us about your early days?

I was born in Kathmandu where our ancestral house is located. However, due to trade connections between India and Tibet in those days, I spent most of my early years in India, particularly in cities like Calcutta and Kalimpong. My schooling took place there, and later, I pursued higher studies. For my engineering degree, I appeared for the All-India Entrance Examination. Fortunately, I was selected and had the privilege of studying at the prestigious Indian Institute of Technology in Kanpur. After completing my engineering studies, I returned to Nepal and worked in our family industry for a couple of years. Subsequently, I went abroad again to pursue a Master’s degree at the MIT Sloan School of Management.

My early childhood was largely spent in India, but I frequently visited Nepal during holidays and festivals to stay connected with my family and heritage. Throughout my career, I have been deeply involved with our family business in Nepal, which has been the cornerstone of my professional journey.

 

How did you get into the family business? What was it like?

Coming from a business-oriented family, it was almost a natural progression for me to step into this role. In our tradition, there is an expectation to continue in business as we typically do not pursue other careers. If one is capable and prepared, it is understood that they will join the business and contribute to its growth and operations.

For me, this was a natural choice; I did not have to deliberate much about it. After completing my engineering and higher studies, I returned to Nepal, joined the family business, and began working towards its growth and expansion.

It was a great honour for me to join the family business, especially considering its rich and longstanding history that spans several generations. Continuing this legacy to the best of my abilities has always been a source of pride.

Of course, stepping into a business with a heritage of over 100 years comes with its own set of challenges. Adapting to modern times and embracing the advancements that have made life and business operations more efficient can be difficult. Balancing tradition with modernity and adjusting to the evolving business landscape is not always easy but it is a challenge I took on with determination and commitment.

Having witnessed transition at various stages of life first hand, what are your thoughts on adaptation and change that come with being part of a legacy business?

Our family business is a century-old legacy that has been nurtured over four generations. It all began with my grandfather, Bhajuratna, who established the Syamukapu firm around 1920 to facilitate trade between Nepal, India and Tibet. Over time, the business evolved into Jyoti Brothers during my father Maniharsha Jyoti’s generation, operating in both Nepal and India. However, more than 60 years ago, the brothers decided to split Jyoti Brothers, and my father went on to form the Jyoti Group in Nepal. Now, six decades later, we are once again restructuring the companies to adapt to the needs of the new generation.

Five years ago, our Padma Jyoti family came together to address the challenges of managing a family business in a modern and dynamic world. We sought to understand how other business families worldwide navigate similar challenges, and the insights we gained were both fascinating and invaluable. We learned that every family business fundamentally aspires to achieve three things: individual happiness, family togetherness and business growth. These three goals are interconnected; whichever one you prioritise, the other two inevitably become prerequisites. Aligning these three pillars is crucial for the harmony and success of a family business.

Managing a family business also introduces a unique complexity because members wear three distinct hats: Owner, Manager and Family Member. The challenge lies in identifying who is speaking to whom and in what capacity, which can lead to misunderstandings or conflicts. This is where family governance plays a pivotal role, providing a framework to align these roles and mitigate conflicts effectively.

Family governance is about building institutions that ensure the perpetuation and growth of the business, independent of individual family members. It emphasises alignment, accountability, adaptability and fostering a collective vision. To establish robust family governance, we began by exploring our family philosophy and developing a shared vision. This vision encompasses both family and business aspirations, focusing on core purposes, values and goals.

We then created comprehensive policies to guide privileges, responsibilities, education, mentoring, family bonding, employment, management structures, shareholder agreements and succession planning. Alongside these policies, we detailed processes that define family roles and establish clear channels for communication and conflict resolution. Finally, we set up structures such as a family council, a business board, a family fund and a dedicated family office.

After a thorough and soul-searching journey that involved all family members, we formalised our efforts by creating a family constitution. This document serves as our guiding framework, ensuring that our legacy continues to thrive with unity, purpose and resilience.

Tell us about the birth of the Padma Jyoti Group. What drives it? What are the core values? What is the vision going forward?

The birth of the Padma Jyoti Group represents the continuation of a long and illustrious legacy established by the Jyoti Group. This new chapter is not merely a rebranding but a reaffirmation of the values and vision that have guided our family for generations. At its core, the Padma Jyoti Group is driven by a deep commitment to unity, purpose and progress, rooted in the values agreed upon by the Padma Jyoti family.

Our family holds steadfast to the belief that we are one entity – One for All, All for One – and that conflicts must be addressed with a heart at peace, never with a heart at war. Our primary purpose is to ensure that the family remains united, with each member leading a happy, meaningful and fulfilling life. We also recognise that while wealth is an important resource, it cannot be the sole objective, especially if it comes at the expense of everything else. For us, the purpose of wealth is to foster happiness, fulfillment and wellbeing for all. Strengthening and sustaining our businesses through successive generations is essential to achieving this purpose.

An important pillar of our family ethos is inclusivity. We have recognised the critical role of active participation from every family member – spanning all generations, both men and women. This includes encouraging the involvement of daughters-in-law and implementing governing policies that ensure daughters also have a voice. Inclusivity is not only a value but a driving force for unity and shared purpose within the Padma Jyoti Group.

The core values of the Padma Jyoti Group were identified after extensive introspection and discussion among shareholders and management. These values encapsulate our approach to doing business and our relationship with stakeholders. They are:

• Trust, Respect, and Fairness towards all.
• Customer satisfaction as our first priority.
• A strong commitment to driving positive change.

Our vision for the Padma Jyoti Group is clear and forward-looking. We remain dedicated to fostering positive change, supporting local entrepreneurship, creating meaningful employment opportunities, and contributing to the enrichment of Nepal’s future. This vision is a testament to our enduring commitment to progress, excellence and empowering our community.

The future of our family’s legacy and the identity of the Jyoti name are secure. As we have done for the past century, we will continue to serve the economy, society and the country with integrity, humility and an unwavering dedication to our values. Through the Padma Jyoti Group, we aim to uphold our heritage while embracing the future with optimism and purpose.

 

How difficult or easy was it to make the transition from Jyoti Group to Padma Jyoti Group? What are some lessons learned from the transition?

Restructuring and separation among business families is a common phenomenon worldwide, and the challenge lies in accomplishing it through consensus and in a timely manner to minimise harm to relationships. Family conflicts are universal; they are not unique to Nepali society but occur in every corner of the world. History demonstrates that families, businesses, political parties and even nations sometimes part ways for the better. However, within a family, we believe that every challenge should be resolved internally, and just as there is always a sunrise after a sunset, brighter days are sure to follow. We extend our heartfelt best wishes to every member of our extended family as we move forward.

This challenging phase has served as a valuable learning experience for us. Within the Padma Jyoti family, we anticipated potential difficulties and took a proactive step five years ago by establishing our family governance. This framework has been instrumental in guiding us through complexities, ensuring alignment and unity.

As Nelson Mandela wisely said, "May your choices reflect your hopes, not your fears." This profound message resonates deeply with us. We function as a unified family, making collective decisions that align with our shared vision. We have deliberately chosen a clear path toward the future, embracing growth, stability, and happiness as our guiding principles.

Our focus is firmly set on the road ahead. We do not wish to dwell on the past; instead, we channel our time, energy and efforts into shaping a brighter future for ourselves and for the generations to come. This commitment to forward-thinking and shared purpose is the cornerstone of our vision as we strive for continuous progress and harmony.

Our vision for the Padma Jyoti Group is clear and forward-looking. We remain dedicated to fostering positive change, supporting local entrepreneurship, creating meaningful employment opportunities, and contributing to the enrichment of Nepal’s future. This vision is a testament to our enduring commitment to progress, excellence and empowering our community.

The future of our family’s legacy and the identity of the Jyoti name are secure. As we have done for the past century, we will continue to serve the economy, society and the country with integrity, humility and an unwavering dedication to our values. Through the Padma Jyoti Group, we aim to uphold our heritage while embracing the future with optimism and purpose.

 

You are seen as an individual who works emphatically on value driven business. Could you share some non-negotiable values that have shaped your business sense and purpose?

Some of the lessons that have deeply resonated with me and continue to guide my actions are rooted in values, humility and a commitment to integrity. One of the first principles I strive to uphold is never to misuse any post or public position for personal gain. Power and responsibility are privileges that demand accountability and fairness.

I have also learned not to let praise or accolades inflate my ego. Fame is transient and the spotlight eventually fades. What matters is the ability to step away gracefully, returning to a grounded and rooted life. This perspective reminds me that as a businessperson, possessing wealth or influence does not automatically make one a leader in every sphere of life. True leadership requires adaptability and the humility to work in different roles, respecting and learning from the many remarkable individuals outside one’s immediate circle.

One of the lessons I cherish most is the enduring value of quality. As the saying goes, "Quality is remembered long after the price is forgotten." This principle extends beyond business and applies to relationships and personal character. Life has also taught me that the most important things - trust, respect and love - cannot be bought; they must be earned through sincerity and effort.

I strive to live by the adage "Think high, live simple." Modesty and humility are, in my view, the finest adornments of a person. They provide a foundation for personal growth and enduring respect. I have come to understand that being a smart manager is not equivalent to being a trustworthy leader. Similarly, having an impressive personality is not the same as possessing strong character.

Finally, I see leadership as akin to the footprints of the Yeti in the high Himalayas – its footprints can be seen, yet the Yeti itself remains unseen. Leadership is not about being the loudest voice in the room but about leaving an indelible mark through action, vision and character. These lessons remain a constant source of inspiration as I navigate the complexities of life and leadership.

I see leadership as akin to the footprints of the Yeti in the high Himalayas – its footprints can be seen, yet the Yeti itself remains unseen. Leadership is not about being the loudest voice in the room but about leaving an indelible mark through action, vision and character.

Could you tell us about your engagement with the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and National Business Initiative (NBI)?

My service to the business community through FNCCI and NBI has been one of the most fulfilling phases of my career. I had the privilege of serving in FNCCI for more than two decades in various capacities, culminating in the role of president. Among the many initiatives I was involved in, working on the Nepal-India Trade Treaty of 1996 was a particularly memorable experience. As President of FNCCI, I co-led a joint task force with the Confederation of Indian Industry (CII), alongside Rajive Kaul, then-president of CII. The task force aimed to strengthen exports from Nepal to India and encourage Indian investments in Nepal. A joint team of distinguished professionals and industrialists from both countries collaborated to prepare a set of recommendations, which we jointly presented to the then two Prime Ministers, late Narasimha Rao of India and Sher Bahadur Deuba of Nepal, at a formal event in Hyderabad House, New Delhi. Most of these recommendations were incorporated into the landmark India-Nepal Trade Treaty of 1996, which subsequently facilitated a significant increase in Nepal’s exports and Indian investments. This accomplishment remains a proud moment for FNCCI and CII.

My work with the National Business Initiative (NBI) took place under a different set of circumstances during a turbulent phase in Nepal’s political history. During the Maoist conflict, the business sector, like many others, became a casualty of the ongoing violence. I participated as a representative of the civil society (business community) in a confidential retreat held in February 2003 in a Swiss village, attended by all parties involved in Nepal’s violent conflict. This week-long retreat was a transformative experience, leading me to realise that the business community could not remain a passive observer but had a critical role in fostering peace and harmony in Nepal.

In 2003, 150 business leaders and organisations convened in Kathmandu for a special conference to address the nation’s worsening situation. With international participants who had experience in conflicts from South Africa, Ireland and the Philippines, the conference led to the formation of the National Business Initiative (NBI), with me as its president. The gathering emphasised a pivotal conclusion: “There can be no successful business in an unsuccessful society, and there can be no successful society without successful business.”

In August 2005, our spinning mill in Parwanipur was attacked and bombed by Maoists while I was held captive at gunpoint with factory workers. This traumatic event galvanised the business sector in Nepal. NBI initiated peace marches and campaigns highlighting the devastating effects of the conflict on the country’s economic and social fabric. These efforts inspired the business community to adopt a proactive role in peacebuilding, fostering a positive mindset and elevating the role and image of businesses in Nepal.

Following the Peace Accord and the promulgation of the interim Constitution in 2008, I was honoured to serve for five years as a member of the historic Constituent Assembly, representing the ‘distinguished persons’ category. Meanwhile, NBI shifted its focus to promoting responsible and conflict-sensitive business practices that sustain peace. Key initiatives included drafting a code of conduct for businesses, advocating ethical business practices, introducing modern Corporate Social Responsibility (CSR) principles in Nepal, reforming election funding to curb corruption, and involving business representatives as observers in national elections.

NBI has also successfully organised four ‘Responsible Business Summits’ in August 2014, August 2017, September 2019, and December 2023, each attended by over 500 delegates. These summits have highlighted the vital role and responsibilities of the business community in driving sustainable development and strengthening its integration into the broader social fabric.

I passed on the presidency to my colleague, young business leader Kush Kumar Joshi, and now serve as NBI’s Founder President. Unlike conventional chambers or business associations, NBI focuses inward, emphasising the responsibilities and ethical conduct of businesses. It underscores the close linkages between businesses and the societies in which they operate, fostering a shared vision for sustainable growth and harmonious coexistence.

For over four generations, the family has dedicated itself to meaningful contributions within the community, as well as to preserving and promoting the nation’s rich heritage and cultural legacy. These efforts have been carried out with quiet determination, without seeking publicity or recognition. Moving forward, the Padma Jyoti Group remains steadfast in its resolve to uphold and expand its CSR initiatives, integrating them seamlessly into modern frameworks and contemporary concepts, ensuring their relevance and impact in the years to come.

What are your thoughts on philanthropy and CSR?

The Jyoti family is recognised not only for its active engagement in business but also for its enduring commitment to social work, philanthropy and Corporate Social Responsibility. For over four generations, the family has dedicated itself to meaningful contributions within the community, as well as to preserving and promoting the nation’s rich heritage and cultural legacy. These efforts have been carried out with quiet determination, without seeking publicity or recognition. Moving forward, the Padma Jyoti Group remains steadfast in its resolve to uphold and expand its CSR initiatives, integrating them seamlessly into modern frameworks and contemporary concepts, ensuring their relevance and impact in the years to come.

 

What are your thoughts on the economy in the current time?

We find ourselves grappling with significant economic challenges, leaving many feeling disheartened and adrift. The migration of young Nepalis to foreign lands, which initially began during the Maoist insurgency for reasons tied to safety and conflict, has not only persisted but grown alarmingly in scale, now driven by economic despair.

Meanwhile, our political landscape appears to be producing more discord than solutions, with the energy of politics seemingly directed toward generating heat rather than light for the country. The priorities of our political leaders often appear misaligned with the pressing needs and aspirations of the citizens. As a relatively young democracy, Nepal is still navigating its path – learning, stumbling and, we hope, gradually evolving toward a more stable and prosperous future.

How do you view innovation and change?

The solution to the challenges facing our country lies in innovation and change. At present, our economy is heavily dependent on the remittances sent by young workers abroad, which, though vital, cannot be a long-term solution. The Dalai Lama, in his wisdom, shared a beautiful perspective on the role of young people within families, saying, “Give the ones you love, wings to fly, roots to come back, and reasons to stay.” This is a perfectly balanced approach that, I believe, could also serve as a guide for coping with our ‘remittance economy’.

It speaks to the importance of nurturing our youth – empowering them to explore the world and achieve success, while also ensuring that they have the opportunities, support and reasons to return and contribute to our nation's future. We must motivate our young people, encourage them to innovate across all sectors, and help them adapt to the rapidly changing world around us. After all, they are the ones most attuned to the modern world, with a deeper understanding of the technologies, trends and possibilities that shape our global landscape.

How does one embrace change while building on old values and traditions?

I often recall a beautiful passage I read many years ago that has stayed with me. It describes a gardener as someone who possesses humility, understanding that the trees he tends will eventually outlive him. The gardener is generous, optimistic and nurturing, finding joy not only in the act of planting but also in creating something beautiful for others to enjoy.

I would like to think that, in my role as Chairman Emeritus, I too can embody the spirit of this gardener, nurturing and guiding the future generations of both my family and business. Just as the gardener works selflessly for the lasting benefit of others, I hope to leave behind a legacy that will continue to thrive and grow long after my time, bringing beauty and value to those who follow.

What are some things you do to keep pace with business trends and transformation?

There is no substitute to continuous learning. I make it a point to keep my mind open to new ideas and perspectives, embracing the innovations and advancements of the present without allowing myself to be tethered to the ideas and practices of the past. Rather than rushing to impose my own views or relying on outdated approaches, I strive to remain receptive to the changing landscape around me, understanding that growth comes from adapting to new ways of thinking and being. This openness to learning ensures that I remain relevant and capable of navigating the ever-evolving world we live in.

I often recall a beautiful passage I read many years ago that has stayed with me. It describes a gardener as someone who possesses humility, understanding that the trees he tends will eventually outlive him. The gardener is generous, optimistic and nurturing, finding joy not only in the act of planting but also in creating something beautiful for others to enjoy.

I would like to think that, in my role as Chairman Emeritus, I too can embody the spirit of this gardener, nurturing and guiding the future generations of both my family and business.

 

How do you envision the future of Padma Jyoti Group?

I am extremely optimistic about the future of this venture. First and foremost, it has been established with a clear understanding of both the current economic landscape and the business world of tomorrow. It is not merely a reflection of the past, but rather a forward-looking initiative that aligns with modern realities.

Secondly, every company and business within this group has been founded by the new generation, driven by their own efforts, vision and ideas. They bring with them a fresh approach to management, employing innovative systems and strategies that differ significantly from those of my time. This new way of doing business is not only well-suited for today's dynamic environment but also lays the foundation for long-term sustainability, ensuring that these enterprises will continue to thrive and evolve across future generations.

What do you enjoy doing in your personal time.

My grandchildren are growing up, and I am hopeful that they will join our family business in a few years. I am committed to making their transition into this role a successful one, offering them guidance and imparting the lessons they need along the way, should they seek it.

I have a deep love for reading, particularly non-fiction these days. I am drawn to subjects that inspire, as well as those related to health and a touch of spirituality. Watching thought-provoking movies is another of my passions, especially those that linger in your mind long after the credits have rolled. Travel is something I cherish deeply, and I make it a priority to explore as much as I can, for as long as I can.

Staying fit is important to me as well. This year, I had the privilege of attending the 60th alumni reunion of my alma mater, IIT Kanpur. I also completed my Janko (Bhimratharohan) this year, a milestone that was celebrated with great joy and enthusiasm by my family and friends. Looking ahead, I am excited for my next Janko in four years, and I look forward to attending the 65th IIT Kanpur alumni reunion in five years' time. The future is filled with milestones, and I eagerly anticipate each one.