Risk to Reward: A Logistics Founder’s Blueprint for Leadership Success

Ajay Rao, CEO and founder of Emiza, in a recent interaction with Janifha Evangeline, Editor of Higher Education Review, unveiled the compelling story behind his rise to leadership in the logistics sector. From embracing bold career transitions to leading innovative ventures, his story reflects a unique blend of adaptability, vision, and strategic leadership. Prepare to be inspired by a story of transformation, strategic vision, and relentless pursuit of growth.

An experienced business leader with a total of 20 years of experience and over 15 years hands on experience in CEO positions across varied logistic businesses, Ajay has led established businesses for many years including nurturing a business from a small enterprise to number two in the industry.

Could you share with us the pivotal moments in your early career that set the stage for your entrepreneurial journey? What inspired the initial vision for your company, and how did your personal or professional experiences influence this vision?

In 2003, I faced a pivotal decision to return to India from the United States, where I had been working in management consulting. This decision was driven by personal reasons, as my father’s health required my attention, and a compelling professional opportunity to join Writer Corporation as the business head for their newly established cash logistics division, specializing in ATM replenishment. This role marked a significant transition from consulting to directly managing a business at a senior level.

In January 2004, I embraced the challenge of leading a startup venture within Writer Corporation. Moving from a white-collar consulting environment to a blue-collar operational business was a transformative experience. Over the next five years, I built the cash logistics business from inception to becoming the second-largest player in the industry, achieving profitability and assembling a robust team. This accomplishment reinforced my ability to navigate complex business challenges.

Subsequently, I transitioned within the group to lead the relocation business, managing operations across India and six other countries. This role provided valuable insights into overseeing large-scale, mature businesses. My journey continued at Allcargo Logistics, where I spearheaded their warehousing and contract logistics division, starting from the ground up. These diverse experiences demonstrated my capability to build and manage businesses across varying stages of development.

While at Allcargo, I identified a significant gap in the 3PL market for SMEs, especially amidst the rising prominence of e-commerce. Recognizing this opportunity inspired me to transition into entrepreneurship and establish my own business.

A crucial factor in this shift was the guidance and support of my mentor, Mr. Dilip Nath, who himself transitioned from a legal career to entrepreneurship at the age of 40. His advice, coupled with his financial backing, instilled confidence in my vision and enabled me to take the leap. His mentorship underscored the importance of having the right guidance, particularly when transitioning from a professional career to entrepreneurship.

These experiences such as leading startups, managing established operations, and transitioning to entrepreneurship have shaped my professional journey. They underscore the value of adaptability, strategic vision, and the critical role of mentorship in navigating pivotal career transitions.

What key experiences in your early career had the most significant impact on your journey to becoming a CEO? Also, can you share a pivotal moment or decision in your career that you believe set the stage for your rise to the top?

One of the pivotal decisions in my journey was moving back to India. Leaving the comfort of the US to seize an opportunity was a significant risk but ultimately rewarding. Upon returning, I took on the role of business head for a startup in the logistics space. Success in this role required deep involvement at the grassroots level, fostering strong connections with both employees and customers.

In the early days of the cash logistics business, I prioritized building a robust operations team. With around 300-400 employees initially, I made it a point to know everyone personally, visiting locations and understanding ground-level challenges. This hands-on approach helped establish a strong operational foundation. Simultaneously, I focused on developing solid relationships with customers. Meeting them personally and ensuring their requirements were met built trust and confidence in our services. These efforts laid the groundwork for our success.

As I transitioned to larger roles at Writer Corporation, I recognized the limitations of the cash logistics and relocation sectors in terms of market size. This realization led me to join Allcargo Logistics, where I gained exposure to warehousing and contract logistics, aligning with my aspiration to enter the broader logistics domain.

After gaining extensive experience at Allcargo, I made the decision to start my own business at the age of 40. This series of choices such as moving back to India, joining Allcargo for strategic exposure, and ultimately venturing into entrepreneurship were defining moments in my professional journey.

How has your leadership style evolved as the company has grown and scaled its operations? What guiding principles have shaped your decision-making process as both a CEO and a founder?

Leadership evolves by creating leaders. Initially, you play every role in the organization, building it from the ground up. As the business grows, you must hire the right people, believe in their capabilities, and delegate responsibilities while maintaining accountability.

A key element of my leadership is being deeply involved, working alongside the team, and inspiring them to share the vision. However, trust doesn’t always yield success - sometimes people or circumstances can let you down. In such cases, understanding and learning from these experiences are vital.

Philosophically, I identify strongly with sales and relationships. Transparency with customers is paramount, as trust forms the cornerstone of a successful services business. I emphasize brutal honesty with clients, even if it risks losing business. Overselling undermines trust, and I encourage my team to prioritize integrity over short-term gains. Trust, transparency, and performance are the pillars of our brand in the services industry.

In decision-making, I advise gathering as much information as possible while accepting that perfect knowledge is unattainable. Acting on 60-70% of available data often necessitates a gut call. In the services sector, honesty and transparency should guide decisions, even if it means letting go of customers who do not align with these values.

Ultimately, the reputation of a services business relies on trust and consistent delivery. By staying true to these principles, leaders can build not only a successful organization but also a lasting legacy rooted in ethical and effective leadership.

Who or what has been the most influential force in shaping your approach to leadership and innovation?

Experiences, including setbacks and successes, have been pivotal in my journey. My mentor also played a critical role. At 40, I made the bold decision to leave a secure, high-paying job and pursue entrepreneurship. This taught me that ‘creating something significant requires embracing change’. Moving from the US to India, shifting industries, and starting anew multiple times reinforced the need to adapt and start from zero. If you can embrace these two principles, you can achieve remarkable growth.

Innovation in a services business stems from listening to customers and building strong relationships. Understanding their pain points provides valuable insights. By collaborating with your team, you can develop cost-effective solutions that meet customer needs. Innovation requires a combination of external feedback and internal expertise. However, in services, securing premium pricing is challenging. Deep knowledge of operations and the ability to deliver value efficiently are essential to achieving innovation.

Ultimately, business success relies on trust and cost management. Customers expect value, and your ability to deliver at the lowest possible cost without compromising quality is critical. A thorough understanding of your business helps you meet these expectations while staying competitive.

In summary, embracing change, listening to customers, and fostering innovation through collaboration are the cornerstones of growth in a services business. These principles have guided my entrepreneurial journey and continue to shape my approach to leadership and success.

In what ways will you measure success for both your company and for yourself as a leader? If you could reflect on your entrepreneurial journey, what would you consider your most significant achievement?

“Success is subjective and means different things to different people. For me, personal success lies in being happy and content, free from regrets. Taking bold decisions, like leaving a secure job, was a way to avoid future regret. Even if I had failed, I would have valued the attempt over wondering ‘what if.’”

In business, success has several dimensions. From a customer perspective, it’s about meeting significant market demands, building a strong brand, and earning a reputation that drives word-of-mouth referrals. Word of mouth is a key measure of success for me, as it reflects trust and credibility.

Financial success is equally critical. A business must be profitable and sustainable as it’s not a charity. Meeting investor expectations is another important measure. Handling their money comes with immense responsibility, and delivering returns or exits reflects success.

Lastly, success includes building a strong team, fostering leadership, creating wealth for employees, and offering opportunities for growth.

As for my most significant achievement, it’s making the transition from a professional career to entrepreneurship. Few take this path, and fewer succeed. This leap, despite its risks, is what I consider my greatest accomplishment.