In 1955, a novel titled Cash MacCall was published. I may have read it in 1970. It was about about a Capitalist, who used to put his capital to social use as well as for making profit.
In India, we have a large number of Capitalists. They also serve social causes as well while helping nation to grow more industry.
But I have not come across any Capitalist or Industrialist who may be following Cash MacCall Model. Hence I write this brief post.
In India, we have a large number of Capitalists. They also serve social causes as well while helping nation to grow more industry.
But I have not come across any Capitalist or Industrialist who may be following Cash MacCall Model. Hence I write this brief post.
What Cash MacCall used to do:
He used to stay in five star hotel. In newspapers, he will search for advertisement where an "Industrial Unit is On Sale - As it is". This will be usually a sick industry, running into loss, owner will be cash strapped and will be willing to sell for whatever he can get.
Cash MacCall will, without disclosing his identity, collect all details about the company or industrial unit. Then on basis of reports collected, he will apply his mind. "Why is this industry making loss? Is there a way to turn it around and to make it a profit making industry?"
If he will find some answers to his question, he will buy this company/industry at a very low price. In Six months, he will turn it around and make it a highly profitable company. Then after another six months, he will sell this Company at much higher price.
He will thus make a profit. And he will do all these, without disclosing his identity and without leaving his stay in Five Star Hotel. He will also serve a social cause.
How this Cash MacCall model Can Help India?
In India, there are large number of Capitalists or Industrialist like Ratan Tata, Azim Premji and several others who believe that Capitalists should also serve nation. They have experience. They can revive any sick unit and make it profitable. All we need to do is to encourage them.
What Government Can do?
It has to ease taxes on capital gains from buying sick units and selling it as profitable units. This will help a lot of cash-starved and dying industries of India.
Haresh Raichura
17th May,2012
The book Cash MacCall is still available on Amazon and other online bookshops.
