Mr. R. P. Todi ( CFO) on the Evolution of Indian Banking, Lifelong Friendship, and the Realities of MSME Finance With a friendship spanning more than six decades and a professional association with Krishna Lamicoat Pvt Ltd., R. P. Todi offers a unique perspective on business, finance and industrial growth. Having known Amar Chhajer since childhood and later joining Krishna Lamicoat Pvt Ltd., Todi has witnessed the evolution of Indian business from a largely cash-driven system to an increasingly formalised, bank-led financial structure. In this conversation, he reflects on his long standing friendship with Amar Chhajer, his role in the financial operations of Krishna Lamicoat Pvt Ltd., changing market conditions, labour laws, the challenges facing Indian MSMEs, and the emerging role of artificial intelligence in finance.

You have known Amar Chhajer for more than six decades. What was he like as a child, and what do you remember about his early entrepreneurial journey?
My association with Amar goes back more than 65 years. We were schoolmates from Class II and studied together until graduation. He was calm and composed, but had a strong personality and was extremely focused. Although he hardly studied at home, he consistently came first because he learnt everything at school; after returning home, he was busy working and helping his father with the business. He was exceptionally good in the technical field. He started his first factory and designed the machinery himself. I still remember when his father first saw the machine running—he became so emotional that he wept. It was a very special moment in his entrepreneurial journey.

You have been associated with Krishna Lamicoat Pvt Ltd. for nearly a decade. What are your responsibilities, including its international operations?
I primarily look after finance, banking and accounts. When I joined, the banking operations were relatively small. Today, we are able to borrow substantial amounts and secure competitive financing. Most importantly, our work has never stopped because of a shortage of funds. I also oversee foreign remittances, payment schedules and export-related formalities under RBI guidelines. We periodically review the accounts of our Sri Lankan operations as well. Proper financial control is essential to maintaining the health of the company.


Having worked with different generations of the business family, do you see a generation gap? What qualities stand out in Ashok Chhajer?
Absolutely not. Everyone is moving in the same direction because there is a common vision. Even with the third generation involved, the overall direction remains aligned. Ashok’s biggest strength is marketing. He has an exceptional ability to communicate with people, build relationships and make them comfortable. That ability is a major asset to the business.


Your company has strong infrastructure and products, yet turnover has remained stagnant. What are the current market challenges?
We have good products, infrastructure, machinery and financial resources. However, turnover has remained almost stagnant for the last three years, so the challenge appears to be more on the market and marketing side. Currently, around 35% of our business comes from exports and 65% from the domestic market, compared with 60:40 earlier. The middle-price segment has become difficult, while consumer and logistics costs have increased considerably. A 40-foot container that earlier cost around US$1,500–2,000 has become many times more expensive.



You have been handling finance since 1976. How has the financial landscape changed, and what challenges do you see for Indian industry?
The change has been enormous. Earlier, business was largely cash-based; today, banking is central to almost every aspect of business, with financial transactions and regulatory requirements becoming far more structured. At the same time, Indian businesses are affected by the global economy. India has a strong consumer market and healthy GDP growth, but international uncertainty and geopolitical tensions continue to create challenges.


From the perspective of an MSME, where do you think government policy needs improvement?
Labour laws need greater flexibility while maintaining worker protection. Entrepreneurs also need effective mechanisms to manage persistent indiscipline and run their businesses efficiently. India also needs stronger support for MSMEs. There are several policies and subsidies, but implementation can be complicated. The gap between policy and its practical execution needs to be reduced so that businesses can actually benefit from government support.


How do you see AI transforming the finance function?
AI is still at an early stage, but it can significantly reduce the time required for several tasks. For example, a project report can now be generated within five to ten minutes once the necessary data is provided. The output still needs to be reviewed and modified, but AI can provide multiple alternatives quickly. I believe it will become increasingly useful for financial analysis, reporting and documentation..

Finally, what would you like to see for Indian industry in the years ahead?