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About 100 years ago, a seven-year-old boy stood in front of the Mysore Palace. He only wanted to see the palace from inside once.
Story of Krishnan Nair, who rose from poverty to build The Leela Hotels, a ₹15,000 crore luxury hotel empire inspired by Mysore Palace.
Key Takeaways
- Perseverance and education can overcome humble beginnings.
- Innovative thinking can turn challenges into business opportunities.
- Integrity and honesty build strong reputations and local support.
- Strategic partnerships and family support are crucial in entrepreneurship.
- Vision and adaptability enable growth from small ventures to global brands.
What the video covers
- Krishnan Nair was born in a poor family in Kerala and valued education despite hardships.
- Supported by a local king, he pursued higher education but left to support his family by joining the British Indian Army.
- He worked as a wireless officer and later joined the Civil Supply Department to fight corruption during a famine.
- Krishnan married Leela, daughter of a respected businessman, who inspired him to start a business career.
- He began as a sales agent for Rajeshwari Mills and mastered business skills while facing ridicule.
- Krishnan innovated by marketing Bleeding Madras fabric in the US, turning a flaw into a fashion trend.
- He established Leela Scottish Lace, India’s first lace manufacturing unit, achieving luxury brand status.
- A financial crisis in 1979 caused his business to collapse, but he quickly pivoted to garment manufacturing.
- Krishnan’s exposure to luxury hotels inspired him to build The Leela Hotels, starting with Mumbai and expanding to other cities.
- Leela Hotels grew into a world-class luxury hotel chain, winning global awards and maintaining high service standards.
Chapters
- 00:00Early Life and Education of Krishnan Nair
- 00:47Army Service and Fight Against Corruption
- 03:12Marriage and Start of Business Career
- 04:02Success with Bleeding Madras Fabric
- 05:30Establishment of Leela Scottish Lace
- 06:16Business Collapse and New Opportunities
- 07:00Entry into Garment Manufacturing
- 08:41Inspiration to Build The Leela Hotels
- 09:32Challenges and Growth of Leela Hotels
- 11:59Expansion and Global Recognition
Full Transcript — Download SRT & Markdown
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But while the palace belonged to the royal family, the boy was merely the son of an ordinary peon.
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Therefore, his wish could not be fulfilled. At that time, no one could even imagine that in the future this very boy, inspired by the same Mysore Palace, would build his own palace hotel.
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And not just one palace hotel, but he would establish one of the world’s finest hotel chains.
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This is the story of The Leela Hotels. In 1922, in a village near the city of Kannur in Kerala, Krishnan Nair was born in a small, dilapidated hut.
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His father worked as a government peon, and his mother extracted oil from coconuts and sold it.
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Because of this work, blisters had formed on her hands. Seeing the condition of his family, Krishnan understood the importance of education at a very young age.
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He therefore treated school like a temple. From Sanskrit to science, he immersed himself completely in every subject.
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Luckily, when the local king learned about his exceptional dedication and talent, he declared that he would bear the entire expense of Krishnan’s higher education.
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With this support, Krishnan later secured admission to the Government Arts College in Madras. His dream was to complete college and obtain a respectable job.
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However, fortune did not favour him. His family was still struggling financially. His parents were growing old, and they urgently needed Krishnan’s support.
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Therefore, in 1942, at the age of 20, Krishnan left college midway and joined the British Indian Army.
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He was posted as a civilian wireless officer in the icy mountains of Abbottabad. His job there was to listen to cryptic messages of the Allied Army and decode them before sending them to headquarters.
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For the first time in his life, Krishnan felt that things were becoming stable. He was able to financially support his family.
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But then a major tragedy occurred. A famine struck Kerala, in which nearly 400 people were expected to lose their lives.
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While Krishnan was guaranteed three meals a day at the army base, people in his village and his childhood friends were dying of hunger.
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This reality was unacceptable to him. Therefore, he resigned from his job and returned to Kerala to help the people.
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He immediately joined the government’s Civil Supply Department. There, he was put in charge of delivering essentials such as rice, sugar, and kerosene to the general public.
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Very soon, he realised that the entire system was filled with corrupt officials and dealers.
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As a result, food supplies were reaching the black market instead of the people. However, as soon as Krishnan took charge, he stopped all of this in one decisive move.
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He began accounting for every single grain leaving the department and blacklisted corrupt dealers. Soon, stories of his honesty spread throughout Kannur, and he became a local hero.
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Once the situation came under control, Krishnan decided to rejoin the army. This time, he was selected as a Short Service Commission officer, which was a real combat role.
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He was assigned to the Maratha Light Infantry. Within a few years, he rose to the rank of Captain.
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At this point, a major turning point arrived in his life. A. K. Nair, one of Kannur’s most respected businessmen, had been observing Krishnan for many years.
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He was deeply impressed by Krishnan’s work during the famine and his outstanding army career.
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Therefore, he decided to marry his daughter to Krishnan. After agreement from both families, they were married in 1950.
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The name of A. K. Nair’s daughter and Krishnan’s wife was Leela. The same Leela after whom Krishnan would one day build one of the world’s finest hotel brands.
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While others saw Krishnan as a successful army officer, Leela saw a leader capable of building his own business empire.
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Therefore, in 1952, she convinced Krishnan to leave the army. Leela’s father operated Rajeshwari Mills in Kannur, where high-quality fabrics were produced.
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Krishnan decided to become a sales agent for this mill. His job was to carry fabric samples from Kannur and visit shop after shop in Bombay’s Mulji Jaitha Market to secure orders.
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In return, he earned a commission. Overnight, he transformed from a respected army officer into a travelling sales agent wandering through streets.
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People laughed at him behind his back. But they had no idea that Krishnan was not merely selling fabrics.
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He was silently mastering the business. In 1958, Krishnan discovered a unique fabric in Tamil Nadu.
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It was a lightweight and breathable cotton fabric dyed using natural ingredients such as indigo, turmeric, and sesame oil.
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Because of this, the colours were vibrant and the scent completely natural. However, the fabric had one major problem.
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When washed, its different colours bled into one another. Krishnan turned this problem into an advantage.
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He pitched the fabric to American importers, explaining that with every wash, the colours would bleed and merge, creating a new pattern.
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This meant customers would pay for one garment but receive a newly styled garment after every wash.
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Jackets, shirts, and shorts were produced from this fabric and sold in America. Since the fabric came from Madras, it became known as Bleeding Madras.
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People loved these clothes so much that within a single week, not only was the first lot sold out, but it also became a fashion sensation in America.
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After this, Krishnan received a flood of orders, making it a major success for him.
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However, one thing troubled him. He was still only a middleman. He now had a strong desire to manufacture his own finished products in India.
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During a trip to London, his wife Leela noticed Scottish lace being used in curtains, table linen, and dresses.
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She suggested that Krishnan manufacture this lace in India. But manufacturing it was not easy.
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It required sophisticated Scottish machines, massive capital, and skilled labour. Yet Krishnan somehow managed to arrange everything.
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In 1964, Leela Scottish Lace was established in Mumbai, India’s first lace manufacturing unit. The business achieved immediate success.
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Miss India Meher Mistri wore a dress made from Leela’s lace on stage. Bollywood superstar Rajesh Khanna wore their kurta at his birthday celebration.
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Soon their brand became synonymous with luxury across India. Over the next fifteen years, Krishnan’s business experienced exponential growth.
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Then one day, everything collapsed. In 1979, several factory machines broke down simultaneously. They could have been repaired by importing spare parts from Scotland.
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However, due to India’s ongoing foreign currency crisis, the government banned such imports. As a result, production stopped.
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Orders were cancelled. The money Krishnan had invested in expansion and raw materials was lost.
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At the age of 57, his net worth was not zero but negative. His Mumbai house was on the verge of getting attached due to the debt.
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He needed to act quickly just to survive. Fortunately, during this period, he met Rajendra Singh on a flight.
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Rajendra was a businessman planning to set up ready-made garment manufacturing in India for American brands.
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At that time, American fashion favoured casual and comfortable clothing. He was searching for an Indian supplier capable of producing such garments.
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His clients were scheduled to visit India within two weeks to review samples. He pitched that if Krishnan could prepare samples according to their requirements in time, he would offer Krishnan exclusive orders.
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Krishnan immediately got to work. He arranged some funds and purchased imported sewing machines at a low price from a factory that was shutting down.
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He then created a small setup in his own closed factory. Krishnan’s true masterstroke lay in his choice of fabric.
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Understanding American market requirements, he selected cheesecloth for the samples. It was a soft and airy fabric perfect for casual wear.
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At the same time, it was extremely versatile. It could be used in it.
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Krishnan sourced the fabric, activated the machines, and prepared the samples on time. When the client saw the samples, they were delighted.
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They named the new clothing line Nirvana. Krishnan finally received exclusive orders. Within the next twelve months, he repaid all his loans and became profitable again.
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In the following years, he began manufacturing garments for several American brands such as Liz Claiborne, Calvin Klein, and Jordache.
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The growth was so rapid that by 1980, Leela Scottish Lace became India’s largest exporter of ready-made garments to the United States.
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By 1983, Krishnan was 61 years old and already the owner of a successful business empire.
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Anyone else might have considered retirement at that stage. For him, however, it was only the beginning.
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Years earlier, during a business trip, he had stayed at the Waldorf Astoria in New York, one of the world's most luxurious hotels.
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The hotel had its own private railway platform where guests could arrive in private rail cars.
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It had its own power plant and magnificent royal interiors. Inspired by this hotel, Krishnan dreamed of building a world-class hotel empire in India.
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He now set out to fulfil that dream. He observed that Sahar International Airport was being developed in North Bombay, which today is known as Chhatrapati Shivaji Maharaj International Airport.
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Although the airport was being built, there was not a single luxury hotel nearby. Both the Taj and Oberoi hotels were located in South Bombay.
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Typically, only budget hotels operate near airports. The industry believed airport hotels were meant only for passengers seeking inexpensive short stays before flights.
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However, Krishnan recognised that since Mumbai was India’s financial capital, major businessmen, celebrities, and VIPs would arrive through this airport and would require a nearby luxury hotel.
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With this idea, he established a new company -- Hotel Leela Ventures Limited. Funds were raised.
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Thirteen acres of land near the airport were acquired, and construction began. This 250-room hotel was planned to be built amid massive green gardens.
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London-based interior designer Frank Solano was hired to create luxurious interiors. Construction progressed so rapidly that four floors were completed within a single year.
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Then the story took an unexpected turn. A news report appeared on the front page of The Indian Express claiming that 19 rules were being violated during the construction of the Leela Hotel.
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It was also alleged that due to its height, the hotel would interfere with aircraft flight paths.
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After the publication of the news, opposition leaders raised objections. Construction was halted, and an inquiry was initiated.
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Construction remained suspended for months, and the project cost continued to rise. Krishnan was heartbroken because he knew the project had not violated any rules.
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Finally, Prime Minister Rajiv Gandhi personally sent an official for a site inspection. The inspection revealed that all allegations were completely baseless.
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After this, construction finally resumed. On 12 October 1986, the day arrived. The Leela Mumbai opened its doors to guests.
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It was not merely an airport hotel. It was a palace. There were marble floors, crystal chandeliers, and expensive artworks placed in every corner.
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The staff received training to anticipate guests’ needs even before they expressed them. Once, a gardener noticed a guest picking up fallen plumeria flowers from the garden.
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The next day, when the guest came downstairs, the staff presented them with an entire bowl filled with plumeria flowers as a gift.
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The guest felt delighted and became a lifelong customer of The Leela. The biggest advantage of Leela Mumbai was that most international flights arrived and departed around midnight.
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This meant travellers leaving India would check out from the hotel around 10 or 11 at night to catch their flights.
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The actual checkout time, however, was the following afternoon. Passengers arriving in India on those same flights would then check into the hotel.
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This meant that a single room generated rent twice in one day. Soon after opening, Leela Mumbai became the preferred hotel for high-net-worth individuals.
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Because Film City was located in North Mumbai, it also became the first choice for Bollywood stars, directors, and producers.
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Thus, Krishnan’s very first hotel became a massive success. After the success in Mumbai, it was time to conquer Bengaluru.
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As a child, Krishnan could not even imagine entering Mysore Palace. Now, 65 years later, he decided to build a palace hotel inspired by that very Mysore Palace.
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In 1990s, Bengaluru was experiencing an IT boom. Companies such as Infosys, Wipro, IBM, and Oracle were opening offices there.
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Top executives, foreign clients, and business travellers from these companies required premium accommodation. The market was large, but competition already existed.
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The Taj West End Hotel, with 106 rooms, and The Oberoi Hotel, with 120 rooms, were already established.
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Therefore, Krishnan decided to do something that would shake the market. He announced that he would build a 256-room hotel.
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This size exceeded the combined capacity of both Taj and Oberoi. As a result, even before opening, the Leela Palace Hotel was branded as Bengaluru’s largest luxury hotel.
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The vision was strong, but execution created serious challenges. Due to the complexity of the project, construction kept getting delayed.
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The time arrived to repay the debt taken to finance the project. Income from existing hotels was insufficient to repay the loans.
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The company had essentially become bankrupt. The project was so large and complicated that tracking progress became almost impossible.
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This became one of the main reasons deadlines kept getting pushed. In fact, most Indian businessmen face the same problem.
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They lack a proper system for assigning tasks and tracking progress. As a result, team members do not clearly know what needs to be done and by when.
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Try it now. The link is available in the description and pinned comment below. Now returning to the video.
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To save the company from bankruptcy, Krishnan used the sales skills he had developed over many years.
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He arranged a meeting with HDFC Bank chairman Deepak Parekh. He confidently pitched the vision of the Bengaluru project.
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Deepak Parekh became convinced and approved emergency funding. However, the funding was not sufficient to complete the entire hotel.
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Therefore, Krishnan decided to build the hotel in phases. In Phase One, the West Wing was constructed.
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Initially, only 90 rooms, the lobby, and the Citrus restaurant were completed and opened to guests.
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Revenue began to flow in. Gradually, the entire hotel was completed step by step. While other hotels offered luxury, Leela Palace Bengaluru offered royalty.
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It felt less like a hotel and more like a real palace. Soon, it became the undisputed king among Bengaluru’s luxury hotels.
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With a 90 per cent occupancy rate, it became a cash cow for the company.
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After this success, Leela Hotels expanded even faster. By the mid-2000s, they had established world-class resorts in Goa and Kovalam alongside Mumbai and Bengaluru.
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However, one major gap still remained. Krishnan knew that until he proved himself in one particular city, Leela could not be considered a top-tier hotel chain in India.
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That city was Udaipur, the land of the Maharanas. Udaipur was one of India’s top destinations for ultra-luxury weddings.
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After a James Bond film was shot there in 1983, it began attracting tourists from around the world.
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Every major hotel chain had its flagship and most expensive property in Udaipur. On one side stood the legendary Taj Lake Palace.
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It was a 270-year-old marble monument located in the middle of Lake Pichola. On the other side stood The Oberoi Udaivilas.
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Spread across 30 acres, it was famous for its private pools and flawless service. In 2015, it received the award for Best Hotel in the World.
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Despite the challenge, Krishnan resolved to establish Leela in Udaipur. He spotted a pink structure on the banks of Lake Pichola.
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While others saw only ruins, Krishnan envisioned his future hotel. He purchased six acres of land there and began construction.
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His plan was to create a grand entrance facing Lake Pichola so guests would arrive by boat.
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After years of effort, when the hotel was finally ready, fate seemed to play a cruel joke.
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Before the opening, Lake Pichola completely dried up. There was no way for guests to enter the hotel as originally planned.
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Krishnan refused to give up. After calculations with his team, he decided to purchase half an acre of land on the opposite side.
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He planned to build a road connecting the hotel to the main road. The problem was that many different families lived on that land.
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Negotiating with all of them and convincing them was extremely difficult. Yet, one by one, deals were completed.
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The land was acquired, and the road was built. A few months later, fortunately, the lake’s water issue was also resolved.
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The hotel rooms were significantly larger than those of the Taj and Oberoi. Every room offered a view of the lake.
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The hotel staff treated guests literally like kings and queens. Once, a guest arrived carrying idols of deities.
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In a hurry, she left the idols on the dressing table and went out sightseeing.
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When she returned, she saw that the hotel staff had respectfully placed the idols on a red silk cloth.
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They had also offered marigold flowers in front of them according to proper ritual. During the construction of the hotel, Krishnan noticed an interesting detail.
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The best view from his hotel was of the Taj Lake Palace because it stood directly opposite.
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Therefore, he hired top architect Bill Bensley along with a lighting expert. He instructed them to design lighting in such a way that guests staying at the Taj Lake Palace would notice his hotel, especially at night.
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Not only was lighting installed, but the entire hotel was decorated like a jewel. As a result, every night the Leela Palace glowed like a palace from a dream.
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Guests staying at the Taj began noticing it. The next day, many of them visited the Leela Palace under the pretext of having coffee.
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On their next trips, many of those guests chose Leela instead. With this, Leela Hotels finally established its presence in Udaipur as well.
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Krishnan had successfully overcome the greatest challenge of his life. In recognition of his achievements, in 2009, the International Hotels and Restaurant Association honoured him with the title of Hotelier of the Century in 2009.
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In 2010, the Government of India awarded him the Padma Bhushan. In the following years, Leela opened additional hotels in Gurgaon and Delhi.
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Then came the year 2014, when Krishnan passed away at the age of 92. However, he left behind a hotel brand that immortalised him forever.
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After his passing, the hotel empire experienced several financial ups and downs. Ownership of several hotels also changed.
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Despite this, the quality and service always remained top-notch. In 2019, Travel + Leisure named Leela Palace Udaipur the Best Hotel in the World.
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Then, in 2020 and again the following year, Leela Palaces, Hotels and Resorts received recognition as the Best Hotel Brand in the World.
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This meant that a boy from a humble village in Kannur had built a hotel chain that won the equivalent of an Oscar in the world of hospitality.
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Captain Krishnan Nair often said that failure may be a comma, but it is never a full stop.
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Because of this mindset, no failure, no matter how big, ever stopped him from moving forward.
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This was the story of The Leela Hotels. If you enjoyed the video, you can watch the story of The Oberoi Hotels next.
Topics:Krishnan NairLeela Hotelshotel empireIndian entrepreneurshipBleeding Madrasluxury hotelsbusiness success storyhotel industry Indiafamily businessinspirational story
