India, Aug. 16 -- In the 1980s, a small company shut down, and it led to millions of students leaving their homes after Class X in search of a better future. To know why, let's go back to the 1960s. JK Synthetics, a subsidiary of the JK group, set up shop in a sleepy little hamlet of Rajasthan called Ladpura. A relatively small town on the banks of the River Chambal, it had something factories desperately needed: power. The Chambal valley projects generated enough hydro-power in those days. All was well.

JK started with manufacturing nylon yarn and other synthetic fibres. Indian women had just discovered synthetic sarees at the time, shiny as silk, at much lower costs. Dhirubhai Ambani had just started a clothing brand called Vimal. JK h...