Indian Companies which are more than 25 years old
Inside Silver Jubilee has a special significance in the life of any institution as it signifies a coming of age and maturity. We present few companies which have either just crossed the milestone or have crossed it and moving ahead towards touching the golden sphere. ...Page 4 The Indian Express- Ahmedabad, Chandigarh, Delhi, Jammu, Kolkata, Lucknow, Mumbai, Nagpur, Pune, Vadodara The Financial Express- Ahmedabad, Bangalore, Chandigarh, Chennai, Hyderabad, Kochi, Kolkata, Lucknow, Mumbai, Delhi, Pune A Space Marketing Feature August 31, 2009 THE SILVER JUBILEE HAS A SILVER LINING. IT’S NOT ADULTHOOD BUT PERHAPS AN EVEN MORE IMPORTANT MOMENT IN THE LIFECYCLE – IT IS THE COMING OF AGE AND MATURITY. IT IS A TIME TO PAUSE AND REFLECT ON ALL THE GOOD WORK THAT HAS BEEN, AND TO CHART THE FUTURE COURSE THE COMPANY SHOULD TAKE FOR ANOTHER 25 YEARS OF SUCCESS. THE FEEL IS MAGICAL, AND THE FUTURE FULL OF HOPE. IT IS A TIME WHEN THE BUBBLY FEELING SETS IN AND THE APPEARANCE CHANGES FROM DIMPLED SHYNESS TO THAT OF ‘WE MEAN BUSINESS’. A nation’s future and its ability to compete in the global market depend greatly on how it generates new ideas, innovates and sustains. Today India stands erect to face the global financial crunch with many advantages and strengths. One of the key advantages is of course the fact that India is not exposed to the new and innovative financial instruments that triggered the meltdown. Key strength is the plethora of companies with solid foundations and concrete experience. India has a huge number of companies who have a robust financial record over the years; some since 100 years. Then there are companies who are celebrating their platinum jubilee and those who are celebrating their Golden. And there is the ‘young’ bunch of enthusiastic companies who are on the threshold of entering the dynamic phase of their existence. That of the passage of 25 years. These are the companies that India will have to look at carefully, while of course the people running these organizations have to be increasingly careful with their short terms and long term strategies and approaches. These are the companies which face big challenges, huge expectations in trying times. “These days, it is not very difficult for a company to think of crossing 25 years, but when you look at 50 years…75 years…100 years, then it surely seems a tough task,” said Rajeev Nannapaneni, Director & COO, NATCO Pharma, a Hyderabad based pharmaceutical formulations company founded in 1981. Strategies of the Sterling Enterprises Technology adoption by companies across sectors and rapid evolution of technology and applications will significantly drive growth of many of the companies. Most of the companies who have crossed 25 years have been expanding service offerings and entering newer geographies to strengthen their business model, reduce dependency on single location and offer end-to-end solution to their clients. “Keltron as a company has restructured itself to be robust enough for the next fifty years. We are in a comfortable position right now and with the pioneering venture like Intelligent Traffic System which involves multiple domains and its integration, we are sure that the next 25 years is well planned in a futuristic approach. We are also into the defense business with a Rs 60 crore deal of 300 mines A SILVER JUBILEE with the Indian Navy which is scalable to Rs 80 crores. We are also working with DRDO. We are venturing into a promising future and into those technologies with huge potential. We are entering into Security & Surveillance and we find that it is a promising future for us. We have asked Ernest & Young to provide us with a thorough report on our capabilities in the next years of becoming a Rs 1000 crore company. Right now we are at Rs 165 crores of which Rs 133 crores was till last year. We are sure to touch Rs 200 crores plus this year,” said Captain Om Prakash Dua, Managing Director, KELTRON, which has completed 36 years. The future growth strategy for most companies would be to take the inorganic growth path. Mergers and acquisitions will continue to remain the most preferred strategy among the companies for the near future as this would be the fastest way to increase clientele, enter/expand into new geographies, increase product/service offerings and gain specialisation. While sharing his business mantra at the company’s 36th AGM, Onkar S Kanwar, Chairman, Apollo Tyres Limited said, “Our commitment continues to remain on three key principles in good times and downturns. One: a clear focus on marketing a healthy top and bottom-line by concentrating on profitable growth. Growth at any cost is not the company’s way of doing business. Mere growth is neither healthy, nor sustainable for an enterprise. And to ensure a comfortable bottom-line, the company focuses on price and product leadership, the right product mix and continuous brand investment. Two: nurturing and adding domestic markets. For the company, India is its largest domestic market. But the base needs to be expanded continually to allow for profitable growth and guard against stagnation and complacency. Three years back we added South Africa and the African continent as our second domestic market. This year, we have added Europe through our acquisition of Vredestein. We will continue to expand from this base of three key domestic markets. And the third component of our business model has been an unwavering focus on cost and quality. The company’s continuing attention on increasing efficiencies across the board and re-aligning costs to protect margins has paid dividends over the past year,” According to Ashok Sinha, Chairman, Bharat Petroleum, which has completed 32 years, “Bharat Petroleum realises that, in the long run, success can only come with a total reorientation and change in IS A TIME TO PAUSE AND REFLECT ON ALL THE GOOD WORK DONE - DENIS J. HART approach with the customer as the focal point. Today, Bharat Petroleum is restructured into a Corporate Centre, Strategic Business Units (SBUs) and Shared Services and Entities. We need to grow because the economy is growing and so is energy demand. We want Bharat Petroleum to get into new businesses and grow. In every sphere of the energy business there is demand, there are growth prospects.’’ For GAIL (India) Limited, India’s flagship Natural Gas company which completed its 25th year on August 16th this year, the aim is to further expand its core business of Natural Gas Transmission & Marketing, to capture larger share of the growing market. The company wishes to move upstream to secure gas supplies for the core transmission business. Additionally, investments in petrochemicals and city gas distribution are being planned to enhance margins and increase sources of revenue. Further, the company is exploring and investing in international opportunities with a strategic rationale of gaining international presence. Brijmohan Lall Munjal, the Chairman, Hero Honda Motors, which completed 26 years, succinctly points out, “We pioneered India’s motorcycle industry, and it’s our responsibility now to take the industry to the next level. We’ll do all it takes to reach there. In the new millennium, we stand committed to innovation, to change, to achieving breakthroughs… to moving forward in the new century, while retaining the values that have been like a beacon in this journey thus far.” Maruti Suzuki India Limited has, over the years strengthened the existing practices and experimented with many new initiatives by way of kaizens (continuous improvements) to delight its customers. These initiatives ranged from product design and quality to network expansion, and included new service programs to meet unsaid needs of customers. The company has retained its competitive edge by offering high quality prod- ucts. In the field, the products are supported by rapidly expanding networks. The company has diverse networks for new cars, spares, service, pre owned cars Contd. on Page 2... SILVER JUBILEE IS WHEN THE TORCH IS PASSED TO ANOTHER GENERATION- TAIMUR RAHMAN 2 AUGUST 31 I 2009 ...Contd. from Page 1 THE FIRST STATE PUBLIC SECTOR CORPORATION TO DEAL ENTIRELY WITH ELECTRONICS IN THE COUNTRY, KELTRON WAS THE FIRST IN INDIA TO DESIGN, DEVELOP AND MANUFACTURE A MICRO PROCESSOR BASED CARD ATTENDANCE SYSTEM AND IMPULSE CLOCK SYSTEM FOR FACTORIES AND OFFICES. IT HAS BEEN A COMPANY SUSTAINING THROUGH SHEER INNOVATION AND FUTURISTIC TECHNOLOGIES. KELTRON was formed in 1972-73 with a specific commitment to build up electronics industry in the state of Kerala. The objectives were to stimulate and promote electronic industrial projects in general; render technical, promotional and financial assistance to intending entrepreneurs for establishment of electronic indust r i a l projects; estab- lish, manage and control projects for manufacture of such electronics products as may be thought fit; set up facility for research and development, inspection, quality control, proto-type development and other specialized services required by electronic industry; set up a strong and dynamic marketing organization and to set up industries in different districts of Kerala with emphasis on backward districts in order to create employment opportunities equitably and effect industrial development uniformly. Starting operations with an R&D unit which was later enlarged into a full fledged autonomous Electronic Research and Development Centre (ER & DC) in order to play a pivotal role in the development of electronics, the first project undertaken by Keltron was manufacturing of B&W TV (EC TV) sets on behalf of M/s Electronics Corporation Of India Ltd. This was the first ever such agreement between Central and state PSUs. Keltron Equipments Complex was established in Karakulam, Trivandrum. In addition to TV Production unit, Industrial Electronics Products division, Captain Om Prakash Dua, Managing Director, KELTRON Mass Communication Division and Special Products Divisions were established subsequently. Keltron Component Complex was established in 1974 and started manufacture of Electrolytic Capacitors with a technical collaboration with Sprague Electromag, Belgium. Simultaneously, a new technocrat sector was conceived in the place of the normal joint sector. In 1978, the Corporation signed an agreement with Controle Bailey of France for the manufacture of Control & Instrumentation for Thermal Power Plants and Process Industries with an investment of Rs. 8 Cr as Keltron Controls Division. The ER & DC and Materials Development Centres were established in 1980. The Cybernetics Division was established in 1986. “Keltron has aided the overall development of electronics industry in the country by providing horizontal transfer of technology to other states; J & K, Bihar, Pondicherry and Manipur. Keltron has paved the way for forming Electronics Development Corporations in other states like Uttar Pradesh – UPTRON, Andhra Pradesh - APTRON (APEL), Karnataka – Keonics, Tamil Nadu – ELCOT, West Bengal – WEBEL, Maharashtra – MELTRON, MP– OPTEL, Gujarat – GECL, , Rajasthan – REIL, Haryana – HARTRON, Punjab – PUNWIRE,” said Captain Om Prakash Dua, MD, KELTRON. “KELTRON’s success over the years can be attributed to its approach of working in partnership with customers to fully understand their core business values as well as technological needs and environments. This ensures the most strategic, cost-effective and successful technological solution is implemented for the individual customer,” Dua added. and so on, and all of them were in expansion mode last year to enable the company to get closer to the customer. According to R.S. Sharma, Chairman & Managing Director, NTPC, which is now 34 years old, all efforts are geared towards maximizing shareholders’ wealth in line with the best corporate governance practices, including sensitivity to the environment and the society. “Optimization of cost should be integral to our working. The company is participating in the entire value chain of power development to contribute to the Government’s commitment of providing power for all by 2012. The policy and legal framework in the power sector provides a platform for growth to all the power players. We are confident that the appropriate policies and guidelines shall continue to encourage investment in the sector. The Company will also develop green field sites, expand capacity in its existing units, will add capacity through subsidiaries and joint ventures and will also take-over viable stations to become 75,000 MW Company by 2017, thereby achieving CAGR of 10.6 per cent whereas national CAGR works out to 9.6 per cent,” he said. Challenges Availability of skilled human resource remains a key concern for companies. Factors impacting employee cost include demand-supply gap and high attrition rate. Companies need to control cost by A SILVER JUBILEE ment. The drive to develop core R&D skills was, in large part, prompted by the threats and opportunities presented by globalisation. There were other reasons too like improvements in product quality and processes, but the prime mover was the realisation that having innovation capabilities leading to world class products was essential for companies to go global. Having been around for more than 25 years, it is time for these companies to now invest in R&D. Indian companies have long been criticised for their low level of investment in R&D, both in India and other parts of the world. This fact has prevented them from becoming serious players in global markets. Most companies spend a fraction of their sales, less than 1%, on R&D. As IS A TIME TO LOOK BACK AND THANK EVERY PERSON WHO HAS CONTRIBUTED - FR JOSEPH CARTER hiring freshers and training them inhouse, which also takes care of quality issues. Training and development will remain the key to developing skilled human resources for companies. Managing employee cost will remain a key challenge for the companies. Other than human resource, the other challenge which necessarily affects every company, however old it may be, will be to improve governance, reducing corruption, upgrading education, checking environmental degradation and water scarcity. On an overall basis, it is integral to analyze the conditions in the fields like role of micro financing in eradicating problems of poverty and unemployment, the problems and prospects of knowledge economy, chances and challenges of outsourcing in service sector, role of insurance companies in making the future brighter and safer, aggressive retailing and millions of retailers, impact of future trading in commodities on smaller traders, reforms and changing pattern of lending and borrowing and challenges before the public sector banks. For most companies which have crossed the silver jubilee period the future course is unanimous as sounded by Anuradha J. Desai, Chairperson, Venkateshwara Hatcheries Pvt. Ltd., which has completed 38 years, “We look at the past with satisfaction and look at the future with awareness of the challenges, and try our best to meet the challenges of the future.” Another challenge which most of these companies face is that of future competition and not getting complacent. “Any institution which starts is short of funds and has its own challenges to face. It is in phases that we build a strong enterprise. Once that falls into place then most of what has to be conquered has been. Then it is all about sustainability and the main challenge remains of competition. This is what happens after 25 years. Till 25, you can take shelter but after which you are in the open. Human resource issues, adept knowledge of strengths & weakness, contemporariness, etc are main factors to be considered. Apart from these it is very crucial that an organisation follows a modern management method. Competition too can be conquered then,” said Prof. K. M. Kaveriappa, Vice Chancellor, Mangalore University which has completed 29 years. Innovation Strategy for the Silver league enterprises will now be to focus more on innovation and Research & Develop- a result, India has often been viewed as a third-world country that stumbles along by copying western products, aided by lax patent policies. The long-term objective has to be to optimally foster greater global competitiveness for Indian industry as well as to ensure faster innovation, wealth creation and overall development. Innovation is a process to achieve measurable value enhancement in any commercial activity, through introduction of new or improved goods, services, operational and organisational processes. It is a significant factor in facilitating competitiveness, improvement in market share and quality as well as reduction in costs. What began with R&D and strategy has moved to the third, and probably the most important phase in the history of innovation in the Indian business setup. However, the most effective combination of products, R&D and strategy would bring out the best in innovation from India. The enterprises in the silver league have already set new benchmarks in services and delivery. But, the focus now has to be on innovation. These companies indeed been innovative, but unfortunately in most cases, they have not been able to showcase this innovative trait to the world. Innovation is the path to growth and sustenance and these companies are now strongly treading that path. Conclusion The constraints that Indian companies which have crossed the 25 year mark face are a blessing in disguise, and meeting these challenges will ensure that they become global leaders of tomorrow. With demographic & technological changes sweeping the world, the future of business will be very different from the past. Indian companies that focus on future, rather than past, will have a chance to emerge as global leaders. To make this leap, companies have to consciously focus on the future, than merely managing the present. Companies must evaluate what percentage of their projects is about managing the current environment and what percentage is about creating future. They must focus on creating the future, while selectively forgetting the past. Apart from facing the challenges and not being complacent, these companies will now have to focus a lot more on innovation and R&D, which are factors that will shape the future course of the country as well as the route to reach the golden, platinum and centennial phases. These companies which have already understood the value of growth with time will now have to focus more inorganic growth. Mergers, acquisitions will be the norm and spreading boundaries will play a vital role in establishing their future. Overall, the companies that have turned 25 or have already seen 25 and are moving ahead to touch 50 will have a great responsibility of branding India’s business in the global world and create the country’s image as a consistent and robust business platform for the world. It is a journey that is now beginning and companies who have already proven their might have a tougher challenge....to prove it again a second tenure and this time it just might be tougher, considering the expectation of the market, the economy world over, the expectations of consumers as well as that of the employees and above all the main challenge will be for the young guns to prove their might in an exceedingly demanding atmosphere of business. Only time will tell as to how many of these in the silver league will be SILVER JUBILEE CAN ILLUSTRATE HOW MUCH MORE NEEDS TO BE DONE able to touch the golden sphere, but it is certain that many of these enterprises surely have a direction of business - both in the long term as well as in the short term. When companies are closing every other day due to varied global implications, these sterling enterprises have proved to be on firm ground and it surely is making the country drive on top gear in terms of growth, recognition and above all trust. 3 AUGUST 31 I 2009 POULTRY FARMING, AN INTEGRAL PART OF OUR AGRICULTURAL ECONOMY, PLAYS A VITAL ROLE IN RURAL EMPLOYMENT GENERATION, COMBATING MALNUTRITION AND EMPOWERMENT OF WOMEN. AND EVERY SINGLE INNOVA- TIVE STEP TOWARDS THE TRANSFORMATION OF INDIA’S POULTRY INDUSTRY FROM A BACKYARD ACTIVITY CONFINED TO RURAL POOR HOUSEHOLDS INTO A MODERN, SCIENTIFIC, TECHNOLOGYDRIVEN INDUSTRY, CAPABLE OF COMPETING WITH THE INDUSTRIES IN THE ADVANCED COUNTRIES, WAS TAKEN BY VENKATESHWARA HATCHERIES GROUP. Venkateshwara Hatcheries Group (VH Group), established in 1971 by the late Padmashri Dr. B.V. Rao, is a pioneering organization which has been in the fore-front of the growth and modernization of the Indian Poultry Industry for nearly four decades. The Group plays an important role in our national effort to achieve “Nutrition Security for all” through its chosen field of poultry farming. With a mission to provide to the farmers, the best quality products and after-sales services and give total customer satisfaction in terms of quality, pricing & relationship and to make India the No.1 country in poultry, at least in the layer segment – both quantitatively and qualitatively, the group is focused on its mission set by its founder Dr. B.V. Rao – fondly remembered by poultry farmers as Father of Indian Poultry Industry. “The role of VH Group is two-fold – one as a facilitator of growth by providing to the farmers, every essential input required for successful poultry farming, matching the best international quality standards and technical services round-the-clock, all under one umbrella, at the farmers’ door steps. Secondly, we intend to unify and empower the farmers to get a remunerative price for their produce, by supporting farmers’ organizations like NECC & Bromark, and also by creating facilities for exports, value-addition, like poultry processing and egg processing; creating a nation-wide network of retail distribution outlets,” said Anuradha J. Desai, Chairperson, Venkateshwara Hatcheries Pvt. Ltd. Achievements For VH Group the most important achievement was the enhancement of productivity levels of both layer and broiler birds – in terms of life-span, feed conversion ratios, reduction in number of days to attain the desired body weight in broilers etc, which enabled the farmers to remain in business in spite of higher input costs and fluctuating market conditions. Other achievements include establishment of a nation-wide network of disease diagnostic and technical service centres, and the Institute of Poultry Management, which helped thousands of entrepreneurs to manage their farms scientifically, and providing the best technology in every aspect of poultry to the door steps of poultry farmers in India. India Presence Anuradha J. Desai, Chairperson, Venkateshwara Hatcheries Pvt. Ltd. In the Indian market, together with its Franchisees, VH Group have over 85% of the layer day-old chick market, and 75% of the broiler day-old chick market. On the export front, VH Group exports Egg Powder to various European, Middle-East and Far Eastern countries. “We are also exporting Hatching eggs to Middle East and a few African countries,” said Desai. TOADY, A RS 11,000 MILLION MULTI-PRODUCT, MULTI-CHANNEL CORPORATION PART OF THE PRESTI- SHAPOORJI PALLONJI GROUP, EUREKA FORBES BEGAN IN 1982 AS A JOINT VENTURE BETWEEN THE FORBES GROUP AND ELECTROLUX OF SWEDEN. SINCE GIOUS THE STORY OF THEN THE COMPANY HAS BEEN PIONEERS & LEADERS IN WATER PURIFICATION SYSTEMS, VACUUM CLEANERS & AIR PURIFIERS AND PEOPLE WHO INTRODUCED DIRECT SELLING IN INDIA One of Asia’s largest direct selling organization with over 7,500 strong direct sales force touching the lives of 1.7 million Indian homes across 600 cities and towns through Direct Operations in over 130 cities and franchised direct operations in over 470 towns, Eureka Forbes has expanded channels that reach out to customers to include a 10,000 strong dealer sales network and a 58 distributor strong institutional sales network. Today, Eureka Forbes is ranked among India’s Most Admired Consumer Durable Companies & also one of the Best Employers in Asia. The essence of the story of Eureka Forbes since inception has been in a single word Relationships,” says Suresh L Goklaney, VC & MD, Eureka Forbes. “Relationships have made us reach out to our customers in their homes, transforming the way they purify their drinking water, clean their homes and the air they breathe, and secure their families so that they lead happier, healthier lives. And they have encouraged us to provide opportunities for our people to realize the potential of their dreams,” he adds. Eureka Forbes Launched India’s First Vacuum Cleaner in India in 1982 followed by Aquaguard water Purification system in 1984. Today Aquaguard is India’s first Superbrand water purifier that enjoys the trust of over 20 million users. Aquaguard’s range of over 20 products deploy 5 different technologies to cater to 17 diverse water conditions across the country. Aquaguard’s latest SMP+ technology is the first of its kind in the world. It maintains a healthy balance of the natural minerals in your water. Aquaguard offers complete protection not only against disease causing bacteria and virus but also dangerous new age contaminants like Lead and Pesticides. AquaSure SureBoil range of water purifiers provides safe drinking water to homes even without electricity and running water. To cater to the needs of Indian homes at different price points, the company has a range of AquaSure Power Boil water purifiers available on the retail shelf too. Euroclean Vacuum Cleaners with over 2.5 million satisfied customers is India’s Largest Selling Vacuum cleaners and a Superbrand. To provide health and hygiene solutions to industrial and institutional customers, Eureka Forbes has now formed two companies called “Forbes Facility Services Limited” and “Forbes Concept Hospitality Limited” which provide housekeeping, Maintenance and Foodservice solutions. In order to tap global opportunities, Eureka Forbes has tied up with another giant in the world of Direct Sales - Lux international of Switzerland - and formed a Joint Venture called Forbes Lux Group. “Our vision to provide happy, healthy and pollution free environment that is built on trust and lasting relationships with our customers continues to be our guiding light. In recent times we have forayed into Developing New Markets and New technologies. The company is working on path breaking technology that will make drinking water safe and affordable for villagers at 10 paise a litre,” said Goklaney. Suresh L Goklaney, VC & MD, Eureka Forbes 4 AUGUST 31 I 2009 A SILVER JUBILEE HAS A SPECIAL SIGNIFICANCE IN THE LIFE OF ANY INSTITUTION AS IT SIGNIFIES A COMING OF AGE AND MATURITY. IT BECOMES IMMENSELY SIGNIFICANT IN TIMES LIKE THE ONE WE ARE LIVING IN – THAT OF AN ECONOMIC UNCERTAINTY. ITS PROFOUNDNESS INCREASES WHEN THE MILESTONE HAS BEEN REACHED IN A COUNTRY LIKE INDIA WHICH HAS ALL THE MIXED RESOURCES TO MAKE STRONG BARRIERS. HERE ARE FEW COMPANIES WHICH HAD THE STRENGTH TO HOLD ON, FIGHT AGAINST OPPRESSION, AND TAKE ON THE ROAD TO SUCCESS WITH RAW COURAGE BORN OUT OF SPIRITED MINDS AND ROBUST IDEAS. BUT THESE ARE COMPANIES WHICH ARE ON THE BEGINNING OF THE LONG JOURNEY THAT TESTS SUSTENANCE POWERS. AND LOOKING BACK AT THEIR JOURNEY SO FAR, THEY SHOW TREMENDOUS PROMISE TO SUCCEED AS THEY ENTER ADULTHOOD OF THE BUSINESS WORLD. THE COMPANIES FEATURED HERE ARE FEW AND IN NO SPECIFIC ORDER. Apollo Tyres Bharat Petroleum Coal India GAIL Registered as a company in 1976, Apollo Tyres Ltd, a leading tyre manufacturer has three manufacturing units in India, four in Southern Africa and one in the Netherlands, with a green-field facility currently underway in Chennai. Apollo’s subsidiary companies are Apollo Tyres South Africa Pty Ltd (previously known as Dunlop Tyres) and Apollo Vredestein BV in the Netherlands. India, South Africa and Europe are the company’s three domestic markets from where products are exported to over 70 countries. On July 23rd 2009, the company announced its consolidated 1st quarter revenues which grew by 24% to reach net sales of Rs 16.3 billion. On 24th January 1976, the Burmah Shell Group of Companies was taken over by the Government of India to form Bharat Refineries Limited. On 1st August 1977, it was renamed Bharat Petroleum Corporation Limited (BPCL). It was also the first refinery to process newly found indigenous crude (Bombay High), in the country. Bharat Petroleum produces a diverse range of products, from petrochemicals and solvents to aircraft fuel and speciality lubricants. BPCL registered a net profit of Rs 614.12 crore for the first quarter ended June 30, 2009. The company had a net loss of Rs 1,066.7 crore in the same quarter last year. Coal India Limited was formed as a holding Company in 1975 with 5 subsidiaries viz. Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Western Coalfields Limited (WCL), Eastern Coalfields Limited (ECL) and Central Mine Planning and Design Institute Limited (CMPDIL). Coal India contributes around 85% of coal production in India. Coal India Ltd plans to raise up to 60 billion rupees ($1.25 billion) by selling 10 percent through an initial public offer (IPO) expected within a year. CIL would provide 312 mt of coal to power utilities in this financial year, compared with 292 mt which the navratna coal PSU provided in 200809. GAIL (India) Limited, the country’s largest gas transportation company, was incorporated on 16th August ,1984 integrating all aspects of the Natural Gas value chain and its related services. In a rapidly changing scenario, GAIL is spearheading the move to a new era of clean fuel industrialisation, creating a quadrilateral of green energy corridors that connect major consumption centres in India with major gas fields, LNG terminals and other cross border gas sourcing points. This year, GAIL announced that it will invest Rs 7,600 crore in building India’s longest gas pipeline from Jagdishpur in Uttar Pradesh to Haldia in West Bengal. Hero Honda HCL HPCL Infosys In 1983, the joint venture between India’s Hero Group and Honda Motor Company, Japan not only created the world’s single largest two wheeler company but also one of the most successful joint ventures worldwide. Hero Honda bikes currently roll out from its three globally benchmarked manufacturing facilities. Two of these are based at Dharuhera and Gurgaon in Haryana and the third state of the art manufacturing facility at Haridwar, Uttrakhand. These plants together are capable of producing out 4.4 million units per year. Hero Honda Motors posted an 83% jump in net profit for the June quarter. HCL is a leading global Technology and IT Enterprise with annual revenues of US$ 5 billion. The HCL Enterprise comprises two companies listed in India, HCL Technologies and HCL Infosystems. The 3 decade old enterprise, founded in 1976, is one of India’s original IT garage start ups. Its range of offerings span R&D and Technology Services, Enterprise and Applications Consulting, Remote Infrastructure Management, BPO services, IT Hardware, Systems Integration and Distribution of Technology and Telecom products in India. As on 31st March 2009, HCL’s total revenues touched $5 billion. In 1979, Hindustan Petroleum Corporation Limited (HPCL) came to being after merging four different organisations at different points of time. HPCL is today a fortune 500 company and one of the major integrated oil refining and marketing companies in India. HPCL accounts for about 20% of the market share and about 10% of the nation’s refining capacity with two coastal refineries, one at Mumbai (West Coast) having a capacity of 5.5 Million Metric Tonnes Per Annum and the other in Vishakapatnam (East Coast) with a capacity of 7.5 MMTPA. HPCL reported a net profit of Rs 649.12 crore for the first quarter ended June 30, 2009. Infosys Technologies Ltd., India’s second largest software exporter, was started in 1981 by seven people with US$ 250. Today, it is a global leader in the “next generation” of IT and consulting with revenues of over US$ 4 billion. Infosys’ offerings span business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, independent testing and validation services, IT infrastructure services and business process outsourcing. Infosys Technologies posted a 17.3 per cent rise in first quarter net profit to Rs 1,527 crore. Maruti Moser Baer NALCO NTPC Maruti Suzuki India Limited (MSIL, formerly Maruti Udyog Limited), a subsidiary of Suzuki Motor Corporation of Japan, is India’s largest passenger car company, accounting for over 50 per cent of the domestic car market. Since inception (1981), the company has produced and sold over 7.5 million vehicles in India and exported over 500,000 units to Europe and other countries. The company’s net profit for the first quarter of financial year 2009-10 was Rs 5.83 billion, an increase of 25.3%, compared to Rs 4.66 billion in the same period of financial year 2008-09. The company's net sales were Rs 63.4 billion, an increase of 34% from the first quarter of 2008-09. Moser Baer is the world’s 2nd largest optical storage media manufacturer and supplies to the world’s top dozen brands. The company was founded in New Delhi in 1983. 75% of its revenue comes from exports; although most of that is from OEM products. Their product range includes floppy disks, CDs, and DVDs. Moser Baer has a presence in over 82 countries, serviced through six marketing offices in India, the US and Europe. Its 4 manufacturing facilities are located in Noida. The company was among the first to set up a wholly-owned subsidiary, in 2005 - Moser Baer Photo Voltaic Limited. This year it introduced low cost MP3 players in the Indian market. National Aluminium Company Ltd (Nalco) was incorporated in 1981 in the Public Sector, to exploit a part of the large deposits of bauxite discovered in the East Coast. Nalco is considered to be a turning point in the history of Indian Aluminium Industry. In a major leap forward, Nalco has not only addressed the need for self-sufficiency in aluminium, but also given the country a technological edge in producing this strategic metal to the best of world standards. It is Asia’s largest integrated aluminium complex, encompassing bauxite mining, alumina refining, aluminium smelting and casting, power generation, rail and port operations. NTPC, India's largest power company, was set up in 1975 to accelerate power development in India. Today, it has emerged as an ‘Integrated Power Major’, with a significant presence in the entire value chain of power generation business. NTPC was ranked 317th in the ‘2009 Forbes Global 2000’ ranking of the World’s biggest companies. With a current generating capacity of 30,644 MW, NTPC has embarked on plans to become a 75,000 MW company by 2017. This year, NTPC achieved the highest ever single day generation of 655.22 MUs with the highest ever single day coal based generation of 579.02 MUs. NIIT Sahara Swaraj Mazda Vizag Steel NIIT is a leading Global Talent Development Corporation, building a skilled manpower pool for global industry requirements. The company which was set up in 1981, to help the nascent IT industry overcome its human resource challenges, has today grown to rank among the world’s leading talent development organisations offering learning solutions to Individuals, Enterprises and Institutions across 40 countries. NIIT’s training solutions in IT, Business Process Outsourcing, Banking, Finance and Insurance, Executive Management Education, and Communication and Professional Life Skills, touch five million learners every year. Founded in 1978 by Subrata Roy, Sahara India Pariwar is a major entity on the corporate scene having diversified business interests that include Finance, Infrastructure & Housing, Media & Entertainment, Consumer Products, Manufacturing, and Services & Trading. Under its finance businesses Sahara operates in Para-banking, Life Insurance, Mutual Funds and Home Loans sectors. Under its Motion Pictures business, Sahara is engaged in business of producing, marketing and distribution of motion pictures. This year Sahara Prime City, part of the group, is planning to raise up to Rs 5,000 crore by year-end through an initial public offer. Established in 1983, Swaraj Mazda Limited is owned by the Sumitomo Corporation of Japan and Punjab Tractors Limited of India, with a technical collaboration with Isuzu and Mazda of Japan. Sumitomo upped its stake in the company this year by purchasing all of Punjab Tractors remaining shares, raising their stake to 53.5%. The company manufactures light commercial vehicles like trucks, buses, ambulances, police personnel carriers, water tankers and special vehicles. It exports its products to countries like Nepal, Zambia, Bangladesh, Kenya, Tanzania, Ghana, Ivory Coast, Rwanda, Seychelles, Syria and Jordan. Vizag Steel Plant (VSP), also known as Visakhapatnam Steel Plant was founded in 1971 and is among India’s premier steel mills. It has also been conferred the Mini Ratna status. VSP today is among the lowest cost steel producers in the world. The Plant was designed in late 1960s but by the time its chief Consultants - MN Dastur & Company’s reports were accepted in 1984, it had become the most expensive steel plant ever to be constructed, designed to produce about 3 million tonnes (Mt) of processed steel per year. Now, it has plans to expand plant capacity to 6.3 Mt by 2010-11, with the mission to expand further in subsequent phases. Inside Silver Jubilee has a special significance in the life of any institution as it signifies a coming of age and maturity. We present few companies which have either just touched mile 25 or have crossed it and moving ahead towards touching ...Page 4 mile 50. The Indian Express- Ahmedabad, Chandigarh, Delhi, Jammu, Kolkata, Lucknow, Mumbai, Nagpur, Pune, Vadodara The Financial Express- Ahmedabad, Bangalore, Chandigarh, Chennai, Hyderabad, Kochi, Kolkata, Lucknow, Mumbai, Delhi, Pune A Space Marketing Feature INDIAN COMPANIES WHICH LASTED TO TOUCH September 30, 2009 25 YEARS HAVE A RARE PERSONA. THEY ARE COMPANIES BUILT ON STRONG IDEALS, FOCUSED GOALS, AND ROBUST VISION. FIRST GENERATION ENTREPRENEURS ALSO, WHO ARE TWO TO FIVE YEARS OLD AND LOOKING AT MILE THIS 25 BUT THEN THERE ARE THE WITH MUCH EAGERNESS, STUDYING MARKET DYNAMICS AND STRESSING ON STRATEGIC PLANNING. BUNCH OF ENTREPRENEURS, WHO HAVE COME TO FORE WITH AN IDEA, HAVE ENOUGH EXAMPLES TO LOOK AT – WITHIN AND ABROAD, BUT THE CHALLENGES ARE APLENTY AND WHILE 25 YEARS SEEM TOO LONG A TIME, THEY ARE STRUCTURING THEIR IDEALS, VISIONS AND GOALS TO LAST THAT LONG. Entrepreneurs with fire in their bellies don’t last only because of an idea but it is when they strike the right balance between their ideas as well as the market needs. It is one voyage where the thrill is as much in the ride as in reaching the destination. One needs to build an understanding of the industry, a mental map of the players, recording developments and the trends in the marketplace. Achieving preset goals is not just about outwitting competitors but thinking in the right direction and the flexibility to change with the business scenario. Today, despite all the difficulties of doing business in the country, India has become a fertile ground for breeding new entrepreneurs. The country is still holding its ground in the midst of the current global financial crisis and technological developments keep throwing up new opportunities. Investor sentiment in India has improved significantly in the first quarter of 2009, according to a survey conducted by Dutch financial services firm ING. With foreign assets growing by more than 100 per cent annually in recent years, Indian multinational enterprises (MNEs) have become significant investors in global business markets and India is rapidly staking a claim to being a true global business power, according to a survey by the Indian School of Business and the Vale Columbia Center on Sustainable International Investment. The skill to identify, face and solve problems is critical for all entrepreneurs, new and existing. In developing first-generation entrepreneurs, providing business opportunity guidance is very critical. Many first -generation entrepreneurs do not have sufficient knowledge and skills to identify and assess the entrepreneurial opportunity. “I strongly believe that a successful company is a combination of the right people and the knowledge. To hit our targets we need to keep innovating and bring in the right people to sustain and manage innovation. I believe in nurturing young innovative ideas alongside experienced management who can take the concepts and turn them into fruitful projects,” says Raj Anand, Founder/Operations Director, Kwiqq, a social website builder, who won Europe’s Young Entrepreneur 2007 Award by BusinessWeek. The Veterans 25 Years represent a significant milestone in the Life of an organisation. It is not that many organisations live to see 25, given the current economic scenarios and possibilities. There are many stakeholders - Customers, Vendors, Employees, Employers and share holders who would be responsible for the Milestone 25 for an organisation. Says G. Saroja Vivekanand, Joint MD, Visaka Industries, which has completed 25 years, “For the last 25 years, Visaka Industries has been steadily growing and consistently paying dividends to its shareholders. Visaka has been prompt in repaying its debts to all the banks. The founder, Dr.G.Vivekanand’s vision of serving the society is met by prompt payments to its suppliers, good quality, price and service to its customers, prompt servicing of its financial obligations to its lenders, consistent dividend to its shareholders, and a company working environment along with opportunities of growth to its employees. These factors have played a vital role in the journey of Visaka.” For companies which have already crossed the 25 year mark, the going was not always smooth. The beginning of the journey has always been tough and patch in between is usually a routine affair. But the survival depends on the competency of the management which is an important factor. Says K.S.Sreenivas I.A.S, Managing Director, Kerala Mineral & Metals Limited, which has also completed 25 years, “During the initial phase of production, 1984 when the plant was commissioned to produce Titanium Dioxide Pigment, when the company was trying to achieve full capacity, it went through some teething troubles. These problems, continued right into the 1990s; but undeterred by these problems, the experienced management of the company, with its own expertise from inside, achieved a major breakthrough in Financial, Production, Maintenance, and HR management. Produc- tion increased gradually and the company began to develop newer grades of pigments.” Another aspect that many companies attribute their successful 25 years to, is relationship. Eureka Forbes Limited (EFL)is one such example. The essence of the story of Eureka Forbes since inception has been in a single word ‘Relationships’. Relationships have made the company reach out to its customers in their homes, transforming the way they purify their drinking water, clean their homes and the air they breathe, and secure their families so that they lead happier, healthier lives. And they have encouraged the company to provide opportunities for its people to realize the potential of their dreams. It was able to reach out to its customers in their homes, transforming the way they purify their drinking water, clean their homes and the air they breathe, and secure their families so that they lead happier, healthier lives. Known to be an aggressive sales organization that brought a new way of making purchase decisions at home, Eureka Forbes pioneered the concept of Direct Sales in India. “We attribute our success to our most valuable asset, our People, who we call Eurochamps. They have been and continue to be the cornerstone of our success story. When Eureka Forbes started out in 1982 concepts like Vacuum Cleaning and Water Purification were unheard of. For it to succeed EFL had to ensure that it reached out to customers and demonstrated the products and explained the concepts in a manner that would bring out the customer’s latent need. This led to the introduction of Direct Selling in India and since then EFL has never looked back,” says Suresh L Goklaney, VC & MD, Eureka Forbes. Another example of long term planning and societal uplift that has seen a company touch global heights and success is that of Venkateshwara Hatcheries. A company founded by Dr. B.V. Rao – fondly remembered by poultry farmers as Father of Indian Poultry Industry, it has been an example of how, with a small idea but strong beliefs, a company can become a synonym to success itself. VH Group, as it is widely known, has been able to create an aura of optimism in a world of poultry farming which was a backyard hobby of rural India. Bringing it to the mainline, the company set a revolution of sorts and created an industry that has made India touch the top-line nudging shoulders with developed nations. .”The role of VH Group is two-fold – one as a facilitator of growth by providing to the farmers, every essential input required for successful poultry farming, matching the best international quality standards and technical services roundthe-clock, all under one umbrella, at the farmers’ door steps. Secondly, we intend to unify and empower the farmers to get a remunerative price for their produce, by supporting farmers’ organizations like NECC & Bromark, and also by creating facilities for exports, value-addition, like poultry processing and egg processing; creating a nation-wide network of retail distribution outlets,” said Anuradha J. Desai, Chairperson, Venkateshwara Hatcheries Pvt. Ltd. Long Way to Go The role of an Entrepreneur is key to a company’s success and how the are able to live & breathe the Vision, Mission and Goals set out. Whether 25 years is a milestone is really a tough call to make due to the varied challenges of business and the complexities of the company management. Other than that, today’s young entrepreneurs really don’t think 25 years due to the numerous business possibilities that come up during the first couple of years of the Industry incubation. “Market conditions such as recession, competition, economic and social conditions of the region or country add to the normal hurdles and challenges that a company faces during its journey. Growth, complacence and sustaining the long term vision are some of the very important questions that come up during the 25 journey. Many times the initial team that starts the ven- Contd. on Page 3... 2 SEPTEMBER 30 I 2009 MANUFACTURING TITANIUM DIOXIDE THROUGH THE CHLORIDE ROUTE, KERALA MINERALS & METALS LTD (KMML) PRODUCES VERY PURE RUTILE GRADE TITANIUM DIOXIDE PIGMENT. THE DIFFERENT GRADES CHURNED OUT BY KMML UNDER BRAND NAME KEMOX HAS A READY MARKET WHICH ASKS FOR MORE. THE COMMENDABLE WORK IN RESEARCH BY R&D DEPARTMENT HAS ALSO KMML TO ADD MORE COLOURS TO ITS PORTFOLIO. THE HELPED The history of the beaches of Sankaramangalam and nearby areas is inextricably intertwined with the history of the precious beaches and KMML. Precious, as was discovered in 1909 by the German scientist Dr. Schomberg who found traces of monazite in the sand flakes on the imported coir from Sankaramangalam. The beaches with a wealth of rare earth minerals became the centre of scientific attraction. By 1932, a visionary private entrepreneur established the F. X. Perira and Sons (Travancore) Pvt. Ltd, the forerunner to KMML. During the course of time, KMML changed hands three times over. In 1956 it was taken over by the state government and was placed under the control of the industries department. The unit was subsequently converted as a limited company in 1972 by the name of ‘The Kerala Minerals and Metals Ltd.’ The construction of Titanium Dioxide Pigment using chloride technology started in 1979. The same was commissioned in 1984. “KMML is the world’s only fully integrated Titanium Dioxide pigment manufacturer. The company has a production capacity of 40,000 metric tons. The year 2008-09 is a golden year for KMML. The turn over of the company moved up to Rs. 464 crore and registered a quantum growth of 33%. The profit before tax for the year is Rs. 31 crore. We have managed our operation by producing 35518 MT of pigment and marketing 38465 MT of pigment to achieve this profit. This production and sale figures are highest in the history of KMML,” said K.S.Sreenivas I.A.S, Managing Director, KMML. During October, 2008 the Government of Kerala sanctioned 3 major cost reduction projects for implementation. These are Projects for separation of Minerals at an estimate cost of Rs. 21 crores; Capacity Augmentation of Synthetic Rutile Plant at an estimate cost of 32 crores and Fuel conversion system at an estimate cost of Rs. 44 cores. KMML is also setting up a Titanium Sponge Plant with an installed capacity of 500 Tons per Year (TPY) which later will be expanded to 1000 TPY. “The plant will utilize technology developed by the Defense Metallurgical Research Laboratory, Hyderabad (DMRL). The plant will be first of its kind in the country and on commissioning, India will be the seventh nation attaining capability to produce Titanium Metal. The project is expected to cost Rs. 145 crores and is fully funded by ISRO,” said Sreenivas. The construction activity of the new plant is in full swing. Orders for all major machinery have been placed. Installation of machinery will commence by mid September 2009. Commissioning trails are scheduled for Dec K.S.Sreenivas I.A.S, MD, KMML 2009 and the plant is scheduled to start commercial production by June 2010. “Now the present project on Titanium Sponge is to go one step ahead from Titanium Dioxide to Titanium Sponge. The next step would be to make Titanium as a metal. We are right now catering to the interest of the domestic market. Understanding that Titanium Sponge has huge demand, world over, the government of Kerala is planning to setup 10,000 tons plant in association with Russia. Of course it is just in the initial stage. If the plant is realized, then out of the 10,000-tons of sponge, about 75-80% would be exported,” said Sreenivas. KMML is also coming out with a power project using the cogeneration method. The company is looking at a 20 MW capacity cogeneration plant in a year or so. KMML is in the process of producing nano titanium dioxide pigment. Its research and development department have completed preliminary work on the same and a pilot plant is being set up for the production of nano pigment. VISAKA INDUSTRIES WAS ESTABLISHED IN 1981 TO MANUFACTURE CORRUGATED CEMENT FIBER SHEETS. WITH THE INITIAL PRODUCTION CAPACITY OF 36,000 TONS PER YEAR, THE FIRST FACTORY IN PATANCHERU, ANDHRA PRADESH COMMENCED COMMERCIAL PRODUCTION OF CEMENT SHEETS IN 1985. THE COMPANY DIVERSIFIED INTO TEXTILE YARN MANUFACTURING IN 1992. SINCE THEN THERE HAS BEEN NO LOOKING BACK. Incorporated as Visaka Asbestos Cement Products Limited in the year 1981, Dr.G.Vivekanand, an MBBS graduate was clear in his pursuit. Understanding his lack of experience in the business, he focused on getting the most proficient professionals in the field onboard. “He got in various professionals in different disciplines based on their experience. He remained the Joint Managing Director of the company while a professional head was the MD initially,” says G. Saroja Vivekanand, Joint MD, Visaka Industries. The company started as an asbestos cement sheet company. The first plant commenced production on 1st April 1985, and the first full year of production was January 1986 to December 1986, the calendar year at that time. In the first full year of production, the company made profits and declared dividend. At a time when Andhra Pradesh’s reputation among banks was that of a bad paymaster as many companies took loans, floated companies and then went sick, few companies were successful. “It was mainly because of Dr Vivekanand’s foresight and his seriousness towards running the company on a long terms basis that Visaka could successfully wade through the storm. In due course of time, he got a hang of the business and became the MD in 1989. But unfortunately at that time further license for future expansion was difficult as the industry was not giving new licenses. So we had to look for other alternatives. In the quest for further growth, Cement was too big to handle as our turnover was about Rs 10-15 crores. The other core sector that looked prospective was yarn. In 1990, the company changed its name from Visaka Asbestos Cement Products Limited to Visaka Industries because we were getting into the yarn business and the company name had to adequately reflect that we were not just in Asbestos, but were in other businesses also,” said Saroja. For the last 25 years, Visaka has been steadily growing and has been consistently paying dividends to its share holders. Visaka has been prompt in repaying its debts to all the banks. Visaka continues its corporate social responsibility and provides health, water and education to the under-privileged. When the company entered spinning, it did not go for the conventional ring spinning model, but went for the latest technology, and at that time in India nobody had entered into Twin Air Jet technology. The company entered the twin air jet technology and all the machines were imported from Japan. 1992-93 was the first full year of spinning operation and that was the only year when we made loss due to G. Saroja Vivekanand, Joint MD, Visaka Industries devaluation of currency in 1991, which effected us. 1992-93 and the subsequent year was the only time when we could not declare dividends, but after these two years, the company has been continuously declaring dividends. In 1985-86, the company was 7th in the industry in terms of overall capacity; today it is 2nd after Hyderabad Industries Limited. The company operates in 15 states in terms of sales and about 6 states in terms of manufacturing presence viz., AP, Maharashtra, Tamil Nadu, Karnataka, West Bengal and Uttar Pradesh. “The idea is that if you put up a plant, you should be able to sell its production within a radius of 300500 kms because the transportation cost in terms of percentage of turnover constitute about 10% of the turnover. So if you make 1 rupee of sale, the transport cost will be 10 paise. So it becomes a key element,” said Saroja. In 1988, the turnover of the company was Rs 10 cores, which has grown to Rs 550 crores in 2008-09. The company is looking at Rs 600 crores turnover in 2009-10. 3 SEPTEMBER 30 I 2009 CMC LIMITED, INCORPORATED ON DECEMBER 26, 1975, AS THE ‘COMPUTER MAINTENANCE CORPORATION PRIVATE LIMITED’ IS A LEADING IT SOLUTIONS COMPANY AND A SUBSIDIARY OF TATA CONSULTANCY SERVICES LIMITED (TCS LTD), ONE OF THE WORLD’S LEADING INFORMATION TECHNOLOGY CONSULTING SERVICES AND BUSINESS PROCESS OUTSOURCING ORGANISATIONS. With 18 offices, 150 service locations, 520 non-resident locations and over 3,600 employees worldwide, CMC provides a wide spectrum of unique Information Technology solutions and services to a clientele of premier organisations in the government and private sectors. CMC Americas, its subsidiary, services clients in the US, while its branch offices in the UK and Dubai market its products and services in Europe, Africa and the Middle East. Since its incorporation in 1975, CMC has an enviable record of successfully building IT solutions for massive and complex infrastructure and market projects. Major Tasks • A passenger ticketing and reservations system for Indian Railways, which runs 6,000 passenger trains carrying over 10 million passengers a day, on a 90,000-km railway network covering around 8,000 railway stations. • A comprehensive online real time cargo handling system to integrate all complex and varied activities of container terminals. This system has been implemented for several Indian and International ports. • An online transaction processing system for the Bombay Stock Exchange, which handles millions of securities trading transactions every day. “CMC manages turnkey projects, and have built, managed and supported their customers’ IT systems across the value chain - infrastructure, applications and business processes. That is because its capabilities span the entire IT spectrum: IT architecture; hardware; software (including systems and application software, development or implementation, maintenance, and frameworks); network consulting; and IT-enabled processing services,” said R Ramanan, MD & CEO, CMC Ltd The company has expertise in a wide array of applications, including realtime systems, online systems, embedded systems, process control, transaction processing, image processing, data communications, networking, parallel architectures, e-commerce technologies and e-governance applications. “CMC’s competitive edge comes from combining its technology competencies with its understanding of verticals, straddling a range of sectors from banking and insurance, power, mining and defence to education. Its high quality, high value IT solutions have helped reshape businesses and delivered measurable results to its customers,” said Ramanan. R. Ramanan, MD & CEO, CMC Ltd CMC also conducts significant research into emerging technologies and competence areas at its state-of-theart, ISO 9001-certified R&D centre in Hyderabad. CMC’s customers include some of the biggest organisations in India: Reserve Bank of India, Indian Railways, Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, Oil and Natural Gas Corporation Limited, United Western Bank, Bank of India and Bank of Baroda. CMC’s growth strategy focuses on capitalising on its unique skill sets and leveraging the synergies with TCS and other Tata group companies, for growth in revenue and profitability of its operations. CMC posted revenues of Rs 173 crore for the quarter ended June 30, 2009, compared to Rs 257 crore during the corresponding quarter last year. The net profit was at Rs 26 crore during the quarter under review as compared to Rs 23 crore during the corresponding quarter last year. Earnings per share stood at Rs 17.66 compared to Rs 15.20 during the corresponding quarter last year. ...Contd. from Page 1 ture may not be equipped with skills to old with a big dream to make this comrun the company when it becomes big. pany the largest products company in The initial team often struggles to un- India in the next 25 years,” says leash and allow others to take it for- Koppar. ward. Every five years, the team has to The growth that India has witnessed revise / revisit the strategy to adjust to in the last decade the changed environor so has played ment and business a significant role situation. Any in taking many organisation has to companies to keep re-inventing itthe mile 25. Enself both in terms of trepreneurs like products and services Koppar have it offers. I believe that drawn inspirainnovation holds the tion from suckey to success. It is cessful brands needless to say that like Maruti Anant R Koppar of KTwo the team involved Suzuki, which needs to be continuhas grown with MARKET CONDITIONS SUCH AS ously motivated and India’s growth. RECESSION, COMPETITION, passionate about the Maruti, the piocompany and its obECONOMIC AND SOCIAL neer of the Injectives,” says Anant dian Automotive CONDITIONS OF THE REGION R Koppar, Chairman Industry has OR COUNTRY ADD TO THE & CEO, KTwo Techbeen in existence NORMAL HURDLES AND nology Solutions. for the past 26 CHALLENGES THAT A COMPANY years. India’s Growth FACES DURING ITS JOURNEY. In the words & Inspirations of Managing DiGROWTH, COMPLACENCE AND rector Shinzo SUSTAINING THE LONG TERM Inspite of all posNakanishi, 61, ‘In sible real or imagiVISION ARE VERY IMPORTANT 1983, it was diffinary odds, India toQUESTIONS THAT COME UP cult to even call day stands as a great home. When I DURING THE 25 JOURNEY . example of hard got through I work, dedication, had to shout as commitment, futuristhe line was bad. tic thinking, by all the people involved. Today, Business is tough. Life is easier. This exuberance has resulted in in- Competition is stiff and selling cars is numerable business opportunities for no longer easy. Infrastructure has imentrepreneurs and individuals to ex- proved. Sprawling malls make shopcel. ping easier. The telecom network is “When I travelled 20 years back, for- world class. That’s the speed at which eigners did not recognise or did not India has grown and that’s what it has care about Indians. The scenario is taken for Maruti to really get where completely changed now – there is lot they are today.’ of respect for us as intellectual people. For Ujwal Makhija of Phonon, which After few successful ventures I started provides telecom technology platKTwo, a products company for design- forms to enterprises & content creing and developing innovative Indian ators, India is a developing and futurmade products. KTwo’s vision is to istic market where bureaucracy and basically enhance the quality of life by leadership are creating a stable envibuilding world class products and so- ronment for business to grow. “The lutions through innovative application potential of coming out with innovaof technology. We are currently 2 years tive products and the fundamentals are of services for setting up Television, strong today as a macro factor. The Radio and other media channels, 25 main idea has to be that products im- years is a long period for a start up. pact the common man’s life in terms “I started MediaGuru 5 years ago. of continuous value addition. While The vision at that time was to create a there is ease of getting information it new segment in the is important that media industry, the information is which was undergoleveraged too. ing rapid expansion, I STRONGLY BELIEVE THAT A While the chalspecially in the elecSUCCESSFUL COMPANY IS A lenge lie in low tronic sector, to COMBINATION OF THE RIGHT consideration of meet the prevalent ethics in terms of PEOPLE AND THE KNOWLEDGE. need gap. We have enterprise, I am been very fortunate TO HIT OUR TARGETS WE NEED sure it will change to work with some of TO KEEP INNOVATING AND with time,” he says. the biggest names of BRING IN THE RIGHT PEOPLE. I Makhija is inthe industry. They BELIEVE IN NURTURING YOUNG spired Victor Kiam have helped us gain an American enexperience as well as INNOVATIVE IDEAS ALONGSIDE trepreneur who domain knowledge EXPERIENCED MANAGEMENT first made his forand we have worked WHO CAN TAKE THE CONCEPTS tune as the Presias partners with AND TURN THEM INTO FRUITFUL dent and CEO of them rather than as Remington Prodclients. Through this PROJECTS ucts, which he faexperience we have mously purchased reached where we after his wife are today, as the bought him his first leading media conelectric shaver. He sulting firm in Asia once said, “EntrePacific and among preneurs are risk the most known glotakers, willing to bally. In 25 years we roll the dice with want to become one their money or of the largest media Ujwal Makhija of Phonon reputation on the houses on this side of the world,” he line in support of says. an idea or enterprise. They willingly assume responsiKoppar sites the example of Hewlett bility for the success or failure of a ven- Packard (HP). “HP started many deture and are answerable for all its fac- cades ago and has now become the ets.” Numero Uno even beating IBM to the number one position. From making Worthy Partners PC’s to Servers, they morphed themAnother factor that has played a vi- selves well into the Professional Sertal role in companies crossing hurdles vices space and have now emerged as and reaching where they are, is the the biggest amongst the IT Giants. In partners with whom they worked in this process of reaching a 100 Billion $ Goal, they have successfully acquired the initial stages. many companies such as Compaq, The bigger the brand one is associ- EDS, etc and have merged all the entiated with, the more robust the signa- ties. The challenge we could see has ture of a company becomes. been many of these businesses were According to Sanjay Salil, Founder, competitors and working on the same MediaGuru, a specialist consultancy space and areas, but with the mergers vertical that provides a complete gamut redundant businesses were either re- moved or merged and presented as one entity,” he says. Conclusion While it will take another 15-20 years for most of these entrepreneurs to Rural Success test the fire-in-their-bellies, one aspect There are many successful entrepre- surely comes to fore – that of an emerneurs in the rural gence of first generamarket also and tion entrepreneurs these are the who know their busicompanies which ness and who are have innovative ready to evolve from means and ideas the conservative apto sustain in a proach of a 9-6 job. market which has These are people not yet been who have improvised tapped by others. on innovative ideas It is in this part of and have not relied India where there on anybody to take it Raj Anand of Kwiqq is enough scope further. These are for expansion as entrepreneurs who THE POTENTIAL OF COMING the market potenhave both the innotial and size is OUT WITH INNOVATIVE vative mind along huge. PRODUCTS AND THE FUNDAwith an equally balAmith Agarwal anced business acuMENTALS ARE STRONG TODAY of StarAgri, an men which is necesAS A MACRO FACTOR. THE end-to-end solusary for any start-up. MAIN IDEA HAS TO BE THAT tion provider in Not just that, it is a Wa r e h o u s i n g , PRODUCTS IMPACT THE balance that will see Procurement, them through in the COMMON MAN’S LIFE IN Collateral Manlong run too. These TERMS OF CONTINUOUS agement of Agriare entrepreneurs Commodities is VALUE ADDITION. who will face the test one such entreof time armed with preneur who has not just ideas, but understood the strong market understanding, flexibilrural empowerment mantra and the ity, resources and partnerships. But potential it holds if given the proper what remains to be seen in a practical treatment. He feels that maximising view of today’s scenario is that will customer satisfaction and earning these entrepreneurs be able to keep profits on satisfactory grounds will up with this rare balance of two vivid drive them for long. They were the win- aspects of living in this fast paced world ner of TATA NEN Hottest Startup in with competitive elements all around. 2008. “By tapping on the service asThe very thought of touching the pect in the Agricultural sector and by mile 25 could possibly take a lot of organising this highly unorganised secsheen from the balanced mindset of tor, we are making profits. Secondly many, but at the end of the mile, it will we focus on building customer relabe this very mix of ideas and acumen tionships and their satisfaction, which that they will have to finally thank. also helps us grow. With a very good People, who go along with this balphysical network and partnerships ance will, by all means remain an inteacross industry our vision is ‘Empowgral part of the milestone. ering Rural India’. We want to estabFor most of the companies touchlish a brand to be expanded nationally and uplift rural India where every par- ing mile 25 is a dream and we surely ticipant will have shinning future pros- hope that they are well equipped. pects and satisfactory growth,” he says. 4 SEPTEMBER 30 WE I 2009 PRESENT FEW COMPANIES WHICH HAVE CROSSED MILE 25 AND ARE LOOKING AHEAD VIBRANTLY AT MILE TAKE ON THE ROAD TO SUCCESS WITH RAW COURAGE BORN OUT OF SPIRITED MINDS AND ROBUST IDEAS. NANCE POWERS. AND 50. THESE BUT ARE COMPANIES WHICH HAD THE STRENGTH TO HOLD ON, FIGHT AGAINST OPPRESSION, AND THESE ARE COMPANIES WHICH ARE ON THE BEGINNING OF THE LONG JOURNEY THAT TESTS SUSTE- LOOKING BACK AT THEIR JOURNEY SO FAR, THEY SHOW TREMENDOUS PROMISE TO SUCCEED AS THEY ENTER ADULTHOOD OF THE BUSINESS WORLD. THE COMPANIES FEATURED HERE ARE FEW AND IN NO SPECIFIC ORDER. Apollo Hospitals Archies Gallery Ador Powertron Dr. Reddy’s Apollo Hospitals started as a 150 bed hospital in Chennai in 1983. Founded by Dr. Prathap C Reddy, Apollo Hospitals has made colossal strides to reach where it is with more and more facets of the founding vision turning to reality. Today Apollo Hospitals has become one of the country’s premier healthcare providers. Its standalone Performance for the year ended 31st March 2009, the turnover has gone up from Rs. 1152 crores to Rs. 1480 crores, representing a healthy growth of 29%. Its new initiatives include harnessing technology to address the healthcare delivery gap in the country – Health Hiway. Archies Greetings and Gifts Ltd., was set up in 1979 by Anil Moolchandani and initially sold song books, posters and leather patches. The company’s main product, greeting cards was introduced in 1980. The company went public in 1995. In 1998, it was listed on the National Stock Exchange of India and Bombay Stock Exchange. The company expanded its product range to include artificial jewellery, crystal ware, chocolates and perfumes, and accordingly changed its name to Archies Limited in 2002. Archies has about 2000 outlets and franchisees, called Archies Gallery, spread across 120 cities and 6 countries. Ador Group Company has engineering products and services which include welding, cutting products and projects engineering division; welding technology exchange, education and training; surfacing and reclamation welding; and power electronics. Its Industrial and consumer products company include personal care products and industrial & consumer packaging. The industrial investment/finance services aspect includes industrial investment / venture capital. The company has catered to global requirements including Australia, Bangladesh, Cuba, Denmark, Egypt, Ethiopia, Indonesia, Jordan, Kenya, Kuwait, Malaysia, Nepal, New Zealand among others. Dr Anji Reddy established Dr. Reddy’s Laboratories with an initial capital outlay of Rs.25 lakhs in 1984. Today it is an emerging global pharmaceutical company. Dr Reddy’s products are marketed globally, with a focus on India, US, Europe and Russia. Dr. Reddy’s conducts NCE research in the areas of metabolic disorders, cardiovascular indications, anti-infectives and inflammation. In 2008, Dr. Reddy’s formally announced its US Specialty Business, Promius Pharma, LLC. Overall revenues were at Rs. 18.2 billion ($381 million) in Q1 FY10 as against Rs. 15 billion ($315 million) in Q1 FY09, representing a growth of 21%. DHFL Doshi Associates HBL Power INKARP DHFL (Dewan Housing Finance Limited) was launched on 11th of April 1984 by Rajesh Kumar Wadhawan. The Founder Chairman saw the owning of a home as a critical element to the building of identity and confidence of every Indian. DHFL was only the second housing finance company to be set up in the private sector in India and its stated business objective was to provide access to housing finance to lower and middle income Indians. Today, DHFL with its Corporate Office at Mumbai & 5 Zonal offices strives to reach out to its customers through its extensive network of 74 Branches, 78 Services Centers, 35 Camps managed by 7 Regional Processing offices. Established in 1984 by Janardan Doshi under the name of Doshi Associates, the company started as manufacturers and suppliers of Electrical, Electronic and mechanical spares, accessories and equipments for industrial furnaces. Today, Doshi Technologies is a leading manufacturer and supplier of arc type melting furnace and ladle refining furnace in India. Its design and manufacturing standards have earned it a place of repute in steel making industries. Their Electrode gripping is through Positive clamping with hydraulic cylinder. Their Hydraulic mechanism for electrode movement has minimum moving parts as compared to Winch motor mechanism. HBL Power Systems Ltd is the pioneer in the Design, development and manufacture of specialized batteries and DC systems in India. With over 3 decades of experience in this field, the company offers a wide range of batteries and associated electronics providing its customers, custom built solutions to meet critical requirements. The company is the result of a merger between Hyderabad Batteries Limited (1977) and SABNIFE Power Systems Ltd (1986). The company has its Head Quarters in Hyderabad, with factories and Sales Offices in various parts of the country. HBL also has offices all over the globe to cater to its evergrowing Export Business. Inkarp has been successfully promoting scientific & analytical instruments since 1985, catering to the needs of Pharma, Biotechnology, Life Sciences market. Headquartered in Hyderabad, it has offices in 15 major cities. Over the years, Inkarp has established alliances with a number of leading Foreign Principals, mostly on an exclusive basis. Inkarp success is backed by a skilled and dedicated manpower that form the core strength of the organization. INKARP has, right from its inception, built up an effective customer support process to address the post sale needs of its customers. JK Cement KIOCL Maruti Suzuki Mangalore Univ. JK Cement operations commenced commercial production in May 1975 at its first plant at Nimbahera in Rajasthan. At Nimbahera, the company started with a single kiln with a production capacity of 0.3 million tons. Today, J. K. Cement Ltd. is one of the largest cement manufacturers in Northern India. It is also the second largest white cement manufacturer in India by production capacity. While the grey cement is primarily sold in the northern India market, the white cement enjoys demand in the export market. Its Net Sales /Income from Operations for Quarter ended June 2009 was 42,834.54 Lakhs as compared to Rs 34,352.41 Lakhs the pervious year. Kudremukh Iron Ore Company Ltd (KIOCL) is a Govt of India enterprise having its head office in Bangalore. It has iron ore mines in Kudremukh on the Western Ghats and a pelletisation plant in Mangalore. The administrative activities of KIOCL are carried out from Bangalore. The actual mining takes place at Western ghats at Kudremukh. The mined ore is transported through pipelines running through districts of Udupi and Dakshina Kannada up to the plant in Panambur, adjacent to the premises of New Mangalore Port. The ore is pelletised in the pelletisation plant. These pellets are exported to countries like China, Iran, Japan, Taiwan, etc . Maruti Suzuki India Limited (MSIL, formerly Maruti Udyog Limited), a subsidiary of Suzuki Motor Corporation of Japan, is India’s largest passenger car company, accounting for over 50 per cent of the domestic car market. Since inception, MSIL has produced and sold over 7.5 million vehicles in India and exported over 500,000 units to Europe and other countries. They offer full range of carsfrom entry level Maruti 800 & Alto to stylish hatchback Ritz, A star, Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility Vehicle Grand Vitara. Its turnover for the fiscal 2008-09 stood at Rs. 203,583 Million & Profit After Tax at Rs. 12,187 Million. Mangalore University was created through an amendment to the Karnataka State Universities Act 1976 with its jurisdiction over the colleges in the districts of Dakshina Kannada, Udupi and Kodagu. Today, about 120 scholars are pursuing their doctoral studies on its campus. There are 20 ongoing research projects with a total outlay of more than Rs.10 crores. According to the survey undertaken by National Institute of Science Communication and Information Resources (NISCAIR), New Delhi, Mangalore University ranked 20th in scientific research publications among Indian Universities in the year 2008-09. NSTL Patni Computers SMGB Vedanta For three decades, the innovators of technology have trusted NSTL with testing and certifying their most important products. Their clients, many of whom who have been with them for more than 20 years, rely on their deep technical expertise, their flexibility and scalability and their global reach to ensure that their products are tested to the highest standards and that time to market is optimized. NSTL was acquired by Intertek in September, 2007. NSTL’s technology expertise covers the mobile, PC and digital living markets. NSTL has base in the US and Canada, the United Kingdom and Europe, the Asia-Pacific region and in India. Patni Computer Systems Ltd. is one of the leading global providers of Information Technology services and business solutions. Over 14,500 professionals service clients across diverse industries, from 27 sales offices across the Americas, Europe and Asia-Pacific, and 22 Global Delivery Centers in strategic locations across the world. The company has serviced more than 400 Fortune 1000 companies, for over two decades. It has longstanding partnerships with over 300 companies across the globe. Revenues for the quarter ended 31st March 2009 were at US$ 156.4 million. The Operating Income for the quarter was at US$ 16.0 million. South Malabar Gramin Bank (SMGB) is the largest Regional Rural Bank in India. It was established in 1976 as a Scheduled Commercial Bank as per Regional Rural Banks Act of 1976. Its area of operation is limited to 6 districts in Kerala. It finances farm & non-farm sectors and other employment generation programs through its 216 branches spread over these 6 districts. SMGB is a sponsored bank of Canara Bank. The Primary objective of the Bank is to finance farm & non-farm sectors and other employment generation programs. The bank operates in 8 Districts with, 228 Branches, 9 Area offices. It has a staff strength of 1585. Vedanta is an LSE-listed diversified FTSE 100 metals and mining company, and India’s largest non-ferrous metals and mining company based on revenues. The company has additional assets and operations in Zambia and Australia. It is primarily engaged in copper, zinc, aluminium and iron ore businesses, and is also developing a commercial power generation business. The company has experienced significant growth in recent years through various expansion projects for their copper, zinc and aluminium businesses. Revenue from its businesses increased from $3,701.8 million in fiscal 2006 to $6,578.9 million in fiscal 2009, a compound annual growth rate of 21%.