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THE INDIAN ENTERPRISE

Fifty & Racing Ahead “You can't just sit there and wait for people to give you that golden dream. You've got to get out there and make it happen for yourself.” - Diana Ross, American recording artist, actress, and entertainer Both 1910 and 1959 are significant to India this year. Espe-

1910. Halley’s Comet brushes Earth with its tail. The Union of

cially because both these years, in between them churned out

South Africa is created. African-American boxer Jack Johnson

some of the most mighty corporates, banks and PSUs that the

defeats American boxer James J. Jeffries in a heavyweight box-

country or even the world, in most cases have seen. These are

ing match, sparking race riots across the United States. Henry

companies which are older than 50, but have not yet touched

Ford sells 10,000 cars.

their centenary. These are companies which are celebrating their

1959. The United States recognizes the new Cuban govern-

Golden jubilee year this year. But there is a lot common in all of

ment of Fidel Castro. The Caves of Nerja are discovered in Spain.

them. Patience, commitment, resilience, foresight…all a com-

The Barbie doll debuts. NASA announces its selection of 7 mili-

binational recipe of success. They are few, but they have lived

tary pilots to become the first U.S. astronauts. Ceylon’s prime

every day of their existence to grace greatness.

minister S.W.R.D. Bandaranaike is assassinated. MGM’s

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JUNE - 2009


widescreen, multimillion dollar, Technicolor version of Ben-Hur,

sion through foresight and side by side building an empire of

starring Charlton Heston, is released and becomes the studio’s

robustness and transparency.

greatest hit. Cold War – Antarctic Treaty: 12 countries, including the United States and the Soviet Union, sign a landmark treaty, which sets aside Antarctica as a scientific preserve and bans military activity on that continent. 1959, a year specific to India marked the establishment of Doordarshan, India’s national state-owned broadcaster.

Golden Success These are companies which have followed the secrets of success in their individual businesses. They stretched their goal overcoming failures, problems and difficulties by conscious effort and by application of capabilities, resources and methods.

It also marked Tenzin Gyatso, the 14th Dalai Lama, fleeing Ti-

They have clearly differentiated their success from luck,

bet and travelling to India and Bajaj Auto obtaining license from

chance and doing what comes naturally without effort. And

Government of India to manufacture two- and three-wheelers

then these companies had the most precious of them

in India.

all…people.

These events and more, within its bracket, spurned several

Mathematician James A. Yorke once commented,

events of great importance towards the world’s and even India’s

“The most successful people are those who are good

media-related, political, and industrial development.

at Plan B.” Most companies which crossed

But there was more to happen. There were companies in the waiting to start a revolution of change and bring India to a place where it could individually claim stake on several entrepreneurial acclaims and make its stand sealed on the industrial and corporate bandwagon. India was to change from these years on and there were a number of companies which marked India’s entry into a the new dominion of the third world to a fast growing, next big economic power-house of the world. There were many companies which were floated between 1910 and 1959; many perished, but those who survived have lived it through and succeeded continuously even in these times of economic recession. These are companies which have constantly proved their acu-

the long tenure with great success had people who had a Plan B when the initial plan failed and this factor made all the difference at the most crucial of times. Few comments from Golden Enterprises about their success mantra and turnaround times Mahendra K Shah, Managing Director, V-Trans Group “A burning desire to succeed propelled the founder K. K. Shah, a man with towering personality along with his brothers to venture in the business of

transpor-

tation and started

men in the Corporate as well as PSU circles through their foresight, vision and mission rules concretely in place. Companies like Ashok Leyland, Bajaj Group, Cadbury India, Cipla, DLF group, Hero Group, Hindustan Lever Ltd, ITC, Larsen & Toubro Limited, Mahindra Group, Proctor & Gamble India, T VS Group, V-Trans (India) Ltd.; banks like Andhra Bank, Bank of Maharashtra, Central Bank of India, Dena Bank, ICICI Bank, Indian Overseas Bank, Karur Vysya Bank, Oriental Bank of Commerce, Reserve Bank of India, Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India, ING Vysya Bank, Vijaya Bank; PSUs like Bharat Electronics Limited

V ij a y

(BEL), Hindustan Aeronautics Limited (HAL), Indian Oil Corp,

Tr a n s p o r t

National Mineral Development Corporation, New India Assur-

Company in 1958

ance Co Limited, ONGC, Oriental Insurance Company, Singareni

with just 2 trucks. The

Collieries, Steel Authority of India Limited (SAIL), United India

qualities and values they put

Insurance…all have shown their might in terms of maturity in

forth in the organization like sin-

growth as well as business ethics; professional growth, expan-

cere hard work, sticking to ethical busi-

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ness practices, being enterprising and continued family unity en-

ery and engineering equipment from overseas manufacturers.

sured that the company negotiated any hurdle successfully. Its

Over the years, such technology-based products increasingly

single focus of providing reliable, safe service and willingness to

needed installations and support services. This evolved into

provide solutions to clients helped the company to sustain and

Volkart’s Engineering & Import business, which soon formed

grow to be a preferred Transport Company.”

the bulk of their activities. Post-war and post-Independence

Satish Chander Gupta, Chairman & Managing Director, United Bank of India “As a result of implementation of Prudential Accounting Standards, United Bank of India incurred huge losses in the year 1993 and 1994 and was identified as a weak bank by the Working Group set up at the time of Banking Reforms, weakness being identified in three main areas –Operation, Human Resources, and Management. However, at the end of 2001-02, UBI could turn around under the guidance of RBI and scaled a new height of 522% rise in net profit at Rs. 119.04 crore. UBI’s turn around was the fastest not only in banking sector but also in the entire corporate world.” S Sridhar, Chairman & Managing Director, Central Bank of India “Since its inception as the first Swadeshi bank of the country

realities called for some drastic revisions. India’s manufacturing capabilities had been jumpstarted by wartime conditions. Independent India too was intent on forcing the pace of indigenisation, by restricting imports of engineering equipments (among others). Paradoxically, India’s industrial and economic growth would require more and more such equipment, and the

THERE WERE MANY COMPANIES WHICH WERE FLOATED BETWEEN 1910 AND 1959; MANY PERISHED, BUT THOSE WHO SURVIVED HAVE LIVED IT THROUGH AND SUCCEEDED CONTINUOUSLY EVEN IN THESE TIMES OF ECONOMIC RECESSION.

THESE ARE COMPANIES WHICH

HAVE CONSTANTLY PROVED THEIR ACUMEN IN THE

CORPORATE AS WELL AS PSU CIRCLES THROUGH THEIR FORESIGHT, VISION AND MISSION RULES CONCRETELY IN PLACE.

on 21st December 1911, Central Bank of India has emerged as one of the largest banks in India through resilience, innovation

installation / support services, which Volkart was so well placed

and faith of millions of satisfied customers. Over the years, the

to deliver. Volkart and Tata’s teamed up as Voltas Limited to

pro-active and sagacious management of the Bank have

tackle these challenges. It was the ideal combination: Volkart’s

launched many pioneering initiatives viz., Thrift and Saving ac-

engineering service and trading expertise, allied with Tata’s his-

counts for women & children and Recurring deposit scheme,

toric standing as a major industrializing power.”

buying and selling gold, specialised ladies department, first Indian managed bank to issue Rupee Travellers Cheques, Cash Certificate, Safe Deposit vault, Credit card etc. These initiatives have established the Bank firmly in the market place as an innovative, trust worthy, proactive and steady Institution on which customers – both depositors and borrowers can bank upon.” Vice Admiral Harisimran Singh Malhi, AVSM, VSM, Chairman & Managing Director, Mazagon Dock Limited

Drona Rath, CMD, Mecon Limited “As an independent department of Hindustan Steel Limited, the functions of Central Engineering and Design Bureau (CEDB) were quite flexible and in line with the needs and directions of the HSL board. Late Mohan Kumaramangalam, as Steel Minister, in 1972-73, conceived the formation of SAIL as the holding company for the main iron and steel plants and ancillary industries in the public sector. CEDB took on a separate identity as

“After its takeover by the Government in 1960, Mazagon

Metallurgical and engineering consultants (India) Limited,

Dock grew rapidly to become the premier war-shipbuilding yard

(Mecon) on April 1, 1973 as a subsidiary of the holding com-

in India, producing sophisticated warships for the Navy and off-

pany. HSL remained a separate company like Bokaro Steel, un-

shore structures for the ONGC. It has grown from a single unit,

der the holding company umbrella. The memorandum of asso-

small ship repair yard, into a multi-unit and multi-product com-

ciation made it clear that Mecon was not confining itself to pure

pany, with significant rise in production and sophistication of

consultancy or to iron and steel, the main course on its menu. It

products. The company’s current portfolio of designs spans a

would also be engaged in the design and manufacture of equip-

wide range of products for both domestic and overseas clients.”

ment and systems, and in detailed and project engineering not

Ishaat Hussain, Chairman, Voltas Limited

undertaken by other consultancy firms. In its aims and objec-

“Since 1853, Volkart had been prominent in ‘two-way trade’

tives, the company presented to public view, many new facets

between India and the West. Broadly, raw materials and com-

and new directions in which it hoped to progress. Mecon has

modities were exported while the imports focused on machin-

till date completed over 4500 consultancy and ePc assignments covering wide range of field and services.” ❑

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The Aviator Trivia: Air India is the 16th largest airline in Asia, serving 28 destinations worldwide, and, with its affiliated carriers, serves over 100 cities.

NEWER FLEET … ENHANCED CONNECTIVITY…AIR INDIA IS NOW ON A ROLL. INDIA’S NATIONAL CARRIER, AIR INDIA, WHICH HAS BEEN INDUCTING NEW AIRCRAFT AT AN AVERAGE PACE OF 2-3 AIRCRAFT A MONTH SINCE JULY 2007, WILL CONTINUE TO DO SO IN THE NEXT FISCAL NOTWITHSTANDING THE GLOBAL RECESSION.

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With a fleet of over 150 aircraft, includ-

Five B777-200LRs have so far been in-

ing 48 aircraft inducted in the past 18

ducted with three more joining the fleet

months, Air India has been gradually ex-

between June-August 2009. Convenient

panding its network to cover new desti-

connectivity has been provided to/from

nations in India and abroad. As a result, by March 2010, a total of 78 new aircraft would have joined the fleet, thus drastically bringing down the average age of the fleet to about 18 months. The discerning passenger of today looks for speed and comfort. With the induction of the state-of-the-art B777-200LR aircraft, Air India now offers both speed

Frankfurt - The New Hub After taking the path of consolidation during the past one year, the airline has taken a major initiative towards strengthening its global network, restructuring its

AIR INDIA HOLIDAYS OFFERS OVER 400 PACKAGE OPTIONS COVERING OVER 150 CITIES IN 22 INDIAN STATES AND 12 INTERNATIONAL DESTINATIONS, MAKING IT ONE OF THE

operations to Europe and USA and by making Frankfurt its operational hub for West-bound flights, effective the summer Schedule (March 29, 2009). To begin with, Chicago and Newark will

MOST COMPREHENSIVE HOLIDAY

offer more convenient connections to

PACKAGES ON OFFER IN INDIA.

originating traffic from a larger geographical area in India with Mumbai-Chicago

and comfort through its NonStop services

flights now set to operate from Delhi. Pas-

to New York. Daily NonStop flights from Mumbai and Delhi to New York offer con-

major metros like Chennai, Kolkata,

venient departure and arrival timings,

Hyderabad and Bangalore for passengers

comfortable seats, 250 hours of video and

booked on the NonStop flights. Increas-

150 hours of audio programming, mood

ing occupanc y levels on the NonStop

lighting, and gourmet food. The eight-seat

flights is testimony to the popularity of this

First Class cabin has been designed to of-

premium product.

fer the passenger comfort and luxury with

On the domestic sectors, the 172-seater

exclusivity. Each First Class seat can be

Airbus A321 aircraft connects all major

transformed into a fully horizontal flat bed,

metros, including all flights on the Delhi-

77 inches long and 31 inches wide. A pas-

Mumbai sector. Spacious cabin, comfort-

senger travelling First Class has the facility

able seats and the luxury of in-flight en-

of convenio service i.e. meals at times pre-

tertainment make this a superior product

ferred by a passenger. Similarly, the 35-

that travellers look forward to. The A321

seat Executive Class cabin too is spacious

is gradually replacing the A320 operated

and has comfortable seats. Each seat can

sectors as more and more A321s

be transformed into a 72-inch long flat

andA319s are introduced.

sengers who wish to travel from Delhi to Newark will be transferred to the MumbaiNewark flight at Frankfurt. Likewise, passengers from Mumbai who wish to proceed to Chicago will be transferred to the Delhi-Chicago flight at Frankfurt. The connections at Frankfurt will be immediate. The flight schedules have been so drawn that passengers can depart from India at about 1.00 a.m. from Mumbai/ Delhi arriving in Frankfurt at 6.00 a.m. and departing at around 8.00 a.m. for arrival at Chicago/Newark at 10.30 a.m. – thus providing fastest connectivity. The hub and spoke operations from/to Kochi, Bangalore, Chennai and Hyderabad

bed. The Economy Class seat is er-

will offer direct connectivity to London,

gonomically designed for comfort

Frankfurt, Newark, Chicago-bound flights.

during the long haul flight.

Likewise in the reverse direction.

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Air India will also cater to the large In-

add-ons like sight-seeing trips, entry tick-

Madhya Pradesh, Maharashtra, North-

dian population in Canada with a doubling

ets, boat rides, welcome drink on arrival

East, Orissa, Punjab, Rajasthan, Sikkim,

of capacity on the Amritsar-London-

and use of hotel facilities such as swim-

Tamil Nadu, Tripura, Uttar Pradesh and

Toronto route from three to six flights a

ming pool, health club, etc. depending

Uttarakhand.

week, effective March 29, 2009.

upon the package selected. The duration

The 12 International Flyaways available

of stay normally ranges from 2 nights/3

from India are Bhutan, Cambodia, Dubai,

recording will be the launching of NonStop

days to 7 nights/8 days.

London, Mainland China, Malaysia,

Delhi-San Francisco flights later this year

Domestic packages include destinations like :

Maldives, Myanmar, Nepal, Singapore, Sri

Another first that Air India will soon be

after inducting three new Boeing 777LR aircraft by August 2009. This will be the longest flight to be operated from India.

Attractive Holiday Packages The last five years have seen urban Indians travelling like never before. An annual holiday has become the done thing for many families. Fuelling this trend is Air India, with its

 Beach holidays available in Goa, Kerala,

Chennai, Andaman Islands and Puri.  Hill

destinations cover Leh, Kashmir,

Himachal

nation options like Kuala Lumpur and

many more.

Bangkok, Kuala Lumpur and Singapore,

destinations such as Agra,

Rajasthan, Khajuraho, Mysore, Madurai, etc. Golden Temple, Varanasi, Bodhgaya,

abroad. Be it the beaches, hill resorts,

Puri, Tirupati and others.

Air India Holidays offer over 400 package options covering over 150 cities in 22 Indian States and 12 International destinations, making it one of the most comprehensive holiday packages on offer in In-

 National

Singapore and Kuala Lumpur, Singapore with Kuala Lumpur and Bangkok.

Star Alliance

day packages to destinations in India and

them all.

International packages are available as single destinations as well as multi desti-

Pilgrim destinations such as Vaishno Devi,

of pilgrimage, Air India Holidays cover

travel under the “Duniya Ghumo” option.

Darjeeling, Sikkim, Bhutan, Ooty and

offering of a wide choice of attractive holi-

national parks, historical places or places

tions for the domestic cum international

Uttaranchal,

 Cultural

Pradesh,

Lanka and Thailand, besides exciting op-

Parks and Wild Life habitats

such as Kaziranga, Dooars, Sunderbans and Periyar. In all, 26 Domestic Flyaways are available: Andamans, Andhra Pradesh, Bengal, Delhi, Gateway Combo, Goa, Golden North, Golden Triangle, Gujarat, Himachal,

As a dominant player in the Indian subcontinent, with largest fleet and network, Air India is working towards joining Star Alliance, the consortium of 21 carriers from across the globe. The Star Alliance, which offers 16,500 daily departures to 912 destinations in 159 countries, will give Air India an extended global reach.❑

Jammu, Karnataka, Kashmir, Kerala, Leh,

dia. The airline has drawn up package options to suit every budget, in collaboration with leading hotels and tour operators, ranging from 3-star to 5-star deluxe accommodation. In many cases, the package cost is within the normal published full airfare, thus making it a very attractive deal especially for the budget traveller. The holiday packages are available on sale at Air India booking offices, through approved travel agents and a dedicated website www.airindiaholidays.in A package generally includes return Economy Class airfare, to and fro airport transfers, ground transfers by road or rail as per plan, accommodation, applicable hotel taxes, meals as per plan and other

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ARVIND JADHAV, CMD, AIR INDIA JUNE - 2009


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The Supporter “The art is not in making money, but in keeping it” - Proverb

AS A PAN INDIA BANK, BANK OF MAHARASHTRA IS CATERING TO THE FINANCIAL NEEDS OF ALL SECTORS OF THE ECONOMY – AGRICULTURE, TRADE, INFRASTRUCTURE, EDUCATION, TRANSPORT, INDUSTRY AND SERVICES INCLUDING ITES, HOSPITALITY, ENTERTAINMENT AND FINANCIAL SERVICES

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Bank of Maharashtra, a Government of

pared to the corresponding quarter in the

a safe bank, and in this era of global tur-

India enterprise, had its origin in Pune in

previous year.Their Net Profit recorded a

moil where customers are losing faith in

1935; since its inception, the bank has

rise of 14.24%, increasing to Rs.375.16

banking institutions, it gives them a privi-

been giving support to the common man

crore for the year 2009 from Rs.328.39

lege to have customers which are not

by assisting small business enterprises,

crore for the year ended March 2008; Op-

moving from their bank to other banks.

traders and self-employed. Moreover, the

erating Profit for the year increased by

The Bank believes in the Slogan ‘One

Bank has 60 percent of its branches in the

17.97 % up from Rs.672.63 crore for the

Family One Bank’. “We want to be a bank

rural and semi-urban areas to provide aid

FY 2007-08 to Rs.793.52 crore.

for every banking need,” said Allen C A

Services

Pereira, CMD, Bank of Maharashtra. To

to the people residing in these areas. With changing times, and in an era of fierce

provide their customers with techno-

competition, the bank has not shed its tra-

The Bank has implemented “Maha Con-

savvy products, they have implemented

ditional touch though it has implemented

nect” - Internet Banking, Phone Banking

Core Banking Solution, Phone Banking,

technology to bring into its fold techno-

and SMS Banking with online and offline

SMS Banking and Internet Banking which

savvy and high profile customers also. The

request processing including funds trans-

have been highly applauded by the cus-

Bank has over 12.5 million customers and

fer for its customers. E-payment facility for

tomers.

adding on an average 1.5 million new cus-

tax payments has also been introduced

Schemes is for children and youth with the

tomers every year.

through Internet banking. Bank of

value additions including accident Insur-

Maharashtra has always been viewed as

ance. ❑

Branches

Maha-Saras wati

Deposit

BoM has 1427 branches in 22 states and 2 union territories. In its constant endeavour to provide greater customer convenience and techno-savvy services, Bank of Maharashtra has rolled out 798 branches on CBS (Core Banking Solution) & is providing anywhere branch banking through these branches. The Bank has 345 ATMs and has enabled Bio-metric features in 11 ATMs, especially for illiterate customers. Funds transfer from the account maintained at a CBS branch to third party account at another CBS branch is free. Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) schemes are implemented at 686 branches. The Bank is providing free remittance services to the customers under RTGS & NEFT.

Financials Total Income for the Bank increased by 25.41% to Rs.4791.58 crore as compared to Rs.3820.76 crore during the previous year. Gross Income was higher by 2.27% for the quarter ended March 2009 as com-

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BANK OF MAHARASHTRA, A GOVERNMENT OF INDIA ENTERPRISE, BEGINS OPERATION

The Bank is fully aware of its Corpo-

BoM also established Mahabank Self

rate Social Responsibility and has al-

Employment Training Institute (MSETI)

ways been a contributor towards agri-

at Pune, Aurangabad, Nagpur, Nasik

culture and rural development & pro-

and Amravati for providing training to

moting entrepreneurship skills and self

rural youth and women. Gramin Mahila

dependency.

Va Balak Vikas Mandal (GMVBVM), an

1935 THE BANK GETS NATIONALISED 1969 ESTABLISHED MAHABANK SELF

The bank established Rural Develop-

NGO formed by Bank of Maharashtra

EMPLOYMENT TRAINING INSTITUTE

ment Centres at Hadapsar and

is actively involved in the formation,

(MSETI) AT HADAPSAR, PUNE UNDER

Bhigwan. These centres are undertak-

nurturing, training and linkage of Self

THE AEGIS OF

ing various developmental activities for

Help Groups (SHG) to Bank Credit.

MARDEF IN COORDINA-

TION WITH

NABARD AND

the benefit of the farmer viz. Lab to

As part of its social commitment,

Land project, Development of Saline

the bank has adopted a remote village

Soil and providing advice on use of vari-

Ravanwadi in Nagpur district in one of

ous inputs.

the most backward tribal areas of

TOTAL BUSINESS MORE THAN RS.

Maharashtra.

71400 CRORE OF WHICH TOTAL

“60 percent of our branches are in rural and semi-urban areas enhancing

MAHARASHTRA STATE GOVERNMENT DECEMBER 2001

DEPOSITS MORE THAN

our lending to micro, small and medium

CRORE AND

enterprises because it creates employ-

THAN

ment in II-tier cities and then diversifies our risk in lending. 49,000 SHGs are

RS. 41,700

GROSS ADVANCES MORE RS. 29700 CRORE

31ST MARCH 2008

promoted by the bank currently and we

BOM HAS 1427 BRANCHES IN 22

intend to carry this to other villages. This year, 2009-10, during our Platinum Ju-

STATES AND

bilee we will be adopting 75 villages to-

2 UNION TERRITORIES. 2009

wards total development,” said Pereira.

BANK OF MAHARASHTRA HAS ROLLED

Bank has established a trust viz.

798 BRANCHES ON CBS (CORE

Mahabank Agricultural Research and

OUT

Rural

BANKING SOLUTION) & IS PROVIDING

Development

Foundation

(MARDEF) to undertake various

ANYWHERE BRANCH BANKING THROUGH

project s and village improvement programmes and farmers’ training.

14

ALLEN C A PEREIRA, CMD, BANK OF MAHARASHTRA

THESE BRANCHES.

2009

JUNE - 2009


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The Rejuvenator Trivia: The name bank derives from the Italian word banco "desk/ bench", used during the Renaissance by Florentine bankers, who used to make their transactions above a desk covered by a green tablecloth.

ESTABLISHED IN 1911, CENTRAL BANK OF INDIA WAS THE FIRST INDIAN COMMERCIAL BANK WHICH WAS WHOLLY OWNED AND MANAGED BY INDIANS. THE ESTABLISHMENT OF THE BANK WAS THE ULTIMATE REALISATION OF THE DREAM OF SIR SORABJI POCHKHANAWALA, FOUNDER OF THE BANK. CLAIMED THEN TO BE THE TRULY ‘SWADESHI BANK’, SIR SORABJI PROCLAIMED CENTRAL BANK OF INDIA AS THE ‘PROPERTY OF THE NATION AND THE COUNTRY’S ASSET’.

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JUNE - 2009


“The Central Bank of India since its very inception had been a pioneer in offering

“During the current fiscal we shall be adding about 150 branches,” he added.

a variety of innovative services to the cus-

In view of its large network of branches

tomers, which proved turning points.

as also number of savings and other inno-

However, the nationalization of the Bank

vative services offered, the total customer

in July 1969 was one of the key events in

base of the Bank at over 25 million account

the history of Central Bank of India. It was

holders is one of the largest in the bank-

during this period that the Bank embarked

ing industry.

on an expansion drive in a big way from class banking to mass banking and started on its stellar role in the economic development of the country. It opened several new branches, focused on rural sector and came up with several ground breaking rural initiatives as part of rural banking scheme. Apart from this, the Bank also started lending activities on a major scale even to small entrepreneurs, some of

Customers’ confidence in Central Bank of India’s wide ranging services can very well be judged from the list of major corporate clients such as ICICI, IDBI, UTI, LIC, HDFC and also almost all major corporate houses in the country.

Founder

whom have metamorphosed into major

The vision of the bank’s founder Sir

corporates today,” says S Sridhar, Chair-

Sorabji Pochkhanawalla has guided the

man & Managing Director, Central Bank

destiny of the Bank since inception. Until

of India.

his demise in 1937, his hands-on manage-

During the past 98 years of history the

ment helped the Bank to evolve into a

Bank has weathered many storms and

leader of the industry from a fledgling or-

faced many challenges.

ganization.

“THE CENTRAL BANK OF INDIA SINCE ITS VERY INCEPTION HAD BEEN A PIONEER IN OFFERING A VARIETY OF INNOVATIVE SERVICES TO THE CUSTOMERS, WHICH PROVED TURNING POINTS.

HOWEVER, THE NATIONALIZATION OF THE BANK IN JULY 1969 WAS ONE OF THE KEY EVENTS IN THE HISTORY OF CENTRAL BANK OF INDIA. IT WAS DURING THIS PERIOD THAT THE BANK EMBARKED ON AN EXPANSION DRIVE IN A BIG WAY FROM CLASS BANKING TO MASS

The Bank could successfully transform

“The qualities of trust, transparency,

every threat into business opportunity and

customer-friendliness that he emphasized

BANKING AND STARTED ON ITS

excelled over its peers in the Banking in-

have continued to be the guiding force for

STELLAR ROLE IN THE ECONOMIC

dustry.

the Bank. The Bank has been fortunate to

DEVELOPMENT OF THE COUNTRY. IT

have outstanding men and women at the

OPENED SEVERAL NEW BRANCHES,

helm of affairs,” says Sridhar.

FOCUSED ON RURAL SECTOR AND

Main Thrust Areas

BREAKING RURAL INITIATIVES AS PART

Today, further in line with the guidelines from Reserve Bank of India as also the Government of India, Central Bank has been playing an increasingly active role in promoting the key thrust areas of agriculture, small scale industries as also medium and large industries.

The bank has launched a new corporate

OF RURAL BANKING SCHEME,” SAID

vision “Operation Nav Chetana”- with the

S SRIDHAR, CHAIRMAN & MANAGING DIRECTOR, CENTRAL BANK OF INDIA

objective of rejuvenation of the entire fabric of the Bank – from human resources to

The Bank also introduced a number of

customer service, to new products and

Self Employment Schemes to promote

technology. This will enable achievement

employment among the educated youth.

of well-defined goals.

Among the Public Sector Banks, Cen-

“Our thrust during the current fiscal shall

tral Bank of India has a large network in

be on improving profitability, deployment

27 out of 28 States as also in 4 out of 7

of credit with thrust on retail credit and

Union Territories in India.

SME, upgradation of technology and dest

According to Sridhar, as of 31 March 2009, the Bank had 3518 branches, 34 sat-

CAME UP WITH SEVERAL GROUND

velopment of human resources,” says Sridhar.

ellite offices and 243 extension counters.

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JUNE - 2009


Recent Initiatives 

Central Bank of India launched Visa

mance in lending to Micro and Small Enterprises during the year 2007-08.

sive entrepreneurship training to the

tional 1000 branches. A major initiative in

rural youth, to enable them to take

payment and remittances area is also

to vocational activities. The Bank has

planned,” says Sridhar.

launched at Vadkun in Thane District.

Financials

On December 29, 2008, Kotak

Customer Base The bank has over 25 million satisfied customers. These comprise of individuals across the length and breadth of the

Mahindra Asset Management Com-

During the quarter ended March 2009,

pany, one of India’s leading mutual

Central Bank of India’s total income regis-

fund houses, entered into a distribu-

tered grow th of 21.22 per cent at Rs

tion tie-up with Central Bank of India.

3150.33 crore over March 2008. During

Under the agreement Central Bank of

the last quarter of 2009, the interest on

India will offer the entire bouquet of

advances recorded growth of 24.78 per

Kotak Mutual Fund products from the

cent and the total interest income re-

Central Bank of India is a pan-India Bank

Bank’s branches.

corded growth of 19.71 per cent. During

in true sense, having presence in all the

the quarter, Non-interest income re-

states of India. The Bank has 3518

corded growth of 29.82% over the cor-

branches, of which 2260 branches are in

responding period of the previous quar-

rural and semi-urban areas. “Our focus is

The Bank has been in the forefront in business growth also. The total business of the Bank sharply increased by 124%

touching

the

level

of

Rs.1,97,162/- as of 30th September, 2008 from Rs. 87,857 crore as of 30th June, 2005. The Core Banking System (CBS) of the Bank covers 77% of its business. And, all CBS Branches have been enabled for both RTGS and NEFT services. 

ing under Core Banking Platform addi-

seling Centre - Centsahyog was

ing based on its outstanding perfor-



accounts during the year. We will be bring-

Hoshangabad. This will provide inten-

A Financial Literacy and Credit Coun-



Awards for Excellence in MSE Lend-



Training Institute (Rudseti) at

Muzaffarpur.

Central Bank of India was conferred with the 1st Award under National



Lakh Savings accounts and 75,000 Current

already set Rudsetis at Kota and

Platinum and Visa Gold cards 

velopment and Self Employment

ter.

country, large corporates, medium sized enterprises, small businesses, rural population engaged in agriculture and nonfarm activities.

Presence

on the small man,” says

Targets

Sridhar. The bank has sought permission from

“During the current fiscal we have targeted a business growth of over 18 per cent at Rs. 2,57,550 crore. This shall come about through 18 per cent growth in advances at Rs. 1,02,350 crore and over 18 per cent growth in deposits

IT Enabled Financial Inclusion at

at Rs. 1,55,200 crore. As a

Hoshangabad which will bring the fi-

business strategy to im-

nancial services to the door steps of

prove our profitability, we

those who are living in remotest parts

are focusing on improv-

of the country. The Bank will deliver

ing our share of CASA

deposit, loan and other financial ser-

to 36.9 %, for which

vices by engaging Business Corre-

we have planned

spondent, who will use hand-held

to add 20

the RBI to open certain representative offices abroad

in

Dubai,

Singapore, Hong Kong, Doha and London. ❑

mobile devices and issue Smart Cards to the customers. 

In order to develop rural entrepreneurship, the Bank launched a Rural De-

18

S SRIDHAR, CHAIRMAN & MANAGING DIRECTOR, CENTRAL BANK OF INDIA

JUNE - 2009


INTRODUCED HOME SAVINGS SAFE DEPOSIT SCHEME 1921 SAFE DEPOSIT LOCKER FACILITY AND RUPEE TRAVELLERS’ CHEQUES. The bank has a code of conduct in

tomers and public at large and shall

place according to Clause 49 of the

endeavour to do all it can to sustain and

Listing Agreement entered into with

improve upon the same in its discharge

the Stock Exchanges.

of obligations. The Bank shall continue

TRUSTEE DEPARTMENT.

to initiate policies, which are customer

1929

Bank’s Belief System The Code of Conduct attempts to set forth the guiding principles on

centric and which promote financial prudence.

which the Bank shall operate and con-

Philosophy of the Code

duct its daily business with its multi-

The Code envisages and expects -

tudinous stakeholders, government



1926 SETTING UP OF THE EXECUTOR AND

DEPOSIT INSURANCE BENEFIT SCHEME. 1932 MERCHANT BANKING CELL ESTABLISHED. 1976

adherence to the highest stan-

and regulatory agencies, media, and

dards of honest and ethical conduct,

anyone else with whom it is con-

CENTRALCARD INTRODUCED.

including proper and ethical proce-

nected. It recognises that the Bank is

1980

dures in dealing with actual or appar-

a trustee and custodian of public

ent conflicts of interest between per-

‘PLATINUM JUBILEE MONEY BACK

money and in order to fulfill its fidu-

sonal and professional relationships.

DEPOSIT SCHEME’ WAS LAUNCHED.

ciary obligations and responsibilities, it has to maintain and continue to enjoy the trust and confidence of public at large. The Bank acknowledges the need to uphold the integrity of every transaction it enters into and believes that honesty and integrity in its internal conduct would be judged by its external behaviour. The Bank shall be committed in all its actions to the interest of the countries in which it op-



odic reports required to be filed by the Bank with government and regulatory

THE HOUSING SUBSIDIARY CENT BANK HOME FINANCE LTD. WAS STARTED. 1989

agencies. 

compliance with applicable laws,

rules and regulations. 

QUICK CHEQUE COLLECTION SERVICE (QCC) & EXPRESS SERVICE SET UP

to address misuse or misapplica-

1994

tion of the Bank’s assets and resources. 

the highest level of confidential-

erates. The Bank is conscious of the

ity and fair dealing within and outside

reputation it carries amongst its cus-

the Bank.

19

1986

full, fair, accurate, sensible, timely

and meaningful disclosures in the peri-

3518 BRANCHES, 34 SATELLITE OFFICES AND

243 EXTENSION COUNTERS. 31ST MARCH 2009

JUNE - 2009


The Cultivator “One is wise to cultivate the tree that bears fruit in our soul” Henry David Thoreau

THE FERTILISERS AND CHEMICALS TRAVANCORE LIMITED (FACT), INDIA’S FIRST 1943. IN 1947, FACT UDYOGAMANDAL STARTED PRODUCTION OF AMMONIUM SULPHATE WITH AN INSTALLED CAPACITY OF 10,000 MT NITROGEN. LARGE SCALE FERTILISER UNIT WAS SET UP IN

20

JUNE - 2009


FACT became a Kerala State Public Sec-

and installation of large penstocks of hydel

Entry into petrochemical sector

tor Enterprise on 15th August 1960 and on

projects. The Cochin Division of FACT, the

As diversification from the traditional

21st November 1962, the Government of

2nd production Unit was set up at

field of fertilisers and chemicals, FACT put

India became the major shareholder.

Ambalamedu and the 1st phase was com-

up a caprolactam plant with an installed

The 2nd stage of expansion of FACT was

missioned in 1973. The 2nd phase of FACT

capacity of 50000 tonnes per year. FACT

completed in 1962. The 3rd stage of ex-

Cochin Division was commissioned in

is also getting 2,25,000 tonnes of ammo-

pansion of FACT was completed in 1965

1976.

nium sulphate as co-product from this

with setting up of a new Ammonium Sulphate Plant.

“As a diversification from the traditional field of Fertilisers and Chemicals, 50000

plant.

Annual Turnover

Design

TPA Caprolactam Plant at Udyogamandal

Organisation (FEDO) was set up on 24th

was commissioned in 1990. FACT set up

July 1965 to meet the emerging need for

900

at

over of Rs. 2100 crore during 2008-09 fi-

indigenous capabilities in vital areas of

Udyogamandal at a cost of 638 Crores.

nancial year with an estimated profit of Rs.

Engineering, Design and Consultancy for

The Ammonia plant was commissioned in

43 crore.

establishing large and modern fertiliser

1998,” said Dr George Sleeba, Chairman

Exports and Imports

plants.

& Managing Director, FACT.

FACT

Engineering

and

TPD

Ammonia

Plant

FEDO has since then diversified into

The company’s main business is manu-

Chemicals, Petrochemicals, Hydrometal-

facture and marketing of Fertilisers and

lurgy, Pharmaceutical and other areas.

Caprolactam and rendering Engineering

FEDO offers services from project identi-

Consultancy services and doing fabrica-

fication and evaluation stage to plant de-

tion of equipment.

sign, procurement, project management,

Managing Demand

site super vision and commissioning of new plants as well as revamping and

tonnes of fertilisers during 2008-09 finan-

modernisation of old plants. FACT Engineering Works (FEW) was established on 13th April 1966 as a unit to fabricate and install equipment for fertiliser plants. ties in the fabrica- tion of pressure vesers.

cial year, as against 521691 tonnes of the

and FEW

heat exchanghas also un-

d e r t a ke n

laying

of

c r o s s

country piping

“Our major business areas are production and sale of fertilisers and caprolactam, engineering consultancy ser vices and engineering fabrication. Our major export product is caprolactam. We are mainly depending on import for our requirements of sulphur and rock phosphate. FACT also imports urea, Potash etc. for trading in Indian markets,” said Dr Sleeba. ❑

previous year. With a combined import of about one lakh tonnes of urea, Potash, etc FACT sold out about 8.30 lakh tonnes of fertilisers during the last fiscal, which is the

Over the years FEW developed capabilisels

“At FACT, we could produce 723761

FACT registered an all time record turn-

highest sales performance during the recent past. Production has been maximised in our plants and all out efforts are made to make fertilisers available to the farmers at the required time,” said Dr Sleeba.

and fabrication

“AT FACT, WE COULD PRODUCE 723761 TONNES OF FERTILISERS DURING 2008-09 FINANCIAL YEAR, AS AGAINST 521691 TONNES OF THE PREVIOUS YEAR. WITH A COMBINED IMPORT OF ABOUT ONE LAKH TONNES OF UREA,

POTASH, ETC FACT SOLD OUT ABOUT 8.30 LAKH TONNES OF FERTILISERS DURING THE LAST FISCAL, WHICH IS THE HIGHEST SALES PERFORMANCE DURING THE RECENT PAST. PRODUCTION HAS BEEN MAXIMISED IN OUR PLANTS AND ALL OUT EFFORTS ARE MADE TO MAKE FERTILISERS AVAILABLE TO THE FARMERS AT THE REQUIRED TIME,” SAID

DR SLEEBA.

DR GEORGE SLEEBA, CHAIRMAN & MANAGING DIRECTOR, FACT

21

JUNE - 2009


The Shipwrights Did you Know?: Goa Shipyard Limited was originally established by Portuguese in 1957, as a small barge repair facility, under the name “Estalerios Navais De Goa”.

BEGINNING AS A SMALL BARGE BUILDING YARD, GSL HAS GARNERED REPUTATION AS ONE OF THE MOST SOPHISTICATED SHIP BUILDERS IN THE COUNTRY. FOR OVER FOUR DECADES, GSL HAS DESIGNED, BUILT AND COMMISSIONED A WIDE RANGE OF SOPHISTICATED VESSELS FOR VARIED APPLICATIONS IN THE DEFENCE AND COMMERCIAL SECTORS WITH SPECIAL EXPERTISE IN BUILDING MODERN PATROL

STEEL AND ALUMINIUM HULL STRUCTURE. TODAY, AFTER COMPLETING ITS 51 YEAR, THIS SHIPYARD REMAINS AS YOUNG AS EVER.

VESSELS OF

ST

22

JUNE - 2009


Following the liberation of Goa,

real benefits. The R & D, Export and Di-

which has become one of the shining ex-

Estalerios Navais De Goa was renamed as

versification activities were stagnant. It

amples of utilization of modern tools for

Goa Shipyard Limited (GSL), with its own

is at that time that a decision was taken

furthering the business performance of

Board of Directors in 1967. Government

for Yard modernization and needed req-

the company,” said Admiral Handa

of India accorded status of schedule “B”

uisite push to reach its execution stage for

While utilization of ERP system was

to the company in Jan 1997. The Yard was

optimum utilization of infrastructure

established, modifications to the software

conferred the status of Mini Ratna, Cat-

which was created in the past with only

were continued concurrently to enhance

egory-I in March 2007.

incremental additions to the then existing

the scope and fine tune the system to suit

infrastructure on ad hoc basis as and

GSL’s procedures and working system. A

when the orders came along. The vital fi-

concerted effort was also made to en-

nancial and Physical performance indica-

courage people to use production multi-

tors of the company which were declin-

pliers and modern tools such as High pro-

ing in the past started showing upward

ductive welding machines, power tools

trend from 2005-06.

and material handling equipments and

Initial Challenges In the beginning, GSL undertook ship repairs, built small barges and fishing trawlers. Over the years, GSL upgraded in value chain, and has today built a reputation as one of the most sophisticated ship builders in the country. It has established

other jigs and fixtures to reduce the time

The Upswing

and efforts while keeping energy consumption and maintenance cost low thus improving the overall quality and productivity. “The company re-looked at its pro-

itself as a premier shipyard on India’s west

“In the history of GSL the past four years

coast. The company has graduated from

will be remembered for significant all

a mere barge building unit to a progres-

round improvement in the performance

sive warship building yard.

of the company and the various audited

“GSL is one of the few shipyards in the

facts & figures for this period are the tes-

country who have in-house design capa-

timony. Beginning from Year 2005- 06 the

bility, in the process efficiently meeting

company started full utilization of capabil-

the customers’ requirements for design,

ity of state of the art ERP system. The pro-

construction, repair and modernization of

cess was re-engineered and mapped to

vessels. Today the yard is known for deliv-

achieve operational efficien-

ering quality ships ahead of the schedule

cies. The company started

to the satisfaction of the customers,” says

monitoring

Rear Admiral A K Handa, CMD, Goa Ship-

projects with the help of facili-

yard Limited.

ties provided by ERP systems

The Shipyard had a very lean order book during the year 2003-2005. In Year 200405, the Value of Production (VOP) which is an indicator of annual turnover dipped to a low of only Rs.141.83 crore. The corresponding, Profit after Tax (PAT) was Rs.9.92. crore. The yard’s capacity utilisation was merely 30.31% which was a result of lack of orders at that time. The Repair and General engineering business was also coming down. The company had just introduced ERP but usage was not yet fully established to derive the

23

the

cesses and procedures to concentrate on Company’s core activities. Non-core areas like material handling, chipping, grinding were outsourced which resulted in to better utilization of core competence in other critical areas. Apart from this, quality vendor and subcontractor base was expanded in systematic way thus creating adequate capacity to meet the increased

ongoing

integrated with Project Planning & Monitoring tool Prima Vera and specialized shipbuilding computer aided Design and Manufacturing (CAD CAM) tool Tribon. To cut the time and hasten up the communication and decision making process, real time data availability at desk top together with tailor made paper less office system was fully implemented. Ever y one from top to the bottom was encouraged to use the system

A K HANDA, CMD, GOA SHIPYARD LIMITED

JUNE - 2009


work load in specialized areas of shipbuild-

fitting stage. Design of a Training Vessel is

ing such as hull fabrication, piping, elec-

on the boards,” said Admiral Handa

trical work, air conditioning, insulation ,

While making consistent progress in

interior furnishing etc to name a few,” said

core competency in shipbuilding area, the

Admiral Handa.

yard also utilized its technical and mana-

Financials In the fiscal year 2006-07, the company registered the highest Value of Production (VoP) ever since its inception of 267.07

The company has set up a dedicated

gerial capabilities to successfully diversify

Outsourcing Department which has been

in to new area of business, which included

focusing significantly on enhancing the

the design and construction of train-

service provider base in various disciplines

ing simulators for the Indian Navy

of shipbuilding activities. MOU is signed

and ONGC, setting up of Shore

Profit soared by 282.85 percent

with firms for various activities pertaining

Based Test Facility for Light

while, the Net Profit increased

to shipbuilding and GRP boat building. In-

Combat Aircraft (N) for Aero-

by 143.36 percent over the pre-

novative incentive schemes have been in-

nautical Development Agency

troduced which encourage the work force

Bangalore, and recent venture in to

to aim for early delivery, to contribute to-

Construction

wards meeting the MOU targets etc.

of Glass Rein-

GSL. The VoP

forced Plastic

per formance

The company completed the order for 5 FPVs, each one of them were delivered 5-6 months ahead of the contractual delivery schedule of 24 months, thereby re-

crores, which was up by 6.92 percent over the previous year. During the year, the Operating

vious year. Thereafter it has been a year of recognition & rewards for

(GRP) Boats for Ministr y of Home

during the year 2007-

Affairs(MHA).

08 exceeded even that of the previous year by

GSL is also in to the business of sup-

ducing the build period by about 25% As

plying Stern Gear Equipment and

compared to the earlier FPVs that were

spares to the navy and other Indian

delivered. Similar achievements are also

shipyards in collaboration with an

seen in case of 105m Advanced Offshore

international firm of repute.

Patrol Vessel (AOPV) built for Indian Coast

Recently, in the face of

Guard within 51 months as compared to

stiff competition, GSL

56 –66 months earlier in the past. Build

has won a presti-

period of 105M AOPV reduced further to

gious order for

42 months for the vessel delivered in 2009.

the supply of

The design and build periods compare

Stern

18.8 percent where as Net Profit increased by 72 percent. The value of production during this year was 317.21 crores. The performance during year 2008-09, surpasses the earlier figures. Value of production

is

Rs

515.06.crores,

favourably well with international standards in the class of ships designed and constructed by GSL. “GSL is one of the few shipyards which

profit is Rs.47.38

Equipment for the

crores and Net profit Rs 84.84

first indigenous Air Defence

have capacity and capability to carry out

Ship, being built for the Indian Navy at

basic design of ships. GSL gave impetus to

Cochin Shipyard Ltd.

Research and Development (R&D) activ-

“Till date, GSL has to its credit the deliv-

ity by successfully inducting 35 knots Fast

ery of 185 steel vessels which include Off-

Patrol Vessels and 105 m Advanced Off-

shore Patrol Vessels, Fast Patrol Vessels,

shore Supply Vessel (AOPVs) in the service

Advanced Offshore Patrol Vessels, Missile

of Indian Coast Guard.

Crafts, Sail Training Ships, Hydrographic

The 90 meters OPVs for Indian Coast

Survey Vessels, Extra Fast Attack Crafts,

Guard and 105 meters NOPVs for Indian

Landing Craft Utility (LCUs), Torpedo Re-

Nav y under construction are based on

covery Vessels, Oiler, Fishing Vessels, Off-

GSL in–house design realized after an in-

shore Platform Support cum Standby Ves-

tensive R&D activity.1st of the series of

sels (OPSSVs), Passenger Vessels, Tugs and

both these vessels are in post launch out

Simulators etc, to name a few,” said Admiral Handa.

24

O p e r at in g

Gear

crores. “With such a performance the shipyard had continued being accorded “Excellent” rating from the Government of India since the fiscal year 2006-07. Year 2007-08 also was a great year for GSL as it bagged export order of 3 in no. Harbour tugs from Royal Omanese Navy, Sultanate of Oman. On being adjudged as the “Best Performing Shipyard” for the year 2005-06, GSL bagged the Hon’ble Raksha Mantri’s Excellence Award, and was also conferred with the prestigious Mini Ratna, Category - I status, by the Government of JUNE - 2009


India, in March 2007(a special per for-

Company is looking forward to an exceed-

mance status issued by the Government

ingly bright future.

of India for enhanced autonomous funcGSL won the “Best Performing Ship-

Future Plans

yard” for 2006-07 for the second con-

What started as a modest Barge repairs

secutive year .Moreover it also bagged

facility in the year 1957, today, GSL has

the Hon’ble RM’s award for “Design Ef-

progressed many steps upwards, to posi-

fort” 2006-07 in Aug 08 for design and

tion itself as a leading shipbuilder on the

construction of Offshore Patrol Vessels

west coast of India, capable of designing

(NOPVs). It is expected that the Company

and building high technology and sophis-

will again be adjudged as the Best Per-

ticated ships indigenously to meet the cru-

forming Shipyard for 2007-08, evaluation

cial defence needs of the country. With

for which is in progress by a special con-

the planned modernization programme in

stituted committed for the purpose.

hand, the yard’s capabilities will get fur-

Technology

ther boost.

tioning).

The Company lays great stress on communication between the management and its employees to build up the trust and transparency. Electronic screens have been installed at Admin building and others through which important messages, policy decisions, occurrence of events, promulgation of awards and incentives, obituaries/condolence messages etc. are made as a regular feature.

The modernization at an approximate cost of Rs,790 crores will be undertaken in four phases and will boost the product line of the shipyard from steel hull construction to next technology GRP ship construction. The Phase I & II is in execu-

ESTALERIOS NAVAIS DE GOA WAS GOA SHIPYARD LIMITED

RENAMED AS

WITH ITS OWN

BOARD OF DIRECTORS 1967

GOVERNMENT OF INDIA ACCORDED STATUS OF SCHEDULE

“B” TO THE COMPANY JAN 1997

THE VALUE OF PRODUCTION (VOP)

tion mode with orders worth approx. Rs.

WHICH IS AN INDICATOR OF ANNUAL

315 crores already been placed for which

TURNOVER DIPPED TO A LOW OF ONLY

no funds have been sought from Govt of

RS.141.83 CRORE.

India. The expenditure is being met from the reserves & surpluses accumulated by

2004-05

the Company in recent years. Constantly

THE COMPANY REGISTERED THE HIGHEST

Electronic kiosks have also been in-

building and consolidating its solid base of

stalled at Time office and Canteen, the

VALUE OF PRODUCTION (VOP) EVER

half a century’s experience and reputation

workers trained to operate them so that

for excellence, the company today, confi-

they can access the records pertaining to

dently looks ahead to successfully meet-

individuals and do routine work such as

ing the challenges of the millennium both

leave application etc through these.

in defence and commercial shipbuilding

This system has obviated the need for the workers to rush to various offices to sort out issues pertaining to their day to

SINCE ITS INCEPTION OF WHICH WAS UP BY

267.07 CRORES,

6.92 PERCENT OVER

THE PREVIOUS YEAR.

2006-07

arena.

THE VOP PERFORMANCE EXCEEDED EVEN

Future Challenges

THAT OF THE PREVIOUS YEAR BY

18.8

day need, has improved their confidence

The company, in order to meet the fu-

level in the field of technology and the

ture challenges, has embarked upon a

same is getting reflected in terms of higher

planned modernization project in a

inputs on the production floor in addition

phased manner to augment its infrastruc-

2007-08

to providing access to them towards all

ture facilities at GSL, which is at the imple-

VALUE OF PRODUCTION- RS

rules and regulations governing their em-

mentation stage and is expected to in-

ployment in a transparent manner.,

crease the company’s ship construction

With a substantial improved order book position, presently, standing at approxi-

and repair capacity manifold. ❑

PERCENT WHERE AS INCREASED BY

NET PROFIT

72 PERCENT.

515.06.CRORES AND NET PROFIT -RS 84.84 CRORES 2008-09

mately Rs.3674 crore as on 31 Mar’09, the

25

JUNE - 2009


BEST PERFORMING SHIPYARD 200506(AWARD PRESENTED BY HON’BLE RM ON 14 FEB 2007) While all out efforts were made to improve the overall performance of the company the sincere efforts were also made to fulfill the corporate social responsibility. The initiatives taken by the company in this regards were aimed at making GSL an integral part of Goan Society. Enhanced business activity of GSL will result in to enhanced economic development of the state and will create more employment avenues for the local population. Corporate Social Responsibilities discharged included looking after community Health and Hygiene, Needs of Educational Institutions, Orphanage and Old homes, Provision of civic amenities, Medical care etc. The projects undertaken pertain to installation of Aqua guards and water

BEST PERFORMING SHIPYARD 2006-07 promotion of SC/ST employees as

ON

sure that the ecological balance is not

07 NOV 08).

disturbed due to industrialisation,

RM’S AWARD FOR EXCELLENCE IN

through pollution control, wherever re-

DESIGN EFFORT 2006-07 - DESIGN

quired.

OF

NAVAL OFFSHORE PATROL VESSEL

To reinforce Government’s efforts in promoting social justice to the people

ACCORDED MINI RATNA CATEGORY I STATUS IN

at large by formulating corporate policies on employment, welfare, workers’ participation, consistent with the Government’s policies. Promote use of Hindi as a medium of communication.

Employee Relations & Welfare To improve productivity by harmonious industrial relations. Promote welfare activities to raise morale of the employees.

coolers, installation of fans and tube

Promote development of manage-

lights in class rooms, provision of desk

rial and technical skills of the

and benches in schools, equipping the

Company’s employees through devel-

play grounds, providing bore wells,

opment programmes and technical

Laboratory equipments.

training. Provide training to a large

Social Objectives

number of apprentices for absorption

To help build up a strong industrial

in the Company’s own unit and in other

base through development of ancillar-

industries.To improve standards of

ies.

safety with the help of a sound safety

Encourage Scheduled Caste/Tribe

organisation and training personnel at

persons by giving them preference in

all levels in safety so as to reduce acci-

employment in the company and in the

dents and loss of manhours.

26

(AWARD PRESENTED BY HON’BLE RM

specified by the Government. To en-

MAR 2007.

COMPANY UPGRADED TO “EXCELLENT” MOU RATING IN 2006-07 AFTER 11 YEARS.

RATING FOR YEAR 2007-08 IS ALSO

“EXCELLENT”.

100% COMPUTERIZATION ACHIEVED. CONVERTED THE SHIPYARD INTO PAPERLESS OFFICE.

ALL ACTIVITIES OF

THE SHIPYARD SUCH AS

PRODUCTION,

PLANNING, QUALITY ASSURANCE, HUMAN RESOURCES. COMMERCIAL & ADMINISTRATION ETC. ARE ERP-IT BASED

BAAN SYSTEM

PUBLIC-PRIVATE PARTNERSHIP AND PUBLIC-PUBLIC PARTNERSHIP FULLY IN OPERATION.

JUNE - 2009


27

JUNE - 2009


The Supremo “Riches are not from abundance of worldly goods, but from a contented mind.”

HINDUSTAN UNILEVER LIMITED (HUL) IS INDIA’S LARGEST FAST MOVING CONSUMER GOODS COMPANY, TOUCHING THE LIVES OF TWO OUT OF THREE INDIANS WITH OVER 20 DISTINCT CATEGORIES IN HOME & PERSONAL CARE PRODUCTS AND FOODS & BEVERAGES. THEY ENDOW THE COMPANY WITH A SCALE OF COMBINED VOLUMES OF ABOUT 4 MILLION TONNES AND SALES OF NEARLY RS.13718 CRORES.

28

JUNE - 2009


HUL is also one of the country’s largest

1898. Unilever acquired Lipton in 1972, and

the erst while Brooke Bond acquired

exporters; it has been recognised as a

in 1977 Lipton Tea (India) Limited was in-

Kothari General Foods, with significant

Golden Super Star Trading House by the

corporated. Pond’s (India) Limited had

interests in Instant Coffee. In 1993, it ac-

Government of India. The mission that in-

been present in India since 1947. It joined

quired the Kissan business from the UB

spires HUL’s over 15,000 employees, in-

the Unilever fold through an international

Group and the Dollops Icecream business

cluding over 1,300 managers, is to “add

acquisition of Chesebrough Pond’s USA in

from Cadbury India.

vitality to life”. It is a mission HUL shares

1986.

As a measure of backward integration,

with its parent company, Unilever, which

Since the very early years, HUL has vig-

Tea Estates and Doom Dooma, two plan-

holds 52.10% of the equity. The rest of

orously responded to the stimulus of eco-

tation companies of Unilever, were

the shareholding is distributed among

nomic growth. The growth process has

merged with Brooke Bond. Then in July

360,675 individual shareholders and finan-

been accompanied by judicious diversifi-

1993, Brooke Bond India and Lipton India

cial institutions.

cation, always in line with Indian opinions

merged to form Brooke Bond Lipton India

History

and aspirations.

Limited (BBLIL), enabling greater focus and

The liberalisation of the Indian

ensuring synergy in the traditional Bever-

economy, clearly marked an inflexion in

ages business. 1994 witnessed BBLIL

In the summer of 1888, visitors to the

HUL’s and the Group’s growth curve. Re-

launching the Wall’s range of Frozen Des-

Kolkata harbour noticed crates full of Sun-

moval of the regulatory framework al-

serts. By the end of the year, the company

light soap bars, embossed with the words

lowed the company to explore ever y

entered into a strategic alliance with the

“Made in England by Lever Brothers”.

single product and opportunity segment,

Kwality Icecream Group families and in

With it, began an era of marketing

without any constraints on production

1995 the Milkfood 100% Icecream mar-

branded Fast Moving Consumer Goods

capacity. Simultaneously, deregulation

keting and distribution rights too were

(FMCG). Soon after followed Lifebuoy in

permitted alliances, acquisitions and

acquired.

1895 and other famous brands like Pears,

mergers. In one of the most visible and

Finally, BBLIL merged with HUL, with

Lux and Vim. Vanaspati was launched in

talked about events of India’s corporate

effect from January 1, 1996. The internal

1918 and the famous Dalda brand came

history, the erstwhile Tata Oil Mills Com-

restructuring culminated in the merger of

to the market in 1937.

pany (TOMCO) merged with HUL, effec-

Pond’s (India) Limited (PIL) with HUL in

In 1931, Unilever set up its first Indian

tive from April 1, 1993. In 1995, HUL and

1998. The two companies had significant

subsidiary, Hindustan Vanaspati Manufac-

yet another Tata company, Lakme Limited,

overlaps in Personal Products, Speciality

turing Company, followed by Lever Broth-

formed a 50:50 joint venture, Lakme

Chemicals and Exports businesses, be-

ers India Limited (1933) and United Trad-

Unilever Limited, to market Lakme’s mar-

sides a common distribution system since

ers Limited (1935). These three companies

ket-leading cosmetics and other appropri-

1993 for Personal Products. The two also

merged to form HUL in November 1956;

ate products of both the companies. Sub-

had a common management pool and a

HUL offered 10% of its equity to the In-

sequently in 1998, Lakme Limited sold its

technology base.

dian public, being the first among the for-

brands to HUL and divested its 50% stake

eign subsidiaries to do so. Unilever now

in the joint venture to the company.

In January 2000, in a historic step, the government decided to award 74 per cent

holds 52.10% equity in the company. The

HUL formed a 50:50 joint venture with

equity in Modern Foods to HUL, thereby

rest of the shareholding is distributed

the US-based Kimberly Clark Corporation

beginning the divestment of government

among about 360,675 individual share-

in 1994, Kimberly-Clark Lever Ltd, which

equity in public sector undertakings (PSU)

holders and financial institutions.

markets Huggies Diapers and Kotex Sani-

to private sector partners. HUL’s entry into

The erstwhile Brooke Bond’s presence

tary Pads. HUL has also set up a subsidiary

Bread is a strategic ex tension of the

in India dates back to 1900. By 1903, the

in Nepal, Unilever Nepal Limited (UNL), and

company’s wheat business. In 2002, HUL

company had launched Red Label tea in

its factory represents the largest manu-

acquired the government’s remaining

the country. In 1912, Brooke Bond & Co.

facturing investment in the Himalayan

stake in Modern Foods. In 2003, HUL ac-

India Limited was formed. Brooke Bond

kingdom.

quired the Cooked Shrimp and Pasteurised

joined the Unilever fold in 1984 through

The 1990s also witnessed a string of

Crabmeat business of the Amalgam Group

an international acquisition. The erstwhile

crucial mergers, acquisitions and alliances

of Companies, a leader in value added

Lipton’s links with India were forged in

on the Foods and Beverages front. In 1992,

Marine Products exports.

29

JUNE - 2009


Financials

Technology

Quality and consumer safety is the responsibility of every Unilever employee and Unilever demonstrates visible and

The FMCG major reported a 3.7 per

HUL has traditionally been a company,

consistent leadership to meet this policy.

cent rise in net profit at Rs 395 crore for

which incorporates latest technology in all

The drive for quality is a passion reflected

the quarter ended March 31, 2009 com-

its operations. The Hindustan Unilever Re-

in its brand development, manufacturing

pared with Rs 381 crore in the same pe-

search Centre (HURC) was set up in 1958,

and customer service processes and is

riod last year. Net sales rose 6 per cent to

and now has facilities in Mumbai and Ban-

also expected of their business partners.

Rs 3,988 crore during the period from Rs

galore. HURC and the Global Technology

HUL partners with stakeholders to provide

3,763 crore in the quarter ended March

Centres in India have over 200 highly quali-

leadership, promote transparency and

31, 2008.

fied scientists and technologists, many

share best practice.

Chairman Harish Manwani attributed the company’s average performance to the recession. “There are signs of downtrading and consolidation at retail outlets and trade de-stocking as there were frequent price revisions to improve competitiveness,” Manwani said. Total income went up to Rs 4,035.37 crore during the reporting quarter against Rs 3,839.88 crore in the corresponding quarter of the previous fiscal, the company said in a statement. The company recommended a 400 per cent final dividend, or Rs 4 per share of Re 1 each, for the 15 months ended March 31, 2009, from January 1, 2008.

with post-doctoral experience acquired in the US and Europe.

Quality Policy Putting the safety of its products and consumers first HUL has stringent mandator y quality standards in place against which compliance is verified

Building and maintaining excellent systems to ensure the quality and safety of their products HUL has proactively and continuously developing their systems and processes to ensure quality and safety throughout the whole value chain, and they are setting a benchmark for the business. HUL provides appropriate training and resources, and ensures that it

de-

livers its quality objectives and targets.

through regular audits and self assessments. These standards ensure the company designs, manufactures

Brands

and supplies products that are safe, of excellent quality, and conform to the relevant industry and regulatory standards

HUL’s brands - like Lifebuoy, Lux, Surf

in the countries in which it operates.

Excel, Rin, Wheel, Fair & Lovely, Pond’s,

Co mp r e h e n s i v e

Sunsilk, Clinic, Pepsodent, Close-up,

management

Lakme, Brooke Bond, Kissan, Knorr-

procedures are

Annapurna, Kwality Wall’s – are household

in place to miti-

names across the country and span many

gate risks and to

categories - soaps, detergents, personal

protect it s con-

products, tea, coffee, branded staples, ice

sumers and markets.

cream and culinary products. They are manufactured over 37 factories across India. The operations involve over 2,000 suppliers and associates. HUL’s distribution network, comprising about 2,500 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers.

30

Putting consumers and customers at the heart of its business HUL actively engage its consumers and customers, translating their needs and requirements into products and services, thus creating consumer value. Quality is a shared responsibility

JUNE - 2009


UNILEVER SET UP ITS FIRST INDIAN SUBSIDIARY,

HINDUSTAN VANASPATI

MANUFACTURING COMPANY 1931 HUL believes that an organisation’s

lion rural consumers.

LEVER BROTHERS INDIA LIMITED FOLLOWS

worth is also in the service it renders to

HUL is also running a rural health

the community. HUL is focusing on

programme – Lifebuoy Swasthya

health & hygiene education, women

Chetana. The programme endeavours

empowerment, and water manage-

UNITED TRADERS LIMITED FOLLOWS

to induce adoption of hygienic practices

ment. It is also involved in education and

1935

among rural Indians and aims to bring

rehabilitation of special or underprivi-

down the incidence of diarrhoea. It has

ALL THREE MERGE TO FORM HUL

leged children, care for the destitute

already touched 120 million people in

1956

and HIV-positive, and rural develop-

approximately 50, 676 villages across

ment. HUL has also responded in case

India. The vision is to make a billion Indi-

of national calamities / adversities and

ans feel safe and secure.

contributes through various welfare measures, most recent being the village built by HUL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused devastation in South India.

est standards of corporate behaviour towards its consumers, employees, the

sponsibility with the Government and is committed to regulate all its activities.

hood and the standard of living in rural communities. Shakti also includes health and hygiene education through the Shakti Vani Programme, and creating access to relevant information through the iShakti community portal. The program now covers 15 states in India and has over 45,000 women entrepreneurs in its fold, reaching out to 135,000 villages and directly reaching to 150 mil-

31

1984 TATA OIL MILLS COMPANY (TOMCO) MERGE WITH

HUL

1993

The company recognises its joint re-

an ambitious programme, Shakti.

women, thereby improving their liveli-

THROUGH AN INTERNATIONAL ACQUISITION

societies and the world in which we live.

the Public to protect environment and

enterprise opportunities for rural

BROOKE BOND JOINS THE UNILEVER FOLD

HUL is committed to exhibit the high-

In 2001, the company embarked on Through Shakti, HUL is creating micro-

1933

HUL AND LAKME LIMITED, FORM A 50:50 JOINT VENTURE, LAKME

UNILEVER LIMITED

1995

The company is committed to making its products environmentally acceptable, on a scientifically established basis, while fulfilling consumers' requirements for excellent quality, per formance and safety. The aim of the Policy

LAKME LIMITED SELLS BRANDS TO HUL AND DIVEST ITS

50% STAKE IN THE JV 1998

HUL ACQUIRE THE COOKED SHRIMP AND

is to do all that is reasonably practicable

PASTEURISED CRABMEAT BUSINESS OF THE

to prevent or minimise, encompassing

AMALGAM GROUP OF COMPANIES

all available knowledge and informa-

2003

tion, the risk of an adverse environmental impact arising from processing of the product, its use or foreseeable misuse.

HUL REPORTS 3.7% RISE IN NET PROFIT AT RS 395 CRORE FOR THE QUARTER ENDED MARCH 31, 2009

JUNE - 2009


The Dependable Did you know?: Karur Vysya Bank was started in the year 1916 in Karur, then a small textile town with a vast agricultural background, by two illustrious entrepreneurs –M.A. Venkatarama Chettiar and Athi Krishna Chettiar.

THE SETTING UP OF KARUR VYSYA BANK CAN BE DESCRIBED AS AN ACT OF DISCHARGING SOCIAL RESPONSIBILITY OF TWO ILLUSTRIOUS BUSINESSMEN OF

KARUR WHO WANTED TO SUPPORT THE CITIZENS OF THE TOWN IN THEIR AGRICULTURAL AND TRADE ACTIVITIES WHICH WERE IN THE DOLDRUMS IN THE AFTERMATH

WORLD WAR. THOUGH THE INITIAL JOURNEY WAS SLOW YET STEADY FOR SEVERAL YEARS, THE PAST DECADE HAS SEEN SIGNIFICANT PROGRESS IN THE FUNCTIONING OF THE BANK. OF THE

32

JUNE - 2009


Achievements

What started as a venture with a seed

who came into business with the golden

capital of Rs. 1.00 lakh has grown into a

spoon of technology, KVB was ready for

leading financial institution that offers vari-

the challenge and became one of the ear-

ous financial services to millions of its cus-

liest banks to computerize operations.

The bank has received the “Banking

tomers under one roof.

After initially using our own in-house soft-

Technology Excellence Awards - 2008” for

“We have adapted to the changing face

ware, we quickly migrated to the CBS plat-

Best use of IT for Customer Ser vice in

of the banking industry and in fact taken

form. The regulator brought in stringent

Semi-Urban and Rural Areas.

several path breaking initiatives which

financial concepts like NPA, Capital Ad-

It was rated as the Most Efficient Small

were ahead of the times. Our early com-

equacy Ratio, Basel I and II, etc. and each

Bank by Business Today – KPMG and as the

puterization programme (in the early

time KVB had the answers ready. At a net

No. 1 old private sector bank by Financial

1990s), migration to the Core banking So-

NPA level of about 0.25%, KVB has one

Express – Ernst & Young for two years in

lutions platform (2004), implementation

of the lowest such ratios in the industry.

succession (2006 & 2007).

of employee friendly initiatives like release

Our CAR of over 13% is well above the

The bank received the CFBP Jamnalal

of ex-gratia payments to all employees

RBI mandated level of 9%. We have also

Bajaj Award for Fair Business Practices in

(which was the first such initiative by any

adhered to the tenets of Basel,” said

the Financial Sector Category in 2008. The

bank in the industry) are some of several

Kuppuswamy.

award was instituted by the Council for Fair

Financials

Business Practices, Mumbai based on

such initiatives. We have achieved several business milestones like achievement of Rs. 10000 cr. base in both deposits and

evaluation parameters like customer satisfaction, customer communication, em-

advances and total business of over Rs.

The total business of the bank as on

ployee motivation, social conscience, cor-

25000 cr., which made us the first

31.03.09 was Rs. 25664 cr. with depos-

porate social responsibility and compliance

Tamilnadu based private sector bank to do

it s at R s. 15101 cr. and advances at

with laws.

so,” said P T Kuppuswamy, MD & CEO,

Rs.10563 cr.

Key People

Karur Vysya Bank The bank has embarked on a branch

The profit for fiscal 2007-08 was Rs. 208.33 cr. and profit as on 31.12.08 was

network expansion programme to regis-

at Rs. 152.02 cr. The bank’s Net owned

ter its presence on a pan India basis and

fund is at Rs. 1221 cr. Its Net NPA is likely to

today it has a network of 314 branches

be in the region of 0.25% and Capital

and growing.

Adequacy Ratio more than 13% as on

Challenges

31.03.09.

One of the earliest challenges at a time

year and hope to improve

when focus was on mergers and acquisi-

the branch net-

tions based on the principle that only size

work to 350 by

can ensure success, KVB proved that a

31.03.10,” said

small bank too can be efficient and gen-

Kuppuswamy.

its committed human capital. “As a group, Kayveebians, as we call our employees, have always risen to the occasion and no challenge has been too difficult for them to overcome. The management of the

“We are targeting a total business of Rs. 32000 cr. for the current finan-

Key people who have contributed to the bank’s success have obviously been

c i al

bank has also been farsighted and has taken sev-

erate profitable business. The bank has consistently been generating profits since inception and during 2007-08, the profits crossed the Rs. 200 crore mark. The bank has also been declaring dividends since inception with 100% dividend declared since the past 4 years. “When the doors of the banking industry opened up for new generation banks,

33

JUNE - 2009


eral initiatives and decisions which were aimed at keeping KVB well ahead in the race for supremacy,” said Kuppuswamy.

Policies

“WE HAVE ADAPTED TO THE CHANGING FACE OF THE BANKING INDUSTRY AND IN FACT TAKEN SEVERAL PATH BREAKING INITIATIVES WHICH

With regard to policies, a major contributor to the success of the bank could be the decision of the management to computerize operations and later shift to the CBS platform. Simultaneously, the bank embarked on improving its ATM network by attaching an ATM to all its branches besides going in for off-site ATMs as well. These initiatives gave the bank a head start in the industry in terms of business growth.

WERE AHEAD OF THE TIMES.

OUR

EARLY COMPUTERIZATION PROGRAMME

(IN THE EARLY 1990S), MIGRATION TO THE CORE BANKING SOLUTIONS PLATFORM (2004), IMPLEMENTATION OF EMPLOYEE FRIENDLY INITIATIVES LIKE RELEASE OF EX-GRATIA PAYMENTS TO ALL EMPLOYEES ARE SOME OF SEVERAL SUCH INITIATIVES,”

PT KUPPUSWAMY, MD & CEO, KARUR VYSYA BANK

Another policy decision that has con-

tions whereby clerks are promoted to the

tributed to the success of the bank is the

officer cadre in less than two years and

rapid branch expansion programme with

officers are posted as branch heads within

a view to ensure a pan India presence.

3-4years,” said Kuppuswamy.

Business volumes improved in good measure due to this strategy. “Our HR policies have also been farrewarding employees with ex-gratia payments, when such an initiative was un-

also quickly processed at the Corporate Office level without the customer having to move through miles of red tape,” said Kuppuswamy.

Services “We intend to use technology as the driving force for delivery of best services to our customers.Initiatives like payment of institutional fees like college, hostel, examination fees through KVB ATMs, online utility bill payment and e-shopping though our Internet Banking services, payment for air tickets through our ATMs (presently Kingfisher Airlines), transfer of funds from card to card and card to acfunds transfer through RTGS and NEFT from all our branches have kept us well ser vices to our bouquet of such tech

tomer ecstasy.

backed services, some of which are in dif-

structure is also in

With an ideal mix of both tradition and

ferent stages of implementation,” said

technology, the bank has been able to

Kuppuswamy.

position itself as a trust worthy bank in

Alliances

the minds of all ages of customers and

place. Besides,

yet appeal to the younger generation

promising em-

through its technology initiatives.

have

“Customers have the choice of either

been given fast

approaching our branch counters for their business requirements or operate at their convenience through our efficient alternate delivery channels like ATMs, Internet Banking and Mobile Banking. Another USP of our bank has been that technology services do not come with a premium. Our product s and ser vices are priced at affordable rates so that the benefits of tech-

P T KUPPUSWAMY, MD & CEO, KARUR VYSYA BANK

34

sanction of loans. Big ticket advances are

ahead in the race. We plan to add more

incentive

track promo-

sure quick decision process in cases of

What sets KVB apart in the crowded

healthy performance

ployees

sional offices, we have been able to en-

banking space is its policy of ensuring cus-

known in the industry. A linked

With devolution of powers to the Divi-

count through KVB ATMs, enabling quick

USP

sighted. We had implemented a policy of

nology can reach even the common man.

The Bank does not have any subsidiaries or joint ventures. But in order to make KVB into a one stop shop financial supermarket where all types of financial services are made available to the customers, it has entered into tie ups with other agencies. Life polices of Birla Sun Life Insurance Co., non life insurance policies of Bajaj Allianz General Insurance Co., mutual fund products of Reliance MF, LIC MF, SBI MF, Franklin Templeton MF, Birla SunLife MF, and Sundaram BNP Paribas MF are marketed through the counters of the bank . The bank is a depository participant and its demat customers can trade through its tie up with Religare Securities Ltd. ❑

JUNE - 2009


35

One of the core strengths of the

scheme by name KVB Green card. In

THE KARUR VYSYA BANK LIMITED

bank has been its presence in semi

order to cater the need of the farmers

POPULARLY KNOWN AS

urban and rural areas. Long before the

to improve their investment credit, we

new gen banks started looking at Tier

are having KVB GREEN CARD PLUS

II and III centres for business, they have

scheme which will fulfill the need of

registered its strong presence in such

the farmers for their working capital

places. At present, out of its 314

as well as long term investment

branches, the bank has presence in 97

needs,” said Kuppuswamy. The other

CHETTIAR TO INCULCATE SAVINGS HABIT

urban, 110 semi-urban and 49 rural

core area in agriculture is Farm Mecha-

AND TO PROVIDE FINANCIAL ASSISTANCE

centres.

nization. To cater the need of this port-

TO TRADERS AND SMALL AGRICULTURISTS

KVB WAS

SETUP BY TWO GREAT VISIONARIES AND ILLUSTRIOUS SONS OF

KARUR, THE LATE

SHRI M A VENKATARAMA CHETTIAR AND THE LATE

“Through these centres, we have

folio, we have specialized schemes

been providing yeoman service to de-

named as KVB GREEN TRAC & KVB

velopment of these small economies.

GREEN HARVEST. Both the schemes

Our bank has been consistently

are having flexible norms. Even after

reaching the priority sector advances

the har vest, the bank is extending

target of 40% (40.10% as on 31st

loans against the agri commodities,

March 09) of total advances as man-

stored by the farmers in warehouses

TOUCHED

dated by the Reserve Bank of India

so as to help them to market their pro-

DEPOSITS AT

and a major reason for this achieve-

duces at a better price later.

SHRI ATHI KRISHNA

KARUR, A TEXTILE

IN AND AROUND TOWN IN

TAMIL NADU. 1916

THE TOTAL BUSINESS OF THE BANK RS. 25664 CR.

WITH

RS. 15101 CR. AND

ADVANCES AT

RS.10563 CR.

ment can be attributed to our opera-

“Significantly, we were one of the

tions in these centres.Agricultural

earliest banks in the country to ensure

lending was at 10.30% as on 31st

complete migration to Core Banking

THE PROFIT TOUCHED RS. 208.33 CR.

March 09,” said Kuppuswamy.

Solutions platform and we were the

AND PROFIT AS ON

The bank has its share under all the

only bank to network all our branches

Govt. sponsored schemes. “We are

including the semi-urban and rural

now concentrating more on Micro

branches.KVB has also participated

credit through MFI besides lending

whole heartedly in the initiatives of the

directly to various Self help groups,

local administration of several centres

especially women groups engaged in

to ensure total financial inclusion. Loan

Farm sectors activities.In accordance

waiver scheme as mandated by the

with Govt/RBI guidelines, we have

government has also been imple-

launched our own Kisan Credit Card

mented by us,” said Kuppuswamy.

31ST MARCH 2009

31.12.08 WAS AT

RS. 152.02 CR. 2007-08

JUNE - 2009


The Visionary A vision is not just a picture of what could be; it is an appeal to our better selves, a call to become something more.- Rosabeth Moss Kanter

SYNDICATE BANK WAS ESTABLISHED IN 1925 IN UDUPI, THE ABODE OF LORD KRISHNA IN COASTAL KARNATAKA WITH A CAPITAL OF RS.8000/- BY THREE VISIONARIES - UPENDRA ANANTH PAI, A BUSINESSMAN, VAMAN KUDVA, AN ENGINEER AND DR.T M A PAI, A PHYSICIAN - WHO SHARED A STRONG COMMITMENT TO SOCIAL WELFARE.

36

JUNE - 2009


The objective was primarily to extend

strategic branches with their ATMs are

financial assistance to the local weavers

being networked nationwide over a 4 year

who were crippled by a crisis in the

period.

handloom industr y through mobilising

Rural Development Initiatives The Bank has Lead Bank responsibility in 25 districts across the Country. The

The bank collected as low as 2 annas

Performance

Bank is also the Convener of the State

daily at the doorsteps of the depositors

The bank has declared a profit of Rs 910

Lakshadweep and has discharged satis-

through its Agents under its Pigmy De-

crore for the year against last year’s Rs 848

factorily the responsibility cast on it as the

posit Scheme started in 1928. This scheme

crore, the YoY growth is 8%, however the

Convener of SLBC.There are 5 Regional

is the Bank’s brand equity today and the

growth Q4 to Q4 is 64%, the growth of

Rural Banks (RRBs) sponsored by our Bank

Bank collects around Rs. 2 crore per day

the year has been enabled by the increase

covering 30 districts in 5 States with a net-

under the scheme. The progress of Syndi-

in interest on advances which has grown

work of 1,244 branches. The RRBs spon-

cate Bank has been synonymous with the

up by 22% and tertiary income has been

sored by the Bank occupy top league

phase of progressive banking in India.

good in Q4, the profit on sale of invest-

among 92 RRBs in the Country in respect

Spanning over 80 years of pioneering

ment was Rs 168 crore as against Rs 67

of Key Business Parameters. The Bank is

expertise, the Bank has created for itself

crore in the corresponding period last

imparting training to unemployed youth

a solid customer base comprising custom-

year.

through eight Syndicate Institutes of Ru-

small savings from the community.

ers of two or three generations. Being

The bank has done well overall, the ef-

firmly rooted in rural India and under-

Level Banker’s Committee (SLBC) in Karnataka and the Union Territor y of

ral Entrepreneurship Development (SIRDs).

ficiency parameters like the net NPA and

These institutes have conducted 206

standing the grassroot realities, the Bank’s

the gross NPA has been achieved, the

training programmes during the year 2007-

perception had vision of future India.

gross NPA has been brought down to

08, upgrading the skills of 7,095 persons.

It has been propagating innovations in

1.93% against 2.71% in the last year and

Banking and also has been receptive to

the net NPA has been brought down to

new ideas, without however getting up-

0.77% against 0.97% in the last year.

rooted from its distinctive socio-economic and cultural ethos. It s philosophy of growth by mutual sustenance of both the Bank and the people has paid rich dividends. The Bank has been operating as a catalyst of development across the country with particular reference to the common

Outlook The Bank is projecting a steady growth of 20% in year 2009-10 and also a similar growth of 20% at the deposits. It hopes to contain the gross NPA and the net NPA at the current level.

man at the individual level and in rural/semi urban centres at the area level.

SPANNING OVER 80 YEARS OF PIONEERING EXPERTISE, THE BANK HAS CREATED FOR ITSELF A SOLID CUSTOMER BASE COMPRISING CUSTOMERS OF TWO OR THREE GENERATIONS.

BEING FIRMLY

ROOTED IN RURAL INDIA AND UNDERSTANDING THE GRASSROOT REALITIES, THE

BANK’S PERCEPTION HAD VISION OF

FUTURE INDIA.

The Bank is well equipped to meet the challenges of the 21st century in the areas of information technology, knowledge and competition. A comprehensive IT plan is being put in place and the skills and knowledge of the Bank’s personnel are being upgraded through a variety of training programmes to promote customer delight in ever y sphere of its activity. The Bank has launched an ambitious technology plan called Centralised Banking Solution (CBS) whereby 500 of their

37

V K NAGAR, EXECUTIVE DIRECTOR, SYNDICATE BANK JUNE - 2009


The Focussed I count my change, not the notes. They seem to fly higher. But I still bank and I still have change…But trust me, I have not changed. Anonymous

UCO BANK IS THE ACRONYM OF THE ERSTWHILE UNITED COMMERCIAL BANK. THE BANK WAS INCORPORATED ON 6TH JANUARY, 1943 UNDER THE NAME AND STYLE OF THE UNITED COMMERCIAL BANK LTD. WITH ITS HEAD OFFICE AT KOLKATA.

38

JUNE - 2009


The Bank started its banking business on

etc. UCO Bank is now considered as one

challenges in terms of downturn in busi-

10th May, 1943. G D Birla was the first

of those banks which provides a full range

ness and profitability thereof. However,

Chairman of the Bank. Initially the Bank

of services,” said S K Goel, CMD, UCO

the brief period could be overcome by the

started its operations in financing com-

Bank In the year 2003-04, the Bank has be-

Bank in no time by implementation of Stra-

mercial activities. The Bank had opened

come a listed Bank having gone to the

tegic Revival Plan, which made the Bank

it s first overseas branch in 1947 in

Public and the Government’s shareholding

turnaround into a profitability position

Rangoon. Between 1948 and 1954, the

being brought down to 74.98% and fur-

with no backward looking. The current

Bank opened branches in Malaysia,

ther to 63.59% in the year 2008-09

year 2008-09 is the year when the Bank

Singapore, Hong Kong and London. By

through restructuring of Bank’s capital.

has earned a record net profit of Rs.

the year 1962, the Bank had become one

In the last three years i.e. since 2006-

552.72 crore. This testifies that the Bank

07, the Bank has moved to Core Banking

has come out with flying colours in imple-

The Bank shifted its Head Office from

Solutions (CBS) and it is one of the fastest

mentation of its policies and adaptation

the then Royal Exchange Place to a more

Banks which has undertaken the imple-

to the changing environment in the bank-

spacious and aesthetically beautiful build-

mentation of CBS. The Bank has already

ing system.

ing of its own at 10 Brabourne Road,

migrated more than 1036 branches to CBS

Kolkata on29th August, 1964.

platform. The Bank also has alternative

Key People

of the leading Banks in India.

The Bank was one of those 14 leading

delivery channels such as, ATMs, e-bank-

It was the vision of Late G D Birla, the

private sector banks which were Nation-

ing and mobile banking. The Bank now is

Founder of UCO Bank to form a banking

alized on 19th July, 1969. After the nation-

not only customer-driven, but also tech-

company keeping in tune with the ideals

alization, there has been phenomenal

nology driven.

of Mahatma Gandhi and more particularly

change in the expansion of UCO Bank,

The Bank is focusing on Financial Inclu-

both in terms of branch expansion as well

sion and it has taken up with all serious-

as diversification of financing activities.

ness the implementation of the same,

The growth of the Bank was spectacular

with the Bank making deeper inroads

in terms of branch network, deposits,

therein.

advances and in particular, advances to

“The Bank has targeted a total business

the priority sectors. 67% of the branch

of Rs. 2,02,000 crore at a growth rate of

network of UCO Bank constitutes rural

19 per cent for the year 2009-10, with

and semi-urban branches. The Bank has

deposits at Rs. l,18,300crore and ad-

attached great importance to expansion

vances at Rs. 83,700 crore. The Bank has

of branch network in hitherto un-banked

targeted this business figure against the

rural and semi-urban areas, consistent

background of its performance, more par-

with the objectives of nationalization.

ticularly during the last two years,” said

There was also a marked shift in style of

Goel.In the last two years, the percent-

advances with the emphasis shifting to

age growth in the Bank’s business has im-

observance of Government norms for pri-

proved from 20.66 in the year 2007-08 to

ority sector financing.

25.35 in the year 2008-09. During these

“On 30th December, 1985, the name

two years, the volume of business added

of the Bank changed from the United

by the Bank has been to the tune of Rs.

Commercial Bank to UCO Bank. UCO Bank,

57,560 crore.

since its beginning, has an all India character including global presence and came into prominence within a very short period of its establishment venturing into sophisticated areas of banking like financing of industrial activities, foreign exchange business, international banking

39

to serve people who are deprived of banking services and deploy funds for the economic development of the country.

Thrust Areas The Corporate philosophy and goals of the Bank for the year 2009-10 include sustained profitability against the backdrop of global turmoil and its impact on Indian economy and banking system and delving deeper into Bank’s Core Competences and to limit its exposure to not to get into financing of Services affected by the global meltdown. In order to achieve the Corporate goals, the Bank’s focussed approach is 

Challenges Throughout the 66 years of UCO Bank’s



the early 90’s, when the Bank has to face

Focussed vigil on fresh generation ofNPAs



Steady increase in low-cost deposits round the year

existence, the Bank has moved quite smoothly except for a brief period during

Uniform segmented business growth



Technology platform to cover all branches of the Bank

JUNE - 2009




Credit delivery to ensure asset quality

surance and TATA-AIG Life Insurance

image of the Bank, but also having deeper

and profit planning

Company respectively.

penetration in increasing the customer

“Above all, the Bank believes the Custhe Bank has customer service as its top

Future Plans

agenda item which will include improved

“2008-09 has been a remarkable year

ambience in the branches with all facilities

for the Bank as the Bank achieved all its

being provided to the customers. The

targets as laid down by the Ministry of Fi-

Bank has declared the year 2009 as the

nance under Statement of Intent (SOl) for

‘Year of the Customer’”, said Goel.

the year 2008-09.

tomer is the key to its success. Therefore,

Financials

base. The Bank would like to see the customer satisfaction achieving its highest peak. The Bank will focus on important business segments such as, Mid Corporate, Small Enterprises and Retail so that the customers are served better through retail outlets, which will also give good income to the Bank in consolidating its operations,” said Goel.

The Bank has also made a record net profit of Rs. 557.72 crore which has been

Strengths

the highest in the history of UCO Bank.

The main strength of the Bank is its

At present, the Bank has a total business

However, the Bank considers that in or-

Pan - India presence. The Bank has a total

of Rs.1,69,890 crore, with deposits at Rs.

der to become a top class Bank, it should

number of 2065 domestic branches

1,00,221 crore and advances at Rs. 69,669

strengthen and consolidate its operations

spread across the length and breadth of

crore. The Bank has targeted a total busi-

in the years to come to make the net profit

the country, with four branches in over-

ness of Rs. 2,02,000 crore with deposits

earning commensurate with the business

seas centres and two representative of-

at Rs. 1,18,300 crore and advances at Rs.

growth. No doubt, the year 2009-10 will

fices each in Malaysia and China.

83,700 crore. The Bank would like to have

be a challenging year for the Bank. The

a growth in CASA (Current + Savings) de-

challenge will not only be consolidating

posit to the tune of 30% and fee-based

banking operations due to economic slow

ser vices which include focus on

down, but also nullif ying the impact

Bancassurance and Third-Party products.

thereof and at the same time, improving

Alliances During the year 2008-09, the major alliances were: 

crore of business. The Bank will remain firm in its commitment to touch Rs. 200,000 crore of business by

UCO Bank and India Infrastructure Fi-

March, 2010. The year 2009

nance Company Ltd. (IIFCL) signed an

is the ‘Year of Customer’

MoU in the presence of Union Minister

and the Bank will continue

of State of Finance to pool their re-

its efforts in consolidating

sources and expertise towards financ-

the gain which it has made

ing infrastructure projects.

not only in improv-

To attract customers under UCO Car



its business level to cross Rs. 200,000

ing the

“The Bank has a good network of rural and semi-urban branches which can aid the Bank to penetrate into the field of rural marketing. The Bank has a total strength of around 25,000 skilled manpower, which is a great strength in implementation of our future diversified activities and plans. The Bank has been recruiting young talent in various generalist and specialist fields to cope up with the emerging challenges in the banking sector which will become the main source of strength for the Bank in the years to come,” said Goel.❑

Loan Scheme, the Bank has executed an MoU with Maruti Suzuki on 27.03.2009 as a preferred financier for purchase of Maruti cars. A similar agreement has also been signed with Tata Motors Ltd. on 30.03.2009 for financing purchase of Tata model vehicles including NANO. 

Group Life Insurance covers for the Education Loan and Special UCO Shelter borrowers of the Bank have been finalized with Kotak Old Mutual Life In-

40

SK GOEL, , CMD, UCO BANK

JUNE - 2009


ADVERTORIAL

41

JUNE - 2009


The Resilient In the 21st century, it’s a bank which makes countries, states, cities, towns, villages…lives. And so will it till money exists - Anonymous

THE ORIGIN OF UNITED BANK OF INDIA GOES BACK AS FAR AS 1914 (CONSIDERING THAT IT WAS FORMED OUT OF THE AMALGAMATION OF FOUR SMALL BANKS

BENGAL; ONE OF THEM, COMILLA BANKING CORPORATION LTD. WAS 1914). WITH 174 BRANCHES AND BUSINESS OF RS 259 CRORES, UBI WAS ONE OF THE 14 BANKS WHICH WERE FIRST NATIONALIZED IN JULY 1969. ITS INITIAL GROWTH, DECLINE, RISING AND THE CURRENT SUPREMACY IS STUPENDOUS AND A CLASSIC STORY OF MATURITY, FORESIGHT, VISION AND COMMITMENT AMONG OTHER KEY ENABLERS. OF

ESTABLISHED IN

42

JUNE - 2009


Fifty eight years ago, on December 18,

Prudential Accounting Standards, the Bank

of Banking Reforms, weakness being iden-

1950 United Bank of India (UBI) was born

incurred huge losses in the year 1993 and

tified in three main areas –Operation, Hu-

out of amalgamation of four banks viz.,

1994 and was identified as a weak bank

man Resources, and Management. How-

Comilla Banking Corporation, Bengal Cen-

by the Working Group set up at the time

ever, at the end of 2001-02, UBI could turn

tral Bank, Comilla Union Bank and Hooghly

around under the guidance of RBI and

Bank, established in the years 1914, 1918,

scaled a new height of 522% rise in net

1922 and 1932 respectively. Subsequently,

profit at Rs. 119.04 crore,” said Satish

two more banks (Cuttack Bank Limited

Chander Gupta, Chairman & Manag-

and Tezpur Industrial Bank Limited) were

ing Director, United Bank of India.

merged with United Bank of India in the year 1961. On July 19, 1969, United Bank of India was nationalized. Hindusthan Mercantile Bank and Narang Bank of India Limited

The Rising

were merged with it in the year 1973 and 1976, respectively. UBI made striding

The growth of the Bank ac-

progress in many areas particularly in

celerated in the new millen-

branch expansion and growth of depos-

nium and according to

its from 1985 to 1993.

The Decline

Gupta, the turn around was the fastest not only in the banking sector but also in

During 1969-1980, UBI’s total business

the entire corporate

increased by 19.7% p.a as against

world. “During the year

10.9% p.a grow th achieved during

2001-02, special focus

1950-1969. But the bank got most af-

was given on improv-

fected by the implementation of Pru-

ing efficienc y, opti-

dential Accounting Standards as a part

mizing the utilization

of Regulatory measures initiated in

of

available

re-

India in the early 90’s. Since then rate

sources and oppor-

of growth of business declined to

tunities and gen-

12.7% p.a and 12.5%p.a during the

era-

decades 1980 to 1990 and 1990 to 2000 respectively. “As a result of implementation of

43

JUNE - 2009


tion of adequate surplus. Technology

reduction of high cost deposits, increas-

upgradation, replacement of costly de-

ing Non-interest income etc. As a result

posit by low cost deposits, reshuffling of

the Operating Profit this year has in-

advance portfolio to raise yield on ad-

creased by Rs. 210 crore or 45% over last

vance, earning through interest and fee

year. The factors responsible for this im-

based income were some of the strate-

provement are; increase in net interest in-

gies of the Bank which helped it to turn

come by Rs. 256.90 crore or 28.4% over

around. Besides, the Bank launched a

last year, increase in Net Interest Margin

number of customer friendly products and

(NIM) from 2 percent during 2007-08 to

the Bank’s image was lifted considerably

2.15 percent during 2008-09, increase in

by branding the name “United” to all its

Treasury Income by 20.4% and lastly, con-

products,” said Gupta.

taining increase in operating expenses to

UBI started earning healthy profit and the Bank acquired a high rating by both

the extent of 8%,” said Gupta.

nium. It was placed in the list of TOP 500

Key People

companies during 2002-03 for the first

Since inception UBI has been fortunate

time by Dun and Bradstreet, a renowned

to have prominent leaders each of whom

international credit rating agency. The

has contributed to the growth of the Bank

marked improvement that UBI achieved in

in his own way. B.K.Dutta, Madhukar, P K

the year 2002 in respect of all the four cri-

Gupta are not just names for UBI, they are

teria of autonomy package, viz. Net Profit,

leaders who led and took the bank to a

NPA ratio, Capital Adequacy Ratio and Net

statute that not many can match.

the RBI and the market in the new millen-

Owned Funds helped it restore its autonomy status.

According to Gupta, the contribution of

UNITED BANK OF INDIA WAS BORN OUT OF AMALGAMATION OF FOUR BANKS VIZ.,

COMILLA BANKING CORPORATION, BENGAL CENTRAL BANK, COMILLA UNION BANK AND HOOGHLY BANK 1950 UNITED BANK OF INDIA WAS NATIONALIZED 1969 HINDUSTHAN MERCANTILE BANK MERGED WITH

Sri B.K.Dutta, a leader of outstanding

UBI

1973

Now the Bank is on development path.

character with ability and deep commit-

The business is increasing continuously

ment to social and economic develop-

and the Bank has expanded branch net-

ment of India to UBI is great from its origin

work across the country, launched a num-

to expansion. “His personality made a

ber of deposits and credit products com-

deep impact on the growth of UBI and

mensurate with the current trend. The

banking as a whole in the eastern region

UBI’S TOTAL BUSINESS INCREASED BY

Bank is delivering its best and efficient ser-

of the country. Dutta was the first custo-

vices with improved technological infra-

19.7% P.A AS AGAINST 10.9% P.A

dian of UBI,” he said.

structure aiming at increasing its share in a fiercely competitive market.

Madhukar, ex-Chairman and Managing Director brought around a significant im-

NARANG BANK OF INDIA LIMITED MERGED WITH

UBI

1976

GROWTH ACHIEVED DURING

1950-1969.

1969-1980

During the first fifty years i.e, between

provement in operational efficiency and

1950 and 2000, the Bank’s business in-

productivity of the Bank. “He is a success-

creased from Rs 40 crore to Rs 22,283

ful turn-around manager in Indian bank-

1993 & 1994

crore, a growth by 13% p.a only while in

ing, his thoughts were echoed in the in-

the next eight years, the Bank crossed the

UBI RISES UNDER THE GUIDANCE OF

dustry circle, forcing the government and

milestone of Rs 75,000 crore. The Bank

the RBI to pause and rethink about capital

has now 1452 branches, 1007 RTGS/NEFT

adequacy ratio,” said Gupta.

enabled CBS branches covering 92% of its business and 226 own ATMs.

P.K.Gupta, ex-Chairman & Managing Director has also provided leadership by

“During the year 2008-09 our main

addressing the need of professionalism in

thrust was on increased lending to retail

banking services, pointing out the key role

sectors like Agriculture, SME, Housing etc.,

of marketing for banking growth.

44

BANK INCURS HUGE LOSSES

RBI AND SCALED A NEW HEIGHT OF NET PROFIT AT

522% RISE IN RS.119.04 CRORE

2001-02 PLACED IN THE LIST OF TOP 500

JUNE - 2009


Main Thrust According to Gupta, Development of

vice Tax and Excise Duties. Alternative de-

tions. Customers today save less and

livery channels like Tele-banking and M-

spend more. They have become more

banking are also being offered by the

borrowers than savers. Moreover, previ-

Bank,” said Gupta.

ously savers and borrowers were two dis-

business is their foremost priority. “The Bank has achieved a business level of Rs. 90,263 crore as on March 31, 2009. We are trying to reach a business level of Rs. 1.25 lakh crore by March 2010. Emphasis are now on mobilizing more low cost de-

Customer base

tinct categories, but now-a- days these two categories have more or less merged in a new category namely depositors cum borrowers. Lastly it may be said that today walk-in customer concept is missing and the Bank has to bring the customers,”

posits, increasing retail credit mainly in sec-

The number of customers of the Bank

tors like agriculture, MSME, Housing, Auto

increased from 1.15 crore as of March

etc, NPA Management – both reduction

2005 to 1.45 crore at present. Since incep-

and prevention, increasing yield on ad-

tion, UBI has been playing a significant role

With the opening of 57 branches dur-

vances, return on investment and aug-

in the development of the society and the

ing the year 2008-09, the total number of

mentation of non-interest income, in-

economic growth of the nation primarily

branches was 1452 as on March 31, 2009.

creasing forex business etc. The Govern-

in rural sector with emphasis on agricul-

The Bank has decided to open 118

ment has already allowed restructuring of

ture and allied activities. The Bank’s depos-

branches during the year 2009-10.

our Capital and we are planning to go for

its were formed mainly out of the savings

“UBI has presence in all the States and

an IPO this year,” he revealed.

of Bengali middle class families with

Union Territories. However, it has a pre-

The Bank has set a business target for

humble means. Over the past few years

dominant presence in Eastern and North-

themselves of Rs. 1.25 lakh crore by

several events have led to the emergence

Eastern region of the country with 82%

March 2010.

of a new class of consumers – the Young

of its branch network in the region. The

Urban Liberalised Indian Consumers

Bank has 614 rural branches of which 465

(YULICs). “These custom-

are located in Eastern region and 146 in

Technology

feels Gupta.

Branches

Till the end of March 2009, 1005

ers are demanding, open

North-Eastern Region. At present Rep-

branches had migrated to Core Banking

to ideas and flexible in

resentative Offices are being set up in

Solution (CBS), covering 94% of total busi-

choice. They always ex-

Bangladesh, Ho Chi Minh City in Viet-

ness. All the new branches are being

pect high standard of ser-

nam and Myanmar in keeping with

opened as CBS enabled and the bank has

vice and do not remain sat-

a target to bring all the existing branches

isfied with existing

under CBS platform by September 2009.

convenient and

countries,” said

All the CBS branches are RTGS/NEFT en-

cheaper

Gupta. ❑

abled. Cash Management Services (CMS)

banking

is offered to corporate customers at over

channels of

500 locations Internet Banking facility has

t r an s a c -

trade requirements of North Eastern States with these

also been launched. Bank has launched ‘Biometric Smart Card’ based Financial Inclusions programme. “The Bank has 226 ATMs, which are connected to over 32000 ATMs of other banks through NFS and Cash Tree networks. ‘Pre activated Debit Card’ facility for the customers has been introduced and ‘United On-line -Internet Banking’ facility is being offered to its customers through 250 branches. We also offer

SATISH CHANDER GUPTA, CMD, UNITED BANK OF INDIA

online e-payment facility for paying Ser-

45

JUNE - 2009


COMPANIES FOR THE FIRST TIME BY AND

DUN

BRADSTREET, A RENOWNED

INTERNATIONAL CREDIT RATING AGENCY

2002-03

Vision

OPERATING PROFIT INCREASED BY RS. has sponsored 4 Regional Rural Banks

210 CRORE OR 45% FROM 2007-08

The vision of the Bank is to emerge

(RRB) one each in West Bengal, Assam,

as a dynamic, techno savvy, customer-

Manipur and Tripura. These four RRBs

centric, progressive and financially

together have over 1000 branches.

sound premier Bank of the countr y

United Bank of India has contributed

with pan-India presence, sharply fo-

35% of the share capital/ additional

RS. 90,263 CRORE

cused on business growth and profit-

capital to all the four RRBs in four dif-

MARCH 31, 2009

ability, with due emphasis on risk man-

ferent states.In its efforts to provide

agement in an environment of profes-

banking services to the people living in

THE BANK HAS NOW 1452 BRANCHES,

sionalism, trust and transparency, ob-

the not easily accessible areas of the

1007 RTGS/NEFT ENABLED CBS

serving highest standards of corporate

Sunderbans in West Bengal, UBI had

BRANCHES COVERING

governance and corporate social re-

established t wo floating mobile

BUSINESS AND

sponsibilities, meeting the expectations

branches on motor launches which

of all its stakeholders as well as the as-

moved from island to island on differ-

2009

pirations of its employees.

ent days of the week. The floating

1005 BRANCHES OUT OF A TOTAL OF

Essentially, pursuit of excellence is

mobile branches were discontinued

going to be the core philosophy and

with the opening of full-fledged

driving force of the Bank.

branches at the centres which were being ser ved by the floating mobile

Rural Concern

branches. UBI is also known as the 'Tea

UBI played a significant role in the

Bank' because of its age-old associa-

spread of banking services in different

tion with the financing of tea gardens.

parts of the country, more particularly

It has been the largest lender to the tea

in Eastern and North-Eastern India. UBI

industry.

46

2008-09 THE BANK ACHIEVES A BUSINESS LEVEL OF

92% OF ITS

226 OWN ATMS.

1451 BRANCHES OF THE BANK MIGRATES TO CORE BANKING SOLUTION COVERING

(CBS),

94% OF TOTAL BUSINESS. MARCH 2009

JUNE - 2009


47

JUNE - 2009


The Transporter When I had a truck, I left a trail of jealous souls who could not see the world through cars. You see places sitting over four huge wheels and watch a world go by. A happy owner, a satisfied customer, a paid me. I reckon it ought to be the best job with worst of all its odds. Better, coz life is worse even when you pay - Anonymous

A YOUNG TEAM OF HIGHLY MOTIVATED AND ENTERPRISING INDIVIDUALS WITH VIJAY TRANSPORT COMPANY WAS LAUNCHED IN 1958. BEING FROM TRADING COMMUNITY THEMSELVES, THEY WON THE TRUST OF TRADERS SOON AND BECAME THEIR PREFERRED TRANSPORTERS.THEN ON, THERE WAS NO STOPPING THEM.

EXPOSURE TO TRANSPORT ACTIVITIES WAS THE CORE STRENGTH WHEN

48

JUNE - 2009


Transportation in India is diverse, complex and is in an unorganized state. In 50’s and 60’s Vijay Transport Co.introduced movement of goods in Saurashtra and Kutch to far off distances like Mumbai. The company enabled people of Kutch to taste alphonso mangoes, till then not available in Kutch and also ensured that people in Mumbai enjoyed Farm products, Ghee etc. produced in Kutch. Traders of those days were hesitant to hand over their precious cargo to transporters in return of paper consignment notes. “Being from the trading community

KUNVERJI KHIMJI SHAH , FOUNDER, V-TRANS GROUP

ourselves and knowing the apprehensions of traders, we would persuade the trad-

Chevrolet truck, when he left the com-

ers to use our services and thereby open-

pany to start his own business. With this

ing transportation sector with those

same truck, K. K. Shah and his friend

classes of people. By opening 80+ loca-

Balubhai started a transport business in

tions in Gujarat, we brought services to

1950, in the name of Balubhai Kunverji and

the doorstep of the clients. By setting ex-

Co. J.K. Shah also joined them in this ven-

cellent service standards, higher level of

ture. This was the stepping stone for K. K.

honesty, integrity and decorum, we have

Shah towards the formation of a company

compelled the transport industry to pro-

which has blossomed today into one of

vide improved services to the clients,” said

the premier transport logistics companies

Mahendra K. Shah, Managing Director, V-

of the nation having Pan India network.

Trans Group.

In 1952, K.K. Shah launched his own company in the name of Kunverji K. Shah and

The Visionary Kunverji Khimji Shah (K.K.Shah) was an impressive person, a visionary and one of the most respected personalities of Kutch.

Co. along with J.K. Shah, where he was later joined by his 2nd brother V.K. Shah. The company was doing local transport

FOR HIS BIRTH PLACE

KUTCH MADE

HIM THE FIRST PERSON TO TAKE A

(DODGE TRUCK) THROUGH THE DESERT TO BHUJ IN KUTCH IN 1956. THIS MISSION HEAVY VEHICLE

IMPOSSIBLE WAS ACCOMPLISHED DESPITE THERE BEING NO ROADS NOR ANY INFRASTRUCTURE IN THAT AREA.

HE ACTUALLY HAD TO PULL AND PUSH THE HEAVY TRUCK PHYSICALLY THROUGH THE DESERT.

suburbs up to Dahisar. In 1955, at the young age of 32, he

in Kutch- Gujarat, K.K. Shah came to

formed the Retail Transport Owners As-

Mumbai at the tender age of 9 years. He

sociation in Mumbai with his friends and

began working in kirana shops and in

became its first President.

1946, joined Padamshi Narshi & Co., a lo-

K.K. Shah’s passion for risk, challenge

cal transport company, as a clerk. This was

and above all his love for his birth place

the beginning of his journey in the trans-

KUTCH made him the first person to take

port industry. Later his younger brothers

a heavy vehicle (Dodge truck) through the

Vishanji K. Shah (V. K. Shah), Jagshi K.

desert to BHUJ in Kutch in 1956. This mis-

Shah (J.K. Shah) & Umershi K. Shah (U, K,

sion impossible was accomplished despite

Shah) also joined the same company.

there being no roads nor any infrastruc-

To reward his excellent performance

ture in that area. He actually had to pull

and to develop his hunger for growth,

and push the heav y truck physically

Padamshibhai handed over the charge of

through the desert.

49

CHALLENGE AND ABOVE ALL HIS LOVE

business between Mumbai and western

Born in 1923 and brought up in village Patri

his business to K. K. Shah and gifted him a

K.K. SHAH’S PASSION FOR RISK,

But the journey had begun. JUNE - 2009


K. K. SHAH AND HIS FRIEND BALUBHAI STARTED A TRANSPORT BUSINESS BY NAME OF

Mission Group V continuously strives to provide safe, efficient, time-bound and

BALUBHAI KUNVERJI AND CO.

them the highest standards of quality and efficiency - in ways that are most useful to them.

1950 K.K. SHAH LAUNCHED HIS OWN COMPANY IN THE NAME OF

KUNVERJI K.

cost- effective ser vices thereby

To provide them comprehensive

achieving total satisfaction of custom-

and ‘can-do’ solutions, we will form a

SHAH AND CO. ALONG WITH J.K.

ers.

network of complementary allies who

SHAH

The company also regularly updates and develops its technology to meet the changing market requirements. In doing so it strives to achieve the company’s theme of being "Your Competitive Edge".

Vision Group V's vision is “an India with world-class infrastructure, and our chosen role is that of bridging the gap between manufacturing and retailing, such that both compete better.

share our values and standards.”

Philosophy Group V, has always gained its reputation as a very transparent, ethi-

1952 AT THE YOUNG AGE OF 32, HE FORMED THE

RETAIL TRANSPORT OWNERS ASSOCIATION IN MUMBAI

cal, safe & reliable service company

1955

and its customers have received the best value by offering the highest standard of quality & efficiency by providing them a comprehensive and

VIJAY TRANSPORT CO. WAS BORN IN THE SHAPE OF A

can-do solution. “The company has changed from being family owned (Pedhi culture) to professionally man-

PARTNERSHIP FIRM 1958

MAIN FOUNDER K. K. SHAH EXPIRED

aged, system driven and IT enabled to

1993

Group V will be the leading single

negotiate challenges faced in the cur-

window domestic transportation,

rent environment. However, the cur-

warehousing and logistic solution

rent generation of promoters has in-

provider for all market segments, by

herited all the basic values, professed

harnessing our resources, capabilities,

by their founders and are being prac-

ARRANGEMENT WITH PRAKASH PARCEL

experience and goodwill gained over

ticed in today’s time,” said Mahendra

SERVICES, A PROMINENT TRANSPORT

the last 50 years.

K. Shah, Managing Director, V-Trans

Group V's customers will receive

Group.

ORGANIZATION ENTERS

SOUTH INDIA

1996

COMPANY OPERATING BETWEEN AND

SOUTH

NORTH INDIA

the best value because we will offer

2001

50

JUNE - 2009


Growth

started. These review meetings helped

near Mumbai and equipped it with latest

the company to know the top line, bot-

warehousing infrastructure.

tom line, service levels, major events, busi-

Later on, the company added one more

As the company gained momentum,

ness trends, customer service standards,

warehouse of 25,000 sq. ft. at Bhiwandi

the need to expand, made the other fam-

receivables management, etc., by which

and another one of 26,000 sq.ft. at

ily members join the company and in 1958

the company could feel the pulse of its

Ahmedabad.

Vijay transport Co. was born in the shape

business as well as bring synergy within

of a Partnership firm. The years passed by

the organization.

and the company grew multi fold

These excellent review processes which

By 1996, the beginning of professional-

are amongst the most refined ones are

ism began to be evident. The organization

largely responsible for the growth of the

was earlier scattered into eight separate

organization.

businesses and legal entities, having separate accounting & operations software, separate processes & procedures and even separate sets of stationary. These companies were merged into a single entity, viz., Vijay Transport Company Ltd. Accounts and computer software were standardized and a true single powerful company was born, with complete uniformity throughout, on all fronts. Proper review processes were put in place. Formal review meetings were initiated in 1998 which could be amongst the best review processes in the industry. MIS reports were so detailed that even the minutest information would not get missed out. To have structured accountability, the organization was divided into Regions which were further sub-divided into Areas. Centralization of core activities like HRD, Compliance, Finance, Operations, Sales & Marketing, FTL business, Inward Sales & IT was done, which are managed by able Corporate Managers. Each of the directors is assigned a region/corporate department to ensure smooth running of the same. In 1998, the company started using its Sion, Mumbai office on a small scale for back-office work which was later converted into its Corporate office. Formal Executive meetings started in 1998 & became a regular monthly event.

Between 2001 and 2008, the company expanded geographically in the true sense and took several new initiatives.

Today V-Logis is providing services to prestigious clients like Coca Cola, CEVA Logistics, National Starch and others. The company expanded into Southern India through networking and later in the year 2001, started its own set-up. In a span of just 6 day, offices were opened in Bangalore, Chennai and Hyderabad. In Dec. 2002, the company opened its

In the year 2000, the company took a

1st branch in Delhi and today the company

landmark & bold decision to change its

is operating 38 branches in 7 Northern

Corporate Identity of 42 years from the

states.

traditional, very popular Vijay Transport Company Ltd. (with the much adored chariot as its logo) to a more contemporary name and logo. A new Corporate Identity of the company, with visual elements consisting of new name for the company, a new logo, new color scheme, Vision Statement, Positioning Statement and Punch line was later brought to place in the year 2001. On 26th Oct. 2002 (Dassehra day), the company officially launched the Express division under the banner of VXpress. Though the beginning was modest, service standards matched other Express companies and it was perhaps one of the few companies to make profits from the 1st transaction itself. Today, VX has grown into a National level company having its own transshipment and separate Corporate office at CBD-Belapur, Thane District. V-Xpress has now also ventured into air transportation.

Similarly, during the end of 2002, the company made an entry into Central India by opening branches at Indore &. Bhopal. Today, the company has 8 branches in M.P. and Chattisgarh States. In 2006, the company opened its first branch at Kolkata and thereby became a National level player in the true sense. It will not be unjust to mention that in the last 20 years, only one or two transporters have grown from Regional level to National level and we are proud to state that we are one of them. Today, Group V has got 325 branches spread across 20 states having 1300-plus skilled & trained manpower and a turnover of about Rs 200 crores. In 2008-09, the organization ser viced more than One Lakh customers. �We have our presence in all the prominent markets across the country and are into transportation of manufactured goods as well as raw materials like Chemi-

Foreseeing the future, the organization

cals, Engineering goods, Imports & Ex-

decided to go for value added logistics

ports cargo from to and fro Docks and

and warehousing services under its divi-

trader’s materials,� said Shah.

sion V-Logis in 2005. It acquired a 30,000 sq. ft. warehouse at Dapoda (Bhiwandi)

At Regional level, MRM & WRM were also

51

JUNE - 2009


Strengths

Cut throat competition especially from point to point operation was always there, but through perseverance we negotiated

“Maintaining excellent ser vice stan-

it successfully. Diversification, geographi-

dards, being honest in our dealings, always

cal expansion, professionalism and nurtur-

trying to provide innovative solutions to

ing of our human resources have been our

client requirement, has nurtured all of us.

strategy to become successful.”

Excellent infrastructure, large fleet of latest vehicles, trained manpower providing all logistic related services like hard core transportation, express, and logistic services under its 3 Divisions – V-Trans, V-Express and V-Logis have made us a unique single window ser vice provider,” said Shah.

Challenges

The Tough Patch

CHANGED ITS CORPORATE IDENTITY 2001-02

Says Shah, “Every business or industry is prone to challenges imposed on them. We have also faced such challenges in early 70’s, when the entire transport industry was effected by the major labor

Lack of infrastructural facilities like

strike that lasted for 20 days in 1973 & in

Roads, Bridges, Petrol pump and no

the period 74-77 which was the recession

sources of communication were the main

period. The company passed these tough

hurdles according to Shah. He says, “High-

times with their ‘Never Say Die’ attitude

way piracy was common and there was

and due to the goodwill earned from their

limited support from the Police to prevent

customers.”

it. However, we negotiated these with an enterprising spirit and focused approach.

THE ORGANIZATION TIED UP WITH M/ S.

NUTAN RAJAMANI TRANSPORT CO., A PROMINENT TRANSPORT COMPANY IN

RAJASTHAN 2002 THE COMPANY LAUNCHED EXPRESS DIVISION

: VXPRESS

2002 ENTERED INTO TIE-UP WITH NAVATA TRANSPORT, A PROMINENT

Anecdote HOW THE COMPANY BAGGED ITS 1ST MAJOR CONTRACT K.K. Shah, a towering personality with a powerful voice always used to wear spotless white khadi kurta & dhoti with pointed Gandhi cap. His positive aura used

TRANSPORT COMPANY OF

AP

2003-04 LAUNCHED LOGISTIC DIVISION: V-

to impress anyone who came in contact with him. A man of taste, he used to fly

LOGIS

from Mumbai to Kutch by the Dakota aircraft. In one of those journeys, an industri-

2005

alist, Gunwant Shah, Partner of M/s Atul Drug House was sitting next to him. He along with his brother, Navneet Shah, had set up a plant at Kandla - the only one in India - for manufacturing formaldehydes.

OPENED ITS FIRST BRANCH AT

KOLKATA

2006

Gunvantbhai casually shared the difficulties he faced in moving his material from Kandla to all over India. The entrepreneur that he was, K.K. Shah immediately of-

GROUP V HAS GOT 325 BRANCHES

fered to take up the challenge. Impressed by his style and self-confidence,

SPREAD ACROSS

20 STATES HAVING

Gunvantbhai’s Atul Drug House handed over the movement of their entire pro-

1300-PLUS SKILLED & TRAINED

duction of Kandla to VTC. To ensure damage-free and timely deliveries, the trucks

MANPOWER AND A

carrying Atul Drug House materials sometime used to be specially ferried on railway wagons from Kutch to Gujarat. This was the major break-through which took VTC into a much higher league and the company soon became self sufficient in all respects.

52

TURNOVER OF ABOUT

RS 200 CRORES. 2008-09

JUNE - 2009


Key Decisions

process have been the culture of the organization. Guidance and trainings by industry experts, attending various seminars

Taking trucks to remote Kutch through

and forums have made the organization

desert in absence of any roads, opening

informed about things to come in future.

branches and providing services to virgin Saurashtra and Kutch regions in late 50’s, making the organization profitable and handing over the reins to 2nd generation in late 70’s were the key important decisions of previous heads.

“The term ‘Change is constant’ is very relevant to this organization. These changes are first understood and adapted by the promoters and are passed on to managers and employees through dialogues, consultations and trainings. The

“Taking services of competent consult-

employees have now got accustomed to

ants in mid 90’s, venturing into South and

change and are always accepting it whole

later North in 2001 - 2002, converting Part-

heartedly,” said Shah.

nership into a Limited Company in 1996, changing Corporate Identity and thereby

Future Plans

becoming V-trans from Vijay Transport Co.

Looking back, the company started

in 2001, adding Express and Logistic divi-

with just 2 trucks and 2 offices.Today it

sions, adapting state of art ERP package

has expanded to different parts offering

have been important decisions for growth

all logistic related services. The time ahead

and development of the organization .Be-

would bring new dimensions and chal-

ing process driven (the organization ac-

lenges. “In the next few years, we see our-

quired ISO-9001-2000 certificate last year)

selves as a comprehensive logistic com-

is the decision to be able to remain stable despite growth,” said Shah.

pany focusing on domestic markets, as we believe that this country has tre-

“TAKING SERVICES OF COMPETENT CONSULTANTS IN MID 90’S, VENTURING INTO SOUTH AND LATER NORTH IN 2001 - 2002, CONVERTING PARTNERSHIP INTO A LIMITED COMPANY IN 1996, CHANGING CORPORATE IDENTITY AND THEREBY BECOMING VTRANS FROM VIJAY TRANSPORT CO. IN 2001, ADDING EXPRESS AND LOGISTIC DIVISIONS, ADAPTING STATE OF ART ERP PACKAGE HAVE BEEN IMPORTANT DECISIONS FOR GROWTH AND DEVELOP-

mendous potential and the com-

MENT OF THE ORGANIZATION

pany would be building its infrastruc-

PROCESS DRIVEN (THE ORGANIZATION

tab of client’s require-

ture by having its offices in every

ments, adapting latest

state of the country. Modern ware-

business practices, im-

houses with various materials han-

ISO-9001-2000 CERTIFICATE LAST YEAR) IS THE DECISION TO BE

proving upon each and

dling equipment, use of technologies

Currently, keeping a

ever y

business

like ERP, a fleet of latest vehicles fitted with GPS are some of the key steps being

.BEING

ACQUIRED

ABLE TO REMAIN STABLE DESPITE GROWTH,”

MAHENDRA K. SHAH, MANAGING DIRECTOR, V-TRANS GROUP.

taken. We are open to alliances for transfer of technology and application of best business practices and discussions are on,” said Shah. ❑

MAHENDRA K. SHAH, MANAGING DIRECTOR, V-TRANS GROUP

53

JUNE - 2009


The Mover Trivia: The company was established in 1948 as Ashok Motors, with an aim to assemble Austin cars. Manufacturing of commercial vehicles was started in 1955 with equity contribution from the British company, Leyland Motors. Today the Company is the flagship of the Hinduja Group, a British-based and Indian originated transnational conglomerate.

ASHOK LEYLAND IS A COMMERCIAL VEHICLE MANUFACTURING COMPANY BASED IN CHENNAI, INDIA. IT IS THE SECOND LARGEST COMMERCIAL VEHICLE COMPANY IN INDIA IN THE MEDIUM AND HEAVY COMMERCIAL VEHICLE (M&HCV) SEGMENT WITH A MARKET SHARE OF 28% (2007-08). WITH PASSENGER TRANSPORTATION OPTIONS RANGING FROM 18 SEATERS TO 52 SEATERS, ASHOK LEYLAND IS A MARKET LEADER IN THE BUS SEGMENT.

54

JUNE - 2009


Over the years, the Company created a

In the populous Indian metros, four out

creditable track record of moulding a na-

of the five State Transport Undertaking

scent commercial vehicle sector in the

(STU) buses come from Ashok Leyland.

country with pioneering technologies and

Some of them like the double-decker and

product concepts.

vestibule buses are unique models from

The origin of Ashok Leyland can be traced to the urge for self-reliance, felt by

Ashok Leyland, tailor-made for high-density routes.

independent India. Pandit Jawaharlal

In 1987, the overseas holding by Land

Nehru, India’s first Prime Minister per-

Rover Leyland International Holdings Lim-

suaded Mr. Raghunandan Saran, an indus-

ited (LRLIH) was taken over by a joint ven-

trialist, to enter automotive manufacture.

ture between the Hinduja Group, the Non-

In 1948, Ashok Motors was set up in what

Resident Indian transnational group and

was then Madras, for the assembly of

IVECO. (Since July 2006, the Hinduja Group

Austin Cars. The Company’s destiny and

is 100% holder of LRLIH).

name changed soon with equity partici-

The blueprint prepared for the future

ASHOK LEYLAND LIMITED HAS RS 190 CRORE DURING FY 2008-09,

pation by British Leyland and A shok

reflected the global ambitions of the com-

KEEPING INTACT ITS PROFITABLE TRACK

Leyland commenced manufacture of

pany, captured in four words: Global Stan-

commercial vehicles in 1955.

dards, Global Markets. This was at a time

60 YEARS. IT HAS SIX MANUFACTURING PLANTS - THE MOTHER PLANT AT ENNORE NEAR CHENNAI, TWO PLANTS AT HOSUR (CALLED HOSUR I AND HOSUR II, ALONG WITH A PRESS SHOP), THE ASSEMBLY PLANTS AT ALWAR AND BHANDARA. THE TOTAL COVERED

Since then Ashok Leyland has been a

when liberalisation and globalisation were

major presence in India’s commercial ve-

not yet in the air. Ashok Leyland embarked

hicle industry with a tradition of techno-

on a major product and process

logical leadership, achieved through tie-

upgradation to match world-class stan-

ups with international technology leaders

dards of technology.

and through vigorous in-house R&D.

In the journey towards global standards

REGISTERED A NET PROFIT OF

RECORD OF

Access to international technology en-

of quality, Ashok Leyland reached a ma-

SPACE AT THESE SIX PLANTS EXCEEDS

abled the Company to set a tradition to

jor milestone in 1993 when it became the

be first with technology. Be it full air

first in India’s automobile history to win

450,000 SQ M AND TOGETHER EMPLOY OVER 11,500 PERSONNEL.

brakes, power steering or rear engine bus-

the ISO 9002 certification. The more com-

ses, Ashok Leyland pioneered all these

prehensive ISO 9001 certification came in

concepts. Responding to the operating

1994, QS 9000 in 1998 and ISO 14001 cer-

conditions and practices in the country,

tification for all vehicle manufacturing

the Company made its vehicles strong,

units in 2002. It has also become the first

over-engineering them with extra metal-

Indian auto company to receive the latest

lic muscles. “Designing durable products

ISO/TS 16949 Corporate Certification (in

that make economic sense to the con-

July 2006) which is specific to the auto in-

sumer, using appropriate technology”,

dustry.

became the design philosophy of the

Ashok Leyland Limited has registered a

Company, which in turn has moulded con-

net profit of Rs 190 crore during FY 2008-

sumer attitudes and the brand personal-

09, keeping intact its profitable track

ity.

record of 60 years. It has six manufactur-

Ashok Leyland vehicles have built a

ing plants - the mother plant at Ennore

reputation for reliability and ruggedness.

near Chennai, two plants at Hosur (called

The 5,00,000 vehicles we have put on the

Hosur I and Hosur II, along with a Press

roads have considerably eased the addi-

shop), the assembly plants at Alwar and

tional pressure placed on road transpor-

Bhandara. The total covered space at

tation in independent India.

these six plants exceeds 450,000 sq m and together employ over 11,500 personnel. ❑

55

(Inputs from company website)

JUNE - 2009


The Indigenizer If there were electronics in my time, I would have lived electrons…not eons. – Masid Lisha

THE IMPECCABLE ACHIEVEMENTS OF BHARAT ELECTRONICS LIMITED (BEL) IN THE MANUFACTURE AND DEVELOPMENT OF ADVANCED DEFENCE ELECTRONIC EQUIPMENTS HAS STUNNED THE WORD IN 1997-98. UNABLE TO DIGEST ITS ACHIEVEMENTS, THE WESTERN WORLD HAD FORCED SANCTIONS WHICH NO LONGER SUSTAINED AND TODAY INDIA HAS TRULY REALIZED THE DREAM IT HAD DREAMED FIFTY YEARS AGO OF INDIGENIZING ITS TECHNOLOGY AND SELFRELIANCE.

56

JUNE - 2009


BEL primarily manufactures advanced

third unit was established at Pune in 1979

In 1996, BEL achieved Rs.1000 crores

electronic products for the Indian Armed

to manufacture Image Converter and Im-

turnover. In 1997, GE BEL, the second Joint

Forces and is one of the eight PSUs under

age Intensifier Tubes. In 1980, BEL’s first

Venture Company with M/s GE, USA, was

Ministry of Defense, Government of India.

overseas office was set up at New York

formed as also the third JVC with M/s

The company has attained the

for procurement of components and ma-

Multitone, UK, and BEL Multitone. The

terials.

same year, USA imposed supply restric-

Navaratna status in 2007 for its consistence performance since inception.

History

The Space Electronic Division was set up

tions on BEL.

at Bangalore to support the satellite

In 1998, BEL set up its second overseas

programme in 1982. The same year saw

office at Singapore to source components

Bharat Electronics Limited (BEL) was es-

BEL achieve a turnover of Rs.100 crores.

from South East Asia.

tablished at Bangalore, India, by the Gov-

In 1983, an ailing Andhra Scientific Com-

The year 2000 saw the Bangalore Unit,

ernment of India under the Ministry of

pany (ASCO) was taken over by BEL as the

which had grown very large, being reor-

Defense in 1954 to meet the specialized

fourth

ganized into six Strategic Business Units

electronic needs of the Indian defence ser-

Machilipatnam. In 1985, the fifth unit was

vices.

set up in Chennai for supply of Tank Elec-

Over the years, it has grown into a multi-

manufacturing

unit

at

tronics.

product, multi-technology, multi-unit

1986 witnessed the setting up of the

company serving the needs of customers

seventh unit at Kotdwara to manufacture

in diverse fields in India and abroad.

Switching Equipment, the eighth Unit to

The growth and diversification of BEL

manufacture TV Glass Shell at Taloja (Navi

over the years mirrors the advances in the

Mumbai) and the ninth Unit at Hyderabad

electronics technology, with which BEL

to manufacture Electronic Warfare Equip-

has kept pace.

ment. In 1987, a separate Naval Equipment

Starting with little communication equipment in 1956, BEL went on to produce Receiving Valves, Germanium Semiconductors and Radio Transmitters for AIR till 1964. In 1966, BEL set up a Radar manufacturing facility for the Army and in-house R&D, which has been nurtured over the years. Manufacture of Transmitting Tubes, Silicon Devices and Integrated Circuits started in 1967. In 1970, manufacture of Black & White T V Picture Tube, X-ray Tube and Microwave Tubes started. The year 1972 saw BEL manufacturing TV Transmitters for Doordarshan which was followed by the manufacture of Frigate Radars for the Nav y. Under the government’s policy of decentralization and due to strategic reasons, BEL ventured to set up new units at various places. The second unit of BEL was

Division was set up at Bangalore to give greater focus to naval projects. The first Central Research Laboratory was established at Bangalore in 1988 to focus on futuristic R&D. The year 1989 saw the manufacture of Telecom Switching and Transmission Systems and a Mass Manufacturing Facility in Bangalore to manufacture the first batch of 75,000 Electronic Voting Machines.

Joint ventures The agreement for setting up BEL’s first Joint Venture Company, BE DELFT, with M/ s Delft of Holland was signed in 1990. The second Central Research Laboratory was established at Ghaziabad in 1992. The first disinvestment (20%) and listing of the Company’s shares in Bangalore and

The R&D groups in Bangalore were also restructured into Specific Core Groups and Product Development Groups. The same year, BEL shares were listed in the National Stock Exchange.

Achievements The company announced a steady growth in standalone net profit for the quarter ended March 2009. During the quarter, the profit of the company rose 10.82% to Rs 5,594.38 million from Rs 5,048.30 million in the same quarter last year. Net sales for the quarter rose 19.25% to Rs 27,352.10 million, while total income for the quarter rose 17.85% to Rs 27,647.59 million, when compared with the prior year period.

Future outlook Continuing its focus on Defence products the Company is aggressively pursuing new orders for products and systems in its core segments like Radars, Communication, Sonars, Electronic- War fare, Electro-Optics, Tank Electronics and Simulators, etc.❑

Mumbai Stock Exchanges took place the same year.

set up at Ghaziabad in 1974 to manufac-

BEL Units obtained ISO 9000 certifica-

ture Radars and Tropo communication

tion in 1993-94. The second disinvestment

equipment for the Indian Air Force. The

(4.14%) took place in 1994.

57

(SBUs).

(Inputs from company website)

JUNE - 2009


The Amalgamator Did You Know?: AMCO Batteries Limited is the first battery manufacturer to be awarded ISO-9001 Certification by BVQI.

AMCO BATTERIES LIMITED OF THE AMALGAMATIONS GROUP IS THE LEADING BATTERY MANUFACTURER WITH A WIDE SPECTRUM OF WORLD CLASS HIGH PERFORMANCE POLYPROPYLENE BATTERIES FOR THE AUTOMOBILE INDUSTRY.AMCO IS THE PREFERRED

BIKES, SCOOTERS, CARS AND ALL OTHER PASSENGER VEHICLES. IT OCCUPIES A PLACE OF PRIDE IN BOTH THE ORIGINAL EQUIPMENT AND REPLACEMENT MARKETS ENJOYING AN ENVIABLE POSITION BEING THE PREFERRED CHOICE FITMENT. CHOICE FOR THE NEW GENERATION

On account of its track record in the two

and ser vice centres that ensure ready

operations under the stewardship of late

wheeler battery segment, the company

availability and reliable after-sales service

Mr. K.G. Parameswaran. It was his vision,

has the privilege of being an exclusive sup-

and maintenance.

ably supported by his management team

plier to Hero Honda, TVS, HMSI, Yamaha,

Over the last two decades, the com-

of Mr. S. Santhanam that has led to the

Bajaj, Royal Enfield etc. The company has

pany has invested substantially in R&D and

exponential growth of the company and

a track record of supplying 4-wheeler bat-

continues to bring the best of products to

undisputed leadership in the automotive

teries to TAFE Tractors, Eicher Tractors,

the market place. AMCO, the market

battery segment.

Cummins India Ltd, Sonalika Tractors etc.

leader for two wheeler automotive bat-

Subsequently under the leadership of S.

Pioneering Quality Standards in batteries

teries in the country manufactures world

Anantharamakrishnan and the current

with contemporar y technology and

class batteries for both two wheelers and

Chairman of the Amalgamations Group,

ceaseless attention to quality, AMCO Bat-

four wheelers with a wide product range

A. Sivasailam, the company had grown

teries Limited is the first battery manufac-

comprising of Dr y Charged, Factor y

manifold from its humble beginnings as an

turer to be awarded ISO-9001 Certifica-

Charged called Powerex and Maintenance

accumulator to be a manufacturer. Today,

tion by BVQI.

Free called Powerstar. With the introduc-

AMCO Batteries Limited is an integral part

AMCO Batteries Limited with its state of

tion of Charge Boosters - ASA Technol-

of the over Rs. 5000 Crore Amalgam-

the art technology (R&D) was recognised

ogy, AMCO has revolutionized the battery

ations Group, one of the largest Light En-

by the Department of Science and Tech-

industry.

gineering Groups in India.

nology, Government of India as a company that contributes towards import sub-

History

AMCO has been awarded with QS 9000:1998, ISO 9001, ISO 14001 and

stitution and indigenisation. AMCO Batter-

Amco Batteries Limited was started in

TS16949 certification, which is proof of its

ies has proven its commitment to its cus-

1932 by Becken Bain, a German national,

highest quality standards and Eco friendli-

tomers by establishing well supported

and purchased by Amalgamations Group

ness. â?‘

nation-wide network of marketing offices

in 1955 for Rs. 5 Lakhs; it commenced

58

(Inputs from company website)

JUNE - 2009


The Sanitizer Did you know?: The company was founded in 1954 as a tripartite collaboration between the Murugappa Group, Carborundum Inc, USA, and the Universal Grinding Wheel Co Ltd, UK.

AFTER HALF A CENTURY AND MORE OF UNDISPUTED MARKET LEADERSHIP IN EACH OF ITS BUSINESSES, CARBORUNDUM UNIVERSAL LIMITED (CUMI) IS GETTING READY FOR ITS ROLE AS A GLOBAL CORPORATION. THE COMPANY IS PLANNING A MAJOR EXPANSION OF ITS TERRITORIAL BASE, WITH DYNAMIC ACQUISITIONS, JOINT VENTURES, AND STRATEGIC PARTNERSHIPS. Carborundum Universal Ltd (CUMI) pio-

tion. It is one of the few manufacturers of

(brown fused alumina grains, white fused

neered the manufacture of coated and

abrasives and ceramics in the world with

alumina grains and silicon carbide grains)

bonded abrasives in India, besides super

fully integrated operations that include

supplies a significant portion

refractories, electrominerals, industrial

mining, fusioning, power generation and

ceramics and ceramic fibres.

manufacturing, besides marketing and dis-

CUMI, a flagship company of the USD 3

tribution.

Subsidiaries and Joint ventures The various subsidiaries and associates

billion (Rs15646 crore) Murugappa Group,

CUMI’s in-house R&D and collaborative

with which CUMI accelerates its business

has total revenues of Rs. 456 crore. The

research with foreign institutions have

leads include CUMI America Inc, CUMI

company was founded in 1954 as a tripar-

ensured market leadership in India and

Canada Inc, CUMI Middle East, Ras Al

tite

the

abroad. To increase productivity, it has in-

Khaima, UAE, Sterling Abrasives Ltd,

Murugappa Group, Carborundum Inc,

troduced the concept of ‘lean manufac-

Southern Energy Development Ltd, and

USA, and the Universal Grinding Wheel Co

turing’ and implemented Six Sigma work

Prodorite Anticorrosives Ltd and so on.The

Ltd, UK.

practices. CUMI’s global expansion has

company has also signed MoUs and

In sync with the global vision, CUMI is

enlarged its customer base. CUMI today

formed joint ventures with companies

expanding its product spread. The com-

has a presence in 43 countries and also has

such as Wendt (India) Ltd, Murugappa

pany makes over 20,000 different variet-

200,000 retail outlets.

Morgan Thermal Ceramics Ltd and Ciria

ies of abrasives, refractory products and

Areas of business

electro minerals, manufactured at 14 lo-

Basically CUMI is an industrial ceramic

cations. CUMI has the distinction of hav-

material-based products and service pro-

ing all its manufacturing units ISO 9001:

For the quarter ended 30th June, 2008

vider, with operations spread across three

2000 certified.

CUMI earned a gross sales income of Rs

collaboration

bet ween

India Ltd.

Financials

business segments. Abrasives (bonded

17184 lakhs. The net sales income of its

State-of-the-art facilities and strategic

abrasives, coated abrasives and allied

operations was set at Rs 15701 lakhs. ❑

alliances with global partners have earned

products) constitute the company’s larg-

CUMI a reputation for quality and innova-

est business segment.Electrominerals

59

(Inputs from company website)

JUNE - 2009


The Electrifier “A leader has the vision and conviction that a dream can be achieved. He inspires the power and energy to get it done.” — Ralph Lauren

AVAILABILITY OF ENERGY AT A REASONABLE COST IS THE SECRET BEHIND THE MOST SUCCESSFUL NATIONS IN THE WORLD TODAY. CROMPTON GREAVES (CG) HAS COME ACROSS A LONG WAY TOWARDS THIS END AND SINCE ITS INCEPTION

CG HAS BEEN SYNONYMOUS WITH ELECTRICITY. IN 1875, A CROMPTON ‘DYNAMO’ POWERED THE WORLD’S VERY FIRST ELECTRICITY-LIT HOUSE IN COLCHESTER, ESSEX, U.K. CG’S INDIA OPERATIONS WERE ESTABLISHED IN 1937, AND SINCE THEN THE COMPANY HAS RETAINED ITS LEADERSHIP POSITION IN THE MANAGEMENT AND APPLICATION OF ELECTRICAL ENERGY.

60

JUNE - 2009


Over the past few years, Crompton

Parkinson Ltd., (CPL). Greaves Cotton and

Greaves has been executing various initia-

Co (GCC) was appointed as their conces-

tives and leveraging its acquisitions to con-

sionaire in India.

Acquisitions and Joint ventures Crompton Greaves has completed the acquisition of the Belgium-based Pauwels

sistently deliver superior corporate perfor-

In 1937, CPL established, it’s wholly

on 13th May 2005. The group has manu-

mance. These have all come into play in

owned Indian subsidiary viz. Crompton

facturing facilities in Belgium, Ireland,

2007-08 with their Company achieving its

Parkinson Works Ltd., in Bombay, along

Canada, USA and Indonesia and well

best ever results in 71 years of its exist-

with a sales organization, Greaves Cotton

spread distribution network across the

ence.

& Crompton Parkinson Ltd., in collabora-

globe.

CG a conglomerate with an impressive

tion with GCC. In the year 1947, with the

global footprint is a part of the US$ 3 bil-

dawn of Indian independence, the com-

lion Avantha Group. Today, Crompton

pany was taken over by Lala Karamchand

Greaves is India’s largest private sector

Thapar, an eminent Indian industrialist.

enterprise. It has diversified extensively and is engaged in designing, manufactur-

Products and services

ing and marketing technologically ad-

The company is organized into three

vanced electrical products and services

business groups viz. Power Systems, In-

related to power generation, transmission

dustrial Systems, Consumer Products.

and distribution, besides executing turn-

Nearly, two-thirds of its turnover accrues

key projects.

from products lines in which it enjoys a

The company is customer-centric in its

leadership position.

focus and is the single largest source for a

Presently, the company is offering wide

wide variety of electrical equipments and

range of products such as power & indus-

products.

trial transformers, HT circuit breakers, LT

Gautam Thapar is Chairman, & CEO of India’s foremost diversified corporation, the Avantha Group. Over the decades, the organization has shown resilience and entrepreneurial spirit, and has continu-

& HT motors, DC motors, traction motors, alternators/ generators, railway signaling equipments, lighting product s, fans, pumps and public switching, transmission and access products.

ously reinvented itself without wavering

In addition to offering broad range of

from its core values of integrity and creat-

products, the company undertakes turn-

ing lasting value for its stakeholders.

key projects from concept to commission-

The strategy followed till today includes acquisitions and exceptional financial structuring to tap opportunities and fuel growth. With several international acquisitions, Crompton Greaves is fast emerging as a first choice global supplier for high quality electrical equipment.

History

ing. Apart from this, CG exports its products to more than 60 countries worldwide, which includes the emerging SouthEast Asian and Latin American markets. Thus, the company addresses all the segments of the power industr y from complex industrial solutions to basic household requirements. The fans and lighting businesses acquired “Superbrand” status in January

The history of Crompton Greaves goes

2004. It is a unique recognition amongst

back to 1878 when Col. R.E.B. Crompton

the countr y’s 134 selected brands by

founded R. E. B. Crompton & Company.

“Superbrands”, UK.

The company merged with F.A Parkinson in the year 1927 to form Crompton

61

Apart from strengthening it’s foothold in the Indian market, Crompton Greaves’ acquisition of the Pauwels Group and its transformer manufacturing facilities in five countries is expected to provide a significant impetus to the company’s international presence. Crompton Greaves have also successfully acquired Hungarian based Ganz (GT V), engaged in the manufacture of EHV Transformers, Switchgear, Gas Insulated Switchgear (GIS), Rotating Machines and

Contracting

businesses

and

Transverticum Kft (T V), engaged in the supporting areas of design, erection, commissioning and commercial activities on 17th October, 2006.. The acquisition of Microsol Holdings Limited (MHL) and its associate companies in May 2007 is yet another significant stride in CG’s journey towards positioning itself as a Global T&D Solutions Provider. MHL, based in Ireland with facilities in UK and USA, is engaged in the business of providing sub-station and distribution automation for the utility industry including MV and HV sub-stations, new sub-stations and retro-fitting solutions for existing sub-stations. The acquisition reinforces CG’s ability to design, build and service world-class substations, with state-of-the-art automation & high-end engineering. Crompton Greaves concluded an arrangement for the acquisition of Societe Nouvelle

de

Maintenance

de

Transformateurs (Sonomatra) of France in June 2008. Sonomatra provides on-site

JUNE - 2009


maintenance and repair of power transby delight. Similarly, Crompton helps elec-

formers and on-load tap changers, oil

tricity boards and other utilities to reach

analysis, oil treatment and retro filling.

electricity to the last home and factory.

Operations and servicing Networks

Therefore, every individual in India who uses electricity can be considered as Crompton customer.

CG’s business operations consist of 22 manufacturing divisions spread across in

Hence, the company continues to fur-

Gujarat, Maharashtra, Goa, Madhya

ther and consolidate the initiatives that Colonel Crompton set into mo-

Pradesh and Karnataka, supported by

tion by focusing on meeting in-

well knitted marketing and service

creasing customer demands

network through 14 branches in

for products that are eco-

various states under overall management of four regional sales

friendly, energy efficient

offices located in Delhi,

and with intelligent moni-

Kolkata,

Mumbai

toring and control sys-

and

tems. ❑

Chennai. The company has a large customer base, which includes State Electricity Boards, Government bodies and large companies in private and public sectors.

Performance Crompton Greaves’ profits have grown considerably in 2007-08, with a sizeable

Rs.4.1 billion, or US$ 101 million. Earnings

increase in profitability.

per share (EPS) on a fully diluted basis in-

During the year 2007-08 the operating EBIDTA grew by 54% to Rs.7.4 billion or US$ 185 million. Consequently, the ratio of operating EBIDTA to net sales increased

creased from R s.7.69 in 2006-07 to Rs.11.10 in 2007-08.

FORMER MANUFACTURING FACILITIES IN

Future outlook

FIVE COUNTRIES IS EXPECTED TO PROVIDE

by 230 basis points — from 8.6% in 2006-

The quality of households is enhanced

07 to 10.9% in 2007-08. Profits after tax

when their money is invested into prod-

(PAT), net of minority interests and share

ucts such as fans and lighting for basic

of associate companies grew by 44% to

comforts. Their lives are literally touched

Turnover

Rs.

APART FROM STRENGTHENING IT’S FOOTHOLD IN THE INDIAN MARKET, CROMPTON GREAVES’ ACQUISITION OF THE PAUWELS GROUP AND ITS TRANS-

PS

CP

IS

Consolidated

Millions

Sales

48237

11667

10793

71813

FY 2008

PBIT

4372

1208

1956

6853

A SIGNIFICANT IMPETUS TO THE COMPANY’S INTERNATIONAL PRESENCE.

CROMPTON GREAVES HAVE ALSO SUCCESSFULLY ACQUIRED HUNGARIAN BASED GANZ (GTV), ENGAGED IN THE MANUFACTURE OF EHV TRANSFORMERS, SWITCHGEAR, GAS INSULATED SWITCHGEAR (GIS),

(Inputs from company website)

62

JUNE - 2009


The Chocolatier Trivia: John Cadbury (12 August 1801 – 11 May 1889), was proprietor of a small chocolate business in Birmingham, England, that later became part of Cadbury plc, one of the world's largest chocolate producers.

CADBURY, THE GLOBAL CONFECTIONERY COMPANY WITH AN OUTSTANDING PORTFOLIO OF CHOCOLATE, GUM AND CANDY BRANDS BEGAN INDIA OPERATIONS IN 1948 BY IMPORTING CHOCOLATES. AFTER 60 YEARS OF EXISTENCE, IT TODAY HAS FIVE COMPANY-OWNED MANUFACTURING FACILITIES AND PEOPLE AROUND ARE JUST GOING LICK, YUM, AND MUNCH The core purpose of the company in In-

Its flagship brand Cadbury Dairy Milk is

dia is “creating brands people love” to

considered the "gold standard" for

capture the spirit of what they are trying

chocolates in India. The pure taste of CDM

Since 1965 Cadbury has also pioneered

to achieve as a business.

defines the chocolate taste for the Indian

the development of cocoa cultivation in

consumer.

India. For over t wo decades, it has

The company’s manufacturing units are at Thane, Induri (Pune) and Malanpur

gum brand Bubbaloo. Bubbaloo is sold in 25 countries worldwide.

worked with the Kerala Agriculture Univer-

(Gwalior), Bangalore and Baddi (Himachal

SINCE 1965 CADBURY HAS ALSO

sity to undertake cocoa research and re-

Pradesh) and 4 sales offices (New Delhi,

PIONEERED THE DEVELOPMENT OF

leased clones, hybrids that improve the

Mumbai, Kolkota and Chennai). The cor-

COCOA CULTIVATION IN INDIA. FOR

cocoa yield. Its Cocoa team visits farmers

porate office is in Mumbai. Currently

OVER TWO DECADES, IT HAS

and advises them on the cultivation as-

Cadbury India operates in four categories

WORKED WITH THE KERALA AGRICULTURE UNIVERSITY TO

pects from planting to harvesting. The

viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. Cur-

UNDERTAKE COCOA RESEARCH AND

& seminars to educate them on Cocoa cul-

rently Cadbury India operates in four cat-

RELEASED CLONES, HYBRIDS THAT

egories viz. Chocolate Confectionery, Milk

IMPROVE THE COCOA YIELD.

Food Drinks, Candy and Gum category. In

company also conduct farmers meetings tivation aspects. Its heritage starts back in 1824 when John Cadbury opened a shop in Birming-

the Chocolate Confectionery business,

In the Milk Food drinks segment its main

ham selling cocoa and chocolate. Since

Cadbury has maintained its undisputed

product is Bournvita - the leading Malted

then the company has expanded its busi-

leadership over the years. Some of the key

Food Drink (MFD) in the country.

ness throughout the world by a

brands are Cadbury Dairy Milk, 5 Star,

Similarly in the medicated candy cat-

Perk, Éclairs and Celebrations. Cadbury

egory Halls is the undisputed leader. It re-

enjoys a value market share of over 70% -

cently entered the gums category with the

the highest Cadbury brand share in the

launch of the worldwide dominant bubble

world!

63

programme of organic and acquisition led growth. ❑

(Inputs from company website)

JUNE - 2009


The Curer Trivia: Cipla is an acronym for Chemical, Industrial & Pharmaceutical Laboratories which Khwaja Abdul Hamied, the founder set-up in 1935

CIPLA, A PROMINENT PHARMACEUTICAL COMPANY, IS BEST-KNOWN OUTSIDE INDIA FOR PRODUCING LOW-COST ANTI-AIDS DRUGS FOR HIV-POSITIVE PATIENTS IN DEVELOPING COUNTRIES. IN 2007, CIPLA WAS THE WORLD'S LARGEST MANUFACTURER OF ANTIRETROVIRAL DRUGS (ARVS) TO FIGHT HIV/AIDS, AS MEASURED BY UNITS PRODUCED AND DISTRIBUTED. ROUGHLY 40% OF HIV/AIDS PATIENTS WERE UNDERGOING ANTIRETROVIRAL THERAPY WORLDWIDE TAKING CIPLA DRUGS. IT WAS RANKED THIRD IN GENERIC MARKET SHARE STATISTICS IN SOUTH AFRICAN PRIVATE SECTOR. Cipla is 2nd largest pharmaceutical

nutraceuticals & tonics, skin care prod-

cal Laboratories, which came to be popu-

company in India in terms of retail sales and

ucts, and oral hygiene products are also

larly known as Cipla. He gave the company

is best-known outside India for produc-

produced by the Company.

all his patent and proprietary formulae for

ing low-cost anti-AIDS drugs for HIV-posi-

Cipla manufactures a wide range of

several drugs and medicines, without

tive patients in developing countries. Its

flavours, which are used in foods and bev-

charging any royalty. On August 17, 1935,

products are distributed in more than 180

erages, fruit juices, baked goods, and oral

Cipla was registered as a public limited

countries worldwide.

hygiene products. Cipla fragrances have

company with an authorised capital of Rs

Cipla manufactures prescription phar-

wide ranging applications such as in per-

6 lakhs.

maceuticals such as anabolic steroids, an-

sonal care products, laundry detergents

Cipla was officially opened on Septem-

algesics/antipyretics,

antacids,

and room fresheners. That apart, they also

ber 22, 1937 when the first products were

anthelmintics, anti-arthritis, anti-inflam-

make pesticides. Apart from pharmaceu-

ready for the market. The Sunday Stan-

matory drugs, anti-TB drugs, anti-allergic

tical production, Cipla also offers techno-

dard wrote: “The birth of Cipla which was

drugs, anticancer drugs, antifungal, anti-

logical services such as Consulting, Project

launched into the world by Dr K A Hamied

malarials, antispasmodics, anti-ulcerants,

Management, Engineering and Quality

will be a red letter day in the annals of

immunosuppressants etc. Their animal

Control. Cipla reported a Total Operating

Bombay Industries. The first city in India

healthcare products include aqua prod-

Income Rs.5270.54 crore and Net Profit

can now boast of a concern, which will

ucts, equine products, poultry products,

Rs.767.83 crore for the year ending March

supersede all existing firms in the magni-

products for companion animals, and

2009.

tude of its operations...” ❑

products for livestock animals. Over the counter products like child care

History

products, eye care products, food supple-

In 1935, Khwaja Abdul Hamied, founded

ments, health drinks, life style products,

The Chemical, Industrial & Pharmaceuti-

64

(Inputs from company website)

JUNE - 2009


The Builder “What we are today comes from our thoughts of yesterday, and our present thoughts build our life of tomorrow: Our life is the creation of our mind.” - Buddha

DLF IS INDIA'S LARGEST REAL ESTATE COMPANY IN TERMS OF REVENUES, EARNINGS, MARKET CAPITALISATION AND DEVELOPABLE AREA. THE DOWNTURN HAS TAKEN ITS TOLL, BUT ITS A GROUP THAT WILL SURELY BOUNCE BACK. The DLF Group was founded in 1946.

base of customers by constantly upgrad-

With the growth of the Indian economy

The group developed some of the first

ing its internal skills and resource capabili-

and the resulting increase in corporate and

residential colonies in Delhi such as Krishna

ties.

consumer incomes, as well as foreign in-

Nagar in East Delhi, which was completed

DLF's office segment is one of the

vestment, DLF sees significant opportuni-

group's most admired verticals. Nearly 40

ties for growth in its three primary busi-

But as on date, this league runner;

msf of ongoing projects forms a strong

nesses.

India's largest real estate company, posted

portfolio for DLF offices, having reached

DLF's mission is to build a world-class

a staggering 92.69% fall in net profit at

a mature delivery platform of 11-12 msf

real estate development company with

Rs 159.05 crore for the quarter ended

on an annual basis. Current land resource

the highest standards of professionalism,

March 31, 2009 against Rs 2,176.82 crore

owned by DLF for development of offices

ethics and customer ser vice and to

for the corresponding quarter of the pre-

across the countr y is 164 msf approxi-

thereby contribute to and benefit from

vious year. Still, it is a group that will align

mately.

the growth of the Indian economy.

in 1949.

and awe.

With a booming retail environment on

The Homes business unit involves a wide

In line with its current expansion plans,

the horizon, this is a major thrust area for

range of products including condomini-

DLF has over 425 million sq. ft. of devel-

the Group and DLF is actively creating new

ums, duplexes, row hoses and apartments

opment across its businesses, including

shopping and entertainment spaces all

of varying sizes, with a focus on the higher

developed, on-going and planned

over the country.

end of the market.

projects. This land bank is spread over 32

The company has 12 mn sq. ft of retail

cities, mostly in metros and key urban ar-

DLF has 214 msf of developed area un-

projects under construction and owns

eas across India.

der homes and residential plots. Currently,

land resource of another 92 msf for de-

DLF has more than 477 msf of land re-

Already a major player in locations

velopment in metros and other key urban

source targeted towards residential busi-

across the country, DLF, with over six de-

destinations across the country. These in-

cades of experience, is capitalising on

clude categories of prime downtown

ness. ❑

emerging market opportunities to deliver

shopping districts, shopping centres and

high-end facilities and projects to its wide

super luxury malls, amongst others.

65

(Inputs from company website)

JUNE - 2009


The Highflier “With the offset opportunity and massive new programmes coming up, HAL must find ways and means to capture all these opportunities for a safe and secure future. We have made an impact in the international market and will now have to focus on our exports further to stay ahead in the race,” says Mr. Nayak, Chairman, HAL.

FLYING HIGH BEYOND THE SKIES, HINDUSTAN AERONAUTICS HAS CONTRIBUTED ITS INTELLECTUAL SKILLS AND TECHNICAL KNOWLEDGE TO INDIGENIZE AND EMPOWER NOT ONLY THE INDIAN AVIONICS BUT HAS ALSO OFFERED ITS SIGNIFICANT CONTRIBUTIONS TO DEVELOP THE SPACE COMPONENTS FOR INDIAN SPACE PROGRAMME BY PARTICIPATING IN THE MANUFACTURE OF STRUCTURES FOR

SATELLITE LAUNCH VEHICLES LIKE PSLV, GSLV, IRS AND INSAT.

66

JUNE - 2009


Hindustan Aeronautics Limited (HAL)

Indo-Russian Aviation Limited (IRAL),

Achievement in Quality and Efficiency at

traces its roots to the pioneering efforts

Snecma HAL Aerospace Pvt Ltd, SAMTEL

the International Summit (Global Rating

of an industrialist with extraordinary vision

HAL Display System Limited, HALBIT Avi-

Leaders 2003), London, UK by M/s Global

of late Seth Walchand Hirachand, who set

onics Pvt Ltd, HAL-Edgewood Technolo-

Rating and UK in conjunction with the In-

up Hindustan Aircraft Limited at Bangalore

gies Pvt Ltd and INFOTECH HAL Ltd.

ternational Information and Marketing

in association with the erstwhile princely State of Mysore in December 1940. The Government of India became a shareholder in March 1941 and took over the Management in 1942. The company came into its true exist-

Apart from these seven, other major diversification projects are Industrial Marine Gas Turbine and Airport Services.

Centre (IIMC). HAL was presented the International “ARCH OF EUROPE” Award in Gold Cat-

Several Co-production and Joint Ven-

egory in recognition for its commitment

tures with international participation are

to Quality, Leadership, Technology and

under consideration.

Innovation. At the National level, HAL won

ence on 1st October 1964 with the merger

the “GOLD TROPHY” for excellence in

of Hindustan Aircraft Limited with Aero-

Public Sector Management, instituted by

nautics India Limited and Aircraft Manu-

the Standing Conference of Public Enter-

facturing Depot, Kanpur. Today, HAL has 19 Production Units and 9 Research and Design Centers in 7 locations in India. The Company has an impressive product track record - 12 types of aircraft

HAL HAS PLAYED A SIGNIFICANT ROLE FOR INDIA’S SPACE PROGRAMS BY PARTICIPATING IN THE MANUFACTURE OF STRUCTURES FOR SATELLITE LAUNCH VEHICLES LIKE PSLV, GSLV, IRS AND INSAT

HAL has manufactured over 3550 aircraft, 3600 engines and overhauled over 8150 aircraft and 27300 engines. HAL has been successful in numerous R & D programs developed for both Defence and Civil Aviation sectors. HAL has made substantial progress in its current projects which includes, Dhruv, which is Advanced Light Helicopter (ALH), Tejas - Light Combat Aircraft (LCA), Intermediate Jet Trainer (IJT) and various other military and civil upgrades. HAL has played a significant role for India’s space programs by participating in the manufacture of structures for Satellite Launch Vehicles like PSLV (Polar Satellite Launch Vehicle), GSLV (Geo-synchronous Satellite Launch Vehicle), IRS (Indian Remote Satellite) and INSAT (Indian National Satellite).

Joint ventures HAL has formed Joint Ventures (JVs)

Hindustan Aeronautics Limited (HAL) strengthened its position as a leading aerospace export house when it handed Gulfstream (G-150) aircraft to Israel Air-

Achievements Hindustan Aeronautics Limited (HAL) has cruised past the Rs.10000 crore mark for the first time with a sales turnover of Rs.10260 crores during the Financial Year 2008-09. The profit of the Company (Profit before Tax) soared to Rs.2260 crores. HAL’s supplies / services are mainly to Indian Defence Ser vices, Coast Guards and Border Security Forces. Transport Aircraft and Helicopters have also been supplied to airlines as well as State Governments of India.

craft Industries (IAI). Gulfstream (G-150) is a business executive aircraft built in Israel and transported to the United States for further furnishing. The G-150 is marketed the world over by the US-based Gulfstream Corporation. Ready for more challenges the Aircraft Division has made a mark on the international export map over the years by supplying several types of door assemblies to Boeing, Airbus and other global firms. “With the G-150 fuselage delivery HAL has now entered a fairly advanced manufacturing level of building major structural assemblies for global players in the civil

The Company has also achieved a foot-

sector. The G-150 project augurs well not

hold in export in more than 30 countries,

only for HAL, but also for the national ob-

having demonstrated its quality and price

jective of producing a civil aircraft of in-

competitiveness. HAL has won several In-

ternational standards,” says Ashok Nayak

ternational & National Awards for achieve-

Chairman, HAL.❑

ments in R&D, Technology, Managerial Performance, Exports, Energy Conservation, Quality and Fulfillment of Social Responsibilities.

with 7 major international companies

HAL was awarded the “International

which include BAeHAL Software Limited,

Gold Medal Award” for Corporate

67

Recent developments

over the first rear fuselage for the

manufactured with in-house R & D and 14 types produced under license.

prises (SCOPE).

(Inputs from company website)

JUNE - 2009


The Petroleur Did you know?: HPCL came to being after merging four different organisations at different points of time.

HINDUSTAN PETROLEUM CORPORATION LIMITED (HPCL) IS A FORTUNE 500 COMPANY ENGAGED IN REFINING AND MARKETING OF PETROLEUM PRODUCTS IN INDIA WITH A TURNOVER EXCEEDING RS.1 ,04,000 CRORES DURING 200708. IT IS A MEGA PUBLIC SECTOR, SCHEDULE ‘A’ COMPANY WITH NAVARATNA STATUS. IT IS UNDER THE ADMINISTRATIVE CONTROL OF MINISTRY OF PETROLEUM AND NATURAL GAS WITH 51.11 % SHAREHOLDING BY THE GOVERNMENT OF INDIA.

68

JUNE - 2009


The erstwhile Oil Major, M/s Standard

products have also been continuously

took place increasing the crude process-

Vacuum Refining Company (StanVac) was

strengthened over the years,” says Arun

ing capacity from 1.25 MMTPA to 3.5

incorporated in India in the year 1952.

Balakrishnan, Chairman & Managing Di-

MMTPA. In 1985 Refinery undertook a low

StanVac operation was taken over by ESSO

rector, HPCL.

cost expansion of Fuels Refinery wherein

Standard Refining Company of India Ltd.,

HPCL in collaboration with MIs Mittal

a new crude distillation unit and vacuum

(ESRC) in the year 1962 with a refining ca-

Energy Investments Pte. Ltd., is also set-

distillation unit were installed with crude

pacity of 1.25 MMTPA at Mumbai. Subse-

ting up a state of the art 9 Million Tonnes

processing capacity of 2.0 MMTPA and

quently, the capacity was expanded to 3.5

capacity Green Field Refinery at Bathinda

thus reached the refining capacity of 5.5

MMTPA in the year 1969. Lube India Ltd.,

in Punjab at an estimated cost of Rs. 18000

MMTPA. The Refinery has the flexibility to

had also set up a Lube Refinery at Mumbai

Crores. The project is progressing as

process heavy lube bearing high sulphur

with a capacity of 165 TMTPA. HPCL was

scheduled and is expected to be mechani-

as well as non-lube bearing low sulphur

formed through the take over of erstwhile

cally completed by December 2010.

crudes of various types. In 1995-96, pneu-

ESRC and merger with Lube India Ltd., during the year 1974.

During the year 2008-09, the Refineries have processed combined crude

Caltex Oil Company, incorporated in the

throughput of 15.8 MMT with a capacity

year 1955, had set up a Refiner y at

utilization of 129%. HPCL achieved high-

Visakhapatnam in the year 1957 with a

est ever market sales of 23.85 MMT in the

capacity of 0.675 MMTPA which was later

domestic market during 2008-09. The

on expanded to 1.5 MMTPA. Caltex Oil

matic control system was replaced with latest microprocessor based digital control system to increase the productivity and safety of the Refinery. It is the first Indian Refiner y to implement complete offsite automation in the year 2000.

Corporation achieved a market growth of

Lube Refiner y was commissioned in

Company was also taken over by GOI and

7.6% against industry growth of 3.9%

1969 as a joint venture between Esso and

merged with HPCL during the year 1978.

and the market share improved by 0.62%

Government of India with a capacity of

Kosangas Company Ltd., engaged in LPG

on total industry basis. HPCL also achieved

1,65,000 TPA of LOBS. As the demand for

Bottling & Distribution business was also

highest ever pipeline throughput of 10.64

lube oil base stocks/middle distillate grew,

merged with HPCL during 1979.

MMT during 2008-09.

a second Vacuum Distillation Unit was

The Corporation over the years has

“Consistent excellent performance has

strengthened its capabilities on all fronts.

been achieved by highly motivated

“Our refining throughput has increased

workforce deployed all across the Coun-

three fold, rising from 5 MMTPA in 1984-

try. HPCL continually invests in innovative

85 to 16.77 MMTPA by 2007-08. HPCL also

technologies to enhance the effectiveness

owns the largest Lube Refiner y in the

of employees and bring qualitative

country at Mumbai for producing Lube Oil

changes in service. Business Process Re-

Base Stocks with a capacity of 335,000

Engineering exercise, creation of Strategic

Metric Tonnes. This Lube Refiner y ac-

Business Units, ERP implementation, Orga-

counts for over 40% of the country’s Lube

nizational Transformation, Balanced Score

Oil Base stock production. Both the Refin-

Card,

eries have complex configuration with a

benchmarking of Refineries and Terminals

capability to produce wide variety of pe-

for product specifications, ISO certifica-

troleum products - fuels, lubricants and

tion of Refineries and Supply Chain Man-

specialty products. Both the Refineries are

agement are some of the initiatives which

capable to process wide range of Crudes

enabled HPCL to improve its efficiency and

encompassing high sulphur Crudes and

achieve excellent performance in all areas

opportunity Crudes. HPCL has cross coun-

of operations,” says Balakrishnan.

try pipeline network of around 2500 KM length for transportation of petroleum products. HPCL also owns and operates over 8,500 Retail Outlets spread across the country. The supply and distribution infrastructure for marketing of petroleum

69

Competenc y

commissioned. In the year 1983, Lube Refinery Units were debottlenecked and capacity increased to 2,25,000 TPA. Lube Oil Base Stocks production got a fillip with the commissioning of Lube Refinery Expansion stage two in 1994-95 by adding a

Mapping,

Mumbai Refinery was commissioned in 1954 as a Fuels Refinery block with crude processing capacity of 1.25 MMTPA. In 1969, the first expansion of the crude distillation unit and vacuum distillation unit

ARUN BALAKRISHNAN, CMD, HPCL

JUNE - 2009


propane

envisages to achieve at least an annual

lets at strategic locations, format and dif-

deasphalting unit and NMP extraction unit.

average growth rate of 5% during the

ferentiated customer offerings in Urban,

The old extraction units were modified to

next 5 years. Hence it is expected that the

Highway and Rural markets across the

use an eco-friendly solvent NMP instead

market sales volume would reach about

country.

of toxic Phenol, which was being used

31 MMT by the year 2015. Currently our

However, expansion of retail network

previously. After this expansion the capac-

crude processing capacity is about 17

will be carried out judiciously in future to

ity of Lube Refinery increased to 3,35,000

MMT while the sale is 23.85 MMT. The gap

ensure viable operation and avoid canni-

TPA of LOBS which is the largest in India

is being bridged by sourcing products

balization of the existing network.

even today.

from other Indian Refineries and through

new

hydrogen

plant,

During the year 2008-09, the Refiner-

imports.

The vision for retailing business is to become the most preferred brand in the

ies have processed combined crude

“HPCL is setting up a 9 MMTPA capac-

country leading to sustained growth and

throughput of 15.8 MMT with a capacity

ity Refinery at Bathinda in Punjab in col-

improving market share. HPCL is also fo-

utilization of 129%.

laboration with Mittal Investments Pte Ltd.

cusing on improving the capability of deal-

HPCL achieved highest ever market sales

The Refinery has been designed to pro-

ers through imparting them training

of 23.85 MMT in the domestic market

cess high sulphur & heavy crudes and also

programme.

during 2008-09.

produce value added product s viz

The Corporation achieved a market growth of 7.6% against industry growth of 3.9% and the market share improved by 0.62% on total industry basis. HPCL also achieved highest ever pipeline throughput of 10.64 MMT during 200809. Consistent excellent performance has been achieved by highly motivated workforce deployed all across the Country. HPCL continually invests in innovative technologies to enhance the effectiveness of employees and bring qualitative changes in service. Business Process Re-Engineering exercise, creation of Strategic Business Units, ERP implementation, Organizational Transformation, Balanced Score Card, Competency Mapping, benchmarking of Refin-

Polypropylene. The project is progressing as scheduled and the refinery is expected to be commissioned by the last quarter of 2010-11. Low cost revamping projects are also being planned to enhance crude processing capacity at MR & VR from the current level of 17 MMT to 20 MMT I year by 2011-12,” said Balakrishnan. Subsequent to commissioning of aforesaid Greenfield I Brownfield projects, HPCL will be able to bridge the gap between supply and demand of POL products. This would help in further improving the profitability of the company. Commensurate to the growth in sales volume projected for the year 2015, distribution facilities and marketing network are also planned to be augmented.

HPCL is conscious of the increasing importance of alternate auto fuels like CNG and Auto LPG and has already set up storage and dispensing facilities across the country to tap this business. HPCL has forayed into E&P business and has taken initiatives to secure equity oil and gas. “HPCL intends to get into city and commercial gas distribution. HPCL has already set up 1 Mother Station and 15 daughter stations for marketing and distribution of natural gas in Gujarat. HPCL along with GAIL (India) Ltd has also set up JVCs for city gas and commercial gas distribution in the State of Andhra Pradesh and Madhya Pradesh. HPCL has acquired two sugar mills in Bihar for production of Ethanol with sugarcane as feedstock. Detailed feasibility study for setting up sugar cum

eries and Terminals for product specifica-

HPCL is also setting up a FCCU project

ethanol manufacturing unit of 3500

tions, ISO certification of Refineries and

of 1.45 MMTPA capacity at MR. In addi-

tonnes capacity per day has been com-

Supply Chain Management are some of

tion, a LOBS project is also currently un-

pleted and further actions are being taken

the initiatives which enabled HPCL to im-

der implementation to produce 210 TMT

for implementing the project. HPCL has

prove its efficiency and achieve excellent

lube base stocks conforming to Group II/

joined with M/s. Sree Renuka Sugars Ltd.

performance in all areas of operations.

Group III. These projects are expected to

for setting up an Ethanol Plant in the south

be completed by early 2010.

of Maharashtra. The plant would be op-

Future Plans

Petroleum retailing is the core business

erated on the Brazilian mode of produc-

HPCL’s gross sale during 2008-09 was

of HPCL and will continue to play a domi-

tion, i.e., more of Ethanol and less of

23.85 MMT. The industry growth during

nant role in their domestic marketing in

sugar, rather than maximizing sugar pro-

2008-09 was 3.9%. Taking into account

the near future too. HPCL will pursue its

duction,” said Balakrishnan. ❑

the present economic conditions, HPCL

retail strategy of positioning its retail out(Inputs from company website)

70

JUNE - 2009


71

JUNE - 2009


The Overlayer When the tiles you walk are made, Look down…for you walk on art…not material - Anonymous

ESTABLISHED IN THE YEAR 1958, H. & R. JOHNSON (INDIA) LIMITED IS INDIA’S LEADING TILE, BATHROOM AND KITCHEN SOLUTIONS PROVIDER, OFFERING A WIDE RANGE OF PRODUCTS VIZ. WALL TILES, FLOOR TILES, VITRIFIED TILES, EXTERIOR AND INDUSTRIAL TILES, PREMIUM SANITARYWARE, BATHROOM ACCESSORIES AND MODULAR KITCHENS. H & R Johnson (India) Ltd. is a part of

state-of-the-art machiner y from world

the Rajan Raheja Group, one of India’s

leaders. All our own plants are compliant

leading business conglomerates with di-

with ISO 9001 and 14001 and OHSAS

industrial floorings marketed under

verse interests. Currently, celebrating its

18001 certified for excellence in safety

Endura

50th anniversary, the company has a vast

standards.

portfolio of strong brands comprising Johnson, Marbonite, Endura and Johnson

Innovations

India’s first water-repellent tiles

Pioneered acid / alkali resistant tiles for

Distribution The company’s robust distribution net-

Ceramics International. Johnson brand

The company has always been recog-

work comprises 25 depots, 1,200 dealers,

offers glazed floor and wall tiles, laminate

nized for its pioneering efforts and is

and over 12,000 sub-dealers. The head

and engineered wood flooring, kitchens,

known as an innovator in the industry.

office of the company is located in

Sanitaryware, Bathroom Accessories and

Some of its path-breaking innovations that

Mumbai and there are 26 branches across

Bath Fittings. The offerings of Marbonite

became industry norms later are: –

the country. The company has installed

brand include a complete range of vitri-

fied tiles. Endura brand offers industrial and specialized tiles. Johnson Ceramics In-

fied tiles ●

ternational is the latest brand of the ●

72

Specially designed tiles for kitchen floors and walls

Dewas, Pen, Kunigal, Karaikal, Vijaywada, Rajkot and Baddi. These units employ

Anti-skid Tiles, for bathrooms and wet areas

spread across strategic locations in India. The manufacturing facilities are located in

India’s first vitrified wall tiles under Marbonite Wonderwall brand

The company has a combination of own manufacturing plants and Joint Ventures

Vitrified tile as slabs in large formats under the Marbonite brand

comany offering exclusive, premium and imported tiles and sanitaryware.

Launch of Marbonite, India’s No. 1 vitri-

Large format joint-free tiles

all the major modules of SAP R/3 to manage the business activities effectively.

Performance For the financial year 2008-09, the company recorded gross sales revenue of Rs. 1106 crores with a sales volume of 37 million m2. During the last 10 years, the company’s sale has grown at a CAGR of 17%. The company has set itself a target of crossing Rs. 3000 crores sales turnover by 2013. ❑ JUNE - 2009


The Innovator “Beauty isn't worth thinking about; what's important is your mind. You don't want a fifty-dollar haircut on a fifty-cent head.” Garrison Keillor

INDIAN OVERSEAS BANK IS A PIONEER IN BANKING, INSURANCE AND INDUSTRY WITH A SPECIALISATION IN FOREIGN EXCHANGE BUSINESS AND OVERSEAS BANKING; WITH BRANCHES IN SEOUL, BANGKOK, SINGAPORE AND COLOMBO, IOB IS TRULY INDIA’S OVERSEAS BANK. IOB had the unique distinction of com-

foreign exchange business and overseas

and the Bank opened a Foreign Currency

mencing business on 10th February 1937

banking. At the dawn of Independence

Banking Unit in the free trade zone in Co-

(on the inaugural day it self) in three

IOB had 38 branches in India and 7

lombo in 1979.

branches simultaneously - at Karaikudi and

branches abroad; Deposit s stood at

The Bank setup a separate Computer

Chennai in India and Rangoon in Burma

Rs.6.64 crore and Advances at Rs.3.23

Policy and Planning Department (CPPD) to

(presently Myanmar) followed by a branch

crore at that time.

implement

in Penang.

the

programme

of

During the pre-nationalisation period,

computerisation, to develop software

Indian Overseas Bank reported a

IOB expanded its domestic activities and

packages on its own and to impart train-

10.27% year-on-year increase in its net

enlarged its international banking opera-

ing to staff members in this field.

profit, which rose to Rs.1325.79 crore for

tions. As early as in 1957, the Bank estab-

IOB had the distinction of being the first

the year ended 31 March 09 compared to

lished a training centre which has now

Bank in Banking Industry to obtain ISO

Rs.1202.34 crore in the previous year. For

grown into a Staff College at Chennai with

9001 Certification for its Computer Policy

the fourth quarter ended 31 March 09,

9 training centres all over the country.

and Planning Department from Det

IOB reported a 5.37% growth in net profit

In 1964, the Bank made a beginning in

Norske Veritas (DNV), Netherlands in Sep-

at Rs.322.37 crore from Rs.305.95 crore.

computerisation in the areas of inter-

tember 1999. This Certification covers

Total income was up 27.03% at Rs.3135.02

branch reconciliation and provident fund

Design, Development, Implementation

crore from Rs.2467.95 crore.

accounts. In 1968, IOB established a full-

and Maintenance of software developed

History

fledged department to cater exclusively to

in-house, procurement and supply of

the needs of the Agriculture sector.

hardware and execution of turnkey

Indian Overseas Bank (IOB) was founded on February 10th 1937, by Shri.M.Ct.M. Chidambaram Chettyar, a pioneer in many fields - Banking, Insurance and Industry with the twin objectives of specialising in

On the eve of the Nationalisation of

projects. A Voluntary Retirement Scheme

banks in 1969, IOB had 195 branches in

was introduced in the Bank on the lines of

India with aggregate deposits of Rs. 67.70

IBA package with Boards approval. The

crore and Advances of Rs. 44.90 crore.

scheme was offered to Officers/Employ-

In 1977, IOB opened its branch in Seoul

73

ees from December 15, 2000. ❑ (Inputs from company website)

JUNE - 2009


The Diversifier “Diversity is the one true thing we all have in common. Celebrate it every day.”

ITC WAS THE FIRST COMPANY IN INDIA TO VOLUNTARILY SEEK A CORPORATE GOVERNANCE RATING.ITC’S DIVERSIFIED STATUS ORIGINATES FROM ITS CORPORATE STRATEGY AIMED AT CREATING MULTIPLE DRIVERS OF GROWTH ANCHORED ON ITS TIME-TESTED CORE COMPETENCIES: UNMATCHED DISTRIBUTION REACH, SUPERIOR BRAND-BUILDING CAPABILITIES, EFFECTIVE SUPPLY CHAIN MANAGEMENT AND ACKNOWLEDGED SERVICE SKILLS IN HOTELIERING.

74

JUNE - 2009


Over time, the strategic forays into new

plot of land situated at 37, Chowringhee,

the Cigarettes and Leaf Tobacco busi-

businesses are expected to garner a sig-

(now renamed J.L. Nehru Road) Kolkata,

nesses, the Seventies witnessed the be-

nificant share of these emerging high-

for the sum of Rs.310,000. This decision

ginnings of a corporate transformation

growth markets in India.

of the Company was historic in more ways

that would usher in momentous changes

than one.

in the life of the Company.

ITC is one of India’s foremost private sector companies with a market

It was to mark the beginning of a long

ITC’s Packaging & Printing Business was

capitalisation of nearly US $ 19 billion and

and eventful journey into India’s future.

set up in 1925 as a strategic backward in-

a turnover of over US $ 5.1 Billion.

The Company’s headquarter building, ‘Vir-

tegration for ITC’s Cigarettes business. It

ITC is rated among the World’s Best Big

ginia House’, which came up on that plot

is today India’s most sophisticated pack-

Companies, A sia’s ‘Fab 50’ and the

of land two years later, would go on to

aging house.

World’s Most Reputable Companies by

become one of Kolkata’s most venerated

Forbes magazine.

landmarks.

In 1975 the Company launched its Hotels business with the acquisition of a ho-

As one of India’s most valuable and re-

The Company’s ownership progres-

tel in Chennai which was rechristened

spected corporations, ITC is widely per-

sively Indianised, and the name of the

‘ITC-Welcomgroup Hotel Chola’. The ob-

ceived to be dedicatedly nation-oriented.

Company was changed to I.T.C. Limited

jective of ITC’s entry into the hotels busi-

Chairman Y C Deveshwar calls this source

in 1974. In recognition of the Company’s

ness was rooted in the concept of creat-

of inspiration “a commitment beyond the

multi-business portfolio encompassing a

ing value for the nation.

market”.

wide range of businesses - Cigarettes &

In his own words: “ITC believes that its aspiration to create enduring value for the

ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and

“ITC BELIEVES THAT ITS ASPIRATION

generate large scale direct and indirect

tain growing shareholder value. ITC prac-

TO CREATE ENDURING VALUE FOR THE

employment. Since then ITC’s Hotels busi-

tices this philosophy by not only driving

NATION PROVIDES THE MOTIVE FORCE

ness has grown to occupy a position of

TO SUSTAIN GROWING SHAREHOLDER

leadership, with over 100 owned and

tional competitiveness but by also con-

VALUE.

ITC PRACTICES THIS PHILOSO-

managed properties spread across India.

sciously contributing to enhancing the

PHY BY NOT ONLY DRIVING EACH OF

ITC’s production facilities and hotels

competitiveness of the larger value chain

ITS BUSINESSES TOWARDS INTERNA-

have won numerous national and interna-

TIONAL COMPETITIVENESS BUT BY ALSO

tional awards for quality, productivity,

nation provides the motive force to sus-

each of its businesses towards interna-

of which it is a part.”

CONSCIOUSLY CONTRIBUTING TO

safety and environment management sys-

2009, net turnover at Rs.15,388 crore was

ENHANCING THE COMPETITIVENESS OF

tems. ITC employs over 25,000 people at

10.3 per cent higher than the previous

THE LARGER VALUE CHAIN OF WHICH IT

more than 60 locations across India.

For the entire year ending March 31,

year’s Rs.13,947.53 crore, driven mainly by

IS A PART.”

- CHAIRMAN Y C

DEVESHWAR

a robust 20 per cent growth in non-cigarette FMCG business.

The Company continuously endeavours to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 3,64,000

The net profit stood at Rs.3,324 crore against Rs.3,157.76 crore in 2007-08.

Tobacco, Hotels, Information Technology,

History

Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retail-

shareholders, fulfil the aspirations of its stakeholders and meet societal expectations.

ITC was incorporated on August 24,

ing and Greeting Gifting & Stationery - the

This over-arching vision of the company

1910 under the name of ‘Imperial Tobacco

full stops in the Company’s name were

is expressively captured in its corporate

Company of India Limited’. Its beginnings

removed effective September 18, 2001.

positioning statement: “Enduring Value.

were humble. A leased office on Radha

The Company now stands rechristened

For the nation. For the Shareholder.” ❑

Bazar Lane, Kolkata, was the centre of the

‘ITC Limited’.

Company’s existence.

Though the first six decades of the

The Company celebrated its 16th birth-

Company’s existence were primarily de-

day on August 24, 1926, by purchasing the

voted to the growth and consolidation of (Inputs from company website)

75

JUNE - 2009


The Financier ICICI Bank is India’s second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31, 2009.

ICICI BECAME THE FIRST INDIAN COMPANY AND THE FIRST BANK OR FINANCIAL INSTITUTION FROM NON-JAPAN ASIA TO BE LISTED ON THE NYSE. IN 2008, THE US FEDERAL RESERVE PERMITTED ICICI TO CONVERT ITS REPRESENTATIVE OFFICE IN NEW YORK INTO A BRANCH; THE BANK ALSO ESTABLISHED A BRANCH IN FRANKFURT, GERMANY.

76

JUNE - 2009


The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of the World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. A.Ramaswami Mudaliar was elected as the first Chairman of ICICI Limited.

History ICICI was formed in 1955 at the initiative of the World Bank, the Government of InICICI Bank was originally promoted in 1994

ICICI shareholders through the merged

by ICICI Limited, an Indian financial insti-

entity’s access to low-cost deposit s,

tution, and was its wholly-owned subsid-

greater opportunities for earning fee-

iary.

based income and the ability to participate

ICICI’s shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an eq-

with total assets of Rs. 3,793.01 billion

the NYSE in fiscal 2000, ICICI Bank’s ac-

(US$ 75 billion) at March 31, 2009 and

quisition of Bank of Madura Limited in an

profit after tax Rs. 37.58 billion for the year

all-stock amalgamation in fiscal 2001, and

ended March 31, 2009.

secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal

ing products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and nonlife insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. ICICI Bank’s equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositar y Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). The bank reported Profit after tax for FY2009 at Rs. 3,758 crore compared to Rs. 4,158 crore for FY2008 and the Net interest income increased 15% from Rs. 7,304 crore for FY2008 to Rs. 8,367 crore for FY2009.

77

in the payments system and provide transaction-banking services. The merger would also enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI’s strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast

branches and about 4,721 ATMs in India ICICI Bank offers a wide range of bank-

group’s universal banking strategy. The merger would enhance value for

uity offering in the form of ADRs listed on

and presence in 18 countries.

the optimal legal structure for the ICICI

dia and representatives of Indian industry.

ICICI Bank is India’s second-largest bank

The Bank has a net work of 1,4 43

native for both entities, and would create

“WE WILL SET UP 580 NEW BRANCHES THIS YEAR ... ONE AND HALF YEARS AGO WE HAD 750

talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the

BRANCHES AND ONE YEAR FROM NOW,

merger of ICICI and two of its wholly-

580 BRANCHES, WE WILL HAVE 2,000 BRANCHES,” ICICI BANK MANAGING DIRECTOR AND CEO CHANDA KOCHHAR SAID.

owned retail finance subsidiaries, ICICI Per-

ONCE WE OPEN THESE

sonal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at

2002. In the 1990s, ICICI transformed its

Ahmedabad in March 2002, and by the

business from a development financial in-

High Court of Judicature at Mumbai and

stitution offering only project finance to a

the Reserve Bank of India in April 2002.

diversified financial services group offer-

Consequent to the merger, the ICICI

ing a wide variety of products and ser-

group’s financing and banking operations,

vices, both directly and through a number

both wholesale and retail, have been in-

of subsidiaries and affiliates like ICICI Bank.

tegrated in a single entity.

In 1999, ICICI become the first Indian

ICICI plans on expanding its network

company and the first bank or financial in-

across the nation. “We will set up 580 new

stitution from non-Japan Asia to be listed

branches this year ... one and half years

on the NYSE.

ago we had 750 branches and one year

After consideration of various corporate

from now, once we open these 580

structuring alternatives in the context of

branches, we will have 2,000 branches,”

the emerging competitive scenario in the

ICICI Bank Managing Director and CEO

Indian banking industry, and the move

Chanda Kochhar said. ❑

towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alter-

(Inputs from company website)

JUNE - 2009


The Fuelfiller “The use of solar energy has not been opened up because the oil industry does not own the sun.”— Ralph Nader.

INDIAN OIL IS ALSO THE HIGHEST RANKED INDIAN COMPANY IN THE PRESTIGIOUS FORTUNE ‘GLOBAL 500’ LISTING, HAVING MOVED UP 19 PLACES TO THE 116TH POSITION IN 2008. IT IS ALSO THE 18TH LARGEST PETROLEUM COMPANY IN THE WORLD. INDIAN OIL’S VISION IS DRIVEN BY A GROUP OF DYNAMIC LEADERS WHO HAVE MADE IT A NAME TO RECKON WITH.

78

JUNE - 2009


Indian Oil Corporation Ltd. (Indian Oil) is India’s largest commercial enterprise, with a sales turnover of Rs. 2,47,479 crore (US $ 61.70 billion) and profits of Rs. 6,963

upgradation as well as in integration and

vestment by the year 2011-12. A world-

diversification projects.

scale Parax ylene/Purified Terephthalic

Networks and Operations

Acid plant (annual capacities: PX 3,63,000 tonnes, PTA – 5,53,000 tonnes)

As the flagship national oil company in

for polyester intermediates is already in

the downstream sector, Indian Oil reaches

operation at Panipat, while a Naphtha

Indian Oil is also the highest ranked In-

precious petroleum products to millions of

Cracker with a capacity of 800,000 tonnes

dian company in the prestigious Fortune

people everyday through a countrywide

of ethylene per annum, equipped with

‘Global 500’ listing, having moved up 19

network of about 35,000 sales points.

downstream polymer units is also coming

places to the 116th position in 2008. It is

They are backed for supplies by 166 bulk

up at Panipat.

also the 18th largest petroleum company

storage terminals and depots, 101 aviation

A refinery-cum-petrochemicals com-

in the world.

fuel stations and 89 Indane (LPGas) bot-

plex at Paradip, to be completed by the

tling plants.

year 2011-12, will strengthen the

crore (US $ 1.74 billion) for the year 200708.

Achievements

About 7,100 bulk consumer pumps are

Corporation’s presence in the sector.

Beginning in 1959 as Indian Oil Company

also in operation for the convenience of

In E&P, IndianOil has bagged eight oil &

Ltd., Indian Oil Corporation Ltd. was

large consumers, ensuring products and

gas blocks and two Coal Bed Methane

formed in 1964 with the merger of Indian

inventory at their doorstep.

blocks under NELP (New Exploration Li-

Refineries Ltd. (established 1958). Indian Oil and its subsidiaries account for 49% petroleum products market share,

Indian Oil operates the largest and the widest network of petrol & diesel stations

cencing Policy) in India, in consortium with other companies.

in the country, numbering over 17,600.

It has also acquired participating inter-

34% national refining capacity and 71%

It reaches Indane cooking gas to the

downstream sector pipelines capacity in

doorsteps of over 50 million households

India.

in nearly 2,700 markets through a net-

Overseas ventures of the Corporation

work of about 5,000 Indane distributors.

include two blocks in Sirte Basin and Ar-

group sold 59.29 million tonnes of petro-

Indian Oil’s ISO-9002 certified Aviation

eas 95/96 in Ghadames basin of Libya, Farsi

leum products, including 1.74 million

Ser vice commands over 62% market

Exploration Block in Iran, onshore farm-in

tonnes of natural gas, and exported 3.33

share in aviation fuel business, meeting

arrangements in Gabon, an inland block

million tonnes of petroleum products.

the fuel needs of domestic and interna-

in Nigeria and t wo onshore blocks in

tional flag carriers, private airlines and the

Yemen.

For the year 2007-08, the Indian Oil

The Indian Oil Group of companies owns and operates 10 of India’s 20 refineries

The Corporation also enjoys a dominant

million metric tonnes per annum (MMTPA,

share of the bulk consumer business, in-

.i.e. 1.2 million barrels per day). These in-

cluding that of railways, state transport

clude two refineries of subsidiary Chennai

undertakings, and industrial, agricultural

Petroleum Corporation Ltd. (CPCL).

and marine sectors.

work of crude oil and product pipelines,

Arunachal Pradesh.

Indian Defense Services.

with a combined refining capacity of 60.2

The Corporation’s cross-country net-

est in two onshore blocks in Assam and

Widening Horizons

In natural gas business, IndianOil is targeting sale of 2 million tonnes in 2008-09. ❑

INDIANOIL IS INVESTING RS. 43,393 CRORE DURING THE PERIOD 2007-12 IN AUGMENTATION OF REFINING AND PIPELINE CAPACITIES, EXPANSION OF MARKETING INFRASTRUCTURE AND

spanning more than 10,000 kms and the

To achieve the next level of growth,

largest in the country, meets the vital en-

IndianOil is currently forging ahead on a

WELL AS IN INTEGRATION AND

ergy needs of the consumers in an effi-

well laid-out road map through vertical

DIVERSIFICATION PROJECTS.AS THE

cient, economical and environment-

integration- upstream into oil exploration

friendly manner.

& production (E&P) and downstream into

IndianOil is investing Rs. 43,393 crore

petrochemicals - and diversification into

(US $10.8 billion) during the period 2007-

natural gas marketing, besides globaliza-

12 in augmentation of refining and pipe-

tion of its downstream operations.

line capacities, expansion of marketing

In petrochemicals, IndianOil is envisag-

infrastructure and product quality

ing Rs. 30,000 crore (US$ 7.4 billion) in-

79

PRODUCT QUALITY UPGRADATION AS

FLAGSHIP NATIONAL OIL COMPANY IN THE DOWNSTREAM SECTOR, INDIAN OIL REACHES PRECIOUS PETROLEUM PRODUCTS TO MILLIONS OF PEOPLE EVERYDAY THROUGH A COUNTRYWIDE NETWORK OF ABOUT POINTS.

35,000 SALES

(Inputs from company website)

JUNE - 2009


The Constructor At times I build dreams, sometimes, I do build reality, and they often live a life

ALL THAT LARSEN AND TOUBRO HAD WAS A DREAM AND THE COURAGE TO THEIR FIRST OFFICE IN MUMBAI WAS SO SMALL THAT ONLY ONE OF THE PARTNERS COULD USE THE OFFICE AT A TIME! DARE.

80

JUNE - 2009


Larsen & Toubro Limited (L&T) is a tech-

In 1944, ECC was incorporated. Around

Plant. With the successful completion of

nology, engineering, construction and

then, L&T decided to build a portfolio of

these jobs, L&T emerged as the largest

manufacturing company. It is one of the

foreign collaborations.

erection contractor in the countr y. In

largest and most respected companies in

By 1945, the Company represented Brit-

1956, a major part of the company’s

India’s private sector. Seven decades of a

ish manufacturers of equipment used to

Bombay office moved to ICI House in

strong, customer-focused approach and

manufacture products such as hydroge-

Ballard Estate.

the continuous quest for world-class qual-

nated oils, biscuits, soaps and glass.

In

A decade later this imposing grey-stone

ity have enabled it to attain and sustain

1945, L&T signed an agreement with Cat-

building was purchased by L&T, and re-

leadership in all its major lines of business.

erpillar Tractor Company, USA, for market-

named as L&T House - its Corporate Of-

ing earthmoving equipment.

fice. The sixties saw a significant change

L&T has an international presence, with a global spread of offices. A thrust on in-

At the end of the war, large numbers of

at L&T - S. K. Toubro retired from active

ternational business has seen overseas

war-surplus Caterpillar equipment were

management in 1962. The sixties were

earnings grow significantly. It continues to

available at attractive prices, but the fi-

also a decade of rapid grow th for the

grow its overseas manufacturing foot-

nances required were beyond the capac-

company, and witnessed the formation of

print, with facilities in China and the Gulf

ity of the partners. This prompted them

many new ventures: UTMAL (set up in

region.

to raise additional equity capital, and on

1960), Audco India Limited (1961), Eutec-

7th February 1946, Larsen & Toubro Pri-

tic Welding Alloys (1962) and TENGL

vate Limited was born.

(1963).

The firm also plans to spend up to Rs.2,000 crore on defence related businesses alone over the next three years as

By 1964, L&T had widened its capabili-

it plans to restructure operations further

TODAY, L&T IS ONE OF INDIA’S

ties to include some of the best technolo-

by creating one operating company each

BIGGEST AND BEST KNOWN INDUS-

gies in the world. In the decade that fol-

for defence, aerospace and nuclear power

TRIAL ORGANISATIONS WITH A

lowed, the company grew rapidly, and by

REPUTATION FOR TECHNOLOGICAL

1973 had become one of the Top-25 In-

businesses. “We are getting the blueprint for our

EXCELLENCE, HIGH QUALITY OF

dian companies.

Vision 2015 ready. If everything goes right,

PRODUCTS AND SERVICES, AND

we will create three operating companies

STRONG CUSTOMER ORIENTATION. IT IS

Magsaysay Award for International Under-

to look after defence, aerospace and

ALSO TAKING STEPS TO GROW ITS

standing in recognition of his contribution

nuclear power sectors for effective opera-

INTERNATIONAL PRESENCE.

to India’s industrial development. He re-

tions. This may happen in 2012-13,” L&T

In 1976, Holck-Larsen was awarded the

tired as Chairman in 1978. Independence and the subsequent de-

In the decades that followed, the com-

mand for technology and expertise of-

pany grew into an engineering major un-

fered L&T the opportunity to consolidate

der the guidance of leaders like N. M.

and expand. Offices were set up in Kolkata

Desai, U. V. Rao, S. D. Kulkarni and A. M.

The evolution of L&T into the country’s

(Calcutta), Chennai (Madras) and New

Naik.

largest engineering and construction or-

Delhi. In 1948, fifty-five acres of undevel-

ganization is among the most remarkable

oped marsh and jungle was acquired in

success stories in Indian industry.

Powai.

Chairman and Managing Director A.M Naik said.

History

Today, L&T is one of India’s biggest and best known industrial organisations with a reputation for technological excellence,

L&T was founded in Bombay (Mumbai)

Today, Powai stands as a tribute to the

high quality of products and services, and

in 1938 by two Danish engineers, Henning

vision of the men who transformed this

strong customer orientation. It is also tak-

Holck-Larsen and Soren Kristian Toubro.

uninhabitable swamp into a manufactur-

ing steps to grow its international pres-

Both of them were strongly committed to

ing landmark. In December 1950, L&T be-

ence. ❑

developing India’s engineering capabilities

came a Public Company with a paid-up

to meet the demands of industry; the two

capital of Rs.2 million. The sales turnover

friends decided to forgo the comforts of

in that year was Rs.10.9 million. Prestigious

working in Europe, and started their own

orders executed by the Company during

operation in India.

this period included the Amul Dairy at Anand and Blast Furnaces at Rourkela Steel

81

(Inputs from company website)

JUNE - 2009


The Sturdy “The best things in life come in threes, like friends, dreams, and memories,” anonymous.

MECON, WITH ITS HEADQUARTERS AT RANCHI IN JHARKHAND STATE, WITHIN HAILING DISTANCE OF THE STEEL AND COAL BELT IN EASTERN INDIA, IS TODAY ONE AMONG THE BIGGEST ENGINEERING CONSULTING COMPANIES IN INDIA. STARTING OUT AS A NUMERICALLY SMALL BUREAU OF THE FIRST PUBLIC SECTOR STEEL COMPANY,

HINDUSTAN STEEL LIMITED, MECON HAS TURNED ITSELF INTO A DYNAMIC, VIBRANT AND FOR MANY YEARS A CONSISTENTLY PROFIT-MAKING COMPANY DIRECTLY UNDER THE JURISDICTION OF THE MINISTRY OF STEEL, GOVERNMENT OF INDIA.

82

JUNE - 2009


Apart from being consultant to ferrous

Limited (HSL) started doing preliminary

tion of the company. HSL remained a

and non-ferrous industries, power sector,

work for the fourth public sector steel

separate company like Bokaro Steel, un-

petroleum and other chemical industries

plant, i.e. Bokaro Steel Plant.

der the holding company umbrella.

in the public sector and in the private sec-

This designer’s group was referred to by

The memorandum of association made

tor, Mecon is also called upon to perform

various names in this period, first, as the

it clear that Mecon was not confining it-

the task of being a consultant-adviser to

central Design organization, then the cen-

self to pure consultancy or to iron and

the Government of India and foreign gov-

tral Design office and thereafter as the

steel, the main course on its menu.

ernments on the technical front.

central Design Bureau. In course of time,

It would also be engaged in the design

Mecon provided total design, engineer-

it was formally named the central engi-

and manufacture of equipment and sys-

ing and consultancy when, massive ex-

neering and Design Bureau (ce & DB)

tems, and in detailed and project engi-

pansion work was undertaken in three of

which was popularly referred to as ceDB.

neering not undertaken by other

the major steel plants in the countr y -

With 13 elite engineers, the organization

consultancy firms.

Bhilai, Durgapur, Rourkela. It also played

was formally made an independent bu-

the role of a sheet anchor when Bokaro

reau in April 1959 with K M George being

Steel Plant was set up in 1964. Later, in the

designated as the head and chief engi-

70s, when the Bokaro and Bhilai plants

neer.

Awards Mecon was awarded with DSIR national Award 2000 for indigenous development

launched their 4 million tonne expansion

George was the first engineer in India,

of Hi cold Rolling Mill. Mecon got the high-

programme, Mecon took over the design,

who was given the responsibility by the

est exporter trophy for the year 1999-

engineering and supervision functions,

nation to head an integrated steel plant

2000 in the design, technical and

earlier managed by Soviet experts. Mecon

as Managing Director. Unlike in earlier

consultancy services category by Engi-

has grown in stature into a giant in the elit-

projects, the Managing Director was in

neering Export Promotion Council. earlier,

ist sector of consultancy, design and de-

position with a small team of officers at

Mecon got the award for excellence in

tailed engineering. Its growth has been

the detailed planning stage it self at

consultancy services on three occasions

steady, selective and firmly rooted in tech-

Bokaro.

from Consultancy Development Centre,

nology to serve the nation’s multifarious requirements. Mecon’s growth has been progressively directed towards building up domestic expertise in areas of specialty in which indigenous skills were lacking or not up to international standards.

The Initiation In the Indian tradition, children have a ceremonial start for their learning of the alphabets, a ritual called VIDYARAMBHA in Sanskrit. In the case of designer’s group, still somewhat amorphous, this initiation process took the form of a formal assignment to collect and collate all technical and design details from the three plants under construction namely Bhilai, Durgapur and Rourkela Steel Plants. This was done

The tradition of an engineer or techno-

New Delhi. In 1997, the award for

crat as the chief executive at Bokaro con-

“consultanc y for Production of High

tinued until the middle of 1990. But ceDB/

Strength Re-Bars (Steel): concept to com-

Mecon has always had an engineer as its

missioning at Bhilai Steel Plant/SAIL”, in

chief executive.

1993, award for “Technical up-gradation of Blast Furnace at Rourkela Steel Plant/

Redefinition of Objectives A s an independent department of Hindustan Steel Limited, the functions of central engineering and Design Bureau were quite flexible and in line with the needs and directions of the HSL board. Late Mohan Kumaramangalam, as Steel Minister, in 1972-73, conceived the formation of SAIL as the holding company for the main iron and steel plants and ancillary industries in the public sector.

with a view of making a critical and com-

ceDB took on a separate identity as

parative study of the principles and prac-

Metallurgical and engineering consultants

tices adopted in their design thereby build-

(India) Limited, (Mecon) on April 1, 1973

ing an indigenous consultant.

as a subsidiary of the holding company. A

Thereafter in 1957-58, Hindustan Steel

83

SAIL” and in 1992 for “Soaking pit computerization at Bokaro Steel Plant/SAIL”.

Future vision Aiming beyond, Mecon’s future vision can be summarized as : “Developing into an internationally recognized centre of excellence for providing quality services in technical consultancy, design & engineering, design & supply of plant, equipment & systems, project implementation from concept to commissioning for industrial development and upgradation ventures, development of infrastructure and other service sectors.” ❑

clear definition of the firm’s objectives was spelt out in the memorandum of associa-

JUNE - 2009


The Fabricator “The only safe ship in a storm is leadership.” - Faye Wattleton

MAZAGON DOCK LIMITED, MUMBAI, A MINI RATNA PSU AND AN ISO 9001 : 2000 COMPANY IS ONE OF THE LEADING SHIPBUILDING AND OFFSHORE FABRICATION YARDS IN INDIA. THE YARD WAS ESTABLISHED IN THE 18TH CENTURY, AND OVER THE 200 ODD EVENTFUL YEARS, HAS EARNED A REPUTATION FOR HIGH QUALITY WORKMANSHIP. THE SKILLS AND RESOURCEFULNESS OF ITS WORKMEN ARE WELL KNOWN TO THE SHIPBUILDING WORLD IN GENERAL AND TO THE INDIAN NAVY, COAST GUARD & ONGC IN PARTICULAR. INITIALLY MDL HAD PASSED THROUGH VARIOUS OWNERSHIPS LIKE THE P&O LINES AND THE BRITISH INDIA STEAM NAVIGATION COMPANY. IT WAS INCORPORATED AS A PUBLIC LIMITED COMPANY IN 1934.

84

JUNE - 2009


After its takeover by the Government

struction of this class of warships was en-

expected to be launched post monsoons

in 1960, Mazagon Dock grew rapidly to

trusted to GRSE, Kolkata, with lead yard

this year.

become the premier war-shipbuilding yard

services being provided by MDL.

Submarines

in India, producing sophisticated warships

Mazagon Dock has also constructed

for the Navy and offshore structures for

one training ship INS TIR and corvettes for

A dedicated facility for the construction

the ONGC. It has grown from a single unit,

the Navy. The Corvettes are smaller war-

of submarines was set up at MDL and the

small ship repair yard, into a multi-unit and

ships displacing about 1500 tonnes. The

construction of the first submarine in col-

multi-product company, with significant

first of the series, “INS Khukri” was com-

laboration with M/s. HDW of Germany

rise in production and sophistication of

missioned in August 1989, the second,

commenced in 1984. The first submarine

products. The company’s current portfo-

“INS Kuthar” in June 1990. A third cor-

named “Shalki” was launched on 30th

lio of designs spans a wide range of prod-

vette, INS Kirch which was fitted out in the

September 1989 and after undergoing

ucts for both domestic and overseas cli-

Yard was commissioned in 2001.

extensive trials joined the Navy in Febru-

ents.

Mazagon Dock has also built fast and

ar y 1992. The second submarine

War Shipbuilding

powerful Missile Boats for the Navy. Three

“Shankul” was launched in March 1992

missile boats INS Vibuthi, INS Vipul and INS

and commissioned in May 1994. A new

The first modern warship to be built by

Nashak were commissioned into the Navy

order for building six Scorpene class-sub-

the company was the Leander Class frig-

between 1991 and 1994. A fourth boat,

marines was placed on Mazagon Dock

ate “INS Nilgiri”. Its design was obtained

“INS Prabal” launched in September 2000

under a transfer of technology with M/s

from the British Admiralty and the frigate

was commissioned in March 2002.

Armaris, a Franco-Spanish conglomerate.

itself was built in collaboration with M/s. Vickers Ltd. and M/s. Yarrow (Shipbuilders) Ltd. of the United Kingdom. The Nilgiri was launched in October 1968 and commissioned in 1972. During the next nine years five more frigates of this class were constructed at Mazagon Dock Limited. Around this time the Design Bureau of the Indian navy had conceived a prototype of a new generation frigate with about 25% more displacement that could embark two large helicopters. It had a far more comprehensive weapon suite and was equipped with surface to surface missiles, surface to air missiles, close in weapon systems, anti-submarine rocket launchers, chaff launchers etc.

Most importantly,

despite the higher displacement, this ship attained the same top speed as the Nilgiri class frigates, using the same propulsion systems. The ingenuity of this design and MDL’s ability to make it in India made the rest of the world sit-up and take note. This new class was christened as the

Subsequently, construction of the destroyer class Project-15 ships powered by gas turbines was undertaken. These 6700 tonnes mammoth destroyer class of war-

has commenced in the Yard. At present MDL is modernizing the HDW submarines in the yard.

ships were the biggest ships built in this

Besides warships for the Nav y,

part of the world. The first of the class,

Mazagon Dock has also constructed a

‘INS Delhi’ was launched in February 1991

series of Offshore Patrol Vessels for the

and commissioned IN 1997. Two more

Coast Guard. These vessels are special-

destroyers in this class Indian Naval Ships

ized ships for patrolling, policing, search

Mysore and Mumbai were constructed in

and rescue operations in the Exclusive Eco-

the shipyard and the project was com-

nomic Zone of the country. They are also

pleted in January 2001.

provided with capabilities for pollution

Presently, MDL is building three, new

control and fire fighting and carry a heli-

generation stealth warships for the Navy,

copter on board. The design of these ves-

named Project-17 frigates. The first ship

sels was entirely evolved at Mazagon

in this class Shivalik was launched in April-

Dock. Seven Coast Guard Ships, Vikram,

2003 and the second Satpura in June

Vijaya, Veera, Varuna, Vajra, Vivek and

2004. The third and last, Sahyadri was

Vigraha, which today form the mainstay

launched in May 2005. Shivalik is expected

of the Coast Guard fleet, were built and

to be commissioned into the Navy later

delivered between December 1983 and

this year. Stealth features are being incor-

March 1990. A cutter Suction Dredger

porated on Indian built warships for the

being constructed for the Dredging Cor-

first time with the Shivalik Project.

poration of India is in the final stages of

“Godavari Class”, and the first ship of the

An order for building three follow-on

series “INS Godavari” was launched in

destroyers of the Delhi class has also been

May 1980 and commissioned in Decem-

placed on MDL. The first ship Kolkata was

ber 1983. INS Ganga and INS Gomati fol-

launched in 2006 and is undergoing fit-

lowed in 1985 and 1988. Further con-

ting-out in the Yard. The second ship is

85

Production of the first three submarines

construction at MDL and is expected to be delivered shortly. An order for two MSVs has been received by MDL for a Singapore based company. With these orders MDL becomes the most highly loaded shipyard in the world. ❑ JUNE - 2009


The Miner “Conservation is the foresighted utilization, preservation and/or renewal of forests, waters, lands and minerals, for the greatest good of the greatest number for the longest time.”—Gifford Pinchot

NMDC HAS MADE VALUABLE AND SUBSTANTIAL CONTRIBUTION TO THE NATIONAL EFFORTS IN THE MINERAL SECTOR DURING THE LAST FIVE DECADES AND HAS BEEN BEEN ACCORDED THE STATUS OF SCHEDULE-A

PUBLIC SECTOR COMPANY .THE COMPANY HAS BEEN RECENTLY CATEGORIZED BY THE DEPARTMENT OF PUBLIC ENTERPRISES AS “NAVA RATNA” PUBLIC SECTOR ENTERPRISE.

86

JUNE - 2009


Incorporated in 1958 as a Government

mines in Bihar, Khetri Copper deposit in

capitalize on this with the available oppor-

of India fully owned public enterprise,

Rajasthan, Kudremukh Iron Ore Mine in

tunities and expertise in the field of min-

NMDC is under the administrative control

Karnataka,

in

eral exploration and mining. NMDC is ven-

of the Ministry of Steel, Government of

Mussorie, some of which were later

turing into development of high value min-

India.

handed over to other companies in public

erals like gold, diamond etc., as joint ven-

sector and others became independent

tures company in some of the African

companies.

countries.

Since inception the company has been involved in the exploration of wide range

Phosphate

deposit

of minerals including iron ore, copper, rock

NMDC is presently producing about

A memorandum of understanding has

phosphate, lime stone, dolomite, gypsum,

22.8 million tonnes of iron ore from its

been signed between NMDC, Indian Rare

bentonite, magnesite, diamond, tin, tung-

Bailadila sector mines and 6.98 million

Earths Ltd., (IRE) and Andhra Pradesh Min-

sten, graphite, beach sands etc.

tonnes from Donimalai sector mines.

eral Development Corporation to estab-

Today NMDC is India’s single largest iron

Because of its excellent chemical and

lish a joint venture for the development of

ore producer and exporter, presently pro-

metallurgical properties, the calibrated ore

Bheemunipatnam Beach Sand. The

ducing 30 million tonnes of iron ore from

from Bailadila deposits has substituted the

project envisages mining of beach sands,

3 fully mechanized mines viz., Bailadila De-

iron ore pellets in sponge iron making and

setting up of mineral separation plant for

posit-14/11C, Bailadila Deposit-5,10/11A

hence became an important raw material

Ilmenite concentrate and a down stream

(Chhattisgarh State) and Donimalai Iron

for three major gas-based sponge iron

value addition plant for conversion of Il-

Ore Mines (Karnataka State) which are

steel producers like Essar Steel, Ispat Indus-

menite into Synthetic Rutile/TiO2 slag/TiO2

awarded ISO 9001-2000 certification.

tries and Vikram Ispat. In addition to these

pigment with Pig iron as by- product.

NMDC has the only mechanized dia-

three, the entire requirement of the

mond mine in the country with a capacity

Visakhapatnam Steel Plant is also being

of 1.00 lakh carat s/annum at Panna

met from Bailadila.

Performance and achievement

NMDC is gearing itself to meet the ex-

(Madhya Pradesh State).

pected increase in demand by opening up

History

new mines – Deposit-11B in Bailadila sec-

The story of NMDC is woven around the

tor and Kumaraswamy in Donimalai sec-

dreamy hills and the deep jungle land of

tor and this would add in allowing the pro-

Bastar

duction capability to reach around 50 mil-

in

Chattigrah,

known

as

Dandakaranya from the epic periods. The

lion tonnes per year 2014-15.

Over all, the company outperformed itself in 2008 as compared to the previous years, and set new records. The turnover for the year 2008 touched a new high of Rs.5711 crore, breaking the previous year’s record of Rs.4186 crore which is an increase of 36%.

Bailadila iron ore range – “The hump of an

NMDC is also diversifying into other raw

ox” – in the local dialect, was remote, in-

materials for steel industry like Low Silica

accessible and replete with wild life. The

The iron ore requirement is ever grow-

Lime Stone. Production of Dead Burnt

range contains 1200 million tonnes of high

ing with the increasing demand for steel

Magnesite and further value addition is

grade iron ore distributed in 14 deposits.

from infrastructure and manufacturing

under study through its subsidiary J K Min-

The entire area was brought to the main-

and construction sectors. The Company

eral Development Corporation Limited.

has geared up to meet, at least, in part the

stream of civilization by the spectacular effort of NMDC by opening-up of mines. Today, Bailadila is a name to reckon with in the world iron ore market because of its super high grade iron ore. Bailadila complex possesses the world’s best grade of hard lumpy ore having +66% iron content, with negligible deleterious material and the best physical and metallurgical properties needed for steel making. In the past, NMDC had developed many mines like Kiriburu, Meghataburu iron ore

Expansion

NMDC has taken over a Silica Sand Min-

increasing demand of iron ore. The mis-

ing and beneficiaton project from Uttar

sion is to achieve 50 million tonnes of iron

Pradesh State Mineral Development Cor-

ore by 2014-15. The capacities of the ex-

poration Ltd. The plant has been designed

isting mines are being expanded by up-

to produce high purity beneficiated silica

grading equipment. A new mine, Bailadila

sand of around 300,000 tonnes per year

deposit-11/B, with a capacity of seven mil-

which is a raw material for production of

lion tonnes will be opened by 2009. The

float/sheet glass.

Kumaraswamy deposit, which is now be-

NMDC achieved the ‘Navaratna’ status

ing developed for an annual production

for its consistent performance over the

capacity of three million tonnes, will be

years. Now the company is planning to

ramped up to seven million tonnes. ❑ (Inputs from company website)

87

JUNE - 2009


The Energiser “Formula for success: Rise early, work hard, strike oil” – Jean Paul Getty

AFTER INDEPENDENCE, THE NATIONAL GOVERNMENT REALIZED THE IMPORTANCE OF OIL AND GAS FOR RAPID INDUSTRIAL DEVELOPMENT AND ITS STRATEGIC ROLE IN DEFENCE.

CONSEQUENTLY, WHILE FRAMING THE INDUSTRIAL POLICY STATEMENT 1948, THE DEVELOPMENT OF PETROLEUM INDUSTRY IN THE COUNTRY WAS CONSIDERED TO BE OF UTMOST NECESSITY; AND SUBSEQUENTLY ONGC WAS FORMED. OF

88

JUNE - 2009


ONGC has dedicated itself to excellence

West Germany, Romania and erstwhile

ONGC went offshore in early 70’s and

by leveraging competitive advantages in

U.S.S.R visited India and helped the gov-

discovered a giant oil field in the form of

R&D and technology with involved

ernment with their expertise. Finally, the

Bombay High, now known as Mumbai

people.

visiting Soviet experts drew up a detailed

High. This discovery, along with subse-

It has imbibed high standards of busi-

plan for geological and geophysical sur-

quent discoveries of huge oil and gas fields

ness ethics and organizational values;

veys and drilling operations to be carried

in Western offshore changed the oil sce-

abiding commitment to safety, health and

out in the 2nd Five Year Plan (1956-57 to

nario of the country. Subsequently, over

environment to enrich quality of commu-

1960-61).

5 billion tonnes of hydrocarbons, which

nity life; foster a culture of trust, openness

Soon, after the formation of the Oil and

were present in the country, were discov-

and mutual concern to make working a

Natural Gas Directorate, it became appar-

ered. The most important contribution of

stimulating and challenging experience for

ent that it would not be possible for the

ONGC, however, is its self-reliance and

our people; strive for customer delight

Directorate with its limited financial and

development of core competence in E&P

through quality products and services.

administrative powers as subordinate of-

activities at a globally competitive level.

ONGC continues to be the leader in the Energy Business with a strong focus on

fice of the Government, to function efficiently.

The liberalized economic polic y, adopted by the Government of India in

domestic and international oil and gas ex-

So in August, 1956, the Directorate was

July 1991, sought to deregulate and de-li-

ploration and production business oppor-

raised to the status of a commission with

cense the core sectors (including petro-

tunities. Through industrial integration

enhanced powers, although it continued

leum sector) with partial disinvestments

ONGC has managed to provide value link-

to be under the government. In October

of government equity in Public Sector Un-

ages in other sectors of energy business

1959, the Commission was converted into

dertakings and other measures. As a con-

and create grow th opportunities and

a statutory body by an act of the Indian

sequence thereof, ONGC was re-orga-

maximize shareholder value.

Parliament, which enhanced powers of

nized as a limited Company under the

the commission further.

Company’s Act, 1956 in February 1994.

Maintaining its leadership, ONGC aims to retain its dominant position in Indian

The main functions of the Oil and Natu-

In the year 2002-03, after taking over

petroleum sector and enhance India’s en-

ral Gas Commission subject to the provi-

MRPL from the A V Birla Group, ONGC di-

ergy availability.

sions of the Act, were “to plan, promote,

versified into the downstream sector.

organize and implement programmes for

ONGC will soon be entering into the re-

development of Petroleum Resources and

tailing business. ONGC has also entered

In 1955, Government of India decided

the production and sale of petroleum and

the global field through its subsidiary,

to develop the oil and natural gas re-

petroleum products produced by it, and

ONGC Videsh Ltd. (OVL). ONGC has made

sources in the various regions of the coun-

to perform such other functions as the

major investments in Vietnam, Sakhalin

try as part of the Public Sector develop-

Central Government may, from time to

and Sudan and earned its first hydrocar-

ment. With this objective, an Oil and Natu-

time, assign to it “. The act further out-

bon revenue from its investment in Viet-

ral Gas Directorate was set up towards the

lined the activities and steps to be taken

nam. ❑

end of 1955, as a subordinate office un-

by ONGC in fulfilling its mandate.

History

ONGC CONTINUES TO BE THE LEADER IN THE ENERGY BUSINESS

der the then Ministry of Natural Resources

Since its inception, ONGC has been in-

and Scientific Research. The department

strumental in transforming the country’s

was constituted with a nucleus of geosci-

WITH A STRONG FOCUS ON DOMESTIC

limited upstream sector into a large viable

entists from the Geological survey of In-

AND INTERNATIONAL OIL AND GAS

playing field, with its activities spread

dia.

EXPLORATION AND PRODUCTION

throughout India and significantly in over-

BUSINESS OPPORTUNITIES.

A delegation under the leadership of

seas territories. In the inland areas, ONGC

K D Malviya, the then Minister of Natural

not only found new resources in Assam

Resources visited several European coun-

but also established new oil province in

tries to study the status of oil industry in

Cambay basin (Gujarat), while adding new

and to facilitate the training of Indian pro-

petroleum rich areas in the Assam-Arakan

fessionals for exploring potential oil and

Fold Belt and East coast basins (both in-

gas reserves. Foreign experts from USA,

land and offshore).

THROUGH INDUSTRIAL INTEGRATION ONGC HAS MANAGED TO PROVIDE VALUE LINKAGES IN OTHER SECTORS OF ENERGY BUSINESS AND CREATE GROWTH OPPORTUNITIES AND MAXIMIZE SHAREHOLDER VALUE. (Inputs from company website)

89

JUNE - 2009


The Assurer “Asking Europe to disarm is like asking a man in Chicago to give up his life insurance.”—Will Rogers.

LIFE INSURANCE HAS BECOME A WAY OF LIFE TODAY; IN THE EVENT OF AN UNTOWARD EVENTUALITY INSURANCE GIVES US A GREAT RELIEF. WITH A WIDE RANGE OF POLICIES NEW INDIA ASSURANCE HAS BECOME ONE OF THE LARGEST NON-LIFE INSURANCE COMPANIES, NOT ONLY IN INDIA, BUT ALSO IN THE AFRO-ASIAN REGION. New India is a leading global insurance

business operations. In the year 1973 the

group, with offices and branches through-

company was nationalized with the

out India and various countries abroad.

merger of Indian companies.

The company services the Indian subcontinent with a network of 1068 offices,

Achievements

comprising 26 Regional offices, 393 Divi-

The company earned a Gross Premium

sional offices and 648 branches. With

(in India) of Rs. 5017.20 crores in the year

approximately 21000 employees, New In-

2006-2007, as against Rs. 4791.49crores

dia has the largest number of specialist

in the year 2005-2006. It had assets worth

and technically qualified personnel at all

Rs. 27444.57crores as on 31st March 2007.

levels of management, who are empow-

It has huge network of Offices which in-

ered to underwrite and settle claims of

cludes 26 Regional Offices, 393 Divisional

high magnitude.

Offices, 614 Branches and 34 Direct Agent

Established by Sir Dorab Tata in 1919,

Branches.

Strengths The major strength of the company is that it has the largest number of Offices in India and abroad, with trained and technically qualified staff and 1068 fully computerized offices across India. For the sixth consecutive year, the Company has been rated as “A” Excellent by M/s. A.M. Best Europe Ltd. The rating reflects Company’s excellent risk adjusted capitalization, prospective improvement in under writing performance and its leading business profile in the direct insurance market in India. A.M. Best believes the Company’s risk

New India Assurance Co. Ltd is the first

The company ranks No.1 in the Indian

adjusted capitalization is excellent and

fully Indian owned insurance company in

market. It has emerged as the largest Non-

anticipates that it will remain sufficient to

India. New India was a pioneer among the

Life insurer in Afro-Asia excluding Japan.

absorb the likely growth in the net pre-

Indian Companies on various fronts, right

New India assurance company is the first

mium. Further it also expects that there

from insuring the first domestic airlines in

Indian non-life company to cross Rs. 5000

will be a reduction in the combined ratio

1946 to satellite insurance in 1980.

crores Gross Premium. It has Global Re-in-

in the years to come. The Company is likely

surance facilities throughout the world in

to maintain its leading business position as

countries like Japan, U.K, Middle East, Fiji

the largest direct insurer in India, despite

and Australia.

increased competition from private play-

History The day on 23rd July1919 saw the New India Assurance Co. Limited initiate its

90

ers. ❑

(Inputs from company website)

JUNE - 2009


The Developer OBC was originally established in Lahore, and was later moved to Amritsar after Independence and Partition.

THE ORIENTAL BANK OF COMMERCE, A CUSTOMER CENTRIC, EFFICIENT RETAIL BANK WITH CONTEMPORARY SIZE, TECHNOLOGY AND HUMAN CAPITAL; ENDEAVOURING TO ENRICH LIVES ACROSS ALL SECTIONS OF SOCIETY; AND COMMITTED TO UPHOLDING THE HIGHEST STANDARDS OF CORPORATE GOVERNANCE. OBC has a net work of over 1200

India. The Bank was founded by Late Rai

chase of Land for Agriculture Purposes,

branches and nearly 700 ATMs spread

Bahadur Lala Sohan Lal who also became

Agriculture Clinic & Agriculture Business

throughout India, out of which most

the first Chairman of OBC. Within four

Centres.

branches offer centralized banking solu-

years of the Bank coming into existence,

tions. Oriental Bank of Commerce is

the countr y partitioned, and the Bank

known be a consistent profit-making

shifted its Registered Office from Lahore

bank due to High Capital Adequacy Ratio.

to Amritsar. The Oriental Bank of Com-

On 13 April 1997 at the occasion of

It offers various services and products, like

merce was nationalized on 15th April 1980,

Baisakhi, OBC launched another unique

current/ savings account, general loans,

and paved its way to count amongst the

scheme, ‘The Comprehensive Village De-

educational loans, agricultural loans, etc,

strongest banks in India.

velopment Programme’ in three villages of

for the benefit of customers. For its effective services, the National Institute of Bank

OBC India Grameen Project

Village Development Programme

Punjab. After the success of this scheme in these

OBC’s Grameen Project aims to reduce

villages, the Bank ex tended the

poverty & to identify the reasons which

programme to more villages. Today, it cov-

Year ending March 2009, OBC reported

are responsible for the failure or success.

ers 10 villages in Punjab, 4 in Haryana and

an Operating Income of Rs.992779 lacs

OBC implemented a Grameen Project in

1 in Rajasthan.

with a Net Profit of Rs.90542 lacs, in com-

Dehradun District (UK) and Hanumangarh

parison with Rs.745484 lacs Income and

District (Rajasthan). This Scheme has a

Rs.84094 lacs Profit respectively from

unique feature of disbursing small loans,

Oriental Bank of Commerce has also

March 2008. .

ranging from Rs. 75 onwards. The OBC

implemented 14 point action plan for

has various Agriculture Loan Schemes for

strengthening the credit deliver y to

farmers, such as Composite Credit

women. Under this scheme bank provide

Established on 19th February 1943 in

Scheme for Agricultural Lending, Over-

various loans to women, such as, Oriented

Lahore, Oriental Bank of Commerce (OBC)

draft Facility to Farmers, Advance against

Mahila Vikas Yojana, Scheme for Profes-

became one of the public sector banks in

Warehouse Receipts to Farmers & Pur-

sional & self Employed Women, ❑

Management (NIBM) rated OBC Bank as “Customer Friendly” Bank.

History

Special Services For Women

(Inputs from company website)

91

JUNE - 2009


The Steelmaker “In a way, the sense of quality has improved, the status symbol of the small things is gone, and it is acceptable to use stainless steel, even if the neighbour uses silver.”—Arne Jacobsen

STEEL AUTHORITY OF INDIA LIMITED, THE LARGEST STEEL PRODUCING COMPANY IN INDIA, OWNS AND OPERATES EIGHT MANUFACTURING PLANTS – FIVE INTEGRATED STEEL PLANTS PRODUCING CARBON STEELS, AND THREE PLANTS MAKING STAINLESS AND ALLOY STEELS. IT ALSO OWNS AND OPERATES FOR ITS CAPTIVE USE, SECOND LARGEST IRON ORE MINES NETWORK IN THE COUNTRY. WITH A TURNOVER OF OVER RS.50000 CRORE, SAIL EMPLOYS AROUND 1.26 LAKH EMPLOYEES

92

JUNE - 2009


With the rampant development of infrastructure witnessed in the last two de-

Private Limited was set up on January 19,

2000 crore, was made responsible for

1954.

managing five integrated steel plants at

cades, the demand for steel has increased

Hindustan Steel Ltd. (HSL) was initially

Bhilai, Bokaro, Durgapur, Rourkela and

many folds and the steel companies are

designed to manage only one plant that

Burnpur, the Alloy Steel Plant and the Sa-

leaving no stone unturned to meet the

was coming up at Rourkela. For Bhilai and

lem Steel Plant. In 1978 SAIL was restruc-

ever growing demand. Lending a hand

Durgapur Steel Plants, the preliminar y

tured as an operating company.

towards development the Steel Authority

work was done by the Iron and Steel Min-

Since its inception, SAIL has been instru-

of India too has spent its precious 50 years

istry. From April 1957, the supervision and

mental in laying a sound infrastructure for

in meeting the demand for the quality

control of these two steel plants were also

the industrial development of the coun-

steel by the people and industry.

transferred to Hindustan Steel. The regis-

try. Besides, it has immensely contributed

Today the Steel Authority of India Lim-

tered office was originally in New Delhi. It

to the development of technical and

ited (SAIL) is the leading steel-making

moved to Calcutta in July 1956 and ulti-

managerial expertise. It has triggered the

company in India. It is a fully integrated iron

mately to Ranchi in December 1959.

secondar y and tertiar y waves of economic growth by continuously providing

and steel maker, producing both basic and

A new steel company, Bokaro Steel Lim-

special steels for domestic construction,

ited, was incorporated in January 1964 to

the inputs for the consuming industry.

engineering, power, railway, automotive

construct and operate the steel plant at

and defence industries and for sale in ex-

Bokaro. The 1 MT (Million Tonne) phases

Achievements

port markets.

of Bhilai and Rourkela Steel Plants were

SAIL has registered spectacular perfor-

Ranked amongst the top ten public sec-

completed by the end of December 1961.

mance under the leadership of Roongta—

tor companies in India in terms of turnover,

The 1 MT phase of Durgapur Steel Plant

SAIL manufactures and sells a broad range

was completed in January 1962 after com-

Setting new landmarks in physical and

of steel products, including hot and cold

missioning of the Wheel and Axle plant.

financial performance, the company has

rolled sheets and coils, galvanised sheets,

The crude steel production of HSL went

achieved the best ever capacity utilization

electrical sheets, structurals, railway prod-

up from .158 MT (1959-60) to 1.6 MT. The

of 118 per cent.

ucts, plates, bars and rods, stainless steel

second phase of Bhilai Steel Plant was

SAIL emerged among the three most

and other alloy steels. SAIL produces iron

completed in September 1967 after com-

profit making companies in the country

and steel at five integrated plants and

missioning of the Wire Rod Mill.

with a PBT(profit before tax) of over Rs.

three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials, including the Company’s iron ore, limestone and dolomite mines.

The last unit of the 1.8 MT phase of

11,000 crores in 2007-08. SAIL is also

Rourkela - the Tandem Mill - was commis-

implementing a mega expansion plan at

sioned in February 1968, and the 1.6 MT

all its plants/units to approximately double

stage of Durgapur Steel Plant was com-

its capacity to over 26 million tonnes of hot

pleted in August 1969 after commission-

metal in the next 3 to 4 years.

ing of the Furnace in SMS. Thus, with the

Expansion Plan, 2010

SAIL has a well-equipped Research and

completion of the 2.5 MT stage at Bhilai,

Development Centre for Iron and Steel

1.8 MT at Rourkela and 1.6 MT at

(RDCIS) at Ranchi which helps to produce

Durgapur, the total crude steel production

quality steel and develop new technolo-

capacity of HSL was raised to 3.7 MT in

gies for the steel industry.

1968-69 and subsequently to 4MT in 1972-

History

73.

SAIL traces its origin to the formative

Chairman SAIL.

Based on the Composite Project Feasibility Report (CPFR), the Corporate Plan was reviewed by the Ministr y of Steel 2006, to take up the expansion of Integrated Steel Plants and Special Steel Plant in one go.

Formation

In principle approval had been accorded

years of an emerging nation - India. After

The Ministry of Steel and Mines drafted

by SAIL Board for the expansion plans of

independence the builders of modern In-

a policy statement to evolve a new model

IISCO Steel Plant (Jul’06), Salem Steel Plant

dia worked with a vision to lay the infra-

for managing industry. This led to the for-

(Jun’06), Bokaro Steel Plant (Dec’06), Bhilai

structure for rapid industrialization of the

mation of Steel Authority of India Ltd. The

Steel Plant (Apr’07), Rourkela Steel Plant

country. The steel sector was to propel

company, incorporated on Januar y 24,

(May’07) and Durgapur Steel Plant (Jul’07).

the economic grow th. Hindustan Steel

1973 with an authorized capital of Rs.

❑ (Inputs from company website)

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The Lender “It is not the style of clothes one wears, neither the kind of automobile one drives, nor the amount of money one has in the bank, that counts. These mean nothing. It is simply service that measures success.”— George Washington Carver

UNION BANK OF INDIA, ONE OF THE PRIME PUBLIC SECTOR BANKS IN INDIA, HAD STARTED ITS OPERATIONS IN 1920. OVER THE YEARS, IT HAS GROWN AS A MAJOR BANK, WHICH WAS ONCE LED BY MAHATMA GANDHI—THE FATHER OF THE NATION. Being a public sector unit the bank has

services like Cash Management Service,

which is advanced to its existing home

a Share capital of 60.85% held by the

Insurance, Mutual Funds, and Demat from

loan borrowers in order to meet the ex-

Government of India. The rest 39.15 % of

the Bank.

penses of home renovation, repair, fur-

Share Capital is presently held by Institu-

Over the years Union Bank of India has

tions, Individuals and Others. Union Bank

earned the reputation of being a Techno-

Education loan is another loan ad-

of India (UBI) is one of India’s largest state-

Savvy Bank and is one of the front run-

vanced by the bank. Any needy or a meri-

run banks and is also listed on the Forbes

ners amongst public sector bank in the

torious student is eligible to apply for the

2000. It provides several banking services

field of technology. The Bank has

education loan. Students in India can ap-

to its customers. Union Bank of India loan

launched multiple Electronic Deliver y

ply for a loan upto Rs 10 lakhs and in order

is the most important service provided by

Channels and has installed nearly 423 net-

to study abroad, applicants can get a loan

the bank.

worked ATMs in the country.

upto Rs 20 lakhs.

Activities The Bank’s principal activities are to provide Commercial Banking Services which include Merchant Banking, Direct Finance, Infrastructure Finance, Venture Capital Fund, Advisory, Trusteeship, Forex, Treasury and other related financial services. The Bank operates through 2082 branches through out the country. In addition to the Regular Banking Facilities provided by Union Bank of India, customers can also avail a variety of other

To realize the dreams of its consumers the bank has enabled the easy loan

bishing and remodeling.

Performance

scheme. The bank provides a number of

Buoyed by a strong growth in net in-

loans such as Education loan, Home loan,

terest income and fee-based income,

Car and two wheeler loans and Personal

Union Bank of India has posted a net profit

loan.

of Rs 1,726.55 crore as compared with Rs

Home loans are given to customers with triple insurance benefit and flexible remittance options. Any Indian citizen who is 21 years of age or above with a steady income may apply for the home loan. Union Bank of India home loan includes a special scheme called Union Top-up scheme,

1,387.03 crore in the previous year 2008. Total income has increased to Rs 13,371.93 crore from Rs 10,534.27 crore in the year 2008. The Board of Directors of the Bank at its meeting held on May 7 has proposed dividend of 50% i.e. Rs 5/- per share for the financial year 2008-09. ❑ (Inputs from company website)

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The Integrator When I do tend to integrate, I live and feel god- Baven

THE TVS GROUP IS INDIA’S LEADING SUPPLIER OF AUTOMOTIVE COMPONENTS AND ONE OF THE COUNTRY’S MOST RESPECTED THE GROUP TRACES ITS ORIGINS TO A RURAL TRANSPORT SERVICE, FOUNDED IN 1911 IN TAMIL NADU, INDIA. TODAY, THIS RENOWNED BUSINESS CONGLOMERATE REMAINS FAITHFUL TO ITS CORE IDEALS OF TRUST, VALUES, SERVICE AND ETHICS. BUSINESS GROUPS.

With a combined turnover of more than

vehicles, utility / sports utility vehicles and

Built by many people over many years,

US$ 4 billion, the TVS Group employs a

passenger cars. It represents leading au-

the group seems to have a strong legacy

total workforce of close to 25,000.

tomotive companies like Ashok Leyland,

of accountability, integrity and transpar-

Daimler Chrysler, General Motors, Honda

ency. Its commitment to competitive ex-

and Mahindra & Mahindra.

cellence is judged as ‘combined with to-

Charting a steady growth path of expansion and diversification, it currently

The company has more than 100 out-

tal, uncompromising integrity’. According

These operate in diverse fields that

lets that sell over 30,000 vehicles and ser-

to the company, responsibility towards so-

range from two-wheeler and automotive

vice more than 300,000 vehicles annually.

ciety and the environment has always

component manufacturing to automotive

TVS & Sons is also the largest distributor

been a strong force at the TVS Group.

dealerships, finance and electronics. Unit-

of automobile spare parts in the country,

ing these multiple businesses is a common

handling more than 80 suppliers and

ethos of quality, customer service and

35,000 part numbers.

comprises around 30 companies.

social responsibility.

History T V Sundram Iyengar & Sons Limited, was established in 1911, and is the parent company of the TVS Group and a leading Indian automobile distribution company. It operates through three divisions – TVS,

This is manifested in the form of diverse community partnerships. From schools and hospitals to initiatives

The group’s history, marked by long-

for drinking water and electrification,

standing relationships, is testimony to the

companies contribute actively to the de-

fact that people have found careers with

velopment of the society in which their

it and not just jobs.

people live and work.

Recognized for its excellent human re-

The people that make up the TVS Group

source practices, the group addresses

work in an environment of shared ideas,

each individual’s need to grow profession-

efforts and responsibilities. ❑

ally and personally.

Sundaram Motors and Madras Auto Service. The company distributes commercial

96

(Inputs from company website)

JUNE - 2009


The Spirited VOLTAS PROVIDED THE AIR-CONDITIONING FOR THE WORLD'S BIGGEST OCEAN LINER, THE RMS QUEEN MARY 2 AND ALSO ONE OF THE WORLD'S TALLEST HOTEL BUILDING, THE BURJ DUBAI.

WHEN VOLTAS LIMITED WAS FORMED IN 1954, AS A JOINT VENTURE BETWEEN TATA’S AND VOLKART BROTHERS, IT WAS ALREADY A CENTURY OLD IN ALL BUT NAME. IN FACT, THE ALLIANCE ITSELF RESULTED FROM THE NEED TO PRESERVE THAT LEGACY, TO CARRY FORWARD THAT CAPABILITY UNDER CHANGED POST-WAR, POST-INDEPENDENCE CONDITIONS. Since 1853, Volkart had been prominent

Volkart and Tata’s teamed up as Voltas

in ‘two-way trade’ between India and the

Limited to tackle these challenges. It was

West. Broadly, raw materials and com-

the ideal combination: Volkart’s engineer-

modities were exported while the imports

ing service and trading expertise, allied

focused on machinery and engineering

with Tata’s historic standing as a major in-

equipment from overseas manufacturers.

dustrializing power, aligned with the many

Over the years, such technology-based

new markets springing up in post-Inde-

products increasingly needed installations

pendence India.

Marketing Capital Equipments Voltas today offers a full spectrum of technology-based total solutions in: textile machinery, machine tools and mining construction equipment. The customer turns to Voltas for sourcing, installation, commissioning, training and servicing.

Air-conditioning Projects

and support services. This evolved into

The Voltas mission was essentially two-

Volkart’s Engineering & Import business,

fold – to encourage and foster indigenous

In parallel, Voltas built up a capability in

which soon formed the bulk of their ac-

manufacture of engineering products and

project air-conditioning, spanning design

tivities. Post-war and post-Independence

capital equipment, based on technologies

and execution of HVAC installations for an

realities called for some drastic revisions.

acquired from overseas, often from

amazing array of applications such as:

India’s manufacturing capabilities had

Volkart’s existing principals; and – to sup-

Atomic energy plants, Naval warships,

been jumpstarted by wartime conditions.

ply the full gamut of services, from mar-

Malls and multiplexes, Power plants,

Independent India too was intent on forc-

keting to commissioning for such prod-

Telecom facilities, Research labs, Audito-

ing the pace of indigenisation, by restrict-

ucts.

riums and stadiums, Manufacturing facili-

ing imports of engineering equipments

Today, that initial mission remains as a

ties of every description, Hotels, Hospitals,

(among others). Paradoxically, India’s in-

vital activity. Over five decades, two core

Electronics assembly units, Diamond pol-

dustrial and economic growth would re-

competencies have grown out of that

ishing units, Cold storage for perishable

quire more and more such equipment, and

seed and in fact occupy a dominant role

products and process cooling for low tem-

the installation / support services, which

in today’s Voltas. These two core compe-

perature systems. ❑

Volkart was so well placed to deliver.

tencies, contribute to over 75% of the Company’s turnover. (Inputs from company website)

97

JUNE - 2009


The Wheeler Trivia: Hero group was started by the four Munjal brothers, hailing from a small town called Kamalia, now in Pakistan in the year 1944 by establishing bicycle spare parts business in Amritsar. After independence and partition of India, they moved to Ludhiana and started a bicycle unit called Hero Cycles in 1956. By 1975, Hero cycles became the largest bicycle manufacturer in India..

THE WHEEL WAS INVENTED LONG BACK. MOST AUTHORITIES REGARD THE WHEEL AS ONE OF THE OLDEST AND MOST IMPORTANT INVENTIONS, WHICH

MESOPOTAMIA IN THE 5TH MILLENNIUM BC. BUT DR. BRIJMOHAN LALL MUNJAL WAS AS IMPORTANT…FOR INDIA…IN 1956. ORIGINATED IN ANCIENT

WHAT MADE

98

JUNE - 2009


Hero, a name synonymous with two

Hero Motors is a complete end-to-end

as a case study at London Business School,

wheelers in India is today a multi-unit,

engineering solution provider for global

UK and INSEAD, France. World Bank has

multi-product, geographically diversified

automotive industr y- from design and

acclaimed Hero Cycles as a role model in

Group of companies.

development to manufacturing and as-

vendor development based on a world-

sembly.

wide study.

Through fully integrated operations, the Munjals roll their own steel, make critical

Hero Motors has developed its center

The London Business School, UK, has

components such as free wheels for their

of excellence in the following verticals-

done a case study on the Group as model

bicycles, and have the foresight to simul-

Engines and Transmissions, Ferrous Cast-

of entrepreneurship.

taneously diversify into myriad ventures,

ing, Fitness and Assembly, Gas Fuel Sys-

Boston Consulting Group has ranked

like product designing, IT enabled services,

tems, Chassis Systems and Aviation

Hero Group as one of the top ten Business

finance and insurance, just to name a few.

Outsourcing.

Houses on Economic value, in India.

Like every success story, Hero’s saga

Hero Motors has strategic alliances with

contains an element of spirit and enter-

BRP-Powertrain, Austria for engine com-

prise; of achievement through grit and

ponents and transmission, Sumitomo

determination, coupled with vision and

Kiriu, Japan for automotive discs and

meticulous planning.

Power Plate International, UK for fitness

Throughout its success trail, the Hero

assembly. BMW, Bosch, General Motors

Group and its members have displayed

and Toyota are some of Hero Motors cli-

unwavering passion of setting higher stan-

ents.

dards for themselves and delivering simply the best to their customers.

Recently, Hero Motors Limited, part of the US$ 4.5 billion Hero Group signed a

The Hero Group is recognized as a long term partner and an ideal employer: 

Hero Group's partnership with Honda Motors, Japan is over 21 years old



Hero Group's Partnership with Showa Manufacturing Corporation, Japan is over 19 years old. Group Chairman, Brijmohan Lall Munjal

received the coveted "Ernst & Young Entrepreneur of the Year" award for 2001.

The Hero Group philosophy is: “To pro-

five year Memorandum of Understanding

vide excellent transportation to the com-

(MoU) worth US$250 million with BRP-

Hero Honda Motors was ranked 3rd

mon man at easily affordable prices and

Powertrain for manufacturing transmis-

amongst top Indian companies Review

to provide total satisfaction in all it s

sions.

2000 - Asia's leading companies award

spheres of activity.”

This MoU will strengthen the strategic

(2004) by Far Eastern Economic Review.

Thus apart from being customer-cen-

alliance bet ween BRP-Powertrain and

Hero Honda Motors is the World's larg-

tric, the Hero Group also provides its em-

Hero Motors Limited while establishing the

est manufacturer of two-wheelers with

ployees with a fine quality of life and its

latter as the hub for manufacturing trans-

annual sales volume of over 3.0 million

business associates with a total sense of

missions.

motorcycles.

Hero Motors also announced its new

Hero Honda Motors has been awarded

“Engineering Satisfaction” is the prime

design outsourcing vertical “Hero Innova-

the highest rating for Corporate Gover-

motive of the Hero Group and it has be-

tion Centre” imbibing “Design to Cost”

nance (2003) by CRISIL - India's Leading

come a way of life and a part of the work

concept and supporting the BRP-

Ratings, Risk & Advisory Company and as

culture of the Group. This is what drives

Powertrain manufacturing base.

the Best Governed Company in private

belonging.

sector(Dec 2004).

the Group to seek newer vistas, adopt

Hero Group ranks amongst the Top 10

faster technology and create quality driven

Indian Business Houses comprising 20

Hero Honda ranked Number One in the

products to the utmost satisfaction of

companies, with an estimated turnover of

two-wheeler category on Environmental

customers, partners, dealers and vendors.

US$ 3.2 billion during the fiscal year 2005-

Performance by the Centre for Science

2006.

and Environment.

Today the Hero Group has a number of accolades and achievements to its credit

The Group and its management have

Hero Cycles Limited is a Guinness Book

… yet consumer requirements and newer

acquired a number of accolades and

Record holder since 1986 as the world's

technologies provide fresh challenges ev-

achievements over the years:

largest manufacturer of bicycles, with

er y day, and at Hero the wheels of progress continue to turn.

Hero Group Management style has been acclaimed internationally by World

annual sales volume of 5 million bicycles in FY 2006. ❑

Bank and BBC, UK.Hero Group is discussed (Inputs from company website)

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The Golden League