road ahead - murugappa presentation
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The Road Ahead….The Road Ahead….
Vision 2014Vision 2014
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The economic upturn has truly begun!The economic upturn has truly begun!
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The economic upturnThe economic upturn
6.5%*
Jan/10
* Based on CII projections
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Projected Sectoral Growth RatesProjected Sectoral Growth Rates(for 2009-10)(for 2009-10)
2.8 to 3 % Growth*
5 to 5.5 % Growth*
7.5 to 8 % Growth*
Agriculture
Industry
Services
* Based on CII projections
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Expected Indian GDP (in Dollar terms) : $1.3 TrillionExpected Indian GDP (in Dollar terms) : $1.3 Trillion(2009-10)(2009-10)
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““The crisis is no more than a The crisis is no more than a
temporary interruption in the temporary interruption in the
financial market development of financial market development of
emerging economies”emerging economies”
McKinsey Report McKinsey Report on Global Capital Markets on Global Capital Markets (Sep 2009)(Sep 2009)
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The India AdvantageThe India Advantage
FDI Equity Inflow in US$ Mn*
* http://dipp.nic.in/fdi_statistics
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Global market : 37 million tonnes
India’s share : 23 million tonnes
Coromandel contributes 9.4% of that.
World consumption :166 million tonnes
India’s market share : 23 million tonnes EID Parry contributes 1.4% of that
Phosphate based Fertilizers (2008-09)
Sugar Industry (2008-09)
CTC Tea Market (2008-09)
(India)
(India)(EID Parry)
(Coromandel)
(India(India))
(India(India))
(Global (Global Market)Market)
(Global (Global Market)Market)
The Current ScenarioThe Current Scenario
(Rest of the world)
(Rest of the world)
(Others)
(Others)
(Parry Agro)
(Others)
(India - CTC)(India - CTC)(Global (Global Market)Market)
(India)
(Rest of the world)
World consumption : 1340 million kgs
India’s market share : 981 million kgs
Parry Agro contributes 14 million kgs
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T
Global Market : USD 14.5 Bn
Indian Share : USD 300 Mn
CUMI contributes 43 % of that
Abrasives Industry (2008-09)
(India)(India)
(Rest of (Rest of the world)the world)
The Current ScenarioThe Current Scenario
(CUMI)(CUMI)(Others(Others))
(India(India))
(Global (Global Market)Market)
T
Global Market : 100 Mn Cycles
Indian Share : 9.1 Mn Cycles
TI Cycles contributes 33 % of that
Cycles Industry (2008-09)
(India)(India)
(Rest of (Rest of the world)the world)
(TI (TI Cycles)Cycles)
(Others(Others)) (India(India
))(Global (Global Market)Market)
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Bigger Investments
Stronger Market Sentiments
Huge Opportunities
Looking Forward….Looking Forward….
More Development
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VisionVision
Turnover EBITDAMargin
CurrentCurrent
TurnoverEBITDA Margin
Market Cap / Value
12%12%
USD 2.1 bnUSD 2.1 bn
15%15%
USD 7.0 bnUSD 7.0 bn
USD 7.7 bnUSD 7.7 bn
Market Cap / Value
USD 2.9 bnUSD 2.9 bn
Our VisionOur Vision
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Turnover – FY 2009-10 Turnover – FY 2013-14
To become Rs.35000 cr To become Rs.35000 cr group by 2013-14group by 2013-14
Rs.cr 2009-10CFL 7150EID 1160CUMI 1400TII 2053Chola DBS 1058Chola MS 875DBG & Others 737Total 14433
Rs.cr 2013-14CFL 15000EID 3741CUMI 5100TII 4830Chola DBS 1962Chola MS 2500DBG & Others 2072Total 35205
To Grow group turnover from To Grow group turnover from USD 2.9 bn to USD 7.0 bn USD 2.9 bn to USD 7.0 bn
*Dollar rate assumed Rs 50
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How do we Achieve ?How do we Achieve ?
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Four Important Business Approaches
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Risk Assessment and Risk TakingRisk Assessment and Risk Taking
Professionalism and EntrepreneurshipProfessionalism and Entrepreneurship
Agility despite SizeAgility despite Size
Humility despite SuccessHumility despite Success
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Risk Assessment and Risk TakingRisk Assessment and Risk Taking
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• Risk taking is an integral part of business and life
• Risk has a positive side – a chance of hitting a big win
Risk Assessment and Risk TakingRisk Assessment and Risk Taking
Risks
Intelligent Risks
Unworthy Risks
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Risk Assessment and Risk TakingRisk Assessment and Risk Taking
• Never pursue a Unworthy Risk / Never oversee an Intelligent Risk
• Develop the expertise to spot the Opportunities among the
Diversions
• Considering an Opportunity is Risk Assessment
• Investing in the Opportunity is Risk Taking
Risk taking is required to stay in business, Risk Assessment is essential to remain profitable
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Risk Assessment and Risk TakingRisk Assessment and Risk Taking
The TATA NANOThe TATA NANO
An Engineering MarvelAn Engineering Marvel
The People’s CarThe People’s Car
Detroit is duplicating the Detroit is duplicating the ideaidea
Priced at under RS. 1 Priced at under RS. 1 LakhLakh
Untapped MarketUntapped Market
InnovationInnovation
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Risk Assessment and Risk TakingRisk Assessment and Risk Taking
““We need to hone our skills of risk assessment and We need to hone our skills of risk assessment and leverage on emerging opportunities profitably”leverage on emerging opportunities profitably”
• Being conservative has been our strength
• It has provided a solid wherewithal to take on the challenges of today’s corporate responsibilities.
• Opportunities are aplenty
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Professionalism and EntrepreneurshipProfessionalism and Entrepreneurship
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Professionals
Entrepreneurs
Professionalism and EntrepreneurshipProfessionalism and Entrepreneurship
“Corporate Entrepreneurs”
• Extremely exciting business environment
• Business Opportunities are abundant and increase with time
• Professionals lack the entrepreneurial spirit to spot these opportunities
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At Murugappa GroupAt Murugappa Group
Professionalism and EntrepreneurshipProfessionalism and Entrepreneurship
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““Let us Strive towards building a culture of Corporate Let us Strive towards building a culture of Corporate Entrepreneurship”Entrepreneurship”
• Professionals entrusted to manage Business
• Family proactively influences the environment
• Government and the Industry looks up to us as one of a kind – “An Ethical Professional Business House”
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Agility despite SizeAgility despite Size
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Agility despite SizeAgility despite Size
• Ability to satisfy a customer’s requirement is the key to profitability
• An organization has to be agile to satisfy the needs of the customer because, customer’s needs are never static
Economic Intelligence Unit Survey on Organizational Agility*
Respondents who said Organizational agility as a key to global success
Respondents who said Organizational agility is not important
* - www.eiu.com
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Agility despite SizeAgility despite Size
““There is no match for a large organization that develops There is no match for a large organization that develops an organizational structure and culture that is nimble”an organizational structure and culture that is nimble”
• Agile firms grow revenue 37% faster and generate 30% higher profits than non-agile companies.*
• Midsize companies have the agility edge over the size and reach of large companies and the entrepreneurial skill of small firms.*
* - www.eiu.com
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The Toyota WayThe Toyota Way
The Toyota way The Toyota way initiativeinitiative
Continuous Continuous DevelopmentDevelopment
Respect for AllRespect for All
Employees, 316,000.Employees, 316,000.
Robotics, Financial services Robotics, Financial services and Biotechnologyand Biotechnology
Revenue, US $ 203 billion.Revenue, US $ 203 billion.
Agility despite SizeAgility despite Size
* - www.toyota.co.jp
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Let us aspire “to get that small-company soul inside our Let us aspire “to get that small-company soul inside our big company body”big company body”
• Continue our growth journey without getting into a bureaucratic attitude
• Humility is a conscious decision
• Let us remain Agile despite Size
Agility despite SizeAgility despite Size
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Humility despite Success Humility despite Success
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Humility despite Success Humility despite Success
• The most important aspect of any business is humility.
• Humility is in understanding that our processes and practices are not perfected yet.
• Knowing that our current success is not promised, it’s earned.
“ “ Only 74 companies survived out of the 500 after 50 Only 74 companies survived out of the 500 after 50 years”years”
(1997 Company (1997 Company Index)Index)
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Travels in Economy Travels in Economy ClassClass
Very Similar to our Very Similar to our groupgroup
Revenue : Revenue : USDUSD 4.98* Bn 4.98* Bn (2009)(2009)
Total Assets Total Assets USDUSD 5.37* Bn 5.37* Bn (2009)(2009)
Incorporated in 1945Incorporated in 1945
Azim PremjiChairman and CEO of WIPRO
WIPROWIPRO
Humility despite Success Humility despite Success
* - The Hindu – dated 14th Aug 2009
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Our 5 guiding lightsOur 5 guiding lights
IntegrityIntegrity
PassionPassion
ResponsibilityResponsibility
QualityQuality
RespectRespect
Humility despite Success Humility despite Success
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