Indian cos that made headlines in 2011Document Transcript
Indian Cos that Made Headlines in 2011Bangalore: 2011 has been a witness to many critical happenings in the Indian business world.Some companies went through a roller coaster ride while some had a safe sail. Fewcompanies saw only the success horizon also. While some companies were announcing theirfuture successors, some were waving good-bye to their long term founders from an era ofsuccession. Some became the meat of harsh criticism for bankruptcy and some for their 10fold rise in revenues. On the whole the Indian business industry was in good shape in 2011.Here is the list of companies which made news in 2011:1. Infosys:In the late August 2011, Infosys Co-founder Narayan Murthy waved good bye to hisChairmanship, making way to new leadership. He ended the 30 years of illustrious innings atInfosys, a company that he had found it with six other engineers. K.V. Kamath former ICICIBank chairman was introduced as the new charioteer who would drive the vision of Infosysfrom here on. S D Shibulal was given the position of CEO and MD. Narayan Murthycontinues to remain as the Chairman Emeritus at Infosys. "When I thought of (starting)Infosys on December 29, 1980, I frankly did not think I will bid goodbye to an Infosys of thissize and this proportion", Narayan Murthy said, as quoted by IBN Live.
2. Reliance Industries:We know them as the warring brothers. But little did we know that the two brothers wouldcome together in 2011 to fix the issues that have crippled their telecom business. The siblingsdecided to put an end to their rivalry and create a harmonious environment with co-operationand collaboration. They made headlines, when Mukesh Ambani hatched a plan to combinehis group with his younger brother Anils telecom company to take another shot at thetelecom sector for 4G services. "As leading telecom infrastructure and content serviceproviders, we look forward to offering our services to RIL and other BWA players, evenwhile we compete for customers in the market place through our choice of differenttechnologies," RCom said in a statement.3. FlipKart:Known as the Amazon of India, FlipKart made heads turn when they received $150 millionfunding from General Atlantic Partners. With the funding, the companys became the Indiasfirst billion dollar Internet startup increasing the company valuation to $1 billion. Sachin andBinny Bansal, coincidentally with the same surnames were the two who found Flipkart in
2007. Initially known as the online bookstore, the company did r e ally well. Soon it madeforay into general e-commerce products. The company is on its wave of success and expectsa 10 fold rise in its revenue in the coming year. In an e-mail response to VC Circle, PatHedley, managing director (Corporate Affairs), General Atlantic said, "It is our companypolicy not to comment on investment opportunities that we may or may not be considering."In an email response, Sachin Bansal, CEO, Flipkart said, "Any discussion about funding isspeculative. Being a privately held company, we would not like to comment on this."4. Maruti Suzuki:Going through one of the worst moments in its history was Maruti Suzuki with a huge labourstrike. The strike was so intense that went on for nearly six months and posted a fall of 60percent in its net profit in its second quarter. It was the worst quarterly earnings for thecompany in more than a decade. Production was hit big time. making matters worse, theunion labor leaders were paid huge sum to quit the company which disappointed long terminvestors of the company. The strike happened at a time when the Indian automobile sectorwas facing a sharp fall in demand due to rising interest rates, fuel and vehicle costs. Car salesin India fell in July in their first monthly decline in nearly three years. They continued to slidein August and September as reported by ET.
5. Tata Group:Tata Group searching for a successor was a well known fact and it was the most anticipatedcorporate announcement of 2011. Indias largest business corporation finally pronouncedCyrus Mistry as the successor after Ratan Tata. The youngest son of construction tycoonPallonji Shapoorji Mistry, Cyrus comes from one of the affluent and richest Indian familieswith a net worth of $7.6 billion. Shapoorji Pallonji & Company is the single and the largeststake holder in Tata Sons with a stake of 18 percent. Cyrus Mistry has been managingdirector of Shapoorji Pallonji & Company, "The appointment of Cyrus P Mistry as deputychairman of Tata Sons is a good and far- sighted choice. I have been impressed with thequality and calibre of his participation, his astute observations and his humility," said RatanTata while endorsing the appointment."He is intelligent and qualified to take on theresponsibility being offered and I will be committed to working with him over the next yearto give him the exposure, the involvement and the operating experience to equip him toundertake the full responsibility of the group on my retirement," Tata said. As per the groupsretirement policy, he will retire in December 2012, as quoted by India Today.
6. Kingfisher Airlines:Kingfisher Airlines was under immense criticism after there were dozens of flight cancelledafter the company declared that it was part of a debt restructuring. On October 13, airlinefaced disruptions when state run oil company HPCL halted fuel supplies due to non-paymentof debts. Kingfisher has suffered a loss of Rs 1,027 crore in 2010-11 and has a mounting debtof Rs 7,057.08 crore. Together, the 13-bank consortium now holds 23.4 per cent stake in theairline and has an exposure of over Rs 7,700 crore. On December 2, the Mumbai Airportauthorities (MIAL) have threatened to put cash-starved Kingfisher Airlines on a cash-and-carry mode again if the carrier fails to pay up the dues of around 90 crore. The developmentcomes amidst reports that even the state-run Airport Authority of India has threatened to putthe airline -- which is sitting on a debt of over 12,000 crore -- on cash-and-carry mode. Theairline owes 240 crore to national airports operator and the move reportedly came, accordingto an official, after a cheque issued by Kingfisher bounced according to a PTI report.
7. SKS Finance:Indias only listed microfinance institution, SKS Finance saw the exit of its founder VikramAkula who was once regarded as the epitomizer of the company. The company came underthe scanner for its flawed business model that transformed it from a non-governmentalorganization to a completely commercial business enterprise. The company started trackinginvestor returns instead of providing financial help for the poor. The micro lenders alsobagged a bad name after they started lending huge sum of cash to borrowers which went wayabove their capacity to return. Also aggressive debt recoveries were practiced which diddisappointed investors. SKS now plans to cut its microfinance exposure and increase incomefrom other operations, according to a DNA report.