Road ahead - Murugappa Presentation

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Road ahead - Murugappa Presentation

  1. 1. The Road Ahead…. Vision 2014
  2. 2. The economic upturn has truly begun!
  3. 3. The economic upturn * Based on CII projections 6.5%* Jan/10
  4. 4. Projected Sectoral Growth Rates (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
  5. 5. Expected Indian GDP (in Dollar terms) : $1.3 Trillion (2009-10)
  6. 6. “ The crisis is no more than a temporary interruption in the financial market development of emerging economies” McKinsey Report on Global Capital Markets (Sep 2009)
  7. 7. The India Advantage FDI Equity Inflow in US$ Mn* * http://dipp.nic.in/fdi_statistics
  8. 8. Phosphate based Fertilizers (2008-09) Sugar Industry (2008-09) CTC Tea Market (2008-09) (India) (India) (EID Parry) (Coromandel) (India) (India) (Global Market) (Global Market) The Current Scenario (Rest of the world) (Rest of the world) (Others) (Others) (Parry Agro) (Others) (India - CTC) (Global Market) (India) (Rest of the world) 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 World consumption : 1340 million kgs India’s market share : 981 million kgs Parry Agro contributes 14 million kgs
  9. 9. T Global Market : USD 14.5 Bn Indian Share : USD 300 Mn CUMI contributes 43 % of that Abrasives Industry (2008-09) (India) (Rest of the world) The Current Scenario (CUMI) (Others) (India) (Global Market) T Global Market : 100 Mn Cycles Indian Share : 9.1 Mn Cycles TI Cycles contributes 33 % of that Cycles Industry (2008-09) (India) (Rest of the world) (TI Cycles) (Others) (India) (Global Market)
  10. 10. Bigger Investments Stronger Market Sentiments Huge Opportunities Looking Forward…. More Development
  11. 11. 12% USD 2.1 bn 15% USD 7.0 bn USD 7.7 bn Market Cap / Value USD 2.9 bn Our Vision Vision Turnover EBITDA Margin Current Turnover EBITDA Margin Market Cap / Value
  12. 12. Turnover – FY 2009-10 Turnover – FY 2013-14 To become Rs.35000 cr group by 2013-14 To Grow group turnover from USD 2.9 bn to USD 7.0 bn *Dollar rate assumed Rs 50 Rs.cr 2009-10 CFL 7150 EID 1160 CUMI 1400 TII 2053 Chola DBS 1058 Chola MS 875 DBG & Others 737 Total 14433 Rs.cr 2013-14 CFL 15000 EID 3741 CUMI 5100 TII 4830 Chola DBS 1962 Chola MS 2500 DBG & Others 2072 Total 35205
  13. 13. How do we Achieve ?
  14. 14. Four Important Business Approaches
  15. 15. Agility despite Size Humility despite Success Risk Assessment and Risk Taking Professionalism and Entrepreneurship
  16. 16. Risk Assessment and Risk Taking
  17. 17. <ul><li>Risk taking is an integral part of business and life </li></ul><ul><li>Risk has a positive side – a chance of hitting a big win </li></ul>Risks Intelligent Risks Unworthy Risks Risk Assessment and Risk Taking
  18. 18. Risk Assessment and Risk Taking <ul><li>Never pursue a Unworthy Risk / Never oversee an Intelligent Risk </li></ul><ul><li>Develop the expertise to spot the Opportunities among the Diversions </li></ul><ul><li>Considering an Opportunity is Risk Assessment </li></ul><ul><li>Investing in the Opportunity is Risk Taking </li></ul>Risk taking is required to stay in business, Risk Assessment is essential to remain profitable
  19. 19. The TATA NANO An Engineering Marvel The People’s Car Detroit is duplicating the idea Priced at under RS. 1 Lakh Untapped Market Innovation Risk Assessment and Risk Taking
  20. 20. Risk Assessment and Risk Taking “ We need to hone our skills of risk assessment and leverage on emerging opportunities profitably” <ul><li>Being conservative has been our strength </li></ul><ul><li>It has provided a solid wherewithal to take on the challenges of today’s corporate responsibilities. </li></ul><ul><li>Opportunities are aplenty </li></ul>
  21. 21. Professionalism and Entrepreneurship
  22. 22. Professionals Entrepreneurs “ Corporate Entrepreneurs” <ul><li>Extremely exciting business environment </li></ul><ul><li>Business Opportunities are abundant and increase with time </li></ul><ul><li>Professionals lack the entrepreneurial spirit to spot these opportunities </li></ul>Professionalism and Entrepreneurship
  23. 23. At Murugappa Group Professionalism and Entrepreneurship
  24. 24. “ Let us Strive towards building a culture of Corporate Entrepreneurship” <ul><li>Professionals entrusted to manage Business </li></ul><ul><li>Family proactively influences the environment </li></ul><ul><li>Government and the Industry looks up to us as one of a kind – “An Ethical Professional Business House” </li></ul>
  25. 25. Agility despite Size
  26. 26. <ul><li>Ability to satisfy a customer’s requirement is the key to profitability </li></ul><ul><li>An organization has to be agile to satisfy the needs of the customer because, customer’s needs are never static </li></ul>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 Agility despite Size
  27. 27. “ There is no match for a large organization that develops an organizational structure and culture that is nimble” <ul><li>Agile firms grow revenue 37% faster and generate 30% higher profits than non-agile companies.* </li></ul><ul><li>Midsize companies have the agility edge over the size and reach of large companies and the entrepreneurial skill of small firms.* </li></ul>* - www.eiu.com Agility despite Size
  28. 28. The Toyota Way The Toyota way initiative Continuous Development Respect for All Employees, 316,000. Robotics, Financial services and Biotechnology Revenue, US $ 203 billion. * - www.toyota.co.jp Agility despite Size
  29. 29. Let us aspire “to get that small-company soul inside our big company body” <ul><li>Continue our growth journey without getting into a bureaucratic attitude </li></ul><ul><li>Humility is a conscious decision </li></ul><ul><li>Let us remain Agile despite Size </li></ul>Agility despite Size
  30. 30. Humility despite Success
  31. 31. Humility despite Success <ul><li>The most important aspect of any business is humility. </li></ul><ul><ul><li>Humility is in understanding that our processes and practices are not perfected yet. </li></ul></ul><ul><ul><li>Knowing that our current success is not promised, it’s earned. </li></ul></ul><ul><ul><li>“ Only 74 companies survived out of the 500 after 50 years” </li></ul></ul><ul><ul><li>(1997 Company Index) </li></ul></ul>
  32. 32. Travels in Economy Class Very Similar to our group Revenue : USD 4.98* Bn (2009) Total Assets USD 5.37* Bn (2009) Incorporated in 1945 Azim Premji Chairman and CEO of WIPRO WIPRO Humility despite Success * - The Hindu – dated 14 th Aug 2009
  33. 33. Our 5 guiding lights Integrity Passion Responsibility Quality Respect Humility despite Success

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