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The Road Ahead…. Vision 2014
The economic upturn has truly begun!
The economic upturn * Based on CII projections 6.5%* Jan/10
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
Expected Indian GDP (in Dollar terms) : $1.3 Trillion (2009-10)
“ The crisis is no more than a temporary interruption  in the financial market development of emerging economies” McKinsey Report  on Global Capital Markets  (Sep 2009)
The India Advantage FDI Equity Inflow in US$ Mn* * http://dipp.nic.in/fdi_statistics
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
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)
Bigger Investments Stronger Market Sentiments Huge Opportunities Looking Forward…. More Development
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
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
How do we Achieve ?
Four Important Business Approaches
Agility despite Size Humility despite Success Risk Assessment and Risk Taking Professionalism and Entrepreneurship
Risk Assessment and Risk Taking
[object Object],[object Object],Risks Intelligent Risks Unworthy Risks Risk Assessment and Risk Taking
Risk Assessment and Risk Taking ,[object Object],[object Object],[object Object],[object Object],Risk taking is required to stay in business, Risk Assessment is essential to remain profitable
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
Risk Assessment and Risk Taking “ We  need to hone our skills of risk assessment and leverage on emerging opportunities profitably” ,[object Object],[object Object],[object Object]
Professionalism and Entrepreneurship
Professionals Entrepreneurs “ Corporate Entrepreneurs” ,[object Object],[object Object],[object Object],Professionalism and Entrepreneurship
At Murugappa Group Professionalism and Entrepreneurship
“ Let us Strive towards building a culture of Corporate Entrepreneurship” ,[object Object],[object Object],[object Object]
Agility despite Size
[object Object],[object Object],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
“ There is no match for a large organization that develops an organizational structure and culture that is nimble” ,[object Object],[object Object],* - www.eiu.com Agility despite Size
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
Let us aspire “to get that small-company soul inside our big company body” ,[object Object],[object Object],[object Object],Agility despite Size
Humility despite Success
Humility despite Success  ,[object Object],[object Object],[object Object],[object Object],[object Object]
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
Our 5 guiding lights Integrity Passion Responsibility Quality Respect Humility despite Success
 

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Road ahead - Murugappa Presentation

  • 1. The Road Ahead…. Vision 2014
  • 2. The economic upturn has truly begun!
  • 3. The economic upturn * Based on CII projections 6.5%* Jan/10
  • 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. Expected Indian GDP (in Dollar terms) : $1.3 Trillion (2009-10)
  • 6. “ The crisis is no more than a temporary interruption in the financial market development of emerging economies” McKinsey Report on Global Capital Markets (Sep 2009)
  • 7. The India Advantage FDI Equity Inflow in US$ Mn* * http://dipp.nic.in/fdi_statistics
  • 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. 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. Bigger Investments Stronger Market Sentiments Huge Opportunities Looking Forward…. More Development
  • 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. 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. How do we Achieve ?
  • 15. Agility despite Size Humility despite Success Risk Assessment and Risk Taking Professionalism and Entrepreneurship
  • 16. Risk Assessment and Risk Taking
  • 17.
  • 18.
  • 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.
  • 22.
  • 23. At Murugappa Group Professionalism and Entrepreneurship
  • 24.
  • 26.
  • 27.
  • 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.
  • 31.
  • 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. Our 5 guiding lights Integrity Passion Responsibility Quality Respect Humility despite Success
  • 34.