Showing posts with label Dhirubhai Ambani. Show all posts
Showing posts with label Dhirubhai Ambani. Show all posts

Monday, March 18, 2013

B&E Presents India’s Fastest Growing Companies 2010

For many years people carped that Dhirubhai Ambani was less of an entrepreneur and more of a manager who ‘managed’ the environment to make RIL a success story. But the fact is that RIL grew and grew faster to virtually leave behind all venerable old business houses in the country in a jiffy and at the same time won the hearts of many, who invested their hard earned pennies in the company. And that is the truth.

Call it ‘irrational exuberance’ or simply greed, every investor at the market place, at all times, stays on a hunt to pin himself up to a new bee that promises to deliver some real quick honey. And that’s where the league of the fast and the furious prove there hegemony. They may not be necessarily big, but with their uncanny ability to fly as the phoenix, they become the darlings of the investors. So, if Benjamin Franklin believed, “Without continual growth and progress, such words as improvement, achievement, and success have no meaning”, for an ordinary market man, continual growth without the ability to outperform others does not deserve an action called ‘investment’. And this finally made us look for the bunch that drove investors crazy this year on basis of their fast track growth.

After considerable brainstorming and some number crunching (alright, we admit it: after a lot of number crunching and soul searching!), the editorial team at Business & Economy decided to seal this issue with a KISS! Before you get us wrong, our kiss harks back to that old cliché that says, Keep It Simple, Stupid! In this age of information overload and overdose, people often tend to forget that simplicity and brevity can never be matched by jargon and mumbo jumbo when it comes to explaining things. And the final pristine fact is that truly, there can be no other factor more important than the topline growth of a firm... across industries, across geographies. But then, growth can be deceiving as well owing to the base effect. So, while keeping our research confined to BSE 500 companies, and considering the growth in revenue between FY2009 and FY2010, B&E presents India’s 100 Fastest Growing Companies both in terms of relative growth (year-on-year) and absolute growth (additional revenue generated).


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

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Friday, November 02, 2012

SOME ANSWERS THAT WILL INTRIGUE AND STARTLE YOU

Both K. V. Kamath and Deepak Parekh won’t be around as ceos in 2010. Manish K. Pandey, Deepak Ranjan Patra and Angshuman Paul talk to people in the financial services industry to compare the legacies of the titans

At Business & Economy, we could not resist asking the inevitable question: Was Deepak Parekh really better than K. V. Kamath? Even five years ago, when HDFC appeared a little somnolent and ICICI was taking aggressive growth to new heights, the question would have been laughable (In fact, many die hard fans of Kamath in Mumbai still find the question outrageous!). We spoke to many senior and mid-level professionals in the financial services industry to get their opinion and verdict. Most were willing to talk; but off the record. But a sense of what a majority had to say about the duo can be gleaned from what Jagannadham Thunuguntla, Equity Head of SMC Capitals Ltd. tells Business & Economy, “Mr. Kamath and Mr. Parekh are two of the finest leaders that India has ever produced. While it is very difficult to pick the better of the two, the award should go to Mr. Parekh for the ‘quality growth’ that has been displayed by HDFC. However, one can’t take away any credit from Mr. Kamath as he was the man who has redefined how India has done banking.” A top communications consultant in Mumbai who has worked on accounts of companies belonging to both the HDFC and ICICI conglomerates disagrees violently. “Parekh has always been the establishment man; please remember he virtually inherited HDFC. On the other hand, Kamath has been classically entrepreneurial. Look at the value, the institutions, the wealth and the sheer number of jobs he has created virtually from scratch,” he says. According to him, Kamath is the Dhirubhai Ambani of the financial services industry in India while Parekh is more in the Ratan Tata mould (Incidentally, the personal favourite of Deepak Parekh when it comes to entrepreneurs is Dhirubhai Ambani!) We decided to check out some ratings and some statistics to compare the two legacies. Let’s take a look at ratings issued by Fitch Ratings.

The sovereign long term outlook for both ICICI Bank and HDFC Bank is negative. But if you factor in the parent company HDFC, the Parekh legacy appears much more sound. Here is what the Fitch report says about ICICI Bank, “…Asset quality is, however, deteriorating and could lead to a lowering of individual rating if the deterioration is significant…” On HDFC, the report says, “…ratings are driven by its strong performance and financial position which are consistently among the best for Indian banks.”


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
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