wnJ unuo.

]
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.'

business opportunities abound,

Whencompanies
the economy isbooming
with vision and
and ambi-
(; ~. {~
tion look for ways to fast-track to growth.
Forthe large, established ones, moving to
~~
/I

a faster lane is easier to manage. But fC?r

those with more traditional mindsets and '\.

organisational structures, this transition is

often a gamble and a difficult decision. If
. they do not do make this change, they
may continue to languish as an also-ran.
But ifthey are successful, they could cata-
pult themselves into the big league.
Indian Management profiles two case
studies of corporates with different back-
grounds that have embarked on this jour-
ney. Lessons from the management trials
and challenges from public sector major
,.' ',. .. ". ' . NTPC Ltd and realty-led DLFLtd.
:'
" ..

.• '1
~- .[~f1,'·"'\1:';~;~:/·
•~.~.. \ ,•..•~...'i..•~, . .~'i
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[THEME/MANAGING GROWTHI

I~
U
---,.. "'--'
--- ~
. -. t -

~. ~rOwT
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-- • A- ~~l '1-_

Despite vast opportunities in its existing

area of power generation, the company
chose a diversification gameplan with its
core under attack. Will its strategy pay offr ,
~ VANDANA GOMBAR AYYAGARY ,_ 01' "r.·:
:.;y'~"'., ':
J
gas blocks in the r.ountry, It's long term vision: ,
NT PC Ltd was not a traditi"nal to exrand globall \' to emerge as a "world class ••
front-runner in grabbing market op- integrated rower major with increasing global

Among portunities like some of the oil cu'11-

panics, the public
A few years sector maj,Jrs,
back, the cO! n-
try's largest power generator took signific Int
steps forward in that direction, The route: di-
versification,
Today, it is no longer only a thermal po \'(~r
company, It now has a presence - throllgh
wholly o\Vlwd subsidiari(~s - in hydro po \',~r,
pCJ\\',~rtrading and dislribution, It has also t, k(~n
Ii:lllati\',: sli:ps to hal"~:a fool in nUl:I,:;II' 1" \\',:1',
CCjII i 111111:111
ilia 1111 faciliri ng and 1)(J\\',~r(:xcha ng'~,
II ;lIr,:a,II' h;ls s,:\',:n coal Illin,:s IInd,:r ils lu:ll.
:\lId, Ihis Nanalll.1 COlllpall\' h;,s I,id 1'01 oil ;111<1 ;t!I,:r'j"L\'o UCl.lri, l'II\\,'r( :"nlp;III\', f--or".• I,:I,:c-
presenc(~,..
Along the way, to capture all these changes
and the fu ndanwntall y new character of the com-
pany, it also decid(~d to change its name from the
original Nalional Thcrmall'owl~r Corporation to
NTI'C Ltd,
'I()(la\', with ;o,!H)() mw of instalh~d capacity,
it accounts for al)(Jllt a fit'lh of till: instalh:lj gt~n-
,:ration capacil\' of abolll 1:I:i,()()() 111\\'across tlw
cOllllln', th'HI~~h il c<>Illrillllt,:S aholll :\() lu:r c,:nt
of tl)(: l(),,11p()\\'cr ,~~':III:['alo:dilllh,: C()I1IIII'\', II is
,lIso 111<' 101lrlh I.lrg'·sl,~'·II"ralillg':'Hllp,ln\' ill :\si;1

14 INDIAN MANAGEMENT. NOVEMBER 2007

/
'I
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•• •• I
I'
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..

".....

INt<5~E!
"
.••.•..•..

• NET PROFIT
' _.~--------------
...
.. RS 6,865 CHORE
tric Pownr and T"iwan Power. Since its incorpo- e:gtf.&.Ii£O:WE~7G~Ef.JE"~om~Ir®~8Dl~
ration in 1975, it has, some say, perfected the art • GENERATION CAPACITY 27,904 MW
of building and running power plants at effi-
.' .'1 >:)t~Ip';t)I'I-il~'
;;t.i~~!!!~J~~)~\t£t;t~l~i!A\iJ§.I~gAf~~qlJ~(··
ciency parameters which are held up as an ex- ,\_.\
(1\1

1 ample for the laggard state utilities. The plant load'J ".:;rt\~~
.. p',I;1,EJ':J.EM-T.!9N ~.PACfJ;Xi{lX~Q~~P;~.MW"·, ...... '<I
,_
I 1 factor (PLF) at its plants -essentially a measure ~'..~";_"'..'
'1~
of capacity utilisation - was at a high of 94 per .• EMPLOYEES CURRENTLY·' -: :;:}r.,"'~::~;f.:24.375
, <;~:!-~r.~·,·"':
cent in the coal-fired ones in the April-June q:tar- ~croREi5'SiJBSID~ARiES"!:N1'PG·EfEcrmC"SuP.PJ)
tel'.
~fCOM'PAN'/(10Q01o}7NTPCVfDYUT~i&'APAirN~~
But a f"f)\\'years after NTI'C ch ••rtered itself
out on a high-growth track after coming from be-
W{ioo~io)1;N~#eHyr;RO'tnt(1'06~~~~P.A-v.~~
,~~..~,... -I~-f:.~·' .J.~~
...- •... .... -".~:.:J,;11;:t-i--rl~~&:~~
1\~;' •..•.. \4 ~ .o.J+t;'l· .J"

hind. tlw kl)Y qw)stion is whether this strategy

has I)()l~nSUCCl)SSf"UI.Tlw vr~rdict: while NTPC's 1~f\GENERATING,COMPANY,LTD
f..~i~q~~ELqp,~.E.~J:.S9.¥r~~X~T.R
__ ~,,_"~ ." ~_•••.•.•..•• ~ L •.••. J.~~~%~);
.•
",,:-\..4~~ ••:,,..
(51Dfo~740/0P'~!. ~~~~}.IPq.~1
.•.~,,,,,,,,,,,,
&
.~ . ¥~.
powl:r gl:nr:ration story is cll)arly il1lpl"!)ssivI~,that • 8 JOINT VENTURES PTC INDIA LTD (8%); UTILITY POWERTECH LTO.
or its di\'I:rsiricatioll is. !1CJ\\'l)VI:r, llot so un-
(50%); NTPC SAIL POWER CO. (PVT.) LTO (50%); NTPC ALSTOM
I:qlll\'f)(:al. \\"hill) sonw analysts f"f:,d that it has
POWER SERVICES PVT. LTO (50%); NTPC TAMILNADU ENERGY CO.
I1f:':11 ollh' P;lj;! i.lih· SUCCI:ssh". tIWI"!)'U·f)t hosl: \\' ho
LTO (50%); RATNAGIRI GAS & POWER PVT. LTD ( 28.33%);
sa\' it has "1)1:':'1 a COIufJldl: failul"!:. 1\lld sonw
IIIII"rs add tholl it I1la\'I)I: II HI I:arh'lo jlldg':. \\'hal ARAVALI POWER COMPANY PVT. LTD (50%); NTPC-SCCL GLOBAL
tli":1 aI'" Iii" 1"S~fIlIS 11'11111 :'\:TI'(:'s slr;lll:g\' 01 VENTURES PRIVATE LTD (50%)
'1J,111.1~~ill~ ~!(J\\·tl! I

INDIAN MANAGEMENT. NOVeMBER 2007 15

....
~.••...
=:"'IE="'"''"'"'"--...~-,.---~
.>--'~,.,
. •.•.,,"''''~?
••.• ".!lml!!.
I:'~.,.~\'I'I'.;:1I~q_ ",,!F!\-:.III,;~~~~~I\III.~!R!
•• !I2~g8.~_I
.._~,I~I).;~'
.1,
--_.-.- - ",---'-'-'-" .. - ."".••..' .-.. , .. -, !.~,\;.-;.;~...••' ~:••.;' .. '

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[THEME/MANAGING GROWTH I

''''~)' ..... !~."~.; .'~'~

..' :.:,-',-,,~:~.,
':, .'
A."~r'"·.).·.·f)-.~"""'7;"tlt-f~~~~UA.\tt.f:
•• : :~ ..•..
•• _<..".i· ••• .\o- .•",.'i~'r_".i':'~'."'JJ'''.'
],I; •• '~ . . ~
·~:~~THE;.GRO,WTH,SPECTRUM
'f~~~'~,WILL~NOT
ONLY COVER
:Jk~~:CAPACIry;ADDITION BUT
~:·~,:~\·/t{WILtALSO
FOCUS ON
~. . ).'-; ..
\ ~"¥"'."rr!,~t1h'" ,,~ .. .., BACKWARD AND
, FOR\~'.~,RO 'r..fTFGRATION
~,." ,.. ALONG THE ENTIRE
rI?·'·_·~~""" .~:"~'4\"~_~':-

, ••.¢.t;:..,;. "ENERGY VALUE CHAIN

f/qJ;f}i~~!f}~~t.,
~J#~i.}iT~>SANKARALINGAM
(ft. ~~~~HAIRMAN & MANAGING DIREGOR
~.j~, ",' NTPC
-I}';.."': .,
h.•.. .~

n1'-~,
·"'L·'
(~"'" /I
.
i\.;t,
,',if·
;~:{)'
~

i>',: areas? In the case of NTPC, there is

, tep.oughscoP~ for growth in its area of
';- I~f:core competence - thermal power gen- :~
f'
"

eration. Over 70,000 row of power gen- 1

_____________
(
l'i
Diversification. under progr~~~:'"z:fit:a
~th,peak power deficits running at about 14 per .. ",'.1\'.01
While much of this diversification is currently
underway-coal is yet to be mined. for exam-
pic, and the enabling legislatio(l to all')w it an
f~ntry 'nto nuclear power is yet to be approved -
the wholly owned subsidiaries, as well as some
of the joint ventures hav(: been around for about
five years,
The question that Iw(~dsto he asked at this
point for a company \\'hos(~div(~rsification is still
\\'ork-in-progress is wlwtlll:r it should (:xpand in
its cor,: "perfeclt~d" an~a or \\'heth(~r it should di-
versify inlo ul1J'elated ;1\'I:as'lI':vI:n in diversifi-
cation, it is faced with !wu cllIJicl~s:Should it di-
\',:rsih' ,dong its '\'erlic;d" ai":a of 0p"Lltion which,
illl1\'IS! Las':s, would .dso I,,: its LiJl"i:t.llillpd.:nL\'
"I' sh"uld it di\·",sih hnri/"IILdh' ill!<1 um,,!..t,·d
. ; eration capacity that is proposed to be t
added over the next five years to meet 1
I
the country's "Power for AU" obligation
- the original target was 78,000 mw
which is in the process of being scaled
down to 71,000 mw - would ue Coal-
..J based, Another 82,000 mw is likely to
be added in the 12th plan (2012-2017).
cent duringsurrimertime.Accordingto its finance ,,' ;~
director A It isKaSinghal, the gapat between
sellers market this pointrequire-
in time ;~,:
~'
ment and availability of power has gone up from
7,8 per cent in 2001 to 9.9 per cent in 2007, rep-
resenting a huge growth opportunity. Besides,ln-
dia's per capita power consumption was a mere
G30 units last year ami the stated target is to take
this up to 1,000 units by 2012.
NTI'C has not had a problem with receivables,
unlike the state generators. and has been man-
aging to get ]00 per cent realisation of billing,
VVith dectricity regulators functional, both at
the C(mtrc and at state levels, and with the en-
ahl ing franwwork for growth of the sector in
plac.: --- 1':1.~ctricil\'I\cl :WO:J:Tlw National'li1\'-
ill I'ulic\' alu! nlldti-y"ar tariff regulaliuns -

16 INDIAN MANAGEMENT. NOVEMBER 2007 •

"'~~~~\>j~
-,,":,,""--;--"7,~--='\,~~~ .....
.'~)\(:'::':"" io..
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(THEME/MANAGING GROWTHI

Trading 500 mw renewable energy 2.9 billion tonnes

• Under wholly owned
subsidiary NTPCVidyut Vyapar
Nigam Ltd floated in 2002
•.......• • Net profit in 2006-07 at
Rs6.5 crore as against
Rs3.3 crore in the previous
year
• Third largest trader for the
last three quarters with
market share ranging from
11-23 per cent
". Hydro-power
• Target 2017 is 9,000 mw
• 1,920 mw under
implementation
• Agreements signed for
implementation of another
5,000 mw i
• Wholly owned subsidiary -
.NTPCHydro ltd ~ -'.floated in.,,.. :~.I~t~rn~~i~~.a.a.,.~?;it,:
2002
• The hydro ubsidiary is
currently running under loss
• Estimated production capacity
Distribution of 47 million tonnes per
• Projects under wholly owned annum by 2017
subsidiary NTPCElectric Supply • looking at acquiring coal
Co. Ltd floated in mid 2002 mines overseas;has formed
• Advisor and consultant to the joint venture with Singareni
Minsitry ot Power on ._ Collieries for the purpose
Accelerated Power • Partnering with SAIL,Cll, RINL
Development and Reform and NDMC in an SPVto
Programme (APDRP) acquire coal mines overseas
• Executing RGWY rural • Exploring coal mine ownership
electrification project in five
states
in Indonesia, Australia and
Africa, including South Africa
• Net profit in 2006-07
Gas
Rs2.9 crore against 0.5 crore
last year • Exploring options for
participation in gas value
• Targeting a car;-,acityof
·1:000 mw by 2012 and chain, including opportunities
2,000 mw by 2017 abroad
• Underaking spot-purchase of
~.;,~ ,lNq to.J1~.~~..j~:
,,~,;~,.~~.r~,~ga.s~lfi~.9.
'~c~1,;',,·r.f.h ~;;;"
• NIgeria -settmg up a 700 mw .. ' gas-powered plants "::{'::/:"'~" ," :;
. gas based plant and a 500 mw " . ··~I::":;i'r::,"'.1-~,~.. '.'.'> •• ,,~'-- •..•• ,
)
coal fired plant in exchange Equipment manufacturing' ~
for at least three million • To form a 50:50 joint venture

Nuclear
• Plansto set up 2,000 mw I tonnes
reasonable
of LNG
prices"
p2r year "at with
Engineering,
BHELfor Procurement
carrying out
through the joint venture • Sri Lanka - to set up a 500 and Construction (EPC)
route mw coal based power station activities
• Requires legislative changes ..•. SaudiArabia - Energy Audit ..• To acquire ~.6 per .cent stake .
.y

'. ,~ :~!:'?~.~;'i1
~_', ....•.
...• i,:,.w· t.."...:... ~.~uQ.a
' .... '~...\t'j':-
:t1<O
... t..~..•"\-,.~A;..;
-..••...::...~~..
.~1..:~~.., avei~ef;up:an,off!c
".; ?t...
-'._'#';
',' .::Or ...• :;;..'Io
:....' ~~c';~"~.':"'1..
..,-.':'·~t"'....;,~:#,
;:-or'..::;" .e.ralp.;ta
:$,I .;r."h'J._
'.;,...c','f, .••' •.••. .•.~<Tf~.~"..:'
E~
.._~_" "'M'·
.. t\I':'I"'t.~.,.r:-~~"'~~,
••..••.•• ;_ ~ ••...••.....•
2
-: . J.'
~

Renewable energy
• nod from
Plans 1,000the
mw
.. .. ,..-'"
government
;.}~':'.,1 ~~'
::.d~•.,:' :i:i~'iJij,~~~3<
',:..J rh:iJ:)YJ;Q~.'~9risult~r:t0'.
of new and·'·Coal···,',·
~~ i·~··,~···c'~·
•.•..
... ,..•_.• ~~~:~'~r'J':~
, . ' division:
'.'
.'"..•... .' i' ·,~·/(:/·,;'5J?l:;r;j~.i;·,~.:1;~~~Q:;~~·i~:·"~i~~~
~:~~~~.::'\ "\ .~,~~'\~~~Ii:!tIY~;;:;"'~,.q~
;:.':.::. ,.:;c~iJ')
. ".-:. Power
.. ~+':1.~~~1;)!
JralJ$.foiiners.ao.d:eJe~ricals··:!,
exchange" ....,; ", ~ I,:.
,
, t'! "( "-'1

renewable energy by 2017 • Seven blocks allotted cf which • Co-promoter of the proposed
• Signed an MoU with ADB for two will be developed in joint power exchange with NCDEX,
establishing a joint venture I venture with Coal India NHPC, PGClL,Tata Power and
company for generating I • Estimated minable reservesof PFC

111I:f'I,is 110d,:arlh or opporll:l1illt,S ror lilt: com· "",hilt: t:x(:ClIlil1g its di\'t~rsil'icalion plans." said
pall\' ",hich is WI pl:r c':111O\\'1lt:d 11\'lilt: glJ\" T Sal1Llralingalll. chairman & managing di·
,:;'111111:
11\. n'ctor. i\'TI'C. This is qllit(~ all alllbitiolis targt~t
\k;lllll·hil". Ih,:rl' S"I,IIIS III lit· 1111 I,:t'lip ill gi\'t~11 Il1al tht: COl1lpal1\' has l11anag,~d abollt
I iii' 1'\II.I1I-;i'JlI or lilt, ':1111111.1111'-; 1""'1' hw;il1''.';';. ,tlli'lIl ~7.{){)(l1111\·"rC;II)oIl:ilv il1IIH: lasl :!O-odrl
II :11(':1111,. :11 1.t'IiP 'IP I', 1"'1:,1111" .I .'dJ.{HHI 111'.1' 1·t:oIr.;.'1'11,'L!IIIIP;IIII' il1llfllds 10;1I:l1i,~\'(:Ihis \'ia
'"llq'.t111 1,,'11\1''ffld ,i! Iii,' 1111i1'1.1111~IIIJ~,':III':1 .'.:I'·I'llIi,'ld .IIIIIIJI'II\\'I1 li,·ld prllj',cts. j"il1t \',:n-
11\ ,jddill.~ ~1\'I:r~~.IIt)(1 ]11\\ dliril:~ IIJ" ill'lill,! III:'''; ,111o!.,\,"I! oIt'IJI:i-;ilillil" II is .ds') plal1l1ing

18 INDIAN MANAGEMENT. NOVEMBER 2007

/

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...
r
~.,~-",,!,.,'"'r!
 ____ "~,,,-'-"'4IIL __• _ .. ;:~~(~

[THEME/MANAGING GROWTHI

l'

1
s,

,
1
i'I
GROWTH IS A
nloL.l lei',
S"-'~'--
UNDER WHICH
THERE IS TIME
FOR YOU TO
BUILD
COMPETENCIES
~ IN RELATED OR
UNRELATED
AREAS

ARVIND
MAHAJAN
EXECUTIVE DIRECTOR

KPMG i
i
\

·:.;:r3',;~'''-1-:.~...

survival ami thriving depcnds on divcrsification

NiPC is making a strategic entry into into unrelated arcas. He says, "The growth spec-

cQal mining, driven by the objective of ",'

l'
\..
, is its core growth area, but will also focus on back- ,
ward and not
trum wiil forward integration
only cover capacityalong the which
addition entire ~
ensuring fuel security, deriving cnergy valuc chain, commencing upstrcam with
economy and stability of pricing co.:1 mining and culminating nownstrcam into
dil'l~cI salt~s to UJI1Slll1l1:rs,"
Is that a sOlilld strategy? Why docs a com-
to tap opportllnltll~s in tlw dl:l'I:glllatl~d sP.g- pany likl~ NTI'C ch:lnse to diversify into untried
nwnt uf tlw I)()\\'t~r market which wOlild IH~fn:t: and lIntr~stl:d an:as likt~ distribution (direct sales
fro/l1 priet: J'I~glllation, It is planning to sd lip to cllstollwrs) or 11\'dlo p()\\'I~rgl:lwration- which
alJOlit L,OOO /11\\'of nwrchallt plant capar:itv ill is a cnmpldl~h' diff,:n:l1t hallgame from thermal
tlw 11th I'lall, II \\'ill also cOlllll1issiollllw first IHIIV,:r - 01'nll<:lear IHIIVI:r, or pOIVer equipment
high-dficil:llcv slllH~r criticailinit in thl: first m;lnllfaclllrillg, \\'111:11tlwn: an~ enough oppor-
half of 2(JI)l1. 11IlIitil:s 10 gro\\' fast ill its con: im:as'!
"'I is ri,s\.; Illitigatioll."' ,:xplains Shuhhran-
Unrelated ,HCilS shll I'atllai\';, "\I'l"1lli\'I: dirl"'tor I'riCl:wall:r-
OIl

1If'II:;I:( :'"'1"'1" I ;"lliII:~ il1!o tilt: ()\\'III~rship alld

IjIl1 T :;oIlll.oIl,lIill!:oIl1l, 1/\1' 1:1I,lilllloill ;111<1 111,111- IILIIIa:,I'IIII'111 ,,' !IIIIII"., 11I11'\alllpl,l, lIlt:illlS thii!
;!,~~111,~ ,!irl'( 1111' Id 11\1' 1;1111111.111\' IlI'li!·\·t~~; Ihd! i!s '\'1'1'(: d'"'.'.I!''' h,l\"",1", a: Ih,: 111<:1,:\' ofe:!,;11

20 INDIAN MANAGEMENT. NOVEMBER 2007

':"'44. _' ••••

:~ •• ~
~

NTPC intends to r~mp up to be<:omea was 88 per cent of the operations related ex-
penditure in 2006-07.
50,000 mw company by the'elid of the
11th plan (2007-2012) by adding over Core under attack?
'~
22,000 mw during the period The diversification however could also be an ac-
knowledgement of the inroads the private play- ;1
ers have managed to make into what was essen- .,'
India LId (CIL) to ensure performance in their tially considered to be an NTPC and state utili- f,

core business of power generation, In fact. given ties turf - the setting up of mega power plants.
tlw ilwffici(~ncies il'!wrent in the operations of In a bid to fast-track capacity addition, the
CII., it may mop up an efficiency dividend from government came up with the idea of setting up
t Iw in-houst~ mini ng operat ions, 4.()()() mw ultra mega power plants across the
Tlwn~ is also an incmasing gap b(~t\\'e,~n the country on a public-private-partnership (1'1'1')
demand f,Jr and supply of (domestic) coal inllw basis. Shell companies have been fl()atl~d und(~r
country - its key input. NTI'C, which is part of the alllbit of Power Finance Corporation for each
tlw ]()-share st:nsiti\',: intk, (St:ns,~x), had to n:- projl:ct. Tlwse companies secum the initial set
sort to imports of 2,·!:! inillion (OIllWSof coal in of clearances, approvals and linkages for the
~1)()(;-()7, Though t~xpt~nditul"f: un fwd is allom:d proji:d which is tlwn handed over to a private
to lit: pilssI:d through to till: cuslon1o~r, i\'TI'C is s(:dor d(:v,dop. The dt~\'ld()p(~r is selt~cted on tlw
11J.lkill'..:a "stralt:gic t'lIt",' into co,tlluinin'..:, dri- iJilsis of a transpart~nt proCI:SS or tarill-bas,:d
""111,\' II)!' Id,il:,:ti\'t:lllt:llsllri,l,g IlIt,1s,:cllri:,'alld t:olllJ",titi\'t: Ilidding, '1'110: first two of tlwst: prl'-
d"I'i, ill,:, ':1.11110111\' allil stallilil\' ,J! pricillg," ,;aid jl:ch a\ S;lsall and t\lulidra hil\'1~ ;drt:ad)' IIt:en
S,lllk,lr;tlillg.llll.l;witlt'llt.tlh', '''IWl1diIUlt't,,1 tllt,1 ,tll'ardt:cI,

22 INDIAN MANAGEMENT. NOVEMBER 2007

...-.--- .. , .... ,'-,J ,

, . .,..~~,!,.,.4t\?S!.
:" ..
 .:-.

i
I
!

Leveraging the cor~

Diversification also leverages the core Diversification also leverages the core strength
~
strength of NTPC- proje~ of NTPC- project management - and promises
more bang for the average buck. The company
management - and promises more has a strong balance sheet and is confident of
mobilising funds required for growth "at optimum
bang for the average buck cost." NTPC, which generated a net profit of Rs
G,BG5 cram in the last fiscal year (7.00G-07) on
revenues of Rs 35.31\1 cram - is seen as one of
\Vhile Mundra will house a thennal projL'Ctbased the best companies as far as project management
on imported mal. the pithead coal based Sasan pro- skills an~ concerned, These managenwnt skills
ject was right up NTi'C's alley. Prior to the bidding. can be strapped on to Illultipl(~ busin(~sses along
most market observers t~.'\pectedthe com pan\' to uag the energy value chain, be it hydro, rerwwablt~
the project but NTI'C's bid to sllpply pO\';(~rat over power or nucl(~ar pOWI~r. They will of course
Hs2 per unit '\'as astoundinggiv(~n that ~he\':inning l}t~(~dto pick up new skills in busirwss(~s lik(~ dis-
bidder quoto:d a ll:vdisl~d tariff of I\s 1.1 % p(~runit tribution, whert~ they will have to maslt~r retail
of pm\'I:r, 111~n~ was a companv whieh had ht~t~nin custol1wr managenu:nl. Bllt oWl1illg SI)(l1t: ells-
Ilw III"illl'~~ III 1'\IIIIIill~:1"1\\'1:1' pl'lIlls "dfici"I1II\'" 1011 WI'Swould III: al1upsid(~, "TI)I~y al'f~0111111: righl
IJllldl'lW III' SIIIO"II'r,\">llllg,:r and ilion: lIill1hlt: ri· 1';1111,"Sd\'S ".lIl1aik,
\ ;,k '1'11;11••ti,.,cI '111,:sl
i'>lI,.iI" >IIIit,;II >1111
1I'IIIII'1'III:SS So 111':OIrglH:110.11 il is IIl1m: il1!J":r;ili\'I: I",
ii, ih I III" 01"'01 SII IIII' :""'elllI cI"l'\sk, C:C"I'pdl,io:~,11Icli\":rsih' II' I"ISIII" Ih;1I dO\\'1101

24 INDIAN MANAGEMEN! • NOVEMHlR lOU/

I
/

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ITHEMEI MANAGING GROWTHII

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i"~'t;~:k };:~':';'MAJOR ..,MILESTONES-
:)4"':!~i,,;:.\:':·"i ~'••• ' ,
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n~~j~:,.•.; •••

• 1975 INCORPORATED AS A WHOLLY OWNED

GOVERNMENT COMPANY

.':.'. 2..0.0.4"'[JST~'10N;,.ri~.
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1'~'l.I"'t~"~"iI:~:1-"l~~;~~\11,jr."1!trr:
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RSE
..+i.1fo~~·"W~'~
· 2005 RECHRISTENS ITSELF AS NTPC LTD FROM
NATIONAL THERMAL POWER
CORPORATION LTD AS IT TRANSFORMS
FROM A THERMAL POWER UTILITY TO
AN INTEGRATED POWER MAJOR
. .\••.,.••.. ~"",.;or: •.•. ,,~.•

tor at KPMG. The Indian cconomy secms to be

riding a speed boat offering many growth pock-
Cts and companies are making t he most of the op-
port~lI:ities thai are coming tlw;r way.
"Growth is a sbelter undnr which there is
Iurn in one business is compensated by an time for you to build competencies in related or
gth upturn in another. "It is a long term survival unrelated ar{;as," says Mahaja: I. This is what was
,ses strategy," says one management theorist. seen in the United States in th ! 1960s and 1970s.
In)/' . Though government projections indicate a Every company was in evcry ( ther business - re-
tot'" power surplus country in thc 'next five years, lated and unrelated. This dive 'sification strategy
,um it could take perhaps ten yea ..s if OIW accounts however becomes a drag on corporate growth
Rs for t!w usual slippages, Smart management when the economy moves to a :lower growth path,
on would diversify into oth(:r high-growth and Wben the economy shifts ge; rs and moves io a
, of high-lIlilrgin areas, lowcr gear. tvlahajan expects I veryone to be in
II:nt (;olllpani(:s across sectors are diversifying-' restructuring mode. That is \V Icn real capabili-
ills [11;111\'
tinH:s into ul1rdated husincss(:s -- at hrnak- ties [n~ad COI'(~ cOI1lpetencie" will l)(~ closdy
, ql1g lied; ';P':I:<i, Construction cOlllpanies. lib: I~lrsv- looked at and areas wlwre a c 'Il1pany is clearly
,hit: Ilillk I initech, Omax,: and i)I.I'~;\1'\:gr:tling into hd((~r than otlll~IS \I'i!) be idelitil'ied,
:rsp lell:',:OIUs/:!'\'iu:s. llealthcan: cOlllpanil:s an: gd- The \',)rdicl: while the <iiI' ,rsifications hav(~
di~- lill,l~ ::JI,) linancial sl:rviu:s, !'droc!lI:uI and pc- ll1anag,~d to f;,st-track Nll'C ~'II' tl\l~ 1l1Onwnl, it
I.lil IrtJl~'lIlll cOlllpani/:s an~ g/:tting into the rdilil husi- b still too (:,II-!:-'in its life eye! , to give ,\ definite
tlS~ [It,S, '/i:!':uJllI cOlnpanil:'; al(' g"lIing into ;Igri- \'ie\\' 011 \\'lid11l!1' it ShOldd I, Ive roclIsI:d on its
tj ~ 1:,111
1<,;
I [I
J.
l,ill[[r" ,11,,1insllr;ulu" '1'111:hig cOrp()r;I!I' groups ('lJrl~'11'111)1.
(:rtlci;dL, !JII\I' it 'ndnagl~s tlh~ do\\'n-
d III,' I 1)1i1lt['\ ;\1'(' oln'ioush' (1[1 a di\e",;ili(;di'lll :t~:'i1' \', :!~ir1 :f11' ItJ:1.i:·t~ \\'il! hf~ ;!JI il1dic~d()r Oil
'jill'" d"l dr!~ 1111' .''';I!lid!i~j'(IIJt,'l'. "It i~;1 rlliH:!i,l/~ IJf \I'Ii,~Ii1"1 :11<" '.J['[I'I~! :1111\'"S \\'iJlild hal'{' paid (Iii
',)(1\\ 11!' :~d\'< :\I'\°iIH!\t:dldj;jjj !~\"(:ii{!\'I: t!irt'( ())' !11\1.-

,JOU} INDIAN MANAGEMENT. NOVEMIEH ZOOl 25

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