Business Today 210110

businesstoday.
in YOUR MONEY IN 2021
OC
January 10, 2021 `100
sPECIaL IssUE
ThE BT-PwC sTUdY Of OUTsTaNdINg

PERfORMERs IN INdIa INC ThROws UP a hOsT
Of fIRsT-TIME wINNERs
from Left: Sanjeev Kumar, Gujarat Gas; Gurdeep

Singh, NTPC; C. Vijayakumar, HCL Tech; Sanjiv
Mehta, HUL; Rajesh Gopinathan, TCS; Nikhil Nanda,
Escorts; DC Mehta, Deepak Nitrite; Premchand
Godha, IPCA Laboratories; Ashish Bharat Ram, SRF
From the Editor
http://www.businesstoday.in
Mettle Of The Best CEOs Editor-in-Chief: aroon purie

Group Editorial Director: Raj Chengappa
2
Editor: Rajeev Dubey
Group Creative Editor: Nilanjan Das
020 was indeed a reset year — as much for India Inc. as it was Group Photo Editor: Bandeep Singh
Executive Editor: anand adhikari
for the world. It reset work as WFH got a new dimension. It reboot- Deputy Editors: ajita Shashidhar,
Naveen Kumar (Money Today)
ed strategies as firms had to scramble to deal with lockdowns and
special projects and events
unlockdowns. It recast technologies, giving rise to new winners. It has re- Senior Editor: anup Jayaram
set education, healthcare, travel & tourism, financial services, insurance correspondents
and a host of other sectors. All these put to test the mettle of the country’s Senior Editors: p.B. Jayakumar, Nevin John,
Joe C. Mathew, Dipak Mondal, Manu Kaushik,
best CEOs and their leadership skills. Sumant Banerji
Associate Editor: Nidhi Singal, Nirbhay Kumar
So when this year’s Business Today jury — comprising Ashu Suyash, MD Senior Assistant Editor: Sonal Khetarpal
& CEO, Crisil; Cyril Shroff, Managing Partner, Cyril Amarchand Man- consulting editor: Rukmini Rao
galdas; Harsh Goenka, Chairman, RPG Enterprises; Raamdeo Agrawal, research

Chairman, Motilal Oswal Financial Services and Zarin Daruwala, CEO, Principal Research Analysts: Niti Kiran, Shivani Sharma
Standard Chartered India — met to select the winners of Best CEOs of In- copy desk
Senior Editor: Mahesh Jagota
dia Inc. they looked not just at the past but also the present. Especially, the Associate Editor: Samali Basu Guha
Copy Editor: aprajita Sharma
Corona times.
Their choice of the ‘Champion of Champions’ for 2020, Reliance In- photography
Deputy Chief Photographers:
dustries Chairman Mukesh Ambani, reflects a pick who has made the Yasir Iqbal
Principal Photographer: Rajwant Singh Rawat
elephant dance, changing the course of India’s largest firm from a largely
B2B enterprise into a predominantly B2C firm in just three-four years, art
Deputy Art Director: amit Sharma
spawning two giant new businesses in telecom and retail. Both are mar- Assistant Art Director: Raj Verma
ket leaders in their sectors. production

Chief of Production: Harish aggarwal
K.V. Kamath, the institution builder got the jury’s nod for Lifetime Senior Production Coordinator: Narendra Singh
Associate Chief Coordinator: Rajesh Verma
Achievement, having built ICICI into a financial services behemoth be-
fore founding New Development Bank, the BRICS Bank in Shanghai. For library
Assistant Librarian: Satbir Singh
a while now, Kamath is rumoured to be in the running for a significant role
Publishing Director: Manoj Sharma
in the Union Cabinet. Associate Publisher (Impact): Vidya Menon
And even though the Best CEOs in this issue were rated on their past impact team
Senior General Manager: Jitendra Lad (West)
three years’ performance until FY20, the direction they have provided to General Manager: Upendra Singh (Bangalore)
their respective organisations has already set the pace for 2021 and beyond. Deputy General Manager: Indranil Chatterjee (East)
HUL’s Sanjiv Mehta has steered the FMCG giant towards recognis- Marketing: Vivek Malhotra, Group Chief Marketing Officer
ing the many India’s within India. It turned out to be a key differentiator. Newsstand Sales: Deepak Bhatt, Senior General Manager
(National Sales); Vipin Bagga, General Manager (Operations);
Another FMCG major Nestle’s CEO Suresh Narayanan has refocused Rajeev Gandhi, Deputy General Manager (North),
what was largely an urban-market organisation into India’s hinterland, Syed asif Saleem, Regional Sales Manager (West),
S. paramasivam, Deputy Regional Sales Manager (South),
expanding Nestle’s distribution points by one-third to 12,000 within piyush Ranjan Das, Senior Sales Manager (East)
two years, making a Bareilly or Gorakhpur as critical for the firm as the
metros. The number of villages catered has trebled to 90,000 in a year Vol. 30, No. 1, for the fortnight December 28 2020 to
January 10, 2021. Released on December 28, 2020.
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Road, Ahmedabad-380006; Tel: 079-6560393, 079-6560929; Fax: 079-6565293; Kochi:
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Editor: Rajeev Dubey
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January 10, 2021 Cover by
Volume 30, Number 1 NilaNJaN das
26
INDIA’s
BEsT CEOs
BT-PwC sTUDY IDENTIFIEs THE
OUTsTANDING PERFORMERs
OF INDIA INC
6 Business Today 10 january 2021 illustration by raj verma

Institution Builder The Caretaker Growth Architect
K.V. Kamath, Former Alluri Indra Kumar, Suresh Narayanan,
Chairman, New CMD, Avanti Feeds. CMD, Nestle India
Development Bank Pg. 70 Pg. 104
Back From The Raising The Bar

Brink C. Vijayakumar, CEO,
HCL Tech
Nikhil Nanda, CMD,
Escorts Ltd Pg. 110
Pg. 74
Pg. 30 Full Throttle

Best Yet To Come Sanjeev Kumar, MD,
Aditya Puri, Ex-MD , Gujarat Gas
Mercurial Transformer
HDFC Bank
Mukesh Ambani, Pg. 80 10
CMD, RIL
Pg. 38
Cementing Gains The Point
Universal H.M. Bangur, MD ,
Reinventor Shree Cement Ltd. Not A Pretty Picture
Pg. 84 Pg. 114 The output of most sectors
Rajesh Gopinathan, has been way below par
MD & CEO, TCS during April-October. Only a
Pg. 46 The Chemical Man few, such as agriculture and
The Pain Controller
D.C. Mehta, CMD, pharmaceuticals, stand out as
Premchand exceptions
The Ceo For All Deepak Nitrite Godha, CMD, IPCA
Seasons Pg. 88 Laboratories
Kenichi Ayukawa, MD Pg. 118
& CEO, Maruti Suzuki Self-reliant
India Ceo eye on 128
Pg. 50
Anil Rai Gupta, CMD , The Future
Havells India Gurdeep Singh,
The Pg. 92 CMD, NTPC Money Today
empowerer Pg. 122
Sanjiv Mehta, Quality Stocks
Quantum Leaper Hold Key
CMD, HUL
Rajeev Jain, CEO and CoLUMn Expect a ‘rally in stocks’, not
Pg. 58
MD, Bajaj Finance Reinventing a ‘rally in the markets’; IT,
Pg. 100 Businesses pharma could be the best bet
Coach and Captain By Deepak Malkani
Ashish Bharat Ram, Pg. 126
MD, SRF
Pg. 64
136
Network
businesstoday.in Sporting Adventures

As India began to enter the
unlock phase in June, Bata’s
newly appointed Global CEO,
Sandeep Kataria, took to
learning paragliding
STAy CONNECTED wITH US ON

www.facebook.com/BusinessToday@BT_India 138
Best Advice I Ever Got

An Feature
From time to time, you will see pages titled “Focus”, “An "The choices you make
Impact Feature”, or “Advertorial” in Business Today. These determine how far you
are no different from an advertisement and the magazine’s
editorial staff is not involved in their creation in any way. will go“
Anand Kripalu
8 Business Today 10 January 2021

The Point
NOT A PRETTY
PICTURE
The output of most sectors has been way below par
during April-October. Only a few, such as agriculture and
pharmaceuticals, stand out as exceptions
By SHIVANI SHARMA
Graphics by TANMOY CHAkRAbORTY
Passenger
-34.6 Vehicles
Commercial
-57 Vehicles
Fertilisers 4.1 Two-Three SERIOUS
AUTO SEES
Wheelers 32.4
DECElERATION
Agrochemicals
SECTORS
13.4
bOOST FOR
FARM/AllIED
-53.8 Refrigerators
FEw
-79 ACs
Drugs and
DURAblES
CONSUMER
TAkERS FOR
Pharmaceuticals 16.1
PHARMA:
bIg RAllY
DRUgS AND
-39.6 Cotton Yarn
Milk 9 Apparel
SHRINk
-43.7
bIg TIME
TExTIlES
Vegtable
Oil
FOOD
RETURNS
APPETITE
Steel
PRODUCTS:
Sugar 14.7 -22.8
-3.6 Coal
THE bAD...
Y-o-Y Growth (%) April-October

Y-o-Y Growth (%) April-October
Soaps -4.5 Aluminium

9
-21.3 Copper
CHARgE
Detergents 4
NEgATIVE
…AND THE NOT SO bAD

-0.1 Zinc
METAl & MININg:
-8.6 Toothpaste
Lead
DO wEll
10.4
NON-FOOD:
ESSENTIAlS
-1.5 Hair oil
Hair 12.9
Shampoo -6.3 Crude Oil
-12.2 Natural Gas

OIl &
Refinery
MAjOR
REFINERY:
-16.4 Products
SlIPPAgES
The Point
non-Petroleum total
Nov FY20
22 -5.5
Nov FY20
Exports Dip total
38.5
27.5 Nov FY21
-12.8
9.1%, Imports
33.4
22 -5.2
-9.96
Nov FY21
27.1
Down 13.3%
25.8
23.4
non- Petroleum anD
non-gems & JewellerY
î India’s merchandise exports
fell 9.1 per cent to $23.4 billion Nov FY20 19.4 -3.1
in November compared with 1.2
per cent fall in November 2019; 22.4
month-on-month (MoM) fall was
5.1 per cent
19.3 -3
Nov FY21
î At $33.4 billion, merchandise

imports were 13.3 per cent 22.3
lower than in November 2019
and 11.5 per cent less than the Exports Imports Deficit $Billion; Source: DGFT
previous month
FDI InFlows GST Collections

HIgHest In Rise 1.4%, Cross
FIve Years `1 Lakh Cr Mark
î Goods and services tax (GST) collections
î In first rose 1.4 per cent to `1,04,963 crore in
half of FY21, FDI InFlows November; collections topped `1 lakh crore
FDI inflows, ($bn) for second straight month
comprising FDI î GST collections had crashed to an all-time
equity inflows, 40 low of `32,172 crore in April, the first month of
re-invested the lockdown
earnings and
other capital, FY20 FY21
were highest 30
in the past five 1,20,000
years
î In H1FY21, FDI
20
inflows were
90,000
$39.9 billion, 14
per cent more
than $34.9
10
billion in H1 60,000
FY20
gst ColleCtIons
î FDI inflows (`crore)
have grown at a 0
CAGR of 8 per 30,000
H1 FY17
H1 FY18
H1 FY19
H1 FY20
H1 FY21
cent between
H1FY17 and
H1FY21 0
April November
Source : DITT
Source : GST Council

The Point
Domestic Air Air Cargo

trAffic At 50% Traffic Close to
of Pre-coviD Pre-Lockdown
LeveLs
î Daily domestic air passenger traffic
surpassed 50 per cent of pre-pandemic levels
Levels
in November, according to Ministry of Civil î Air cargo traffic rose from 2,39,000
Aviation data; traffic rose 16.5 per cent tonnes in September to 2,59,000
month-on-month in first 25 days of the month tonnes in October. This was close to the
î On November 25, footfalls at airports pre-pandemic level of 2,67,900 tonnes
touched 4,77,254, up from 3,41,000 on in February
November 1. One reason for the pick-up was î However, Y-o-Y, it was lower by
festive season 13.9 per cent; it had plunged to an all-
î The uptick started in October, when number time low of 7,300 tonnes in April
of passengers grew 32.6 per cent MoM
Air PAssenger Air cArgo

trAffic trAffic
(’000) (’000 Tonnes)
0 0
,0
35
35 0
0
0
,0
30
30 0
0
0
25
,0
25 0
0
0 0 Apr., 2
., 202
20
,0 019
0 Oct
20
0
00
15
,
0
1 5 0 Oc
0 9 t.,
01
10
,0 20
., 2
0
10 00 r 20 AI
50
0 p :A
5, 0 A rc
e
0
u
So

The Point
Lower Input 60
Costs Behind
50
40
Bumper Profits
î The corporate sector’s profit after
30
inpuT CosTs as
% oF sales For
non-FinanCial
Companies
tax rose 38 per cent in quarter ended
20
September despite a 6.9 per cent dip in
total income Source: CMIE
î The reason for the stellar performance 10
after four quarters of negative growth was
sharp fall in input costs as percentage of
sales; the metric has been declining for 0
two quarters now March, 2020 September, 2020
Gems &
î Aggregate revenues î Revenues of
of the gems and PC Jewellers and
jewellery industry Tribhovandas Bhimji Zaveri
Jewellery fell 67.3 per cent in

September quarter
fell 66 per cent and 30.5
per cent, respectively.
Firms Take
Titan reported a dip of 2.6
î The reasons were
per cent
fall in demand due to
a HuGe HiT
lockdown and high î Industry revenues had
prices of precious fallen 85 per cent during
metals the June quarter
sales y0y (%)
40
20
-20
-40
-60
-80
-100
Mar-19
Jun-19
Sep-19
Dec-19
Mar-20
Jun-20
Sep-20
Source: Industry Outlook
10 January 2021 Business Today 21

The Point
IBC Cases
CumulatIve numBer of
CIrps admItted
fall due
5,000
to CovId 4,000
exemptIon 3,000
î The number of cases
admitted for Corporate
Insolvency Resolution Process
(CIRP) showed a sharp fall in 2,000
H1FY21 (161 cases) compared
with H1FY20 (889 cases)
î This is due to suspension of
fresh bankruptcy proceeding 1,000
for defaults due to Covid-19
disruption
Source: Care Ratings FY17 FY18 FY19 FY20 FY21
Mixed two-wheelers
15,94,304
November three-
For Auto
wheelers
15,437
Sector
î Two-wheelers: Domestic sales
15.9 lakh units (13.4 per cent YoY
and -22.1 per cent M-o-M)
î Three-wheelers: Sales at
15,437 units (-60.2% YoY and
-6.3% M-o-M)
î Commercial vehicles: 61,392 passenger
units (-3.0% YoY and -1.8% vehICles
M-o-M). 2,72,102
î Passenger vehicles: 2.72 lakh CommerCIal
(10.5% YoY and -14.2% M-o-M) vehICles
Source: Care Ratings

61,392

IndIa’s Best CeOs: lead essay
Staying
On Top
How INDIA'S BEST CEos ARE
steerING theIr compaNIes
throuGh crIsIs aND chaos
By RAJEEV DUBEy
IllUstRAtIon By RAJ VERmA
ost young executives dream of making it to the corner room one day.
A vast majority never gets to the top job of a CEO. But for those that do, life
could be lonely at the top, even frustrating and disappointing at times while
searching for the right advice or advisors. Especially dealing with multiple
stakeholder expectations and scrutiny ranging from the company’s board to
shareholders, suppliers, employees and customers. Coping with the role is not
easy. A PwC study of 2,500 companies over the years shows that at least one-
fourth of CEO departures in Fortune 500 companies were forced.
So, how do the most successful CEOs manage their companies? Harvard
Business Review’s CEO Genome Project spread over 10 years set out to pin-
point the specific attributes that define high-performance CEOs. It broke
many stereotypes. For instance, while company boards often preferred
charismatic extroverts, it was the introverts who were more successful at
delivering on expectations of shareholders and boards. It found that edu-

IndIa’s Best CeOs: lead essay
cational background was no guarantee dustries into a consumer-focused entity.

of success of the CEO when put through In the process, Ambani has creatied two
the pressure-cooker role; that most suc- giant organisations between Reliance
242
cessful CEOs had committed at least Jio and Reliance Retail that are disrupt-
one significant blunder in their previous ing their industries at an unprecedented
assignments. pace. And he is set to leave a legacy of his
But, most importantly, it found that companies that own, quite distinct from that of his illus-
qualified for the
successful CEOs displayed four key char- trious father.
study. Last year,
acteristics: They moved with speed and When Suresh Narayanan was tasked
it was 240
conviction; they took others along and with the job of leading Nestle India, he
communicated their vision effectively; was airdropped into resolving the biggest
they adjusted rapidly to the changing en- crisis of confidence Nestle was faced with
vironment; and, foremost, they delivered in 2015. The firm’s flagship product Maggi
reliably — rather their performance ex- Noodles was alleged to be adulterated.
cellence was almost mundane. Narayanan not just fought through the
20
Pick any of the Business Today Best crisis with tactical poise but converted
CEOs of 2020 and you can reflect those the crisis into an opportunity to trans-
qualities in them. Aditya Puri, the for- form a staid organisation. Nestle’s digital-
mer HDFC Bank Managing Director & companies from first strategy is not limited to marketing
CEO, for instance, delivered superlative banking, financial and advertising. It has instead digitised
services and
financial performance of 44.3 per cent the firm’s distribution and supply chain
insurance sectors.
CAGR with almost boring, monotonous infrastructure as well. T-Hub is a digital
222 were non-BFSI
consistency. Having built India’s second platform that optimises the availabil-
companies
largest bank from scratch, Puri remains ity, dispatch and resourcing of logistics.
one of the country’s most venerated “During the pandemic, there were block-
CEOs across generations, but he himself ages in certain areas and shutdown in oth-
admires three giants: Jamie Dimon, CEO, ers. All that was built into the algorithm,
JP Morgan Chase, for building it into the largest and one of which would come up with optimal routes.” Coming next
the most reputed banks in the US; Satya Nadella for chang- is an app to onboard Kiranas digitally. But an even bigger
ing the culture at Microsoft and Mukesh Ambani for recre- impact has been enhancing Nestle’s primarily urban foot-
ating Reliance. Puri believes he has laid the foundation for print. When Narayanan took charge, Nestle predominantly
decades of sustained growth at the bank. “If you go back to catered to urban consumers. Five years since, consumers in
7-8 per cent GDP growth with the distribution network that Tier-II and III cities are the mainstay of the Swiss FMCG gi-
we have, you will be amazed with the results,” says Puri. ant. “For me, places like Vizag, Bareilly and Gorakhpur are
If Puri set the pace with remarkable consistency, Maru- equally important and are not mere distribution points.
ti’s 65-year-old MD & CEO Kenichi Ayukawa is no different. In 2017, we had 9,000 distribution points, today, we are at
The 18 per cent shrinkage of India’s automobile industry in 12,000. A year ago we were covering about 30,000-40,000
FY20 posed one of the biggest challenges in Ayukawa’s sev- villages. Today, we are covering 90,000 villages and the
en-year stint at Maruti, but Ayukawa consolidated the Japa- vision is to take it up to 120,000,” says Narayanan. The en-
nese small car maker’s market share from low 40s to over 51 hanced penetration into India’s hinterland has been backed
per cent — the highest enjoyed by any major car maker any- by a brand new product portfolio. As a result, 60 new prod-
where in the world. “Fiscal year 2019/20 was no doubt a very ucts have been launched in the past two years.
challenging year,” he says. “There were many headwinds or We also profile our Lifetime Achievement Award win-
changes in regulations, be it for safety or emissions, which ner K.V. Kamath, who built financial super house ICICI
made vehicles more expensive at a time when the overall Group in India, and went on to head the new multilateral
economy was not so good and consumers had less cash,” development institution New Development Bank head-
says Ayukawa. But Maruti’s share has barely dented from quartered in Shanghai. A global recognition to a CEO who
51.2 per cent to 51 per cent. worked all along in India.
Then there are those that changed the course of their Leaders such as Puri, Ambani, Ayukawa and Narayan-
organisations. Business Today’s Champion of Champions an are more the norm than exceptions in this year’s rank-
Mukesh Ambani was picked by the jury for the unbelievable ing. Their tenure and scale of operations may wary but their
metamorphosis at Reliance. From the days in 1997 when impact goes beyond their companies into the sectors as
he took up his father Dhirubhai’s challenge to pull off the well as corporate India. Read what makes India Inc.’s Best
construction of Asia’s largest refinery at Jamnagar in 24 CEOs tick in the following pages.
months (much less than half the 60 months such projects
took that time) to transforming the largely B2B Reliance In- @rajeevdubey

IndIa’s Best CeOs: lifetime achievement award
Institution
After using technology to
trAnsform indiAn bAnking
And steering infosys pAst its
biggest crisis, K.V. Kamath,
former chAirmAn, icici bAnk,
helped multilAterAl lender new
development bAnk scAle up
mAssively during his five-yeAr stint
By AnAnd AdhikAri
PhotogrAPh By rAchit goswAmi
the eight years that Kundapur Vaman Kamath spent at the Asian
Development Bank (ADB) in the late 1980s, he was in Indonesia for
four years. A fast learner, Kamath, an IIM Ahmedabad alumnus be-
came fairly fluent in national language Bahasa Indonesia. Three de-
cades later when he took up the chairmanship of New Development
Bank (NDB) in Shanghai, the foreign language anxiety did resurface
again as it meant communicating in ‘Mandarin’ in day-to-day conver-
sations to survive five years in the city.
But advanced technologies in language translation relieved the
language fears. “The App did a good job in seconds to convey the mes-
sage,” grins Kamath who also speaks Kannada and Tulu fluently. The
former chairman of Infosys, who spent 13 years at ICICI Group, is a

Builder
We are
probably
looking at a
$100-billion
bank in the
next four
years or so

IndIa’s Best CeOs: lifetime achievement award
1971
Starts 1988
1996
The 1969
Joins IIM-
career at Moves over-
Returns to
development seas to work
Rising Ahmedabad
finance for multi-lat- ICICI Ltd as
for masters in eral develop- MD & CEO
Graph management
institution
ment institu-
ICICI
tion ADB
technology enthusiast. At ICICI Group, which witnessed NDB

a reverse merger of much larger developmental financial
institution ICICI Ltd with the bank in 2002, he was in- Success
strumental in installing ATMs by the thousands, launch- story
ing electronic trading platform, and introducing ATM on
wheels among others.
Kamath's tryst with technology continued even at
NDB. “We had first-hand experience and opportunity to
use light and nimble stuff at NDB at a fraction of the cost of Capital of
other banks and institutions,” says Kamath. His elevation $10 billion; sets
as NDB Chairman, set up by the BRICS nations (Brazil, higher goals
Russia, India, China and South Africa), for financing in- for accommo-
frastructure and sustainable development projects, was a dating more Leverages
career high. members young talent;
In his five-year tenure at NDB, Kamath laid the founda- Uses state-
tion of the new institution and scaled up operations. By the of-the-art
time he left NDB in 2020, it had approved 59 infrastructure technology
and sustainable development projects worth $18.5 billion
billion across member countries.
His name often crops up as a suggestion for the new fi-
nance minister in the BJP-led NDA government. This year,
Kamath was the unanimous choice for Lifetime Achieve-
ment Award by the five-member jury for his contribution
over four decades to the financial system.
In Global League
At NDB — a development finance institution set up in June Innovative
2015 to mobilise resources for infrastructure and sustain- local fund-rais-
ing techniques;
able development projects in BRICS nations and emerging
currency risk
economies — Kamath started from scratch. “It was like a
mitigation
garage start-up. I was virtually employee number one and 59 projects
there were four vice presidents,” says Kamath. But the big- of $18.5 billion;
gest challenge was the different environment, sitting in fastest scaling
China, working with five countries with separate priorities, up of any
contrasting cultures and distinct set of minds. He put to- multilateral DFI
gether a core team to work towards fulfilling the mandate.
“I had to learn how to deal with different cultures, different
countries and diplomatic skills,” says Kamath.
V. Vaidyanathan, Managing Director and CEO, IDFC
First Bank , and the youngest senior management team

2009 2015
2002 Retires from 2011 Becomes 2020
Initiates big- ICICI Bank, Takes over as Chairman of Completes
gest reverse becomes Chairman of New Develop- 5-year tenure;
merger of non-executive Infosys Tech- ment Bank Creates new age
ICICI Ltd with chairman of nologies in Shanghai, development
ICICI Bank the bank China bank for emerg-
ing markets
member of Kamath at ICICI Bank, says “Kamath could spot a sizeable book of $170-180 billion, which is in the range of
talent, allow them to grow and reposes high level of trust.” other multilateral development banks who took 50 years to
The biggest change was the technology platform. Dur- reach there. We should be able to do it in 10-12 years,” says
ing the mid-90s at ICICI Group, there were computer Kamath. He adds there are enough opportunities in the five
‘mainframes’ driving technology and very heavy software, countries to lend. “With interest rates at never before lows,
which they could not afford. So ICICI went for the light it is great time to borrow and lend to member countries,”
nimble thing. “Today, the light nimble pervades. We had says Kamath. The biggest plus for NDB is low interest rates
first-hand experience and opportunity to use light and for borrowings funds from the market. Clearly, Kamath has
nimble stuff at a fraction of the cost than other banks and set the foundation for a fast-growing development finan-
institutions have done in the past,” says Kamath. The next cial institution for the emerging economies.
step was skilling the team and aligning the goals of govern-
ments of various countries. In fact, the easiest part for Ka- Institution Builder
math was development loan process. Well before NDB, Kamath had acquired the reputation
The bank’s overall agenda was set by the BRICS lead- of an institution builder. It was under him at ICICI Group
ership. In the inaugural BRICS summit in Russia, Prime that ICICI Pru Life, ICICI Lombard, ICICI Securities, ICI-
Minister Narendra Modi proposed making clean energy CI Prudential MF, ICICI Venture life were nurtured and
the first major initiative of BRICS Bank. “We in a way tried scaled up. Today, all these are market leaders with some be-
to own that green sense by trying to do everything in the ing listed. Sandeep Bakhshi, Managing Director and CEO,
green context as we went along,” explains Kamath. It has ICICI Bank, who worked with Kamath earlier, says his abil-
approved projects across renewables, transport develop- ity to identify future trends way before his peers, to inspire
ment, environment and social infrastructure. The scaling- the team to implement new projects within very short time
up was quick. Most institutions like the IMF, World Bank, frame and create a whole generation of leaders for the coun-
ADB have grown slowly. But time was of essence for NDB. try’s financial sector made him a role model for the entire
The initial capital of $10 billion was coming in seven years. corporate India. Vaidyanathan says Kamath is a rare blend.
“We said we should very quickly get to utilise that capital,” “He is an extraordinary visionary , big hearted and a man
says Kamath. In the first four years what NDB did, usually with great grace.”
takes other banks 14-15 years. “We upped the pace signifi- Kamath has returned from NDB with lot of learning.
cantly,” he adds. The Indian financial system is also changing. During the
The foundation is set for supporting a larger loan book 80s and 90s, development financing was for greenfield
in BRICS. Going forward, the $10-billion capital can easily manufacturing ventures where institutions provided eq-
get the bank to do $50-60 billion in loan size. There are new uity and debt capital. Banks didn’t have access to long-erm
hybrid instruments which can be explored. “We are prob- funding. The cost of funding was too high due to high inter-
ably looking at a $100-billion bank in the next four years or est rates. Currently, project financing is mostly for infra-
so,” hopes Kamath. structure.
He has encouraged raising funds in BRICS countries “There is probably scope for an appropriately conceived
and lending in local currency, which is core to NDB's fund- institution,” says Kamath hinting at a DFI model. But a
ing strategy. NDB is also exploring bringing in new mem- DFI model would certainly require clarity on the fund-
bers. Currently, founding members can dilute up to 55 per ing source and government support. In the past, DFIs like
cent. If full dilution happens in the initial capital of $10 ICICI Ltd, IDBI Ltd and IDFC Ltd have all converted into
billion, the capital can go up to $18 billion. “This will give banks. Kamath believes India needs large financial institu-

IndIa’s Best CeOs: Lifetime Achievement AwArd
tions to meet GDP target of $5- 10 trillion in 10 years. The cial institutions are already transforming to reap the gains
Chinese banking system is almost twice the size of its GDP of digital super cycle. “As an observer, I look at people who
while Indian banking is far less than the GDP. “We need were not in the line becoming dominant players. Take e-
larger institutions for sure,” believes Kamath. In fact, an trading platforms for example. We have seen how quickly
RBI internal working group has recommended that large people have built scale. Tomorrow other financial services
corporate and industrial houses should be al- business will face the same situation,” says Ka-
lowed to set up banks. math. PayTM, Google, PhonePe and What-
It also recommended allowing well- sApp are spreading their wings. There are
run large NBFCs with asset size of platforms selling multiple bank and in-
`50,000 crore and above, including surance products under one roof.
$10
those owned by corporate houses, to Kamath says fintech players will
convert to banks. Kamath says giv- move to rural areas seamlessly.
en the size of some NBFCs, regu- “The bank will also move to rural
lators think and believe they billion India, but they need to rethink
should not pose a systemic Initial capital of New a lot of things,” says Kamath.
risk. “Ownership is second- Development Bank. This Existing players have to re-
ary. The systemic risk issue can get the bank, which think technology, re-imagine
is paramount in the minds of supports infra projects the business model or the ser-
regulators,” adds Kamath. in BRICS and emerging vicing model and do things now
Bakhshi of ICICI Bank says economies, to give as you face competition from new-
Kamath left his mark not only on $50-60 bn loans er players. “I think existing financial
the ICICI Group but also on the In- sector players will have regulatory
dian banking industry. “He revolution- cover for some time, but cannot bank on
ised retail finance in India by making this for all times,” he adds.
consumer loans widely available to a large Kamath believes India will also see
section of the population. He also trans- its digital super cycle starting to spin
8-10
formed Indian banking by introducing in 2021/22. “It has already started to
technology-driven solutions,” says spin. You have enough anecdotal
Bakhshi. evidence,” says Kamath. There is
On consolidation and priva- per cent
a rise in digital transactions and
tisation of public sector banks, Likely contribution of e-commerce while consum-
Kamath says there is an issue digital transactions and ers behavioural and mindset
of staffing these institution e-comm to FY22 GDP are changing. “You will have
if necessary with outside tal- growth, according to a new growth engine for
ent. “There is internal talent, Kamath. Tech will trans- 2021/22 which will drive 8-10
but we can also bring outsiders,” form delivery of per cent GDP growth,” believes
says Kamath. SBI has already tak- financial products, Kamath.
en the lead in this by appointing EY he says Always a learner, an optimist
India partner with specialisation in and go-getter, Kamath still has the
US GAAP, Charanjit Attra as its CFO. “It same desire to learn as before. The five
(solution) need not be by dilution, it can years in China with NDB exposed him to
be a combination of things the government the transformation possible in a large econ-
could do to get them to their rightful place in omy like India. During his ADB days, he wit-
the economic system and create value,” says Kamath. nessed the transformation of Asian tigers. Now this Padma
On Bad Bank, he says much of the cleanup has already Bhushan winner sees a big opportunity for BRICS. In fact,
been done. “The required capital has been pumped in. The he has come convinced that $5 trillion and $10 trillion GDP
clean-up is substantially done,” says Kamath. in 10 years is a distinct possibility if we do things right.
“I am back from NDB better educated with a multi-di-
Digital Super Cycle mensional view from five countries and what is possible in
Kamath is gung-ho on technologies transforming delivery our country,” says Kamath. Surely, the government will use
of financial products. his services in the near future.
“Fintech is passive. We will probably need to use the
word digital super cycle,” says Kamath. Banks and finan- @anandadhikari

If these two consumer businesses (Jio and
Retail) had been separately listed companies,
each would be ranked among the top 10 in
India today, in terms of value

IndIa’s Best CeOs: Mukesh AMbAni, CMD, RiL
Mercurial
Transformer
Mukesh AMbAni built three sector-
dominating businesses under ril and
cleaned off the conglomerate’s debts
by raising `2.89 lakh crore
By NeviN JohN
PhotograPh By BaNdeeP siNgh
best CeO
ChAMPiOn OF
ChAMPiOns
Total Income/ 3-yr CAGR
` 3,50,689 cr/ 11.83%

PBIT/ 3-yr CAGR
`56,666 cr/9.21%
PAT/ 3-yr CAGR
`30,903 cr/-0.56%
3-yr Average TSR
11.12%
mpossible is not a fact. It’s an opinion, stated boxing
Average Market Cap
Y-O-Y Growth * legend Muhammad Ali. That applies to billionaire Mukesh
34.86% Ambani too. In 1997, his father Dhirubhai Ambani asked
him to build Asia’s largest petroleum refinery at Jamnagar
ROE/ ROCE in 24 months, against the usual 60 months then. Mukesh
7.45%/8.36% Ambani charted out a new work schedule, counting back-
wards from the target date and pulled it off. When it came
Cash/ Debt to creating two consumer focused businesses almost two
`8,443 cr/ `262,345 cr decades later, sceptics said it would be impossible for Am-
bani. He proved them wrong by building India’s most prof-
Net Profit Margin itable telecom and retail businesses — Reliance Jio and Re-
8.46% liance Retail — by simply widening the scope of the sectors.
At a time when large parts of the world was locked down
*For Oct 2019-sept 2020; standalone
data; Total income, PbiT & PAT net of due to coronavirus, Ambani struck a series of deals, pivot-
extraordinary items; TsR: Total share- ing Reliance Industries (RIL) from a core sector company
holder returns; source: ACe equity — refining and petrochemicals — to a technology compa-
ny led by Jio Platforms (JPL) and Reliance Retail Ventures

IndIa’s Best CeOs: Mukesh aMbani, CMD, RiL
Fundraising
Saga `53,124
crore
Rights issue
`47,265 `7,629
crore
crore
Reliance Retail Reliance BP
Ventures Mobility
(RRVL)
`25,215
`152,056 crore
crore Tower
Jio Platforms Infrastructure
Trust
`3,779 debt `1.61 lakh crore. Post
crore the entry of Facebook and
Digital Fibre Google, and deals in RRVL and
Infrastructure the rights issue, RIL has turned
(RRVL). Then, JPL, a sub- Trust cash positive after six years.
sidiary of RIL raised `152,056 As Brazilian novelist Paulo Coelho noted about ‘who
crore from Google, Facebook and I am’, Ambani is the sum of the experiences he lived in the
11 private equity firms and sover- past. The largest investment cycle in his lifetime in RIL is
eign wealth funds. Soon after, RRVL over. The billionaire will turn 70 in 2027 when the ongoing
raised `47,265 crore by diluting 10.09 Golden Decade of RIL will end, celebrating 50 years of the
per cent stake. RIL also launched India's largest rights is- IPO of Reliance Textile Industries, the earlier name for RIL.
sue of `53,125 crore in May-June, which was subscribed 1.59 Ambani’s children are already in key executive roles.
times. The entire amount from the rights issue is expected Daughter Isha Ambani holds a top role in Reliance Retail,
to be realised by the end of 2020/21. RIL officials said the while her twin brother Akash is more active in Jio. Youngest
company has turned cash positive with net cash of `10,256 son Anant has joined JPL as director recently.
crore against net debt of `1.61 lakh crore in March.
Jio, which launched mobile services in September 2016, Conviction & Execution
posted a 87.65 per cent rise in standalone net profit at `5,562 Ambani’s conviction in the digital and telecom business has
crore in 2019/20, driven by subscriber additions and tariff changed India’s communication landscape. In 2010, when
hike. Meanwhile, RRVL posted a 76.5 per cent spike in net he first invested in radio spectrum, the idea was to build a
profit to `5,540 crore. The consolidated profit of RIL was telecom company at a cost of `50,000-60,000 crore. As the
flat at `39,880 crore. Today, JPL has the most mobile sub- budget ballooned, Ambani became cautious, but wanted to
scribers in the country (405 million), while RRVL has over be different in technology, compared to the incumbents.
11,800 physical stores and is supported by e-commerce The idea of reaching out to the retail customer was not
venture, JioMart in 200 cities. there in the DNA of Dhirubhai’s Reliance. In the transfor-
During RIL’s 2019 annual general meeting, Ambani mation of Reliance from yarn trading to refining and petro-
said sceptics used to say Reliance could not succeed in chemicals major, the founder focused on B2B and building
consumer businesses. “Jio and Reliance Retail have proved a consumer brand was not his priority.
them wrong,” he said. “If these two consumer business- Though the original telecom foray Reliance Info-
es had been separately listed companies, each would be comm was Mukesh Ambani’s idea, his contribution to
ranked among the top 10 in India today, in terms of value,” the business ended with the split in the family. Info-
he added. comm went to younger brother Anil Ambani. It was the
Over the last three years, RIL invested `6 lakh crore in re-scripting of the non-compete clause in the brothers’
its three business streams — oil, telecom and retail. Of that agreement in 2010 that paved the way for Mukesh to
almost `4 lakh crore went into JPL. This led to RIL’s gross once again invest in telecom. However, he started the
debt hitting `3.36 lakh crore (as on March 31, 2020) and net move to consumer businesses a year after the break up

IndIa’s Best CeOs: Mukesh aMbani, CMD, RiL
Mantras For Success ment industry by releasing 'one movie a week' through
the JioFiber network, under the 'First Day First Show'
offering. Jio Studios, which creates content for Reliance
Groundwork with Jio's broadband and mobility platforms, aims to produce
`6-lakh-cr investment and release 52 movies in a year. They plan to achieve such
in three businesses— scale within two years.
oil, telecom, retail Besides Jio’s investment, the parent group invested `1
lakh crore in expanding the petrochemicals business by
constructing the world's largest refinery off-gas cracker
(ROGC) and its downstream units and a paraxylene plant.
Boost for Jio Platforms The group has also invested heavily in Reliance Retail's geo-
Ltd (JPL) with graphical expansion and product addition. The retail giant
built partnership networks with millions of small mer-
`152,056-cr capital
chants and kirana shops.
from Google,
Reliance Retail, which faced resistance from kiranas
Facebook and 11 PE
and political parties when it launched in 2006, opened
firms and sovereign 3,000 new stores in 2018/19 and 1,400 stores in 2019/20 —
wealth funds that’s more than six new stores every day in the last two
financial years. Through its omni-channel strategy, RRVL
is now effectively countering the onslaught of Amazon and
Walmart-owned Flipkart.
Added muscle to Reli- RRVL is adding new products ranging from grocery
ance Retail’s offline to footwear and jewellery to electronics. It is following a
presence with its pro- multi-pronged approach of operating a chain of neighbour-
posed deal to buy the hood shops, supermarkets, wholesale cash & carry outlets
retail assets of Future and specialty and online stores.
Group for `24,713 cr The product strategy in refining and petroleum is an-
other interesting point. Ambani plans to convert 70 per cent
of RIL's output from the Jamnagar refinery and petrochemi-
cal complex to chemicals. At present, the complex produces
Reduced part of 90 per cent fuels and 10 per cent chemicals. Foreseeing a
its debt through a reduction in fossil fuel consumption, Ambani’s plan is to
`53,125- cr rights switch RIL’s major volume of fuel production to high-value
issue, which was chemicals. In sync with this is the financial strategy.
subscribed 1.59 times Another big deal in the works is with Saudi Aramco. The
Saudi government-owned company is negotiating with RIL
to pick up 20 per cent stake in the oil to chemicals business.
The `1.1 lakh crore deal has already been delayed because of
the crash of crude prices and geopolitical issues.
through the launch of grocery retailing in 2006. On the acquisition front, RIL has agreed to acquire re-
A close confidant of Ambani says the industrialist was tail, wholesale, logistics, and warehousing businesses of
attracted to successful global corporations and then Indi- Future Group for `24,713 crore. Amazon has legally chal-
anised the business models. “Brick and mortar retail was lenged the deal as the US e-tailer owns 49 per cent in one
an Indian version of Walmart and Tesco. When it came to of Future's unlisted firms — Future Coupons Ltd. At pres-
Jio, the original idea was to build a Verizon or Sprint, but ent, Future Coupons holds 7.3 per cent equity in BSE-listed
evolved over the years as a mixture of Google, WhatsApp, Future Retail Ltd through convertible warrants. While
Netflix, Amazon and Alibaba,” he adds. Ambani is betting the matter is before the Delhi High Court, Ambani is going
big on building new platforms under Jio or aquiring them, ahead in acquiring startups. RRVL recently acquired 96 per
finding scope in areas such as e-learning and e-medicine. cent stake in online furniture portal Urban Ladder for `182
The scope of online health covers digital consultation, crore. Prior to that, RIL brought a majority stake in digital
diagnostics, e-pharmacy, online clinic for doctors, while ed- pharmacy start-up Netmeds and acquired 15 per cent in on-
ucation include Kindergarten to 12 (K-12), test preparation line lingerie retailer Zivame.
for competitive exams, jobs and higher education. JPL has Ambani is on a mission to transform RIL into a compre-
developed JioMeet in line with video-conferencing applica- hensive conglomerate.
tion Zoom. Broadband is another area that he is betting on.
Ambani also plans to shake up the Indian entertain- @nevinji

IndIa’s Best CeOs: Rajesh Gopinathan, MD & Ceo, tCs
Universal
Reinventor
Under Rajesh Gopinathan, TCS HAS InTeGrATed A
WIde CrOSS-SeCTIOn OF AUTOMATIOn PrOdUCTS TO
CreATe THe 'MACHIne FIrST' deLIVerY MOdeL
By nevin John
PhotograPh By Mandar deodhar
january 12, 2017, N. Chandrasekaran walked in late for the

third-quarter earnings conference call of Tata Consultancy
Services (TCS). The group had announced his appointment as We believe this
Chairman of Tata Sons just a few hours before the call. Chan- positive cycle
drasekaran’s elevation as the top boss of the group was a proud of migration
moment for TCS’ top management, but they had no clue about to the Cloud
who was going to step into his shoes to lead the IT bellwether, the
and the
most profitable firm in the Tata bouquet and a major source of
potential the
revenue for Tata Trusts.
Chandrasekaran, fondly called ‘Chandra’ by his colleagues,
move offers is
turned to Chief Financial Officer Rajesh Gopinathan and made
huge. We are
a startling announcement that the board had appointed the then betting on that
45-year-old CFO as the new MD and CEO of TCS. Describing
Gopinathan as “a rare combination of business and finance,”
Chandrasekaran said, “He has an end-to-end perspective of the
business, not only in terms of operations and numbers, but also

Best Ceo
supeR laRGe
Companies
` 1,39,388 cr / 12.74%
PBIT/ 3-yr CAGR
`42,734 cr / 12.41%
PAT/ 3-yr CAGR
`33,260 cr / 12.03%
3-yr Average TSR
14.25%
Average Market Cap Y-o-Y Growth *
2.32%
ROE/ ROCE
43.73%/56.18%
CASH/ DEBT
`4,824 cr/ nil

Net Profit Margin
25.33%
*For oct 2019-sept 2020; stan-
dalone data; total income, pBit &
pat net of extraordinary items;
tsR: total shareholder returns;
source: aCe equity

IndIa’s Best CeOs: Rajesh Gopinathan, MD & Ceo, tCs
in terms of the strategic options in hand.”

As in a Formula 1 race, Gopinathan
strapped himself in, got the pit stop
down to the minimum possible and
drove TCS back on track smoothly.
From an IT services supplier the com-
pany transformed itself into a business
solution provider —offering services
in marketing, merchandising, finance,
risk, digital and people management,
among others.
During Gopinathan’s tenure, TCS
focussed on deepening its relation with
customers beyond technology and cre-
ated business teams with contextual Talent Talent
knowledge. A pool of 10,000 contex- Management Development
tual masters was formed to provide ex- Young, global, diverse
workforce
pertise and solutions for expansion of
businesses and help clients implement
4.7 million
Learning days
the same, without compromising on 448,464
quality and scale. Total Employees
In the last three-four years, the 335K
company has aligned itself with two Employees trained in
themes — agility and automation — 36.2% digital
which Gopinathan believed would Women
fundamentally alter the traditional
417K
operating model. So, TCS opted for the
‘Enterprise Agile by 2020’ vision. Au-
144 Trained in agile
Nationalities
tomation was no longer perceived as a
threat, but an enabler for transforming 679,805
businesses, which helped the company 31 years Certifications
stay ahead of the curve. “We invested Average age acquired
in integrating a wide cross-section of
automation products and creating an
operating model, the Machine First De-
livery Model, putting automation at the
core of service delivery,” says Gopina-
than. The company also invested massively in IP creation. (72 per cent of TCS is held by Tata Sons) as dividend and
At a time when customers were struggling to decode for buybacks. The share price surged over 120 per cent and
digital technologies, TCS invested in Business 4.0, a frame- the company’s market cap stands second to Reliance Indus-
work built on four pillars — Cloud, agility, automation and tries (RIL) at `10.7 lakh crore as on December 18.
analytics. The company backed it with personalisation and An avid reader of books ranging from Emperor Asoka to
user segmentation, reemphasising its focus that the cus- citizenship laws to the future of work, Gopinathan recalls,
tomer is the king. “If institutions transition from an inside- “The first year was about making sure that we keep the race
out approach to outside-in, businesses will evolve with the going. There was me and COO N.G. Subramaniam in new
changing external environment. Given the new realities, roles. The rest of the crew was same. That was a big benefit.
purpose-centric, adaptive and resilient institutions are The second and third years were about pulling ahead for a
the need of the hour. But for that transformation, there’s a longer race without slacking the pace. We executed many
huge amount of investment required in people skills,” adds things and delivered almost 12 per cent growth,” he adds.
Gopinathan. TCS has been moulding transformation across all di-
In the last three financial years, under his leadership, mensions— technology, service delivery, people delivery,
TCS’ revenue grew at a CAGR of 12.74 per cent to `1,39,388 people skill and business models — and continuously push-
crore, despite the slowdown in key operating sectors, in- ing the boundary for customers, he adds.
cluding banking, financial services and insurance (BFSI) In fact, the company has been at the forefront of eco-
and retail. Net profit increased 12.03 per cent to`33,260 nomic recovery — retaining its workforce and helping cli-
crore. It distributed nearly `94,800 crore to shareholders ents tide over the storm. “In retrospect, I think it went bet-

day of delivery failure. The Secure Bor-
derless Workspaces (SBWS) model was
built immediately after Covid hit India,
enabling remote access to employees
and protecting them with a cyberse-
curity framework. SBWS ensures that
work allocation, monitoring and re-
porting continues as usual.
TCS has so far enabled remote
working for 95 per cent of its employees
and established Cloud-based gover-
nance of over 23,000 projects, enabling
high volumes of digital collaboration
Talent Mantras For — 35,000 online meetings, 406,000
Retention Success calls and over 3 million messages. “We

never thought of SBWS. But, like the
Created a pool of 10,000 saying goes, necessity is the mother of
12.1% contextual masters to all invention. When suddenly the rug
got pulled from under our feet, we re-
Attrition in IT services provide solutions for
alised that we were already sitting on
business expansion
what was required. We only had to scale
it up,” says Gopinathan.
With the success of SBWS, TCS
Transformed the company was also among the first to announce
from an IT services supplier the 25x25 work model, which envisages
ter than the worse we had anticipated. to a business solution that by 2025, not more than 25 per cent
Without notice, we had to shut down provider of its employees will need to work from
all offices, move everybody back home office at any given point in time, and
and halt all travels. In my wildest imagi- any employee will need not spend more
nation I wouldn’t have thought that we Has put automation at the than 25 per cent of their time in office.
would’ve been able to react this way,” core of service delivery; According to Gopinathan, TCS
says Gopinathan. invested massively in IP is well positioned for a double-digit
TCS, he adds, is at the beginning creation growth, beginning next year. “BFSI and
of a new cycle of tech transformation, retail segments, which together con-
where Cloud and borderless workspace tribute 40-45 per cent of TCS’ business,
will be the new themes. The company are on the revival path. Banking, capital
Invested in Business 4.0,
had already invested in Cloud collabo- markets are also recovering fast and we
built on the four underlying
ration platforms pre-Covid. should see continuing momentum in
pillars – Cloud, agility,
“Suddenly when you removed the the near future. We believe retail and
automation and analytics
office out during the pandemic, the consumer product sectors will turn
digital collaboration layer became the bullish, making the entire financial
fabric that holds the teams together, year net positive,” he adds.
and the virtual team room replaced the Though he has worked directly only
office collaboration room,” says Gopinathan. with Chandrasekaran, Gopinathan has fond memories of
The pandemic has accelerated Cloud adoption. “We his predecessors late F.C. Kohli and S. Ramadorai as well.
believe this positive cycle of migration to the Cloud and the “All three of them were razor focussed on customers.
potential it offers — the reduction in capital expenditure They had absolute conviction that there was nothing that
as it frees up investments in new technology projects and we could not do. They heavily invested in learning and
the speed to market so that value recognition can be ac- training. Kohli was a dreamer, took up ideas and profes-
celerated — is huge and we are betting on that. We are re- sionalised and industrialised it. The real scaling happened
structuring our organisation to fully participate in it,” says with Chandra, with the first $100-million deal and the first
Gopinathan. $1-billion deal, among others,” he says.
This move towards borderless agile workspaces has The TCS CEO and MD is now ready for the next race,
been there even before Covid, and that helped the company and there won’t be too many pit stops in between.
shift almost the entire workforce of around 4.5 lakh people
to the work-from-home (WFH) mode without even a single @nevinji

We had new
experiences this year,
but it’s not unique to
us. Every player glob-
ally is facing this
Best ceO
LARGe cOMPAnies
` 79,153.1 cr/ 3.96%

PBIT/ 3-yr CAGR
`7,197.7 cr/-10.53%
PAT/ 3-yr CAGR
`5,650.6 cr/-8.39%
3-yr Average TSR
-30.97%
Average Market Cap
Y-o-Y Growth *
-6.23%
ROE/ ROCE
11.95%/15.18%
Cash/ Debt
`21.1 cr/ `106.3 cr

Net Profit Margin
7.47%
*For Oct 2018-Sept 2019; Stan-
dalone data; total Income, PBIt
& PAt net of extraordinary items;
tSr: total shareholder returns;
Source: ACE Equity

IndIa’s Best CeOs: KENICHI AYUKAWA, MD & CEO, MArUtI SUzUKI INDIA
The
CEO For
All Seasons In a tough year, wIth
the odds stacked
agaInst hIm, Kenichi
AyuKAwA ensured
marutI suzukI stayed
on course and ahead
of Its peers
by sumant banerJi
PhotograPh by rachit goswami
say that Fy20 was a challenging year for the

Indian automotive industry would be an un-
derstatement. Overall auto industry volumes
declined almost 18 per cent in FY20, the worst
showing in a financial year in over two decades.
What’s more, the domestic passenger vehicle in-
dustry also fared poorly with volumes dipping by
the same quantum.
In this context, it would be unreal to expect
the country’s biggest carmaker, Maruti Suzuki
India Ltd, to not suffer at all. Accounting for one
in every two cars sold in the country, the com-
pany has an enviable reputation — of having the

highest market share for a leader in any major automobile from BS-IV to BS-VI emission norms from April 1, 2020.
market in the world. The large base also makes it vulnerable While that puts India on par with Europe in terms of tail-
to bigger losses in times of a downturn, but the fact that it pipe emissions, a much-needed step given the problem of
managed to hold on to its position without ceding much air pollution in the country, it was a major task for compa-
ground to its rivals — Maruti’s market share fell margin- nies since it could not have been done at one go. Car compa-
ally from 51.2 per cent in FY19 to 51 per cent in FY20 — is nies needed to carefully calibrate the phasing out of BS IV
something that has given some succour to its top boss, the models while bringing in BS VI versions. The slowdown in
65-year-old Kenichi Ayukawa. demand made projections even more onerous.
“Fiscal year 2019/20 was no doubt a very challenging Ayukawa, however, took the bold step of announcing
year not only for us as a company but for the industry and the company’s exit from the diesel segment while launch-
On The Rise
Maruti's Market share (in %)
Ayukawa
joins as MD & CeO
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21*
50.09 48.74 38.27 39.4 42.1 45 46.8 47.38 49.97 51.22 50.99 49.35
* april-October
the economy as a whole,” he says. ing BS-VI-compliant petrol models much before deadline.
The year has somewhat tarnished the company’s other- The company launched its first BS-VI-compliant cars —
wise unblemished financial record — its three-year CAGR Baleno, in April 2019, almost a year ahead of deadline. This
on profitability has turned a negative 8.4 per cent. But, Ayu- was quickly followed by its other bestsellers — Alto 800,
kawa’s track record at overcoming challenges puts him and Swift, Dzire, Wagon R and Ertiga. By the end of 2019, more
his company in a good position to fire away at the slightest than half of its portfolio was already BS-VI compliant, en-
hint of a tailwind. suring that the company had sold more than 750,000 BS-
“There were many headwinds or changes in regula- VI-compliant cars even before it was made mandatory.
tions, be it for safety or emissions, which made vehicles “Technology was never an issue. We already sell Euro
more expensive at a time when the overall economy was not VI-compliant cars in Europe so we had the technology. The
so good and consumers had less cash in hand,” he says. “We question was about timing and we decided to do it early so
had to overcome that and though there is always scope for that there is minimal disruption,” says Ayukawa.
betterment, I think we did okay.” What helped Maruti was also its decision to not up-
While countering a general slowdown in the economy grade its diesel versions in the BS-VI regime. The changes
was itself a challenge, the automobile industry had its own in diesel cars, with the addition of a particulate filter in the
set of issues to grapple with. exhaust system, are significantly more than in petrol ver-
The most important among them was the transition sions and there were complications if BS-VI diesel engines

are fed BS-IV fuel repeatedly, which something like this. It is a very big sup-
meant they could not be launched too ply disruption,” he says. “We are fight-
far before deadline. About a quarter of ing an invisible enemy in Covid, but my
Maruti’s vehicles sold in FY19, however, duty and responsibility is to fight and
were diesel cars, including the best- win this. It is a new normal and we have
selling compact SUV Vitara Brezza, so to adopt new practices such as digiti-
there were chances of the strategy boo- sation and ensure health and safety of
meranging on it. In retrospect though, employees and workers, while also en-
with Maruti not losing any market suring that business becomes normal
share in any of the segments, Ayukawa’s Mantras For again.”
clarity in decision making saved the day Success Having seen many crises in the
for the company. Stepped up digital past, this never-say-die attitude helped
One of the big reasons for Maruti campaigns through hyper- the company in turning the corner fast-
Suzuki’s enduring success in India is local activities for identifying er than others. As the market opened
its ability to withstand competition. potential consumers up from June, Maruti realised there
In FY20, at least two major players — was a pent-up demand and the rural
Korean Kia Motors and China’s SAIC- economy was particularly resilient. It
backed MG Motor — entered the Indian immediately got down to ironing out
market. Maruti launched a counter by Came up with products supply chain issues, which included
sticking to its strengths and coming up catering to its own giving cash flow support to some of its
with products that cater to its own set of set of consumers vendors in distress so that they could
consumers. During the year, it launched resume operations at the earliest.
the seven-seater XL6 with its premium At the same time, targeted digital
distribution network Nexa at the top Introduced campaigns were stepped up through
end and followed it up with its first mini model-specific promotions hyper-local activities for identifying
car in decades — the S Presso — at the for buyers potential consumers, tie-ups with fi-
entry level. This ensured that while Kia nancial institutions were expanded to
and MG got off to good starts, the im- improve credit availability and model-
pact was felt more on the others than Expanded tie-ups with specific promotion schemes were in-
the market leader. financial institutions to troduced for consumers.
“As long as we have good products improve credit availability Backed by Maruti’s widest distri-
with affordable prices, market share bution network, which covers almost
will follow,” says Ayukawa. “It will al- every nook and corner of the country,
ways be sometimes good and some- the turnaround was immediate. In the
Exited the diesel segment
times bad. If we have a new product, we second quarter, it registered an 18.6
will gain share. If they (competition)
while launching BS VI- per cent growth in sales over last year,
produce a new product, their share will compliant petrol models while profitability improved by 1 per
go up. We should be able to consistently much before the April 1, 2020, cent. The blip was indeed short-lived,
provide new products with new tech- deadline but Ayukawa sensed an opportunity in
nology and features. That is very impor- the crisis.
tant.” “Gradually we have seen an im-
After a tough FY20, the start of the First BS VI-compliant car, provement in sentiment. Consumer
new fiscal brought in a completely new Baleno, launched in April demand is coming back and though
set of unknowns. The pandemic and 2019, followed by Alto 800, we still do not know how long this will
the resultant lockdown between March Swift, Dzire continue, the demand for small cars is
and May brought all economic activities stronger,” he says.
to a halt. Maruti, too, felt the heat. With “Small cars have traditionally been
factories and dealerships shut, it suf- our area of strength. There is also a be-
fered 82 per cent decline in sales in the first quarter, while lief that post pandemic, people would avoid public trans-
recording a net loss for the first time ever in its history. But port and shared vehicles and prefer using their own cars,
Ayukawa did not lose his sleep over this. so that should help us as well. I am always hopeful for the
“We had new experiences this year, but it’s not unique future,” he adds.
to us. Every player globally is facing this. In April and May,
we had no production. It’s the first time in life I have faced @sumantbanerji

IndIa’s Best CeOs: Sanjiv Mehta, CMD , hUL
The
Empowerer Sanjiv Mehta
delegated responsibility
and relied on quick
market feedback
and cost control in
order to thrive in the
marketplace
By AJITA SHASHIDHAR
PHoTogRAPH By RAcHIT goSwAmI
March 17, as India started reporting cases of coronavirus, Our digital initiatives cover the
Hindustan Unilever decided to ask employees to work from entire value chain. All this has come
home. As the fear of contacting the virus loomed large, in handy during the pandemic. I
MD & Chairman Sanjiv Mehta’s message to his core team am glad we started this technology
was: “Look after our people and the people will look after journey a few years ago
the business.” Nine months down the line, the 61-year-old
head honcho of India’s biggest FMCG company is proud
of his employees and business. He says his employees are
more agile and resilient than ever and talks about a humble riage made in heaven. “The consummation of the deal hap-
factory employee who told him that he went to work every pened during the lockdown on April 1. We do a people pulse
day not to make soaps but save lives of millions of Indians. survey. I am pleased that engagement scores of erstwhile
“Our first priority was safety of our people across the value GSK people are as high as that of others. We have been able
chain. Then, we made sure that our supply lines were run- to assimilate them and make them feel important.” With
ning. We also kept our fingers on the pulse of consumers to GSK, HUL’s food and refreshment business has become
understand their behaviour. We also heightened focus on the largest in the country. While declaring its September
cash and costs despite being a zero-debt company. Last, but quarter results, the company announced a host of innova-
not the least, was helping the community.” tions under the Horlicks brand, the most prominent be-
During the lockdown, Mehta has been walking up and ing a variant containing zinc and multi-vitamins to boost
down the 18 floors of his apartment complex. Just as his fit- immunity. The variant promises 8.3 mg zinc per 100 gms
ness regime continued against all odds, it has been business compared with the earlier version’s 4.3 mg. “Studies show
as usual for his 18,000-strong workforce too, with majority that the immune system gets a boost with zinc. The first
of them working from home. At the peak of the lockdown, thing we did was to hand over lakhs of packs to healthcare
the FMCG major completed the merger of GSK Consumer, workers,” says Mehta. He says the company plans to extend
which it had acquired for `3,045 crore. Mehta calls it a mar- Horlicks and Boost into the food space too.

BeSt CeO
MediuM COMpanieS
` 39,518cr/6.83%
PBIT/ 3-yr CAGR
`9,395 cr/15%
PAT/ 3-yr CAGR
`6,738 cr /14.49%
3-yr Average TSR
16.92%
25.8%
ROE/ ROCE
86.11%/117.25%
CASH/ DEBT
`5,017cr/niL
Net Profit Margin
15.07%
dalone data; total income, PBit &
Pat net of extraordinary items; tSR:
total shareholder returns; Source:
aCe equity
Capitalising On Challenges
Mehta believes that challenges bring opportunities. The
pandemic, he says, has helped accelerate the company’s
‘Re-imagine HUL’ agenda. Ever since he took over as HUL
CEO in 2013, Mehta has been talking about building the
most tech-savvy consumer goods company. He says the
company’s biggest achievement in the last nine months has
been to get 3,00,000 kirana retailers to embrace its Shikhar
app. The app enables them to order online instead of wait-
ing for the distributor to come to their doorstep to take or-
ders. “Convincing a kirana store owner to adopt a tool has

IndIa’s Best CeOs: Sanjiv Mehta, CMD , hUL
never been easy.” The app has given the That is where the WIMI (Winning in
company access to data from stores and Many Indias) and the CCBT (Country
markets which it can use to redefine its Category Business Teams) framework
service models and create better deliv- came in extremely handy. When you
ery routes. The company has also de- empower people and when you trust
veloped an app for factory operations people, they own accountability and de-
which has temperature measurement, liver.” In June and September quarters,
access control and an alarm if physi- during the lockdown, all decisions were
cal distancing is not maintained. “Our taken at the CCBT level. “People in the
digital initiatives cover the entire value
chain. All this has come in handy during
Mantras For clusters helped local administrations in
the unlock process and very important-
the pandemic. I am glad we started this
Success ly gave us feedback about what is hap-
technology journey a few years ago.” During the pandemic, pening in those areas so that we could
The company has launched 100 kept fingers on the pulse meet demand there,” he says.
new SKUs (stock keeping units) in nine to understand consumer
last months. It has also launched a new behaviour; ensured Pandemic Lessons
brand, Nature Protect, with a range smooth operations Mehta believes this pandemic was an-
of products in the hygiene space. The ticipated, but the world was in denial.
other launches include Lifebuoy alco- He says in December last year, when
hol-based sanitisers, germ-kill sprays, it was creating havoc in China, HUL
Onboarded 3,00,000 kirana
hypochloride-based Domex, laundry had drawn up an incident manage-
store owners on its Shikhar
sanitisers and germ kill laundry pow- ment team to work on contingencies for
app during the lockdown
der. “We do a lot of market development chemicals it was importing from China,
and spend crores on cultivating the but none of them thought this would
habit of handwashing. Thanks to the fe- spread. “I wish we had a head-start of a
tish for cleansing and clean living, adop- Heightened focus on cash couple of months. So, the first realisa-
tion of handwash and sanitisers has in- and costs despite being a tion was that even with the best predic-
creased immensely. After the vaccine is zero-debt company tion models, you can’t predict your way
out, the obsession may go away, but the to a no-risk world. This means you have
habit will not. It has been a significant to become adaptable and resilient.”
opportunity to strengthen our play in He says while most companies and
health, hygiene and nutrition.” businesses have focused on achieving operating efficien-
cies and productivity, few have made their businesses re-
Rewiring HUL silient. “Resilience means there is an in-built redundancy
Mehta attributes his team’s agility to structural changes built into the business; otherwise you will not be able to ab-
that have been institutionalised over the years. He refers sorb future shocks. So, determining which part of the value
to Winning In Many Indias (WIMI) under which the com- chain should we manage for costs and efficiencies, and in
pany has divided its business into 14 clusters based on con- which part of the value chain we build redundancies for ab-
sumption patterns and stages of economic development. sorbing future shocks becomes the moot point. This is the
This initiative came from an understanding that in India, critical lesson that has come in.” Finally, one has to get com-
languages and culture change within a 50-kilometre radius, fortable with ambiguity and chaos, says Mehta. “The fact is
also changing competitors and level of economic growth. that you can’t predict a crisis and there won’t be a playbook
This means a homogenous strategy will not work. Under that will guide you. So, you have to navigate through the tur-
WIMI, the company has localised not only its product port- bulence - adjusting, improvising and learning as the situa-
folio but distribution and supply chain too. tion changes and new information emerges.”
The company also launched 15 Country Category Busi- Mehta’s leadership is about empowerment and giving
ness Teams (CCBTs) in 2016. These are like mini-boards led people the confidence that they can steer through any crisis
by young general managers (GMs). These 15 GMs have been together. “When there is a crisis, people crave for leadership,
given the mandate to deliver P&L for the year. The initia- people want to hear you, they want you to comfort them. I
tives, says Mehta, have empowered his people and allowed call it ‘brutal optimism’, brutal because you have to show
the company to delegate. “It has allowed us to become ag- them the reality, and optimism because you have to give
ile and nimble. Sitting at home, there is no way I could have them confidence that together we will come out of it.”
managed a large marketing & manufacturing business sell-
ing over 50 billion units of finished products every year. @ajitashashidhar

IndIa’s Best CeOs: Ashish BhArAt rAm, mD, srF
Coach
And
Captain
Ashish BhArAt rAm is putting the pedal to
the metal at sRF as Focus on chemicals and
expoRts pays oFF
By MANU KAUSHIK
espite running a company that has been increas-

ing revenues at a compounded annual growth rate
(CAGR) of over 12 per cent over the past four years, Ash-
ish Bharat Ram thinks growth is not his biggest con-
cern. He says while he does talk about growth and as-
pirations, he wants to ensure that when he goes to sleep
at night, he doesn’t have to worry about something that
went wrong.
This doesn’t mean taking off the thinking cap.
“Business strategy is something where the mind works
24x7. I might wake up at five in the morning with some
crazy idea. I would send an email to one of my CEOs

It’s becoming a self-
sufficient company
which doesn't have to buy
technology from outside.
We have seen the tip of
the iceberg
Best CeO
emerging COmpAnies
` 6,693 cr/ ` 19.43cr
PBIT/ 3-yr CAGR
`1,204.41 cr/24.41%
PAT/ 3-yr CAGR
`974.18 cr/32.50%
3-yr Average TSR
19.98%
Average Market Cap Y-O-Y Growth *
47.62%
ROE/ ROCE
22.66%/16.76%
CASH/ DEBT
`107.29 cr/ `2,664.42 cr

Net Profit Margin
15.21%
*For Oct 2019-sep 2020; standalone data;
total income, PBit & PAt net of extraordi-
nary items; tsr: total shareholder returns;
source: ACE Equity
[he has four]. We chat about it and build upon the idea. Some- is heavily reliant for this segment on the domestic market
times, it can be a stupid idea and we throw it out. If it has merit, where growth rates have slowed considerably. Its key prod-
we figure out how we are going to take the discussion forward,” uct in technical textiles, nylon tyre cord fabrics (NTCF),
he says. used as a reinforcement material in old-world bias tyres,
Over the past few years, Ashish, son of SRF Chairman Arun has seen a fall in demand in recent years because the now-
Bharat Ram, has been steering the company towards a new di- popular radial tyres use a different raw material. This shift,
rection by building upon its strengths and putting it on a high followed by slowdown in the auto segment over the past
growth trajectory. For instance, 10 years ago, technical textiles two-odd years, has affected SRF’s technical textiles seg-
were more than 50 per cent of revenue. It is relatively small now ment. “It might be a $130 billion space globally but is frag-
as SRF has pivoted towards chemicals and packaging. Why? mented. The largest manufacturer of airbags in Europe,
The technical textiles business depends on two industries, for example, may have revenues of €70-75 million, which is
primarily auto, and construction. On top of that, the company not big... as massive truck tyres keep getting radialised, the

IndIa’s Best CeOs: AshIsh BhARAt RAm, mD, sRF
Share of Chemicals to Rise Sharply

53 52
41
36 35
Revenue share
25
19
in per cent 21
10 FY11
*Estimates by Nirmal
FY20 Bang Institutional
FY23* Equities Research
TEchnical TExTilEs chEmicals PackaGinG films

construction, Tyres agrochemicals, pharma, fmcG, Pharma
hVac, etc
demand for bias tyres [which use NTCF] will come down,” substitution (India’s specialty chemical imports are $56
says Bharat Ram. billion), potential increase in exports given the ‘China
That is why SRF began focusing more on chemicals and Plus One’ strategy being adopted by global customers
packaging films, its other key verticals. “From a five-year and favourable government policies (such as tax incen-
perspective, both chemicals and packaging films business- tive and production-linked incentive scheme similar to
es will continue to be growth drivers,” he says. the pharma sector), it remains bullish on medium- and
long-term growth prospects of the specialty chemicals
Growth Engines sector. “Conducive government policies, product inno-
Bharat Ram believes SRF is just scratching the surface in vation, massive export opportunity and low input prices
the chemicals space. Why? Firstly, at the macro level, In- will help the sector witness high double-digit earnings
dia has started catching up with China, which used to be a growth on a sustained basis over the next two-three
hub for global supply chains. While India may still not be years...,” it said.
in a position to compete with China head-on, it’s expected The other promising segment, packaging films, got a
to pick up a fair amount of market share from its neighbour fillip after the pandemic as demand for hygienic products
over the next 5-10 years. That is why SRF has been investing shot up. SRF is doing product development work such as de-
heavily in chemicals. For instance, the company has over veloping mono-layer and biodegradable substrates even in
400 people in R&D and engineering division who develop the packaging space. It has also started working on biode-
processes for molecules required by customers. They also gradable products despite low demand because it believes
develop processes for new generation refrigerant gases. that, at some point, customers will be willing to pay (these
“It’s becoming a self-sufficient company which doesn't products are priced high as they need a lot of additives to
have to buy technology from outside. We have just seen become biodegradable). “We’re going to be sort of product-
the tip of the iceberg. I think over the next few years, there ready in advance,” he says.
is a great opportunity for high-quality companies in India Nirmal Bang Institutional Equities Research estimates
to keep moving up the value chain in chemicals. Whether capital expenditure of `5,600 crore between FY20 and
it is Europe or America or any other part of the world, FY25 with a bulk of it going into chemicals and packaging
they will start looking at offshoring in a bigger way,” says films. The company has been generating operating cash
Bharat Ram. flow and largely relies on internal accruals to fund capital
A November report by brokerage Sharekhan said that expenditure, which has strengthened its balance sheet.
given the massive revenue opportunity due to import “Over the next three-four years, the company will de-

Total Patents simple: India’s economy is worth $2.8-
3 trillion and global economy is worth
Filed And $85-90 trillion. “The overseas market is
Granted To SrF Mantras For so huge that if I can pick up even a little
[share], [I will still be a] minuscule play-
FY18
9% Success er in that. We are developing high-end
molecules that customers in Europe
135 SRF built capacities in
are willing to pay a higher price for. The
19% speciality chemicals
FY19 share of revenue we generate from out-
and packaging films to side India will keep increasing,” he says.
170 meet export demand Established in 1970, SRF oper-
34%
FY20
ates 11 plants in India, and one each in
Thailand, South Africa and Hungary.
205 27% Invested heavily The company exports to more than
Apr- in technology and 75 countries. The idea is to get closer
Sept
innovation; has over to customers, especially in packaging
FY21
294 400 people in R&D films. In chemicals, however, the strat-
Granted and engineering who egy is to build big. Economies of scale
develop processes for make a big difference in chemicals as
molecules required by by-products of one plant become raw
Filed
customers materials for other plants. “Integration
Source: Nirmal Bang Institutional opportunities in the chemicals space
Equities Research
are large if it builds large sites in India,”
Built packaging film says an analyst.
factories abroad to be
ploy 50-60 per cent of its capex toward What’s Next?
closer to customers
the high-growth business of speciality Even as the pandemic has had limited or
chemicals to tap opportunities emerg- no impact on SRF’s businesses, Bharat
ing from the agrochemical and pharma Ram says the culture of the company,
industry. We expect that, over the next Has been investing which is built on interactions among
decade, the speciality business will heavily in the employees, has suffered. “One aspect I
drive growth for SRF. Besides, it will chemicals segment don’t want to give up is visiting plants.
spend 20-30 per cent of capex on pack- to gain from the trend The physical contact with the team and
aging films business,” HDFC Securities of buyers diversifying the interactions build bonds. While
said in a November report. away from China Zoom and Microsoft Teams, etc, have
allowed us to do our day-to-day work,
New Opportunities not meeting physically takes away from
Bharat Ram says the ‘China Plus One’ Focusing on culture creation. That’s something I
game started three years ago when sustainable practices feel, once we get to some sort of normal
China started cracking down on bad which can after Covid, is an area where I will have
environmental practices. This hit generate ROI to focus a lot,” he says.
global supply chains. That’s when sometimes Being involved in chemicals and
companies in the US and Europe be- packaging, SRF is also focusing on
gan looking at India as an alternative implementing sustainable practices
to China. “In that sense, the move- which can also generate ROI (return
ment had already started. I think with outbreak of Co- on investments) sometimes. The biggest challenge in the
vid, when supply chains got impacted a bit more in the chemicals business, for instance, is to treat byproducts,
beginning of this year, that momentum picked up a little which is why having integrated plants is necessary. Another
bit,” he says. goal is to keep reducing water consumption.
Changes in the global supply chain will benefit SRF. Bharat Ram’s approach towards nurturing both people
That’s because 60 per cent of its business comes from ex- and business simultaneously would help him build a holis-
ports. In speciality chemicals, it is over 90 per cent. Bharat tic growth story at SRF.
Ram says export opportunities are huge compared to
the potential of the domestic market. His mathematics is @manukaushik

Best CeO
AgriCulture And
Allied
` 32,25.1 cr / 8.03%
PBIT/ 3-yr CAGR
`378.17cr / 5.86%
PAT/ 3-yr CAGR
`285.98 cr / 13.34%
3-yr Average TSR
-39.07
33.61
ROE/ ROCE
25.29% / 33.44%
CASH/ DEBT
`188.7 cr/ nil

Net Profit Margin
-9.04%
*For Oct 2019-sept 2020; stan-
dalone data; total income, PBit &
PAt net of extraordinary items;
tsr: total shareholder returns;
source: ACe equity
We work
with US and
European
customers in
retail and big
restaurant
chains. Their
requirement
has not de-
clined much

IndIa’s Best CeOs: Alluri indrA KumAr, Cmd , AvAnti Feeds.
The
Caretaker Alluri indrA KumAr ensured that
prawn farmers were not impacted
during the lockdown
By Joe C. Mathew
PhotograPh By KrIShNeNDU haLDer
oon after the lockdown began, the Indian

shrimp industry plunged into an unprecedented
crisis. Exports stopped due to fall in overseas
demand and logistic disruptions, while shrimp
processors got stuck with their frozen or value-
added stocks. Upstream, tens of thousands of
farmers were finding no takers for their shrimp
harvest, and the price of shrimp, which normally
ranged between `150 and `200 a kilo, slumped to
`80 in April.
While distress sale was the only choice be-
fore farmers, processors and traders had the op-
tion of not to buy, or buy it dirt cheap and stock
value-added products. That is when Alluri Indra
Kumar, Chairman and MD of Hyderabad based

IndIa’s Best CeOs: Alluri indrA KumAr, Cmd , AvAnti Feeds
Avanti Feeds Ltd — the company farmers to its network every year
that sells shrimp feed to farmers irrespective of the ups and downs
(it has close to 50 per cent market in the business. Its farmer network
share in India’s feed business) and exceeds 16,000 today.
also processes and exports shrimp Kumar has been heading Avanti
through its subsidiary Avanti Fro- Feeds for 14 years now. His company
zen Foods — chose a path not many is the market leader in fish feeds and
had thought of. among India’s top-10 shrimp pro-
Kumar decided to support the cessors and exporters with revenues
farmers, demand or no demand, of `4185.53 crore in 2019/20 (18.18
by offering the price he had prom- per cent rise over `3541.61 crore in
ised them pre-Covid at `180 a kilo. the previous year). Net profit was
“It continued for a month and we Mantras For `386.29 crore, 25 per cent higher
did whatever we could. We stuck to Success than `306.62 crore in FY19. Avanti
the benchmark price we offered to exported 13,397 tonnes of processed
Started exporting cooked
protect the farmer. Ultimately, the shrimps in 2019/20, over 20 per cent
shrimps and marinated
farmer has to make money if aqua- more than the 11,065 tonnes it ex-
culture has to grow,” says Kumar.
products to new markets like
ported the previous year. The worst
While his Avanti procured `20-30 Europe, USA, Japan, Korea, seems to be over. In an investor
crore worth of shrimp, he convinced Australia and West Asia note in November 2020, Geojit Fi-
many others — as the regional head nancial Services predicted Avanti’s
of Sea Food Exporters Association revenue growth to be flat for this
— to do the same. Kumar was also Formed JV with Thai Union year (2020/21) but to grow at 9 per
instrumental in getting special per- Frozen Products PCL, which cent CAGR over 2021/22. “Healthy
missions for processors to run their helped in new product growth and margins amidst chal-
factories during the lockdown to development lenges,” states Vincent Andrews,
preserve the procured stocks. research analyst, Geojit, on the sec-
Kumar’s decision made business ond quarter (July-September 2020)
sense too. Throughout the Covid-19 Constructed a new hatchery performance of Avanti.
lockdown period and beyond, Avan- with a capacity to produce The resilience of the company
ti not only retained its farmer base, 400 million-1 billion seeds in the shrimp export business has
but also added new farmers and new to do with its market and product
areas to its sales network. The com- strategy also. Kumar says while the
pany’s customer-first approach also US and Europe remain key export
Added new farmers, areas
saw Avanti sending technical teams markets, it has started to explore
to its existing sales
to aqua farms to provide necessary other markets too. Similarly, prod-
support to farmers to ensure con- network uct offerings have also changed,
sistent performance and quality for with value-added products ac-
shrimps. “Farming too is a commer- counting for the bulk of its exports.
cial decision,” adds Kumar. Adopted a customer-first The company sells cooked shrimps,
This is not the first time Avanti approach; sent technocal skewers and marinated products
decided to put its farmer-first policy teams to aqua farms to to Europe, USA, Japan, Korea, Aus-
in practice. In 2018/19, the extended provide support to farmers tralia and West Asia. “Demand is
winter in the US — the key market there because it is a food product.
for shrimps — slowed the movement Unless you have a good customer
of stocks and depressed prices. India base, there is not much demand for
had a prolonged summer the same non-value added products (during
year, which led to diseases and a 15-20 per cent decline Covid),” says Kumar. “We work with the US and Euro-
in shrimp culture. By supplying fish feed at the same pean customers who are into retail and restaurants, big
price even at the cost of profit margins, Avanti stood by restaurant chains. Their requirement has not declined
the farmers then too. 2019/20 had almost brought the much.”
industry back to normal, before Covid-19 struck. It is to Kumar sees merit in backward integration. The
Kumar’s credit that Avanti has been adding 600 to 700 aquaculture cycle begins with the hatchery, the seed.

Then comes the farmer and shrimp feed, and finally pro- an annual growth rate of 9 per cent from 137.58 lakh met-
cessing and exports. Avanti is already in the last two — ric tonnes (MT) in 2018/19 to 220 lakh MT by 2024/25. If
feed and processed shrimp exports. The company has the scheme gets implemented well, there will be more
just started its hatchery too. “It can produce around 400 demand for shrimp seed and feed. There will also be ad-
million seeds, which is expandable, to one billion. We ditional supply of high-quality shrimp for processing
entered into this space to give the farmer a good seed,” and exports. Along with other stakeholders, companies
says Kumar. like Avanti will also benefit in the medium term.
Helping Avanti introduce good-quality feed and Right now, bulk of Avanti's revenues come from the
firm up global supply contracts is its joint venture with feed business. But exports are growing and volatility in
Thailand-based Thai Union Frozen Products PCL, the international shrimp prices, farm gate shrimp prices,
world’s-largest seafood processors and leading manu- non-tariff barriers, even fluctuating foreign exchange
facturer of prawn and fish feeds. “Technically, we work rates can be concerns for Avanti. Kumar is trying to
together in formulating new feed formula. In processing, safeguard the company against such business risks by
being the largest processor, they help us in value addi- developing domestic and alternative markets to supple-
tion of products. The newer products help open the US ment US exports, adhere strictly to traceability, scien-
and European markets for us,” Kumar explains. tific pond management and adopt judicious pricing and
The raw material supply side is to get a big boost be- forex management. The most important strategy will
cause of the Central government’s policy of “Economic continue to be customer satisfaction. As Kumar says,
Revolution through Blue Revolution”. The Pradhan customers should come to them due to the inherent ad-
Mantri Matsya Sampada Yojana launched for fisheries in vantages they have. “It (business) should be a pull more
May 2020 with an investment of over `20,000 crore over than a push.”
the next five years can help small and marginal farmers
increase their fish and shrimp production. The target is @joecmathew
Delta Electronics committed to innovation and energy conservation FOCUS

celebrates its 50th global anniversary BUSINESS
Singapore, Thailand, China and the U.S. Charging Solutions, Rail Transportation Solutions, Energy
As an energy-saving solutions provider with core Storage Solutions, DC Fans & Blowers, and Components.
competencies in power electronics and automation, Delta Taking reins of Delta Electronics India now, Mr. Niranjan
is a frequent recipient of international awards and related S Nayak has over 24 years of experience in various
recognition for innovation, design, and corporate social Industries and Businesses like Telecom, Renewable Energy,
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year for the prestigious Dow Jones Sustainability™ World done his MBA in marketing. He has started his journey in
Index (DJSI World). Delta was ranked by CDP at the Climate 2004 with Delta Electronics India. In 2014 he took the role
Change Leadership Level. In response to the challenge of of Business Head- PV Inverter Division, where he identified
climate change, Delta has been committed to the R&D the areas with significant market potential and has drawn
of innovative, energy-saving products, solutions and up a clear strategy for Delta Solar Inverter business to
services that contributing substantially to the sustainable maintain No.1 position in Rooftop Segment consistently
development of mankind. for five years in India. He has led towards a successful track
Niranjan Nayak
Delta Electronics India Private Limited, operating since record with leadership skills and managing the existing
Managing Director, Delta Electronics India 2003, is a group entity and a leading Power and Energy business and further development across all the verticals.
D
elta Electronics, founded in 1971, is a global provider management company. It is a 100% subsidiary under the In the last 50 years, Delta has devoted itself to
of power and thermal management solutions ultimate control of Delta Electronics (Thailand) PCL. Delta environmental protection and energy-saving. Delta’s
with a mission, “To provide innovative, clean and operates in three business categories: Power Electronics, contributions to sustainable development includes
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Back From
The Brink
Best CeO
autO aNd autO
aNCillaries
` 5,853.2 cr/11.51%
PBIT/ 3-yr CAGR
`663.52 cr/32.14%
PAT/ 3-yr CAGR
`485.54cr/44.65%
3-yr Average TSR
-11.86%
38.79*
ROE/ ROCE
14.96%/19.28%
CASH/ DEBT
`318.48 cr/ `6.65cr

Net Profit Margin
8.43%
*For oct 2019-sept 2020; stan-
dalone data; total income, PBIt &
PAt net of extraordinary items; tsr:
total shareholder returns;
source: ACE Equity

IndIa’s Best CeOs: NIKHIL NANDA, CMD, EsCorts LtD
From Facing a potential collapse to

becoming one oF the best perForming
automotive Firms in the country,
Nikhil NaNda has scripted a remarkable
turnaround story at escorts
By SUMANT BANERJI
PhoTogRAPh By vIvAN MEhRA
the summer of 2003, Nikhil Nanda, Chairman

and Managing Director of Escorts Group, found him-
self perspiring in the CEO’s cabin of the company’s
factory in Faridabad on outskirts of the national capi-
tal. Despite the heat, the reason for the power cut sent
a chill down his spine — the power department had
stopped electricity supply as the company had not paid
its bills. For a manufacturing company, it represented a
point of no return, the proverbial last nail in the coffin.
“Those were really dark days. I still shudder a bit
when I recount them,” says Nanda, who was executive
director of the company then. He was elevated as joint
managing director in 2007 and then managing direc-
tor in 2013 in the company founded by his grandfather
more than seven decades ago.
There were many reasons for the crisis at Escorts,
the largest tractor maker in the country in the 1980s.
From being a One was the huge debt it had piled up after a wave of
company weighed ill-advised diversification into unrelated and capital
intensive businesses like telecom and healthcare. Then,
down by debt, to
as the economy liberalised, foreign players began to
becoming a net
go solo in the core automotive business, intensifying
zero debt firm, competition. Escorts found itself on the backfoot. By
to now sitting the turn of the century, jittery bankers lost faith and
on cash, it has suggested an honourable exit for the promoters, the
been a satisfying Nanda family.
journey. Our next Nikhil Nanda had barely cut his teeth in the busi-
stop is 15 per cent ness back then and the task ahead was uphill. The group
EBITDA margin, was still in black but heavily indebted. To pare down
but it doesn’t end the debt, it exited a number of non-core businesses —
there. We want to selling its motorcycle JV that used to make Rajdoot
be the benchmark cruisers to partner Yamaha in 2001, auto components
in EBITDA in this JV with Mahle group and construction equipment JV
industry” with JCB of the UK. But that was not enough. Even by

IndIa’s Best CeOs: NIKHIL NANDA, CMD, ESCortS LtD
2004, debt was high, around `1,200 crore. Escorts needed

an overhaul.
How the Three
“We were confused. There were too many distractions Businesses Stack Up
in business. We were stretching ourselves and our resourc-
es by trying to do too many things,” he says. “We lacked fo-
.6
cus and in business that is a recipe for disaster.”
,4 37
A slow and steady comeback followed. In mid-2000s, Agri Machinery 4
it sold the distractions — Escotel and Escorts Heart Insti- (Tractors)
tute. This reduced debt and freed up some capital for the
.7
core tractor business. By the time Nanda became joint MD,
,275
a plan had started taking shape. Escorts needed to get its 2
mojo back in tractors. “I realised early that customers still
had a lot of respect for the brand and our products. They
were forgiving and were willing to trust us provided we had
the products. So, the plan was clear,” he says.
The first green shoots emerged in 2011. Between fiscals
2008 and 2020, the company invested a record `986 crore,
mostly into product development. The outcome was a new
range of tractors – Farmtrac, a range of high-power tractors
that opened up a new market for the company, and Pow-
ertrac, with superior fuel economy. Domestic sales doubled Construction
from 21,011 units in FY03 to about 45,000 units in FY08. Equipment 9.8
They zoomed to over 80,000 units by FY18. 83
At the same time, Nanda worked hard to make the
company leaner, more streamlined and frugal. The efforts 9.4
showed up in EBITDA margin, a barometer of a company’s
20
efficiency. Between fiscals 2008 (12 months) and 2014 (18
months), consolidated top line grew from `2,653 crore to
`6,502 crore. EBITDA margin, negative between 2003 and
2006, rose to 6 per cent in 2014. Revenues FY 20
“We sunk in a lot of investments in research and devel-
opment. The products needed to speak for themselves on Revenues H1 FY 2021
the farm. Our motto was simple, don’t overpromise, but in ` crore
Source: Company
overdeliver,” says Nanda. “We also instilled the feeling that Railway
we needed to earn our salaries and it had to start from me. Equipment
I do not believe I own Escorts. Just because I am the pro- 7.2
moter’s son does not justify my position. I needed to show 47
it through results.”
5.1
The story has only become sweeter in the last six years 21
and particularly in the last three years. In FY19, tractor
sales came close to the psychological 1,00,000 mark. In the
last five years, revenues have grown by an average of 22 per
cent per annum while EBITDA margin, a subject of much
obsession for Nanda, has risen to 11 per cent. The target is to
improve it to 15 per cent, the best in the business.
“From being a company weighed down by debt, to be-
coming a net zero debt firm, to now sitting on cash, it has
been a satisfying journey. Similarly, we have turned the cor-
ner from negative EBITDA to single digits and now double sector. The story has been closely tracked by peers from
digits. Our next stop is 15 per cent, but it doesn’t end there. across sectors and they are impressed. “What Nikhil has
We want to be the benchmark in EBITDA in this industry,” done is inspirational. He has galvanised and transformed
he adds. his company into a sharply focussed entity that has taken
The remarkable turnaround and the sheer weight of the a life of its own,” says Anil Rai Gupta, the Chairman and
numbers on the back of stellar growth in last three fiscals Managing Director of Havells India who is himself a second
has earned Nanda BT’s Best CEO award in the automotive time winner in the consumer durables category.

IndIa’s Best CeOs: NIKHIL NANDA, CMD, EsCorts LtD
Sharp Rise in Mcap with Japan’s Kubota. It has also expand-

ed its other agri-led businesses such as
In last Few Years seeding, planting and harvesting equip-
ment. It is even upping the ante in the in-
12000 dustry with advanced technology prod-
10000 ucts with an eye on the future. In 2017,
Market Capitalisation (`cr) it unveiled its first electric tractor con-
8000 cept, showcasing its readiness for the
6000 future. Similarly, in 2019, it launched
its Digitrac brand of high-power trac-
4000 tors that are available only through
2000 online channel. This has served the
company well in the pandemic. The tie-
0 up with Kubota, besides aiding exports,
March 2003 March 2020 will also help the company in future
growth. The Japanese firm has also
bought a 10 per cent stake in Escorts for
`1,042 crore, improving the liquidity of
the company. Nanda has great expec-
And the story is only getting bet- tations from the rural economy. “The
ter. Two consecutive good monsoons cyclicity in the farm sector is shrinking.
have ushered in strong growth in agri- The way agriculture is changing in this
culture-led rural sectors that promises country, it is going to surprise us all.
to provide a big upswing to the tractor The next few years are going to be phe-
industry. While all other sectors are nomenal,” he says.
counting losses in FY21, a year ravaged Even if Nanda’s optimism does not
by the pandemic, the tractor industry materialise — a drought year can scut-
may be in black this year. “Given the tle best-laid plans — analysts believe
strong traction in the rural economy there is significant growth potential
on the back of a bountiful crop season in the company’s other two businesses
last year, we expect that the start of the Mantras For which can act as a cushion in the event
next tractor upcycle may last another Success of a downturn in agriculture.
two years. We believe Escorts will be in “The next leg of growth for Escorts
a better position to reap benefits of this Sold non-core businesses can come from the non-tractor busi-
upcycle like never before,” Vishal Sriv- such as telecom ness. Railways and construction equip-
astav, a research analyst at Edelweiss, and healthcare to ment currently account for 23 per cent
said in a report in July. “We expect its reduce debt of its top line, a modest growth from 19
tractor business to grow 11-12 per cent per cent in FY16,” says Srivastav of Edel-
a year during FY20-23 due to strong fo- weiss. “The share of these businesses in
cus on exports, coupled with near-term Between 2008 overall EBIT has grown considerably
expectations of healthy growth in the and 2020, invested to 18 per cent from negative in FY16.
domestic market.” `986 crore, mostly on Improving profitability and growing
Nanda says while he had antici- product development top line of these businesses will be a sig-
pated an upswing in demand for trac- nificant advantage for Escorts as it will
tors based on the cyclicity of the busi- provide a cushion from the cyclicality
ness, the strong demand during the of the tractor business.”
Made efforts to make the
lockdown was pleasantly surprising Bankers now line up outside Nan-
company leaner, more
even for him. Though the company has da’s Faridabad office not as recovery
two other business verticals, railways
streamlined and frugal agents but to offer fresh loans. There
and construction equipment, the for- is no shortage of electricity either. He
tunes of the company are mostly linked may have been born with a silver spoon
with agriculture as farm equipment Focused on exports to but has earned not only his salary but
accounts for 80 per cent of revenues. reduce dependence stripes too.
Nanda is also planning to exploit export on the uncertain
opportunities for which he has tied up domestic market @sumantbanerji

IndIa’s Best CeOs: AdityA Puri, Ex-Md , HdFC BAnk
Best Yet To
The share price

has gone
up after my
leaving. So, why
are people wor-
ried about my
leaving?"
80
Best CeO
BANKiNG
Come
` 1,38,073.47cr/19.1%
PBT/ 3-yr CAGR
`36,607.40cr/18.25%
PAT/ 3-yr CAGR
`26,257.32 cr/21.75%
3-yr Average TSR
The 70–year-old AdityA Puri, -4.62%

who spenT over Average Market Cap Y-o-Y Growth *
Two-and-a-half decades as 1.10%
ceo & Md, banked on risk
MiTigaTion, Technology and ROE/ ROA
16.4%/1.89%
reTail/rural ouTreach To
creaTe india’s second-largesT 3-Yr CAGR - NPA
bank froM scraTch -5.13%

Net interest Margins
By ANAND ADHIKARI
PHotogRAPH By RAcHIt goswAmI 3.82%
*For Oct 2019-Sep 2020; Standalone data;
total income, PBt & PAt net of extraordi-
nary items; tSr: total shareholder returns;
nPA : non Performing Assets:
Source: ACE Equity
phenomenal deals and bets on data-

driven telecom and modern retail busi-
nesses.
But building a banking behemoth
in a tightly regulated sector is no mean
feat either. In two-and-a-half decades,
HDFC Bank has emerged as the world's
10th most valued bank, displacing Ci-
tibank and HSBC. Puri had incidentally
honed his skills at Citibank in Malaysia
and India. Today, his bank has a balance
is one of india's most admired and longest serving profes- sheet of Rs 15.30 lakh crore, next to that
sional CEOs. During his 26-year stint at the top, Aditya Puri of the country's largest lender, State
created India’s second-largest bank from scratch. He may be Bank of India. Its market cap, Rs 7.60
an inspiration for many entrepreneurs and CEOs, but Puri lakh crore, is higher than that of all pub-
himself looks up to three others. “Jamie Dimon, Satya Nadella lic sector banks put together and next
and Mukesh Ambani,” says Aditya Puri, who retired as CEO of only to that of RIL and TCS.
HDFC Bank in October this year. He is being modest consider- The secret behind the bank’s amaz-
ing that he is in their league when it comes to shareholder re- ing run has been top-notch asset qual-
turns, performance consistency and building a future-ready ity, focus on retail lending, where NPAs
organisation. But he admires 64-year-old Dimon, the CEO are usually low, staying away from risky
of JP Morgan Chase, for building the most reputed US bank; project loans, digitisation and focus
53-year-old Nadella for transforming the culture of technol- on rural and semi-urban areas. What
ogy giant Microsoft; and 63-year-old Mukesh Ambani for the about the future?

IndIa’s Best CeOs: AdityA Puri, Ex-Md, HdFC BAnk
LOOKING AHEAD not venture into risky project loans.

Puri has promised shareholders that Even today, exposure to large corpo-
the best is yet to come. His words must rates is only one-fourth of the lending
have allayed shareholder worries over book. The retail portfolio is around
his exit due to which the bank faced 55 per cent of advances. That is why it
a period of uncertainty till Sashi Jag- showed resilience after the 2008 finan-
dishan emerged as his successor. “The cial crisis and grew revenues, profits
share price has gone up after my leav- and assets at 15-20 per cent. A former
ing. So, why are people worried about banker, Moses Harding, who worked
my leaving?” says Puri. with SBI and IndusInd Bank, had met
Clearly, he has given the bank a Puri in his house after the merger of
strong foundation for future growth. Centurion Bank in 2004. Puri, when
HDFC Bank’s revenues, profits and as- Mantras For prodded, gave an analysis of differenc-
sets have been rising by 20-25 per cent Success es between HDFC Bank and its close
CAGR over last three years. That was rival. Puri said the rival bank is a heav-
a period when India’s GDP growth Built a strong retail- ily made-up beauty that will lose value
contracted from 7 per cent in FY18 to focused consumer bank when it rains (tough times). The rival
4.2 per cent in FY20. “We are related struggled to keep pace after the 2008
for part of our growth to GDP growth. financial crisis.
The rest is market share growth,” says Expanded into rural, The post-Covid disruption also
Puri. “We have a product range which semi-urban areas to tap failed to impact the bank's run. In the
suits demand. We have also maintained the new middle class worst affected first half (April-Sept) of
a balance between risk and reward. FY21, it reported revenues of `60,353
There is enough demand in this coun- crore and profits of `14,171 crore.
try to grow profitably,” says Puri. The These numbers compared well with
Adopted digitisation to
bank has been known for consistency pre-Covid second half (Oct-March) of
transform the bank
in revenue growth and profitability. FY20 when the bank had reported rev-
Puri was the first employee of the enues and profits of `59,254 crore and
bank, promoted by HDFC, under the `14,343 crore, respectively. The stamp
leadership of Deepak Parekh. His strat- Ensured lowest NPAs, of approval comes from none other
egy involved bringing service capabili- measured growth with than global ratings agency S&P, which
ties of foreign banks and distribution focus on underwriting recently said India’s sovereign ratings
reach of state-owned banks. Aseem quality business prevent it from upgrading the bank’s
Dhru, who spent two decades under ratings.
Puri, recently penned a note for him
.“The man could make a donkey win a derby.” Dhru now Best Yet To Come
heads non-banking finance company SBFC Finance. The strategy for the next three-five years involves rei-
At the bank, Puri never worked late hours but made sure magining the branch channel as a financial services mar-
that the team knew the strategic vision, execution roadmap ketplace, payment services, virtual relationship manage-
and expected result or the 'ladoo' as he called it. He used to ment and scaling up of subsidiaries. “If you go back to 7-8
wind up his day by 5.30 pm, a fact corroborated by his for- per cent GDP growth with the distribution network that
mer boss at Citibank, the late Nanoo Pamnani. “Puri was an we have, you will be amazed with the results,” says Puri.
outstanding professional, quick on his feet and extremely “In normal terms, along with India's potential, when you
sharp. He always delivered on targets. In fact, he delivered reach GDP growth of even 6.5-7.5 per cent, you will see
more than what he promised. So I had no reason to ask him the true potential of the bank,” says Puri. Semi-urban
to sit late at Citi,” Pamnani said in an earlier interview to BT. and rural expansion and digital opportunity are the new
Sameer Bhatia, another professional who worked with him growth engines.
and later founded SME Corner, said Puri believed in effective “Semi-urban and rural India are largely virgin markets
delegation. ” for organised finance on both assets and liabilities side,”
says Puri. For decades, public sector banks with good dis-
Delivering Across Cycles tribution focussed only on liabilities or mobilising low-cost
The fast growth hides how conservative the bank has been deposits. Some NBFCs explored the assets side but with
in taking risks. It did not chase growth blindly even during niche products like tractor, two-wheeler and gold loans. In
the booming 2000 decade. It was clear from day one that it the last six-seven years, HDFC Bank has created a large dis-
would grow at a measured pace, focus on retail lending and tribution network, so much so that almost 55 per cent of its

branches are now in non-urban centres. “If you are both on years back,” says Puri.
lending and borrowing sides in semi-urban and rural India, Eventually, the six-member succession committee un-
then I see, over the next five years, a middle class equivalent der Shyamala Gopinath also put its stamp on Sashi. Was
to the current middle class in this country,” says Puri. appointment of change agent the first signal from Puri to
The expansion in rural India, where the bank has over the committee for his likely successor? “The first step was
half its branches, will help it tap new opportunities. But it to understand the talent available. To test whether the per-
is also facing challenges from new small finance banks and son would be able to deliver,” says Puri. “Let's understand
new-age NBFCs which are serving the unbanked and offer- there is now a change in geopolitics, geo-economics and
ing higher interest rates on deposits. geo-health. Change will be very rapid. What I needed was a
In the last five years, HDFC Bank has also transformed person who understood microeconomics, technology, risk-
itself into a digital bank. In payments, it has built a strong reward and profit dynamics and, most importantly, would
base of cardholders and merchants. It is also lending digi- work as a team,” says Puri.
tally with 10-second personal loans. Under Digital 2.0, it is Nitin Chugh, MD & CEO at Ujjivan Small Finance
working on technologies like robotic process automation, Bank, says Puri is an inspirational leader par excellence.
machine learning, AI and blockchain. This is the phase for “He has inspired many generations of bankers and profes-
more partnerships. “We have clearly defined goals,” says sionals with his humane approach to business and people.
Puri. A month after Puri’s exit, RBI had asked the bank to I’ve always found in him a man with a golden heart, some-
temporarily stop issuing new credit cards and launch new one who values the well-being of his people and customers
digital initiatives because of outages in online facilities. It is over everything else,” says Chugh.
fixing the problems on a war footing. The 70-year-old banker has no plans to sit at home. He
is now an advisor to private equity Carlyle Group. Next on
Passing the Baton the agenda are education and healthcare. So, when are we
Two years before the succession date, the bank appoint- going to hear about his next move? "If it happens, you will
ed Sashi Jagdishan as the change agent. That was Puri’s hear it, if it doesn't, I will play golf," he says.
idea. “We had radically changed the bank in the last two
years. That was based on plans made two-and-a-half @anandadhikari
IndIa’s Best CeOs: H.M. BAnguR, MD, SHREE CEMEnT
Cementing
Gains H.M BANGUR keeps costs and debt under
check to deliver a winner
By anik Basu
PhotograPh By suBir haLDEr
swathe of the country’s business landscape

struggles to find its bearings post-lockdown.
The association with East Bengal — primar-
ily a soccer club — will not be limited to foot-
ball. The plan is to promote other sports too.
Soccer Punch
There is astute reasoning behind Bangur’s
move to associate with East Bengal. It al-
lows him to piggyback the club into newer
markets — apart from north and south India
— with Indian Super League (ISL). It also
coincides with plans to move beyond value-
conscious market segments. “Football is a
cheap way for any company to build its brand
equity nationally,” says sports management
consultant Sabyasachi Dasgupta, whose
the middle of the coronavirus crisis, the `12,000-crore, company Leisure Sports Management had
Kolkata-based Shree Cement went ahead and cemented a launched India’s first franchise league, the
partnership with one of India’s iconic football clubs — East Premier Hockey League, in 2005.
Bengal Sporting Club — soon after it completed 100 years.
Shree Cement picked up a 76 per cent stake in the club, Unexpected Moves
which has since been renamed Shree Cement East Bengal Bangur’s tryst with football came during
Foundation. “We want to be associated with major activi- a protracted slump — GDP growth falling
ties of West Bengal,” says Shree Cement Managing Direc- over eight quarters since March 2018. The
tor Hari Mohan Bangur. “This is the right time to invest in situation worsened with the lockdown. As
a global sport like football.” Bangur concedes, “We started this year with
That’s a smart branding move as Shree Cement looks a very negative feeling, not knowing what
to build on its brand equity in newer markets, even as a vast will be there.”

BeSt CeO
CeMeNt
` 12,193.1 cr / 10.67%
PBIT/ 3-yr CAGR
`2,246.73 cr / 10.61%
PAT/ 3-yr CAGR
`1,570.18 cr/ 5.45%

3-yr Average TSR
3.54%
18.94%
ROE/ ROCE
13.94%/15.78%
CASH/ DEBT
`108.16 cr / `3,144.19 cr
Net Profit Margin
13.17%
*For Oct 2019-Sept 2020; Standalone
data; Total income, PBIT & PAT net of ex-
traordinary items; TSR: Total shareholder
returns; Source: ACE Equity
My cost-cutting is
not dependent on the
present economy,
it is a continuous
phenomenon

IndIa’s Best CeOs: H.M. Bangur, MD, SHree CeMent
Yet, in the middle of this, he acquired a football club. But present economy, it is a continuous phenomenon.”
bizarre moves are Bangur’s card. During a similar slump Hence, at a time when companies stopped future proj-
in 2002, he had left a cash-rich suitor stranded at the altar ects because of the uncertainty posed by the pandemic,
and walked away, simply because the union just didn’t feel Shree Cement’s expansions plans were back on track as
right to him. It was a bizarre call, given that the suitor — the soon as the situation improved.
French group Vicat — had offered Bangur `800 crore for Bangur has also refused to get into a rut by sticking to
equal ownership in Shree Cement at a time when he, sad- any standard operating procedure (SOP), which he feels is
dled with excess capacity and high debt during a four-year “not possible” as “everyday something new will come up”,
downturn, was desperate for a bailout. which will require flexibility to be resolved.
On hindsight, calling off a 50-50 deal does not seem Employees are encouraged to try out new things. “If
that bizarre. As Bangur asks rhetorically today: “Who somebody has something to try, there is the freedom to
would have taken the decisions… me or them?” knock,” Bangur says.
“This is how we continuously grow... This is something
Beating Covid that makes us different from all other commodity compa-
The 2002 experience has left a lasting impression on Ban- nies, not only cement companies,” he adds.
gur, a fear of debt. “Debt is very good for growth but dur-
ing bad times, the loan and the interest will kill you,” he Future Beckons
explains. “We have seen many examples, and now we want For all the fears over coronavirus, the biggest leg-up the
basically to remain debt free.” company got during its outbreak was from the pandemic
Mantras For Success

Kept debt low so that Bought stake in
the company can football club to take the
remain solvent during brand national
slowdowns
Has refused to get into a

Check on costs helped in rut by sticking to standard
maintaining volumes operating procedures
Bangur’s obsession with keeping debt levels low has itself; in Bangur’s view, demand picked up in the second
helped the company improve its operational performance quarter on account of labour migrating to their home-
in the second quarter of 2020/21 as the lockdown eased and towns, mainly in in the rural areas and Tier-II cities.
sales picked up. Bangur points out that as people returned home to
Data from financial services company Emkay Global smaller towns and villages in large numbers during the
shows while the cement sector as a whole clawed back pandemic, it created a space shortage. With more people
to a year-on-year recovery of 3 per cent in Q2, Shree working from home in Tier-II cities than ever before, it led
Cement posted the second highest growth in volume to people adding rooms. That has resulted in a rise in de-
(16 per cent) among the main players. Its Q2 net profit mand for cement. Not surprisingly, the demand has come
surged 77.1 per cent year-on-year to `547.25 crore. This from eastern and central India, which, Bangur says is be-
was considerably higher than the `371.4 crore estimated cause of the lower levels of urbanisation in these regions.
by analysts tracked by Bloomberg. It trailed only JK Ce- Also much of the migrant labour comes from these regions.
ments (25.6 per cent), way ahead of the third-placed Am- He, however, does not expect demand to cross the 4-5 per
buja Cement and UltraTech Cement (6 per cent). cent range, quite similar to what it was a year ago.
Despite the small demand pick-up, Bangur wants to
Costs & Innovations be prepared, and plans to double production capacity over
According to Bloomberg, Shree Cements achieved volume the next seven to eight years. And taking his brand for-
growth by keeping prices in check. It’s a business principle ward will be football.
Shree Cement has been following for the past 15-20 years.
Says Bangur, “My cost-cutting is not dependent on the Anik Basu is a Kolkata-based writer

IndIa’s Best CeOs: D.C. Mehta, CMD, Deepak Nitrite
The
Chemical
Man
Backed By aggressive product-expansion
strategies and Big investments,
D.C. Mehta-led deepak nitrite is taking the
gloBal chemical industry By storm
By P.B. Jayakumar
PhotograPh By NaNDaN DaVE
bout seven-eight years ago, Deepak C. Mehta, per cent to `2,237.2 crore, while net profit grew 70.05
Chairman and Managing Director of 50-year-old per cent to `544.04 crore. “We choose our products
Deepak Nitrite was planning an aggressive expan- that have the potential to be among the top three in
sion in Europe, backed by acquisitions. During one the world,” says Mehta.
his meetings in the country, a veteran European The company makes over 100 basic, fine and spe-
industrialist told him, “Deepak, you are here to buy cialty chemicals and performance products from six
us, while we are looking at your country as one of our manufacturing locations across India. About 35 per
most potential markets.” cent of its `4,265-crore revenue in FY20 came from
“It was an eye opener,” says Mehta. The chemi- exports to over 700-plus clients across the globe.
cal industry in Europe was stagnating at 1-2 per cent, “Its revenue has grown at a CAGR of about 13 per
while India was growing at over 7-8 per cent. Mehta cent over 10 years and the stock price has increased
changed plans and decided to focus on producing by about 275 per cent during the same period. With
more from India. “In a way, I was among the first to extensive research & development (R&D) and rapid
promote Atma Nirbhar Bharat, even before our gov- expansion of manufacturing facilities, the company
ernment started promoting it,” says Mehta with a has a strong position in the export market, with
huge grin. around 70 per cent share of the Indian inorganic
Deepak Nitrite’s income grew at a three-year compound market,” according to analyst Pulkit Baid
compounded annual growth rate (CAGR) of 21.63 of Vista Capital Research.

Best CeO
CheMiCals
` 2,237.24 cr / 21.63%
PBIT/ 3-yr CAGR
`728.04 cr / 89.95%
PAT/ 3-yr CAGR
`544.04 cr / 70.05%
3-yr Average TSR
23.35%
82.53%
ROE/ ROCE
42.68%/ 47.21%
CASH/ DEBT
`3.73 cr/ `207.5 cr

Net Profit Margin
24.4%
*For Oct 2019-Sep 2020; Standalone data;
total income, pBit & pat net of extraordi-
nary items; tSr: total shareholder returns;
Source: aCe equity
The world is looking at

options to China, the
world’s largest chemical
manufacturer, and India
can supply
cost-competitively
89
IndIa’s Best CeOs: D.C. Mehta, CMD, Deepak Nitrite
Targeting the world Taking on China

Deepak Nitrite is already among the top The Indian chemical industry is cur-
three global players for xylidines, cumi- rently Asia's third-largest and the sev-
dines and oximes, widely used in agro- enth largest by output in the world after
chemicals and pigment industries. It is China, Germany, the US, Japan, France
the leading producer of sodium nitrate and Italy. It is poised to become fourth
in India since 1972. Deepak Phenolics, or fifth by 2025, says Mehta, past Presi-
the company’s 100 per cent subsidiary, dent of the Indian Chemicals Council
is a new platform for products based on (ICC), and Chairman, FICCI Gujarat
phenol, acetone and isopropyl alcohol State Council. With nearly $15 trillion
(IPA). Phenols are used for making glue, of Chinese exports in chemicals and
household products and as intermedi- plastics subject to US tariffs, India is
ates for industrial synthesis. Acetone Mantras For set to gain market share estimated to
is a solvent used in manufacturing of Success be around $4.7 trillion, according to
pharma products, plastics, cosmetics a research report on Deepak Nitrite
and personal care products. IPA is also Invested more than by Equentis, which predicts a revenue
a key component in the manufacture `1,400 crore over 25 CAGR of 16 per cent and PAT CAGR of
of cleaning, disinfectants, inks, agro- months, one of the largest in 27 per cent for the company over FY19-
chem formulations, resins, acrylic India's chemical sector 24. A long operating history and estab-
emulsions and pharmaceutical prod- in recent years lished track record in the global chemi-
ucts. Hindustan Organic Chemicals, cal intermediates industry, diversified
a government company and SI Group product profile mitigating the risk as-
India (SIGIL) were the major manu- Created manufacturing sociated with cyclicality in different
facturers with 30,000-tonne capacity capacity of 2 lakh tonnes product segments, multi-purpose
each, while the Indian demand alone per annum of phenol and 1.2 manufacturing facilities with signifi-
was over 2 lakh tonnes. lakh tonnes of co-product cant backward and forward integration
Deepak Phenolics invested more acetone, used in pharma, linkages and improvement in financial
than `1,400 crore over 25 months, one household products, etc profile driven by increasing scale of op-
of the largest investments in India’s erations and cash accruals are the main
chemical sector in recent years, to cre- strengths of Deepak Nitrite, according
ate a manufacturing capacity of 2 lakh to the report. The company will ben-
Formed a new subsidiary,
tonnes of phenol per annum and 1.2 efit with the India chemical industry is
Deepak Phenolics, a new
lakh tonnes of its co-product acetone, growing at 8-10 per cent annually, the
and supported by a captive capacity for
platform specifically for report says.
26 lakh tonnes of chemical compound products based on A research driven company, Deepak
cumene. The plant, with advanced digi- phenol, acetone and Nitrite is readying a pipeline of fine and
tal IoT systems, process technologies isopropyl alcohol (IPA) speciality chemicals products and has
and zero emission, is eight times bigger purchased 125 acres of land at Dahej to
than all existing facilities in India. It set up manufacturing facilities. “The
was commissioned in November 2018. world is looking at options to China,
“It will help in saving half a billion dollars in imports for the the world’s largest chemical manufacturer, and India can
country,” says Mehta. Deepak Phenolics already contrib- supply cost-competitively. That is where companies like
utes 47 per cent to the group’s business. Deepak Nitrite can play a role,” says Mehta.
The new capacity has come in handy during Covid-19. There has been a decline in exports from China due to
Deepak C. Mehta’s younger brother Sailesh C. Mehta- shutdown of multiple plants. India also stands to gain from
owned Deepak Fertilisers and Petrochemicals Corpora- the current trade war between the US and China. Planned
tion Ltd (DFPCL) was the only manufacturer of IPA in capacity expansions product extensions are expected to
India with an installed capacity of 70,000 tonnes per an- aid Deepak Nitrite’s growth, according to industry experts.
num (TPA). The country’s total demand for IPA is around Mehta says India can compete with China provided the
200,000 TPA since it is the most commonly used disin- right incentives and policy initiatives such as big common
fectant for sanitisers. Global demand of IPA is expected to infrastructure and tie-ups with West Asian upstream com-
reach 522,000 TPA during 2020-2024. Since May, Deepak panies are in place.
Phenolics has commenced production of IPA from acetone Deepak Nitrate is already on the path to become a glob-
at its manufacturing facility at Dahej, which has an installed al leader in the chemical industry.
capacity of 30,000 TPA. “Now we are doubling the capacity
and this will go on stream by April-May 2021,” says Mehta. @pb_pbjayan

IndIa’s Best CeOs: Anil RAi GuptA, CMD , HAvells inDiA
“Being self-
reliant may be
the corporate
buzzword
today but for
us it has always
been the only
way to do busi-
ness. Almost
95 per cent of
whatever
we sell is
made in India
Best CeO
COnsumeR duRABles
` 9,541.1 cr/15.02%
PBIT/ 3-yr CAGR
`952.93 cr/4.34%
PAT/ 3-yr CAGR
`733.03 cr/10.79%
3-yr Average TSR
-2.22%
-13.82%
ROE/ ROCE
17.26%/22.0%
Cash/ Debt
`1,106.92 cr/ `72.37cr

Net Profit Margin
7.72%
*For Oct 2019-sep 2020; standalone
data; total income, pBit & pAt net of ex-
traordinary items; tsR: total shareholder
returns; source: ACe equity
Self-reliant
CEOAnil RAi GuptA of Havells
is reaping tHe fruits of
relying on own resources
and an acquisition tHat is
starting to pay off
By SUMANT BANERJI
PhoTogRAPh By yASIR IqBAl
he one thing that Anil Rai Gupta, the Chairman and

Managing Director of Havells, among India’s largest
consumer electronics companies, misses the most dur-
ing the pandemic is ability to travel and meet distribu-
tors, retailers, vendors and sometimes even customers
across the country. Restricted to his cabin and forced
to manage his business either through virtual meetings
over a computer screen or phone calls, Gupta admits, a
tad grudgingly, that it works alright and leads to ‘not so
insignificant’ cost savings as well. Yet, he misses the hu-
man touch of physical meetings.
“The pandemic has taught not only us but most
around the world that a lot of things can be done virtu-
ally. Some can even be done better (virtually). But I have
to admit I miss physical meetings,” he says in a meeting
which also happened over a virtual interface. “A facetime

Revenue and Margin Break-up FY20

32
Revenue con-
27 tribution (%) 27
23 Margin Con- 23
tribution (%)
16 17
15
12
8
Switchgears Cables Lighting and Electrical consumer & Lloyd

fixtures durables Source: Company
Potential for Growth at Lloyd

Current and projected market size in different categories
Washing Machines Refrigerators Colour Televisions Air Conditioners

in ` crore
source :
CeAMA, Frost &
sullivan
2019 2025
9,500 15,900 18,900 33,600 24,500 45,800 16,300 37,600
or even a call suffices with business partners who I have al- “We have learnt many lessons along the way and taken
ready met in the past or who have been with us for a long some corrective measures. The divestment of Sylvania in
time. But we are a growing company and add so many dis- 2017 is one such example. One thing that we are very clear
tributors, retailers and vendors each year. It is always good about is that, if we are in a particular category, howsoever
to see them personally. I love doing it; it also lays a good big or small, we are there to be leaders — to be in top 3. Else,
foundation for the long term.” we will not be there at all,” he says.
Under Gupta, Havells has indeed grown fast, expanding In isolation, FY20 was not exactly the best year for the
its presence not only in established business segments such company, though, due to the overall slowdown in the Indi-
as electrical wires/cables, switches, fans and bulbs but also an economy. Protracted downturn in real estate and hous-
in new areas like televisions, washing machines, refrigera- ing, a major source of growth — new homes mean more
tors, air-conditioners, air purifiers and grooming products. demand for electrical appliances — was a major concern.
The acquisition of Lloyd in early 2017 was part of the expan- Its top line and bottom line fell marginally during the fiscal
sion plan. Since he took over in late 2014, the company’s but analysts still give the company a thumbs-up as its peers
revenues have nearly doubled to almost `10,000 crore have performed worse.
(FY20), with three-year CAGR of 15 per cent. The pace of “We had a good FY19 but started seeing some head-
growth made Gupta BT’s Best CEO in consumer durables winds at the fag end of the year, which got accentuated in
in FY19, a feat he has repeated in FY20. FY20. The capex cycle in the country was slowing down,

economy, which has benefitted from successive good mon-

soons, meant Gupta could tap into additional consumers in
the hinterland.
“The point I was making about investing in the brand
at all times, it paid us dividends during this time,” he says.
Acquisition
of Lloyd marked “The consumer psyche is changing and he is looking at bet-
serious entry into ter and more reliable brands and not only those that come
consumer durables; at low prices. People are spending more time at home, so
Lloyd propped up household appliances are being used more. The poor qual-
performance by
56% growth ity ones are malfunctioning, so there is a new awareness
Company kept among consumers. We are seen as a quality brand. That is
investing in brand being reinforced today.”
and distribution What is particularly heartening for Gupta is that his
despite the
slowdown play in the big consumer durables business with Lloyd is
starting to pay off. With traditionally lower profitability
and more competition than Havells’ other businesses, ana-
Mantras lysts had begun to see Lloyd as a drag on the group’s con-
For solidated balance sheet. Instead, the government’s thrust
Success on local manufacturing, reinforced with tariff barriers to
The undermine imports of electronics and electricals, particu-
government’s larly from China, is acting as a tailwind for Lloyd. Gupta’s
thrust on local decision to set up a new factory for air-conditioners with an
manufacturing in
electronics and
investment of `400 crore in Ghilot in Rajasthan could not
electricals is acting have come at a more opportune time.
as a tailwind In second quarter results, Lloyd propped up the group’s
performance, registering 56 per cent growth year-on-year
Almost 95 per
cent of whatever the on the back of high demand for air-conditioners, refrigera-
company sells is made tors and washing machines. Consolidated revenue grew 10
in India per cent, but without Lloyd, it would have grown 6 per cent.
Analysts who were earlier sceptical are now more bullish on
Lloyd than on Havells’ core businesses of cables, wires and
switches.
“With AC import ban coming, Lloyds is in the right spot.
They have a strong channel and their AC manufacturing
has stabilised. New products are coming in refrigerators
and dishwashers. These give ample runway for Lloyds in an
industry pegged at `60,000 crore and growing," analysts at
Dolat Capital Markets said in a report dated October 29.
which impacted demand for infrastructure. Consumer This doesn’t come as a surprise for Gupta, who was al-
sentiment was also low,” he says. “One of the things that ways sure that Lloyd would start delivering sooner than
could have been done was to put off investments and go for later. Neither is the theme of self-reliance, which has led to
austerity. But I thought it would not have been prudent, so a number of his peers scampering for local production, any-
we kept investing in our brand and channel (distribution) thing new for him.
and focused on cost in other aspects. We wanted to get the “Being self-reliant may be the corporate buzzword to-
foundation right so that we could capitalise whenever head- day but for us it has always been the only way to do business.
winds turned into tailwinds. It will happen sooner than lat- When we acquired Lloyd, its business was dependent on
er. I remain convinced of the Indian growth story.” imports. Our investment in the AC factory was to correct
The clouds have only darkened in this financial year that. Almost 95 per cent of whatever we sell is made in India.
with the pandemic robbing the company of almost two That is how it has always been and will always be,” he says.
months of business activity and bringing the economy to a For a company this big and with such a diversified
staggering halt in April. It did bring with it a silver lining for product portfolio, very few CEOs can say that with this
Havells, though. With salaried people, a significant propor- confidence. But then, that is what separates the best from
tion of urban and semi-urban consumers in India, spending the rest.
more time at home, there was a spurt in demand for some
household appliances. The general resilience in the rural @sumantbanerji

IndIa’s Best CeOs: Rajeev jain, CeO and Md, Bajaj FinanCe
Quantum
Leaper
Rajeev jain focussed on product creation
in retail and sMe lending at Bajaj finance,
while engaging More with custoMers using
data analytics
By nevin John
PhotograPh By rachit goswami
auging the risk of lending is the primary task of Ra-

jeev Jain, Managing Director and CEO, Bajaj Finance
(BFL), as the non-banking finance company’s (NBFC’s)
profit lies in the last instalment of loan repayment. That
is why Covid-19 and the resultant lockdown were tough
for the lender. Taking up the challenge, Jain, along with
Chairman Sanjiv Bajaj, younger son of industrialist Ra-
hul Bajaj, prepared different scenarios and contingency
plans under each alternative. The result: BFL’s net profit
surged 36 per cent to `965 crore during the July-Septem-
ber quarter. At a time when everybody was predicting a
rise in non-performing assets (NPAs) of lenders, BFL’s
NPA shrunk to 0.37 per cent in the second quarter, com-
pared to 0.65 per cent a year ago.
Jain earlier told Business Today that BFL wants to do
business only with affluent customers who have a mini-
mum annual income of `6 lakh. In rural markets, BFL
deals with customers with annual income above `3.6 lakh.
The classification helps the company drastically cut the

We are
constantly
innovating
and
disrupting,
identifying
the gaps in
our product
portfolio and
filling them
Best CeO
FinanCial seRviCes
` 23,834.15 cr/33.63%
PBT/ 3-yr CAGR
`6,808.13 cr/30.43%
PAT/ 3-yr CAGR
`4,881.12 cr/38.52%
3-yr Average TSR
11.18%
22.19%
ROE/ ROCE
19.3%/3.98%
3-yr CAGR — NPA
44.19%
Net Profit Margin
20.49%
dalone data; Total income, PBT &
PaT net of extraordinary items;
TSR: Total shareholder returns;
Source: aCe equity

IndIa’s Best CeOs: Rajeev jain, CeO and Md, Bajaj FinanCe
risks and increase profitability. Jain’s team finds custom- Success Story
ers with the help of business intelligence and data ana- When Sanjiv Bajaj was picked to head the new NBFC in
lytics, offers tailor-made loans, and cross-sells products 2008, he was given one crucial aide from within the ex-
while tapping new geographies. “If I know the customer, I tended family — Nanoo Pamnani, the brother-in-law
can offer him more products in a frictionless manner,” Jain of Rahul Bajaj's wife who had just then retired from Ci-
had said. tibank. Pamnani was one of Citibank’s youngest CEOs
Existing customers contributed 66 per cent of new at 37. Sanjiv and Pamnani interviewed over 30 candi-
loans during the July-September quarter. According to dates before selecting Jain as CEO. It is this trio — Ba-
Jain, BFL is entrepreneurial on one side and institutional jaj, Pamnani and Jain — that has since charted the com-
on the other. “The entrepreneurial spirit enables us to pany’s amazing rise. The sudden demise of Pamnani last
think quickly, while the institutional year has increased the burden on Jain.
culture ensures that we research, assess But his art of managing risks helped BFL
and create a business plan,” Jain had said. weather the crisis even while there was
“We’re constantly innovating and dis- ‘no business’ during the lockdown.
rupting, identifying the gaps in our prod- In 13 years of operation, BFL has
uct portfolio and filling them.” spread itself across 1,134 urban locations
BFL had always looked at long-term 1,507 rural locations (as on September
business opportunities and stayed away 2020), building assets under manage-
from short-term profitable distractions. ment (AUM) of `1,37,090 crore, 1 per
The NBFC closed its two-year-old infra- cent higher compared to the year-ago
structure lending business in 2012 sens- period. The AUM witnessed a com-
ing a downturn. pounded annual growth rate (CAGR)
Though banks and financial services of 39 per cent in the last 10 years until
companies traditionally function in the March 2020, while net profit surged 40
Mantras For Success

Engaged in Identified Stayed away from short- Prudent asset-
cross-selling potential term profitable distractions, liability management
of products customers while banking on long-term — BFL raises long-
in different with the help business opportunities. term loans and uses
geographies; of business BFL closed its two-year- a mix of borrowings
offered intelligence old infrastructure lending from banks, money
tailor-made and data business in 2012 sensing a markets and
loans analytics downturn deposits
B2C space, Bajaj is both in B2B and B2C. In the retail loan per cent during the same period. According to Septem-
segment, they first reach out to manufacturing companies ber numbers, the biggest chunk of AUM comes from con-
such as LG and Samsung and negotiate a deal. Manufac- sumer lending, which is around 46 per cent of the overall
turers offer a margin for additional sales achieved through portfolio. Rural, SME, commercial and mortgage verti-
BFL. This helps BFL offer consumer durables loans at zero cals contribute the rest.
per cent interest. BFL has grown from two lines of business to about
The main reason for low NPAs is prudent asset-liability 55 lines, including businesses under the new subsidiar-
management. BFL raises long-term loans and uses a mix ies Bajaj Housing Finance and Bajaj Financial Securities.
of borrowings from banks, money markets and deposits. In just 10 years of operations, it found a place among
Earlier, 80 per cent of BFL’s capital requirement was met the Sensex companies. The stock has delivered huge re-
through bank borrowings. It is down to 37 per cent cur- turns. The share price, which crashed to `1,900 in May,
rently. “We are committed to grow our balance sheet by 25 has bounced back to `5,200 as on December 16, with the
per cent and net income by 20 per cent. We want to double company crossing `3 lakh crore in market cap.
the balance sheet and profit in three-and-a-half years,”
Jain had said. @nevinji

BeSt CeO
FMCG
` 12,617.34 cr/10.73%
PBIT/ 3-yr CAGR
`2,794.82 cr/19.27%
PAT/ 3-yr CAGR
`1,969.55 cr/25.29%
3-yr Average TSR
39.86%
42.15%
ROE/ ROCE
70.27%/98.16%
CASH/ DEBT
`1,308.05 cr/ `53.14 cr

Net Profit Margin
15.43%
*For Oct 2019-sept 2020; standalone
data; total income, PBit & Pat net of
extraordinary items; tsr: total share-
holder returns; source: aCe equity

IndIa’s Best CeOs: suresh narayanan, CMD , nestle inDia
Growth
Architect
From a Fuddy-duddy, old Fashioned
multinational to a young, agile and innovative
Food major – SureSh NarayaNaN has ensured
a turnaround For nestle india
By AJitA ShAShidhAr
PhotogrAPh By yASir iqBAl
been five years since Suresh Narayanan, Chair-

man and Managing Director, Nestle India, took over the
`12,000-crore food major. His report card speaks for it-
self. The company has achieved an organic CAGR growth
of 11 per cent in the last five years, operating margins have
increased at a CAGR of 18 per cent, and net profit has risen
36.7 per cent. “In terms of return on capital invested, we
were at 31 per cent in 2016 and we closed last year at a little
over 90 per cent,” says Narayanan.
There is more to Narayanan’s success story. Nestle is a
market leader in seven out of the eight categories it operates
in, its attrition rate is a mere 3.5 per cent compared to 15 per
cent in 2015, and its gender diversity ratio is at 22 per cent
against 11 per cent five years ago.
In August 2015, when Narayanan took over the Indian
arm of the Swiss food giant, the company was at the risk of
closing its century old operations. Its highest-selling brand,
Maggi Noodles, was accused of feeding lead content be-
yond permissible levels, and the organisation was staring
We are innovating at a at an existential crisis. The Maggi crisis had crashed Nestle
pace which is three times India’s revenue in 2015 to `8,175 crore from `9,855 crore in
more than earlier... the 2014, while net profit dipped 53 per cent. That was not all.
new digital age for the Narayanan also realised that the food company’s market
country has arrived share had halved to 15 per cent in the previous four-five

Market
leader in seven
out of eight
categories it
operates in Launched
60 products
with a 70 per
Mantras cent success
For rate in the
last 2 years
Success Decentralised
decision-making;
local teams get
to decide what
to produce and
what not
Invested heavily
in analytics;
empowered
businesses with data,
insights for better
Reduced understanding of
traditional ad buyer behaviour
spends during
lockdown,
focussed more
on digital
years, and it was perceived as being out of sync with the trajectory in the third quarter. Narayanan attributes the
great Indian consumption story. Barring Maggi, the food turnaround to the resilience of his workforce. A salesman in
company was struggling in every other category it was Sikkim walked for three days, 14 km a day, to secure permis-
present in. sion for starting distribution at the peak of the lockdown,
In the last two years, the company has launched 60 new a sales executive took stocks in his car and distributed it
products with a 70 per cent success rate. “We are innovat- to local stores when the regular distribution mechanism
ing at a pace which is three times more than earlier,” says came to a halt. “This is what people have done on their own,
Narayanan. The company has also announced an invest- I haven’t dictated them what to do sitting in Gurgaon,” says
ment of `2,600 crore, more than 90 per cent of which would Narayanan.
go into capacity creation. Its ninth manufacturing facil-
ity at Sanand in Gujarat would be up and running in a few Changing Track
months from now. “It will be digitally enabled, paperless The pandemic led to structural changes in consumer be-
and environment friendly, and 50 per cent of the employ- haviour and preferences, forcing the food major to redraw
ees will be women. We will invest in the prepared dishes its strategy. With people being forced to largely stay indoors
category, and in our coffee, chocolates and confectionary and with out-of-home food consumption no longer an op-
businesses through additional capacity creation,” explains tion, in-home food consumption increased dramatically,
Narayanan. and safety and hygiene concerns made consumers pick
While the second quarter of 2020 was muted for Nestle trusted brands. Nutritious and immunity building prod-
like most of its peers (the company follows a Januray-De- ucts were also in demand. All these led to Nestle India reca-
cember financial year), it bounced back to its earlier growth librating its innovation pipeline.

The company refocussed its portfolio too. It has 400 health-related information. Narayanan says AskNestle,
stock-keeping units (SKUs) across categories, but it decid- which recorded 300,000 visitors in April 2019, had 7.6
ed to produce only the top 100 SKUs that consumers need- million visitors by October 2020. The company has
ed. SKU is a unique code assigned to a product by a retail also launched a Hindi version of the platform, which
store for inventory management, flow, and sales tracking. Narayanan claims got 300,000 visitors within the first
“We did so to simplify the technology, procurement one week of launch. “People’s thirst for genuine knowl-
and portfolio in order to meet peak demand. We said we edge, growth, nutrition and health has gone up, I feel
will produce the rest of it when we have slack time,” ex- heartened that the new digital age for the country has
plains Narayanan. The company focussed on limited SKUs arrived... in some of my brands where digital media ex-
such as multi-packs of Maggi, 50-100 gm packs of Nescafe, penses used to be 10-15 per cent two years ago, they now
500-200 gm packs of Everyday Dairy Whitener, Milkmaid, spend half of their money on digital.”
KitKat and Munch. Nestle’s digital-first strategy is not just
limited to marketing and advertising, but
Decentralised Operations encompasses all facets of its business. It
Last year, the FMCG major had an- has digitised its distribution and sup-
nounced remapping India into 15 ply chain infrastructure. The com-
90
clusters on the basis of geography, pany has also launched T-Hub, a
psychographics and other pur- digitised logistics platform to
chasing habits. This year it has optimise the availability, des-
added a layer of decentralisa- per cent patch and resourcing of lo-
tion to it, by moving a lot of The company's return on gistic movements. “During
decision-making to fac- capital in 2019, against the pandemic there were
tories and sales locations. 31 per cent in 2016. blockages in certain areas
Therefore, if a particular Operating margins have and shut down in others.
geography has greater de- increased at a GAGR of All that was built into the
mand for 500-gram packs of 18 per cent in the last algorithm, which would come
dairy whitener and 50 grams of five years up with optimal routes that one
Nescafe pouches, it is the local could follow in order to make de-
team that would decide what to pro- liveries.”
duce and what not. The food major plans to launch an
“We have invested a lot in analytics, app soon to enable kirana store owners
empowered our business organisations order digitally.
with data and insights using the power of
analytics. We call it the MIDAS (multi-disciplinary analytic Focus on Bharat
system). This is helping us a lot in terms of granular data When Narayanan joined Nestle in the latter part of 2015,
and in sharpening our plans. This will work only when we the company mainly catered to urban Indian consumers.
have decentralised decision-making. It will not work if you There was not much for Tier-II and III buyers. Five years
are sitting in Gurgaon and taking decisions for all parts of later, Nestle has seen higher growth in small towns. “For
the country,” says Narayanan. me places like Vizag, Bareilly and Gorakhpur are equally
The company has set up Covid crisis committees which important and are not mere distribution points. In 2017,
take decisions locally. “If the number of Covid cases is going we had 9,000 distribution points, today, we are at 12,000.
up in the North and there are 70 per cent people working in A year ago we were covering about 30,000-40,000 villages.
the market, the local team quickly decides to pull back 40- Today, we are covering 90,000 villages and the vision is to
50 per cent staff from those areas. Similarly, in the factory if take it up to 1,20,000,” says Narayanan. The company has
cases are going up and they have a shift of 500 people, they also tweaked its portfolio to stay relevant to those markets.
will cut the headcount, quarantine people, and at the same “About two-three years ago, we had 8,000-9,000 feet on
time manage output.” the ground, today we are closer to 11,000 people,” he adds.
The past year hasn’t been easy for the food major due to
Digital Nestle Covid challenges, but Narayanan is confident about the fu-
Like others, Nestle, too, had cut down its traditional ture. While the 60-year-old says that he has a limited run-
advertising spends during the lockdown, and a lot of way in terms of his career, the Nestle board has extended
its focus moved to digital platforms. It reached out to his tenure by another five years.
consumers through its digital platforms Maggi.in and
AskNestle.com, where it put out interesting recipes and @ajitashashidhar

Raising
C. Vijayakumar
transformed
HCL teCH witH
foCus on
produCts and
digitaL serviCes
By RUKMINI RAO
Best CeO
it & ites
` 33,193cr / 17.86%
PBIT/ 3-yr CAGR
`11,415cr / 11.07%
PAT/ 3-yr CAGR
`8,969cr / 9.28%
3-yr Average TSR
-5.06%
12.80%
ROE/ ROCE
26.48%/33.59%
CASH/ DEBT
`1,291 cr/ `178 cr

Net Profit Margin
27.51%
dalone data; Total income, PBiT &
PaT net of extraordinary items;
TSr: Total shareholder returns;
Source: aCE Equity

IndIa’s Best CeOs: C. Vijayakumar, CEO, HCL TECH
motivation to see him build a company

and create a mark.” This is perhaps also
Most Indian the reason for his over 25 years of asso-
companies are largely ciation with HCL as part of a journey
focused on services that led him to the top at HCL Technol-
whereas we have a ogies, a company with $10 billion con-
services business solidated annual revenue and 1.4 lakh
and almost a billion employees.
dollar-plus product But the journey has been anything
business but straight. In early career days, his
The Bar fascination for Digital Signal Process-

ing that had started during his college
days made him join C-DoT, (Centre for
Development of Telematics) in Ban-
galore as an R&D engineer. He spent a
few years there as part of the team that
focused on building indigenous satel-
lite communication technology. His
journey in HCL began in 1994 when he
joined HCL Comnet (a subsidiary of
HCL Enterprise which has now merged
into HCL Tech) where his first job was
at the National Stock Exchange (NSE)
in Mumbai. His team helped set up
NSE’s satellite-based trading network,
which became operational in Novem-
the first quarter of Fy19, HCL Tech went past Wipro to ber 1994. “That was one of my proudest
become the third-largest IT services company in India after career moments because, for the first
TCS and Infosys. The architect of this rare change in the time (in India), trading was happen-
industry’s top order was C. Vijayakumar, who took over as ing through the satellite network. So,
CEO of HCL Tech in 2016, and his ‘Mode 1-2-3’ strategy, fo- it was a very proud accomplishment for
cused on three points — bolstering the traditional business, HCL,” he recalls. Five years later, he was
tapping the digital transformation market and creating a leading Comnet in the southern region.
robust product portfolio. The strategy has helped HCL Tech The company, as it increased its as-
add over $800 million incremental revenue each year over pirations and networking capabilities,
the past three years and made it one of the fastest-growing ventured into global IT infrastructure
companies in the IT sector. management where Vijayakumar was
The man at the centre of it all, C. Vijayakumar, 53, takes given the role of building Remote Infra-
great pride in the fact that he graduated from the same col- structure Management practice. “We
lege as HCL Enterprise founder Shiv Nadar — P.S.G. College won a lot of IT services business for the
of Technology, Coimbatore. “He was a huge inspiration,” company,” says Vijayakumar.
says Vijayakumar, popularly known as ‘CVK’ among peers, Much like his predecessor Anant
adding, “I always looked up to him. It was a tremendous Gupta, Vijayakumar — who was till

IndIa’s Best CeOs: C. Vijayakumar, CEO, HCL TECH
then president of infrastructure ser- $400 million in revenues, delivering a

vices, which contributed nearly 40 per higher EBIT margin (of 28.7 per cent)
cent to revenues — took over a newly than others. “It’s delivering better than
created transitional role of Chief Op- the business case, so we remain very
erating Officer in July 2016. HCL Tech excited about opportunities that the
was nearly a $7 billion revenue com- product business will bring for us in
pany in FY17. The same year, the com- the future,” says Vijayakumar. Apart
pany unveiled its three-lane growth from IBM, since 2017, the company has
strategy — ‘Mode 1-2-3 ’ — for the next made several other acquisitions such
leg of growth. At its core was emphasis as C3i Solutions ($60 mn), Actian Cor-
on transforming traditional services poration ($330mn) and, more recently,
to digital; creating a completely new DWS Ltd ($123mn), at a cost of over
line of business, a product business; $700 million.
and strengthening core businesses Mantras For In the past three years, HCL Tech
such as IT infrastructure, engineering
and application outsourcing. “Most
Success has grown its income and profit after
tax at a compounded annual growth
Indian companies are largely focused rate of 17.86 per cent and 9.28 per cent,
Emphasis on transforming
on services whereas we have a services respectively, with several top broker-
traditional services to
business and almost a billion dollar- ages such as CLSA, Motilal Oswal and
digital
plus product business. I think it’s a ICICI Securities maintaining a BUY
different way of diversifying the port- on the stock. In October this year, the
folio,” he says. About the competition company raised its margin guidance
in IT services, he says, “Honestly, we Creating a new line of for FY21 to 20-21 per cent and retained
have never chased any particular ser- business — a product revenue growth guidance of 1.5-2.5
vice provider. We respect all of them business per cent in constant currency terms
and everybody has got good services, for the rest of the year, implying posi-
good products.” tive growth in FY21. This comes on the
In December 2018, HCL announced back of the management’s optimism.
a $1.8 billion acquisition of IBM’s soft- “I see a lot of optimism, a lot of oppor-
ware products such as AppScan, Big- tunities to grow for companies like us
Fix, Unica, among others, to expand its which have offerings in both tradition-
Mode-3 (product) offerings. While the al and transformative services. Com-
announcement failed to move the mar- panies which can execute well on this
ket and several analysts questioned the agenda are going to do very well,” says
longevity of the products, Vijayakumar Vijayakumar.
says it was one way of creating market Based out of New Jersey, where he
access in products. He says these are lives with his wife Vanitha and daugh-
mature products indeed but with im- ter Divya, Vijayakumar says though he
mense scope for innovation. First, a has learnt a number of subjects such
lot of these mature products are mi- as astronomy, vedic astrology, yoga
grating to SaaS (software as a service), Strengthening core and meditation with intense involve-
so the scope to innovate, whether in businesses such as IT ment during different periods, he did
end-point security or application secu- infrastructure, engineering not pursue any of these long enough to
rity or marketing automation, is huge. and application make them a hobby. However, he does
“With our product engineering heri- outsourcing enjoy reading on varied topics. A firm
tage, we thought we could innovate and believer in hard work has no substitute,
bring the much-needed differentiation he says, “If you deliver any task given to
and gain access to a very large set of you with passion, with an emphasis on
customers, which would give us market
Acquisitions such as IBM’s delivering with perfection, that’s what
permission to play the product busi- software products, will drive you to do better; and that
ness,” he says. In the second quarter of C3i Solutions, will get you recognised.” That’s also his
FY21, the product business registered Actian Corporation team mantra.
year-on-year growth of 7.6 per cent in and DWS Ltd
constant currency terms with close to @rukminirao

IndIa’s Best CeOs: Sanjeev Kumar, mD, Gujarat GaS
Full
Throttle
State PSU Gujarat Gas made the
moSt oUt of PiPeline network in itS
home State and riSing demand from
indUStrial conSUmerS
By P.B. Jayakumar
PhotograPh By NaNdaN dev
Best CeO
Oil & Gas
` 10,384.03 cr/ 26.59%

PBIT/ 3-yr CAGR
`1,412.73 cr/39.42%
PAT/ 3-yr CAGR
`1,193.32cr/75.84%
3-yr Average TSR
19.19%
Average Market Cap
Y-o-Y Growth *
an someone buying latest floor tiles for his home in a 74.34%
remote village influence profits and revenues of a city gas
distribution (CGD) company which he has not even heard ROE/ ROCE
of? It can, in case of Gujarat Gas, India’s largest GGD com- 43.59%/29.17%
pany and one of the most profitable public sector under-
takings. Actually, that is one of the reasons for Gujarat Gas Cash/ Debt
Managing Director Sanjeev Kumar winning the BT’s Best `691.88 cr/ `1,998.3 cr
CEO award in the oil and gas category, overtaking other
Net Profit Margin
two finalists in the sector, Reliance Industries’ Mukesh
Ambani and E.S. Ranganathan of Indraprastha Gas. 11.34%
Ranked overall second after HDFC in Best CEO rank-
*For Oct 2019-Sept 2020; Standalone
ings, Gujarat Gas reported `10,384 crore income in FY20 data; total income, PBIt & Pat net of ex-
with three-year compound annual growth rate (CAGR) of traordinary items; tSr: total shareholder
returns; Source: aCe equity
26.59 per cent. Its profit after tax was `1,193.32 crore with

We have long-
term contracts
and spot pur-
chasing mecha-
nisms, most of
our licences are
valid for 25 years
and we have huge
infrastructure
IndIa’s Best CeOs: Sanjeev Kumar, mD, Gujarat GaS
three-year CAGR of 75.84 per cent. backbone network and that is our advantage,” he says.
The company has managed to grow in recent quarters, If the flagship Gujarat State Petroleum Corporation
despite the industrial slowdown and Covid-19 disruptions, (GSPC) is into LNG sourcing production and distribution,
mainly due to robust demand from industrial customers, Gujarat State Petronet Ltd (GSPL) is the second-largest
especially in Gujarat’s Morbi and its surrounding indus- natural gas infrastructure and transmission company
trial belt. Further, LNG prices crashed from $6 per Metric with over 2,700 kilometres of trunk pipelines transporting
Million British Thermal Unit (mmBtu) in 2019 to below $3 over 40 mmscmd of gas. Further, GSPL India Gasnet Ltd, a
per mmBtu this year due to global surplus, increasing mar- Special Purpose Vehicle promoted by GSPL along with oil
gins of gas companies. marketing companies, is building an over 1,600 km cross-
Bur the real game changer has been Morbi. On March country pipeline from Mehsana to Bathinda.
10, 2019, the National Green Tribunal ordered all ceramic Gujarat Gas has over 25,000 km of pipeline network,
units in Morbi using coal gasifiers to either shut down or operates 450 CNG stations and distributes over 10 mmsc-
shift to natural gas. Though coal is 30 per cent cheaper, gas md natural gas to over 1.5 million households (the largest
solves ash disposal issues and improves product quality in the country) and powers over two lakh CNG vehicles
due to consistent heat in contrast to coal, which has vari- every day, apart from 4,000 industrial units and over
able calorific value. Further, in September, the Gujarat 12,000 commercial establishments. It has 24 per cent, 41
government announced a 16 per cent discount on gas bills per cent and 36 per cent market share of domestic, com-
for ceramic units using gas. GGL laid a pipeline and de- mercial and industrial gas connections, respectively, says
bottlenecked capacities to enable ceramic units in the area a recent HDFC Securities analysis. As on FY20, the indus-
The com-
Sustained
Mantras and futuristic
pany stepped in
promptly to meet
For investment and
business expansion
robust demand from
Success strategies
industrial custom-
ers in Morbi
to switch to piped natural gas immediately. Demand from trial segment accounted for 77 per cent sales, followed by
Morbi has risen since then and volumes more than doubled CNG (16 per cent), PNG domestic (6 per cent) and com-
from 2.5 mmscmd (million standard cubic feet per day, the mercial (1 per cent).
unit of measurement for gas) earlier to 6.3 mmscmd in the It has aggressively gone beyond Gujarat and Maha-
last quarter of FY20. The 900-plus tile manufacturers of rashtra in the last two years though strategic bidding to
Morbi are now part of the 4,000-plus industrial custom- secure geographical areas close to Gujarat State Petro-
ers of Gujarat Gas, the only gas authorised supplier in the leum Ltd’s trunk pipelines. It was awarded 11 geographical
area. Now, Morbi tile manufacturers account for 75 per areas (GAs) between FY15 and FY17, one GA in the ninth
cent industrial volume for the company. More units from city gas distribution round and six GAs comprising 17 cit-
the nearby Aniyari cluster are also becoming customers of ies in Punjab, Haryana, Madhya Pradesh and Rajasthan in
Gujarat Gas. the 10th distribution round in FY19. All the GAs awarded
between FY15 and FY17 are fully operational; the new ar-
Banking on Backbone eas could add over 2-2.5 mmscmd to demand over the next
But if you ask Sanjeev Kumar, he will say Morbi is just one three-five years.
of the many factors that have been contributing to the “Now we have 47 cities and towns across six states and
growth of Gujarat Gas. The others are sustained and futur- union territory of Dadra Nagar Haveli,” says 51-year-old
istic investment and business expansion strategies and the Sanjeev Kumar, a Gujarat cadre IAS officer, who is also
vision of Narendra Modi, who wanted to make Gujarat the the joint managing director of GSPL. “It is not fair to call
gas hub of the country when he was Gujarat chief minister. us only a city gas distributor because we also cater to more
“Over the years, Gujarat has created big gas distribution than 1,000 small and tribal villages as part of our social
infrastructure – 32 per cent of gas is consumed here, 28 commitments,” says Kumar, a B. Tech (Hons.) from IIT
per cent of national gas pipelines are here and 65 per cent Kharagpur and a Masters in Public Affairs from Hum-
gas regasification facilities are here. We are leveraging this phrey School of Public Affairs, University of Minnesota,

USA. “Gujarat Gas can see a major volume boost of 10 per the share of gas in the ‘energy mix from 7 per cent in 2018
cent CAGR over the medium term on highest volume base to 15 per cent by 2030. New big corporate players like Adani
among peers. At the same time, lower input cost can act as Gas and Torrent Gas, also based out of Ahmedabad, are ag-
a cushion against lower volumes and profitability,” says gressively foraying into the sector to tap the opportunity.
Abdul Karim, a research analyst with HDFC. But officials of Gujarat Gas don’t see that as a big threat.
“CGD business is regulated by the Petroleum and Natural
British Gas Legacy Gas Regulatory Board (PNGRB). We have long-term con-
The professional approach of Gujarat Gas across the value tracts and spot LNG purchasing mechanisms, most of our
chain is rooted in its multinational legacy, says Santosh licences are valid for 25 years and we have huge infrastruc-
Zope, Head of Corporate Communication & Investor Rela- ture,” says Sanjeev Kumar. The PNGRB will soon bid out
tions, who has been with the company since its British Gas 44 new geographical areas in the upcoming 11th round of
days. In the mid-1980s, Gujarat Industrial Investment Cor- auctions. Further, Gujarat Gas is looking to acquire more
poration Ltd (GIIC) had secured natural gas supplies from licenced areas and planning to invest `5,000-6,000 crore
Oil & Natural Gas Corporation and Gujarat Gas Company in the next five years. “Our net debt is less than `1,000
Ltd (GGCL) was formed for distribution as a joint venture crore. We have adequate cash flows with enough room to
with the Mafatlal Group. The first CGD project in India fund expansion plans,” says Nitesh Bhandari, Chief Finan-
was implemented in 1990 with domestic piped gas connec- cial Officer.
tion in Ankleshwar, followed by Bharuch, Surat, and then The Vasai-Virar region is the next big focus after Thane,
some other towns. In 1991, the company got listed and in where it is expanding network. “Potential volume triggers
Moved be-
yond Gujarat Low net debt
Sharp focus
and Maharash- of only about
on the industrial
tra to secure areas `1,000 crore and
segment, which
close to Gujarat adequate cash flows
accounts for 77
State Petroleum to fund expan-
per cent sales
Ltd's trunk sion plans
pipelines
1997, global energy major British Gas (BG) Group picked include a potential ban on use of furnace oil, petcoke and/
up 65 per cent of GGCL’s shares from the Mafatlal Group. or any steps to address high pollution levels in select indus-
The government of Gujarat, through GSPC, bought trial clusters. The post-lockdown volume recovery for the
65 per cent equity in GGCL from the BG group in October company has also been well ahead of its other CGD peers,”
2012 for `2,463.8 crore as part of plans to create gas infra- says a Citi Research analysis.
structure. The completion of the merger between GGCL The company plans to set up 400 CNG stations
and GSPC Gas Company Ltd led to formation of Gujarat across India in the next two years even as the govern-
Gas (GGL) – with over one million customers. Peeush ment pushes electric vehicles. “We are also setting up
Upadhyay, EVP - HR and Administration, says despite electric charging infrastructure along with our CNG
the Covid-19 disruptions, the company was able to ensure stations,” says Sanjeev Kumar. It is also planning to tap
seamless supply of gas and uninterrupted operations due the opportunity of converting trucksto LNG and is do-
to its well-oiled work flow plans and infrastructure. Guja- ing a pilot project on retrofitting milk vans with LNG/
rat Gas is currently producing total gas volumes of 10.50 CNG kits. “Most of the new stations are coming on out-
mmscmd as against the FY20 average sales of 9.44 mmsc- skirts and highways, some along with LNG dispensing
md. In the first half of the year ended on September 30, it facilities. This may not only accelerate the roll-out of
commercialised 51 new CNG stations and added 30,000 new CGD networks nationwide, but in the near future,
residential customers, despite the pandemic. Investors also drive network utilisation and profitability,” says a
also have faith in Gujarat Gas with 182 foreign funds hold- recent Edelweiss report.
ing 9.25 per cent, constituting 37 per cent ‘free float, rare Gujarat Gas's success story is sure to flow across In-
among listed state PSUs. dia from its current stronghold of Western India, say of-
ficials.
Competition vs Opportunities
India is opening up its gas market and looking to increase @pb_pbjayan

IndIa’s Best CeOs: Premchand Godha, cmd, IPca LaboratorIes
The Pain
Controller
Premchand Godha’s strategy for IPCa has
not Changed, It’s about beIng Integrated and
foCussIng on ProfItabIlIty
By Joe C. Mathew
PhotograPh By Milind shelte
remchand Godha, Chairman and MD of Mumbai-based

IPCA Laboratories was amused to hear US President Donald
Trump term Hydroxychloroquine (HCQ) — a drug Trump
claimed was helping him ward off Covid-19 — as an anti-
malarial medicine. The observation was outdated. HCQ, the
drug Trump referred to, has not been sold anywhere in the
world as an anti-malarial medicine for decades. It was intro-
duced as a medicine for malaria 70 years ago, but is now used
to treat rheumatoid arthritis.
Trump’s endorsement of HCQ gave a shot in the arm to
IPCA, one of the leading global manufacturers of the time-
tested, patent-expired drug. IPCA saw demand soar globally
for a month or two. As Covid-19 was pulling down earnings
of businesses in the first quarter of FY21, IPCA’s business
and margin growth was rising, driven by the opportunities
on account of chloroquine and hydroxychloroquine API (ac-
tive pharmaceutical ingredient or bulk drug) and formula-
tions. IPCA increased its HCQ production from 17-18 million
tonnes pre-Covid-19 to 25 million tonnes. In an earnings call
in August, A.K. Jain, Joint MD, IPCA said overall sales of hy-
droxychloroquine and chloroquine in relation to Covid-19 in
the April-June quarter was around `259 crore and that con-
tributed significantly to the margins of the company.
At the helm since 1975, Godha has built IPCA as a generic
pharmaceutical company that focusses on established prod-
ucts such as HCQ. It has no risky patent litigation, no expen-
sive new drug discovery. IPCA follows a business model with
minimum risks, with predictable sales volumes and profits. As

I don’t consider
China as a com-
petitor. Either we
are dependent on
them or not... We
have products
where we don't
have to depend
on China at all
Best ceo
Pharma & healthcare
` 4,421.98 cr/ 11.87%

PBIT/ 3-yr CAGR
`803.81 cr/41.42%
PAT/ 3-yr CAGR
`652.46 cr/51.32%
3-yr Average TSR
45.85%
Average Market Cap
Y-o-Y Growth *
71.16%
ROE/ ROCE
19.18%/20.84%
Cash/ Debt
`152.4 cr/ `455.56 cr

Net Profit Margin
14.94%
*For oct 2019-sept 2020; standalone
data; total income, PbIt & Pat net of ex-
traordinary items; tsr: total shareholder
returns; source: ace equity
119
IndIa’s Best CeOs: Premchand Godha, cmd, IPca LaboratorIes
a result, the company has been growing tic branded formulations, the other is
steadily, year after year, with “margins global sales. Here, there are two sides
that continue to surprise positively”, as — one targeting emerging markets
Emkay Research observes in its Febru- like CIS countries, Russia, West Asia,
ary 2020 IPCA financial results update. Africa, South America and Asia, and
When the current management the other developed countries such as
took over IPCA, turnover was `54 the US, Australia and South Africa. In
lakh. Today, as a fully integrated emerging markets, the company sells
pharma company that manufactures branded formulations like they do in
350 formulations and 80 APIs, annual India. In developed markets, they sell
turnover has risen to `4,422 crore,
with three-year compounded annual
Mantras For pure generics, both formulations and
APIs. The fourth is a separate business
growth rate (CAGR) of 11.87 per cent.
Success unit for global tenders, mainly generics.
During the three-year period, profit Revenues from the domestic business is
Business model with
after tax (PAT) grew 51.32 per cent. normally more than the earnings from
minimum risks, with
The company's market cap grew 71.16 the international business, though that
predictable sales volumes
per cent during October 2019-Sep- will not be the case this year.
and profit
tember 2020. It was its time-tested With over 50 per cent of the domes-
business model, which delivered this tic business revenues coming from pain
performance. management, the company’s thera-
“Litigation is not part of our com- No risky patent litigation, peutic focus is also clear. “Nobody can
pany policy. We are doing old, gold stan- no expensive new drug say I can live without pain,” Godha ex-
dard products. We don’t do any new discovery plains. Over 90 per cent of pharmaceu-
product research. We have a completely tical companies will have a pain man-
different R&D set up meant to develop agement product. It is a high volume,
new generic products — intermediates, Focus on established low-value segment. However, despite
API s and formulations. Five years ago, products such as competition Godha says the segment
we started research on biosimilars, too, Hydroxychloroquine remains promising. “You can even man-
and expect some products to be ready age with one product. I can keep con-
in the next five years,” says Godha. tinuing this company if it is left to me
IPCA’s focus area is pain manage- for 100 years with one product. I have a
ment. “In India we are leaders in anti-malarial and rheu- brand called Zerodol. There are several combinations under
matoid arthritis drugs. In the anti-malarial segment, we this brand, which has already achieved the `500-crore sales
are world leaders in one product called chroloquine phos- landmark. We have given a target to make it `1,000 crore.
phate,” adds Godha. “Anti-malarial has been our focus Even if I sell all other products and retain only Zerodol, it can
right from the beginning, while pain management became become a `2,000-crore brand in India alone,” he explains.
key over the last 20 years.” Godha’s management mantra is complete delegation of
The company’s strategy has been the same for at least a power. No presidents report to him. “Everyone reports to
decade now. “Our results are good because we are very well the three directors, two of whom are my sons. One is a dep-
integrated. We are clear where we want to have the lead- uty MD. They coordinate with me for guidance,” he says.
ership and where we want to move, so by design we have In fact, Godha claims that in the last 45 years, he has
done backward integration and intermediate production never met a single doctor to write his company’s product.
for such products. So when we produce API, we produce “My policy is that if you are hired for that work, you do it. I
intermediates and hence better profitability in the generic believe in you,” he says. As testimony of the success of this
market. We have been following that strategy for the last 10 strategy he points out is the number of people who have
years. It helped in the past, it is helping now, and it will help continued with IPCA for 30, 40 years. “Our joint MD joined
in the future also,” says Godha. us as accountant 40 years ago. My company secretary, as
He doesn’t consider China as a competitor. “Either we well as several presidents are associated with me for 20, 30,
are dependent on them or not. Where we make our API, we 40 years. I have faith in people,” he says.
know we will have to compete with China short term, me- Godha hardly thinks of divesting his business. “I tell
dium term and long term. Our strategy is that unless we the next generation that it is a beautiful business to enjoy.
are technologically good, it is better not to make. We have One product goes for 30 to 40 years. You cannot sell one
several products where we don’t have to depend on China model car for five years.”
at all,” says Godha.
IPCA has four broad business segments. One is domes- @joecmathew

IndIa’s Best CeOs: guRdEEP SIngh, CMd, nTPC.
Eye On
The Future
Gurdeep sinGh has proved his mettle as
Cmd of NtpC by steeriNg the CompaNy from
Coal-based geNeratioN to greeN eNergy
By dipak mondal
photograph By kriShnEndU haldEr
inside out, having worked in different areas — business

development, project execution and operations — over
his 33-year career,” an NTPC official says on condition of
anonymity.
Singh, an alumnus of NIT Kurukshetra and IIM Ahmed-
abad, has held leadership positions in several national and
multinational companies. He has also undergone manage-
ment and leadership training at global institutions such
as Saïd Business School-Oxford (UK), Harvard-Kennedy
School (USA), Darden School of Management - Virginia
(USA), Singapore Civil Services College (Singapore) and
urdeep singh, Chairman and Managing Director (CMD) ISB Hyderabad (India). He also holds additional charge of
of NTPC Ltd, recently got a five-year extension till July Chairman, Damodar Valley Corporation.
2025, making him one of the longest serving CMDs of the While Singh is credited with leading NTPC’s trans-
country’s largest power generator. This is an acknowledg- formational journey towards green energy, this has not
ment of his role in maintaining NTPC’s leadership in the affected efforts to maintain leadership in thermal power
power sector at a time when most other players (especially generation. Under him, NTPC has crossed the `1 lakh crore
in non-renewable power) are struggling with mounting income mark (on a standalone basis), growing at an annu-
debt, falling tariffs and competition from new renewable alised rate of 7.2 per cent and posting double-digit EBITDA
energy players. It is also a result of his successful efforts to growth of 11 per cent during the past three years. It added
pivot NTPC from coal to green energy. 11,500 MW capacity through organic and inorganic routes
Singh was appointed CMD of NTPC in February 2016. during the period. This makes it the country’s largest
Before that, he was Managing Director of Gujarat State power generation company with capacity of 62,910 MW.
Electricity Corporation Ltd. “He knows the power sector Adani Power is distant second with 15,000 Mw (including

Best CeO
pOwer seCtOr
` 1,04,421.37 cr/9.66%
PBIT/ 3-yr CAGR
`26,093.8 cr/15.18%
PAT/ 3-yr CAGR
`10,112.81 cr/2.52%
3-yr Average TSR
-19.94%
-19.37%
ROE/ ROCE
9.32%/9.91%
CASH/ DEBT
`2,209.11 cr/
`1,66,742.98 cr
Net Profit Margin
10.35%
*For Oct 2019-Sep 2020; Standalone
data; Total Income, PBIT & PAT net of
extraordinary items; TSR: Total share-
holder returns; Source: ACE Equity
The company
has changed
its focus and
is pursuing
renewable
capacity
addition
aggressively.
The focus will be
on reducing the
carbon footprint

IndIa’s Best CeOs: gurdeep singh, CMd, ntpC.
Adani Green Energy Ltd), followed by tion. Furthermore, 2,088 MW capaci-

Tata Power at 12,742 Mw. In last finan- ties are in the tendering stage. ,” says a
cial year, the company acquired the recent research report by ICICI Direct.
government’s stake in NEEPCO and
THDC in a `11,500-crore deal, add- Dealing with Covid Crisis
ing 3,294 MW capacity. Of this, 2,625 Covid came as one of the biggest chal-
MW is hydro and 142 MW renewable. lenges for all corporate leaders. For
“These acquisitions helped the com- NTPC, a public sector firm operating
pany balance its portfolio,” Singh said in the utility sector, the challenge was
in his statement at the company’s 44th even bigger. The CMD informed the
annual general meeting. 44th AGM that despite decrease in
While the public sector Maharatna demand due to Covid, the company’s
company continues to strengthen its Mantras For generation rose. Even during the Co-
thermal and hydro power capacity, its Success vid-19 period, the company added 1,784
big ambitions lie somewhere else — re- MW of commercial capacity. It also re-
newable energy. Successfully led the company corded the highest ever single day gen-
in pursuit of green eration of 977.07 MU on July 28.
Brush with Renewables energy; the company Even as the country went into the
NTPC plans to establish itself as a is on track to add lockdown, the second unit of NTPC’s
sustainable and integrated energy around 5 GW renewable 660 MW supercritical power station
conglomerate through initiatives in capacity in next two years in Khargone became commercial dur-
areas such as renewable energy, elec- ing this period. In recent months, four
tric mobility and waste to energy. It of its thermal power stations — NTPC
wants to become India’s largest re- Major diversification by Vindhyachal (4,760 MW capacity),
newable energy company by adding 30 pursuing green hydrogen NTPC Talcher Kaniha (3,000 MW),
GW renewable capacity by 2032 both portfolio, EV charging, EV NTPC Sipat (2,980 MW) and NTPC
through organic and inorganic routes. transportation, hydrogen Korba (2,600 MW) achieved 100 per
The target is to have 30 per cent non- FCEV (fuel cell electric cent plant load factor.
fossil-fuel-based capacity. “He (Singh) vehicle) transportation, Singh ensured that safety and se-
has gripped the situation well and waste-to-energy curity of employees are not compro-
made sure that the company aspires to mised even as the company continued
be number one in renewables as well,” to operate at full capacity, say officials.
says the NTPC spokesperson. Meetings were held to ensure faster
The company is on track to add Kept debt under control. decision making in the face of the pan-
around 5 GW renewable capacity in Used refinancing to demic so that supply of electricity is
the next two years. “We have also in- bring down maintained. The meetings continued
corporated a subsidiary for the renew- cost of borrowings for three-four hours to ensure issues
able energy business. This will allow pertaining to various stakeholders are
us to add renewables with a more fo- addressed with clear direction.
cused approach,” says the spokesperson.
In his statement at the company’s 44th AGM, the CMD Challenges Ahead
laid out NTPC’s green energy path. “The company has The years ahead would be challenging, not just for NTPC,
changed its focus and is pursuing renewable capacity addi- but the entire power sector. In May 2020, ratings agency
tion aggressively. We have taken a decision not to acquire any Moody’s changed its outlook for India’s power sector
further land for greenfield thermal projects in near future. to negative from stable saying coronavirus disruptions
The focus will be on reducing the carbon footprint,” he said. will lead to a significant slowdown in economic growth
He also informed investors that 2.5 GW of renewable proj- over the next 12 months, driven mainly by weak power
ects are under construction as part of NTPC’s own capacity. demand, further payment delays by state-owned distri-
It is building another 1.6 GW as a developer. The company is bution companies and policy actions aimed at reducing
also implementing 237 MW of floating solar projects. stress for end users.
The diversification efforts have been noticed by eq- Given these challenges, it is to be seen if Gurdeep
uity analysts who, despite the challenges being faced by the Singh’s diversification bets and capacity addition efforts
power sector, remain positive on the company.“NTPC has, hold him and his company in good stead.
till date, commissioned 1,070 MW of renewable capacity
while another 2,404 MW capacity is under implementa- @dipak_journo

IndIa’s Best CeOs: Column
Reinventing Businesses
How tHe pandemic Has cHanged ceo’s
agenda for tHe future
By Deepak Malkani
few weeks ago, the market its renewables portfolio 30 times by 2032.
capitalisation of listed global • Healthcare, education, hospitality, finance and IT servic-
companies crossed $100 tril- es have traditionally relied on human interactions. There is
lion for the first time. This potential to reinvent business and operating models:
comes in a year overshadowed Contactless consumer interaction: Multiplexes are rein-
by the worst global crisis in venting viewer experience by contactless digital ticket-
memory. All major economies, ing, payments and pre-ordering of refreshments using
barring China, are projected to be in recession this fiscal. SMS/apps.
Yet, stock markets grew 15 per cent over the year. The mar- Virtualising delivery of services: Schools, colleges and
kets reflect our faith in future potential for growth and are universities are adopting virtual learning for short
on track for a recovery in 2021. However, aggregate num- term and need to prepare for a future where virtual
bers show that big digital technology stocks in the US and classrooms are a significant part of a hybrid learning
China are driving the market. The world’s wealth is distrib- experience.
uted more asymmetrically now than ever before. Reinventing work for the new workplace: Organisations
Digital technology has become an instrument of wealth have adopted remote/virtual working models and look
creation as we spend more time online, be it in transactions, to a future where WFH and work from office coexist.
entertainment, education or healthcare services. The pan- India’s largest IT Services company announced plans
demic has only accelerated this behaviour. to make 75 per cent of its workforce work from home.
This crisis helped us realise the importance of envi- Another organisation announced plans for a hybrid
ronmental protection. A September 2020 report from model allowing employees to work from both home
Data-Driven EnviroLab and NewClimate Institute noted and office. Leaders need to choose business operating
significant increase in Net-Zero commitments by corpo- models and redefine technology, human resources and
rations and local governments. Commitments by compa- cybersecurity strategies accordingly.
nies have risen three-fold, with 1,541 organisations com-
mitting to net-zero emissions this year as against 500 last • The pandemic has given a huge opportunity to the digi-
year. In 2020, 823 cities agreed on net-zero commitments tal economy and has been beneficial for platforms like on-
in 2019. line retailers, social media agencies, over-the-top content
Digital disruption and climate change are the two pow- streaming platforms and cloud infrastructure companies.
erful forces that compel business leaders across industries This sector has been the fountainhead of innovation over
to rethink strategies and reinvent businesses. Let’s look at the last few years. In 2020, fintech, edutech and e-com-
three different business segments and how the pandemic merce were positively impacted despite the pandemic.
has transformed the CEO agenda. Many of the nine new Indian unicorns in 2020 are from
these sectors. Platform leaders have the opportunity and
• In sectors dependent on physical supply chains, there has the onus to reimagine future business models for sustain-
been a significant disruption in supply and demand. Busi- able growth and responsible use of emerging technologies.
ness leaders in these sectors are prioritising From repairing and reconfiguring to re-
“repairing” their businesses – managing inventing and reimagining business models,
short term-liquidity, transforming the cost Digital disruption leaders are exercising multiple strategies in
structure to variabilise fixed costs and al- and climate change the post-pandemic world. It provides CEOs
locating capital to positive segments. The are compelling a unique opportunity and responsibility to
longer-term imperative is to reconfigure business leaders to navigate businesses and the economy to-
businesses and operating models for a low- rethink strategies wards future growth.
carbon economy. India’s largest coal-based and reinvent (The writer is Partner and Leader Manage-
thermal power company is looking to grow businesses ment Consulting, PwC India)

IndIa’s Best CeOs: methodology
How We
Did It
providing direction in uncertain times
interest and tax (PBIT) and total sharehold-

er returns (TSR) were considered. These
parameters were taken net of extraordinary
income and expenses. Only standalone
numbers were used. Companies were as-
signed a score on the average of year-on-year
absolute change and three-year compound-
ed annual growth rate (CAGR) in total in-
come and PBIT. For banking, financial ser-
vices and insurance (BFSI) companies,
profit before tax was considered in place
of PBIT. We also included this year a new
metric on NPAs for BFSI companies. Only
geometric CAGR was calculated and given a
weightage of 25 per cent. TSR was calculated
taking into account the net price change
plus dividends. Companies were scored on
three-year TSR geometric CAGR and were
his is the ninth edition of BT’s ranking of India’s Best CEOs. given a weightage of 33.3 per cent. All three
This year also, we teamed up with PwC to work out a methodology scores were added to arrive at the final score.
for the survey. This takes into account both quantitative perfor- In BFSI companies the four categories were
mances as well as qualitative aspects. each given a weightage of 25 per cent.
For this year, we started with the quantitative exercise to short- For better comparability, companies
list the top three performers in each segment. Before calculating were split into four categories — Super
the quantitative performance, we used a series of checks and filters. large (total income `1 lakh crore plus);
Our study universe was the BT500 ranking of India’s most valuable Large (between `50,000 crore and `1
companies. Only companies with revenues of more than `1,000 lakh crore); Mid-sized (between `10,000
crore were considered. Data was sourced from Ace Equity. The crore and `50,000 crore); and Emerging
study period was three years: 2019/20, 2018/19 and 2017/18. Then, (between `1,000 and `10,000 crore). Our
companies whose accounting period was between nine and 15 knowledge support partner, PwC India,
months in these periods were considered. Companies, whose latest reviewed and validated the process. Names
audited financial year results were not available, were eliminated of three top CEOs in each group —overall,
from the list. We also removed companies that reported a net loss and sector-wise — were placed before the
in any of these three financial years. Companies that listed during jury, comprising Ashu Suyash, MD & CEO,
the study period were also not considered. Three companies were Crisil; Cyril Shroff, Managing Partner,
eliminated due to ethical/other reasons. To qualify for the rank- Cyril Amarchand Mangaldas; Harsh Goen-
ings, CEOs (or executive heads) must have been in the job for the ka, Chairman, RPG Enterprises; Raamdeo
full study period. In case of PSUs, the period was a minimum of one Agrawal, Chairman, Motilal Oswal Finan-
fiscal. A total of 242 companies qualified for the study. cial Services and Zarin Daruwala, CEO,
To arrive at the rankings, growth in total income, profit before Standard Chartered India.

Quality Stocks Hold Key
expect a ‘rally in stocks’, not a ‘rally in the
markets’; it, pharma could be the best bet
By NaveeN Kumar
illustratioN By raj verma

W
ith 2021 just around the cor- “Market breadth that was very narrow two-three quarters
ner, here’s a glimpse of what ago has now improved to 95 per cent. Even retail participa-
to expect in the new year — in tion, which had reached 70 per cent during the lockdown,
stocks, insurance or gold. Read has now moved down to 60 per cent closer to long-term av-
on what lies ahead also in mutu- erage of 55 per cent. Rising institutional participation would
al funds, debt instruments, real control speculative behavior, thereby lending long-term
estate and borrowing in the following pages. confidence to market participants,” adds Cheruvu.
In a nutshell, the market appears set for an average year
Taking Stock: The Year That Was in 2021. “Despite the fact that stocks are trading at all-time
The year 2020 could well go down in history as one of the highs, we believe the Nifty can generate returns of 10-12 per
most testing years for the market. Indices were on a roller- cent from the current levels by the end of 2021. We also be-
coaster ride The Sensex fell 38 per cent from its peak of lieve that the broader market will outperform the Nifty in
41,952.63 on January 14 to a low of 25,981.24 on March 23. 2021,” says Jyoti Roy, DVP, Equity Strategist, Angel Broking.
“The market has seen astonishing recovery since the However, the possibility of a downside does exist. “We
lows hit in March 2020. Unlike previous crashes, which were expect some sort of consolidation or correction in the medi-
caused by structural failures, this one was due to something um term. On the upside, markets can rally to 14,000-14,200
that was unforeseen. Once we as an economy normalised only if supported by economic data over the next few quar-
the effects of the pandemic, businesses started function- ters. On the downside, 10,800-11,000 is possible given that
ing at levels observed in the initial days of 2020,” says Nikhil markets are trading at a record P/E of 36, which is not sus-
tainable. Even the average P/E of the markets is currently 21-
22, so it is better to hedge your position or book profits right
now,” says Hemant Sood, MD, Findoc Group.
Quality stocks hold the key in 2021. “We expect 2021 to
be a year of ‘rally in stocks’ and not ‘rally in the markets’... it
would be more of a ‘stock-picker’s’ market,” says Rupen Ra-
jguru, Head, Equity Investment & Strategy, Julius Baer India.
Sectors To Look Out For

“While we expect sectors with strong revenue visibility such
as IT and pharma to do well in 2021, cyclical sectors like auto,
cement and consumer durables, will also fare well, given the
strong economic rebound,” says Roy of An-
Kamath, Co-Founder and Chief Investment gel Broking. “Rural-focussed sectors such as
Officer (CIO), True Beacon and Zerodha. agrochemicals, two-wheelers and tractors
“Though technically the economy is in a What to should also continue to do well on the back
recession, high-frequency macro indicators of a buoyant farm sector,” he adds.
have signalled a faster-than-expected re- expect in 2021 The BFSI sector, hit hard by the post-
covery. Corporate earnings have surprised Covid plunge, is expected to recover. “In-
markets likely to offer
for two consecutive quarters supported by 10-12% returns dian private banks now have the best-ever
management commentary, leading to ro- capital and liquidity position in history…
bust earnings outlook for next two years,” current high valuations may
we also like insurance as a good structural
says Rajesh Cheruvu, CIO, Validus Wealth. lead to some corrections theme,” says Rajguru of Julius Baer India.
Private banks with high-quality assets
The Road Ahead will be good bets. “They will perform well
Besides domestic factors, global liquidity as credit growth comes back with economic
is also chasing stocks in emerging markets
such as India. The country's weightage has
What you recovery,” says Cheruvu of Validus Wealth.
PSUs are likely to improve their returns
increased in the MSCI index, a benchmark should do as well. “A lot of PSUs are trading closer to
for major international fund houses. This their book value and have decent returns
if you have a higher number
is likely to keep liquidity high going ahead. of high-valuation stocks, it is
on equity (ROEs) and dividend yields, and
“Excess liquidity driven by ultra-easy mon- better to hedge hence make for a good investment case,”
etary and fiscal policy, as a response to says Rajguru of Julius Baer India.
the pandemic mayhem, is likely to persist in case you are closer to your There will also be scope for select good
at least for a couple of more years,” says life goals, move funds to safer picks in infrastructure “We are positive on
Cheruvu of Validus Wealth. assets like debt the cement,” says Roy of Angel Broking.
While the initial rally was driven by
select stocks, it is now more broadbased. @naveenkumar80

Money Today – mutual funds
Stay Invested,
Rebalance Your Portfolio
InnovatIons In debt funds and rIse of InternatIonal
Investments wIll contInue to attract Investors
By AprAjitA ShArmA
illuStrAtion By rAj vermA
2
020 was a mixed bag for Bond ETFs that invested in AAA-rated PSU
mutual fund investors. The year bonds. Nippon India MF launched a debt ETF
started out with all-time high in- What to that invests in AAA-rated bonds issued by gov-
dex levels, but Covid-19 brought ernment-owned entities and state develop-
the markets down. There were
expect in 2021 ment loans. Motilal Oswal 5 Year G-sec ETF is
plenty of exits, but those who stayed invest- Growth in investments a passive offering in the fixed-income category.
ed made stupendous gains. Resilience was via wealth-tech firms
the buzzword. While equity MFs witnessed Regulatory oversight
the highest-ever outflow of `12,917 crore in Innovations in The Securities and Exchange Board of India
November, total assets under management debt funds (Sebi) issued multiple circulars on risk and
(AUM) surged above record `30 lakh crore. liquidity management in 2020, but the most
“2020 was a lesson in investor behaviour. rise of international noteworthy among them was the one on mul-
The year started out at fresh highs, followed funds/etfs ticaps and the formation of a new category,
by a violent stock market crash. But, markets flexicap. All multicap funds have to allocate at
swiftly bounced back and hit fresh highs again. least 25 per cent of their portfolios in large, mid
Investors who focussed on basics — portfolio What you and small-caps each by February 2021. Flexicap
rebalancing, asset allocation etc survived the should do funds will invest at least 65 per cent of the cor-
market crash with good positions. The ones pus in equity but will have no restrictions on
who tried to time the market burned their fin- stick to basic rules of investing in large, mid or small-caps.
asset allocation and
gers,” says Gaurav Rastogi, Founder, Kuvera.in. portfolio rebalancing
So, will the outflows continue? “With the Digital innovation
recent correction and sharp rebound, people Investments via digital wealth management
stay away from
may have been rebalancing their portfolios. So, momentum and theme- platforms such as Kuvera, Groww and Paytm
redemptions are not bad,” says Radhika Gupta, based plays Money are rising. Even traditional AMCs are
CEO, Edelweiss Asset Management. equally aggressive on digitisation. “Having
witnessed 50k+ transactions in a single digital-
International investments only NFO in April this year, we are looking to
The ETF/index funds gained traction with expand our digital offerings in 2021,” says Pra-
most people taking to low-cost investment op- tik Oswal, Head of Passive Fund, Motilal Oswal
tions. Investors were attracted to international Asset Management Company.
investments. “It has been the asset of the year.
I expect the trend to contin- What should you do in 2021?
ue,” says Gupta. “There is a lot of noise around mar-
kets at all-time highs, and how a cor-
Safer debt instruments rection is imminent. But my advice
Innovations in debt product is to do nothing. This will fetch you
offerings are expected to con- more money,” says Rastogi of Kuve-
tinue in the New Year also. The ra. “Stick to basic principles of asset
MF industry launched products allocation and rebalance your port-
with low or negligible credit risk folio when required,” he adds.
to address investor concerns. The
year saw two new series of Bharat @apri_sharma

Money Today – Gold
Hold
And Buy
The Dips
EvEry dip will bE an opportunity
to add morE of thE yEllow mEtal
to your portfolio
By aprajita sharma
illustration By raj verma
T
he year may have been challenging in 10 grams. Gold ETFs saw an outflow of `141.09 crore in No-
many aspects, but it was a golden year for vember after seven months of inflows since April. There has
those who invested in the yellow metal. Gold been a decline in fund raised via sovereign gold bonds too.
prices touched an all-time high of `56,191 in The recent profit-booking came on the back of development
August as uncertainty around the pandemic around Covid vaccine and Joe Biden winning the US polls.
persisted and stock markets tanked worldover. Gold has re- So, is it time to book profits? “The important upside trig-
turned 28.63 per cent so far this year as of December 18. ger for gold in 2021 will be the stimulus package by the US
“Gold has given double-digit returns of around 24 per economy along with global growth that may attract inves-
cent in the global market and 28.63 per cent in the domestic tors to the yellow metal as a safe-haven asset,” says Gupta.
market. Continuous flush of liquidity by glob- However, a faster-than-expected recovery
al central banks, recession in all major econo- in the global economy and speedier approvals
mies and rising Covid cases fuelled the rise of and distribution of the coronavirus vaccine
gold prices. However, hopes of a vaccine are
bringing in optimism across the global econ-
What to could put pressure on prices in 2021.
So, unless you need funds for a life goal or
omy. This optimism will continue in 2021, expect in 2021 need to rebalance your portfolio across asset
which is what will define the landscape for the Stimulus package for
classes, booking profits in gold may not be the
yellow metal in the months ahead,” says Anuj the uS economy likely to right move. Price outlook does suggest volatil-
Gupta, Deputy Vice President, Commodities push gold prices higher ity, but Sugandha Sachdeva, Vice President,
and Currencies Research, Angel Broking. Metals, Energy & Currency Research, Religare
Gold was hovering around `39,000 as rising central bank Broking, says dips would remain a good buy-
2020 kicked off. It kept hitting fresh highs as its reserves of gold to ing opportunity as long as one can buy the pre-
safe-haven appeal drew panic-stricken inves- support prices as well cious metal in a staggered manner. “Buy gold
tors towards it. The net asset under manage- mini/gold in a staggered manner at first levels
ment (AUM) in gold ETFs stood at `13,239.88 of around `49,200-48700/10 grams and the
crore as on November 30, 2020, while sover- What you second level of `47,700/10 grams for a target
price of `56,100/10 grams initially and the next
eign gold bonds received record investments
of `11,884 crore in eight series launched so far.
should do `60,500/10 grams, while placing the stop-loss
“The weakness in the US dollar is one of at least 10 per cent order at `46,900/10-gram mark, he adds.
the reasons for appreciation in gold prices. portfolio exposure to Experts advise at least 10 per cent port-
gold is advisable
The RBI also purchased gold, which supported folio exposure to the yellow metal. “We are
prices,” adds Angel Broking’s Gupta. advocating investors to hold gold since we
Go for sovereign gold expect it to test `55,000-60,000 levels again in
bonds, Etfs for low-cost
Coming up investment options 2021,” says Gupta.
Gold prices have corrected from record high
levels and are hovering around `50,000 per @apri_sharma

Go
Beyond
Life,
Health
Policies
Product innovation
will gain traction
as the industry gets
set to go on a digital
overdrive
By AprAjitA ShArmA
illuStrAtion By rAj vermA

Money Today – insurance
P
roduct innovations and the urge to pro- move towards product simplification using data science
tect families in case of eventualities arising while drawing on a broader range of insight and data, to
out of Covid-19 drove people to buy insur- provide more bespoke products that meet individual needs.
ance in 2020. Most life and health insur- Offering personalised experiences will emerge as a differ-
ance products saw demand directly com- entiator. Digital enablers will further improve efficiencies,
ing in from customers. productivity and lead to cost control,” says Kamlesh Rao,
But the fact is the insurance industry was already on MD and CEO, Aditya Birla Sun Life Insurance (ABSLI).
the innovation drive pre-Covid. Just in January, the Insur- Product experimentation will continue as well. Accord-
ance Regulatory and Development Authority of India (IR- ing to Naveen Tahilyani, MD and CEO, Tata AIA Life Insur-
DAI) had approved a number of sandbox products targeted ance, life and health covers will be in focus.
at making insurance cost-effective and more relevant for The year 2020 also saw some unique offerings from
customers. “Some of the products that gained significant consumers such as outpatient department cover, home-
traction include Edelweiss General Insurance’s Edelweiss based care, cyber liability and pet insurance. Industry-wide
SWITCH, Bharti AXA General Insurance's Pay-As-You- launches by other insurers are expected in 2021.
Drive, ICICI PruLife Insurance Outpatient Health cover Going forward, says Anand Roy, MD, Star Health and Al-
and Go Digit General Insurance Network-based Accidental lied Insurance, seamless digital-led processes for settlement
Insurance for Rented Motor Vehicle,” says Vaidyanathan of claims and customer services and more focus on customer
Ramani, Head, Product and Innovation, Policybazaar.com. centricity and value-added services such as tele-medicine
Single owner-multiple vehicles product and wellness will see faster adoption.
from ICICI Lombard General Insurance was
another popular one. Amid the lockdown, Options Ahead
as people refrained from driving, sandbox What to There are a number of insurance products
products, including Pay As You Use and Pay available at fairly low cost that a customer
How You Use made a timely entry. Sandbox expect in 2021 should consider. People normally don’t see
products are those with features not permit- Personalised value in products such as fire, home and cy-
ted under the existing regulatory framework. offerings and product ber insurance. In motor insurance, too, peo-
IRDAI had put a limit of 10,000 customers or simplification ple end up buying the mandatory third-party
`50-lakh premium on such products. Now cover and do not take into consideration the
that the limits have been met, insurers are Faster settlement of own damage cover.
awaiting clarity from the regulator on how to claims and customer At a time when most services are going
grievances via digital
take these products forward, says Sanjay Dat- innovation
digital, there is a need for cyber insurance.
ta, Chief of Underwriting, Reinsurance and ICICI Lombard, HDFC Ergo and Bajaj Alli-
Claims, ICICI Lombard General Insurance. anz already offer it. Home insurance includes
value-added services
In March, the regulator directed insur- such as tele-medicine,
structure and contents of your house.
ers to include Covid-19 in all their policies. wellness to see faster Then there are byte-sized insurance
Pandemics were earlier exempt. Further, the adoption products such as backpack, marathon and
launch of standardised Corona Kavach and trip insurance etc that you can buy from com-
Corona Rakshak policies helped lower-in- panies such as Toffee Insurance, Digit Insur-
come families access Covid cover at low cost. ance, Acko Insurance, Symbo Insurance or
Underwriting rules and customer ser- What you Mobikwik. Many companies also provide
vices also underwent a sea change. “There insurance on gadgets or home appliances
are now virtual surveys for claim intimation.
should do during the time of purchase. Besides, you can
The usage of tele-consultation has increased go for insurance also buy credit and mortgage insurance in
multi-fold. WhatsApp, email and chat have products beyond life which the insurance company keeps paying
and health
now become the norm for responding to EMIs on your behalf in case you meet with an
consumer queries. Some organisations are accident or you are no longer around.
leveraging Bots for consumer engagement,” take substantial policy Finally, awareness holds key to buying
coverage; don't go for
says Datta of ICICI Lombard. In some cases, lowest premium option
insurance products. The amount of cover-
e-KYC was used for issuing new policies. age you need, the premium payment option
you choose or what your policy does or does
understand inclusions
Coming Up and exclusions not cover are some important aspects to
This digital engagement will be scaled up thoroughly before consider before filling up the insurance pro-
further through artificial intelligence (AI), buying a policy posal form.
machine learning (ML), blockchain, Big Data
and advanced analytics. “The industry will @apri_sharma

Money Today – real estate
Good Time
to Buy Real
Estate
affordable housing to see
more demand; peripheral
markets to perform better
By NaveeN Kumar
R
eal estate is one of the most
significant investments which
consumes years of savings. The
sector, already struggling in
most parts of the country, was
brought to a grinding halt due to the lock-
down. Things improved from July when the ference between rental yields (3 per cent) and interest rates (7 per
unlock process began. cent) has become very narrow. Even with a marginal appreciation of
However, the question which everyone 3-4 per cent, property appears attractive. Moreover, tax benefit on
wants an answer to is: Is this the right time home loan interest and principal bring down the cost of a loan below
to buy property? “While some of the excite- 5 per cent for people in higher-income tax brackets.
ment may be on account of pent-up demand “While end-users shouldn’t try to time
and discounts, demand for residential real the real estate market, property prices are at
estate is expected to increase steadily in 2021 their lowest best. Buying now equals buying
as well,” says Sharad Mittal, CEO, Motilal Os- at the lowest possible price,” says Prashant
wal Real Estate. What to Thakur, Director & Head, Research, AN-
“Going by the sector’s performance in AROCK Property Consultants.
the last two quarters, recovery will continue,
expect in 2021
and the sector should be at pre-Covid levels low interest rates to The Alternatives
over the next couple of quarters” says Kanika continue, pushing If you have a higher risk appetite and are
residential real estate
Gupta Shori, COO, Square Yards. demand
looking to invest in commercial real estate,
you need to be very selective. “Grade ‘A’ as-
Regional Break-up sets have remained resilient even during the
affordable segment
The recovery has not been even across the expected to see more pandemic with more than 90 per cent rental
country. “The affordable housing segment demand collections. As we head close to a vaccine be-
will top the charts and cities like Hyderabad, ing finalised for production and distribution
Bangalore, Delhi-NCR, Mumbai and Pune in India, we feel that the commercial office
will witness a fall in inventory as stable pric- What you space will see growth in net absorption with
es and low interest rates drive sales. How- rents being stabilised in 2021,” says Mittal of
ever, peripheral markets will perform better should do Motilal Oswal Real Estate.
as they offer units that tally with the budget low interest rates make it REIT has also emerged a good option to
and desired unit size of most buyers,” says best time to buy a house get the benefit of real estate investing with
Gupta of Square Yards. lesser money. “Both the listed REITs in India
invest in reits for have seen strong rental collections of over 97
Best Time To Invest diversification and per cent during the pandemic,” says Mittal of
While rental yields have remained intact, stable returns Motilal Oswal Real Estate.
the fall in interest rate on deposits is making
them more attractive. Mittal says the dif- @naveenkumar80

Money Today – borrowing
Lower Rates, More Tech

Complete digitisation of loan disbursal and
repayment proCesses to beCome reality soon
By NaveeN Kumar
G
ood times are back for
borrowers, especially those
taking new loans and al-
ready servicing floating rate
loans. The reason: the repo
rate is at its lowest level since 2000. Will this
continue in 2021?
Pandemic-led restrictions have hit eco-
nomic growth. That is why RBI is focused on
reviving growth. “If growth were to slump,
we might see a further cut in rates. But
hopefully, it won’t come to that, particu-
larly if RBI can push liquidity transmission
through other initiatives and open market
operations. Unless we see significant prob-
lems in revival of industrial output, we don’t
see a need for interest rates to fluctuate
much in the near term,” says Kunal Varma,
CBO and Co-founder, MoneyTap.
Digital Lending Complete digitisation of loan disbursal

Lockdown restrictions have forced lend- and repayment processes is also going to
ers to innovate and operate digitally. “From What to become a reality as compliances go digital.
opening an account to approving a loan ap- “We hope to see initiatives such as video-
plication in 5-10 minutes, banks will focus
expect in 2021 KYC becoming more mainstream and being
on improving internal processes and proce- interest rate not accepted as a primary option.” says Kunal
dures,” says Rishi Mehra, CEO, Wishfin.com. expected to change Varma, CBO and Co-founder, MoneyTap.
much from current lows
Instant credit check facilitated by credit
bureaus has already revolutionised under- Options Ahead
writing. “CIBIL score and credit information Video KyC and enaCH Low interest rates mean it is a good time to
for emi mandate to
solutions have enabled banks and credit in- become more popular accelerate debt repayment unless you plan to
stitutions to give quick, easy and affordable continue for tax benefits. Check the interest
access to credit for millions of borrowers," rate on the loan, and if it is high, ask your lend-
says Harshala Chandorkar, Chief Operating er to lower it. If it is a floating rate loan, trans-
Officer, TransUnion CIBIL. Even lenders What you fer it to a new lender offering a lower rate.
which have been taking digitisation lightly should do “With home loan interest rates plummeting
will be forced to come up with a consumer- to below 7 per cent, borrowers can switch
friendly digital interface to do business. use the low interest lenders if their existing rate is higher,”says
period to accelerate loan
Digitisation will also help lenders re- repayments Naveen Kukreja, CEO& Co-founder, Paisaba-
ward those with disciplined credit behavior. zaar.com. In case of fixed rate loans like auto
“This momentum of digital lending and use or personal loan, you will have to calculate the
if you are paying a high
of data analytics-based solutions to drive rate on an existing loan, net benefit after considering the prepayment
access to finance will become stronger consider balance transfer penalty and processing fee.
through 2021 and beyond,” says Chandork-
ar of TransUnion CIBIL @naveenkumar80

Network
PhotograPh by raJwant rawat
Kataria’s Sporting Adventures

Getting one’s business to stay afloat away from work for a few hours every Great Barrier Reef. I travel to these
and inspiring team members to be re- day.” An adventure sports enthusiast, places at every opportunity that I
silient during a black swan event such Kataria spends a large part of his sav- get.” Diving, he says, has taught him
as the Covid pandemic can become ings travelling to adventure sports to trust his instincts. When he is on
extremely stressful, especially for the destinations across the globe. the floor of the ocean and he is struck
CEO of the business. As India began While paragliding is his new- by adversities, he has to find his way
to enter the unlock phase in June, found passion, Kataria is an accom- out himself. “My diving experiences
Bata’s newly appointed Global CEO plished deep-sea diver as well. In fact, have taught me to trust my instincts
Sandeep Kataria took to learning there isn’t a single deep-sea diving even at work. It has taught me to take
paragliding. “It gave me the much- destination he hasn’t been to. “My decisions at the spur of the moment.”
needed break. It took me completely favourite is Maldives, followed by the – ajita shashidhar

Panag’s sHooTing
EscaPadEs
Sherbir Panag, Partner high-speed target, but
in law firm Panag and the joy of a hit is unparal-
Babu, took to shooting as leled. For Panag, skeet
a sport at an early age. also carries lessons for
He started skeet shooting crisis lawyers like him.
at the age of 12, and went “A target leaving the
on to compete profes- house is a lot like a case,
sionally, including repre- once it starts it can take
senting the Junior Indian any direction the winds
Team at two world cups take it to, but toler-
in Germany, a World Cup ance for ambiguity and
in Finland and the Com- achieving the result or
monwealth youth games. hit is something one has
“It (skeet shooting) is the to have single-minded
perfect getaway for me, focus on, despite the
as ranges are typically odds,” he says, adding,
outside the hustle and skeet has taught him
bustle of cities,” he says. not to make excuses for
Skeet requires high con- last-minute changes or
centration and speed. for factors outside one's
There’s thrill, concen- control, but focus on
tration and technique delivering.
involved in shooting a – dipak mondal
during the winter holi-

days, he travelled with his
kids and the EIRS team
for the Junior National
Championship, organ-
ised in different parts
of the country. In 2006,
he got the first sport
horses (Warmblood)
from France. In 2008,
he travelled to Germany
The
For Jitu Virwani, Chair- close to the Bangalore and imported nine sport
man and MD, Embassy international airport) for horses for the qualifiers
Group, horses are his his kids to nurture their of the Asian Games 2010
Horse
second passion, the first passion now stands as held in China. In 2015, at
being the real estate the Embassy Internation- the EIRS, he gave the go-
business. Virmani has al Riding School (EIRS). ahead for the first breed-
Rider
been instrumental in Established in 1996, EIRS ing programme in India
nurturing the sport in features among the coun- to produce top-quality
India. What he purchased try's top riding schools. sport horses for young
as a farmland (now For a decade, every year aspirants. –rukmini rao

“the choices you make determine
how far you will go”
AnAnd KripAlu, MD and CEO, Diageo India
Q. What was the problem you were

grappling with?
A. After college, I joined the sales team of
Pond's. I had the opportunity to lead team
members who were far senior to me by age.
After the acquisition of Pond's, I joined
Unilever’s marketing function. Initially, I
struggled to adjust to the organisational
culture — Unilever was totally different in
terms of levels of hierarchy and bureaucracy.
However, I quickly learnt to adapt and pros-
pered too. But after five years, I was pushed
back into sales. I was dejected and felt it was a
signal from the company that I was not good
enough to do the job that I wanted.
Q. Who did you approach for

advice?
A. I approached my then manager for his
advice. He was someone whom I could trust.
Q. What was the best advice you

ever received?
A. He advised me that this job would help
build a critical skill — my leadership. And it
did, opening a whole new dimension to my
development.
Q. How effective was it in resolving

the problem?
A. My initial resistance to this role turned
around rapidly. I discovered that the learning
curve was steep and fulfilling. Soon I found
myself not just learning but also enjoying the
ride. In the new role, I learnt how to influ-
ence and motivate large teams, indirectly,
through several layers of the sales function.
Embracing roles off the beaten path came
naturally to me thereafter.
People should get comfortable outside
their comfort zones. Over-planning your
career is limiting. It is often the choices you
make that determine how far you will go.
– sonal khetarpal
138 Vol. 30, No. 1 for the fortnight December 28, 2020 to January 10, 2021. Released on December 28, 2020. Total number of pages 140 (including cover)

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businesstoday.

in YOUR MONEY IN 2021

ThE BT-PwC sTUdY Of OUTsTaNdINg

from Left: Sanjeev Kumar, Gujarat Gas; Gurdeep

Mettle Of The Best CEOs Editor-in-Chief: aroon purie

galdas; Harsh Goenka, Chairman, RPG Enterprises; Raamdeo Agrawal, research

ket leaders in their sectors. production

6 Business Today 10 january 2021 illustration by raj verma

Back From The Raising The Bar

Pg. 30 Full Throttle

businesstoday.in Sporting Adventures

STAy CONNECTED wITH US ON

Best Advice I Ever Got

8 Business Today 10 January 2021

Y-o-Y Growth (%) April-October

Soaps -4.5 Aluminium

…AND THE NOT SO bAD

-12.2 Natural Gas

î At $33.4 billion, merchandise

FDI InFlows GST Collections

12 Business Today 10 January 2021

Domestic Air Air Cargo

Air PAssenger Air cArgo

14 Business Today 10 January 2021

Jewellery fell 67.3 per cent in

sales y0y (%)

Source: Industry Outlook

10 January 2021 Business Today 21

Source: Care Ratings FY17 FY18 FY19 FY20 FY21

Source: Care Ratings

22 Business Today 10 January 2021

26 Business Today 10 January 2021

cational background was no guarantee dustries into a consumer-focused entity.

28 Business Today 10 January 2021

30 Business Today 10 January 2021

10 January 2021 Business Today 31

technology enthusiast. At ICICI Group, which witnessed NDB

32 Business Today 10 January 2021

10 January 2021 Business Today 33

36 Business Today 10 January 2021

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` 3,50,689 cr/ 11.83%

10 January 2021 Business Today 39

40 Business Today 10 January 2021

42 Business Today 10 January 2021

january 12, 2017, N. Chandrasekaran walked in late for the

46 Business Today 10 January 2021

`4,824 cr/ nil

10 January 2021 Business Today 47

in terms of the strategic options in hand.”

48 Business Today 10 January 2021

Retention Success calls and over 3 million messages. “We

10 January 2021 Business Today 49

` 79,153.1 cr/ 3.96%

`21.1 cr/ `106.3 cr

50 Business Today 10 January 2021

say that Fy20 was a challenging year for the

10 January 2021 Business Today 51

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54 Business Today 10 January 2021

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10 January 2021 Business Today 59

60 Business Today 10 January 2021

espite running a company that has been increas-