In the Big League


In the Big League!

The Indian economy continued to perform well in the fiscal year 2005-06. Recent macroeconomic trends reflect that economic growth in the country is reaching sustainable levels. Despite peak-level oil prices, a continuation of consumption and investment driven growth is fueled by a vibrant manufacturing sector that has been growing at an average 9% over the last two years.

The focus of our businesses has been, to become more proactive in providing a full range of product offerings by lean manufacturing and strategic sourcing, to gain market share, while protecting and improving margins. The success of our efforts is reflected in the results for the last financial year, with our Sales crossing the Rs. 2000 crore mark and the Exports registering a higher rate of growth. As a diversified industrial corporation, we have performed well. For an organic entity, growth and negative entropy are sure-fire remedies for business survival and prosperity. But before we get completely carried away by our performance, it is important to realize that it took us 109 years to reach this coveted milestone.

Sustainable, profitable growth in our businesses continues to be the strategic imperative that our company is focused on. We have to resolutely transform our company, to face the challenges of the new competitive environment and to enable ourselves to exploit the full growth potential that Indian and global markets offer.

To face the challenges of growth and to enhance our competitiveness, we need to continuously expand our capability and our competencies. Our focus on providing customized total solutions requires a total shift from manufacturing-centric to customer-centric mindset. It takes great people to make a great company – not the other way round. We do need to focus on headcount to improve productivity of all our processes, but for product-market leadership and sustained operational improvement, we need a sharper focus on heads that count.

Though input costs remain a cause for concern in the near term, we are optimistic on the outlook for the current year. As always, our effort will be to realize the true potential that our people and the physical and financial resources at our command represent, and stay focused on enhancing shareholder value. We must strive to eliminate waste, optimise costs and maximise productivity. We must also strive for clarity of our role and goals, to remain focused on our priorities, accountability and contribution.

As we take on the challenges of the future, each of us must strive to do .…
“something more; somewhat better;
something new; somewhat different.”
…. if our aim is to be globally competitive, nothing less will do.

Executive Director (Finance)