Industry 2.0 September 2001 - Vol.II by bhupinder sharma

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Reinventing the Manufacturing Organisation

ver the past decade, the Indian manufacturing industry has gone through an exciting journey of growth, and has become increasingly skilled at manufacturing a wide variety of products. Many of these products are complex, or built to high standards of excellence. Manufacturing organisations from the country now routinely figure at the top of quality lists, and have become sought after suppliers by marquee brands around the globe. India has also become an important engineering and design hub for the world’s leading manufacturers, EPC companies and consultants. This has helped proliferate new skills, and foster greater use of advanced technologies in manufacturing. Some of the factors that have propelled a change in the manufacturing environment include the influx of international manufacturers servicing both domestic and international markets from India, the growing aspirations of local customers, and the enormous expansion of the domestic market fuelled by the secular economic growth of the nation. These changes have also transformed the dynamics of the market, compelling manufacturers to become more agile, innovative and responsive to customer needs. Consequently, manufacturing companies are changing their operating and business models. From engineering and product design to supply chain, people management to finance — practices and processes are being revamped and redesigned, with the

industry 2.0

R Giridhar editor@industry20.com

help of technology solutions, to facilitate Manufacturing 2.0. Keeping pace with this rapid transformation, Industry 2.0 magazine has been chronicling the developments and trends in the manufacturing sector, highlighting technology advances, explaining strategy innovations, disseminating best practices, and analysing management issues. Through our feature articles, case studies and analysis contributed by leading thinkers and experts, we have aimed to provide you with a comprehensive overview of innovation and achievement across the manufacturing spectrum. And, as we turn 10, we would like to thank all our readers and sponsors for their unwavering support and encouragement — and making this publication a success. This 10th anniversary edition is our largest ever review of the Indian manufacturing industry, covering almost 2,300 profitable companies across 24 industrial sectors. Collectively, these companies represent `21,461 tn ($466,550 bn) in net sales and `1,605 tn (($34,900 bn) in profit. It is interesting to note that the 726 large companies (organisations with net sales of `300 cr or more) in our list account for almost 94 per cent of the total sales and profits — and that this ratio has remained unchanged when compared with the previous year. I am sure you will find many interesting facts and insights as you peruse the two volumes that comprise this special issue. We look forward to receiving your comments and feedback.

- technology management for decision-makers | september 2011 Vol. ii

contents

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17 cover story

Cover design: Anil V.K.

Manufacturing

SMBs

Every year we analyze the performance of the nationâ&#x20AC;&#x2122;s largest and most profitable manufacturing companies. In our 9th annual ranking we present organizations that have recorded outstanding achievements for the 2010 financial year (year ending March 2010). This year, we selected a total of 2,297 profitable manufacturing companies for our analysis. This represents an increase of 13 per cent over last yearâ&#x20AC;&#x2122;s list. Of these, 726 organizations were grouped into the Top 500 Manufacturing Companies list (Volume 1), while the remaining 1,571 organizations were classified as Top SMB Manufacturing Companies (Volume 2). Our rankings of companies are derived by comparing relative performance of each company across nine financial parameters.

Ranking Methodology Overall Rankings Sectoral Rankings

18 20 110

advertiser index Aviska Infotech ...................................... IBC DIESL .......................................................IFC Dsonic ..................................................... 13 EFD Induction ............................................9 Elecon ................................................... 119

information technology 08 E-Commerce Drives B2B Innovation Understanding how technology can be

increased value. However, executives need to carefully analyze the benefits, and review the drawbacks before making the move.

used to drive business value enables business managers to create new services and greater value for customers.

management & strategy 10 Finding the Courage to Shrink Spinning off businesses and down-

departments Editorial ......................................01 Industry Update......................... 04 Product Update ....................... 118

Havells..................................................... BC PCI ........................................................... 11 S & T Engineers ...................................... 15 SAP India ....................................................5 TE Connectivity ..........................................7 Timken India ..............................................3

sizing the organization can generate

september 2011 VoL. ii | industry 2.0

- technoLogy management for decision-makers

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Power plants turn to Timken for reliability and to improve productivity A Timken速 bearing is known for its stability and ultra-long service life, helping equipment builders and power plants to improve productivity, enabling stable power supply and helping create more value.

www.timken.com Registered Office: Timken India Limited, 39-42, Electronic City, Phase II, Hosur Road, Bangalore - 560100. Tel: 080- 41362000. Fax: 080- 28521039.

Regional Office: North- New Delhi Tel: 011- 46043444, Fax: 011- 41756851

East- Kolkata Tel: 033- 44053300, Fax: 033- 44004845

West- Pune Tel: 020- 41053200, Fax: 020- 40037709

South- Bangalore Tel: 080- 41362000, Fax: 080- 28521039.

industry update

Ingersoll Rand Aims to Reduce Food Waste

ngersoll Rand is now offering cold chain consultancy services to creators of cold chain infrastructure (both mobile and static). The cold chain market size is estimated at Rs 800 crore, and is growing at the rate of 20 to 22 per cent. Commenting on the new service, Manjunath MS, LeaderBusiness Creation for Cold Chain at Ingersoll Rand India says “We aim to provide competitive leverage to our customers, through consulting assistance in structural planning, storage knowl-

edge, automation, remote tracking and cold chain transport and refrigeration.” The company is also piloting reefer transportation models that will suit the needs of small farm holdings in rural India. Considering the poor road infrastructure in the country and increasing fuel prices, Ingersol Rand has designed energy efficient refrigeration systems that can be mounted on small format vehicles to collect perishable produce both, for the first mile and the last mile.

PPG Forms Fibre Glass Venture

PG Industries has signed a letter of intent with Harsha Exito Engineering (India) to establish a joint venture for the manufacture and sale of fibre glass reinforcement products. “Over the next several months, PPG and Harsha will be working to finalise a fibre glass joint venture in Tamil Nadu to primarily serve the Indian market,” announced Thomas P Kerr, Vice President for

fibre glass at PPG. According to Kerr, the projected expansion of the Indian economy will help drive demand for fibre glass in end-use applications like infrastructure, transportation and wind energy. “PPG does not currently operate a fibre glass manufacturing facility in India, but we export fibre glass to the region to support our customers’ operations there,” Kerr pointed out.

Arshiya Builds Advanced Warehouses

rshiya International is partnering with Tata BlueScope Steel to build warehouses at India’s first Free Trade and Warehousing Zone (FTWZ) in Panvel, near Mumbai. For the massive warehousing project covering a total plan area of 5.45 lakh sq ft, Tata BlueScope Building Solutions has designed, manufactured, supplied and erected five Butler buildings. These high-quality building systems have been supplied with a MR-24 roof system, which is warranted for 10 years leakproof performance. The warehouse buildings offer superior functionalities.

september 2011 VoL. ii | industry 2.0

Rajiv Upadhyay, Vice President, Building Solutions business, Tata BlueScope Steel, explained, “These building systems are not only structurally strong and stable but also have a distinct architectural appeal.” Commenting on the partnership, Ajay Mittal, Group Chairman and Managing Director, Arshiya International, said, “Our state-of-the-art warehouses will revolutionise logistics infrastructure.” is developed and operated in India.” Arshiya International is developing five FTWZs across India (Mumbai, Khurja, Nagpur, Chennai and Haldia).

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Jindal iTF Plans Barge TransPorTaTion

indal ITF and NTPC have entered into an agreement to create and operate an infrastructure to transport coal through inland waterways to Farakka, West Bengal. This project is an attempt to reduce dependence on the overstretched railway network to supply fuel to NTPC’s power plant. NTPC needs around 3MMT of imported coal per annum for its Farakka thermal plant. The project will involve transshipment of coal from an east coast port that has a capacity to handle Panamax vessels. Jindal will deploy special barges to fit the width and depth of the waterways to Farakka. Each barge will have a capacity at least of 60,000 MT.

ToyoTa KirlosKar MoTor BoosTs CaPaCiTy

ar manufacturer Toyota Kirloskar Motor (TKM) has announced plans to increase its production capacity to 310,000 units by 2013. This expansion will entail an investment of about Rs 898 crores. According to TKM, the production in the first plant will be enhanced from 90,000 units to 100,000 units, and in the second plant from 120,000 units to 210,000 units. The first plant will manufacture the Innova and Fortuner; while the second plant will produce Etios, Etios Liva and Corolla Altis cars. Group company Toyota Kirloskar Auto Parts (TKAP) plans to put in aluminium casting and machining lines to make parts for the Etios and Etios Liva vehicles. It will come up at TKAP’s new engine plant and will start operations in 2012. These new lines will see an additional investment of about Rs 750 crores.

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industry update

CAMWorks 2011 Automates CNC Programming

eometric is now showcasing its fully automatic CNC programming system, CAMWorks 2011. The updated solution reduces machine programming time by as much as 90 per cent, and allows design and manufacturing engineers to use a common database for both product design and final machining. Using AFR, CAMWorks identifies the areas to be machined, and then uses its proprietary Technology Database (TechDB) to automatically generate tool paths. This results in fully automatic programming of families of parts, automatic programming of similar features on new parts, and the ability to incorporate manufacturing information directly into the solid model.

Shriram EPC to Set Up Solar Thermal Project

hriram EPC (SEPC) has bagged a Rs 640 crore order from Abhijeet Projects to set up a 50 MW Solar Thermal Power Plant in the Jaisalmer district of Rajasthan. The project has been commissioned by Corporate Ispat Alloys (CIAL). CIAL secured the contract for the plant through competitive bidding under Jawaharlal Nehru Solar Mission. CIAL has also entered into a technology agreement with Ener-T International of Israel to provide solar technology to this project. SEPC will execute the EPC work in partnership with ENER-T. The scope of work, to be completed in 20 months, includes the design, engineering, procurement, supply, erection, testing & commissioning of the entire project.

september 2011 VoL. ii | industry 2.0

BHEL Secures Material Handling Project

The TechDB that is used to store and apply knowledge-based machining information, has been enhanced to simplify the process of creating best machining practices. These features make knowledge-based machining capabilities easier to use, and improve the consistency and quality of the programmed parts.

harat Heavy Electricals (BHEL) has bagged a Rs 1,395 crore turnkey contract from National Mineral Development Corp. (NMDC) to set up a raw material handling system for an integrated steel plant at Nagarnar in Chhattisgarh. The scope of the project includes a system that can receive raw material, perform wagon tipping, crushing, storing and feeding the 3 MTPA steel plant. The project will be implemented by BHEL’s industrial systems group that handles orders for bulk material handling like coal and ash handling systems for thermal power plants, raw material and balance of plant equipment for hydropower projects.

SAIL Formulates Research Blueprint

he Board of Steel Authority of India (SAIL) has approved a Master Plan for Research & Development to facilitate acquisition and development of technologies to sustain growth. The plan specifically targets the production of Cold Rolled Grain Oriented (CRGO) electrical steels, development of alternative iron-making technologies, endless strip production, carbon dioxide reduction and sequestration, and optimisation of land use through compact steel plants. SAIL plans to undertake Technology Missions and High Impact Projects to reduce raw material and energy consumption, and couple it with initiatives that will give it greater flexibility in use of raw materials, achieve reduction in carbon-dioxide emissions and improve waste utilisation. The plan targets

- technoLogy management for decision-makers

beneficiation and pelletisation of lowgrade ores, and increasing the use of medium and non-coking coal in steel making. The company also intends to set up Centres of Excellence (COEs) to focus on product development and improvements in collaboration with key customers and technology suppliers. The plan identifies ‘demanding markets’ for steel, such as steels for supercritical thermal and nuclear power generation, defence, renewable energy, etc., as focus areas. On the people side, the plan envisages formation of a cadre of steel technologists who will be world-class experts in technology areas relevant to SAIL. Eventually, there are plans to explore the possibility of setting up of a SAIL Institute for Steel Technology & Industrial Management.

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information technology

Illustration by: Shigil N

E-Commerce Drives B2B Innovation

If you want your organisation to use technology to drive business value, these four tips are for you by kristy j folkwein

s e-commerce becomes more of a business strategy than a productivity tool, CIOs are playing increasingly important roles in business growth and achieving a competitive advantage. Take the airline industry, for example, where CIOs have transformed business models, reduced costs and boosted convenience for travellers. Today, airline passengers are booking tickets, selecting seats and obtaining boarding passes online. When they get to the airport, passengers use electronic kiosks to check in. Airline CIOs have aligned incentives with desired behaviours by making the automated options more convenient than waiting for a person to provide assistance. Bypassing middlemen, such as travel agents, has also reduced costs. Even with recent tussles between airlines and online booking sites, travellers benefit from IT advancements. While many industries have been quick to utilise e-commerce, the chemical industry has lagged because of the required back-end investment in a sound

september 2011 Vol. ii | industry 2.0

- technology management for decision-makers

business strategy and an integrated IT platform. My organisation invested in an SAP-based global IT platform more than 20 years ago, so when market forces required us to offer more choices, we were ready. We developed a Web-enabled business model in an industry with few online options. The result was the creation of the XIAMETER brand in 2002, designed to offer high-quality but standard silicone products online at market-based prices. The business model is highly efficient due to its Webenabled order platform and streamlined services. In contrast, our traditional Dow Corning brand offers customised solutions, product innovation, technical support and new specialty products. My role includes ensuring that the online experience of our XIAMETER customers matches expectations, and that the Webenabled brand operates effectively and efficiently. The business model utilises strict business rules — a powerful factor in e-commerce — to streamline the ordering process, consolidate orders and improve inventory management, which help keep operational costs low. There also are multiple self-service options, including access to product information and prices, online ordering, order tracking and order histories. Our global IT platform provides the backbone. The online brand requires a completely different internal culture and way of doing business. If the XIAMETER brand were to customise orders or offer technical support for product applications, as the Dow Corning brand does, cost savings would be limited since staff time would increase and complexity would grow throughout the supply chain. Today, more than 30 per cent of Dow Corning’s business is conducted online, up from virtually zero before 2002. In my role as CIO, I’ve been able to support the brand’s success through strategic IT investments, an integrated enterprisewide business strategy, and an application interface that is convenient and easy to use. Having the internal mandate and discipline to enforce the brand’s strict business rules has ensured that efficiencies are realised.

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Based on customer research, we expanded the online brand in 2009 to offer more products, a new order-entry platform with greater self-service functionality, and the option to buy directly from local distributors. The XIAMETER brand now appeals to three customer segments: • those who are attracted by good prices; • those who like the convenience of 24x7 availability of information and ordering; and • those for whom security of supply is most important, since they can lock in longer-term contracts The business model is considered innovative in the chemical industry since it is based on smart customer segmentation, provides a new channel to market, offers a new way to interact with customers, and ensures an easy-to-use, self-service format.

The Takeaway

No matter which industry you’re operating in, the lessons we learned during the course of this project will be relevant to you. CIOs are in a unique position to drive business success as never before. If you want to position your organisation to use technology to drive business value, these four tips are for you:

Be innovative and risk-taking in utilising IT strategies to find new ways to address customer needs. Due to advancements in Web-enabled tools and services, CIOs have an unprecedented opportunity to drive corporate strategy. Success requires maintaining a broad, holistic view that utilises IT to empower innovation.

It doesn’t get hot. It doesn’t touch the component. So how can a coil heat metal cherry red in a few seconds? The answer is surprisingly simple: induction exploits the laws of electromagnetism in order to produce heat directly in the workpiece. But what’s really interesting is how heating patterns can be controlled, and how they can be localized and repeated over and over again. Of course, the technology behind induction heating is rather advanced. But after 50 years in the induction business, we’re experts at making user-friendly solutions. And at integrating them into existing or planned production lines. EFD Induction is Europe’s no. 1— and the world’s no. 2— induction company. Our systems are used to harden, temper, braze, weld, anneal, melt, forge, bond, cure and pre- and post-heat. They’re also used to produce plasma. So whatever your needs, there’s a good chance we can devise a solution. And since we’re present in the US,

Make regular investments in the global IT infrastructure to stay ahead of customer requirements. Recognise that a new generation of consumers is comfortable with purchasing online, and these individuals are now embarking on careers in the business world. They’ll drive the adoption of B2B e-commerce. The same people are moving into purchasing departments, and they are comfortable with — and many prefer — to do things online.

3 4

Create and enforce clear IT policies throughout the organisation to prevent adoption and utilisation of renegade IT solutions that don’t support corporate IT strategy.

Tailor IT strategy based on customer research, audience segmentation and market needs. That kind of rigorous methodology and thinking will help shape your company’s future and positioning to meet customer needs along the value chain.

Europe and Asia, your solution is probably closer than you think. Contact us, let’s see how induction can boost your business.

Kristy J Folkwein is Vice President and CIO at Dow Corning. Send your feedback to editors@cioinsight.com This article has been reprinted with permission from CIO Update. @ http://www.cioupdate.com. To see more articles regarding IT management best practices, please visit www.cioupdate.com.

Putting the smarter heat to smarter use www.industry20.com

industry 2.0

- technology management for decision-makers | september 2011 Vol. ii

www.efd-induction.com

management & strategy

Finding The

Courage To Shrink Spinning off businesses can have real advantages in creating value — if executives understand how by bill huyett and tim koller

t takes courage to break up a company. CEOs and boards of directors often fear that investors will view asset divestitures as admissions of failed strategy — that having certain businesses under the same corporate umbrella never made sense. Many worry that shedding assets will cost a company the benefits of scale, cut into the advantages of

september 2011 VoL. ii | industry 2.0

analyst coverage, or even damage employee morale. Spin-offs in particular draw scrutiny because they shrink the size of the parent company but, unlike sales, don’t generate cash to reinvest. We don’t believe these arguments hold up. What’s more, they may lead executives to pass up value-creating opportunities. A fundamental principle of corporate finance holds that a business creates the most value for shareholders and the economy as a whole when it is owned by the best, or, at least, a better owner.So it makes sense that companies should continually reallocate their resources

- technoLogy management for decision-makers

as circumstances change. Moreover, the benefits of being part of a large company come at a cost; in fact, many spun-off companies can make substantial cuts in overhead costs once they are independent. Investors typically don’t care about a company being too small once it reaches a threshold of about $500 mn in market capitalisation.And in our experience, executives and employees of spun-off companies often feel liberated and quite happy to be on their own. So it’s a good sign that there’s been something of a revival in spin-off activity this year. According to Bloomberg, as

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management & strategy of August 25, 174 companies had announced spin-offs of all sizes — quickly approaching the previous global record of 230, in 2006. Among the notable deals are: Kraft Foods’s North American grocery unit and ConocoPhillips’s downstream businesses. The trick to executing a spin-off and to overcoming predictable objections to it is to understand where the value is created. Markets typically respond favourably to spin-offs, but savvy managers understand that such deals create value not from some mechanical market reaction but from the sharpened strategic vision that comes with restructuring or the tax advantages relative to a sale.

Spin-offs: A Brief History

Company break-ups through spinoffs date back at least a hundred years. Many of the earliest and best-known ones were mandated by courts to split up monopolies, including the 1911 breakup of Standard Oil into 34 companies, as well as the 1984 breakup of AT&T into eight companies. After the AT&T breakup, spinoffs became a more common way for companies to change their strategic direction. American Express, for example, spun off Lehman Brothers in 1994, ending its strategy of becoming a financial supermarket. In 1993, as the historical links between chemical and pharmaceutical businesses became less relevant, the British chemical company Imperial Chemical Industries(ICI) spun off its pharmaceutical business as Zeneca. Recent spin-offs have reflected similar shifts. In 2008, when the integration of the production and delivery of media content didn’t lead to the anticipated benefits, Time Warner announced that it would spin-off its cable television business. Some of the major conglomerates built in the 1960s and 70s

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used spin-offs to break themselves up. ITT, one of the best-known conglomerates of that era, used a double spin-off in 1995, to split itself into three companies, ITT Sheraton (now part of Starwood Hotels and Resorts), Hartford Financial Services, and the remaining industrial businesses, which kept the ITT name. In January 2011, ITT announced that it was further splitting up into three companies: ITT Corporation (industrial process and flow control), Zylem (water and waste water), and ITT Exelis (defence). In an even more extreme example, Dun & Bradstreet in 1995, has spun out businesses four times (1996, 1998, 1999, and 2000) and now exists as seven different companies.

Understanding the Benefits

One common misperception about spin-offs is that they are quick fixes for low valuations. Managers see the typically favourable response that markets have to a spin-off announcement as confirmation that a spin-off itself mechanically illuminates value that investors previously overlooked. But that belief is misleading. Such assumptions rest errantly on a ‘sum of the parts’ calculation. For each of a company’s businesses, analysts add up an assumed earnings multiple based on the multiples of industry peers. If they find that the sum of the parts is greater than the market value of the company as currently traded, they assume the market hasn’t valued it properly. Unfortunately, these analyses often are flawed — usually because the selected peers are not actually comparable in industry, performance, or both. Once truly comparable businesses are identified, the undervaluation typically disappears (exhibit). The real reason spin-offs are so valuable is tied to expected performance: increased valuations re-

- technoLogy management for decision-makers

flect the market’s expectation that performance will improve at both the parent company and the spunoff business once each has the freedom to change its strategies, people, and organisation. Indeed, of the 85 spin-offs associated with a major restructuring of a company globally since 1992, spun-off businesses nearly doubled their growth rates and increased their operating profit margins by a median of 1.6 per cent over five years. Among parent companies, profit margins increased 11 per cent in the first year after the spin-off and an additional 3.5 per cent by the fifth year. Also, one academic study concluded that spin-offs improve the allocation of capital, because researchers observed changes in strategy among spun-off businesses. They found that higher-profit businesses tended to increase their investment spending, while lower-profit ones tended to cut it. This ability to change strategic direction is the biggest source of performance improvements. Consider, for example, Bristol-Myers Squibb, which spun off its Zimmer orthopedic-devices business in 2001 with an initial market value of $5.4 bn. Under Bristol-Myers Squibb, Zimmer relied on pricing to drive revenue growth. The separation allowed Zimmer to invest in developing new technologies, launch new products, and grow in new geographies. The company also more aggressively reduced costs by improving efficiency of its manufacturing plants. Another source of improvement is eliminating conflicts and potential conflicts between the parent and the spun-off company. The pharmaceutical company Merck, for example, spun off Medco, its pharmacy benefits manager, in 2003, with an initial market value of $6.6 bn. Because the parent company was an important supplier to Medco, there were

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long-standing questions about whether Medco gave preference to Merck drugs over those of other pharmaceutical companies. The separation eliminated that concern in Medco’s negotiations with customers and helped Medco accelerate its growth by shifting clients to generic drugs and a mail-order pharmacy. Spun-off companies may also attract more desirable management talent. In 2007, Tyco International split itself into three companies: Covidien, Tyco Electronics, and the original Tyco International. Shortly after the spin-off, then-CFO Chris Coughlin described the advantages, reporting that the health care business, Covidien, had made significant strides in attracting new talent that would probably not have been attracted to the old Tyco.In a health care company with a clearly defined strategy, employees and prospective employees could see themselves advancing professionally.

Sell or Spin?

When executives decide to dispose of a business unit because their company is no longer a better owner of it, their first inclination is usually to sell it outright. Yet, spinning off these units may have tax advantages over selling them. In fact, most early spin-offs were completed by UK or US-based companies partly because the tax laws of those two countries treated most spin-offs as tax-free transactions. Several continental-European countries changed their tax laws, beginning in the late 1990s, to facilitate spin-offs. Since the 1998 breakup of Dutch telecommunications company KPN and TNT Post, more continental-European businesses have used spin-offs to break-up their companies. Tax benefits can make a spinoff preferable even if a potential buyer is willing to pay a sizable

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A ‘sum of the parts’ valuation can lead to misleading conclusions if not carefully conducted Disguised example of large company with multiple business units In the first analysis, Unit C’s multiple was based on a diverse set of peers

Assumed earnings multiplier

Deeper analysis narrowed the sample to include only companies with comparable performance in growth and returns on capital Revised earnings multiplier

Assumed estimate of value $ billion

Revised Difference% estimate of value $ billion

Unit A

13×

12x

Unit B

11x

10x

Unit C

20x

10x

100

Enterprise value

Debt

(10)

Equity

Current market value

premium. In the US today, for example, a company must pay income tax of 35 per cent on any gain from the sale of a business, but a spin-off can be structured as a tax free transaction. Consider a hypothetical example. ParentCo has decided to divest one of its business units, which, if spun off, would have a market capitalisation of $1 bn. It also has a $1.3 bn offer from another company to buy the unit outright, reflecting a typical acquisition premium. Since ParentCo’s book value for the unit is $300 mn, the outright sale would carry a tax liability of $350 mn on a $1 bn gain on the sale, reducing after-tax proceeds to $950 mn, less than the unit’s expected market capitalisation. From a shareholder value perspective, taxes alone should make ParentCo seriously consider a spin-off rather than a sale. Three factors determine the breakeven point: the tax rate, the premium from the sale, and the tax book value of the business

industry 2.0

$39 billon

relative to the sale price. Because of the tax dynamics, companies are more likely to spin off highly profitable businesses and sell less profitable ones. The ratio of the tax book value to the selling price is a good proxy for how profitable a business is. A highly profitable business may have a tax basis that is only 10 per cent of the selling price. To break even between selling and spinning off, the company would need to receive a 46 per cent premium on the sale. On the other hand, a low-profit business with a tax book value of 80 per cent of the selling price would need to receive only an 8 per cent premium to breakeven. The authors wish to acknowledge the contributions of Katherine Boas and Mauricio Jaramillo. Bill Huyett is a partner in McKinsey’s Boston office, and Tim Koller is a partner in the New York office. Copyright © 2011 McKinsey & Company. All rights reserved. This article was originally published in August 2011, in The McKinsey Quarterly, www.mckinseyquarterly.com. Copyright (c) 2011 McKinsey & Company. All rights reserved. Reprinted by permission.

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management & strategy

Break the Silos: Communicate project mAp The challenge: At PriceWaterhouse Coopers in New Delhi Time Period: May 2009–March 2011 Team: Finance team and top management Key TaKeaways: No substitute for effective communication; Teamwork within and between business units mandatory

Sushil Agarwal

CFO, Aditya Birla Nuvo (AVNL)

The financial position of Aditya Birla Nuvo has gone from strength to strength since Sushil Agarwal’s appointment as CFO in 2009. The debt burden has been reduced, cash-strapped subsidiaries given a lifeline and the lifestyle division made profitable by dhiman chattopadhyay

september 2011 VoL. ii | industry 2.0

hen Sushil Agarwal became CFO of Aditya Birla Nuvo (AVNL) two years ago, the diversified conglomerate was grappling with serious challenges, each threatening the growth prospects of the $4 bn firm. Having spent the past two decades in various business units of the AV Birla Group, Agarwal knew if the

- technoLogy management for decision-makers

challenges were to be dealt with successfully, he had to convince his colleagues to rally around quickly. “The biggest headache at this stage was the high debt and the resultant stress on the balance sheet. Conservation of cash was another challenge and we also had to turn around a loss making unit,” he recalls as we sit in his office at Nuvo’s Mumbai headquarters.

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HEAVY DUTY HIGH PRECISION ALL GEARED LATHE

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Branches : Ahmedabad, Bangalore, Chennai, Hosur, Hyderabad, Kerala, Kholapur, Mumbai , New Delhi & Pune

management & strategy tackling the challenges

Agarwal, who has recently been elevated to the Board at ABNL, remembers that back in 2008-09, the company had a gross debt of `4500 crore, and a further `5300 crore of strategic investments in subsidiaries. “We had to raise additional borrowings in 2009 to fund part of the investment requirement and maintain liquidity. Unfortunately, this coincided with the global financial crisis,” he recalls. While the amount was sufficient to meet the funds requirement for investments and loan repayments in the 200910 financial year, it weakened ABNL’s leveraging position. “I faced a Catch-22 situation that required urgent action,” Agarwal explains. Convinced that they needed to focus on growth at this stage, Agarwal and his team evaluated all possible fundraising options based on the long-term need of funds, timelines and volatility in the stock markets. “Finally, fund infusion through preferential allotment to the promoters, emerged as the quickest and most appropriate option. Meeting deadlines was essential. I was lucky to have a a great team,” he admits. The entire team played their defined roles to complete this equity infusion of `1,000 crore in ABNL. Agarwal is sure that the conviction and persistence that the finance team showed in the face of adversity and the excellent relationships they maintained with all stakeholders, helped the company. “This initiative helped us grow at a critical juncture, adding long-term strategic value

and reducing stress from the balance sheet,” he says. Post the infusion, the finance team worked towards reducing debt and managing financial risks. One of ABNL’s subsidiaries in the IT and ITeS space urgently needed funds to make its balance sheet stronger. So an innovative structure was created under which ABNL successfully raised `250 crore. This was the Compulsorily Convertible Debentures through private placement. The fundraising strengthened the balance sheet of the IT-ITeS business without impacting ABNL’s overall balance sheet. By March 2011, ABNL had reduced its debt to `2,040 crore from `2,743 crore in March 2009, in spite of growing its businesses. “Our net debt to EBITDA is now 3.2 times vis-à-vis 5.8 times back then, while net debt to equity is down to 0.58 from 0.87 in 2009. Financial ratios at such levels only reflect the strength of ABNL’s balance sheet,” Agarwal says. Two other problems that the CFO and his team dealt with quickly, included a cash flow

“The biggest headache for the organisation at this stage was its high debt and the resultant stress on the balance sheet. Conservation of cash was another big challenge” 16

september 2011 VoL. ii | industry 2.0

- technoLogy management for decision-makers

issue and channelling a business unit’s focus towards profitability. “We focussed on innovative ways to release and conserve cash by working towards optimising inventory terms, rationalising credit periods and negotiating better terms with creditors,” Agarwal explains. “This strategy helped us achieve our targets.” The other challenge was to make the lifestyle unit profitable by making operations efficient. “Our fashion and lifestyle business was scattered in various entities, leading to cost and tax inefficiencies. So we initiated a restructuring exercise that resulted not only in substantial cost and tax efficiency but also in focussed business operations, and optimisation of various resources. This composite scheme, which involved getting clearances from different authorities including our own board and the Mumbai high court, was completed in just 75 days. It helped add a substantial amount to ABNL’s bottom line.”

Lasting Lessons

“I think one of the biggest lessons I have learnt in these two years is the value of effective communication,” he says. “The way the CFO views a challenge needs to be communicated to the stakeholders. And solutions must also be presented to them. Because we communicated solutions, it raised the confidence and the faith that the stakeholders had placed in us.” What is his message for aspiring CFOs? “It’s very important to empower your team and encourage them to look at things collectively. When we are engrossed in our daily routine we unconsciously start working in silos and leave decision-making for the seniors. It is important to break that practice and look at things holistically,” he concludes.

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top

Manufacturing

SMBs

Each year Industry 2.0 analyses the performance of the nationâ&#x20AC;&#x2122;s largest and most profitable manufacturing companies. In ther 9th annual ranking of the Top 500 Indian mid-size and small manufacturing companies, we present organisations that have recorded outstanding achievements for the 2010 financial year (year ending March 2010).

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industry 2.0

11 0

se ct or al ra nk in g

m co 0 50

to p

18 ethod o

DE X.

lo g

pa n

Data analysis by Aman Shukla, Research Manager, 9.9 Media

- technology management for decision-makers | september 2011 | Vol. ii

TOP 500 RANKINGS PROceSS The rankings of mid-size manufacturing companies that are presented in the following pages have been derived through an intensive analysis of financial data to provide you with an insight into the performance of the Indian manufacturing industry.

ur process started with identifying the various sectors that comprise the manufacturing industry in India. Subsequently, the CMIE Prowess database was used to obtain data on key performance financial indicators for all companies. The CMIE Prowess database contains detailed information on more than 10,000 manufacturing companies. The companies that were selected for the analysis needed to have financial data for the years 2008-09 and 2009-10. Subsequently, all companies with negative Profit after Tax (PAT) for the year 2009-10 were eliminated from the list. All companies that did not have complete data for the necessary parameters were also removed from the list. This left us with a grand total of 2,297 manufacturing companies for this year’s ranking process. Since the manufacturing industry has a diverse range of organisations, we divided the total list into two groups. Companies with net revenues equal to or greater than Rs. 300 crore for the financial year 2009-10 were classified as ‘Top Manufacturing Companies’; while companies with net revenues less than Rs 300 crore and more than Rs 10 crore were grouped into ‘Top SMB Manufacturing Companies’. A total of 726 orga-

DISTRIbuTION Of cOmPANIeS Sector 2009 2010 Change Auto 1% 5% 240% Automobile Ancillaries 6% 6% -1% Cement 1% 4% 350% Chemical 9% 8% -15% Clothing & Textiles 12% 7% -44% Cosmetics & Soaps 1% 2% 57% Diversified Manufacturing 0% 2% 509% Electrical & Electronic Goods 5% 4% -16% Electrical Equipment 4% 4% 22% Food Products 14% 13% -11% Gems & Jewellery 1% 3% 178% Glass & Cermics 2% 2% -1% Iron & Steel 8% 11% 41% Machinery 6% 4% -28% Metal Products 4% 5% 9% Non Ferrous Metals 2% 2% -9% Non Metallic Mineral Products 1% 1% 7% Paper & Wood Products 4% 2% -61% Petroleum Products 1% 2% 242% Pharmaceuticals 7% 8% 9% Plastics & Polymers 7% 3% -51% Rubber Products 2% 2% -12% Wires and Cables 1% 1% 22% Total companies: 1,571 (year 2009-10); 1,381 (year 2008-09)

nizations made it to the list of Top Manufacturing Companies (see Industry 2.0, September 2011, Volume 1), while the remaining 1,571 organisations were classified as Top SMB Manufacturing Companies. This volume has the analysis for the Top SMB Manufacturing Companies. About the Numbers All data used for the ranking of companies has been obtained from the CMIE Prowess database. Astute observers will discern that the numbers published in this volume are not an exact replica of the data from original sources. The reason for

september 2011 | Vol. ii | industry 2.0

- technology management for decision-makers

this is simple. Data in original sources (like annual accounts of companies) often lacks uniformity of meaning and scope. Definitions vary from company to company, and even from year to year. A meaningful analysis of the performance of companies or their comparisons with others can only be done if the data is re-stated, wherever necessary, to maintain consistency. This process of making data consistent is often termed as ‘normalisation’. The analysts at CMIE have developed a proprietary methodological framework to re-classify the information provided in the annual corporate statement of accounts. They clearly and unambiguously define every financial parameter— and then re-classify the information from the corporate annual accounts to meet the definition. Consequently, it is likely that the data obtained from Prowess, and published in this volume, is at variance from the original sources. Further, all data has been annualised to ensure consistency in analysis.

INDIAN mANufAcTuRING INDuSTRy Parameter Total no of companies Total Net Sales (in Rs 000 cr)

2008-09

2009-10

Change

2,028

2,297

13.3%

2,020,668 2,146,119

6.2%

Total PBDITA ( in Rs 000 cr)

244,218

315,221

29.1%

Total PAT (in Rs 000 cr)

115,556

160,516

38.9%

-5.1%

ROCE (Median)

Smb mANufAcTuRING cOmPANIeS Parameter

2008-09

2009-10

1,381

1,571

13.8%

129,694

143,752

10.8%

-2.6%

17,182

20,861

21.4%

6.7%

6,902

9,304

34.8%

Average PAT (Rs cr)

18.5%

ROCE (Median)

-3.4%

Total companies Total Net Sales Rs cr) Average Net Sales (Rs cr) Total PBDITA (Rs cr) Average PBDITA (Rs cr) Total PAT (Rs cr)

Change

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chANGe IN RANKINGS

Top 5 Descents 1 Asian Fertilizers Ltd 2 Rainbow Agri Inds. Ltd 3 ANS Ltd 4 New Horizons Ltd 5 Sree Rayalaseema Hi-Strength Hypo Ltd Top 5 Ascents 1 Srinivasa Hatcheries Ltd 2 Technico Agri Sciences Ltd 3 O/E/N India Ltd 4 Ahlcon Parenterals (India) Ltd 5 State Farming Corpn of Kerala Ltd Top 5 New Entrants 1 Ponni Sugars (Erode) Ltd 2 Concord Biotech Ltd 3 Bajaj Corp Ltd 4 Virgo Engineers Ltd 5 Coromandel Sugars Ltd

The Rankings The rankings was derived by comparing the performance of the selected companies across nine parameters (sales turnover, absolute increase in sales, percentage change in the sales turnover, net profit, increase in net profit, PAT/ sales ratio, return on capital employed

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and increase across two financial years). This method offers the advantage of eliminating any subjectivity associated with assignment of weights to the parameters considered for ranking the performance of companies. Scores for all parameters were assigned to each company based on the relative rank of an

industry 2.0

individual company (to the entire set) on that parameter. The composite scores for each company were then calculated as the sum of the scores obtained for each of the nine parameters. The companies were finally ranked on the composite score, with the lowest score securing the highest rank.

- technology management for decision-makers | september 2011 | Vol. ii

2.0

Top

Manufacturing

690

689

net SaLeS (Rs Crore)

InDUStRIaL aCtIVItY

2011 2010 Change

InDUStRY SeCtoR

CoMPanY

oVeRaLL Rank

SMBs

2008-09

2009-10

RS CRoRe

136.58

235.2

98.62

Shilpa Medicare Ltd

Pharmaceuticals

Drugs, medicines & allied products

Ponni Sugars (Erode) Ltd

Food Products

Sugar

132.52

238.58

106.06

1071 1068

HV Axles Ltd

Automobile ancillaries

155.15

236.6

81.45

813

Smita Conductors Ltd

Wires & Cables

Power cables with aluminium

105.33

248.71

143.38

Concord Biotech Ltd

Pharmaceuticals

Drug formulations

53.39

105.24

51.85

HV Transmissions Ltd

Automobile ancillaries

Drive transmission & steering parts

141.85

205.25

63.4

Bajaj Corp Ltd

Cosmetics & Soaps

Hair oil

218.88

294.96

76.08

Swaraj Engines Ltd

Machinery

Diesel engines

208.16

282.43

74.27

192.99

288.64

95.65

41.16

99.57

58.41

240

269.27

29.27

809

1110 1104

566

557

Astral Poly Technik Ltd

Plastics & Polymers

Tubes, pipes & hoses & fittings of plastics

636

626

Veljan Denison Ltd

Automobile ancillaries

Hydraulic pumps

681

670

Vardhman Acrylics Ltd

Clothing and Textile

Acrylic fibre

280

268

KLJ Organic Ltd

Chemicals

Paraffins incl. paraffin wax

117.51

170.74

53.23

Virgo Engineers Ltd

Machinery

Valves

250.62

282.29

31.67

241

227

Mayur Uniquoters Ltd

Clothing and Textile

Other coated / laminated textile fabrics

115.01

164.68

49.67

Hawkins Cookers Ltd

Electrical & Electronic Goods

Cookers

241.95

285.77

43.82

105.91

245.92

140.01

257

241

Sequent Scientific Ltd

Pharmaceuticals

Drugs, medicines & allied products

Precision Camshafts Ltd

Automobile ancillaries

154.08

191.45

37.37

240

221

Lumax D K Auto Inds Ltd

Automobile ancillaries

Auto head lights

139.08

191.08

1209 1189

Sharp Industries Ltd

Chemicals

Flexible packaging materials

69.76

113.32

43.56

1259 1238

Srinivasa Hatcheries Ltd

Food Products

Poultry

83.86

121.37

37.51

1257 1235

Technico Agri Sciences Ltd

Food Products

Agriseed

27.73

55.11

27.38

1030 1007

ZF Steering Gear (India) Ltd

Automobile ancillaries

Steering gears

165.95

216.03

50.08

627

603

State Farms Corpn Of India Ltd

Food Products

Foodgrain

162.55

285.43

122.88

Wim Plast Ltd

Plastics & Polymers

Plastic injection moulding items

92.11

130.47

38.36

september 2011 | VoL. ii | industry 2.0

- technoLogy management for decision-makers

www.industry20.com

legend

Pat/net SaLeS

Change In RoCe

RoCe (Rs Crore)

Change In Pat

Pat (Rs Crore)

PBDIta (Rs Crore)

Change In net SaLeS

Meet the top performers of India who have scored big through innovative thinking, cost-optimisation strategies, intelligent marketing and quality products and services, and, of course, sheer hard work.

PeRCentage

2008-09

2009-10

2008-09

2009-10

RS CRoRe

PeRCentage

2008-09

2009-10

RS CRoRe

PeRCentage

2008-09

2009-10

72%

27.2

82.15

7.56

46.12

38.56

510%

5.05

82.15

21.58

427%

80%

23.33

59.8

12.26

36.85

24.59

201%

15.26

59.8

22.67

149%

52%

80.01

138.67

27.84

63.85

36.01

129%

9.14

138.67

12.14

133%

136%

13.98

41.6

7.71

24.1

16.39

213%

19.96

41.6

23.37

117%

97%

19.45

61.2

9.7

36.72

27.02

279%

14.24

61.2

33.94

238%

45%

60.23

114.61

19.45

52.64

33.19

171%

8.26

114.61

13.96

169%

35%

53.4

102.55

46.99

83.91

36.92

79%

166.32

102.55

51.09

31%

36%

36.92

59.55

21.28

37.35

16.07

76%

23.65

59.55

10.35

44%

50%

26.41

46.39

14.19

28.03

13.84

98%

9.57

46.39

9.37

98%

142%

12.71

33.01

4.71

16.97

12.26

260%

8.27

33.01

15.8

191%

12%

20.56

68.38

4.23

43.44

39.21

927%

2.18

68.38

24.34

1117%

45%

8.45

27.93

4.03

16.35

12.32

306%

10.15

27.93

18.98

187%

13%

46.11

93.38

23.01

59.53

36.52

159%

14.32

93.38

18.65

130%

43%

11.79

28.14

6.06

16.26

10.2

168%

17.43

28.14

21.77

125%

18%

32.39

59.28

19.12

36.84

17.72

93%

51.57

59.28

33.42

65%

132%

60.5

3.52

20.79

17.27

491%

3.75

60.5

7.76

207%

24%

27.7

45.27

8.51

27.33

18.82

221%

9.44

45.27

14.07

149%

37%

19.52

26.86

10.82

19.04

8.22

76%

25.42

26.86

15.72

62%

10.83

22.2

8.59

18.63

10.04

117%

13.88

22.2

12.54

90%

45%

4.26

22.11

1.1

12.39

11.29

1026%

1.67

22.11

17.98

1077%

99%

4.04

15.05

3.02

14.02

364%

7.03

15.05

28.45

405%

30%

29.87

49.47

14.31

28.66

14.35

100%

10.59

49.47

8.03

76%

20.13

41.58

9.21

20.24

11.03

120%

7.75

41.58

7.12

92%

42%

14.66

25.7

17.01

9.01

113%

15.26

25.7

12.27

80%

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industry 2.0

- technoLogy management for decision-makers | september 2011 | VoL. ii

1) Net Sales = (Industrial Sales + Non Financial Services Income - Excise Duty - Sales Tax - VAT - Rates and Taxes - Turnover Tax - Contribution to Oil Pool Account - Contribution to Joint Plan Committee - Service tax - Mining Cess - Misc Indirect Taxes) 2) PAT = PBIT â&#x20AC;&#x201C; Taxes 3) PAT Net of P&E = (PAT - Prior Period Extra Ordinary Income + Prior Period Extra Ordinary Expenses) 4) ROCE = PAT Net of P&E/Average Capital Employed 5) Capital Employed = (Paid-up Equity Capital + Paid-up Forfeited Equity Capital + Capital Contribution, Suspense & Application Money + Reserves and Funds + Paid-up Preference Capital - Revaluation of Reserves - Miscellaneous Expenses Not Written Off + Borrowings + Convertible Warrants) 6) Average Capital Employed = ((Capital Employed + Previous Year Annual Capital Employed (Capital Employed))/2) 7) PBDITA = (PAT + Provision for Direct Tax + Amortisation + Depreciation + Interest Expenses + Financial Charges for Instruments + Expenses Incurred on Raising Deposit and Debts + Bill Discounting Charges) [Source of Data: CMIE Prowess]

Industry 2.0 presents the Batch of 2010.

net SaLeS (Rs Crore)

InDUStRY SeCtoR

2011 2010 Change

InDUStRIaL aCtIVItY

ManufacTuring SMBs

CoMPanY

oVeRaLL Rank

2.0 Top

2008-09

2009-10

RS CRoRe

420

394

Poddar Pigments Ltd

Chemicals

Synthetic colouring substances

119.88

153.02

33.14

951

924

Kewal Kiran Clothing Ltd

Clothing and Textile

Apparels (Readymade garment)

145.4

176.34

30.94

442

414

KCP Sugar & Inds Corpn Ltd

Food Products

Sugar

180.49

247.83

67.34

-13

Indsil Hydro Power & Manganese Ltd

Iron & Steel

Ferro silico manganese

65.3

91.83

26.53

Suprajit Engineering Ltd

Automobile ancillaries

Automobile equipment

163.41

208.77

45.36

779

748

ABI-Showatech (India) Ltd

Automobile ancillaries

Automobile ancillaries, nec

143.13

170.14

27.01

Kabra Extrusiontechnik Ltd

Machinery

Rubber & plastic products machinery

153.45

194.53

41.08

Coromandel Sugars Ltd

Food Products

Sugar

116.22

147.03

30.81

Vikas Granaries Ltd

Food Products

Guar gum

35.66

115.93

80.27

700

504

1205 1170

Super Sales India Ltd

Clothing and Textile

Cotton yarn

104.42

128.17

23.75

1181 1145

Associated Distilleries Ltd

Food Products

Country liquor

33.82

67.1

33.28

186

149

Raptakos, Brett & Co Ltd

Pharmaceuticals

Drug formulations

222.6

260.95

38.35

170

132

Medley Pharmaceuticals Ltd

Pharmaceuticals

Drug formulations

186.26

210.44

24.18

340

301

Kavveri Telecom Products Ltd

Electrical & Electronic Goods

Broadcasting equipment

180.07

200.74

20.67

Megha Technical & Engineers Pvt Ltd

Cement

208.55

251.22

42.67

409

368

Kitex Garments Ltd

Clothing and Textile

Apparels - knitted / crocheted

198.91

272.23

73.32

-30

Chloride Metals Ltd

Non Ferrous Metals

Lead

152.75

239.48

86.73

-41

Zydus Wellness Ltd

Food Products

Margarine

194.62

267.32

72.7

Shri Lakshmi Metal Udyog Ltd

Metal Products

Tubes & pipes

96.88

170.44

73.56

Rossell India Ltd

Food Products

Tea

58.38

77.24

18.86

994

Ador Welding Ltd

Electrical Equipment

Welding electrodes / sticks / wires / fluxes

227.14

267

39.86

Surya Processed Food Pvt Ltd

Food Products

Misc. Manufactured Articles

2.5

29.47

26.97

709

Poly Medicure Ltd

Electrical & Electronic Goods

Medical equipment

112.14

135.61

23.47

Uni-Sankyo Ltd

Pharmaceuticals

Drug formulations

49.1

63.13

14.03

110

India Thermit Corpn Ltd

Metal Products

Miscellaneous articles of base metals, nec

81.36

96.94

15.58

Vinati Organics Ltd

Chemicals

Benzene

194.28

236.44

42.16

322

270

Majestic Auto Ltd

Automobile ancillaries

Automobile ancillaries, nec

114.88

127.49

12.61

310

257

Sundaram Industries Ltd

Automobile ancillaries

Automobile ancillaries, nec

244.96

246.6

1.64

Hari Machines Ltd

Machinery

Other industrial machinery

130.76

190.94

60.18

668

470

948

661

1187 1132

ABC Bearings Ltd

Machinery

Ball or roller bearings

134.49

162.26

27.77

717

661

India Nippon Electricals Ltd

Automobile ancillaries

Flywheel magnetos

127.92

168.9

40.98

-38

Warren Tea Ltd

Food Products

Tea

168.72

200.09

31.37

Oriental Containers Ltd

Non Ferrous Metals

Tin container

165.49

215.13

49.64

Harman Finochem Ltd

Pharmaceuticals

Drugs, medicines & allied products

107.06

130.44

23.38

692

International Conveyors Ltd

Plastics & Polymers

PVC belt conveyor

70.46

87.97

17.51

632

september 2011 | VoL. ii | industry 2.0

- technoLogy management for decision-makers

www.industry20.com

Pat/net SaLeS

Change In RoCe

RoCe (Rs Crore)

Change In Pat

Pat (Rs Crore)

PBDIta (Rs Crore)

PeRCentage

2008-09

2009-10

2008-09

2009-10

RS CRoRe

PeRCentage

2008-09

2009-10

RS CRoRe

PeRCentage

2008-09

2009-10

28%

9.48

20.08

3.97

14.19

10.22

257%

7.76

20.08

18.81

242

21%

27.97

56.18

14.26

32.52

18.26

128%

8.4

56.18

9.99

119

37%

32.71

48.14

11.33

23.74

12.41

110%

4.67

48.14

6.32

135

41%

9.24

20.05

2.83

13.59

10.76

380%

4.15

20.05

14.9

359

28%

27.54

41.82

11.63

21.81

10.18

88%

10.58

41.82

8.16

19%

32.92

50.48

15.15

30.29

15.14

100%

14.94

50.48

10.73

27%

20.74

34.93

11.7

21.46

9.76

83%

15.28

34.93

8.92

27%

15.67

36.43

0.8

16.58

15.78

1973%

0.69

36.43

11.99

1738

225%

10.55

41.17

6.7

21.76

15.06

225%

8.59

41.17

4.66

23%

19.99

41.2

0.88

18.08

17.2

1955%

0.43

41.2

13.06

3037

98%

2.88

10.76

0.44

6.4

5.96

1355%

4.05

10.76

41.76

1031

17%

55.69

81.85

31.08

49.88

18.8

60%

13.33

81.85

5.32

13%

28.83

39.63

12.67

25.14

12.47

98%

9.79

39.63

12.43

127

11%

27.91

56.66

11.35

31.15

19.8

174%

9.51

56.66

11.31

119

20%

34.07

46.91

17.67

28.94

11.27

64%

15.63

46.91

5.83

37%

34.85

45.68

9.96

18.5

8.54

86%

6.21

45.68

6.08

57%

9.09

19.35

4.57

9.94

5.37

118%

18.65

19.35

12.04

37%

38.16

70.87

23.8

45.27

21.47

90%

54.43

70.87

0.78

76%

5.5

15.51

0.35

7.52

7.17

2049%

1.02

15.51

12.91

1266

32%

13.72

29.01

6.96

19.31

12.35

177%

9.25

29.01

11.01

119

18%

36.2

49.21

12.16

25.61

13.45

111%

9.5

49.21

6.71

1079%

1.53

12.71

1.18

9.23

8.05

682%

5.95

12.71

19.19

323

21%

18.27

29.64

5.93

16.43

10.5

177%

6.94

29.64

11.58

167

29%

4.61

16.68

0.38

9.54

9.16

2411%

0.9

16.68

39.37

4374

19%

19.86

38.34

10.18

24.31

14.13

139%

13.52

38.34

13.99

103%

22%

38.49

60.1

25.13

40.04

14.91

59%

25.93

60.1

2.82

11%

15.52

33.41

4.54

20.8

16.26

358%

6.85

33.41

18.56

271%

26.62

97.27

12.92

83.08

70.16

543%

12.03

97.27

57.91

481%

46%

15.15

33.99

5.06

16.13

11.07

219%

5.79

33.99

4.82

83%

21%

20.21

37.09

6.58

20.54

13.96

212%

5.78

37.09

7.46

129%

32%

17.77

29.44

11.75

19.92

8.17

70%

8.6

29.44

5.03

58%

19%

28.9

44.13

14.63

22.27

7.64

52%

15.33

44.13

6.94

45%

30%

16.79

33.95

4.38

14.41

10.03

229%

3.69

33.95

6.32

171%

22%

28.74

45.51

15.8

26.43

10.63

67%

26.96

45.51

6.67

25%

12.41

27.21

2.76

12.96

10.2

370%

4.81

27.21

12.14

252%

www.industry20.com

industry 2.0

- technoLogy management for decision-makers | september 2011 | VoL. ii

Change In net SaLeS

legend

net SaLeS (Rs Crore)

InDUStRY SeCtoR

2011 2010 Change

InDUStRIaL aCtIVItY

ManufacTuring SMBs

CoMPanY

oVeRaLL Rank

2.0 Top

2008-09

2009-10

RS CRoRe

1244 1183

Lumax Auto Technologies Ltd

Automobile ancillaries

161.27

226.76

65.49

318

256

Tasty Bite Eatables Ltd

Food Products

Semi processed snacks & foods,nec (Ready-to-eat instant foods)

45.78

72.28

26.5

286

223

Shalimar Pellet Feeds Ltd

Food Products

Cattle feed

174.61

268.58

93.97

Dujodwala Products Ltd

Chemicals

Camphor

112.61

145.76

33.15

Machino Polymers Ltd

Chemicals

Polypropylene

166.4

199.82

33.42

MK Shah Exports Ltd

Food Products

Tea

140.11

182.17

42.06

Rane NSK Steering Systems Ltd

Automobile ancillaries

Drive transmission & steering parts

78.53

165.4

86.87

64 65

1236 1171 42

-24

-18

Empire Industries Ltd

Glass & Ceramics

Bottles

170.86

187.62

16.76

815

746

Amalgamations Valeo Clutch Pvt Ltd

Automobile ancillaries

Clutch assembly

186.87

226.3

39.43

-26

Sri Krishna Pharmaceuticals Ltd

Pharmaceuticals

Drug formulations

139.21

204.14

64.93

Kangaro Industries Ltd

Metal Products

Miscellaneous articles of base metals, nec

51.22

71.36

20.14

WPIL Ltd

Machinery

Pumps

159.11

212.08

52.97

Faiveley Transport India Ltd

Auto

Parts of railways & tramways, nec

173.85

248.61

74.76

Gandhi Special Tubes Ltd

Metal Products

Tubes & pipes

56.31

75.6

19.29

-19

1097 1023

-41

Parry Agro Inds Ltd

Food Products

Tea

116.38

151.25

34.87

138

Aquamall Water Solutions Ltd

Electrical & Electronic Goods

Water filters

251.77

286.2

34.43

125

Om Metals Infraprojects Ltd

Metal Products

Articles of iron & steel

102.99

196.38

93.39

Minda SAI Ltd

Automobile ancillaries

Wiring harness & parts

121.46

176

54.54

149.69

178.97

29.28

1186 1107

Sterling Tools Ltd

Metal Products

Screws, bolts, nuts, rivets, washers, etc.

1121 1041

Shree Ajit Pulp & Paper Ltd

Paper & Wood Products

Kraft paper & paperboard

59.87

89.44

29.57

Merino Panel Products Ltd

Plastics & Polymers

131.84

148.43

16.59

72.98

96.21

23.23

-23

Economic Explosives Ltd

Chemicals

Sheets, films, etc. of plastic, not reinforced Detonating, safety & other fuses, igniters

237

154

Morganite Crucible (India) Ltd

Non-metallic Mineral Products

Ceramic ware for laboratory uses

30.08

53.23

23.15

22.82

32.26

9.44

1303 1219

State Farming Corpn Of Kerala Ltd

Rubber Products

Plates, sheets, strip, rods, etc. of vulcanised rubber

173

Sunrise Containers Ltd

Plastics & Polymers

Carboys, bottles & flasks

127.92

144.46

16.54

592

506

Indag Rubber Ltd

Automobile ancillaries

Retreaded & other tyres

76.08

111.17

35.09

116

Tesla Transformers Ltd

Electrical Equipment

Transformers

70.04

110.82

40.78

-59

Sahyadri Industries Ltd

Non-metallic Mineral Products

Corrugated asbestos sheets

242.15

281.26

39.11

Bharat Serums & Vaccines Ltd

Pharmaceuticals

Drugs, medicines & allied products

156.62

206.47

49.85

357

267

Anuh Pharma Ltd

Pharmaceuticals

Antibiotics

120.71

166.39

45.68

1144 1053

ITL Industries Ltd

Machinery

Sawing or cutting off machines

31.47

62.62

31.15

462

370

Elantas Beck India Ltd

Chemicals

Wire enamel

183.98

197.03

13.05

-76

Technofab Engineering Ltd

Metal Products

Other fabricated Metal Products

148.82

200.17

51.35

193

Polyplex Corporation Ltd

Chemicals

Polyester film

233.23

243.64

10.41

1313 1218

Machino Plastics Ltd

Plastics & Polymers