Murugappa group
A Vellayan, chairman of the Murugappa Group of Chennai, is on a quest for size. He's aiming to nearly double revenues of his conglomerate, one of India's oldest, from a current $3.8 billion, by 2014.
"We must have size. If you get to a certain size you have a self-protection mechanism," says Vellayan, sitting at his corporate headquarters in Parry's Corner, a Chennai commercial district.
The Murugappa Group already has several sizable winners in its basket: Coromandel International is the second-largest producer of phosphatic fertilizers in the country; TI Cycles is the second-largest maker of bicycles in India; and EID Parry is one of the top five sugar companies in the country. Murugappa is often referred to as the Tata of South India, a nod to its vintage, values and the diversity in its business portfolio. Vellayan's idea of "self-protection" is the heft to wield bargaining power.
With a combined wealth of $1.02 billion, the Murugappa family, with 58-year-old Vellayan as the oldest member of the fourth generation, ranks No. 55 on the FORBES INDIA rich list. More than half of the fortune comes from agriculture-based businesses and a fourth from engineering units like TII, which makes steel tubes (as well as those TI bicycles), and CUMI, a world player in abrasives versus 3M and a subsidiary of France's Saint Gobain.
In the past decade Murugappa, like Tata, has been spreading its wings globally, though not in businesses likely to draw popular attention. It has manufacturing bases in Russia and China for abrasives, in France for industrial-class chains and in South Africa for fertilizer inputs.
All this has whetted Vellayan's appetite; he's constantly looking to boost each business segment--either through acquisitions, raw material linkages or joint ventures. (It has linked with Cargill in sugar.) The group has a $400 million kitty for expansions and acquisitions. A team is scouring the globe for takeovers.
Insiders say that ever since Vellayan (he is a Murugappa descendant, but he does not carry the Murugappa surname--his last name is Arunachalam, from his father) became chairman in 2009, he's been pushing the group to dream bigger. The rule of thumb is three times GDP growth for the group as a whole. "He's a big thinker," says V. Ravichandran, a nonfamily lead director for fertilizers and sugar on the group's corporate board, who has worked directly with Vellayan for nearly ten years. "It's not just about setting goals, he also rallies people around the vision. There's a lot of empowerment and a lot of trust."
Since last year Vellayan has started holding two annual investor meets, one in India and one abroad. As a result the 111-year-old group, which has maintained a low profile in the past, is lately gaining more visibility. "In the next few years Murugappa will emerge in the top quartile of business houses in India," predicts Harsh Dole, vice president at IIFL Cap of Mumbai, the institutional equities division of financial services outfit India Infoline. "They have vertical integration in key businesses. The platform for growth has been established. The systems and the people are in place, and most importantly, their internal cash flows are adequate to fund their growth plans." (Murugappa also has bank loans.)
The group has made a habit of buying lossmaking units and turning them around. "We believe that when there are dips in the economy there'll be opportunities," says Vellayan. India's economy has slowed along with others in 2011. This year the company bought a crop-protection manufacturer in Gujarat state for nearly $100 million.
Vellayan's approach to turnarounds is simple. "It all starts with cost management. We look at import substitution. We try to understand the value chain and understand our natural strengths," he says.
He did that when he sent a team to Foskor, a South African supplier of phosphoric acid to the group's fertilizer company. Vellayan put in place a team that increased production by 27%, and Ebit went from a loss of $22 million in 2004–05 to a profit of $122 million in 2007–08. The group came out with a 13% stake and a five-year supply contract.
But for all its forays the Murugappa Group remains only a third of the size of, say, a Mahindra & Mahindra in terms of revenues. Its portfolio of companies remains primarily those in agriculture, old-economy manufacturing and financial services; it hasn't grown as fast as other groups that have expanded into sectors like infrastructure and telecom. A recent attempt with DBS of Singapore to expand an Indian retail-finance business went sour.
Vellayan has his own prescription for growth. "We will not take wild potshots. We have to grow around our skill sets," he explains. "It's a business that has been built over generations."
The Murugappa Group traces its history to 1900, when Dewan Bahadur A.M. Murugappa Chettiar, the founder, started a moneylending firm in Burma. In 1935 the family shifted to India right before the Japanese invasion of Burma. After that it entered a variety of businesses from sandpaper to manufacturing safes to insurance. Today 10 family members--all male--are part of the 32,000 employees.
Vellayan was always groomed for business. After studying in Chennai (then Madras) until fifth grade, he was shipped off to boarding school in north India. "When the train (leaving Tamil-speaking Chennai) crossed a certain station I didn't know the language," he admits. "I was lost."
But the Doon School--whose alumni include former Indian prime minister Rajiv Gandhi and writer Vikram Seth--toughened him up. From climbing craggy rocks on the Rohtang Pass to whitewater rafting in the Doon Valley, he did it all. The three years that followed at New Delhi's Shriram College for his undergrad degree helped him hone his Hindi. His father thought that as a South India-based businessman he needed to learn Hindi to navigate New Delhi's bureaucracy.
Vellayan got his career start in London in 1968, working as a graduate trainee with the group's joint venture partner in the tube business. An M.B.A. from the University of Warwick followed, after which he returned to Chennai in 1972, ultimately heading up the TII unit (Tube Investments of India). He led in the acquisitions of a German chains plant in 1994 and a Japanese tube plant in 1995. (A tube foray into Suzhou, China in 2007 did not go well. Pricing issues led to a $9 million loss by the exit in 2010.)
The group built the fertilizer business, beginning in the late 1990s, and after domestic consolidations and foreign-supply deals it now brings in $1.7 billion in annual revenues.
Now, as chairman, Vellayan is looking not only to reach a commanding size but also to groom the next generation. Succession is no sure thing: Murugappa kin, including two of Vellayan's sons, go through the same human resources sieve as other employees, with annual reviews and career development assessments. Currently all the major businesses in the group but one are led by nonfamily professionals, and the clan holds only two of eight group board seats in the Murugappa corporate board.
Meantime, Vellayan travels at least one week each month. He relies on his daily dose of exercise--a 45-minute walk--whichever city he is in, whether London, Delhi or Chennai.
Vellayan is also big on sports. For instance, when Tata pulled out as sponsor of a professional tennis tournament in Chennai in 2004 Vellayan stepped in, teaming up with schoolmate and tennis ace Vijay Amritraj to keep the balls in play. "He put his shoulder to the wheel, and the event's been a wonderful success," says Amritraj. "What Vellayan always had very much in his corner is his skills with people. He can talk to anyone and everyone."
It's a trait that company insiders also love. "I am just not a social animal," says Ravichandran, the non=family director. "When I was at Coromandel he [Vellayan] used to do all the socializing for me."
Music also rejuvenates Vellayan. He has a collection of 2,000 songs ranging from Middle Eastern to Tamil to Western country music, all depending on his mood. Likely to continue as chairman until he's 65, the retirement age for all group-level executives, he surely needs his rechargers. "We're aiming to be number one in what we are doing, regionally, nationally or internationally," Vellayan says. "That's a big challenge for me."

Godrej

Founded in 2001 in Mumbai India. Godrej consumer product limited is a major player in the India FMCG market with leading household and personal care product. The organization has five manufacturing facilities and uses a wide spread distribution network in both urban and rural market made up of distributor, stock list covering over 50000 retailers across India. The company employs over 1200 employees in India and has an international presence with office in India, Sri Lanka, Bangladesh, Indonesia, Uk and Africa. CGPLs products range include soaps, toiletries and liquid detergent.
Godrej Industries also runs four divisions — Corporate Finance, Corporate HR, Corporate Audit and Assurance and Research and Development — which operate on behalf of the entire Godrej Group.
The goal of these activities is to offer the customer a level of value that exceeds thecost of the activities, thereby resulting in a profit margin. The primary value chain activities are: Inbound Logistics: the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required. Operations: the processes of transforming inputs into finished products and services. Outbound Logistics: the warehousing and distribution of finished goods.• • • • •The goal of these activities is to offer the customer a level of value that exceeds the cost of the activities, thereby resulting in a profit margin. The primary value chain activities are: Marketing & Sales: the identification of customer needs and the generation of sales. Service: the support of customers after the products and services are sold to them.

GMR Group
It was in 1978, when Mr. G.M Rao started off with a small jute mill, and established, over 28 years later, what is known today as the GMR Group. GMR is today a major player in the Infrastructure Sector, with world class projects in India and abroad. The GMR group is headquartered in Bangalore, and has been developing projects in high growth areas such as Airports, Energy, Transportation and Urban Infrastructure.

GMR Group is one of the fastest growing infrastructure enterprises in the country with a rich and diverse experience spanning three decades. With our vibrant portfolio of projects, GMR is uniquely placed to build state of the art projects in sectors that are of critical importance in the process of development. Using the Public Private Partnership model, the Group has successfully leveraged its core strengths to implement several iconic infrastructure projects in India.

Airports : GMR Group operates India’s busiest airport, the Indira Gandhi International Airport (IGIA) in New Delhi. The integrated terminal T3, the largest terminal in India and one of the largest in the world was built by the Group.
GMR Group is a world renowned Infrastructure group that has successfully implemented several iconic Infrastructure projects in India and overseas.
Employing the Public-Private Partnership model, the GMR Group has excellent track record of creating Mega Infrastructure projects. These span the domains of developing, operating, managing and owning International Airports (New Delhi & Hyderabad), setting and operating major Energy utilities, developing and operating modern Transportation and Urban Infrastructure facilities.
With an asset base of over USD 8 billion, the GMR Group is one of the largest infrastructure development companies in India.

VISION
Going forward, the Group will actively seek opportunities in the core areas of infrastructure development. All these would be driven by a single-minded path on translating the vision of the Group.

GMR Group will be an institution in perpetuity that will build entrepreneurial organizations making a difference to society through creation of value.

Airports

GMR Group is the developer and operator of two international airports in India that have won several awards and accolades for quality and efficiency. Indira Gandhi International Airport (IGIA) in New Delhi and Rajiv Gandhi International Airport (RGIA) in Hyderabad, rank among the top five airports in the world.

Energy

15 power generation assets have been developed by the GMR Group of which eight are operational and seven are under various stages of development. With its presence across the entire energy value chain, the GMR Group is today a prominent contributor to the Indian power sector with installed capacity of over 4500 MW and is well poised to emerge as one of the largest private power producers in India.

Transportation

The Group has developed eight Highways which total up to 3136 lane kilometers. Seven Highways are currently operational and one is in the developmental stage.

Urban Infrastructure

The Group is developing a 4300 acre multi-product Special Investment Region (SIR) at Krishnagiri, Tamil Nadu and a 10,000 acre port based multi-product Special Investment Region at Kakinada, Andhra Pradesh.

GMR Sports

GMR has forayed into sports by promoting the Indian Premier League (IPL) cricket team – Delhi Daredevils with the belief that sports in general and cricket in particular provides an important connect with the community at large. Promoting and nurturing potential talent at the grass-root level in around the Capital has been its social objective.

GMR VARALAKSHMI FOUNDATION

The Group is actively engaged in the areas of Education, Health and Hygiene, Community Development and Empowerment through its Foundation, reaffirming its grass root presence as a change agent of society in the field of Corporate Social Responsibility.
GMR Varalakshmi Foundation (GMRVF) is the Corporate Social Responsibility arm of the GMR Group. Its mandate is to develop social infrastructure and enhance quality of life of communities around the locations of the Group’s presence, focusing broadly on education, health and hygiene, sanitation, empowerment, livelihood, and community development. Today, the Foundation’s activities and initiatives are spread across the country.

VALUES AND BELIEFS

GMR Group in its quest for growth has brought in the process of institutionalisation and has evolved a set of seven Values & Beliefs to define the GMR Group culture: For its continual efforts to institutionalise rigorous processes in-line with its values and beliefs, the Institute of Company Secretaries of India (ICSI) has selected GMR Infrastructure Limited (GIL), a listed company of the GMR Group as one of the top 25 companies adopting good corporate governance practices and nominated GIL for its ICSI National Award for Excellence in Corporate Governance for the financial year 2008-09.
Corporate Governance at GMR is driven by a simple principle - 'Achieve right results by right means'.

Reliance

Reliance Group, an offshoot of the Group founded by Shri Dhirubhai H Ambani (1932-2002), ranks among India's top private sector business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Power Limited and Reliance Infrastructure Limited).
Reliance Group's flagship company, Reliance Communications is India's foremost and truly integrated telecommunications service provider. The Company has a customer base of above 118 million including over 2.6 million individual overseas retail customers. Reliance Communications corporate clientele includes over 39,000 Indian and multinational corporations including small and medium enterprises and over 290 global, regional and domestic carriers.
Reliance Communications has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best-of-class services spanning the entire communications value chain, covering over 21,000 cities and towns and over 400,000 villages. Reliance Communications owns and operates the world's largest next generation IP enabled connectivity infrastructure, comprising over 280,000 kilometers of fibre optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region.
Other major group companies - Reliance Power, Reliance Infrastructure and Reliance Capital - are widely acknowledged as the market leaders in their respective areas of operation.

Business
India ’s leading integrated telecom company Reliance Communications is the flagship company of the Reliance Group. Listed on the National Stock Exchange and the Bombay Stock Exchange, it is India’s leading integrated telecommunication company with over 150 million customers.
Our business encompasses a complete range of telecom services covering mobile and fixed line telephony. It includes broadband, national and international long distance services and data services along with an exhaustive range of value-added services and applications. Our constant endeavour is to provide an enhanced customer experience and achieve customer satisfaction by upscaling the productivity of the enterprises and individuals we serve.
Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002, coinciding with the joyous occasion of the late Dhirubhai Ambani’s 70th birthday, was among the initial initiatives of Reliance Communications. It marked the auspicious beginning of Dhirubhai’s dream of ushering in a digital revolution in India. Today, we can proudly claim that we were instrumental in harnessing the true power of information and communication, by bestowing it in the hands of the common man at affordable rates.
We endeavour to further extend our efforts beyond the traditional value chain by developing and deploying complete telecom solutions for the entire spectrum of society.
Wireless
With over 150 million subscribers across India, Reliance Mobile is India’s largest mobile service brand. Reliance Mobile services now cover over 24,000 towns, 6 lakh villages, and still counting.
We have achieved many milestones in this short journey. In 2003, AC Nielsen voted Reliance Mobile (formerly Reliance India Mobile) as India’s Most Trusted Telecom Brand. In July 2003, it created a world record by adding one million subscribers in a matter of just 10 days through its ‘Monsoon Hungama’ offer.
What sets Reliance Mobile apart is the fact that nearly 90 per cent of our handsets are data-enabled, and can access hundreds of Java applications on Reliance Mobile World.
Reliance Mobile has ushered in a mobile revolution by offering advanced multimedia handsets to the common man at very affordable rates. This innovative low pricing has increased the number of mobile phone users and its result is clearly reflected in the meteoric rise in India’s tele-density over the past four years.
Our pan-India wireless network runs on CDMA2000 1x technology, which has superior voice and data capabilities compared to other cellular mobile technologies. CDMA2000 1x is more cost-effective as it utilises the scarce radio spectrum more efficiently than other technologies do. Enhanced voice clarity, superior data speed of up to 144 kbps and seamless migration to newer generations of mobile technologies are some of its key differentiators.
R World
The R World suite of Reliance Mobile is a unique Java-based application. Its uniqueness lies in the fact that it enables complex Internet application to be introduced in mobile phones effectively and quickly. R World receives over 1.5 billion page views per month from Reliance Mobile users.
R World offers a wide array of applications that include hourly news updates, high quality headline video clips, downloadable multi-lingual ring tones, seasonal updates including festival specials, city and TV specials, exam results, astrology, mobile banking, bill payment.
With over 150 data applications offering varied services - unique to any wireless service in India - R World is truly a treasure house of knowledge, information, entertainment and commerce.