Showing posts with label IIPM INTERNATIONAL CAMPUS. Show all posts
Showing posts with label IIPM INTERNATIONAL CAMPUS. Show all posts

Monday, October 08, 2012

M & A The Perfect Corporate Crime

CEOs have ripped apart shareholders’ wealth globally under the guise of M&As; Indian firms more so! B&E’s Manish K. Pandey, Deepak R. Patra and Karan Mehrishi undertake the most radical analysis of the recent past and destroy age-old perceptions!

The pity is, Indians never learn! You’ll get the drift by the time you end the introduction. First, the dirt! The year 2000 was the eve of the glorious new century, and a boon for the Big-6 M&A consulting firms. And why not! For these global consulting proponents, an example like the year 2000 Vodafone-Mannesmann merger was god’s gift multiplied many times over. It was proclaimed to be the single largest deal in history. Sir Christopher Gent, then CEO, Vodafone paid a smashing $190 billion for Germany’s Mannesmann AG, making Vodafone the biggest operator in Europe. The combined entity was valued at $365 billion, making it the world’s fourth largest company overnight. What better a gift could the M&A brayers ask for? Wasn’t this M&A deal enough proof that M&As were/are the only dynamic and rapid solution forward to mammoth growth and that all those who had criticised M&As for the past so many years were nothing but dimwits?

If Gent’s strategy cup ran full of suicidal moves, Arun Sarin – who was on the Vodafone board since June 1999 (and was equally, if not more, to blame) and who took over from Gent in April 2000 – redefined the standard of how much shareholder value could ever be destroyed from a company. Eight years since the deal, the value of Vodafone in terms of market capitalisation stands at $161.4 billion (as on July 24, 2008), down by a sickening $203.6 billion, a fall of 53%! Arun Sarin ensured that in the last eight years since the merger, Vodafone has become the biggest loss making company ever in the history of mankind! The loss: $86 billion! Both Arun Sarin (who exited in June 2008) and Christopher Gent, apart from the other top management, retired multi-millionaires, a far cry from thousands of Vodafone pauper shareholders.

If that sounded absurd, Gary Foresee took on the infamy mantle with ease. Gary joined Sprint as CEO in the year 2003. Signing bonus amount: $6 odd million! Subsequent years’ pay: Between $1.5-6 million! Gary’s claim to (in)fame was ensuring Sprint’s spectacular merger with Nextel in 2004-05. He sold the deal on the fact that the combined telecom giant would have a subscriber base of 53.8 million in the US! What he sweetly left out was the disaster the deal could be. At the time of the deal, the Sprint Nextel common stock was trading at $26.9; it’s at a sickening $8.30 today! While many shareholders got wiped out Mr. Gary Foresee was kicked out at the end of 2007. His severance package? $40 million!

Charles Prince is an equal, if not better peer for these heroes. He, as the Chief Administrative Officer, engineered the utterly disastrous $140 billion merger of Citibank with Travelers Group ten years back. Then he ensured the company jumped into the mortgage black hole. Till date, Citigroup has been forced to write off almost $41 billion because of Prince’s royal exigencies! He was “eased out” in November 2007! Apart from his wholly owned $94 million vested stock holdings in Citi, he got $28 million further stock options, (not forgetting the $53 million during his last four years as Group CEO), plus a pension of $1.74 million; and this apart from a $10.4 million “bonus” that shareholders were made to pay him. [Citi has now recruited Vikram Pandit as the CEO, paying him a cannon ball destroying never before seen signing bonus of $241 million! Since he has arrived, Citi stock prices have tumbled by 25%!].

December 31, 2007, saw Richard Parsons resigning as the greatest CEO of Time-Warner. Greatest, because he joined the board in 1991 [became President in 1995] and oversaw the supernova of a merger between Time and AOL. The companies had a combined value of $247 billion during the deal. Today, the combined entity is worth a mind numbingly low $58 billion. Parsons earned on an average $10.64 million per year. By the way, he’s now the Chairman of the group!

With $37 billion involved, Dieter Zetsche, then on the Daimler Benz board, squeezed through the merger with Chrysler. In 2007, CEO Zetsche made Daimler Chrysler part ways with a deal worth only 21.5% ($7.4 billion) of the total acquisition value! Millionaire Patricia Russo, CEO Alcatel-Lucent, has a history of destroying shareholder wealth. At the time of the merger of Alcatel and Lucent, the entity had a share price of $15.4 (March 31, 2006). July 24, 2008, the price is $6.09 (62% fall). CEO Meg Whitman, who ensured eBay bought off Skype, also ensured eBay’s price fell from close to $40 (September 9, 2005), to $25 (July 24, 2008). Shareholders be damned; she donated $30 million of her personal wealth to Princeton in 2007 to start the Whitman College!

Read more......

Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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Friday, October 05, 2012

B-School Survey Panel Meet , 2010

August 12, 2010, saw Planman Media and Business & Economy magazine play host to eminent corporate personalities of India, in a Panel Meet discussion, for Business & Economy magazine’s highly coveted annual issue – India’s Best B-Schools Special Issue 2010. The most unique element about the B&E B-school ranking is that in this particular ranking, the B-schools are ranked by renowned industry leaders (please refer to ‘List of 20 Panel Members’ section for the names of panelists). Considering the importance of the meet, four distinguished industry leaders – Dr. Wilfried Aulbur (CEO, Mercedes-Benz India), Mr. Michael Boneham (MD, Ford Motor Co. India), Mr. Naresh Gupta (MD, Adobe India) and Mr. Brian Tempest (Former CEO, Ranbaxy and presently, Independent Director, Religare Hichens Harrison) – sent their comments and discussions through the audio/visual format. The round-table discussion revolved about the parameters on which B-schools are judged today, and means by which such ranking can be made more transparent and just. Professor Arindam Chaudhuri, Editor-In-Chief of Planman Media expressed his views on how “faculty and course contents” are the two most important elements to deliver overall knowledge in B-schools. He also stressed upon a need for a constant focus on personality development and communication skills. Mr. Girish Vaidya. Former Director, Infosys Leadership Institute spoke about why B-Schools should be ranked on the basis of “curriculum, global exposure and cultural stability, along with the extent to which entrepreneurial programs” are encouraged. Mr. Dhiraj Mathur, Exec. Director, PwC gave a strong argument on why “a strong orientation towards ethics” is important for a B-school. While K. M. Nanaiah, MD, Pitney Bowes India, also highlighted the need for a “globalised curriculum and industry interface”, Mr. Sumeet Nair, Chairperson of Fashion Foundation of India justified the need for “encouraging an entrepreneurial zeal” amongst the B-school students. The event was a huge success and all the participants concluded that much more needs to be done to arrive at the ideal B-school of tomorrow.


Source : IIPM Editorial, 2012.
For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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Monday, September 10, 2012

M. R. Rao, CEO, SKS Microfinance Ltd.

Launched in 1998, SKS Microfinance is one of the fastest growing Micro Financial Institutions (MFIs) in the world, which has served more than 5 million women members in poor regions of India till date. Of course, the company has been in the news for the wrong reasons following the unceremonious exit of its ex-CEO Suresh Gurumani. Current CEO M. R. Rao talks about the company’s business model and challenges it faces: 

B&E: What is the maximum amount of loan that can be availed and repayment options available?
MR: All members (clients) are eligible to borrow Rs.12,000 depending upon the activity which the member undertakes in the first year of joining SKS Group. From the second year onward, the loan size is increased by Rs.4,000. Loan repayments follow a weekly repayment schedule. All repayments and fresh disbursements happen during the centre meeting, which is held every week at every center. Our loans are given for a period of 50 weeks.

B&E: What kind of problems do you face while repayment of loans?
MR: SKS enjoys a very strong repayment record and our NPAs are negligible. If a member is unable to repay an instalment, the other members in the group/center share the responsibility for the repayment. The few cases of defaults are usually due to migration or due to some natural calamity.

B&E: What are the rates of interest charged by SKS?
MR: SKS works in 19 states. In Andhra Pradesh, Karnataka and Orissa, we charge a flat rate of interest at 12.5% and in rest of the states, the flat rate is set at 15% currently. In the newer states where we have started, our rates are a little higher at 15% flat and 26% diminishing. We also charge a loan cover fee of 1% that helps us offer insurance for the loan period.


Source : IIPM Editorial, 2012.
For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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Saturday, September 08, 2012

No more “Short Cuts”, please!

After growing at a red hot annualised rate of 5.8% in Q1 2010, Canada’s Economic growth has come down to just 2% in Q2, 2010. Canadian policymakers now need to look beyond the ‘short cuts’, be it interest rates or output, if they want the Economy to sustain its growth momentum.

Of the seven industrialised nations that comprise the G7, Canada clearly stands out when it comes to economic recovery from the recent recession. Reason: It not only expanded at an annual pace of 5.8%, but also recovered both the employment and real output losses that accrued over the troubled course, in just one year. No other G7 nation can make an equivalent claim.

However, the party seems to be over for now for this North American nation as the recent economic data out of Canada suggest that its economy might not hold on to the top slot anymore. After growing at a red hot annualised rate of 5.8% in Q1 2010, Canadian economic growth has come down to just 2% in Q2, 2010. While a healthy job market (employment growing at 2.1% yoy) and solid wage growth (4.8% yoy in Q2 2010) should continue to fuel domestic demand, there are several potential headwinds that needs to be avoided. So, with the benefits of the inventory swing (inventory rebuilding had accounted for over 33% of GDP growth in 2009) behind and the boost from government stimulus (over $60 billion in 2009 and 2010) fading, is Canada’s economic boom finally over?

Jay Bryson, Global Economist at Wells Fargo Securities tells B&E, “The strong pace of growth that Canada has been able to realise over the past year led the central bank to take back 75 bps of earlier rate reductions that it believed were no longer necessary. But some of the key factors that helped propel growth during the recovery are no longer providing much help. The consumer, who started out with a fairly decent balance sheet, has become more levered and spending growth has been spotty recently.”

In fact, it has been just one month since Bank of Canada’s (BoC) last rate decision (on September 8, 2010, BoC increased the overnight lending rate to 1%) and just over one week until the next one (perhaps indicating another rate hike), but the risks have already begun to play out in the Canadian economy. The latest employment report, released two days after the last decision, was (after adjustments) the worst since May 2009. As per the report, the average monthly employment gain was just 6,600 in Q3 2010, down from 75,530 in the April to June period.

Housing starts too fell to 1,86,000 units, down nearly 10% from the peak reached last April. Interestingly, in 2009, several people had rushed into the market so that they could take advantage of near zero short-term interest rates and as a result in the 11 months between January and December 2009, existing home sales skyrocketed by almost 66% and prices by more than 21%. But, since the start of 2010, one can clearly see that phenomenon reversing. While sales have corrected by more than 20%, prices too have softened by 3% (as of August 2010).


Source : IIPM Editorial, 2012.
For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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Tuesday, September 04, 2012

HERO & HONDA?: BREAK UP PLANS

Speculations abound on the probability of the Hero Honda JV heading for a sudden break up. B&E’s Pawan Chabra does a speed-check on the repercussions of such an event for both players

To both Honda and Hero’s credit, spokespersons from both groups have denied any such development repeatedly in the recent past. But industry analysts comment that’s not quite the case. It has been reported that the Hero Group has set up an SPV for buying Honda’s share and has also contacted a handful of PE players to pick up a stake in the company. However, there have been concerns on the valuations of the share of the company as it is expected that the share price of the company will fall once Honda moves out of the picture and the home-grown Hero group is facing difficulties in clutching a deal. At the current share price of `1,700, the valuation of Honda’s 26% stake comes close to `90 billion.

So what would Honda have to lose? The answer is quite straightforward – the maddeningly huge and extensive distribution, sales and service network that is one of the key differentiating factors for Hero Honda products. One has to note here that Honda has been separately operating in India with its 100% owned subsidiary Honda Motorcycles & Scooters India Limited (HMSI) since 2001. The company has gained ground in the scooter segment in no time with products like Activa, Eterno and Aviator and is also moving very aggressively into the motorcycle space.

“Honda is looking at the bigger picture here (by breaking up the JV, if that happens) and is eying the huge potential of the Indian two-wheeler industry,” said Vaishali Jajoo, auto analyst, Angel Broking. Not only will Honda have to compete with the market leader, the Hero group, but it will also not bank any share of profits from the JV, apart from foregoing royalty payments (in case Hero decides to have its own R&D). For the record, the Japanese auto major rakes in close to 2.5% of sales as royalty fees every year. It is to be mentioned here that the amount of royalty payment to Honda from the Hero Honda JV stood at `4.2 billion in fiscal 2010. In fact, it is expected to rise to around `5 billion in 2011. A report by IDFC Securities comments that after moving out of the JV, it would take at least 3-4 years for HMSI (Honda Motorcycle and Scooter India Ltd) to scale up to a level to challenge the two domestic market leaders. Our analysis is that given the huge odds among the minor evens, it appears impracticable for the duo to separate, at least for the short run. Differences of opinion over royalty payments can easily be sorted out, especially when the synergy between these two has been empirically evidenced and statistically proven. This time, staying married seems the better course...


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Friday, August 31, 2012

INDIA’S 100 MOST PROFITABLE COMPANIES

Competition today has forced organisations to overlook the importance of values, ethics, credible leadership and corporate governance. they simply hinge their hopes on luck. wrong. Dr. Jamshed Jiji Irani, Director of Tata Sons and Chairman of the Board of Governors, IIM-Lucknow, writes about those elements, which if considered first, would result in fair profits.

Profit is about “Corporate Governance”
Nowadays, “Good Corporate Governance” is very much in the news, and is being demanded from various quarters. There is a drive towards the “Triple-Bottom-Line”. The practice of “Triple-Bottom-Line” – financial, social and environmental – is being taken up by the more enlightened business houses in India and abroad.

The opposite of “Good Corporate Governance” is apathy. Unfortunately, too many of us take the easy alternative under the pretext that, I on my own, cannot make a difference. The truth is exactly the opposite. Even a drop in the ocean can make a difference. Very often, this attitude of apathy is an excuse for not taking a correct stand or for avoiding an initiative to fight corruption.

Another reason which is given for not taking appropriate action, is that we are restricted by the prevailing laws of the land. Once again, nothing can be further from the truth. It can be demonstrated that even under the prevailing laws, which in some cases are definitely restrictive and archaic. It is possible with vision and determination to take actions which can have far reaching impacts.

Profit is about “Leadership with Trust”
The right leader can make a difference. We do not have to go back to the very obvious examples in the political history of great men such as Mahatma Gandhi and Nelson Mandela. Even in a much more restrictive sphere of industry and civic administration, there have been very significant examples in the recent past where one person at the helm, has made a tremendous difference on the performance of an entire organisation. These people gave back to the organisations which gave them respect and made them feel proud to be what they were.

It is well accepted that those organisations and corporations which create ownership and a feeling of belonging in the rank and file, are the best able to stand up to the competitive environments in which businesses find themselves today. The crucial feature is how does one build this culture in a world which is today awash with cynicism and skepticism. Such attitudes do not help any one or any organisation to get ahead and succeed. Therefore, this ‘trust-deficit’ has to be taken head on. The Tata organisation is built on trust, and its motto is “Leadership with Trust”.



          
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Wednesday, August 29, 2012

Picture perfect?

Image is to the mind what perception is to the soul. Have movie-makers ended up distorting both in an attempt to deliver ‘happy’ stories?

You’ve got mail. Every time these words appeared on Kathleen Kelly’s computer screen, she got butterflies in her stomach in anticipation of the words (from her mysterious friend) that lay unread in that mail. But this together with the background song ‘You’re a Dream to me’ often leaves the audience with the same feeling too, especially those who thrive on sweet nothings! Whether it is the perfectly-directed chemistry of love and companionship between Meg Ryan and Tom Hanks in movies like You’ve Got Mail and When Harry met Sally or the extremely optimistic plot performed to perfection by Julia Roberts and Richard Gere in flicks like Pretty Woman and Runaway Bride, romantic Hollywood flicks leave many mesmerised and hopeful (rather adamant) of true (rather perfect) love in their lives too. A recent Australian survey released by Warner Home Video backs this observation. Almost half of the respondents blamed the ‘inevitable happy endings’ of rom-coms to have ‘ruined their view of an ideal relationship.’

Well, with this research, let’s not assume that the Australians are extra-soppy! Hollywood and Bollywood (largely) have immensely influenced Indian minds and hearts too. “The image of a good relationship in the minds of most of the couples I meet stems from Hindi films. The influence is so deep that subconsciously the expectations from each other are from the perfect relationship portrayed in movies like Dilwale Dulhania Le Jayenge (DDLJ). In fact, many girls look for the boyish charm of Shahrukh Khan (of DDLJ) in their partner and I often end up telling them how Shahrukh in reality must not be like that all the time! In the beginning of the relationship, all is hunky-dory but as monotony sets in, (which is absolutely normal) people tend to overreact since the ‘perfect picture’ starts to dissolve,” says Dr. Nisha Khurana, a Delhi based Marriage Counselor.



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Friday, August 24, 2012

Think before you Tweet!

Ever since actor Shahid Kapur underestimated his popularity and revealed his hotel and location in Edinburgh on Twitter, he has been having a difficult time. Even father Pankaj Kapur, who is directing him in the movie Mausam, is unhappy with the series of events since the hotel and shooting sites have been swarming with people. Seems that the effects of unintentional badmaashi are beyond repair now…


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Wednesday, August 22, 2012

Of blood bags and an American dream!

His company came out with an IPO even before it rolled out the first medical device. Then, he had two choices – to make his dimes count or be annihilated. Luckily, his bet paid-off! Today, his outfit named Poly Medicure, is the largest listed medical devices manufacturer in India. B&E’s Steven Philip Warner and Amir Moin catch up with the risk-taker, as he lets-off some nostalgia at his oldest manufacturing plant in Haryana

When Himanshu Baid started off, he was not in an appropriate cash position to start a medical devices manufacturing business – what he had was just not enough. He was forced to borrow capital from his family and friends, roped-in banks and NBFCs and went public. 13 years later, his business is the largest-listed company on BSE (amongst all in the sector). It recorded a gross profit margin of 51.31%, much higher than the average of the sector (22.59%). With a revenue per employee record of Rs.1.44 million in FY2009, Baid, MD of Poly Medicure, who is also one of the largest shareholder of his company (8.83% stake held directly and another 4.32% indirectly), dreams to take this owner-cum-management entity to newer highs. With forays into the Chinese and Egyptian market already, he has his eyes set on his next target – the mature American market! Excerpts from the interview follow: B&E: 1997 was a time when everyone else was investing in the booming IT industry. Why did you choose the medical equipments business, even over the-then growing generic pharma?
Himanshu Baid (HB): When we started, my family was into the business of plastics. So this became a low-risk extension. The knowledge of that business helped us to set up this project. We had an experience in plastic-moulding. So medical equipments happened naturally.

B&E: You exist in an extremely fragmented industry, where you can at best enjoy a small pie of the overall business. Even the ratio of your revenues to the industry’s leads us to a figure which is less than 1%! Your explaination...
HB: We operate purely in a medical device segment. The industry figure that you are talking about is approximately $2.5 billion, which includes every single device that can be “quoted” directly or indirectly as a “medical equipment”. Out of this, we are mainly into products that are of one time usage in hospitals. This segment is roughly around Rs.30 billion in India. Now out of this Rs.30 billion market, the syringe category accounts for atleast Rs.10 billion. And we are not into syringes. So if you zero-down to the 78 products that we manufacture, we are left with a total market of less than Rs.10 billion, of which, we have a share of about 20%. That’s big.


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Tuesday, August 14, 2012

India’s Biggest Wealth Creators Wealth creation beyond market capitalisation

With exclusive interviews and incisive insights, B&E brings the electrifying annual listing of India’s top’ wealth creators during the financial year 2009-2010; companies that gave the largest rise in market capitalisation for their shareholders! By Deepak Ranjan Patra

Do not repeat the tactics which have gained you one victory, but let your methods be regulated by the infinite variety of circumstances.
Sun Tzu c. 490 BC, Chinese military strategist

In this post-recession era, Sun Tzu’s strategy holds a lot more value for all the right logic. Gone are the days when some corporate house could make a grandiose announcement, hype over it through scrappily sassy PR and see investors falling hook, line and sinker for the same, raising their bids for the company’s stocks, which ultimately would end up increasing the company’s market cap to unparalleled highs. There is one critical reason this change occurred. While in the 1980s the biggest participants in the stock investor community were government financial institutions (led by star-eyed bureaucrats who couldn’t understand why pound sterlings were represented as GBP), from the mid 1990s into this decade, the massive majority of investors became what came to be known as FIIs – the brazenly cheeky, impudently crusty, Goldmansquely audacious Foreign Institutional Investors! FIIs came armed with supremely qualified analytical tools that looked through ostentatious corporate window dressing and ensured that market dynamics were driven less by company spiel. So did it mean that finally fundamentals started driving market capitalisations? Baloney! It only meant that FIIs used all technical skulduggery allowed in the trade (including high frequency trading) to book profits, while the common ‘long term’ investor would simply keep waiting – almost moronically – for dividend payouts.

But then, if stock markets are still moving nonsensically without correlation with fundamental strengths of the companies, what in heavens is the justification for this besotted and daffy global infatuation with market capitalisation, where CEOs are recruited and thrown out not on the basis of operational parameters (like sales, cash flows, even profits!) but on the basis of how much they’ve added to the stock market price? For this, you’ll have to go back 40 years, to the year 1970, when an eccentric Einsteinish professor of the University of Chicago – who used to write weekly Newsweek columns – raked up a controversy by saying that any organisation should have only one social objective – increasing financial returns for shareholders! His papers on monetary economics made so much sense that he was awarded the Nobel Prize in 1976. The corporate world finally came around to accept en masse the primary position of the shareholders’ wealth maximisation postulate – and has never changed since! The iconic Milton Friedman passed away on November 16, 2006, but left a legacy that will live its full cycle through the capitalist era.

Enough said, and enough proven. Now, the winners in absolute market capitalization increase on Indian bourses for the financial year 2009-2010...

B&E Hall of Fame: Synopsis

The table of those who performed at the bourses during the year is led by none other that Reliance Industries (RIL). Mukesh Ambani’s Mumbai Indians might have lost to India Cements (Deccan Chargers) in the IPL3 final, but his company paid back the compliment exponentially. RIL’s market cap jumped 44% or nearly Rs.1.09 trillion (total-float) to beat its India counterparts in terms of absolute rise in market cap. It was closely followed by Tata Consultancy Services (Rs.1.04 trillion) and the public sector mining giant, MMTC, which added Rs.87.7 billion to its value. Meanwhile, if one were to compare these figures with international representations, the scenario in the US market was worth watching as a number of financial giants, which were written off in 2008, rose from the dust. The list of top 10 US wealth creators included as many as four financial services companies including Citigroup, Wells Fargo and JP Morgan Chase, apart from Bank of America (BoA). BoA added $132 billion to its market valuation, while Apple gained $114 billion.

A Commentary on Domestic Fundamental Growth

By all means, there is no dearth of skills to create wealth in Mukesh Ambani’s camp. And it’s absolutely not surprising that Reliance Industries has once again emerged as B&E’s biggest wealth creator for the financial year 2009-10. Between April 1, 2009 and April 1, 2010, the company’s market cap witnessed a sustained growth from Rs.2.48 trillion to Rs.3.57 trillion. But does this give a true picture? One look at the company’s ‘fundamentals’ and dear Milton would be damned. While we are talking about the company’s growth in terms of market cap, RIL’s profit during last fiscal has grown by a paltry 3.83% to Rs.162.36 billion from Rs.156.37 billion for the previous year. And the year before that had been another dismal performance (2.46% bottom-line growth). The value of the company’s depreciation has more than doubled in the last fiscal to Rs.104 billion from Rs.52 billion a year before. An analyst from Motilal Oswal Securities tells B&E, “Soaring demand and increased activity level in the oil and gas domain have forced a faster depletion in RIL’s reserves; depreciation during the quarter exceeded our estimate, spiking 134.6% year-on-year on account of the additional depreciation of the SEZ refinery and KG-basin gas facility, resulting a drop in its net profit.”

And if you thought market hype was the reason stock prices were going up, one has to mention that despite credible news about new discoveries, the company has provided very little guidance about the exploration/development plans with regard to many of its key blocks like NEC-25. Add to all that the fact that the company’s Gross Refining Margin dropped from $9.9/bbl to $7.5/bbl [bbl: oil barrel] in the last quarter of FY’10, when the same for other Asian refiners it grew very handsomely – and it become quite clear that even the largest wealth creator has no respect for straightforward seat-of-the-pants profit versus m-cap correlations. And RIL’s stock is still marching ahead at the bourses garnering brilliantly high m-cap figures.


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