Professional Documents
Culture Documents
Pankti Shah
(097050592030)
College certificate
ACKNOWLEDGEMENT
The successful and timely completion of this Project would not possible without the kind co-operation and guidance of Ms. Savitha K. We are grateful to all the faculties and other staff of our college for their support and guidance towards the project which was our part of training. We would like to thank Dr. Rajesh Khajuria, Director of C K Shah Vijapurwala Institute of Management, Vadodara for his motivation.
Pankti Shah
Hansa Karena
DECLARATION
We ,
Pankti
Shah
and
Hansa
Karena,
hereby declare
that
the
ENTREPRENEURS is a result of our own work and our indebtedness to other work publications, references ,if any ,have been duly acknowledged.
Pankti Shah
Hansa Karena
Executive Summary
If you are a woman and especially a person of colour, there are two strikes against you. Immigrant, person of colour, and woman, three strikes against you So I would work extra hard at it. More hours, yes. More sacrifices and trade-offs, yes. That has been the journey. -Ms. Indra Nooyi A successful woman entrepreneur is extremely ambitious, has an inner urge or drive to transform an idea into reality. she is ready to seize opportunities, sets goal, possess clear vision, steps confidently forward and is ambitious to succeed. Every successful woman entrepreneur is truly determined to achieve goals and make her business flourish. In-depth knowledge of the field is essential to success. She comes with new innovative solutions to old problems to tide over issues.
Here we are discussed about five successful women entrepreneurs in India and their success. We also discussed how they running their organization successfully. 1.Ekta Kapoor , Creative Director, Balaji Telefilms 2. Indra Nooyi , Chief Executivedesignate, Pepsi Co. 3.Anu Aga- Chairperson (former) Thermax Group 4.Dr. Kiran Mazumdar Shaw( Chairman & Managing Director
TABLE OF CONTENTS
Preface Acknowledgement Declaration Executive summary SR. NO. 1 PARTICULARS Ekta Kapoor , Creative Director, Balaji Telefilms Ekta Kapoor Career Graph Balaji Telefilms Information 2 Indra Nooyi , Chief Executivedesignate, Pepsi Co. Ms. Indra Nooyi Career Graph Pepsi Co. Information 3 Anu Aga- Chairperson (former) Thermax Group Ms. Anu Aga Career Graph Thermax Group Information 4 Dr. Kiran Mazumdar Shaw( Chairman & Managing Director of Biocon Limited.) Dr. Kiran Mazumdar Shaw Career Graph Biocon Limited. Information 81-86 87-101 63-66 67-79 80 39-41 42-61 62 9-15 16-36 37 PAGE NOS. 8
Shahnaz Herbals)
Husain,(CEO
of
Shahnaz
102
103-105 106-111
General Information
Ekta Kapoor was rewarded the Ernst & Young (E&Y) Startup Entrepreneur Of The Year award in 2001. Although she hasn`t clearly followed the footsteps of her father - actor Jeetendra and current emerging star Tushar Kapoor, she has already become a shooting star in the genre of production and programming. Since producing her first blockbuster television program at the age of 19, Ekta Kapoor has successfully rewritten the script on TV entertainment for the masses. She has very successfully created more than 20 soaps on 10 major Indian networks. The Indian showbiz community keeps a vigil on her every move, and older, more experienced producers are quic to copy any new concept brought in by the `SOAP QUEEN` of Indian television.
She is a smart woman with a definite agenda and has also been appropriately termed as Asia`s most powerful communicator and the lady no.1 in Hindi
10
serials and movies. As the creative director of Balaji Telefilms in Mumbai, Ekta continues to produce absorbing dramas - whether about an ambitious tycoon or a charismatic but scheming wife or a 70-year-old grandmother looking for a job - that consistently strikes a chord with viewers across the subcontinent. "It's been seven years of hard work. But I enjoyed myself." - Ekta Kapoor, Associate Director, Balaji Telefil
11
Ektas father is none other than Jeetendra, the superstar, and her brother Tusshar Kapoor, current Bollywood actor. In Television as a Producer: Ektas first soap was KyunkiSaas Bhi Kabhi Bahu Thi. It started in 1999, and was aired on Star Plus till November 2008, making it not only one of the longest running serials in the history of Indian Television, but also one of the most loved. The central character, Tulsi became one of the most recognized faces on the TV screen. Then came Kutumb in 2000 on Sony TV, and lasted a year. It was rather popular initially, but the ratings dwindled towards the closure of the soap. The same year Kahaani Ghar Ghar Kii hit the screen. Ekta specializes in family drama, and this was no different. The audience loved it as much as her other soaps.
In 2001 came another superhit series Kasautii Zindagii Kay. It was aired on Star Plus as well. Kkusum (2001), told the story of a simple yet strong girl. Needless to say the audience fell in love with the central character, comparing their own daughters and daughter-in-laws to her!
12
Her other serials that have done well are: Kavyanjali (2005), Kasamh Se (2006).
She has also produced few Bollywood films `Kyu Kii... Main Jhuth Nahin Bolta,` `Kucch To Hai,` `Krishna Cottage,` `Koi Aap Sa` and `Kyaa Kool Hai Hum,` `Shootout at Lokhandwala,` `Mission Istanbul` and produced `Once Upon a Time in Mumbai.
13
Ekta kapoor with tushar kapoor "Full of flavours" is how Tushar Kapoor defines his relationship with sister Ekta. One is cool, calm and cooperative while the other is temperamental, terse and touchy. She is still very determined to prove what she thinks is right. She never gives up and he really admire her for the patience she has to wait for her efforts to bear fruit. When he decided to enter in the film industry, he was surprised to know the amount of labour required there. Part of it had to do with his good academic background.
"In a biopic, the central character should have one distinctive trademark feature that stands out so we thought, 'why not let Ajay wear white?' We had made 40 different sets of clothes for him in various colours but couldn't use them. We had to scrap them all" - Ekta Kapoor
"I will essay the younger son of Bhoopat Rai Sood. His elder brother is no more and the property has been passed to the son of the elder brother Siddharth
14
instead of me. This is annoying to me. Initially, I am not being depicted as a gray character but eventually I might change." - Ekta Kapoor
What does it take to succeed in the creative economy? She told, You need to evolve and re-evolve to align yourself with changing tastes.
Great content is all about great basic thoughts! Things you and I can see all around, but no one has been able to pick up and use as a concept.
Do you see yourself as an entrepreneur? Give us your sense of the creative economy. She said, Yes, I am an entrepreneur but not in the conventional sense. I have learnt business as time passed, but I do not have a B-school education. Speaking of the creative economy, it is a completely new field. Films have been there for the last 100 years but television, media, content for mobiles have just made everything so much larger. We now suddenly realize that this is an environment friendly industry which requires very little capital; though it requires absolute skills. And when the medium gets aligned to the content, it creates a whole new breed of professionals. I think the time has come for media schools to be considered mainstream and present a choice of professions. We are going to have various niche channels
15
and we are going to have regional movies coming up. Be it music, films or new media, there is going to be need for fresh content. In it, the creative and the business side will get enough prominence. I think we are seeing the creative economy as just the tip of an iceberg. It is going to fully reveal itself after 10 years. The mediums are actually developing and evolving. Once 3G or 4G comes in, people will want instant gratification as far as entertainment goes. So, there will be professionals catering to that need. What are the critical qualities one needs to succeed in the creative economy? She said, One is basic instinct! You have to know and smell your viewer. Whoever I am catering to--[even] the housewife sitting at home--I need to know her taste! So, instinct is probably the driving force that would stand out for any creative entrepreneur. The second and most important thing would be "evolving". I have realized that the taste of the viewer can constantly change. So you need to sniff out the need for change. Constantly restructuring your own business to cater to changing taste is imperative. You can become successful by doing a certain kind of content [as per] your instinct. [But] you need to reach out to people constantly. The very next year you might have to revolve that same instinct to align yourself to the new state and probably pre-empt it.
16
The Society Achiever Award The Best Entrepreneur of the Year 2001 The 6th Indian Telly Awards 2006 Ekta Kapoor receives Most Outstanding Woman Entrepreneur award Asia's Most Powerful Communicator is the very nice award for ekta kapoor
EKTA KAPOOR WAS AT IIM BANGALORE A few years ago, she received an unusual invitation from the British Council and the Indian Institute of Management, Bangalore, to speak to a group of young people undergoing a weeklong management program to become entrepreneurs for a "creative economy". Chosen on the basis of a national-level competition, they were to be taken to the U.K. with the idea that if they were to start their businesses, they should register their companies in the U.K., or raise investment there.
17
That is when she started tracking the creative economy which is expected to remain recession-proof and low on carbon footprint. Think of it this way: What natural resources do you need to set up a girl-band? If four girls got together and cut an album, it could be a billion dollar industry before anyone knew it, and countries like the U.K. are seriously pushing such entrepreneurs. In India, it is time we looked at this new sector consisting of television and video programming, software games, arts and crafts.
ABOUT HER SERIALS Ekta Kapoor's serials always says: " The rich do not need values, the poor do not have time for them. It is middle class values that my serials are about." And that is working very fine.
18
19
Vision To consistently provide delightful and innovative entertainment experiences by engaging audiences and nurturing talent
Values
Storytelling We always delight audiences with our content and the way we deliver it to them
Compassion We care about our people, we listen, we take the initiative to understand what each one of us wants and work together as a team
20
At 16, Ekta Kapoor was like any other teenager looking to go in front a freezing out life. But soon things altered. Ekta Kapoor got serious about her job and slowly and steadily set out to achieve her dreams. Ekta Kapoor dreamt big, but she dreamt the achievable. And she is at present ruling an empire. Ekta has had her share of ups and downs, but at the end of it all what mattered was her grit to fulfill her ambitions. Heres her story in her own words... Those early days were no cakewalk: She wasnt much of dreamer initially. She started dreaming only when my work started happening. When She was 16, all she thought about was eating good food, basically just relaxing. She was like this youngster who was looking to make around 20,000 a month, so that She could have a happy fun disco-pubbing lifestyle. When She was 18 they planned their venture. Her dad said this is a big opportunity and put a lot of money in this company. That was in 1994 that we set up Balaji Telefilms. The company was losing money because She had made some pilots and they didnt go on air. Her pilots were ok, not really amazing. Her first six pilots were were not approved. Money got clogged. Her dads career at the time was not peaking, they were his last few acting years. Money was important to us and here She was losing more money. She kept telling herself What have I done? Im not good for this. Im not good for anything in life. Coping with insecurities: She believes that anything that goes up has to come down. But She always remember what her dad said: This too shall pass. Good, bad, ugly...everything
21
will pass. Although these are strong logics when things happen to you they do affect you. But life is afterall a lot of experiences put into one. Any kind of shakeup is an experience that you will cherish all your life. As far as insecurity goes, She is quite insecure as a person. Her insecurity fuels a sense of determination, a sense of passion and that passion is what takes you forward. She try to work on her insecurities and make it work for her. The base is insecurity.
Means of communication
The Company believes that all stakeholders should have access to adequate information, regarding the Companys position to enable them to accurately assess its future potential. In accordance with the applicable guidelines / listing agreements with the stock exchanges, all information which could have a material bearing on the Companys share price is released at the earliest. The Companys financial results were published in Business Standard, Free Press Journal and Navshakti/Sakal (regional daily). The financial results and official news releases were displayed on the Companys web site
www.balajitelefilms.com. Presentations made to the institutional investors and analysts are displayed on the Companys website. No such presentations were made in the current financial year. The Company sends a copy of its half-yearly results to each shareholder.
22
Our Brands
Balaji today is a different firm from what it was even one year back. Pioneering widely different genres of content across several distribution media, the firm has completely redefined its brand architecture to reflect these far-reaching changes.
The new Balaji logo reflects its fresh new outlook, while still reflecting the core values it stands for. The Balaji logo will be used for all of its traditional television content, as well as family-oriented, large scale feature films.
Envisaged as a cutting-edge, youth oriented brand, the Alt Entertainment brand will be used on all content catering to a younger, more urban demographic, across the television, movie, mobile and internet space.
Hoonur is our recently-launched online portal for media professionals and entertainment consumers. The brand will be used in the online and mobile space both for the entertainment portal and for user generated content.
ICE is the latest initiative of Balaji Telefilms aimed at providing world class quality education to aspirants wanting to make careers in the Media & Entertainment industry. ICE covers all major specializations like Acting, Cinematography, Direction, Editing, Production, Scriptwriting, Sound and Vfx.
23
ORGANIZATION STRUCTURE
24
Core-strengths are:
Leading figure in the fastest growing entertainment market: We have refined the entertainment taste of the nation and become India's leading entertainment content provider. We have also redefined the business space for the entire nation.
Targeted Content: We have raised the industry benchmark of content making with our highly focused and creatively driven projects. Balaji has emerged, not just as a content provider , but a powerful communicator which influences how people lead theirs. Constant Improvisation: Adapting to the ever changing preferences of target markets, requires improvisation to be a constant and dynamic process. Continuous innovation and technology upgradation has kept us, always a step ahead of the times. Exploring New Vistas: We have maintained our leadership stance only because of our deep understanding of the industry trends. Thus, we've entered into newer fields such as non-fiction, reality shows and events as well. We have entered into the world of motion pictures and succeeded in capturing the attention of this target segment. The animation industry is another possibility, we are currently considering. Strong Management: The overall performance and operation at Balaji is carried out following stringent management guidelines. The entire business model has been 'corporatised' with a view of allowing smooth movement of systems and processes.
25
2.PRODUCTION DEPARTMENT
STUDIOS
Set No : 4B Killick Nixion (Dimensions- Area 60 ft X 100 ft
This set has a Huge Furnished haveli with a hall, a Kitchen & three Bedroom with all property Set No : 5A Killick Nixion - ( Dimensions: Area 40 ft X 72 ft ) This set has Huge Furnished hall & One Bedroom with all property. Set No : 7B Killick Nixion ( Dimensions: Area 150 ft X 50
This set has Huge Furnished haveli with a hall, Aangan & Four Bedroom with all property. The haveli exhibits extravagance of wealth belonging to rural rich, lavishly furnished with vibrant colors, gilded furniture, classy tapestries, towering wooden pillars and sprawling staircases all add mood and dimension to the show and characters. The similar look and extravagance flows into the rest of the rooms of the house. The aagan or the courtyard, a prominent feature in every vernacular structure has been traditionally decorated, with a temple for the pantheon of gods and the centrum stationing the sacred tulsi plant. Set No : 4K Killick Nixion ( Dimensions: Area 60 ft X 67 ft)
26
This set has a Huge Furnished haveli with a hall, & a Bedroom with all property.
Today this set is positioned as an ancient haveli of a feudal lord based in a village in Gujarat.
The set captures the feel of rich traditional Indian house, the ancestral portraits adorned on the walls boast about the grandeur and augustness, from the ornate columns towering high to the checkered floors, from beveled windows to stained glass doors, from wooden staircases sprawling into the hall to the overlooking intricate balustrades, all remind you of the colonial architecture and feudal opulence. Set No : 2A Killick Nixion (Dimensions: Area)
This set has been especially designed Chawls better known as ghettoes of India, the look of the set and the props have been designed keeping in mind the meager means and basic necessities the characters survive on. This set have A Hall & A kitchen, two bedroom with all property & exterior of chawl building replicating the old chawls of Girgaum. This set divided into two parts. Other part called as set no. 2B. It contains A Hall & A kitchen & One Bedroom. Set No : 2D Killick Nixion (Dimensions: Area 40 ft X 80 ft)
This set have Huge Furnished Wada (Kolhapur style), a hall with Aangan & Two Bedroom with all property. The show have Maharashtrian feel. So it get changed to Rich traditional maharashtrian house.
27
A traditional looking house the set is revamped to give it a more urbane look for the chic society, a contemporary circular staircase, bold reds, daring blacks and soothing white dominate in furniture and geometric motif designs. This set have Huge Furnished hall with a Kitchen & Four Bedroom with all property. Disco - (Dimensions: Area 66 * 52 FT)
Welcome to the disco set, with its metallic silvers, psychedelic purple, electronic blue splash of colors on the dance floor it sets the characters in a perfect mood to break into a groovy gyrating Bollywood.
Current Productions
TV Series
Original Run
Pavitra Rishta
Kitani
Hai Season 2
Jeetendra Kapoor, Chairman A popular movie star throughout the 1970s and 1980s, Mr. Kapoor starred in more than 200 films in a 45 year film career. In his long film career, he won a number of awards including a Filmfare Lifetime Achievement Award, the Legends of Cinema Award and the Dadasaheb Phalke Academy Award. Mr. Kapoor has been the company's Chairman since 2000.
Shobha Kapoor, Managing Director Mrs. Kapoor has been instrumental in building the company from its small beginnings in 1994 to India's largest television content company today. From its inception, Mrs. Kapoor has been hands-on in the operational management of the company, controlling on set activity, operational efficiency. Given her wealth of experience, today, she works closely with the Group CEO in helping him discharge his responsibilities. Her stellar work in creating the Balaji organization and brand has resulted in a slew of awards, including CEO of the Year (Indian Telly Awards), Businesswoman of the Year (The Economic Times), and numerous Best Producer awards for television shows produced by Balaji.
29
Ekta Kapoor, Joint Managing Director Ekta Kapoor has almost single-handedly revamped the television landscape in India. She pioneered an entire genre of television content, creating among the most successful shows and heralding the satellite television boom in the country. Balaji's shows have been channel drivers for broadcasters in India, and even today, have a place in the top 2 - 3 shows on each channel.
As the creative force behind Balaji's success, Ekta believes in a hands-on approach to the day-to-day creative direction of each of Balaji's TV shows and films, routinely putting in 16 - 18 hour work days move with the rapidly .
30
REMUNERATION POLICY
The remuneration of the Directors is decided by the Board of Directors as per the remuneration policy of the Company within the ceiling approved by
shareholders.No performance linked incentives were paid or is payable to the Managing Director and the Joint Managing Director for the year under review. Though both Executive and Non-Executive Directors are entitled to commission @ of 2.5% each, due to insufficient profits none of them were paid any commission. no remuneration was paid to non-executive directors apart from sitting fees. Although there is eligibility of commission at fixed rate of 0.80% to the Chairman and 0.20% of the net profits of the Company computed in accordance with Sections 349 and 350 of the Companies Act, 1956, to all other Non-Executive Directors as on date with a ceiling of Rs. 3 lakhs each, no commission was paid to any director due to insufficient profits. Besides the sitting fees, rent amounting to Rs. 23.38 lakhs paid to Mr. Jeetendra Kapoor (refer Note No. B-8 in Schedule 15 Notes on Accounts, annexed to the Financial Statements of the year), there is no other pecuniary transaction by the Company with Non-Executive Director
31
4 FINANCE DEPARTMENT
Balance sheet
Mar PARTICULARS
Sources of funds
' Mar 09
' Mar 08
' Mar 07
' Mar 06
'
10
Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus
Loan funds
13.04 388.74
13.04 375.84
13.04 351.80
13.04 291.12
13.04 237.43
401.78
388.88
364.85
304.16
250.47
32
Mar PARTICULARS
Uses of funds
' Mar 09
' Mar 08
' Mar 07
' Mar 06
'
10
Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total 135.31 27.52 107.78 401.78 92.37 41.01 51.36 388.88 126.26 73.21 53.05 364.85 123.09 41.09 82.00 304.16 108.60 61.84 46.75 250.47 148.81 67.50 81.31 2.90 209.79 98.14 57.68 40.45 51.39 245.67 94.77 50.49 44.28 17.62 249.89 77.68 38.10 39.58 3.83 178.76 66.95 30.70 36.26 5.07 162.39
33
Mar PARTICULARS
Notes:
' Mar 09
' Mar 08
' Mar 07
' Mar 06
'
10
Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs)
209.79 5.45
245.67 5.70
157.25 5.08 -
652.10
652.10
652.10
652.10
652.10
34
5 MARKETING DEPARTMENT
Punyashlok Bhakta has been appointed as Chief Executive Officer New Media at the Ekta Kapoor-backed content production house Balaji Telefilms. Bhakta was previously the Business Head (Consumer Business) and Head of Marketing at Hungama Digital Media Entertainment Pvt. Ltd where his focus was on building Hungama.com. Bhakta has over ten years of experience in marketing, and has worked at companies such as Asian Paints and LOreal, where he worked on brands like Garnier and LOreal Paris. His expertise is in brand management with a focus on communication development and consumer insights. News of his appointment comes even as the company publicly announced its intent to sell the new media and training divisions in January 2011. The new media division of Balaji runs artist hiring portal Hoonur.com and mobile content production. During his three year stint at Hungama Digital Media, Bhakta helped build the consumer business and marketing team from grounds up. As marketing head, he oversaw brand building and communication for the consumer and B2B brands, mobile marketing for VAS products, online and social media marketing, insights and research, as well as corporate communications. Bhakta was also instrumental in developing and implementing Hungamas pan-India retail strategy. He also managed international business development and strategic tieups for Hungama with entertainment and sport entities, in collaboration with the company agent Creative Artists Agency. Shlok holds an MMS in marketing from Narsee Monjee Institute of Management Studies and a B. Sc. in Statistics from University of Mumbai.
35
Corporate Announcements
The company is battling a notice from sales tax authorities for an aggregate amount of Rs. 223.63 crores (including interest and penalty) pertaining to sales tax for the financial Years 2000-2001 to 2004-2005. It had previously received a show cause cum demand notice from the Commissioner of Sales Tax in Mumbai for Rs. 2897.74 lakhs for sales tax in 2008-09 and 2009-10 on exports made to a customer. It had also received another notice for Rs 403.12 lakhs for service tax for the years 2006-07 and 2009-10. Net profit for the quarter ended December 2010 declined to Rs. 121.46 lakhs from Rs. 181.54 lakhs in the same quarter in 2009 but has increased quarter on quarter from a net loss recorded of Rs. 640 lakhs. Meanwhile, subsidiary Balaji Motion Pictures paranormal/ romantic movie Ragini MMS is slated for release. The company also plans to release its maiden Marathi film this year, marking its first foray into regional cinema.
36
SWOT ANALYSIS
Strengths
Strong creative team: The companys serials accounted for 79% of the aggregate TRP of the weekday prime time shows featuring in the top 100 Hindi cable and satellite shows. Being the leader in the Hindi mass entertainment space, accounting for more than 40 of the top 100 programmes, some of its popular serials have been on air for years now but still dominate the TRP ratings. Balaji has also been very successful in regional programming.
Low overheads: Balajis budgeting discipline is responsible for a strict control of costs. The budgeting discipline has the following priorities. Each programme is appraised as a profit center and costs are compared with the budgeted target across every episode, artiste, location, and people expenses. Secondly, project life cycle management comprises of a holistic perspective of shooting schedules, scene wise artiste requirements, ongoing shooting progress and final product delivery before shooting commences.Balaji has two state of the art post production suites, which accelerates the conversion of recorded material into episodes and enhances the flexibility to review the produced content with the objective of revision and improvement.
Weaknesses
Over dependence on key personnel: Ekta Kapoor is the creative director of Balaji and is chiefly responsible for the companys success. Although Balaji has a proper structured creative team in place, it still heavily depends on Ekta Kapoor. Balaji Telefilms evinces a lot of interest from aspiring actors who are eager to work with it. Initially the company doesnt have to pay high fees to these aspiring stars. However if any of
37
their actors becomes very popular then high fees have to be paid to them. Besides this the popularity of the serial hinges on the performance of these key actors to some extent and their exit can hurt the TRPs of the show.
Difficult to sustain success: Balajis programmes accounted for 79% of the aggregate TRP of the weekday prime time shows featuring in the top 100 Hindi cable and satellite shows. The tastes of the viewers are fickle and it will be very difficult for Balaji to sustain these high TRPs leave alone improving them. Thus Balajis impressive track record may prove to be its bane in the future.
Lack of scalability: Production of entertainment software is not a very scalable business. The channels that Balaji services are limited in number. Besides, talented directors, technicians, artistes required for expanding operations are not easily available. Most of the other production houses produce only one or two serials at a time finding it very difficult to scale up their level of operations.
Opportunities
Growth opportunities: The penetration of television sets and cable TV is very low in India. It is expected to increase due to the rise in incomes and a decline in the prices of television. Digitalization (CAS and DTH services) will increase cable penetration from 70 m homes in 2006 to around 113 m homes by 2011. The Indian television industry had a market size of US$ 3.24 bn in 2005 and is expected to reach US$ 9.34 bn by 2010, a CAGR of 24%. Advertisement spending in India is directly linked to the growth in GDP. In view of the countrys projected GDP growth, the countrys TV advertising market is expected to grow from Rs 66 bn in 2006 to Rs 123 bn by 2011.
Entry of new players in the Hindi General entertainment space: The Hindi general entertainment space will get more competitive with the entry of NDTV, UTV, INX Media. The broadcasters would try to maintain or
38
increase their market share by improving their quality of content. Thus the broadcasters expenditure on content would increase. INX media has requisitioned Balaji to produce a couple of shows for it. Balajis programming hours would increase as well as its realisations per hour should also continue to increase in the future. Threats
Plummeting share of mass entertainment: Balaji has produced many successful serials in the mass entertainment genre. However, it has not been very successful in other programme genres such as comedy shows, reality shows, music contests that are getting increasingly popular and are telecast on prime time. In fact, the share of mass entertainment channels in terms of viewership and revenues is reducing (as seen from the table below). If this trend amplifies in the future, then it can adversely affect the profits of Balaji.
FUTURE OUTLOOK
Future strategies Corporate Level Grow beyond being a television content provider Further strengthen the professional identity De-risk and Diversify Revenue Model (channels, regional programming, other business divisions) Establish ALT and Hoonur as recognized brands Expand management bandwidth
39
SUMMARY
EKTA KAPOOR is a smart woman with a definite agenda and has also been appropriately termed as Asia`s most powerful communicator and the lady no.1 in Hindi serials and movies. As the creative director of Balaji Telefilms in Mumbai, Ekta continues to produce absorbing dramas - whether about an ambitious tycoon or a charismatic but scheming wife or a 70-yearold grandmother looking for a job - that consistently strikes a chord with viewers across the subcontinent.
40
41
GENERAL INFORMATION
ABOUT INDRA NOOYI Indra Krishnamurthy Nooyi is her full name and she belongs to the Southern Indian city of Chennai. She was born in 28 October 1955 in Madras, now Chennai. She has done her graduation from Madras Christian College (MCC) in Chemistry, Physics and Math. On completion of her graduation she went to Indian Institute of Management in Calcutta for doing Masters in Finance and Marketing. Soon after completion of her MBA she joined ABB and then Johnson and Johnson (J&J) in Mumbai. One of her achievement with J&J is her close association with launch of the sanitary napkin Stayfree. From there she has been no stopping her life. However, her career profile was not satiating her wishes to do more in life and she persuaded her parent to let her study at Yale Management School in US. She completed her Masters in Public and Private Management from Yale. Here in US before landing in the Pepsi in 1994, she had worked with Boston Consulting Group and Motorola. Indra coaxed the CEO Roger Enrico of the Pepsi to follow-up the companys restaurant division, including brands such KFC, Pizza Hut and Taco Bell, as the chief strategy officer. Her quick decision making ability and sticking to the work until its got accomplished has drawn this comment. If she gets an idea, she goes after it. Theres no stopping her.? No doubt her firmness and go getting attitude has won her laurels in the company and this helped her to build a strong foundation in the career graph to reach the top echelons in the organization where many people just day dream to reach.
42
Why did we take Ms. Indra Krishnamurthy Nooyi? She is the only Indian woman to become the Chief Executive Officer of the more $ 25 Billion Multinational, and perhaps the first Indian to reach to this level. As of now she has been deliberately being used so as to see more and more Indian transcendent to that level in future. For Ms. Indra this has been a both tough and exciting experience. As she has said in her own word that being a woman, immigrant and colour made it thrice difficult for her to reach to this destination, but only mantra which she followed during the course of time was working hard twice as the male counterpart.
What position is Ms. Indra nooyi now in pepsico? Ms.INDRA K. NOOYI, 55, has been PepsiCos Chief Executive Officer since 2006 and assumed the role of Chairman of PepsiCos Board of Directors in 2007. She was elected to PepsiCos Board of Directors and became President and Chief Financial Officer in 2001, after serving as Senior Vice President and Chief Financial Officer since 2000. Ms. Nooyi also served as PepsiCos Senior Vice President, Corporate Strategy and Development from 1996 until 2000, and as PepsiCos Senior Vice President, Strategic Planning from 1994 until 1996.
What are the process of coming that CEO position? Prior to becoming CEO, Mrs. Nooyi served as president and chief financial officer beginning in 2001, when she was also named to PepsiCo's Board of Directors. In this position, she was responsible for PepsiCo's corporate functions, including finance, strategy, business process optimization, corporate platforms and innovation, procurement, investor relations, and information technology. Between February 2000 and April 2001, Mrs. Nooyi was senior vice president and chief
43
financial officer of PepsiCo. Between 1996 and 1999, Mrs. Nooyi was senior vice president of corporate strategy and development. Before joining PepsiCo in 1994, Mrs. Nooyi spent four years as senior vice president of strategy and strategic marketing for Asea Brown Boveri, a Zurichbased industrials company. She was part of the top management team responsible for the company's U.S. business as well as its worldwide industrial businesses, representing about $10 billion of ABB's $30 billion in global sales. Between 1986 and 1990, Mrs. Nooyi worked for Motorola, where she was vice president and director of corporate strategy and planning, having joined the company as the business development executive for its automotive and industrial electronic group. Prior to Motorola, she spent six years directing international corporate strategy projects at the Boston Consulting Group. Her clients ranged from textiles and consumer goods companies to retailers and specialty chemicals producers. Mrs. Nooyi began her career in India, where she held product manager positions at Johnson & Johnson and at Mettur Beardsell, Ltd., a textile firm. Who are the persons behind Ms. Indra Nooyi In fact, standing up for what she believed in is a quality that Nooyi inherited from her mother. Along with sister Chandrika, who went on to work at the Citibank, the World Bank, the New York Universitys Stern School of Business and then set up Tandon Associates, the Krishnamurthy girls were honed in on the art of leadership at a very young age. In her childhood Every night after dinner, her mother used to ask them to make speak on what they wanted to do when they grew up also make them to compete to solve it as if they were a President or Prime Minister and the winner was awarded a piece of chocolate.
44
About her husband she says "He helps me. He supports me. He's a man with a big heart,"
Why she get success? She began her discourse with the exhortation that there are no limits to what you can do, but cautioned the audience not to let others define the concept of success for them, adding, not even me. In Indra Nooyis regard, success isnt money, prestige, or power because net worth can never define self worth. True success is being happy with yourself, is being fulfilled. And that comes from devoting your time, your life, to doing what you love the most. The core of the concept of success lies in knowing what you want to do in life and those who have triumphed at figuring out that issue should consider themselves tremendously blessed, she explained. Such advice does not seem simplistic, coming from a business leader with verve, like Indra Nooyi, who reportedly balances and blends her corporate role with her other talents that include playing the guitar and singing, skills that she presumably developed as part of an all-girl rock band while attending college in India. Finally she explained that the three critical pillars of success are, family, friends and faith, she said, when things look bleak and uncertain, its your family, friends and faith that pull you through.And when Im wrestling with change in my life, good or bad, the first place I turn to, is my religion. I tell you, it really helps.
45
* Bachelor's degree (Chemistry, Physics, Maths) from Madras Christian College, Chennai (1974).
* Master's Degree in Finance and Marketing from the Indian Institute of Management in Calcutta (1976).
* Master's Degree in Public and Private Management from Yale University's School of Organization and Management (1978).
46
beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001 - which added the Gatorade brand to its portfolio as well. As of 2009, 19 of PepsiCo's product lines generated retail sales of more than $1 billion each,and the companys products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food & beverage business in the world. Within North America, PepsiCo is ranked (by net revenue) as the largest food and beverage business. Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the company employed approximately 285,000 people worldwide as of 2010.The companys beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions.PepsiCo is a SIC 2080 (beverage) company.
47
48
PepsiCo Values & Philosophy Our Values & Philosophy are a reflection of the socially and environmentally responsible company we aspire to be. They are the foundation for every business decision we make.
Competition
The Coca-Cola Company has historically been considered PepsiCos primary competitor in the beverage market,and in December 2005, PepsiCo surpassed The Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. In 2009, the Coca-Cola Company held a higher market share in carbonated soft drink sales within the U.S.In the same year, PepsiCo maintained a higher share of the U.S. refreshment beverage market, however, reflecting the differences in product lines between the two companies.As a result of mergers, acquisitions and partnerships pursued by PepsiCo in the 1990s and 2000s, its business has shifted to include a broader product base, including foods, snacks and beverages. The majority of PepsiCo's revenues no longer come from the production and sale of carbonated soft drinks Beverages accounted for less than 50 percent of its total revenue in 2009. In the same year, slightly more than 60 percent of PepsiCo's beverage sales came from its primary non-carbonated brands, namely Gatorade and Tropicana PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack food market, accounting for approximately 39 percent of U.S. snack food sales in 2009] One of PepsiCo's primary competitors in the snack food market overall is Kraft Foods, which in the same year held 11 percent of the U.S. snack market share.
49
Areas of business
The structure of PepsiCo's global operations has shifted multiple times in its history as a result of international expansion, and as of 2010 it is separated into four main divisions PepsiCo Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe, and PepsiCo Asia, Middle East and Africa. As of 2009, 71 percent of the companys net revenues came from North and South America, 16 percent from Europe and 13 percent from Asia, the Middle East and Africa.
50
Marketplace
To encourage people to make informed choices and live healthier. display calorie count and key nutrients on our food and beverage packaging by 2012. advertise to children under 12 only products that meet our global science-based nutrition standards. eliminate the direct sale of full-sugar soft drinks in primary and secondary schools around the globe by 2012. increase the range of foods and beverages that offer solutions for managing calories, like portion sizes.
51
Milestones
PepsiCo is named to the 'Best Companies for Multi Cultural Women' list by Working Mother magazine
PepsiCo joins Ceres, a leading coalition of investors, environmental groups and public interest organizations working to address sustainability efforts
Near East brand launches two new productsPearled Couscous side dish and Near East Gourmet Meal Kits
SoBe Lifewater introduces two new zero-calorie flavors Acai Fruit Punch and Mango Melon
Pepsi celebrates its 75th anniversary in Canada PepsiCo honored with 'Respect Award' for its commitment to diversity by the Gay, Lesbian and Straight Education Network (GLSEN)
Frito-Lay Turkey honored with 'Environment-Friendly Industrial Plant' award from the Kocaeli Chamber of Industry
PepsiCo creates Baked Snacks North America Business Unit to meet consumers interest in more nutritious snacks and foods
PepsiCo opens new Russian beverage plant in Domodedovo, the largest bottling plant in PepsiCo's global system
Naked Juice becomes the first nationally distributed brand to use 100% recycled plastic bottles with the Naked reNewabottle
PepsiCo Russia celebrates 50th Anniversary Frito-Lay North America adds more than 1,000 fuel-efficient vehicles to its fleet
52
1. Expand the Global Leadership Position of Our Snacks Business. 2. Ensure Sustainable, Profitable Growth in Global Beverages. 3. Unleash the Power of Power of One. 4. Rapidly Expand Our Good-for-You Portfolio. 5. Continue to Deliver on Our Environmental Sustainability Goals and Commitments. 6. Cherish Our Associates and Develop the Leadership to Sustain Our Growth.
53
PRODUCTION DEPARTMENT
Our OperatiOns
(1) PepsiCo Americas Foods (PAF), which includes Frito-Lay North America (FLNA), Quaker Foods North America (QFNA) and all of our Latin American food and snack businesses (LAF), including our Sabritas and Gamesa businesses in Mexico;
(2) PepsiCo Americas Beverages (PAB), which includes PepsiCo Beverages North America and all of our Latin American beverage businesses; and
(3) PepsiCo International (PI), which includes all PepsiCo businesses in Europe and all PepsiCo businesses in Asia, Middle East and Africa (AMEA).
Our three business units are comprised of six reportable segments (referred to as divisions), as follows: FLNA, QFNA, LAF, PAB, Europe, and AMEA.
54
MARKETING DEPARTMENT
Our Distribution network
We are brought to market through DSD, customer warehouse and foodservice and vending distribution networks. The distribution system used depends on customer needs, product characteristics and local trade practices.
Direct-store-Delivery
We, our bottlers and our distributors operate DSD systems that deliver snacks and beverages directly to retail stores where the products are merchandised by our employees or our bottlers. DSD enables us to merchandise with maximum visibility and appeal. DSD is especially well-suited to products that are restocked often and respond to in-store promotion and merchandising. Customer warehouse
Some of our products are delivered from our manufacturing plants and warehouses to customer warehouses and retail stores. These less costly systems generally work best for products that are less fragile and perishable, have lower turnover, and are less likely to be impulse purchases. Foodservice and Vending Our foodservice and vending sales force distributes snacks, foods and beverages to third-party foodservice and vending distributors and operators. Our foodservice and vending sales force also
55
distributes certain beverages through our bottlers. This distribution system supplies our products to restaurants, businesses, schools, stadiums and similar locations. Our Competition
Our businesses operate in highly competitive markets. We compete against global, regional, local and private label manufacturers on the basis of price, quality, product variety and distribution. In U.S. measured channels, our chief beverage competitor, The Coca-Cola Company, has a larger share of CSD consumption, while we have a larger share of liquid refreshment beverages consumption. In addition, The Coca-Cola Company has a significant CSD share advantage in many markets outside the United States. Further, our snack brands hold significant leadership positions in the snack industry worldwide. Our snack brands face local, regional and private label competitors, as well as national and global snack competitors, and compete on the basis of price, quality, product variety and distribution. Success in this competitive environment is dependent on effective promotion of existing products, the introduction of new products and the effectiveness of our advertising campaigns, marketing programs and product packaging. We believe that the strength of our brands, innovation and marketing, coupled with the quality of our products and flexibility of our distribution network, allow us to compete effectively.
Market Risks We are exposed to market risks arising from adverse changes in: commodity prices, affecting the cost of our raw materials and energy, foreign exchange rates, and interest rates.
56
57
FINANCIAL DEPARTMENT
Financial News PepsiCo has enjoyed a long history of delivering strong financial growth for shareholders. With some of the world's most powerful brands, our commitment to sustainability and top global talent, PepsiCo is positioned to win in the long term. Financial Highlights
PepsiCo, Inc. and subsidiaries (in millions except per share data; all per share amounts assume dilution)
58
Operating Activities During 2010, net cash provided by operating activities was $8.4 billion, compared to net cash provided of $6.8 billion in the prior year. The increase over the prior year primarily reflects the incremental operating results from our acquisitions of PBG and PAS, as well as favorable working capital comparisons to the prior year. Also see Management Operating Cash Flow below for certain other items impacting net cash provided by operating activities.
In 2009, our operations provided $6.8 billion of cash, compared to $7.0 billion in 2008, reflecting a $1.0 billion ($0.6 billion after-tax) discretionary pension contribution to our U.S. pension plans, $196 million of restructuring payments related to our Productivity for Growth program and $49 million of merger cost payments related to our acquisitions of PBG and PAS. Operating cash flow also reflected net favorable working capital comparisons to 2008. Investing Activities During 2010, net cash used for investing activities was $7.7 billion, primarily reflecting $3.2 billion for net capital spending, $2.8 billion of net cash paid in connection with our acquisitions of PBG and PAS, and $0.9 billion of cash paid in connection with our manufacturing and distribution agreement with DPSG. We also paid $0.5 billion to acquire WBD American Depositary Shares in the open market.
In 2009, net cash used for investing activities was $2.4 billion, primarily reflecting $2.1 billion for capital spending and $0.5 billion for acquisitions.
Subsequent to year-end 2010, we paid $0.2 billion to acquire WBD American Depositary Shares in the open market. We also spent approximately $3.8 billion to acquire approximately 66% of WBDs outstanding ordinary shares, increasing our total ownership of WBD to approximately 77%. In addition to these transactions, we expect to incur an additional $1.4 billion of investing cash
59
outflows in connection with our intended purchase of the remaining outstanding WBD shares, funded primarily through existing international cash.
We anticipate net capital spending in 2011 of about $3.7 billion, which includes about $150 million of capital spending related to the integration of PBG and PAS, as well as capital spending related to our acquisition of WBD. Management Operating Cash Flow We focus on management operating cash flow as a key element in achieving maximum shareholder value, and it is the primary measure we use to monitor cash flow performance. However, it is not a measure provided by accounting principles generally accepted in the U.S. Therefore, this measure is not, and should not be viewed as, a substitute for U.S. GAAP cash flow measures. Since net capital spending is essential to our product innovation initiatives and maintaining our operational capabilities, we believe that it is a recurring and necessary use of cash. As such, we believe investors should also consider net capital spending when evaluating our cash from operating activities. Additionally, we consider certain items (included in the table below), in evaluating management operating cash flow. We believe investors should consider these items in evaluating our management operating cash flow results.
60
61
SWOT ANALYSIS
Strengths The company has strong background established since 1903 as Pepsi Cola. Pepsi has been marketing its products in a strong way. Well known brand in the world Good sales and profit figures. Increase in mineral water and fresh juices market share. It has broader products width. Strong distribution channels. Pepsi sponsor number of sports event e.g. National Football League, National Hockey League and Major League Baseball. Pepsi also sponsors Major League Soccer. Weaknesses Differences among the employees on basis of racism. Facing strong competition in mineral water market from Nestle. Pepsi is far away from Coca Cola as far as financials and brand image is concerned. Opportunity Growth in mineral water segment. Food products should be promoted in untapped areas. Launch health drinks in India to improve the brand image in the eyes of customers Joint ventures Focus on social responsibility and sponsoring events.
62
Threats Food and beverages industry is mature. Pepsi was blamed in multiple occasions for excess percentage of pesticide in their products. People are more health conscious so they prefer healthy drinks and juices. Ongoing recession in majority of countries. Random Currency fluctuation Political instability and tax policies. Pepsi is competing with major competitors in various segments such as Coca cola in beverage, nestle in water and Kraft foods. Company majority of sales are dependent on few products which is major risk. Entry of new entrants Coca Cola outsells Pepsi in US Market.
63
64
General Information
daughter and company vice-chairperson, Meher Pudumjee. Anu has since remained on company's Board of Director ]and involved in social work.
She is an Indian businesswoman and social worker, who led Thermax Ltd., the Rs 3246-crore energy and environment engineering major, as its chairperson 1996-2004.She had figured among the eight richest Indian women, and in 2007 was part of 40 Richest Indians by net worth according to Forbes magazine.
Why did we take Ms. Anu Aga? Ms. Anu started her career in Thermax in 1985 and later headed its human resources division, 1991 to 1996, when after the death of husband, Rohinton Aga, she took as Chairperson, Thermax, finally retiring in 2004 succeeded by her daughter and company vice-chairperson, Meher Pudumjee. Anu has since remained on company's Board of Directors, and involved in social work.
65
What position is Ms. Anu aga now in Thermax? After her husbands death Thermaxs growth curve dipped and share prices plummeted from Rs 400 to Rs 36. An anonymous letter from a shareholder accusing her of letting him down forced her to take stock of the situation. I realised I wasnt capable but was only pretending to run the business, she says. Losing no time, she detached herself from day-to-day operations and brought in a foreign consultant to restructure the company the move revived its fortunes. Ms. Aga was the Chairperson of Thermax, the Rs. 3246 crore leading Indian player in energy and environment management. She was instrumental in turning around the company and bringing it to its growth path. Ms. Aga retired in 2004 and is a Director on the Board of Thermax. Since retiring, Mrs. Aga has chosen to focus on education for the underprivileged. She is closely involved with Akanksha, an NGO which supplements the educational needs of the slum children. In partnership with Pune Municipal Corporation and Akanksha, Thermax Foundation has adopted two municipal schools in Pune. She is on the Board of Teach for India, an initiative that attempts to bridge the inequity gap in education.
What was the process to come at Chairpersons position? The year 1996 marked the beginning of the reinvention of Anu Aga. Her husband, Rohinton Aga, passed away suddenly, leaving Thermax, the company he transformed from a small boilermaker into a leader in energy and environmental solutions, in Anus hands. This was a crucial period for Thermax as the company was in the midst of going public. A mere 14 months later, Anus 25-year-old son Kurush died in a fatal car crash. If this wasnt enough to bring Anu Agas life to a shuddering halt, Thermax began to unravel at its seams. The culture that Rohinton Aga had built within Thermax apparently couldnt deal with the complexities of an unplanned succession. A host of diversifications into
66
other areas such as co-generation of power, finance and software either went belly up or began to flounder. Also, industries that relied on Thermaxs products such as capital goods and textiles began to see a downturn, further affecting the companys revenues even as costs were increasing. The companys market cap nosedived from Rs 990 crore in 1996 to Rs 186 crore in 2000. Today, Anu Aga is a poster woman for Indian entrepreneurs and worth a whopping $1.1 billion, according to Forbes magazine. Thermaxs turnover has ballooned to more than Rs 3,246 crore. Its offices are sprawled across the globe in China, the UK and the US as demand for its heating, waste heat recovery and waste water solutions has been robust. From an abysmal Rs 13 crore loss in 2001, Thermax posted a net profit of more than Rs 250 crore in 2008.
She did her B.A. in Economics from St Xavier's College, Mumbai, and post graduation in medical and psychiatric social work from the prestigious Tata Institute of Social Sciences(TISS), Mumbai. She had also been a Fulbright Scholar and studied in the United States for four months.
How could Anu Aga accomplish all of this, especially in the face of such overwhelming tragedy? Aga turned to Vipasana meditation after her sons death, which gave her the courage to pick up the pieces and move on. Aga had originally joined Thermax in 1985 as an HR head, but didnt have much of a role in the operations of the company. My corporate life lasted only 20 years, says the 65-year-old Aga. I never intended to work in the company; I was interested
67
in social sciences and ended up in the corporate by default. Nevertheless, she had to galvanise herself into action. Aga sacked the entire board including daughter Meher Pudumjee replacing them with fresh members in an effort to turn the culture of the company around. She pruned employees, cut unnecessary investments in non-core businesses and hired the Boston Consulting Group to restructure the company.
Despite her legendary success with Thermax, Anu Aga has always harboured another passion inspired by Kurush. For the past two years, education has become my priority, she says. This is where the company can make a difference, and it was my sons wish that I did something for children.
Anu Aga of Thermax India Awarded the Padma Shri Anu Aga, the ex-Chairman of Thermax India has been awarded the Padma Shri. Her name featured on the list of awardees announced by the Government on the occasion of Republic Day 2010.
Mergers and Acquisitions Thermax Acquires Denmark-Based Boiler Maker Danstoker Thermax Limited has acquired Danstoker A/S, a leading European boiler manufacturer, and its German subsidiary, Omnical Kessel- und
Apparatebau Gmbh. The acquisition valued at US$40 million will play a key role in Thermax's plans for growth in the European energy market.
68
Vision
To be a globally respected high performance organization offering sustainable solutions in energy and environment.
Mission
We aspire to become a leading technology company with a global outlook delivering world-class products and services to customers. We exist to fulfill the needs of our customers best understood through an enlightened partnership with him.
Our challenge is to continually expand and define new markets by expanding the frontiers of research and engineering and customer
69
Acquisitions
2010, Thermax acquired European boiler manufacturer
In
November
Danstroker A/S, and its German subsidiary, Omnical Kessel for Euro 29.5M.
Structure
It has four main offices
Thermax (Europe) Ltd is based in Fenny Stratford, Milton Keynes in England (not far from IKEA).
Thermax Inc - based in Northville, Michigan, USA Thermax do Brasil Energia e Equipamentos Ltda - Brazil Thermax (Zhejiang) Cooling & Heating Engineering Co - China
Cooling and Heating (C & H)division. Boilers and Heaters (B & H)division. Power division. Enviro division. Chemical and Water division. Solar energy division.
70
Products
The main company makes absorption chillers used for large air conditioning systems. The joint venture with Babcock & Wilcox makes B&W-licensed boilers for circulating fluidised beds and HRSGs.
Provide quality education to the underprivileged children. Create an environment that respects the communities and the natural environment. As a signatory to CIIs initiative on affirmative action, work to achieve the defined objectives.
Involve and encourage employees and their families to participate in the various social initiatives of the company.
71
1966 to 1986
Wanson India starts operations in Pune, manufacturing small coil-type packaged boilers (Vaporax), in collaboration with Wanson, Belgium.. Wanson India becomes Thermax Pvt Ltd. Conserving energy, preserving the environment was adopted as the corporate vision.
R D Aga appointed Chairman and Managing Director of Thermax Pvt Ltd. In 1981
1987 to 2006
The company forms the joint venture Thermax Babcock & Wilcox Ltd. Combined Heating and Power Group (CHAP) is formed which later became the Cogen division. Tata McGraw-Hill publishes R D Agas book Changing the Mindset Reflections of a Chief Executive.
19 Feb 1996 - Anu Aga is appointed as Executive Chairperson. June - Thermax acquires boiler company, M E Engineering Ltd, in UK. In March 2001, Thermax starts subsidiary company, Thermax Inc, in the US.
April 2002 - Thermax gets ISO 14001 certification for its chemical plant at Paudh.
In March 2003 - Anu Aga honoured with Lifetime Achievement Award by Financial Express/Electrolux.
In 2004 Anu Aga retires as Chairperson and Meher Pudumjee takes over. Thermax among the 20 Indian companies featured in the Forbes Asia List of Asias Best under a Billion companies.
72
Thermax won the Enertia Award 2009 for setting up the state-of-the-art manufacturing facility for boilers and allied equipment at Savli, Gujarat. The award was given in the 'Manufacturing power generation equipment and related auxiliaries' category.
awards for
safety performance and environment management from the Greentech Foundation. The plants of Golden Peacock its Boiler & Heater business also won the
Institute of Directors.
Excellence for
'Exemplary Employee Engagement in Total Productive Maintenance' from the Kaizen Institute in February 2010 At CII's (Western Region) HR Awards for Excellence 2008.
73
PRODUCTION DEPARTMENT
From our experience of over three decades in the energy sector, we offer a range of boilers and thermal oil heaters, energy chillers and customized products like exhaust gas boilers. Thermax absorption chillers have found a niche in green energy systems in Europe and Australia. We also help industries reduce energy costs by shifting to abundantly available, alternate energy such as biomass. Industry-specific Solutions Clean and Green
Thermax provides industries with clean technologies that recover pollutants; thereby reducing their hazardous impact on the environment. Today, many iron & steel, cement, fertilizer and chemical industries reduce emissions using our air pollution control systems. Industries in the US and Japan consistently use our hi-grade ion exchange resins for specialised applications
Our project management capabilities extend to setting up energy-environment projects for customers in several markets. This is backed by a robust and innovative R&D setup, involved in technology development and adaptation for various industrial applications.
74
Board of Directors
Meher Pudumjee took over as Chairperson of Thermax Limited on October 5, 2004, after the retirement of Anu Aga. A Postgraduate in Chemical Engineering from the Imperial College of Science & Technology, London, Meher joined Thermax.
M S Unnikrishnan, took over as Managing Director on July 1, 2007. Earlier, as Executive Vice President, he was head of the company's project business, viz. captive power, boilers & heaters and air pollution control.
Anu Aga, after retiring as Chairperson of Thermax in October 2004 continues as Director on the Company's Board of Directors. She began her career in Thermax in 1985 and later was in charge of the Company's human resources function from 1991 to 1996. She took over as the Chairperson of the Thermax Group in February 1996, after her husband Rohinton Aga passed away.
Confederation of Indian Industries (CII) and has served as the Chairperson of CII's Western Region. She has written extensively and given talks on the subjects of corporate governance, value-based management and on corporate social responsibility.
75
The CSR programme of the company got a formal structure and a governing body when the Thermax Social Initiative Foundation (TSIF) was formed in March, 2007 as a not-for-profit body registered under Section 25 of the Companies Act. Convinced that education can be the best enabler to come up in life, the Foundation has decided to primarily focus on initiatives in this crucial area.
Provide quality education to the underprivileged children. Create an environment that respects the communities and the natural environment. As a signatory to CIIs initiative on affirmative action, work to achieve the defined objectives.
Involve and encourage employees and their families to participate in the various social initiatives of the company. Says Anu Aga, Director and former Chairperson, I would like our company to play a bigger role in community affairs with complete adherence to the tenets of good corporate governance. We will actively commit ourselves to initiatives that can help improve the quality of life of the communities in which we live and work.
76
Corporate Governance
Thermax adheres to high standards of corporate governance. Through its corporate governance measures, the company aims to maintain transparency in its financial reporting and keep all its stakeholders informed about policies, performance and development. Stakeholder confidence is sustained by adopting and continuing good practices, which is at the heart of effective corporate governance.
The key elements in the company's corporate governance practice are transparency, disclosure, supervision and internal controls, risk management, internal and external communications and high standards of safety, accounting fidelity, product and service quality. The company's board has empowered responsible persons to implement its policies and guidelines and has set up adequate review processes.
Thermax is a Public Limited Company. Its equity shares are listed on two stock exchanges The National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).
77
FINANCIAL DEPARTMENT
3157
2137
1465
916
564
514
440
1008
929
533
368
265
201
232
1163
1087
600
368
227
150
145
Net assets
current (155)
(158)
(67)
38
51
88
Equity Capital
Share 24
24
24
24
24
24
24
Preference share 0 capital $ Reserves Surplus Net worth Loan funds 736 0 and 712
555
450
332
312
340
324
579 0
474 0
355 0
335 0
356 0
333 11
78
PARTICULARS 2009-10
20082009
Total income
3235.23
3303.17
Profit before interest, depreciation, tax and extraordinary items Interest & depreciation Profit before tax & before extraordinary items Extraordinary items of expenses / (income) Provision for taxation (incl. deferred tax) Profit after tax & extraordinary items Balance carried forward from last year Profit available for appropriation (cumulative) Proposed equity dividend Tax on dividend Transfer to general reserves Surplus carried forward Profit After Tax (PAT)
433.88
453.23
41.94 391.94 114.86 135.64 141.44 548.00 689.44 59.58 9.90 14.20 605.76
35.38 417.85 (1.36) 131.91 287.30 359.20 646.50 59.58 10.12 28.80 548.00
Expenditure on R&D
a. Capital b. Recurring c. Total : : : Rs. 1.3 crore Rs. 12.9 crore Rs. 14.2 crore
Summary
This woman became the Chairperson of Thermax Engineering after the death ofher husband Rohinton Aga. The companys condition was critical at that time. Its share price dipped to Rs. 36 from Rs. 400. Anu Aga, the then Director of Human Resource, Thermax, was compelled to take charge of the company. In order to make the company profitable, she brought a consultant fromabroad and restructured the company. The strategy worked and the company saw profit again. She stepped down from the post of chairperson in 2004. Now, she spends most of her time in social activities. Bombay Management Association awarded her Management Woman Achiever of the Year Award 2002 2003. After retiring from Thermax, she took to social work, and 2010 wasawarded the Padma Shri (Social Work) by Govt. of India.
80
81
Kiran Mazumdar-Shaw (Born: March 23, 1953) is an Indian businesswoman and founder of Biocon, the biotechnology company based in Bangalore (Bangaluru), India. She is the Chairperson and Managing Director of Biocon Limited, and Chairperson of Syngene International Limited and Clinigene International Limited.
She started Biocon in 1978 and spearheaded its evolution from an industrial enzymes manufacturing company to a fully integrated bio-pharmaceutical company with a well-balanced business portfolio of products and a research focus on diabetes, oncology and auto-immune diseases. She also established two subsidiaries: Syngene (1994) to provide development support services for discovery research and Clinigene (2000) to cater to clinical development services.
Her pioneering work in the sector has earned her several awards, including the prestigious Padma Shri (1989) and the Padma Bhushan (2005) from the government of India.She was recently named among TIME magazines 100 most influential people in the world. She is also on the Forbes list of the worlds 100 most powerful women, and the Financial Times top 50 women in business list.
Born in Bangalore, Kiran Mazumdar-Shaw completed her schooling from the citys Bishop Cotton Girls High School (1968). She wanted to join medical school but instead took up biology and completed her B.Sc Zoology Honors course from Bangalore University (1973). She later did her post-graduation in Malting and Brewing from Ballarat College, Melbourne University (1975).
82
Why did we take Dr.Kiran mazmudar? Kiran Mazumdar Shaw started her professional career as trainee brewer in Carlton & United Beverages in 1974. In 1978, she joined as Trainee Manager with Biocon Biochemicals Limited in Ireland. In the same year, Kiran Mazumdar Shaw founded Biocon India in collaboration with Biocon Biochemicals Limited, with a capital of Rs.10,000. She initially faced many problems regarding funds for her business. Banks were hesitant to give loan to her as biotechnology was a totally new field at that point of time and she was a woman entrepreneur, which was a rare phenomenon.
What position is Ms. Kiran mazmudar in Biocon? Kiran Mazumdar-Shaw is an Indian businesswoman and founder of Biocon, the biotechnology company based inBangalore (Bangaluru), India. She is the Chairperson and Managing Director of Biocon Limited, and Chairperson of Syngene International Limited and Clinigene International Limited.
In 1978, she joined Biocon Biochemicals Limited, of Cork, Ireland as a Trainee Manager. In the same year she started Biocon in the garage of her rented house in Bangalore with a seed capital of Rs. 10,000. Initially, she faced credibility challenges because of her youth, gender and her untested business model. Not only was funding a problem as no bank wanted to lend to her, but she also found it difficult to recruit people for her start-up. With single-minded determination she overcame these challenges only to be confronted with the technological challenges associated with trying to build a biotech business in a country facing infrastructural woes. Uninterrupted power, superior quality water, sterile labs, imported research equipment, and advanced scientific skills were not easily available in India during the time. Never one to
83
give up easily, she took the challenges in her stride and worked within the limiting circumstances to take Biocon to newer and greater heights.
She is responsible for steering Biocon on a trajectory of growth and innovation over the years. Within a year of its inception, Biocon became the first Indian company to manufacture and export enzymes to USA and Europe. In 1989, Biocon became the first Indian biotech company to receive US funding for proprietary technologies. In 1990, she upgraded Biocons in-house research program, based on a proprietary solid substrate fermentation technology. The commercial success of this program led to a three-fold expansion by 1996 and Biocon entered the biopharmaceuticals and statins segments. In 1997, she undertook initiatives in human healthcare through a dedicated manufacturing facility.
Who are the persons behind Ms. Kiran mazmudar? For a woman to rise in the workplace, a supportive husband and family are a prerequisite. While it is true that she was single when she built Biocon, the real growth came when she got married, and her husband has played a vital role in their success today. They balance and complement each other: she is a scientist and he has a strong financial background. Men need to be emotionally secure and should not get a complex with successful partners. Her husband is a very strong and secure human being. She is a most fortunate to have such an understanding partner. Her husband has invested in her in every way, and inspires her every day to build a company that will be a torchbearer for Indian biotechnology.
84
Why she get success? She is quoted as saying, Success is about pursuing a vision with a sense of purpose and a spirit of challenge. There are no short cut to success and there is no substitute for hard work. I also believe success is about doing things in a differentiated way - dare to be different so that you stand out. Biocon's byline is The difference lies in our DNA and we all believe in it. We don't imitate other companies but have charted our own business destiny.
Her principle for life Do not make judgment on things, people, and issues with half information Listen to the little drummer in you who keeps saying break free, become large, build something memorable.
Biocons mergers and acquisitions Biocon Ltd intends to acquire SIRO Clinpharma Pvt Ltd
Biocon Ltd acquires IDL Specialty Chem-API Bus from Gulf Oil Corp Ltd
Novozymes South Asia Pvt Ltd acquires Biocon Ltd-Enzymes Business from Biocon Ltd
85
Her leadership style The Success mantra is Listen to the little drummer in you who keeps saying break free, become large, build something memorable. Strategy: Leadership is about approaching opportunity through strategy.
Motivation: Motivating Oneself Motivating others Mission or vision All leaders need not be visionaries and all visionaries need not be leaders. There can be a leader without vision but there cant be a leader without mission. A Leaders Mission : To inspire people To help them share aspirations and ideas Situational leader A Devastating situation Personal Vs Professional Life Biocon was busy negotiating with Danish firm Novozymes for the sale of its enzymes business. Her husband John Shaw was diagnosed with a cancerous lump in his kidney. Kiran not just tended to her husband in hospital, but also made all the strategic decisions needed for the deal.
86
Charismatic Leadership The Most Influential in Bio-business person (outside Europe and USA) Articulates the vision Sets the high performance expectations Conveys a new set of values Motivational Leader A great motivational leader in terms of both motivating herself as well as her employees Inspired by India's software success story. This motivated her to set up Syngene. Transcendental Leader Doing the IMPOSSIBLE Surface courage from FEARS Touching the UNTOUCHABLES Understanding the inarticulate needs Strong commitment to goals She transcended the boundaries of self and her business. All leaders should be passionate about their sense of purpose Motivating Oneself Motivating Troops Choosing the Right People Customer Focus Most Admired Companies How the Road Ahead Looks
87
"Our ability to continuously scale new heights across the biopharmaceutical value chain enables us to realise the promise of future therapeutics." -Kiran MazumdarShaw, Chairman & Managing Director
Biocon is a fully integrated healthcare company that delivers innovative biopharmaceutical commercialisation, solutions. we have From the discovery to development cost-effective and drug
defining
science,
development capabilities and significant manufacturing capacity to move ideas to market. Leveraging Indias globally competitive cost base and exceptional scientific people resource, we are advancing our in-house R&D programs, while also providing custom and clinical research services to international pharmaceutical and biotechnology majors through our subsidiary companies, Syngene and Clinigene. Biocon has rapidly developed a robust drug pipeline, led by monoclonal antibodies and several other molecules at exciting stages in the
biopharmaceutical value chain. With the successful commercial launch of our first anti-cancer drug and several promising discovery partnerships in the clinic, we remain committed to scaling new heights in frontier science and achieving new milestones in affordable medicine.
88
GENERAL INFORMATION
BUSINESSES MODEL
Biocons fully integrated business model spans the entire drug value chain, from pre-clinical discovery to clinical development and through to commercialisation. Our businesses in custom research (Syngene), clinical development (Clinigene) and biopharmaceuticals (Biocon) provide multiple revenue streams to balance risk, drive innovation, deliver products and accelerate growth. As we increase the complexity and scope of our own R&D and manufacturing operations, especially in new product discovery and development, we believe our custom and clinical research services will continue to offer important synergies.
89
Mission
To be an integrated biotechnology enterprise of global distinction. Essential to this mission is excellence in: - Intellectual asset creation through discovery, research and development
- State-of-the-art manufacturing capabilities - Internationally benchmarked quality and regulatory systems - New medical insight through disease specifi clinical research - Customer relationship through outstanding products and services - Human resource development through training, mentoring and empowering Intellectual Profile of 5300+ Personnel
Biocon, Syngene and Clinigene together employ approximately 5300 qualified personnel - from biologists, chemists, medical practitioners, pharmacologists, engineers, finance/legal/marketing analysts, HR generalists to general
administrators. 6% of our employees have PhD degrees, 45% have a master's degree in science and the remaining are graduates with a bachelor's degree in science, commerce or arts. 13% of Biocon employees are women (across the group). The employee attrition for Q2 2010-11 was 5.6% and last year it was over 20%. The average age of the employee is 29 years.
90
Milestones
- Biocon
is
India's
first
biotechnology
company,
established
in
1978
- Biocon is India's first biotechnology company to export microbial enzymes to USA and Europe
- Biocon is the first biotechnology company to receive ISO 9001 certification in India
- Syngene, a Biocon subsidiary, is India's first custom research company in drug discovery
- Biocon is the first Indian company to be approved US FDA for the manufacture of lovastatin, a cholesterol-lowering molecule
- Biocon's proprietary bioreactor, the PlaFractor, receives a US patent - Biocon and Bayer join hands to create awareness for self diabetics, 2010 monitoring for
- Syngene and Endo Pharmaceuticals, USA to jointly discover novel biological drug molecules to fight cancer, 2010
and develop
- Biocon acquires stake of its Cuban partner CIMAB S.A. in their seven year old JV, Biocon Biopharmaceuticals Pvt. Ltd, 2010
91
PRODUCTION DEPARTMENT
PRODUCTS Biopharmaceuticals Active Pharmaceutical Ingredients (APIs) Biologicals Branded Formulations Oncology Dosage Forms Services Licensing Biocon collaboratively develops MAbs (Monoclonal Antibodies) and other novel drug delivery systems-based proteins either in-house or in partnership with other companies.
Contract Manufacturing Biocon leverages its India cost base together with its extensive expertise and technology platforms to offer competitive, high quality, custom manufacturing services to a global clientele.
92
Quality Biocon follows good manufacturing, laboratory and documentation practices that ensure consistent high quality results. Our state-of-the-art analytical facilities monitor and maintain strict quality of our products, processes and services, consistently meeting, USP and other national and international quality standards. Biocon's quality chain covers three key functional areas: - Quality Control - Quality Assurance - Regulatory Affairs Quality Control (QC) is responsible for all analyses undertaken at Biocon. From analytical support during product development and validations to training Biocon customers, QC is supported by a highly qualified team of professionals. Regulatory Affairs ensures compliance with national and international
regulatory requirements.
93
An organisation is as dynamic and effective as its people. At Biocon, the vast experience of our distinguished Board of Directors and the strategic focus of the Key Management Team steer us towards our goals. They are amply supported by a 3000-strong team of exemplary bioscientists, engineers and business managers who build our intellectual capital and drive our growth.
Key Management Team Ms. Kiran Mazumdar-Shaw -Chairman & Managing Director Founder Entrepreneur, 1978 Mr. John Shaw - Vice Chairman with Biocon since 1999
Dr. Arun Chandavarkar - Chief Operating Officer, Biocon with Biocon since 1990 Mr. Peter Bains - Chief Operating Officer, Biocon with Biocon since 1990
94
Marketing Department
Biocon continues to grow its product presence in India while broadening its footprint to emerging and developed.Our developed market foray is lead by our highly successful German subsidiary AxiCorp. Leveraging AxiCorps well established marketing and distribution network, we are making good progress in preparing a range of pharmaceuticals including generics, biosimilars tive biologics for Germany and eventuallyother EU markets.NeoBiocon, our JV based in Dubai,represents Biocons emerging market thrust. Through NeoBiocons marketing expertise, we have already made inroads into the highly promising UAE market emerging markets as key growth ened our presence in markets like Brazil,Mexico, Chile, and many countries in the Middle East and Africa this year.Biocons India strategy is reaping rich reward as we continue to focus on leadership in key therapies within the domestic branded formulations segment. By building large brands, entering more therapeutic areas and productions each year, Biocons healthcare to millions of patients across the country. Corporate Structure
The Biocon Group's corporate structure comprises of Biocon Limited (the Holding Company) and its five subsidiaries, Syngene International Limited, Bangalore; Clinigene International Limited, Bangalore; and AxiCorp GmbH, Germany. The Biocon Group also has one joint venture company - Biocon Biopharmaceuticals Private Limited, Bangalore and Biocon Research Limited, NeoBiocon FZ LLC, Abu Dhabi.
95
FINANCE DEPARTMENT
"We are committed to delivering value to all our stakeholders. By leveraging our proprietary products and technologies we will achieve robust growth and sustained financial performance." - Murali Krishnan K.N, President, Finance
Here, we feature comprehensive information on all aspects of the Company that concern and interest the investor. From access to financial data, stock quotes, FAQs and more, we give our existing and potential investors all relevant data and updates on corporate governance and the overall progress of the company.
2005 Sales
2006
2007
2008
2009
2010
1372 2036 -
66
237
332
Total
Other Income
15
36
64
37
96
Total Revenues
Expenditure
1285 1896
10
18
17
22
29
67
94
110
140
Total
1413 2053
260
352
Income Tax
18
31
17
13
12
49
Profit Operations
From
240
303
239
(147) -
Net Profit
93
293
97
BALANCE SHEET
2005
2006
2007
2008
2009
2010
50 691
50 838
50 1019
50 1434
100 1411
100 1658
1 23
3 30
-1 44
-7 46
25 47
34 51
49 27 841
68 37 1026
74 113 1299
578 0 235
827 0 100
915 51 79
1042 28 475
74 183 3
110 224 2
161 306 9
179 259 10
319 367 12
98
17
24
53
87
94
134
Current Liabilities
249
261
275
300
437
580
841
1026
1299
1778
2106
2356
FUTURE OUTLOOK
"We aim to develop novel biopharmaceuticals by leveraging our exceptional scientific talent pool and developmental capabilities."
99
SUMMARY
"Our ability to continuously scale new heights across the biopharmaceutical value chain enables us to realise the promise of future therapeutics." -Kiran MazumdarShaw, Chairman & Managing Director Biocon is a fully integrated healthcare company that delivers innovative biopharmaceutical commercialisation, solutions. we have From the discovery to development cost-effective and drug
defining
science,
development capabilities and significant manufacturing capacity to move ideas to market. Leveraging Indias globally competitive cost base and exceptional scientific people resource, we are advancing our in-house R&D programs, while also providing custom and clinical research services to international pharmaceutical and biotechnology majors through our subsidiary companies, Syngene and Clinigene.
100
101
She is one of the most prominent personalities of the corporate world. She is making a constant effort to beautify the skin of people with her beauty products. She has been continuously striving hard to slow down the aging process and nourish the skin of people and thus make them look younger than their age. Well, we are talking about none other than the ruler of the beauty world, Shahnaz Hussain. In this article, we will present you with the biography of Shahnaz Hussain.
She comes from a royal Muslim family and her father was a very powerful man. She did her schooling from the Irish convent. Since a very young age, she had an interest in poetry and English literature. She grew up in a traditional family, but was privileged to receive modern education. She got married, when she was only fifteen years old. The next year after her marriage, she became a mother.
When she went to Teheran along with her husband, she developed a keen interest in beauty treatments. Eventually, she decided to study the cosmetology course. She wanted to be self independent and so she began writing articles for the Iran Tribune on varied subjects. While pursuing studies, she learnt about the harmful effects of chemicals on human body. She studied Ayurveda.
After leaving Teheran, she took an extensive training in cosmetic therapy for a long period of 10 years from the leading institutions of London, Paris, New York and Copenhagen. She returned to India in the year 1977 and established her first beauty salon in her abode. Unlike other salons, she did not use chemical cosmetics. Rather, she made use of Ayurvedic products that are absolutely safe on the human body. She has ushered an era of herbal cosmetics. The products launched by her Company head their way to leading global stores such as Blooming Dales (New York), Harrods and Selfridges (London), Seibu (Japan).
Her beauty products are very skin friendly and give a beautiful glowing look. She has not only been able to tap the markets of India, but made her presence felt in
102
international market too. Now, her aim is to set her foothold in the space. People who go to space usually suffer from skin problems. At present, Shahnaz Hussain is focusing her attention on creating products that can prove to be beneficial for the astronauts. To know the complete life history of Shahnaz Hussain, read on.
Her company Shahnaz Hussain Herbals has witnessed tremendous growth throughout these years. She has launched more than 400 different kinds of beauty products. In the contemporary times, people are becoming more and more conscious about the way they look.
Shahnaz Husain, the woman who had the burning desire to recapture an ancient heritage and make it relevant to modern demands, the woman with relentless determination, courage and a crusaders zeal, is rightly honored as the most successful Indian entrepreneur, as she markets the most sought after product in the world; which is 'beauty'. All her products are sold as hot bread all around the globe. She claims that she does not cell mere cosmetics but it is the rich Indian civilization that is marketed by her. It is high time for every woman to be grateful to Shahnaz Husain for it is only this women who wipes away the wrinkles from your faces, it is she who helps you to look like in 20s when you are in 50s, and it is only she who makes you farer than a European women when actually your complexion exactly matches a coal piece.
103
Shahnaz Husain, CEO of Shahnaz Herbals Inc, is a prominent Indian female entrepreneur best known for her herbal cosmetics, particularly skin
care products. Currently, the Shahnaz Husain Group has over 400 franchise clinics across the world covering over 138 countries. He.She has been awarded the Padma Shri, a civilian award by the Government of Indiain 2006, and Success Magazine's "World's Greatest Woman Entrepreneur" award in 1996.
After leaving Teheran, she took an extensive training in cosmetic therapy for a long period of 10 years from the leading institutions of London, Paris, New York and Copenhagen. She returned to India in the year 1977 and established her first beauty salon in her Home. Unlike other salons, she did not use chemical cosmetics. Rather, she made use of Ayurvedic products that are absolutely safe on the human body. She has ushered an era of herbal cosmetics. The products launched by her Company head their way to leading global stores such as Blooming Dales (New York), Harrods and Selfridges (London), Seibu (Japan), Galleries Lafayette (Paris), and La Rinaeccente (Milan).
Her company Shahnaz Husain Herbals has witnessed tremendous growth throughout these years. She has launched more than 400 different kinds of beauty products. In the contemporary times, people are becoming more and more conscious about the way they look. It is here that Shahnaz Hussain comes
104
to play a major role by providing people with products that can bring the glow back to their skin.
Her education
She did her schooling from the Irish convent. Since a very young age, she had an interest in poetry and English literature. She grew up in a traditional family, but was privileged to receive modern education. she took an extensive training in cosmetic therapy for a long period of 10 years from the leading institutions of London, Paris, New York and Copenhagen .
She is one of the most prominent personalities of the corporate world. She is making a constant effort to beautify the skin of people with her beauty products. She has been continuously striving hard to slow down the aging process and nourish the skin of people and thus make them look younger than their age. Well, we are talking about none other than the ruler of the beauty world, Shahnaz Hussain.
Her company Shahnaz Husain Herbals has witnessed tremendous growth throughout these years. She has launched more than 400 different kinds of beauty products. In the contemporary times, people are becoming more and more conscious about the way they look. It is here that Shahnaz Hussain comes to play a major role by providing people with products that can bring the glow back to their skin.
Company Profile
105
The Shahnaz Husain Group is India's leading company in the field of natural beauty and anti-aging treatments. Started in the 1970s by Shahnaz Husain in New Delhi, the group has over time vertically integrated to encompass every aspect of Ayurvedic care and cure. The group has activities as diverse as beauty training institutes, growing of its own herbs to manufacturing of its cosmetics line to retail to specialized treatments through its chain of over 200 beauty centers worldwide. The group has received many an accolade, the most recent of which was when it's Chairperson, Shahnaz Husain, won India's highest honor, the Padma Shree, in the field of Industry and trade for bringing Ayurveda to the West. In 1996 Success Magazine, one of the worlds most well-respected business publications, named Shahnaz Husain the Woman of the Year and estimated the brand's worth at over $100 million. This number has grown many times since then. We remain a completely private company, with no outside shareholders.
INTERNATIONAL BUSINESS
Shahnaz Husain products are exported worldwide. During the last three decades, we have acquired a tremendous global presence, having sold at prestigious stores, like Galeries Lafayette (Paris), Harrods and Selfridges (London), the Seibu chain in Japan, Bloomingdales (New York), La Rinascente in Milan (Italy), as well as exclusive outlets and clinics all over the world. While we have exclusive partners in certain regions, we are actively seeking business partners in most parts of the world.
Products
106
1) Diamond Range 2) Chocolate Range 3) Saffron Range 4) Slimming Range 5) Gold 6) Pearl 7) Herbal 8) Hair Care 9) Sun collection 10) Cosmetics 11) Man Power Range 12)Himalaya Range
Training Institutes
107
Over the last three decades, Shahnaz Husains Beauty Institutes have remained committed to excellence in vocational training in beauty by offering professional courses of the highest order, tailored to suit the changing demands of the beauty business. Students have the benefit of theoretical approaches in skin and hair health, body care, as well as the latest techniques in practical skills. They enable students to obtain professional qualifications, in keeping with international standards, opening up a vista of career opportunities. The following courses are available at Shahnaz Husain:
Diploma in Beauty Therapy Post Graduate Diploma - Skin and Beauty Therapy Short-Term Vocational Courses
The Shahnaz Husain Group runs the largest chain of beauty parlors in the country. We currently have over 200 franchisees, for both our parlors as well as our training institutes. Our unique approach to beauty has made our parlors the most successful in the country. Requirements of becoming a franchisee
A commitment to excellence Entrepreneurial spirit Financial stability A passion to succeed. An investment capability of Rs. 20 lacs
Their Support
Equipment Site Selection. Project Management Layout & Interiors planning. Recruitment & Training. Interiors planning. Launch Planning. Marketing communications. (National & Local area) IT / Software support. Standard Operating procedures. Treatment consumables at competitive rates. Trouble shooting and hand holding Financing support through our tie-up with SBI
Nehru Place, New Delhi - 110019 India Phone: + 91 11 26468301-10 Fax: +91 11 26468310
Summary
110
Shahnaz Husain is both the pioneer and the undisputed queen of herbal care in India. Thirty-four years ago Shahnaz dreamt of pioneering the Indian herbal heritage and Ayurveda, taking them far beyond the boundaries of her country and achieving the kind of international acclaim that has surpassed her wildest dreams. Today, she heads an organization that is the largest of its kind in the world, with an integrated system of an international salon chain, supported by product ranges. Shahnaz belongs to a royal family, who originally came from Samarkhand and later held prominent positions in the royal governments of Bhopal and Hyderabad, during the pre-independence days. It is also a family of eminent legal luminaries. Shahnaz had to comply with existing traditions and entered into an arranged marriage at the tender age of 15, becoming a mother by the time she was 16. She was fortunate to have a broadminded, Oxfordeducated father, Chief Justice N.U. Beg, who put her through schooling in an Irish convent and instilled in her a love of poetry and English literature. He also imbued in her the right combination of traditional values and progressive ideas and Shahnaz learnt to love and respect the rich heritage of India. It was her extraordinary personal qualities that made her determined to emerge from a sheltered and secure life and venture into a totally different world of entrepreneurship, where she had to wage a lone battle to fulfil her dreams. When
Shahnaz returned to India, after training for 10 years in cosmetology and cosmetic chemistry, in some of the leading institutions in London, New York, Paris and Copenhagen, she started her own herbal salon for skin and hair care. Instead of following the existing salon treatment methods, she decided to adopt the principle of 'Natural Care and Cure' and to apply the Ayurvedic system and formulate custom-made products for skin and hair problems. Today, the Shahnaz Husain Group is engaged in the formulation and marketing of over four hundred Ayurvedic formulations for skin, hair and body care, which have not only become widely known, but have received unprecedented international acclaim.
111
Shahnaz became the first and only woman in 107 years to receive the World's Greatest Woman Entrepreneur Award from Success magazine of the USA. The Shahnaz Husain Group has also received several international awards for Quality, including the Global Quality Management Award for Quality Excellence and Outstanding Woman Entrepreneur 2002, in London. In September 2003, Shahnaz was selected for the prestigious Global Indian "Woman of the Millenium" Award, presented by Global Indian Congress, based in California, USA.
CONCLUSION
112
India is brimming with the success stories of women. These women leaders are assertive, persuasive and willing to take risks. They managed to survive and succeed in this cut throat competition with their hardwork, diligence and perseverance.Ability to learn quickly from her abilities, her persuasiveness, open style of problem solving, willingness to take risks and chances, ability to motivate people, knowing how to win and lose gracefully are the of the Indian women entrepreneurs. In a recent survey it is revealed that the female entrepreneurs from India are generating more wealth than the women in any part of the world. The basicqualities required for entrepreneurs and the basic characters of Indian women, reveal that, much potential is available among the Indian women on their entrepreneurial ability. This potential is to be recognized, brought out and exposed for utilization in productive and service sectors for the development of the nation.
113
A successful woman entrepreneur is confident in her ability. She is ready to learn from others, seek help from experts if it means adding value to her goals. She is optimistic and is more willing to take risks. A successful woman entrepreneur uses common sense to make sound judgements when encountering everyday situations. This is gleaned from past experience and knowledge acquired over the years. It is essential not to get frustrated and give up when you face obstacles and trials ? a part of setting up any business venture. The ability to explore uncharted territories and take bold decisions is the hallmark of a successful woman entrepreneur. A successful woman usually loves what she does. She is extremely passionate about her tasks and activities. Her high energy levels motivate her to contribute immensely towards building, establishing and maintaining a thriving business.
She is open and willing to learn A successful woman entrepreneur keeps abreast of changes, as she is fully aware of the importance of evolving changes. She is ahead of her competitors and thrives on changes. She adapts her business to changes in technology or service expectations of her clients. She is curious, interested to learn and accommodative to innovations. She is cost conscious A successful woman entrepreneur prepares realistic budget estimates. She provides cost-effective quality services to her clients. With minimized cost of operations, she is able to drive her team to maximize profits and reap its benefits.
She values teamwork and loyalty She has the ability to work with all levels of people. She is keen on maintaining relationships and communicates clearly and effectively. This helps her to
114
negotiate even sensitive issues easily. She is empathetic to people around her and possess good networking skills that help her to expand contacts and make use of opportunities.
She can balance home and work Cautious of not becoming a workaholic, a successful woman entrepreneur is good at balancing diverse aspects of life. Her multi-tasking ability combined with support from spouse and family members enables her to blend business priorities with family and household responsibilities efficiently and effectively.
She is conscious of her responsibility to society A successful woman entrepreneur is willing to share her success with the society. She is committed to help others and enjoys doing it. It is no wonder that millions of aspiring woman entrepreneurs admire Oprah Winfrey for her entrepreneurial skills, business achievements, and commitment to philanthropy. A woman can choose self-owned business as her career choice provided she is to ready to face the challenges that lie ahead of her, ready to walk the extra mile and ready to rely on her own vast resources and abilities.
Despite difficult economic times, what makes the rising trend of successful women entrepreneurs so encouraging is that most women seem to innately possess entrepreneurial traits, as shown in the table below:
115
Entrepreneurs Ambitious, innovative Open to new things, seeks out help and advice relationships, Values teamwork, communication, a good networker work Multi-tasks, delegates
The combination of historical and contemporary women entrepreneur successes and the entrepreneurial traits that women possess can only serve as further inspiration and motivation for women with a vision to succeed.
116
117