Business Today 14th January 2018 - Page 50

The Best Management Lesson I Learnt collaboration as well as for sale of their businesses, despite us not being the highest bidder in many cases. In 2010, when we sold our Indian branded gener- ics business, Abbott Laboratories, realised the value of our business built on the foundations of integrity, and hence paid us the highest multiple till date in the Indian domestic formulations business. Thus, the short-term loss we incurred by adhering to our values paid us dividends in the long term. W e took a contrarian approach and started our financial services business in 2012, at a time when the macroeconomic situation was weak. We started out with structured financing to the residential real estate industry. Through suc- cessive innovations, we expanded our product suite to provide financial solutions to a diverse spectrum of sectors from real estate to infrastructure, manufactur- ing and services. W e entered the retail housing finance market to offer our solutions to individuals as well as he way we conduct our business at Piramal small businesses. We entered into partnerships with Realty provides several instances of our com- marquee global names such as Canada Pension Plan mitment to trusteeship towards customers Investment Board and Ivanhoé Cambridge. We read and partners. The realty business in India is marred the signs of NPA distress in banks, and formed a joint by lack of transparency in various aspects, which venture with Bain Capital Credit to solve the distressed eventually result in delayed delivery of constructed financing challenges plaguing the industry today. units and disgruntled customers. In contrast to pre- In less than five years since we started, we are to- vailing market practices, Piramal Re- day one of India’s leading non-bank- alty has adopted the practice of never- ing finance players with assets under launching units for sale until it has management of more than ` 33,000 crore, and NPAs of barely 0.2 per acquired a thorough understanding cent. of the time regulatory approvals. This Has pursuit of this path of val- has resulted in loss of opportunity and ues created monetary value for the additional costs in the short term, but group and its stakeholders? I will is creating far greater trust and trans- let numbers speak. We have always parency with customers. given above par returns to our share- This trust-based approach has also holders and capital providers – ` 1 resulted in Piramal Realty becoming lakh invested in Piramal Enterprises the partner-of-choice for Indian and in 1988 would be valued at ` 21 crore global design firms, and architects, as today – a CAGR of 29 per cent, put- well as marquee global investors like ting us in the top decile of companies Warburg Pincus and Goldman Sachs. We have always by shareholder return in every time We also offer Piramal Assurance – a given above par frame – one year, three years, five buy-back guarantee, giving the cus- years and so on, in BSE 100 Index. tomer more trust in the organisation. returns to our So, values have created value, Values creating value is not restrict- shareholders and I believe will continue to do ed to our business, but also permeates and capital so. With a global workforce of over the work of Piramal Foundation. In providers – `1 15,000 people comprising more line with our purpose of Doing Well lakh invested in than 40 nationalities across di- and Doing Good, Piramal Foundation Piramal in 1988 verse businesses spanning health drives initiatives in the areas of youth would be valued care, financial services, real es- leadership and education, health care at `21 crore tate development and informa- and clean drinking water. The foun- tion management, we continue to dation today operates at scale with today focus on cascading and integrat- significant impact: the health care ing our values into our day-to-day programmes reach 70,000 lives ev- working. We have hard-wired our ery day; our education and leadership values into our formal and infor- programmes reach 550,000 school- mal mechanisms by articulating the six Piramal children; the mid-day meal scheme reaches 50,000 Success Factors as Thinks Big, Serve Customers, students daily; Piramal Sarvajal caters to 360,000 Commit and Deliver Results, Display Humility, individuals daily. We also continue to support other Collaborate, and Empower and Develop, forming organisations such as Pratham – the largest NGO in the basis for recruitment, skilling, continuous learn- primary education in India, ISKCON on their mid- ing, performance assessment and progress within day meal programme, Chinmaya Mission and Parlia- the organisation. mentary Research Services, amongst others. T ` 50 I BUSINESS TODAY I January 14 I 2018