FINANCIAL THOUGHTS : November 2013

Saturday, November 16, 2013

Difference in Approach

No one doubts the entrepreneurial ability of Lakshmi Mittal. From a small steel factory in India, he has created a blistering business career in the global steel industry.

After establishing himself abroad as the Steel Baron , in 2005 Lakshmi Mittal came to India to set up a $9 billion investment to build a greenfield steel plant with a 12 million tonnes per annum production capacity. It was his dream project in his home country India. This would have created hundreds of thousands of jobs and would have added a few basis points to the Indian economic growth. However, Indian political web was so complex that after struggling in vain till 2013 (almost 8 years) Lakshmi Mittal surrendered his wish / desire of a 12 million tonnes steel plant. As Financial Thoughts understand Lakshmi Mittal has decided not to go ahead and criticized the Indian politics and decision making system harshly.

Now let us travel half-way across the globe and see how Lakshmi Mittal is treated.

"I want to thank your CEO, Lakshmi Mittal, for investing in America and the Cleveland area,"

Obama said during his visit to the ArcelorMittal Cleveland Steel Factory in Cleveland, on 16 Nov 2013.

This year alone, the company has invested $70 million, resulting in creation of 150 new jobs. US president himself welcome and thanked Lakshmi Mittal for launching / rescuing steel mills and creating jobs.

Hope Indian politicians will learn from Obama as to how to treat business people who creates job and wealth for the nation.

Business Analytics & Success

All successful persons and businesses have mentors. As we move across business life, the element of uncertainty is high. Here lies the importance of business guidance and consulting.
We offer business consulting services
and are thrilled to see the success and growth of our Clients.

A few years back, I was employed by one of the leading MNC banks. One of the main issues the bank faced was the higher cost/income ratio compared to its peers. As part of the internal consulting team, I headed a project that resulted in centralising a few functions, leading to massive cost savings.

A friend of mine, who was a CFO, was worried about the losses of one of their group companies. Closely, working with him and primarily based on benchmarking, we found out the problems were mainly in their sourcing. A strategic action plan was put in place to solve the issues, which ensured the turnaround of the
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Recently, one of the leading companies in the UAE faced a problem - whether to expand or not. The top management and key shareholders were in disagreement. Whilst management
believed the expansion is needed, the shareholders feared overcapacity problems. We stepped in and conducted market & financial study, based on which we offered strategic solutions for growth, which were wholly heartedly accepted by both management and the shareholders.

Similarly, a leading company in the UAE approached banks/FI for credit facilities, which was turned down. Then we stepped in, prepared a detailed Information Memorandum-highlighting the strengths in banking terms- and led the negotiations with banks/ FIs. Drawing upon nearly two decades of my experience
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FINANCIAL THOUGHTS

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Saturday, November 16, 2013

Difference in Approach

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