Abstract
It is a genuine pleasure and privilege to review the book Corporate Champions—Excellent Companies of India by the author B. Karunakar. This is especially true after spending more than 25 years in the corporate world, knowing, learning and practicing a bit better from each such company I have worked for. First of all the author’s coverage of companies (not the selection of companies) like TISCL, Tata Power, M&M, L&T, SKF, Siemens, Sundaram Fasteners and Torrent Power need no introduction. But to know more about their growth strategy, growth trajectory, operational excellence, value system and correlating with their performance and concluding their success with their business model is a daunting task, though done very well by the author. There is a thin line dividing ‘Excellent’ from ‘Good’ companies, especially in an era of technology and shrinking distances. Global competition is inevitable and Indian companies have to compete with multinationals, big brands and survive in the first instance and prove their mettle to become excellent companies. The author has systematically analyzed performances of few companies on various parameters which made them different and better performers than the rest. Having worked for a corporate, I understand the pain and difficulty in collecting secondary data, which the author has done. The author has also used a case study method to arrive at a business model is very interesting and logical for arriving at conclusions.
To substantiate their findings the author has supported the same with the analysis of various research and surveys done by journals and business magazines, thus authenticating the findings further. The Business Model is described on three themes consisting of Strategy, Leadership and Execution. Basically strategy covers both external and internal, core and non-core, alliances, the S&D model, cost, technology and partnerships, etc., while leadership includes Openness, Change and Succession. Finally, performance has to be measured by Execution as we all know. The author has linked the same with various excellence models focusing on the process to achieve results starting from ERP, ISO, TQM, Six Sigma to Deming Awards, to mention a few. These bubbles have to talk to each other for the final results which are aligned in a productive way by the author. The author has correlated the same across companies which are in the analysis to find out the performances of each such company in the selected parameters. The trajectory taken by these companies to go global as a part of their strategic imperatives with real life experiences of Indian Hotels, TISCO, Bombay Dyeing, M&M and Apollo Tyres are well explained with their business models adopted and changed strategies adopted to meet their objective of going global including a business model of Indian Hotels through Direct, Subsidiaries, associates and partners and finally linking it to product and geographical extension is the best example of de-risking the business model, explained seamlessly by the author.
The TISCO Corus acquisition beating the rival CSN, Brazilian steelmaker is interesting information for Indian companies to look at. It is more so interesting to learn that Corus is more than four times the size of TISCO; however, becoming the fifth largest steel producer of the globe and the second in the Europe, post-acquisition by TISCO. The strategy of de-integrated production through acquisition is very nicely explained by the author giving a flavour for effective material handling and thereby gaining a cost advantage. Here the author’s explanation of long-term synergies in manufacturing, access to global customers, opening the Indian market to Corus or utilizing Corus R&D for Tata Steel’s green field project is pretty useful. The case of Bombay Dyeing is covered nicely on the processes which lead to cost reduction starting from operating costs to manpower costs, to achieve the overall objective of restructuring product development, process, quality, delivery, performance and marketing. The author has also covered substantially on BPR done by M&M. The principle of cellular manufacturing is an interesting strategy to learn. The author has also touched upon culture and resistance to change in century-old conservative organizations like Kirloskar Brothers and how they overcame the same by entering into JVs and alliances with companies like Toyota and Snyder General, looking at a growth strategy and a phenomenal success story of locating technology and integrating it with sub-technology and finally end-products. Very few people are aware about the fact that Sundaram Fasteners (SFL) was the first company in India to achieve ISO 9000 certification. It is also interesting to note that GM does not source any other products from India other than SFL.
The graphical representation of the Tata Business Excellence Model, code of conduct and customer focus integrity passion for engineering corporate citizenship are interesting to read. The author has integrated the same strategy in planning, the segmentation process and finally with CBVU vision and strategy, which is worthy and useful reading for researchers as well. The author has also explained talent management through an OHS survey—which clearly indicates locating potentials and converting them into star performers while de-selecting non-performers. I would have been happier to see the strategy for a performance improvement plan (PIP) before de-selecting giving a time for improvement, which would have made the whole analysis more interesting and challenging. The author could have covered more on the enterprise process model though the exhibit is vivid and clear in a nutshell. Under the chapter ‘Wrapping it up’, the author has also given evidence and details of various business surveys like Business Today, on most valuable companies of India which is based on market capitalization. Some of the methodologies adopted by the author are similar to methodologies adopted by Jim Collins in his book ‘Good’ to ‘Great’. The statistical significance test and comparison methodology is very systematic. Finally, the author has given full details of financials which makes the book all the more interesting to read. Details of KEC International and their strategy of alliances and JVs for growth strategy along with financial details, supports the case of transition and transformation from good to excellent. The author has very rightly pointed out that KEC faces stiff competition globally for their business as more than 70 per cent of their tower project business is international. Having worked for the same group for a short period, their geographical market share would have given more insight into capturing a bigger share in the US and India as the current scenario is in tough terrains like Afghanistan and Africa, where big players possibly would not like to venture into. The KEC International focus in other areas like Railways and their growth plans in India would have given greater perspective, in my view. The bearing industry is covered to a great extent and it is interesting to read about SKF strategies for growth, differentiating it from competitors. Peer comparison of power sector companies with details is done professionally by the author. If you are looking for a book on excellent Indian companies in terms of their business models, strategy and execution, coupled with leadership capability building, it is a must-read book which gives a perspective of good companies, filtering the same to an excellent bracket.