Source: Goldman Sachs Research Report
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Telecom: 100% Coverage
Source: Goldman Sachs Research Report
I have chosen to speak today to convey that we at the Reserve Bank of India also feel the anger, hurt and pain at the banking sector frauds and irregularities. In plain simple English, these practices amount to a looting of our country’s future by some in the business community, in cahoots with some lenders. As safeguards of your deposits at banks, and starting with the Asset Quality Review of banks announced by the Reserve Bank in 2015 – since ably conducted by our supervisory teams and as acknowledged objectively by experts of reputed multilateral agencies, we are doing all we can to break this unholy nexus.
I see what we have undertaken for cleaning up the credit culture of the country – in particular, the comprehensive regulatory overhaul announced by the Reserve Bank on February 12th for prompt recognition and resolution of NPAs at banks – as the Mandara mount or the churning rod in the Amrit Manthan or the Samudra Manthan of the modern day Indian economy. Until the churn is complete and the nectar of stability safely secured for the country’s future, someone must consume the poison that emanates along the way. If we need to face the brickbats and be the Neelakantha consuming this poison, we will do so as our duty; we will persist with our endeavours and get better with each trial and tribulation along the way.
I do wish more promoters and banks, individually – or collectively through their industry bodies, would reconsider being on the side of Devas rather than Asuras in this Amrit Manthan.
–said Dr. Urjit Patel, RBI Governor
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Linkfest: March 15, 2018
Some stuff I am reading today morning:
Bandhan Bank IPO opens today (Quint)
The heartfelt speech of RBI Governor Urjit Patel (RBI)
BJP loses simple majority in Lok Sabha (MC)
LTCG relief for unlisted shares (Quint)
Will mid-tier IT companies sink or swim? (ET)
IPO Review: Mishra Dhatu Nigam (BL)
Indian importers face funding crunch (Reuters)
Is the Fed tightening cycle played out? (Macro Tourist)
Ironies of Luck (Morgan Housel)
Do relative value strategies beat traditional value investing strategies? (AA)
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Book Review: The Consolidators
The Book ‘The Consolidators’ is written by Prince Mathews Thomas, a journalist.
What piqued my curiosity about this book were the blurbs written by two of India’s most successful and respected businessmen
Analjit Singh : ‘This book is a valuable read for any entrepreneur’
Harsh Mariwala: ‘These are compelling stories,each a lesson for other aspiring entrepreneurs’
The Book indeed does cover the story of 7 entrepreneurs.The common thread amongst the entrepreneurs is that they are second generation promoters in the family business.
As the Book says, “these entrepreneurs might be born with a silver spoon, but they had to make sure they didn’t lose it.”
The stories cover the following entrepreneurs:
- Ajay Bijli (PVR)
- Abhishek Khaitan (Radico Khaitan)
- Mithun Chittilappily (V-Guard Industries)
- T.S. Kalyanaraman (Kalyan Jewellers)
- Rituraj Sinha ( SIS India)
- Vikas Oberoi (Oberoi Realty)
- Priya Paul (Park Hotels)
The Book chronicles the careers and challenges of these entrepreneurs in a very easy to read manner.
Each story is different as the industries involved are different and the challenges/opportunities each second gen faced was different.
A common thread in these stories is the struggle to raise capital…nearly all took PE funding and/or the IPO route to expand their businesses
Another common challenge was to professionalise the company from a family/Lala/Babu culture to one run by professionals.
Also interesting was to see how well read and travelled these folks are.Many had studied abroad or even did the Owner/President course from Harvard.
One is also stuck by the easy connections and market acceptance these entrepreneurs have owing to the tremendous goodwill of their fathers.
The Book is full of anecdotes which make it an interesting and entertaining read.On the other hand, the author handles his subjects with a light touch and shies away from asking tough questions.
From an investors perspective,I think the key takeaway here is that a family run business can easily be destroyed if the second gen is an insecure and incompetent nutcase.Therefore it is important to understand their vision, values, competence etc
Do buy this book if interested in Indian family businesses and also if you have invested or intend to invest in any of the seven companies profiled.
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Portfolio of Yusuffali M.A in India
This post is in continuation of my coat tailing series (see here)
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Yusuffali M.A , the owner of the LuLu Group, is one of the richest Indians in the world.
His significant holdings in India as on 31 December,2017 as per stock exchanges/Annual Reports is as given below:
| Company Name | Symbol | Entity Name | Value (In Crores) |
| Cochin International Airport Ltd | Unlisted | YUSUFFALI MUSLIAM VEETIL ABDUL KADER | 662.5 |
| Cochin International Airport Ltd | Unlisted | SHABIRA YUSUFFALI | 121.66 |
| Dhanlaxmi Bank Ltd | DHANBANK | YUSUFFALI MUSLIAM VEETIL ABDUL KADER | 26.56 |
| Federal Bank Ltd | FEDERALBNK | YUSUFFALI MUSALIAM VEETTIL ABDUL KADER . | 710.87 |
| South Indian Bank Ltd | SOUTHBANK | YUSUFFALI MUSALIAM VEETTIL ABDUL KADER . | 229.97 |
| The Catholic Syrian Bank | Unlisted | YUSUFFALI MUSLIAM VEETIL ABDUL KADER | 71.63 |