'you will never see us doing rash things in biz' - clear roofing sheets
For aggressive investors, 76-year-
Old Rajapalayam ,(south)Tamil Nadu-based cement-to-
The software Ramco Group is a mystery.
A group of companies interested in cement, roofing plates, textiles and software follow a simple management rule: do not buy the company, do not raise equity, and do not lay off employees.
"We are a very good defensive team.
You will never see us doing things rashly in business . "spoken 52-year-old vice-
Venketrama Raja, chairman of the group (
Affectionately called PRV)
Who is also the face of the group. His father, 76-year-
Old P. R. of ramasubu rahamani Rajha.
And ensure that the core values of the group are not diluted.
All businesses within the group have developed a growth strategy that considers only one thing: increasing capacity only through internal accrual projects and borrowing.
Equity financing may be the easiest way for the group, but it deliberately chooses not to go that way.
The sample is as follows: the flagship Madras cement company of The Ramco Group raised only Rs 3 equity, while its balance sheet showed its share capital at Rs 24.
All the additions came due to bonus issues.
The annual output of Madras cement is 12 million tons.
On the other hand, Indian cement is the largest cement manufacturer in South India, managing 15 million tons of cement with a share capital of RS 307.
"All the increased capacity is carefully planned and funded through internal and borrowing.
"We could have chosen the equity route, but we chose other ways," Raja said . ".
His statement stems from what his father ramasubu rahamani rajhaa has said: do not raise money from the public.
From that moment on, you are responsible for them and for your business gambling.
Under the leadership of Raja and under the close supervision of his father, the group's revenue grew by 19% in 2008 --09 and 2010-
When it is closed with a back line of RS 4,482.
Raja, a student at managing master c k Prahalad, said his mentor taught him to simplify complex situations, find solutions quickly, and more importantly communicate effectively.
"Prahalad once told me on the elevator to make your mind clear and clear about what you want to do in business.
The team made a Tucker-
In 2000, Gokul cement was acquired in the chiladoga area of Karnataka.
"Acquisitions are OK, but not as good as we thought," Raja said . ".
It gave the group a foothold in Karnataka.
"There's nothing to write about, but it's much better now.
You can say that our experience has not given us much encouragement and reward.
The organization faced special circumstances in 2000.
Its chairman, ramasubu rahamani Rajha, is a member of the board of directors of Thanjavur Textile Corporation (
The company his friend started)
This strikes the door of the BIFR, an institution that focuses on sick companies.
Rajha was upset by the poor financial condition of a company he served as a director.
He took over the company with Ramco Group, which signed the bank guarantee, and carried out a large-scale transformation of its operations.
Ramco did not take over the company, it could have taken over the company, and the original sponsors still hold their shares.
Ramco has just helped turn the company around and integrate its business with the group's textile business
Another example of the group's management philosophy.
While people respect the group's conservative approach to asset building, when we talk to people sitting in hot seats about the Ramco system, stripes Raja makes profits from various businesses, technical Department of the group.
After building a strong ERP product in the 1980 s, the company has been lacking growth.
The company has a revenue of Rs 241 and a profit of Rs 2.
3 crore, and its competitors operate nearly 10 to 20 times the size of their business.
Ramco Systems is unfortunate, but the last shot in glory.
Whenever they are ready for their product or upgrade, it is either their marketing team that has let them down, it is a key change at the top level, or it is a blow to the global economic disaster.
PRV is cautious.
"We have done all the hard work and have the most powerful products in the market.
We take only one small step at a time and do all the right moves.
The challenge is enormous, and we know we have one last chance to prove our value.
"The Winds of change are slowly sweeping the entire team.
"We are slowly opening our doors to new realities.
Although we are conservative and defensive, we will focus on acquisition opportunities and on equity dilution when needed, "he said when we signed.