Book Summary: The Unusual Billionaires

In this book, Saurabh Mukherjee has screened 7 companies and draw a roadmap of the success of these companies

How Saurabh Mukherjee has screened these companies?

Saurab Mukherjee used two criteria to screen companies

For Non-Financial Service Firm (Decade):

  1. A 10% Revenue Growth every year
  2. At least 15% of Return on Capital Employed (ROCE)

For Financial Services Firm (Decade):

  1. Return on Equity (ROE) of at least 15% every year
  2. Loan Book Growth of 15% every year

Following these criteria, the writer identified these companies

  1. Asian Paints
  2. Berger Paints
  3. Marico
  4. Page Industries
  5. Axis Bank Ltd
  6. HDFC Bank Ltd
  7. Astral Poly

Asian Paints
Seven Decades of Excellence

Asian paints Stay always the first mover in the market, it used advanced technology and supply chain management in 2002, much earlier than its peers

Asian paint started its business with the retail segment rather than wholesale

Asian paint took many customer-friendly moves, like when labor charge was high, Asian paints introduced DIY (Do It Yourself) and it understand customer’s need and introduced the product as per that

Asian paint’s many advertisement campaigns had paid off to the company

Asian paint’s supply chain management proved very useful to the company

Consistency in stakeholding is also proved a big concern for the company

Asian paint diversified themselves by doing such acquisitions

Berger Paints
250 years in the making

Berger paints constant focus was on the paint business

Berger paint’s advertisement expense uniformity was also a big reason for its growth

Berger paint’s innovation in its product and innovation like tinting machine touch the hearts of retailers and customers

Berger used to give full autonomy to its workers and had a strong relationship with dealers and distributors and was 1st to give benefits to its dealers

Berger never looked for any diversification which was the best thing

Berger paint’s supply chain management – install manufacturing plants in Gujarat, Puducherry, and Jammu benefited its operations a lot

Marico
From a Commodity Trader to an FMCG Giant

Marico focused on launching products as per customer’s needs, like a small bottle of parachute oil and innovation in packaging and products under the same brand

Marico launched more product under successful brands and divested low margin brands

Marico was good at giving benefits to workers and used to give them benefits and trip and good facilities

As along with these such acquisitions, Marico didn’t hurt its quality and always tried to improve it

Marico took many brands under it and expand itself in many areas and win market share in almost all sub-brands

BrandMarket share
Parachute55%
Value-added hair oil25%
Saffola58%
Flavored oats65%

Page Industries
Jockeying from Manila to Bengaluru

Page industries three tire distribution network, i.e. LFS – Large Format Store, EBO – Exclusive Brand Outlets, and MBO – Multi Brand Outlets perform a big role in its growth

Page refuses to sell its product below MRP and succeed in price uniformity

Page used to spend significant money on advertisement and its in-store advertisement attract customers and increased its sales

Page used to introduce a new range of product every year which gives more choices to customers

Page used to train 900 to 1000 workers in a year and give them full autonomy to work and there was 80% women worker at page’s plant which gives it the benefit of unrest than men worker

AXIS BANK
Confounding the Sceptics Repeatedly

Axis bank has the largest number of branches and ATM among all banks, the number of ATM per branch ratio is 4.5

More branches and transaction banking lead to higher CASA

Axis bank used to give ESOPs and salary hikes to its employees and also provide an employee-friendly environment

UTI bank become Axis bank in 2007 and lost its brand value, but the board of Axis bank organize many advertisement campaigns and do branding

Axis bank first look for the increase in number of branch and then move its operations to retail which gave Axis safe loans and higher CASA which decrease their cost of funding

HDFC BANK
The Power of Textbook Execution

HDFC bank proved itself as it has all the solutions for customer’s problem

HDFC bank continued focusing on its 2 principals

  1. Building a stable and low-cost liability base
  2. Winning clients by offering unique solutions

It had solved a problem of fund transfer and also lunched mobile banking app

HDFC bank was good at every side like, acquiring fund at low cost, sell them at an appropriate rate with maintaining its loan book quality

HDFC also did cross-selling by which it sticks to the customers and earns fees also

Banks branches and ATM network was the key strategic asset for the bank

HDFC bank pulled all player – buyers, sellers, brokers, exchanges into electronic cash settlement system, so now the broker who have an account in HDFC bank, only then he can do it and all the people wanted to do it

Astral Poly
To the Brink and Back

Astral keep innovating in its product

Astral was always ready to try new technology whether it is helpful or not

Astral know plumbers are its first customer and used to take care of them and used to hear their problems and always find solutions of that, plumbers can’t get this much importance anyware else than Astral, which encourage them to work only with Astral

Astral was the 1st company to train plumbers and Astral train 1,00,000 plumbers between 2005 to 2008

When Astral’s competitors’ products were more attractive in eyes of customers, Astral did lose and push its products and this is how the world knows its products are far much better than others

Astral’s have a pan-India distribution network, its high capacity of manufacturing, manufacturing facilities, well-entrenched network of distributors, and reputation among plumbers provide a strong barrier to entry for new players

Published by Aakash and Meet

I am Aakash Raotole I am currently doing Bcom from Dr. Patel and Rb Patel commerce college I am currently studying at finnacle investment academy Recently done distance internship with windrose capital, Pune - for a period of 14 weeks I am Meet Bhatt Completed HSC in commerce Now studying finbridge program at finnacle investment academy and Bcom externals I had completed CFA institute's investment foundation course and distance internship with Windrose capital, Pune - for a period of 14 weeks

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