Thursday, April 13, 2006

Here comes the killer, honey! - IIPM Knowledge Centre

Yes, here really comes the killer, honey! Interestingly, though establishing correlations is not so simple, the company has seen its RONW (Return on Net Worth) come down continuously since the year 2001. And more incidentally, 2001 was the landmark year when the company announced its entry into packaged foods business. How's that as a killer sweetie? Yeah right, we know, they've been there and done that. And they're not dead yet: of course not! Well, Chairman Y. C. Deveshwar too, seems to have a growing affinity for all businesses that do not have to involve the ‘injurious cigarette’. Deveshwar highlighted the potential of the cigarette business and how strategic investments to the tune of Rs.7 billion have been made over the last four years “in technology, brands and skills upgradation.” So what is so surprising, one might ask? The punch is that he said that in the AGM of the year 2000! In successive shareholder AGMs, Deveshwar has talked about a range of topics like food business, hotels, triple bottom-lines and rural development initiatives. But hey, what about the cigarettes business?....

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Source :- IIPM Editorial, 2006

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