Value creation by Corporate India More Than expected

Suresh Kalyan, Chief Financial Officer, Amara Raja Batteries speaks to Sagar Lele about value creation by Indian corporates and about how the company has managed to evolve as one of the best in the current economic scenario.

Suresh Kalyan
Chief Financial Officer,
Amara Raja Batteries

Do you think Indian companies have succeeded in creating value in the true sense of the term?

Yes, value creation by Corporate India has been more than expected. However, it could have been better if we didn’t see this fall in the GDP growth rate.

According to you, have shareholders reaped the benefits of capitalism in India?

No, they haven’t yet reaped enough benefits from capitalisation. A lot more can be done from the government’s end. There will be a lot more seen on this front when there are changes made in policy to support benefits that shareholders can garner.

What are the challenges faced and strategies adopted to overcome those challenges which have helped you in emerging among the top value creating companies today?

The industry we operate in has been rather challenging lately. The first hit was seen during the Lehman Brothers episode. The industry did well after that, but that was just pent up demand. The automobile industry has started seeing difficult times again.
The auto industry is an indicator of economic health, and the growth therein has not been much for the last two years. However, Amara Raja has been able to ride through this because of the replacement market. This market has been buoyant and has been providing stability for our operations.

What is your vision for the Indian economy over the next five years?

In the next five years, India has the potential to again touch a GDP growth rate of eight per cent. However, the fiscal deficit is something that should be controlled. Greater emphasis needs to be laid on where the fiscal deficit is heading.

Where do you see your company fitting in this vision? Also, where do you see the company in the next five years?

We aim to be a USD 1 billion company in the next five years.