The Capital Allocation Test

Arvind DSIJCategories: Cover Stories, Cover Story, DSIJ_Magazine_Web, DSIJMagazine_App, Stories
The Capital Allocation Test

That kind of return was not luck, and it was not simply a good consumer cycle. It was the result of one decision, repeated for years: management kept sending fresh capital to the part of the business that earned the most on every rupee invested and starved the part that did not.

That kind of return was not luck, and it was not simply a good consumer cycle. It was the result of one decision, repeated for years: management kept sending fresh capital to the part of the business that earned the most on every rupee invested and starved the part that did not. 

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