Amongst the first points that Kartik Bharat Ram makes, as we settle in for our interview, is their steadfast intention to avoid a repeat of what they have seen in several business families: Sibling rivalry resulting in a split. Indian business history is littered with founding families destroying promising businesses. The Bharat Ram family saw its own business split in 1999. Arun Bharat Ram’s sons are clear they don’t intend to go down that path.
It’s plain to see why. They’d clearly have a lot to lose. Since taking over SRF, or Shri Ram Fibres as it was then known, as part of a family spilled, this branch of the Bharat Ram family has built a business that is valued at ₹35,000 crores. One of their lines—specialty chemicals—has immense growth potential. Another business, refrigerant gases, too has a promising future as India’s cooling needs grow. The increase in market capitalization that has taken place mainly over the last six years has catapulted chairman Arun Bharat Ram, 80, worth $1.8 billion, to the Forbes Billionaires List. Sons Ashish, 52, managing director, and Kartik, 49, deputy managing director, are now the stewards of this business.
Equally, theirs is a story of efficient capital allocation, long-term thinking, and the benefits of a diversified revenue and profit stream. These businesses have taken decades to put together and their durability is sticky. That is one reason why the market is valuing it at a 35 price to earnings multiple even though a part of their profitability comes from legacy businesses with poor growth potential. In the year ended March 2020, SRF had revenues of ₹7,209 crore and profits of ₹1,019 crores. Its return on equity capital was at a decadal high at 21 percent.
The brothers, after having taken the business this far, are about to embark on a new and potentially more exciting phase. SRF is now on track to produce a significant amount of free cash flow. What Ashish and Kartik do with this is likely to shape their legacy. A part of it will be returned to shareholders based on feedback they’ve received from the investor community. Over the past 18 months, the company has returned nearly ₹200 crore.
Continue reading your story on the app
Continue reading your story in the magazine
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term
DIGITALISATION WILL HELP IN VALUE CREATION
As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India
Home-Cooked Meal Is Now Greatly Valued
The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients
A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet
How Beerud Sheth made Gupshup a profitable unicorn after one pivot, two near-death experiences and 15 years of slogging
Will Tech And Small Towns Give StanChart an Edge?
Unlike rival Citibank, standard Chartered bank has the option to explore retail banking more aggressively. backed by a digital thrust, Ceo Zarin daruwala has more opportunities than challenges ahead of her
Flames of Destruction
Forest fires and their alerts in the country have gone up sharply in recent times, posing a serious threat to our environment, wildlife and biodiversity. Can wildfires be prevented in a world dealing with climate change?
The Charming Appeal of Ashish Chanchlani
As one of the first content creators to pick up on homegrown humour, Ashish Chanchlani paved the way for a lot of what we enjoy on the internet today — and plans to take it to Bollywood too
एफकॉनपी-305 बार्ज कंपनी पर दर्ज हो केस:शेलार
तौकते चक्रवात की वजह से बॉम्बे हाई के नजदीक एफकॉन पी-305 बार्ज डूबने से कई लोगों की जान चली गई। इस हादसे का जिम्मेदार कौन है?
Price Vs Demand How are diamond jewellery manufacturers managing Scarcity of niche goods?
World over demand for diamond jewellery is steadily rising, however manufacturing and certification of loose diamonds isn’t matching the demand levels. This is resulting in several forms of demand-supply inequalities. R Sugandha finds out from diamond business owners how this uncertainty is affecting their business
Is Kartik Aryaan's Reign Of Success Over?
Kartik Aryaan is embroiled in a huge controversy with Karan Johar and has been ousted out of Dostana 2. Is Janhvi Kapoor the reason? Sumita Chakraborty wonders if Kartik Aryaan can wriggle out of this huge setback and steer his career back into the winning path.
COMES FORWARD TO SUPPORT THE FRONTLINE MEDICAL WORKERS & COVID PATIENTS
Von Wellx Germany group has come forward in support of all the frontline health workers as well as covid patients. It pledges to donate 10,000 washable (easily sanitizable) & healthy shoes, to needy patients and medical workers, across Covid-19 hospitals in India.
The global LED lighting industry is valued at 54 billion US dollars in 2019 and the market is set to grow at a CAGR of 13.4 percent from 2020 to 2027.
The Mum Behind The Lens
After five years of snapping happy memories for mums and babies, ace maternity and baby photographer Tarveen Modasia, aka The Looney Lens, gets to walk a mile in her client’s shoes with her baby Angad
Beating Covid-19 Blues
How Business Today-money today financial awards identified winners across mutual funds, insurance companies and pension funds
In An Intertwined World Of Fashion & Passion with Arjun Bijlani
He who has bagged some intense and successful roles in the past few years, Arjun Bijlani, has leveled up from being the chocolate boy of the television industry to the boy-next-door, winning hearts and accolades with his impeccable performance. We at CANdYMAG dived deep into this charming young man’s world of fashion and the art of styling.
BL Agro, India's leading FMCG company Rolls Out Social Media Campaign ‘Pyar Ki Tasty Kahaniya' To Celebrate Valentine's Week
To celebrate the week of love, the Valentine’s week, B L Agro, India’s fastest growing FMCG company, through its brand, Nourish announced its latest social media campaign ‘Pyar Ki Tasty Kahaniya’ on its digital platforms, that aims to bind the love of couple of all segments through food.