The decade 2000 - 2010 has been an era of economic development for India Inc and Gujarat has not lagged behind.
The decade 2000 - 2010 has been an era of economic development for India Inc and Gujarat has not lagged behind.
In fact, many state companies have taken the lead as is evident from the figures available. During the decade many of the state based small and medium enterprises have become MNCs. Some state based companies including Remi Metals, Electrotherm (India) and Zydus Wellness have seen their net sales rise over 100 times in this period. Remi Metals grew 155 fold in sales and in the FY 2009-10 its turnover was Rs371.5 crore compared to Rs2.4 crore 10 years back.
Similarly, Zydus Wellness and Nandan Exim whose sales were just Rs2.6 crore and Rs4 crore respectively in FY 2000, have grown 100 times in FY 2009-10. Electrotherm (India) Ltd, Kalpataru Power, Sintex Industries and United Phosphorous Ltd (UPL) have also seen their rise 14 fold.
They are now multi-thousand crore companies. Electrotherm (India)'s net sales well crossed Rs2,000 crore in FY 2009-10 -- it was less than Rs20 crore a decade back. Similarly, power equipment producer, Kalpataru Power and plastic solution maker, Sintex too saw 25-fold and 16-fold rise in their sales.
Sintex and UPL have became truly MNCs at play. Since 2000, along with entering in the strong growth areas of pre-fabricated structures and monolithic construction, Sintex acquired Zeppelin Mobile systems of Germany, Wasaukee Composites Inc of USA, French company Nief Plastic and Nero Plastics among domestic acquisitions.
UPL had over 10 acquisitions in less than a decade in Europe and USA and other parts of the world. The Indian cos focused on firms that were either not doing well or making losses for the acquisition and then turned them around.
After 2004 when UPL acquired US based crop protection company AG's business for $35 million it never looked back and went on to bag many more in the field, like Cequisa, Reposo, Cerexagri, Icono, Evofarms and recently, Riceco, to name a few.
The expansion and acquisition resulted in many gains for UPL as the company which returned losses of Rs44 crore in FY 2000, is currently earning net profits of over Rs500 crore per year.
State PSU Gujarat Alkalies too turned around and is now earnings profits of over Rs176 crore per annum -- from losses of Rs73 crore a decade back. Similarly, Gujarat Sidhee Cement, Atul Ltd, Arvind Ltd, Zydus Wellness and Hitachi Home too began to earn yearly profits around Rs50 crore each. Ratnamani Metals and Sintex Industries were also star performers.
Their profits jumped over 25-fold in the decade. Sintex now earns net profits of Rs329 crore pa, compared to Rs13 crore a decade back, while Ratnamani Metals now generates profits in excess of Rs80 crore.
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