Sanjiv
Bajaj
Executive Director (Finance)/Bajaj Auto
It isn't easy managing the finances
of a company that has its balance sheet weighed down by cash but
Sanjiv Bajaj, the 35-year-old Executive Director (Finance) of
Bajaj Auto is not affected by that at all. "We make sure
our operations are run tightly and are not affected by this cash,"
says the MBA from Harvard Business School. Well, there is a lot
of that (cash), over Rs 5,000 crore at current market prices actually,
and it returns a mere 9-10 per cent, pulling down Bajaj Auto's
Return on Capital Employed (excluding cash, this is a rosy 75
per cent) to 20 per cent. The company can redress this by returning
cash to shareholders; then, as Bajaj points out, much of it will
be used up "in the next 3-5 years for our expansion in foreign
markets".
Robin
Banerjee
Executive Director (Finance)/ Thomas Cook (India)
He inherited a cash-rich company,
but that hasn't stopped 48-year-old robin Banerjee, who signed
on as Executive Director (Finance) at Thomas Cook on April 1,
2004, from trying to do one better. For instance, the chartered
accountant is using his past experience with a steel company to
drive home the necessity of focussing on cost of capital, including
own funds. "That is why we decided to give the detailed EVA
(economic value added) analysis this time in our balance sheet,"
says Banerjee. Then, he has taken several steps to control overall
costs, improve collections, increase returns from treasury operations,
even train middle managers on the basis of finance by travelling
to Thomas Cook's offices across the country.
Kaushik
Chatterjee
Vice President (Finance)/Tata Steel
After a 10-year restructuring programme
(headcount reduced from 77,000 to 41,000, and raw-material consumption
per saleable tonne from 4.52 tonnes to 3.08 tonnes), Tata Steel
is on the threshold of a major explosion (by increasing capacity
from 4 million tonnes now to 15 million tonnes by 2010). "The
CFO's job is to make sure that this is profitable growth,"
says Koushik Chatterjee, the company's 36-year-old Vice President
(Finance). Chatterjee was also directly involved with the company's
acquisition of NatSteel, Singapore. And he got Tisco rated two
notches above the sovereign rating (for local currency borrowings)
by S&P. "Tisco is the only company in the country that
can boast of a rating two notches above the sovereign ratings,"
he says. The man belongs here.
H.G.
Gelis
Executive Director(Finance)/Siemens
It isn't just this listing that
identifies H.G. Gelis, the 46-year-old executive director of Siemens
as an outperformer. Siemens India ranks first among all Siemens
companies (there are 190 in all) worldwide, in terms of return
on capital employed (ROCE). "And we have got an award for
that too," he says proudly. Clearly, Gelis' efforts to make
everyone in the organisation, including engineers, aware of basic
financial parameters such as shareholder value and EVA have yielded
the desired results. Significantly, most members of his finance
team boast an engineering background. "CFOs have to move
from the traditional role of financial management to strategic
management," says the man.
S.G.
Joglekar
Vice President (Finance)/Bharat Forge
It has been an active four years
for 48-year-old S.G. Joglekar, vice president (finance), Bharat
Forge. In 2001, the company's Return On Net Worth was 8.83 per
cent; in 2004, it was 60.6 per cent. And its net working capital
cycle fell from 34.82 days to a negative 22.99 days in the same
period. "We have focussed on inventory," is all the
chartered accountant who has been with Bharat Forge since 1985
will say. "Since we export quite a bit, we utilise pre-shipment
and post-shipment finance to our advantage," he adds. Another
major move was the dollar-isation of the balance sheet, a move
that should help Bharat Forge beat volatility in the foreign-exchange
market.
Praveen
P. Kadle
Executive Director (Finance & Corporate Affairs)/Tata Motors
Praveen P. Kadle, the 48-year old
executive director (finance & corporate affairs) at Tata Motors
should get a major share of the credit for turning things around
at the company. "Our board had taken a long-term (five-year)
vision in 2001 to turn around the company first (in the first
two years) and then to grow fast later (for the next three years),"
he says, implying that everything he effected-financial restructuring,
reduction in borrowings, improvements in working capital management-was
based on this. "We have not just became a debt-free company;
but have enough cash now," says Kadle, who has also been
actively involved in the company's global M&A play.
Mehernosh
B. Kapadia
Senior Executive Director/GlaxoSmithKline Pharmaceuticals
In a market that has not always
been kind to multinational pharma firms, GSK Pharma's operating
margins have moved steadily from 13.22 per cent in 2001 to 28.92
per cent in 2004. How did Mehernosh B. Kapadia, the company's
50-year-old Senior Executive Director, achieve this? First, by
redesigning the product portfolio and moving to higher-margin
products; second, by consolidating manufacturing (the number of
plants came down to two from nine previously); and finally by
integrating six different entities into one and reducing headcount
from 7,500 to 4,100. "For the last three to four years, we
delivered more than we promised to our investors," says the
chartered accountant who has served on the board of the company
since 1996.
P.K.
Mukherjee
Director (Finance)/Sesa Goa
Things are improving fast at Sesa
Goa (for instance, return on capital employed has rocketed from
11.65 per cent in 2001 to 78.75 per cent in 2004), as indeed they
have at most steel companies, although 49-year-old P.K. Mukherjee,
Director (Finance), insists that this isn't just because of the
upturn in the steel cycle. "We have reduced our cost of debt,"
says the chartered accountant, adding that Sesa has made some
improvements on the working capital front. "Our strong hedging
mechanism helped us to make money from our forex transactions
as well," says Mukherjee. With mining leases not available
at will, the ore major is sitting on a huge pile of cash. "Now
it is a problem of abundance," laughs Mukherjee.
T.V.
Mohandas Pai
Director (Finance & Administration) and CFO/Infosys Technologies
In March 1999, T.V. Mohandas Pai,
the 47-year-old CFO of infosys was part of the core team that
worked on the first listing of an Indian company on an American
stock exchange (NASDAQ). Even before this listing (which resulted
in higher transparency), and today, six years later, Infosys has
always been very clear, and still is, on what it wants to be.
"Our aim is to be among the best companies and also become
the most respected company in the world," says Pai. It only
follows that Infosys finalises its accounts very fast, conducts
its annual general meeting at the earliest possible date, and
boasts one of the most transparent balance sheets in India. Fund
managers, brokers and investors can't have enough of it.
S.
Rajagopalan
CFO/ Monsanto India
Monsanto India's gains on the growth
front can largely be attributed to its seeds business (acquired
in 1999). Believe it or not, S. Rajagopalan, the 40-year-old CFO
of the company, has had a role to play in this. As has astute
working capital management. "In the seed business, if you
don't manage your inventory, you are dead," says Rajagopalan.
So, Monsanto works with the least possible inventory, all the
while pursuing its pricing-for-value (educate farmers on how they
can get the most out of a good quality product, then encourage
him to pay more for it) strategy. Rajagopalan has also had to
work on the company's collection mechanism (again, critical in
the business) and says that improvements on this front will see
"our cash position growing year after year".
D.D.
Rathi
Whole Time Director & CFO/Grasim Industries
The CFO of a conglomerate (such
as Grasim) has a totally different work profile from that of a
CFO of a single-division company. In Grasim's case, each division
has a head reporting to the board. "My job is to act as a
link between the board and operational management," says
D.D. Rathi, the 58-year-old CFO of Grasim. It isn't that Rathi,
a chartered accountant (he was one before he turned 21) doesn't
deal with matters financial. Over the past six years (he was with
Indian Rayon before that), he has focussed on financial and debt
restructuring, and been involved in the company's acquisition
of L&T's cement division. That leaves little time for anything
else, and Rathi likes it that way. "I am a workaholic and
work is my hobby," he laughs.
Ravi
Sud
Vice President (Finance)/Hero Honda Motors
The thing about Ravi Sud, the 50-year-old
vice president (finance) of hero honda Motors is that he is a
manager in a domain filled with accountants. That could explain
how the IIM Ahmedabad alum increased the company's Return On Net
Worth from an already-high 47.52 per cent three years ago to 61.44
per cent today. Sud effected this by getting tough with costs
and reducing the working capital cycle (it is now negative), and
keeping shareholder funds low by issuing liberal dividends. "We
follow the dividend theory in spirit and when we have excess money
we return it to its real owners (investors)," he says.
K.
Vaidyanath
Executive Director/ITC
The 55-year-old K. Vaidyanath, executive
director, ITC isn't just a CFO; he is a super CFO. Reason? ITC
is a conglomerate with 12 businesses (across fast moving consumer
goods, hotels, paper, paperboards and packaging, and agri-business)
and each of these has its own CFO. "The Divisional CFOs have
a direct reporting line to the respective Divisional CEOs and
a dotted line reporting to me," says Vaidyanath, an MBA from
XLRI, Jamshedpur, who has been with ITC for the past 28 years.
There's more: At ITC, the IT function is led by the CFO (that
is something; ITC, you see, has an extensive virtual private network
connecting almost 400 locations and supporting shared services
through integrated data centres). "This structure enables
the company to carry finance and technology as a common theme
across businesses," says Vaidyanath.
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