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Yashika Narang

@yashika_narang
9 months ago ~20 views
𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐌𝐚𝐭𝐭𝐞𝐫𝐬!
Philip Fisher quoted: “Profitability of a company depends 90% on the management, 9% on the industry and 1% on the company”

While investing, financial-valuation metrics and share prices should be looked for but it is crucial to understand what actually drives this- “Mindset of management” which can make or break the company.

A thread 🧵 of interesting examples where a change in management’s focus has led to the transformation of the business👇
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Yashika Narang

@yashika_narang
9 months ago ~30 views
1. ICICI Bank Ltd: Sanjay Bakshi took over in 2018 replacing Chanda Kochar and he focused on improving the company’s culture, cleaning up the bad loans, focusing on operating profits and digital transformation.

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Yashika Narang

@yashika_narang
9 months ago ~10 views
2. Garware Technical Fibres: Vayu Garware was appointed as Chairman in 2011 and since then the company’s focus has been on shifting from commodity-type products to value-added products (contributing +70% of total sales now) and this has led the company’s margins and ROIC to increase significantly.

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Yashika Narang

@yashika_narang
9 months ago ~60 views
There are many examples like United spirits (acquired by Diageo), Tata group (when Chandrashekhar ex- TCS CEO became chairman of Tata Group) and Vinati Organics (Vinati turned the operations that were incurring losses into profitable ones) where growth trigger was not majorly any industry tailwind but the “Make it happen- mindset of people running the business”.
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