BUSINESS AND ECONOMY : STRATEGIC BLUE PRINT FOR INDIAN CORPORATES ( PART – ONE)

BY ROBIN GHOSH

( FORMER CHIEF ECONOMIST, BENGAL CHAMBER OF COMMERCE AND INDUSTRY)

KOLKATA, 14 SEPTEMBER 2023:

Dynamics of change has engulfed Indian economy. Impact is evident in every sector.

Manufacturing, services, agribusiness, trade and commerce, investment and enterprise building are going through seminal changes.

The ebb and flow of the changing business environment is somewhat bewildering the Indian corporate.

Historical business models are not working anymore, and at the same time – emerging models are in evolutionary mode. It is speculative and risk prone.

Given this perspective, the annual address of ITC chairman and Managing Director Mr. Sanjiv Puri to its shareholders is an eye opener.

There are many messages, and many insights to observe and learn .The content of the speech unveils a unified strategic blue print of what an Indian corporate should think to do in these turbulent times.

Let us go step by step.

First Step :

Mr Sanjiv Puri, Chairman and Managing Director, scans the environment and identifies the changing policy environment and transformational matrix of the economy.

Policy initiatives are:

1. Tripling of public capex.
2. Best in class public digital infrastructure
3. The PLI scheme to attract private investment in focused sectors.
4. Establishing strong Farmer Producer Organization supported by a multi- stake holder Agri- Stack to empower farmers.

5. Targeted welfare spending leading to impactful delivery of grassroots benefits.

6. Prudent monetary and fiscal policies, extensive reform of the financial sector.

While the policy initiatives have augmented capacity utilization and higher levels of investment – Mr. Puri – has been careful enough to point out the negatives.

He describes the dark trends and they are :

1. Climate emergency
2. Persistent inflation
3. Supply chain disruption.
4. Muted demand situation in major economies.
5. Adverse impact of geo- political dynamics.

STRATEGY PLAN:

For a company to chalk out a strategic plan is not easy. Indeed the task is complex.

On the one hand, the company has to grow and on the other hand – its strategic blueprint must be co – terminus with reducing social inequity, environmental threats and ensure employment generation.

Mr. Puri brilliantly describes ITC’s transformative package and new sectors of growth and competitiveness.

What is that?

The mission’s critical tasks identified are:

1. Turn ITC into Future Tech, Climate Positive Innovative and Inclusive Enterprise.
2. Reshape ITC to be extremely agile, consumer – centric, competitive and resilient. Now, let us observe how ITC seeks to energize its mission of transformation. Look at the interventions:

1. Build future-ready portfolio of differentiated, high quality products and services to meet changing needs of customers and consumers.
2. Identify new vectors of growth based on enterprise strengths. For example, Sustainable Packaging and Food Tech.
3. Strengthening of structural competitiveness by investment in establishing market aligned innovation platform, building up efficient supply chain and improving operations across business.
4. Developing institutional synergy and intellectual capital by continuous R&D and by protecting ITC brands.