W16457

TERACOM LIMITED: APPOINTING A CONSUMER DISTRIBUTOR

Rajeev Kumra wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective
or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to
protect confidentiality.

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Copyright © 2016, Richard Ivey School of Business Foundation Version: 2016-07-18

In December 2014, Puneet Jain, president of corporate business of Teracom Limited (Teracom), pondered
an important choice: Teracom had never operated in the retail market and had to appoint a distributor for
Delhi. On his desk were four applications; Jain had to select the best one. Jain had been with Teracom for
12 years. He had risen up through the ranks of the company to become a president. He was responsible for
the sales and marketing in India and abroad.

BACKGROUND

Teracom was a company with humble beginnings that launched its operations from a single location—
Noida, Uttar Pradesh—in 2002 with only three promoters. Every day, two of the founders of the company
would go from one industry to another to sell optical fibre cables to a small number of customers. Soon its
efforts were so successful that Teracom was able to expand its product line. In 2014, Teracom, steered by
chairman and managing director Mukesh Arora, had become one of the fastest-growing companies in the
Indian telecom industry.

Arora received his master’s degree in engineering with a specialization in optical fibre from the Indian
Institute of Technology Delhi. In 1989, following his graduation, Arora began working for Sterlite, a
subsidiary of Vedanta. In 2002, he joined Teracom, working from the Noida office. Although he did not
like the Noida traffic, he accepted his new location because it allowed him the opportunity to pursue his
favourite hobby—acting at the Barry John Acting Studio.

Rajeev Venkatraman was an engineering graduate with an MBA degree. In 1994, he started his career with
Vedanta. During his Vedanta days, he worked on the same team with Arora and Jain. However, Arora was
an entrepreneur at heart, not an engineer. One day, on the way home from their office, Arora and
Venkatraman began brainstorming ideas for starting their own venture. After several months of discussions,
they decided to get into the manufacture of optical fibre.

All three men had been associated with Teracom since its inception and had been actively involved in the
day-to-day operations of the company. Over the years, they had followed the precept of not only making
Teracom one of the most admired companies in the telecom sector, but also winning it a near-iconic status.

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In doing so, they made a profound statement about doing business ethically and were also able to translate
their words into actions. It was their hard work and courage that made Teracom successful.

In 2002, Teracom began working in the specialized field of optical fibre cables, and then slowly diversified
into other telecom products for end consumers as well as for telecom operators. It made a significant
contribution to the expansion of mobile operators’ networks and in the different services’ switch from
second-generation (2G) to third-generation (3G) wireless telephone technology. Teracom’s diversified
product portfolio included optical fibre cable; wired broadband customer premises equipment (CPE) (e.g.,
asymmetric digital subscriber line [ADSL], very high speed digital subscriber line and Gigabit Ethernet
Passive Optical Network); wireless broadband CPEs based on code division multiple access, Evolution
Data Optimized (3G mobile broadband technology), WiMAX, and long-term evolution technology;
microwave-based backhaul solutions; and optical transmission equipment.

In 2015, Teracom was a ₹8 billion1 organization and was growing at a compound annual growth rate of 125
per cent. In 2008, it won many awards and earned major accolades including the International Achievers
Award for Corporate Excellence from the World Economic Progress Society and the Arch of Excellence
Award from the All India Achievers Conference. In 2012, Teracom won an award from the Electronics
Industries Association of India in the Research & Development category for its innovative ADSL
broadband modem.

Teracom had extended its presence across India; by 2014 it had six manufacturing facilities in Goa and
Uttarakhand and had set up branches in India and Dubai with more than 500 employees in total. As a long-
time leader, Teracom had numerous industry firsts to its credit, including becoming the first company in
India to commercially supply 3G USB datacards of 3.6 and 7.2 megabits per seconds (Mbps), the first
company in India to develop WiMAX CPE, and the first company in India to be selected for Indian
Railways’ Integrated Security System. To ensure continuous improvement in its products, Teracom had put
in place strong and effective quality management systems and processes in accordance with the ISO 9001
and ISO 14001 international quality standards.2

Teracom customers were primarily business-to-business entities, which included government

organizations, telecom operators, private- and public-sector companies, and institutions. Some of its leading
clients were ABB, Siemens, Indian Railways, Essar, Reliance Industries, and Bharat Sanchar Nigam
Limited. Based on consumer insights and feedback from employees, its product range and services differed
across various customers in the telecom industry. Mainly, these buyer organizations were catered to and
provided after-sales services by institutional distributors who had built deep relationships with them. Not
only was Teracom a profitable company (see Exhibit 1), but by 2014 it had become one of India’s fastest-
growing companies, with business interests in both the telecom and power infrastructure sectors.

To ensure timely responses to consumers, in 2014 it established a network of more than 100 after-sales
service centres spread across India. Soon the institutional distributors started to request that Teracom sell
its modem products to retail customers in addition to its existing business customers.

Teracom considered leveraging its well-established institutional distribution network and strong brand
equity to offer its modems to end consumers at a much lower cost than its competitors. Retail sales of
modems would act as an impediment to new, smaller entrants into that market, while end consumers would
gain direct access to cheaper products, without the need for intermediaries (such as telecom providers). The

1
₹ = INR = Indian rupee; all currency amounts are in ₹; US$1 = ₹61.92 on December 1, 2014.
2
For details of the ISO 9001 and ISO 14001 international quality standards, see International Organization for Standardization,
accessed May 3, 2016, www.iso.org/iso.

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strategy seemed viable for larger incumbents like Teracom, who already had strong distribution networks.
Smaller players would find it too expensive to set up retail distribution networks.

Teracom changed its focus in 2014 from only targeting business customers to including retail customers.
Teracom designed products to meet retail customers’ needs and sold the products through local channels.
In doing so, Teracom broadened its portfolio from only business markets to business and retail markets.

Given India’s vast geography and diverse cultures, Teracom was faced with differences in retail consumer
behaviour from one region to another. The company realized that it was not enough to have institutional
dealers, but it was also necessary to appoint different distributors for retail customers—those who
understood local traditions, customs, and culture.

INDIAN TELECOM INDUSTRY

In 2002, when Teracom started operations, telecom in India was controlled and administered by the
government, and teledensity—the number of telephone connections—was at a meagre 1–2 per cent of the
population. Interestingly, at that time, the telephone was a status symbol, and the waiting period for a
telephone connection was quite long. The Indian telecom industry had undergone rapid growth after market
liberalization in 1991, and had come a long way since then. In 2014, the Indian telecom industry was among
the cheapest in the world, and the second largest in terms of the total number of telephone customers. In a
relatively short time, India had become the world’s fastest-growing and most competitive telecom market.3

In 2014, India boasted the third-largest Internet user base in the world, with more than 300 million Internet
users.4 Three major government companies—Mahanagar Telephone Nigam Limited (MTNL), Videsh
Sanchar Nigam Limited (VSNL), and Bharat Sanchar Nigam Limited (BSNL)—dominated the telecom
industry in India. MTNL operated in the metropolitan areas of Delhi and Mumbai, BSNL operated in all
other areas of India, and VSNL was in charge of international operations.

The introduction of the 3G spectrum, followed by the fourth-generation (4G) wireless telephone technology
spectrum, led to a sudden spurt in the growth of Internet users in India. This growth was facilitated by the
widespread Internet access provided by both private and public companies, by using an array of technologies
that included dial-up, coaxial cable, Ethernet, Wireless Fidelity (Wi-Fi), and WiMAX. These services were
offered at a wide range of speeds and costs. As a result, the revenue of the Indian telecom sector increased by
7 per cent to ₹2.8 trillion in the financial year 2010/11, while the telecom equipment segment contributed
₹1.17 trillion in revenue.5 These telecom products included network equipment such as modems, cables,
hardware components, and mobile phone handsets. This growth in Internet services brought about a great deal
of innovation in both software and hardware offerings.

MODEMS AND COMPETITION

One of the main components of telecom hardware was the ADSL broadband modem. In the Indian modem
market, no single company had a formidable market share. In 2014, companies such as Teracom, D-Link,
Digisol, Huawei, ZTE, Sony Ericsson, 3Com, and Zoom Technologies dominated the modem industry.
3
Department of Telecommunications, Ministry of Communications & Information Technology, Government of India, Annual
Report 2012-13, accessed February 26, 2016, www.dot.gov.in/sites/default/files/Telecom%20Annual%20Report-2012-
13%20(English)%20_For%20web%20(1).pdf.
4
“How 500 Million Internet Users Transform India,” The Economic Times, February 26, 2015, accessed February 26, 2016,
http://epaperbeta.timesofindia.com/Article.aspx?eid=31816&articlexml=How-500-million-Internet-users-Transform-India-
26022015016005.
5
“Telecom Sector Revenue Grows 7% in FY ‘11,” The Hindu, July 24, 2011, accessed February 26, 2016,
www.thehindu.com/business/Industry/telecom-sector-revenue-grows-7-in-fy-11/article2290247.ece.

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THE TERACOM BROADBAND CPEs

Teracom broadband CPEs included the ADSL modem and the 3G datacard. The Teracom ADSL modem
was the most popular and was always in high demand from telecom operators for their consumers. It was
designed in compliance with the stringent specifications and requirements of BSNL, the largest public
telecom operator, but it could also work with operators such as MTNL, Airtel, Tata, and Reliance. It was
an indigenously designed modem made in full compliance with international standards for dial-up and Wi-
Fi. This modem had a four-port Ethernet switch, a Wi-Fi router, and MediaTek chipsets. MediaTek was a
pioneering company making chipsets for smartphones and broadband.

Teracom’s ADSL modem had been checked for technical compliance and tested by BSNL’s quality
department. The modem had successfully passed all of BSNL’s quality tests, field tests, environmental
tests, and other functional and long-duration tests. The modem was loaded with many features including
connectivity regardless of the operating system through either the Ethernet port or Wi-Fi, an integrated
firewall to provide online security, and connections for using multiple types of data communication
equipment simultaneously either through the Wi-Fi, the four Ethernet ports, or both.

The built-in connectivity (PPPoA/PPPoE) of Teracom’s modem eliminated the need for computer-based
software to set up an Internet connection. Further, Teracom modems were also motive smart self-care
compliant. This meant that customers could get access to the servers of broadband service providers (such
as BSNL) for automated modem setup, configuration, and technician-assisted troubleshooting when they
needed it, and the firmware/software updating resulted in better customer support. In short, once a customer
connected the Teracom modem, it was automatically detected by the broadband service provider’s server,
which resulted in the establishment of a hassle-free connection. To make this happen, the modem and server
both had had to undergo rigorous testing.

Similar to its ADSL modem, Teracom had also entered into the third-generation (3G) datacard business.
Both products were used for Internet access, although the 3G datacard operated on wireless technology,
unlike the ADSL modem that required a cable connection. The 3G datacard was a small USB dongle that
could be attached to any laptop or desktop computer to access the Internet from any 3G service provider such
as BSNL, MTNL, Airtel, Vodafone, Idea, or Aircel. The 3G datacard had various speed configurations such
as 3.6 Mbps, 7.2 Mbps, 14.4 Mbps, and 21 Mbps. BSNL was the major buyer of the Teracom 3G datacards,
and it used the cards as a complementary product to launch its 3G services in India.

Beetel from Airtel

In 2014, Beetel Teletech Limited (Beetel) was a subsidiary of the U.S.-based Brightstar Corp., and the
Mittal-family-run Bharti Enterprises of India was its majority stakeholder. Beetel was the leader in the
manufacturing and distribution of fixed telephone lines in India. Started in 1985, Beetel controlled the entire
value chain from product design, manufacturing, and distribution to after-sales service. It built up a base of
40 million end consumers over its 25 years in the Indian market. Beetel had a retail distribution presence
in more than 300 cities, with dedicated channel partners. It was also a major supplier to Indian telecom
operators such as BSNL, MTNL, Airtel, and Tata Teleservices.

Its reach was unparalleled, with 5,000 retail distributors and channel partners across the consumer and
enterprise businesses, and it supplied landlines and datacards to 10,000 retailers across India. Beetel had
one warehouse in almost every Indian state for supply chain and cost efficiency, and to ensure on-time
delivery to distributors. Its distribution channel was backed by service partners for post-sales and warranty
management. The significant growth in sales of Beetel modems and datacards was driven by leveraging its

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 Page 5 9B16A029

wide distribution network. Beetel also marketed and distributed a wide range of technology brands
including Panasonic, Samsung, Avaya, Polycom, Huawei, Extron, and SanDisk.6

HFCL

HFCL was another company that focused on the telecom sector, but it also had an interest in the turnkey
services segment. HFCL also provided telecom equipment and infrastructure. HFCL had its manufacturing
plants in Solan and Goa, and produced products such as access equipment, optical fibre cables, accessories,
and terminal equipment. HFCL also indulged in research and development work for other companies.7

STERLITE TECHNOLOGIES

Sterlite Technologies (Sterlite) provided transmission solutions for power and telecom industries across the
world. The Sterlite product mix included power conductors, telecommunication cables, optical fibres, end-
to-end telecom systems, and modems. Sterlite provided its services to telecom, information technology, and
power sectors as an application and systems integrator. It coherently assimilated old and new systems while
exploiting newer solutions. Sterlite helped its customers to realize the fastest time-to-revenue, with the
adroitness of its consulting services, multi-vendor technology, and software platforms.8

D-LINK

D-Link was a major player with an innovative approach to computer networking. This Taiwan-based
company had grown in the last 25 years to become a major global force. Its customers ranged from retail
(home) consumers to business or service providers. Its major interest was in providing up-to-date network
solutions for small, medium, and large enterprise businesses. D-Link focused on those distributors who
were committed to invest and excel.9

HUAWEI

Huawei Technologies (Huawei) was a world leader in creating futuristic telecommunications solutions. In
2014, Huawei’s products were used by the world’s top 45 telecom operators that served 170 countries and
the firm had a top line exceeding ₹2879.28 billion. In India, Huawei had successfully broadened its
customer base to both retail and business customers in product categories such as mobile broadband, home
convergence products, and smartphones. In 2010, Fast Company magazine acknowledged Huawei as one
of the world’s top ten most innovative companies.10 When Indian telecom companies advanced to newer
fourth-generation (4G) technologies, Huawei partnered with them to jointly innovate cost-effective
solutions.11

6
“About Beetel,” Beetel, accessed February 15, 2016, www.beetel.in/beetel/aboutus/aboutus.html.
7
“Himachal Futuristic Communications Ltd.,” Business Standard, accessed February 15, 2016, www.business-
standard.com/company/h-f-c-l-1189/information/company-history.
8
Sterlite Technologies Limited, slide presentation, accessed February 15, 2016, www.sterlitetechnologies.com/pdf/media-
kit/company%20presentation.pdf.
9
D-Link India, accessed February 15, 2016, http://115.124.123.225.
10
“Huawei Ranked 5th Most Innovative Firm,” The Financial Express, March 27, 2010, accessed February 26, 2016,
http://archive.financialexpress.com/news/huaweiranked5thmostinnovativefirm/596424.
11
“Corporate Information,” Huawei, accessed February 15, 2016, www.huawei.com/en/about-huawei.

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TERACOM DISTRIBUTOR SELECTION

In India, in the modem retail business, goods moved from a company’s central warehouse to appointed
distributors, who supplied the products to the retailers (called dealers), from whom the products ultimately
went to the end consumer. Broadly, distributor objectives could be sales, the profitability of individual items
stocked, and returns on investment. However, a company’s expectations of the appointed distributor would
be to provide an optimum investment in terms of vehicles or storage, a higher-quality salesforce, an increase
in reach by catering to the maximum retailers in the area, participating in promotions run by the company,
and educating retailers about the modems.

The keys to success in this retail segment were proper storage and warehousing facilities, as well as proper
market coverage by the distributor to ensure a wider distribution of the product. Telecom retailers needed
to have technically competent personnel to advise retail customers to purchase the right modems. In India,
modems were sold through five different types of retail outlets, namely mobile phone shops, hardware
stores, specialist retailers, supermarkets/hypermarkets, and department stores.

Located in the by-lanes or on shopping streets, these outlets were usually multi-brand outlets, with few
exclusively modem stores. Initially, electronic hardware stores dominated and accounted for the majority of
sales, but they soon lost significant market-share to mobile phone retailers. With the increasing penetration
of organized retailing and Internet accessibility, the requirement of shelf space for modems was also expected
to experience manifold increases. However, the availability of shelf space was not a major concern in the end,
and there were ample opportunities for companies to compete in India. The key differentiating factors were a
company’s effective distribution system run by the strong network of trained service technicians, its inventory
holdings, and the variety and amount of support for its promotional programs.

Considering the above facts, the crucial and strategic nature of the selection of a distributor for Teracom
became clear. Jain decided to test the market in Delhi first with one distributor. Then, based on the results
of that test and the lessons learned from it, he would roll out its product to India-wide distribution. In order
to seek applications for new distributors of Teracom modems, he advertised in newspapers, local
magazines, and trade journals. He also did direct canvassing of wholesalers in the telecom market, sent
direct mail to existing telecom distributors, and rented an exhibition space for its products at the Indian
International Trade Fair in Delhi. The newspaper and trade magazine advertisements specified the storage
and office space needed, the human resources required, and the finances to be invested. However, he found
that existing retailers proved to be the best source for recommending distributors that could be approached
about working with Teracom’s new retail division.

FOUR DISTRIBUTOR APPLICANTS

Jain shortlisted the following four distributors for the newly formed Teracom retail division for the Delhi
territory: Sharma and Sons, Pawan Distributors, Rajdhani Distributors, and Sambhu Brothers.

Sharma and Sons

Sharma and Sons had applied in response to Teracom’s newspaper advertisement. It was a proprietary firm
owned by Rahul Sharma. Sharma had left school when he inherited substantial wealth and property. Sharma
and Sons had begun operating only six months prior to its application and was a distributor of HFCL
modems. Sharma’s father had personal contact with the chief executive officer of HFCL, which had helped
the company secure that distributorship. Sharma and Sons had 10 salespeople for booking orders from retail
outlets, two vans for distributing products to retailers, and an average stock inventory of ₹4 million per

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month, against average monthly sales of ₹0.84 million. It covered 200 retail outlets to achieve these sales.
The firm operated from Munirka village, an unplanned and congested locality in south Delhi. Due to the
narrow lanes, it was difficult for a truck to reach its premises and deliver goods.

During the initial meetings, Sharma promised Teracom that he was willing to furnish a bank deposit, invest
in infrastructure, and maintain stock levels as per Teracom’s policy and requirements. Further, Sharma was
ready to buy 120 square metres of office space in Greater Kailash, an upscale locality in south Delhi. Sharma
was extremely keen for Sharma and Sons to be appointed a distributor of Teracom. During the discussions,
he agreed to abide by all its policy guidelines, if appointed as a distributor. However, Sharma did candidly
admit to his limited understanding of the modem product and that Sharma and Sons’ sales relationship with
retailers was at a primitive stage.

Pawan Distributors

Pawan Distributors, an institutional distributor for D-Link of optical fibre cables and modems, was another
applicant to Teracom. Institutional distribution dealt with providing goods or services to business
customers. Competition was fierce among institutional distributors, because their product lines were
undifferentiated. This forced institutional distributors to improve their customer service and also offer
incentives such as price cuts and discounts. Developing successful relationships with the key decision
makers of a given institution was critical for such institutional distributors.

Pawan Distributors supplied modems to various government organizations, institutions, and telecom
companies. In total, goods were supplied to 50 institutional customers by this firm. Pawan Distributor’s
salespeople would visit institutional buyers regularly to negotiate and receive orders. This firm employed
10 salespeople who visited various telecom companies to help with job contract manufacturing,
replenishing shelf stocks, and providing sufficient marketing and after-sales services support. Mostly, the
stocks were not kept in warehouses, and stocks for D-Link were provided on a consignment basis, but
Pawan Distributors did have a small warehouse to meet any emergency needs of its institutional customers.

Pawan Distributors was offered higher margins by D-Link, compared to other distributors, because of the
higher administrative costs of doing institutional sales in India. Its business sales turnover was ₹16 million
per year. If desired by clients, Pawan Distributors would also offer a value-added service by supplying
modems with co-branding. Pawan Distributors earned a profit of ₹2 million in 2014, which was channelled
back into the business. Pawan Distributors had been consolidating its business, and in 1998 it represented
six companies. However, in 2014 it was left with only two companies. Pawan Distributors booked a profit
of ₹2 million in 2014. After paying dividends to its business partners, a surplus of ₹1 million resulted,
which was channelled back into the business.

Rajdhani Distributors

Rajdhani Distributors ran an optical cable and 3G datacard shop in the Rajouri Garden area of Delhi. It had
been a 3G datacard distributor of Teracom’s products for the previous two years. In the preceding five
years, it had developed a favourable relationship with the retailers in the territory that it supplied. It was
supplying 3G datacards to approximately 150 retailers in Delhi. Rajdhani Distributors also doubled as a
retail outlet, and nearly 20 per cent of its ₹8 million per annum sales were contributed from its own or its
family-owned six retail outlets in the same area. Although it had six salespeople and one van to cover the
retail market, its salespeople were mostly used to selling the 3G datacards from a retail outlet, and would

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rarely visit the market to fetch orders from other retailers. Usually, its salespeople visited retail outlets in
the morning and took supply orders in the evening.

Rajdhani Distributors wanted to expand by venturing into the modem distribution business. It was ready to
invest in stock as per the company requirements, but was not willing to invest in a vehicle to cover a larger
number of retailers, and also did not want to exit from its other retail business.

Sambhu Brothers

Sambhu Brothers was a current distributor in Delhi for the products of Teracom’s competitor Beetel. The
firm had grown in value from ₹1.8 million to ₹3.8 million per month in less than three years. It covered
modem retailers all around Delhi. Sambhu Brothers supplied modems to hardware shops, multi-brand
outlets, mobile stores, and other outlets. It had started as a distributor for four different modem companies,
but over time had left all other companies except Beetel. Sambhu Brothers felt that Beetel was a promising
company for future growth opportunities and it had developed a good working relationship with the
company. Sambhu Brothers also felt that working with Beetel provided the opportunity for an attractive
return on investment. As a distributor, Sambhu Brothers dealt mainly with buying modems from Beetel,
supplying modems to retailers, implementing Beetel’s retail visibility activities, and extending credit to
retailers.

Beetel performed weekly deliveries to its distributors and guided its distributors on its benchmarked
inventory management practices. Against sales of ₹6 million per month, Sambhu Brothers always
maintained an inventory of 20 days’ stock. It covered nearly 400 out of a total of 600 retail outlets in the
city. Beetel’s sales officers and Sambhu Brothers’ salespeople jointly decided the route, scheduling for
retailers’ coverage and goods deliveries. The route schedule was a list of retail outlets that needed to be
covered on any particular day in a given area. The Beetel norm was that each salesperson for a distributor
should cover at least 10 retail stores in a day.

An effective route schedule resulted in the optimal utilization of distributor resources such as human
resources, vehicles, and time. Sambhu Brothers had six dedicated vans, as well as enough sales and delivery
people to supply the Delhi retail market. On an average month, salespeople could book new orders for ₹3
million from 300 retail outlets, and the rest were repeat orders.

On a typical day, each salesperson’s job involved the coverage of retailers as per the decided route plan,
product canvassing, booking orders, ensuring stock deliveries, and collecting dues from retailers. The
salesperson also ensured brand visibility of Beetel products at retail outlets through shelf displays, painting
of shops, desktop displays, and other promotional activities. Each of Sambhu Brothers’ salespeople was
entitled to eight days of casual and medical leave in a year. However, a high level of absenteeism was
observed during the first week of the month, when salary was paid. In an average month, four days of
absenteeism were observed per salesperson. Most of the salespeople were not technically qualified, and
they lacked adequate product knowledge.

DECISION

Puneet Jain’s task now was to decide what the main criteria should be for evaluating the four applicants.

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EXHIBIT 1: BALANCE SHEET OF TERACOM AS OF 2014 (₹)

As of March As of March
31, 2014 31, 2013
SOURCES OF FUNDS
Shareholders’ funds
(i) Share capital 124,796,500 123,177,000
(ii) Reserves and surplus 4,420,050,325 3,116,487,742
4,544,846,825 3,239,664,742
Loan funds
(i) Secured loans 3,327,781,185 2,646,484,789
(ii) Unsecured loans 167,843,172 290,000,000
3,495,624,357 2,936,484,789
Deferred tax liability (net) 54,322,385 22,904,847
8,094,793,567 6,199,054,378
APPLICATION OF FUNDS
Fixed assets
i. Gross block 2,968,427,321 2,509,597,465
ii. Less: Accumulated 329,893,831 206,287,040
depreciation, amortization,
and impairment
iii. Net block 2,638,533,490 2,303,310,425
iv. Capital work in progress 432,002,395 428,635,558

3,070,535,885 2,731,945,983
Investments 870,000 19,181,209
Current assets, loans, and advances

i. Inventories 3,049,295,357 538,819,973

ii. Sundry debtors 6,375,030,037 5,589,309,712
iii. Cash and bank balances 281,667,542 356,936,495
iv. Loans and advances 643,960,143 309,069,949
v. Other current assets 205,289,572 186,277,122
9,555,242,651 6,980,413,251
Less: Current liabilities and provisions

Current liabilities 4,489,711,672 3,524,336,838

Provisions 42,143,297 8,149,227
Net current assets 3,023,387,682 2,447,927,186
8,094,793,567 6,199,054,378

Source: Company files.

This document is authorized for use only in Prof. Prashant Kumar's Marketing Planning and Implementation (MPITBJ24-2), Term - II, BMJ 2024-26 at Xavier Labour Relations Institute (XLRI)
from Sep 2024 to Mar 2025.