“Indian Firms Shift Focus From Saving Money To Growing Faster”
In the January 28, 2010 issue of Livemint, Booz & Company Principal Piyush Doshi (India) said as the economy in India getting back on track, albeit slowly, companies in India are restocking their inventories and focusing again on growth. “Around (last) May (and) June, companies switched from the mindset of cash conservation to focus back on growth,” said Doshi. “But most are retaining the lessons learned last year and not going overboard. It’s like (going) back to the days of early 2008.” Doshi authored a Booz & Company study that found that many Indian firms improved their money management skills during the downturn to pare working capital needs, and has started to focus on growth again as the economy slowly improves. In its report, Booz & Company studied 158 firms from sectors such as automobiles, telecom and steel, and found that they had reduced their net working capital by seven days to 30 days. Posting the maximum cuts in working capital were automotive and fertilizer companies, with Uttam Galva Steels Ltd, Sun Pharmaceutical Industries Ltd. and Mahindra and Mahindra Ltd. among the firms that achieved the highest reductions. The Press Trust of India carried a similar article about the Booz & Company report.