Thursday, October 19, 2006

‘N’ot ‘T’hat ‘P’SU ‘C’o. any more...

IIPM MANAGEMENT INSTITUTE
Breaking the negative image around the incapabilities of being a typical ‘PSU’, NTPC has proved its mettle in the Indian power sector. Established in 1975, with an aim to accelerate production of power in the country, NTPC has grown up to become sectorally the number one company in the B&E Power 100 list; and of course, the company also has the Navaratna designation.

NTPC’s profits, and even its return on capital employed, are the highest in the power industry. The corporation earned a profit of Rs.58 billion in 2005-06, recording a yoy growth of 18%. Considering returns to share holders, NTPC’s share price has climbed up 25% since the markets started recovering on June 15, 2006. And one critical factor behind NTPC’s successful performance – of course apart from legacy government protectionist systems – has been its full fl edged focus on organic growth strategies, at the same time not compromising on consolidating forward and backward linkages.

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Source :
IIPM Editorial, 2006

An IIPM and Management Guru Professor Arindam Chaudhuri's Initiative

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