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But what’s noteworthy about Tata Steel’s performance is that it is also profitably reinvesting capital to grow, even as the CEO counters the fallout of the 15% export duty. While exports constitute 10-15% of volume, Narendran changed levers to keep growth going domestically by acquiring Bhushan Steel and Usha Martin’s steel business for around ₹40,000 crore. “I expect Indian demand to be around 250 MT over the next 10 years and Tata Steel is poised with just brownfield expansions at existing facilities,” Narendran tells Fortune India.
Riding the commodity wave also is Sumit Deb of NMDC, which has a three-year average ROCE of 28.90%, aided by strong profit and sales growth of 26.5% and 28.7%, respectively, over the three-year period. Deb, who has been at the helm only for two years, is overseeing a demerger plan that will see NMDC moving up the value chain by creating two separate units for iron ore mining, and a 3 million tonne steel plant. “Our long-term plan is to go to 100 million tonne (ore capacity) by 2030. And this will come primarily from our own mines,” Deb tells Fortune India.
While the metals space has been on the upswing, the pharma and chemicals space, too, showed zest. While two pharma CEOs, Satyanarayana Chava of Laurus Labs and Murali K. Divi of Divi’s Laboratories, are among the Best CEOs in 2022, Yogesh M. Kothari of Alkyl Amines has aced the return charts in the chemicals sector.
The winners from the pharma pack, Divi’s Labs, delivered average ROCE of 30.58% over the past three years, while its smaller peer, Laurus Labs, fetched 24.56%. Laurus, which got listed in December 2016, has a strong presence in generic APIs & FDFs (formulations), custom synthesis and biotechnology. “Even though we are leaders in antiretroviral APIs, only 25% of our revenue comes from that. The products we started developing in 2017 are determining our success right now,” reveals Chava to Fortune India. One-third of Laurus’ sales are customer-driven through contract manufacturing projects, while two-thirds is guided by its own strategy. Even as Chava is making the most of the CRAMs (contract research and manufacturing services) opportunity, Divi has thus far been the poster boy of CRAMs given its strong relationships and execution track record.
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