We hosted Ajay Piramal, MD and CEO of Piramal Enterprises, as part of CEO Track at our conference. Following are the key takeaways from his presentation. Since inception, Piramal Enterprises (PEL) has been focusing on doing the right thing the right way, even if it meant incurring significant costs in the process.
Piramal believes that this value system has helped the group to be successful across businesses and inorganic expansion. Success of each business has in turn created significant economic values.
The stock has delivered return at a 30% CAGR since inception and 47% since the sale of its pharma business to Abbott. Significant investment is committed to each of its financial services, pharma and IT businesses.
Management is looking at adding retail financing businesses apart from wholesale finance currently. PEL already has committed significant investments in Shriram Group. After each of these businesses achieves critical size, the company will look to demerge them
Management believes that there is significant potential in real estate financing, as banks are not allowed to lend money for numerous activities. In real estate space, PEL engages with developers from project inception to completion, thereby bringing value to developers.
The company provides a suite of products, ranging from debt to equity capital. It has built a loan book of Rs 161 billion + over the past five years.