Friday, August 31, 2012

INDIA’S 100 MOST PROFITABLE COMPANIES

As the world emerges from global recession, businesses should focus on restoring their profitability. But only short-sighted businesses do so at the expense of the pursuit of a broader purpose, writes Amit Bhatia, scion of the l. N. Mittal group, founder of Mittal Champions Trust and Swordfish Investments

One example in which I am personally involved is the Mittal Champions Trust, set up in November 2005 to encourage the next generation of great Indian athletes. It aims to provide the training, coaching expertise, equipment and nutrition advice to those who otherwise might not fulfil their potential. We have already had some notable successes, not least Abhinav Bindra bringing home India’s first Olympic gold medal at the Beijing Games in 2008.

Success at international sporting events not only brings considerable pride to a nation; it also encourages children to pay more attention to health and fitness and teaches them valuable lessons about teamwork and focus. I am extremely proud of the work of the Mittal Champions Trust and hope that we can bring home more medals at the Commonwealth Games later this year.

Since becoming an owner of Queens Park Rangers and subsequently Chairman for its charitable organisation, QPR Community Trust, I have taken great pride in the endeavours to utilise the QPR brand to enhance the lives of those in the local community and further afield. While success on the field and the club’s business infrastructure must always be of greatest importance, the Trust also uses its resources and influences to support over 100,000 young adults each year.

The well-known business writer Jim Collins has always argued that it is those businesses with a strong purpose beyond profit-making that will be most successful in the long-term. Certainly ArcelorMittal, the company founded and run by my father-in-law Lakshmi Mittal, follows this approach strictly.

ArcelorMittal’s employees are engaged around the common purpose of helping to facilitate the infrastructure of the modern world. It does this predominantly through the product it makes, but also through the work of the ArcelorMittal Foundation in addressing various social issues. ArcelorMittal’s investment in community projects throughout Brazil is one of the reasons why the company was recently acknowledged as the best company to work for in the country. Given Brazil’s importance to ArcelorMittal globally, this really is an example of doing well by doing good.

A successful business is a socially aware business and one recognises that with investment and growth comes a greater purpose: responsibility to individuals and society. This requires a real commitment – not just money, but time, resources and strategic priority. This is why many businesses in the developing world focus on projects that, after initial investment, become self-sustainable.

It is only by paying more attention to the quality of life, in the broadest sense, of the communities in which they work, that businesses can hope to achieve lasting growth and prosperity. This requires a purpose beyond the simple pursuit of profit and organisations with a desire to succeed over the longer term would do well to continue to remember it.



          

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posted by Editorial at 4:47 PM