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Top five business successes of 2012

The year 2012 may have been a rough year for corporate India, but it wasn't without its success stories. A home grown drug maker came back from the brink, Vijay Mallya's United Spirits made investors rich overnight and India's outsourcing industry saw the rise of a new bellwether.
Here are the top five business successes of 2012:
  1. Wockhardt back from the brink: Drug maker Wockhardt's aggressive acquisitions between 2006 and 2007 pushed the company to the brink amid the global financial crisis. Creditors were breathing down the neck, investors had all but written it off. The management put a turnaround strategy in place - increasing the pace of drug launches in key markets like the U.S. and increasing focus on research and development to improve margins. Sale of the nutrition business reduced leverage. And a one time settlement with FCCB holders removed the legal overhang. The stock jumped nearly 450 per cent this year. (Watch: Top five success stories of 2012)

  2. United Spirits successfully brings in Diageo: It was a deal which changed the mood on the Dalal Street. After complex negotiations, it was announced that British spirits maker Diageo would pick up 27.4 per cent stake in United Spirits and follow it up with an open offer. The deal is expected to help United Spirits, which controls 42 per cent of the domestic market in branded spirits, in cutting Rs 8,000 crore in debt and shore up margins. Investors raked in a huge 300 per cent return on the stock in just seven months.

  3. Tatas make a success of Jaguar Land Rover: Tata Motors' acquisition of Jaguar Land Rover in 2008 had drawn its share of investor criticism. The deal increasingly looked like a flawed idea amid the global financial crisis. This year JLR sales volumes and profits hit all-time high. Some of JLR's plants had to move into a 24 hour production cycle to meet demand. A large chunk of this demand came from China which accounted for nearly 20 per cent of JLR's annual sales. Production sites are now being contemplated in other locations like Saudi Arabia & Brazil as well.  The all new 4th generation Range Rover from Land Rover and the F-Type sports car from Jaguar hit the streets in 2012 and promise to drive growth and profits in 2013. The stock returned a solid 60 per cent to investors.

  4. TCS becomes the new bellwether: Not every success of 2012 was a turnaround story. One was a story of consistent performance built up over years -- Tata Consultancy Services. Over the years, TCS has firmly established itself as the true bellwether in the tech space. That distinction became clearer in 2012 as rival Infosys struggled to deliver on promised growth. With Infosys and Wipro struggling, TCS established itself as the clear leader with industry beating volume growth and firm margins. It remained the investor favorite and battled it out with Reliance Industry for the top spot in terms of market capitalisation.

  5. Digitisation finally kicks off: From individual success stories to the story of an industry which "switched" to seemingly better times in 2012. The much delayed process of digitisation finally kicked off this year, although in phases. Phase 1 was restricted to the four metros with a November deadline. Despite some hiccups in cities like Chennai and Kolkatta, a high rate of conversion was achieved. Data released by TAM showed that 90 per cent conversion had been achieved across the four metros with the highest rates seen in Delhi and Mumbai. Phase 2 of digitisation involves 38 cities with a population of one million+ each and the deadline for this phase is set at March 31. The move towards digitisation is considered to be a game changer for the broadcast sector.



Story first published on: December 27, 2012 10:56 (IST)

Tags: TCS, Infosys, United Spirits, Diageo, Tata Motors, JLR, Wockhardt

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