India Inc Cash Surplus: Strategy or Lack of Opportunity?
ICMR HOME | Case Studies Collection
For delivery in electronic format: Rs. 200;
For delivery through courier (within India): Rs. 200 + Rs. 25 for Shipping & Handling Charges
» Finance Case
"Only companies with large surpluses will take some risk and invest in equities. These long-term investors expect just 14-15% returns on equity investments. The total cash pile of BSE 500's Richie Rich has grown to Rs. 1,285 billion (bn) from Rs.1,100 billion (bn) 2010, excluding banks and NBFCs." 1
- Ramkrishna Kashelkar, The Economic Times 2, July 12, 2011.
but the companies had a strong reason for keeping such cash pile. Rather than keeping the shareholders' cash idle or in liquid investments, the companies were planning their future strategy around the surplus excess cash. On the right strategy with the excess cash, Seshagiri Rao, CFO & joint MD of JSW Steel Group, commented, "The company keeps aside surplus cash as insurance for the future or invests the same in the business. Investments in business are better than any investing in any liquid asset."4
1] Ramkrishna Kashelkar, "Total Cash Pile of Bombay Stock Exchange's 500 Companies Like Bharat Heavy Electricals, Lakshmi Machine Works, Bharat Electronics and Others Rises 17%," www. economictimes.indiatimes.com, July 12, 2011.
Case Studies Links:-
Short Case Studies,
Simplified Case Studies.
Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.
Business Reports Link:- Business Reports.
Books:- Textbooks, Work Books, Case Study Volumes.
|Business Environment||Business Ethics||Business Reports||Business Strategy|
|Corporate Governance||Economics||Enterprise Risk Management||Finance|
|HRM||Innovation||Insurance||IT and Systems|
|Leadership and Entrepreneurship||Marketing||Miscellaneous||Operations|
|Project Management||Short Case Studies||Cases in other Languages||Free Case Studies|