EFFICIENT CAPITAL ALLOCATION

One of the key reasons of our success in transforming this organisation multiple times was our approach of efficiently allocating capital across our business portfolio. Throughout our journey of last 28 years, we have always remain committed towards efficiently allocating capital while undertaking controlled risk, to consistently generate higher profitability and deliver superior shareholder returns.

Since the sale of Domestic Formulations business, we have been extremely efficient in allocating our capital to existing as well new businesses for funding their organic and inorganic opportunities. Our significant improvement in growth and profitability is a clear testimony of this effective allocation. During the period, we also exited few businesses that were either non-strategic/non-core in nature or required investments for a longer time horizon, involving higher risk.


~₹15,000 CRORES REALISED (NET OF TAXES) FROM ABBOTT ON SALE OF OUR DOMESTIC FORMULATIONS BUSINESS

+

CASH FLOW REALISED FROM OUR OPERATIONS OVER LAST FEW YEARS

KEY CAPITAL ALLOCATIONS

Invested ₹13,048 Crores (on B/S) & ₹8,717 Crores (off B/S) in FS

  • Average yields on loan
    - 17%
  • RoE in FS business
    - 25%+
  • Vodafone deal
    - Realised IRR @ 19% p.a

₹4,583 Crores invested
in
Shriram Group

  • Mr. Ajay Piramal now Chairman of Shriram Capital (Holdco)
  • Contributing to Shriram's long-term growth strategy

~₹3,600 Crores
invested
in Healthcare

  • 5 Year Revenue CAGR- ~17%
  • Selective acquisitions in OTC and Pharma Solutions
  • Discontinued NCE research
  • Exited non-strategic businesses

~₹4,300 Crores
invested in Information
Management

  • Business, geographic, currency diversification
  • Strong profitability margins

₹4,866 Crores of
capital returned to
shareholders

Capital returned to shareholders through

  • Buyback
  • Annual dividends
  • Special dividend