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| Investors, lenders look for performance, not promises: MDA |
| Press Trust of India / Mumbai Nov 17, 2009, 15:57 IST |
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Industrialist Mukesh Ambani today said capital markets now appreciate companies that create real value rather than those that make believe, and likewise performance more than promises help companies raise funds.
Speaking to shareholders at the Annual General Meeting of Reliance Industries, its Chairman and MD said that the fundamentals of the business world has changed after the global financial crisis.
"Credit now flocks to companies with performance rather than promise. Capital markets now value companies that create monetary value rather than make-believe value," Ambani said.
Ambani, who also happens to be the main promoter of the country's largest corporate house, further said that even the compensation was now linked to "results rather than work."
He further said that companies were now tending to factor flexibility more than feasibility and new business models driven by new cost structures, partnerships, virtualisation and innovation were coming in vogue.
Recognising these changes, he said RIL has "set in motion a business transformation initiative." The company was "developing a new breed of business, operational and functional leaders" and was piloting projects in areas like alternative energy and in support of rural transformation.
"Reliance envisages a multi-fold growth in the near term, with a far more widespread global footprint," he added. Asserting that "the best of Reliance is yet to come," he said that the company was transforming itself accordingly.
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