Puneet Dalmia
Designation: Managing Director of Dalmia Cement (Bharat) Ltd. He first joined the company in 1997 at age 25, but left in two years and set up JobsAhead.com with Alok Mittal
What He Has Done: Transformed the 70-year-old family-managed business into a professional organisation where the role of the family is less hands-on and more about big-picture strategic planning
How that Has Paid Off In 2004, before the transformation began, the organisation’s topline stood at $100 million. It will be around $800-$850 million by the end of 2010
What He’s Doing Next Changing the gene pool of the organisation to cater to fast growth, training a staid old economy company to be more consumer-focussed, and instilling performance management measures and variable pay
I worked in Dalmia Cement (Bharat) Ltd. from 1997-99 and then I started JobsAhead.com. I sold it and came back in 2004. I could see things with fresh eyes. There were huge strengths in the company that weren’t being fully leveraged. One, we had always had superior profitability compared to the industry. Two, operating margins were consistently one of the highest in the industry.
Family businesses have great inherent advantages compared to professional businesses. One, we can take a very long-term view. Two, a family business has a core shareholder base which thinks in terms of generations and not quarters. There is a huge commitment to create and enhance value because you have big skin in the game. Family unity and preserving the core shareholder base is crucial. Our family has split in the past and that has weakened us.
(This story appears in the 19 March, 2010 issue of Forbes India. To visit our Archives, click here.)
Very interesting talk and an eye opener in quite a few ways
on Mar 7, 2010As a 2nd Generation Family business owner, I think this is a great article. You can see the common issues that face every business family. Great job Punit Dalmia !
on Mar 10, 2010