Narendra murkumbi biography of george
ET Awards 2010: Narendra Murkumbi, Shree Renuka Sugars - Entrepreneur of the Year
While most of his batch took up high paying jobs in the metros after graduating from the Indian Institute of Management Ahmedabad, Narendra Murkumbireturned to his hometown, Belgaum, in northern Karnataka. At a time when the government had just begun the process of liberalising the sugar industry, he started Shree Renuka Sugars, building capacity by buying or leasing a number of distressed sugar mills across the country.
Then he came up with the novel idea of setting up port-based units to process raw sugar imported in bulk. Last year, Murkumbi went global with a vengeance, acquiring two companies in the world’s largest sugar producing nation, Brazil. Today, Shree Renuka is India’s largest sugar company.
What's the first award you remember winning? How did it feel?
An essay competition in primary school.
How easy is the transition from SME to MNC?
The main challenge is organisational. In scaling up, the biggest challenge is to let go and delegate. We have to create empowered teams in each part of the global business.
What's the one change we need to prepare for in the next decade?
India has a huge challenge of food and water security.
How did the global slowdown change your strategic thinking?
We developed a deeper sensitivity to balance sheet leverage and managing volatility. However, coming successfully out of the crisis has created a great mood of confidence in being able to weather extreme events.
What is the one bet you made that paid off for your organisation?
Going into Brazil.
How can we manage the India-Bharat growth parity?
By boosting rural incomes & building of rural infrastructure.
What's been the one big idea that has sustained you?
Scale and reach in our business is top priority.
Then he came up with the novel idea of setting up port-based units to process raw sugar imported in bulk. Last year, Murkumbi went global with a vengeance, acquiring two companies in the world’s largest sugar producing nation, Brazil. Today, Shree Renuka is India’s largest sugar company.
What's the first award you remember winning? How did it feel?
An essay competition in primary school.
How easy is the transition from SME to MNC?
The main challenge is organisational. In scaling up, the biggest challenge is to let go and delegate. We have to create empowered teams in each part of the global business.
What's the one change we need to prepare for in the next decade?
India has a huge challenge of food and water security.
How did the global slowdown change your strategic thinking?
We developed a deeper sensitivity to balance sheet leverage and managing volatility. However, coming successfully out of the crisis has created a great mood of confidence in being able to weather extreme events.
What is the one bet you made that paid off for your organisation?
Going into Brazil.
How can we manage the India-Bharat growth parity?
By boosting rural incomes & building of rural infrastructure.
What's been the one big idea that has sustained you?
Scale and reach in our business is top priority.
New system for ethanol good, demand should further improve: Narendra Murkumbi, Shree Renuka Sugars
In a chat with ET Now, Narendra Murkumbi of Shree Renuka Sugars talks about the sugar sector. Excerpts:
ET Now: Industry stands to gain about 300 crores but given the pain and debt and the problems that the industry is facing, this is just a drop in the ocean. What are your thoughts on the same?
Narendra Murkumbi:The focus on the ethanolprogramme has been to make sure that it provides an alternative avenue for sugarcane. I see that in two years if ethanol production goes up from current levels of about 100 crores litre per year to about 250 litre, then we are diverting almost 2 to 2.5 million tonnes of sugar production to make ethanol. So in terms of next morning, it is not going to make much of a difference but over the next two years, this creates the right financial incentive for all sugar mills to not only invest but also produce more ethanol from existing facilities.
ET Now: But the molasses input benefit can now be obtained. How much of the tenders have been floated already for ethanol? Is it time bound or do you see revolving tenders coming in for this?
Narendra Murkumbi:The new system is quite good. The price is fixed for oil companies at Rs 48 per litre which is delivered to the depot. With today’s notification, our net price rises. The oil companies do not face any additional burden but our net price at the distillery now rises to about Rs 45-46 as against the previous level of Rs 42.
With the oil companies coming out with these at regular intervals, the demand is not the problem. In fact, the current availability stands at only around 40-50%. So, to make the additional supply which is needed for the programme to achieve its target, we will need to create higher and richer varieties of molasses which effectively reduces sugar production. That is the real positive benefit of this ethanol policy.
ET Now: We are working with the Rs 3 on mo1. “ Narendra Murkumbi ”Group Members:Sneha Manave (25)Prashant Mishra (27)Srinivas Mittapelli (29)Rehan Momin (31)Nilesh Nitinaware (33)Manjiri Pathak (35)Star of Belgaum 2. Introduction to Shree Renuka SugarsIndustry : Sugar 3. Founded : 1998 4. Founder(s): Narendra Murkumbi & Vidya Murkumbi 5. Headquarters: Mumbai, Maharashtra, India 6. Revenue : 2,239.80 Cr 7. Profit : 143.50 CrVISION STATEMENT: “To become the most efficient producer of sugar and the largest marketer of sugar and ethanol in India with a renewable fuel business component.” CORE ACTIVITIES: - Fully integrated company focused on manufacturing and marketing sugar, power and ethanol. -Large fuel (ethanol) and renewable energy capacities 8. PRODUCTS: -Sugar -Power -Ethanol -Bio-fertilisers 9. About Narendra MurkumbiHe is from family of tradersSchooling from St. Paul’s High SchoolElectronics & Communication EngineeringPGDM from IIM A in 1994What he would do crystallised in the second year of PGDMRanked 93rd in recent 2009 Forbes India rich list 10. Compensation:Total Annual Cash Compensation(Rs.2,100,000)+Other Long Term Compensation(Rs.22,360,000)=Total Calculated Compensation(Rs.24,460,000)Won ET award or Corporate Excellence 2009-10Former Director -ICICI Securities -ICICI Bank LtdChairman of the Board -KBK Chem-Engineering Ltd 11. Business Model “Murkumbi BioAgro” Est. in 1994 12. Capital 30 lakh 13. Manufactures Pesticides 14. Spread in 8 states in 4 years 15. In 1998 achieved turnover of Rs. 5 cr. 16. Not satisfied “ Shree Renuka Sugars” -Est. in 1998-Capital 5cr.-Short of capital so issues shares-Purchased old factory of Andhra Pradesh-Shifted to Belgaum 17. Innovation Creativity & Opportunities 18. CORPORATE SOCIAL RESPONSIBILITYEDUCATION:-ENGLISH MEDIUM PRIMARY SCHOOL -RAIBAG POLYTECHNIC -COMMUNITY DEVELOPMENT SCHEMES -SAKHAR SHALAS -SCHOLARSHIP HEALTHCARE INITIATIVE: -HEALTHCARE CENTRES (MUNOLI,KOKAT Narendra Murkumbi: The focus on
ET Now: Industry stands to gain about 300 crores but given the pain and debt and the problems that the industry is facing, this is just a drop in the ocean. What are your thoughts on the same?
Narendra Murkumbi:The focus on the ethanolprogramme has been to make sure that it provides an alternative avenue for sugarcane. I see that in two years if ethanol production goes up from current levels of about 100 crores litre per year to about 250 litre, then we are diverting almost 2 to 2.5 million tonnes of sugar production to make ethanol. So in terms of next morning, it is not going to make much of a difference but over the next two years, this creates the right financial incentive for all sugar mills to not only invest but also produce more ethanol from existing facilities.
ET Now: But the molasses input benefit can now be obtained. How much of the tenders have been floated already for ethanol? Is it time bound or do you see revolving tenders coming in for this?
Narendra Murkumbi:The new system is quite good. The price is fixed for oil companies at Rs 48 per litre which is delivered to the depot. With today’s notification, our net price rises. The oil companies do not face any additional burden but our net price at the distillery now rises to about Rs 45-46 as against the previous level of Rs 42.
With the oil companies coming out with these at regular intervals, the demand is not the problem. In fact, the current availability stands at only around 40-50%. So, to make the additional supply which is needed for the programme to achieve its target, we will need to create higher and richer varieties of molasses which effectively reduces sugar production. That is the real positive benefit of this ethanol policy.
ET Now: We are working with the Rs 3 on mo
Narendra murkumbi
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