The Unusual Billionaires Book: A Leadership, Innovation, and Long-Term Success Masterclass

T

Have you ever wondered why some companies thrive in super competitive spaces? Saurabh Mukherjeaโ€™s The Unusual Billionaires goes deep into seven of Indiaโ€™s most exceptional companies, presenting riveting corporate stories to find out how they have stayed ahead of the curve. The book is aimed at casual readers and avoids heavy business jargon. Instead, it tells inspiring stories of corporate success and innovation. The companies covered arenโ€™t just your average companies. Their ability to maintain high growth and loyalty makes them, well, unusual.

Unusual Billionaires

Whatโ€™s Special About These Unusual Companies?

Mukherjea looks at companies like Asian Paints, HDFC Bank, and Page Industries. These firms are outliersโ€”not because of luck, but because of their unwavering commitment to their core business. Axis Bank, for example, achieved significant financial performance and sustained growth by shifting from a product-oriented to a customer-oriented approach under its leadership.

Take Asian Paints, for instance. They didnโ€™t just sell paint; they used technology to transform the business. They invested in ERP systems and tinting machines to get an edge that competitors couldnโ€™t match. This tech-enabled approach not only kept operations efficient but also customer satisfaction. Asian Paints is a prime example of how Indian companies leverage technology and innovation to stay ahead.

And then thereโ€™s Page Industries. Building an inspirational brand out of something as mundane as innerwear isnโ€™t easy, yet they did it without offering discounts. By relying on brand loyalty and quality, they grew 35% CAGR in revenue between FY09 and FY15, way ahead of Rupa and Maxwell. Thatโ€™s the kind of growth that sets these companies apart. Page Industries has consistently catered to the needs and preferences of Indian consumers, building strong brand loyalty through innovative practices.

Leadership: The Engine

Behind each of these unusual companies is a visionary corporate leader. Leaders like Harsh Mariwala of Marico saw opportunities, whereas others saw a saturated market. While competitors were happy with the status quo, Mariwala focused on Maricoโ€™s core business and even avoided hostile buyout bids from industry giants like Hindustan Unilever (HUL). His long-term vision and belief in Maricoโ€™s future helped him turn it into a FMCG giant.

Leaders in these companies didnโ€™t chase trends or short-term gains. They had the vision to focus on long-term growth and profitability. Focusing on core operations and delegating authority to top management are pivotal decisions that can enhance a company’s life. Their success is a masterclass in how leadership can shape long-term success.

The Unusual-Billionaires book

Thinking Unconventionally

What really sets these leaders apart is their ability to think differently. They didnโ€™t follow the herdโ€”they created the trend. Take Asian Paints again. Instead of just selling paint, they built a moat around their business by investing in technology and people. This forward-thinking approach meant they were ahead of the curve even as others were trying to catch up.

Value investing is also a critical approach to understanding successful business strategies.

Marico
Marico

Marico followed a similar path. By expanding into value-added hair oils (VAHO) and acquiring Nihar, they retained over 50% of the coconut oil market while growing in new segments. More prominent players like Dabur and HUL struggled to keep up, proving that thinking outside the box isnโ€™t just a competitive advantageโ€”itโ€™s a survival strategy.

Smart Capital Allocation: The Secret Sauce for Financial Performance

One of the key themes of The Unusual Billionaires is smart capital allocation. Mukherjea argues that these companies didnโ€™t grow by chance. They made deliberate, strategic decisions on where to invest their resources, ensuring optimal use of capital employed.

HDFC Bank is a case in point. Instead of getting into high-growth, high-risk ventures, they focused on building a low-cost liability franchise to use their capital efficiently. This helped them to be profitable even in turbulent times.

HDFC Bank

This approach highlights the importance of financial performance as a measure of effective capital utilization.

Similarly, Page Industries didnโ€™t chase trends by offering discounts or diversifying into unrelated businesses. They stayed focused on their core businessโ€”premium clothingโ€”and built a loyal customer base by prioritizing quality over price.

Innovation: The Lifeblood of Truly Outstanding Companies

Innovation isnโ€™t just a word for these companiesโ€”itโ€™s their DNA. Mukherjea shows how Astral Poly Technik took a commoditized market like pipes and turned it into a brand story. Instead of competing on price alone, they introduced new products to build customer trust and loyalty. This innovation helped them deliver high growth, achieving significant revenue increases while maintaining profitability over a decade.

HDFC Bank and Asian Paints also stand out for their use of technology. From HDFC Bankโ€™s 10-second pre-approved loans to Asian Paints using data analytics to optimize its supply chain, these companies didnโ€™t just adopt technologyโ€”they used it to get ahead of the competition. Their innovation ability has been the game changer that has set them apart in a digital world.

The IBAS Framework: The Formula for Success

Mukherjea uses the IBAS framework to explain the success of these companies: innovation, Brands and Reputation, Architecture and Strategic Assets. These four pillars have helped them build sustainable competitive advantages and insulate themselves from market volatility.

Ambit Capital has significantly contributed to analyzing the competitive advantages and sustainable growth of leading firms within the Indian market.

For example, Asian Paints has done well in innovation and architecture by using technology to simplify operations and enhance customer delight. Page Industries has built strong brands and reputations by staying true to its core values and is a leader in the industry without relying on discounts.

Challenges: The Real Test of Resilience

No companyโ€™s journey is without hurdles, and The Unusual Billionaires shows how these companies have overcome significant challenges over the last decade. Whether it was regulatory hurdles, market volatility or intense competition, they stayed the course and focused on the long term.

HDFC Bank, for example, played it safe during the pre-Lehman credit boom and built a low-cost liability base while others took on high-risk loans. This strategy paid off when the crisis hit, and HDFC was well-placed to weather the storm while others struggled.

Similarly, Page Industries stuck to its no-discount policy even when competitors offered discounts. This bold move paid off and strengthened their brand and customer loyalty in the long run. The same company also made strategic decisions, such as aggressive acquisitions, which influenced its trajectory and ownership changes over time.

Conclusion: A Must-Read for Investors and Entrepreneurs

In conclusion, The Unusual Billionaires is more than just a bunch of corporate success stories. Itโ€™s a masterclass of leadership, innovation, and capital allocation. This is a must-read for investors, entrepreneurs, or anyone interested in how outstanding companies grow and sustain success.

Investors and Entrepreneurs

Mukherjea gives you the what, how, and why of these truly outstanding companies. Their long-term strategies, innovative approaches, and smart capital allocation set them apart. The Unusual Billionaires is a must-read if you want to know the secret behind Indiaโ€™s most successful companies.

This book doesnโ€™t just tell you what these companies did; it shows you how they did it and why it worked. Whether you are an investor looking to find great companies or an entrepreneur looking for inspiration, this book should be on your shelf.

My Rating:-

Goodreads Rating: 4.01

The Unusual Billionaires Book Reviewed On:

  • e-book
  • Total pages: 411
  • Genre: Non-fiction/Finance
  • The Unusual Billionaires by Saurabh Mukherjea

4.9 8 votes
Article Rating
Subscribe
Notify of
guest
23 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
Anjishnu Biswas

An enjoyable article worth reading

Anil Chamoli

The review makes it very interesting & engaging reading and provides deep insight to the reader about contents of the book.
Excellent job by Mr Vishal ! My best wishes to him.

Nitish Kumar

Very Interesting Blogs

CA. Nikhil Kumar

Brilliant research and concise presentation.. Warm wishes…

Taushif Alam

Really enjoyable

Mukesh Kumar Dwivedi

Absolutely interesting blog

Jayant Pandey

Interesting blog

Sarthak

A very to the point article. Great read!

Deepak Pandey

Very useful blog

Sharma Nand Sharma

Absolutely interesting blog

Prem Lata Sharma

Excellent

Prem Chand Sharma

Itโ€™s absolutely interesting blog

JBP Foundation

Article is enjoyable

Vishal Sharma By Vishal

Post(s) by Months

#เคธเฅ‹เคจเคชเฅเคฐ (เคนเคฐเคฟเคนเคฐ เค•เฅเคทเฅ‡เคคเฅเคฐ) เคฎเฅ‡เคฒเคพ 2024 เคฎเฅ‡เค‚ เค†เคฏเฅ‹เคœเคฟเคค #เคœเคจเคธเค‚เคตเคพเคฆ_เค•เคพเคฐเฅเคฏเค•เฅเคฐเคฎ เค•เฅ‡ เคฆเฅŒเคฐเคพเคจ เคฆเคฟเคจเคพเค‚เค• 28.11.2024 เค•เฅ‹ เค…เคชเคฐเคพเคนเฅเคจ 12:30 เคธเฅ‡ 13:00 เคฌเคœเฅ‡ เคคเค• '#เคธเฅ‹เคถเคฒ_เคฎเฅ€เคกเคฟเคฏเคพ' เคตเคฟเคทเคฏ เคชเคฐ เคชเฅเคฒเคฟเคธ เคฎเคนเคพเคจเคฟเคฐเฅ€เค•เฅเคทเค• เค•เฅ‡ เคธเคนเคพเคฏเค• (เค•เคฒเฅเคฏเคพเคฃ) เคšเคฐเฅเคšเคพ เคเคตเค‚ เคธเค‚เคตเคพเคฆ เค•เคฐเฅ‡เค‚เค—เฅ‡เฅค
.
.
#BiharPolice #sonepurmela2024 #เคธเฅ‹เคจเคชเฅเคฐเคฎเฅ‡เคฒเคพ #Bihar

Eager to start investing in stocks in India? Our beginner's guide covers everything from opening a Demat account to understanding the markets. Get started on your wealth-building journey today! Let us know if you have any questions: https://www.hillyreviews.com/investing-in-stocks-in-india/

Load More

Latest Posts:

2024 Reading Challenge

2024 Reading Challenge
Vishal has read 0 books toward his goal of 40 books.
hide
0 of 40 (0%)
view books

Follow Us