Shares of Renuka Sugar shares are 52 weeks down below Rs. 32. (You can see the fluctuations in share here.) They have reported the loss of 615.8 cores in Q4 of Sept 2011( Last year Q4, They had a profit of 128.1 crore) . They have also reported forex loss of 570 crore. Founder CEO Narendra Murkumbi has said, “Shree Renuka Sugars had a difficult quarter due to a challenging operating environment in Brazil, especially in Sao Paulo state, due to bad weather severely affecting the sugarcane.” From last decade, Renuka Sugar factory has turned as a boon to the farmers around North Karnataka. It manufactures sugar on large scale taking sugarcanes cultivated by farmers. As sugar cane is one basic cash crop in the North Karnataka. The sugar produced is consumed in India as well as exported outside. I have been known about Renuka Sugar from my childhood, as my grandparents (who were farmers) and also used to send the sugarcane to Renuka Sugar factory. Renuka Sugar is founded by IIMA graduate Mr. Narendra Murkumbi and his mother Vidya Murkumbi in 1998 with their vision to produce most efficient sugar producer in the country. Narendra has received Economic Times’s Entrepreneur of the Year award in 2010.
Below beautiful lines on Opportunity are true for Renuka Sugar…
“We do not brood on problems, we count on opportunities. Because opportunities come under the gard of problems. Because opportunity seekers only survive and thrive. Because it is easy get discouraged by problems, but takes mettle to turn them into an inspiration. Because what is good for futuristic opportunity-focused business is good for envirionment, community and the world. This is not convenient word play or gorgeous make-believe.”
Renuka Sugar uses Jack Welch Strategy- “Good business leaders create a vision, articulate the vision, passionately own the vision and relentlessly drive it to completion.”
I would like to extend this post to tell something about, how and where Narendra Murkumbi learnt Entrepreneurship.
LEM Professor Sunil Handa at IIM Ahmedabad provides example Narendra Murkumbi during many sessions of Entrepreneurship. (LEM: Laboratory of Entrepreneurial Motivation) He was the first entrepreneurial student of Sir Sunil Handa. I would like to put the excerpt of blog post about Prof. Sunil Handa.
“Prof. Handa spoke about his teaching career’s first entrepreneurial student, Mr. Narendra Murkumbi. This lad’s first idea was that of manufacturing a Neem Insecticide in Belgaum. Though Prof. Handa was apprehensive about the idea initially, he was assured of its success after speaking to an international neem expert, Dr. Gupta at ICRISAT. Though the product turned out to be a great success, the customers were farmers and hence the Receivables on his balance sheets were huge. It was in 1995 that Narendra came up with the idea of buying old sugar mills and starting production of sugar. Prof Handa told him that he was crazy and that sugar was meant for people in the upper echelons of politics. But like many entrepreneurs, Mr. Murkumbi was willing to risk it. He went on with his plan and today he is the owner of one of the world’s most scientific state-of-the-art sugar mills, Shree Renuka Sugars Ltd. Not only that, he was also featured as one of India’s new bilionaires by Business World. One interesting thing about Renuka Sugars is that they use co-generation to produce their own energy (using the waste, bagasse which comes from sugarcane). No electricity is purchased from outside. When Murkumbi explained the idea to Prof Handa, he said, “When god created sugarcane, he put enough energy in it to bring the sugar out of it.”
[Source Original Post by Ravi Mehta ]