PREFACE

REFACE

Small In Size Big In Potential

am glad to present sixth edition of Small Cap 400, a
comprehensive compendium on Indias top 400 Small
Cap companies. Small Cap 400 is one-of-its-kind-book
in terms of information about Indias top 400 Small Cap
companies compiled in a single book format. This book is
designed in a manner so as to help the investors to make
informed decision in selecting stock for an ideal portfolio.

The up-to-date information includes all the latest

developments in each of the Top 400 ranked Small Cap
companies backed by the financial snapshot of last five years.
Perceptive insights and future plans for these organizations
are gleaned through in-depth interviews with the leaders of
these companies giving readers valuable insights about the
goings on in the company and industry. These interviews also
provide information about the future direction and prospects
for these companies. Market data and statistics empower the
investors not just about selecting 400 companies but also
about the different industrial segments and the economy as
a whole.
Small Cap companies present the possibility of greater
capital appreciation than other segments though with higher
risk. I would suggest every investor should invest at least 2025 per cent of his investment in only those small cap stocks
which have strong fundamentals especially at the time
when indexes are at low level. Despite having a risk factor
in investment in small cap stocks always bring handsome
returns and could proved to be gold mine in long term. We
have picked such 400 good investment choices for the
readers in this compendium.
Since last year we introduced Gurumantra section which
was received well both by readers and corporate leaders.
For this years edition I would like to acknowledge the
guiding mantra from N M Borah, CMD, Oil India; Satnam

Singh, CMD, PFC and HD Khunteta, CMD, REC which will

provide the small cap companies the much valuable advices
on practices to adopt for greater success. M Narendra,
CMD, Indian Overseas Bank; A S Bhattacharya, CMD, Bank
of Maharashtra and A K Anandeswaran, GM (SME), Bank
of India have given their suggestions about how sound
financial management can make a small company to
grow big. Finally I would like to thank Sapan Jain from IBM
and Pramodh Mennon from Cisco for their inputs on how
new technologies can help smooth operations and better
resource management.
Finally, before signing off, I would like to convey my
sincere thanks to our marketing team headed by Deepak
Jhangiani, Director (Marketing) and his team comprising
Jayanand Nayak and Santosh Jha from Mumbai, T V
Kumar from Delhi, Sushmita Banarji Mitra from Kolkata, N
K Vishwanatha from Bangalore and Jacinth G from Chennai
who coordinated proficiently to contour this book in an
attractive manner. I also extend my sincere thanks to Huned
Contractor for his excellent editing skills and striking
captions and Vivek Thakkar
for his amusing illustrations.
The contribution of Vijay
Gawale is appreciated
for his cover design and
Avinash Rajurkar for his
layouts designs which
have added value to
the content. I hope the
readers will find Small
Cap 400 interesting as
well as informative.
RAVISHANKAR PANDA
Editor In-charge

Founder & Editor in Chief: V B Padode

Space Marketing Team

Offices:

Executive Editor: Ravishankar Panda

Asst General Manager: Jayanand Nayak (Mumbai)

Mumbai: Editorial: (022) 40629500, Fax: (022) 40629510

Project Facilitator: Deepak Jhangiani

Senior Manager: Santosh Jha (Mumbai)

Delhi: Tel: (011) 26169790, Fax: (011) 26106450

Research: Venkat R, Tarun Sharma

Manager: Sabyasachi Das (Mumbai)

Bangalore: (080) 41571980, 41571982

Cover Design: Vijay Gawale

Senior Manager: T V Kumar (Delhi)

Kolkata: 09231001011

Production: J T Sawant

Senior Manager: N K Vishwanatha (Bangalore)

Chennai: 07871424545

Asst. Manager: Jacinth G (Chennai)

Pune: Tel: (020) 40197200, Fax: (020) 40197210

Senior Manager: Sushmita Banarji Mitra (Kolkata)

While all efforts are made to ensure that the information published is correct and up-to-date, The company/publisher/editor holds no responsibility for any errors that might occur. All material
contained herein is though reliable, are not infallible. The information given in the Book is of an advisory nature. Readers are advised to consult academicians before taking any decision and
Publisher holds no responsibility for any losses that may arise due to career decisions made on the basis of information given within the Book
All rights reserved. No reproduction is permitted in whole or part without written consent from the publisher.
Printed and published by Nitin Sawant on behalf of Ramdeo Media Ltd. printed at Indigo Press (I) Pvt. Ltd., Plot No 1 C/716, Off Dadoji Konddeo Cross Road, Retiwala Industrial Estate,Byculla (E),
Mumbai 400 027 and Published from 101A, Uttam House, First Floor, 69, P DMello Road, Near Carnac Bridge, Mumbai - 400 009.

| SMALL CAP 400

GURUMANTRA
CONTENTS
ONTENTS

Satnam Singh

26

CMD, Power Finance Corporation

32

KNOW YOUR LEADER

10

N M Borah

M EN TO R

CMD, Oil India

H D Khunteta

34

CMD, Rural Electrification Corporation

44

FINANCIAL SNAPSHOTS

Sujit Kanoria

81

MD, Shrishti Infrastructure

Development Corporation

M Narendra

28

MENTOR FINANCE

CMD, Indian Overseas Bank

36

A K Anandeswaran

INDEX

General Manager (SME),

Bank of India

Preface ................................................... 2
A S Bhattacharya

40

Interview Index ....................................... 6

Legend ................................................... 8

CMD, Bank of Maharashtra

CEO Quotes ........................................... 9

MENTOR TECHNOLOGY

Cover Story .......................................... 19

Sapan Jain

46

Country Manager, IBM Global Financing, IBM India/South Asia

Methodology ...................................... 286

Master Ranking .................................. 287
Segmentwise Ranking ....................... 290

48

Pramodh Menon

Sr VP, Partner Business Group, Cisco

(India and SAARC)

Editorial Index .................................... 295

Advertisers Index ............................... 298
Feedback Form ................................. 300

KNOW YOUR LEADER

Last book that I liked The Ultimate Gift by Jim

Stovall.
Last bold business move that worked in my favour
Was to create systems in the company for organised
growth.
My team is for me The secret for growth and success.
My favourite holiday destination in India and Abroad
Are always those that have mountains with abundant
green cover, such as Kashmir and Switzerland.
The business leader I admire the most Is Mr.
Narayana Murthy.
As a child I wanted to be A doctor to help the needy.
My view on taking the risks Is that they should be
calculated ones so that growth is possible without any
stress.

Paru M Jaykrishna
CMD
Asahi Songwon Colors

I find inspiration from All those leading women who

manage their careers and personal lives so beautifully
well.
I take failure as A stepping stone for further progress.
Message for my team Is to be eternally optimistic.

Last book that I liked Rajnishs book on

Silence.
Last bold business move that worked in my
favour We entered some of the virgin
market where people entered later.
My favourite holiday destination in India and
Abroad Pahalgam, Las Vegas.
The business leader I admire the most Is
Mr. Rahul Bajaj.
As a child I wanted to be Designer in any
form of art.
My view on taking the risks Take a risk till
a level.
I find inspiration from My projects as well
as my competitors.
I take failure as Bad patch of the life that
has to be forgotten.
Message for my team Work hard and see
how you can prosper.

16

| SMALL CAP 400

Ashok Chhajer
CMD
Arihant Superstructures

GURUMANTRA
URUMANTRA

INDIAN OVERSEAS BANK

Taking Confident
Strides Ahead
With its agenda of doing more than what the target
states, the Indian Overseas Bank has been crossing the
milestones quite easily and is now poised for greater
improvements in its financials. Excerpts from the interview
with M Narendra, CMD, Indian Overseas Bank:

M Narendra
CMD
Indian Overseas Bank

The bank
plans to add
400 branches
across the
country to
widen its panIndia presence
which will go
a long way
in furthering
its business
expansion.

What factors have helped the bank register

an impressive growth rate which is in fact
better than the industry average?
The bank witnessed a significant business
growth of 35.20 per cent in 2010-11 and as
at the end of June 2011 it posted year-onyear growth of 40.49 per cent in business.
The driving factors of the banks impressive
growth include reaching out to the customers
through the walk-in-bank campaigns by
all the employees at all levels for resource
mobilisation and expanding the customer
base, improved credit delivery through
focused vertical approach viz. large and midcorporates and SMEs.
What have been the thrust areas for the
bank in recent times?
The bank plans to add 400 branches across the
country to widen its pan-India presence which
will go a long way in furthering its business
expansion. Also, mobilisation of the current
account and saving account (CASA) is the
need of the hour to keep the cost of deposits
low. The bank is focusing on lending to the
MSME and the agricultural sectors which are
the nations priorities. The bank will also look
for good credit proposals in the infrastructure
and industrial sectors, apart from expanding
other retail loans for housing and education.
What are your plans for enhancing your

28

| SMALL CAP 400

overseas presence in this financial year?

We are planning to open a branch in
Nepal and also proposing to take up with
the Monetary Authority of Singapore for
granting a qualifying full banks license in
order to further exploit the business potential
at Singapore. The bank has also taken up
with the RBI for permission to upgrade its
representative offices at Guangzhou (China),
Al Karama (Dubai) and Ho Chi Minh City
(Vietnam) into full-fledged branches. We
have also sought the RBIs permission to
open an additional branch in Bangkok at
Sukhumvit. The bank also plans to set up
its third remittance centre at Singapore.
Meanwhile, our bank, along with Bank of
Baroda and Andhra Bank, is actively working
towards the commencement of operations
of the joint venture subsidiary established at
Malaysia.
What are the various SME products that
IOB offers?
The Indian Overseas Bank offers a wide
range of MSME products and services
catering to the need and prosperity of our
customers. Our MSME product portfolio
has been tailor-made to suit individual and
industry requirements as well as to meet
the requirement of the SME entrepreneurs
comprehensively. Apart from our traditional
asset creation loans (term loans) and working

capital management loans (cash credit), the

following are our distinct SME products:
IOB SME Term Loan.
IOB CA for chartered accountants.
IOB Sanjeevini for medical
professionals.
Scheme for small transport operators
under a tie-up arrangement with Ashok
Leyland Ltd, Bajaj Auto Ltd, Tata Motors
Ltd, Asia Motors Ltd and TVS Motor
Co Ltd.
IOB MSE PLUS a combo product to
meet the investment needs and working
capital needs of the MSEs through a
term loan account in a simplified and
hassle-free manner.
IOB MSME Insta Fund to meet genuine
unforeseen working capital needs.
Collateral-free loans under CGTMSE.
Government-sponsored schemes such
as PMEGP, TUF and CLCSS.

predicting market demand. Apart from the

traditional financial management of bookkeeping, working capital management
and cost control, the business unit must
also concentrate on the following areas for
effective financial management:
Composite annual budget and monthly
targets with a monitoring mechanism.
Continuous surveillance of areas which
affect the liquidity of the business.
Capex planning.
Cost-saving strategies.
Quality control measures.

A large number of training programmes

are conducted for officers and the clerical
staff at our staff training college and ten
staff training centres. Recently senior
officers and executives were deputed to
national level institutes like the National
Institute of Bank Management, College
for Agricultural Banking, Management
Development Institute, Administrative
Staff College of India, etc for specialised
trainings. Senior executives were also
deputed to overseas training programmes
to gain exposure about the latest global
developments and international practices.

What is your view on the current

performance of SMEs and their future?
The MSME sector is one of the largest
contributors to domestic production
and export earnings with its substantial
industrial output, employment generation
and quality products and services. The
nation has witnessed the capacity of this
sector to boost the countrys economic
growth by acting as a supply chain with its
innovative products and services to large
corporates. However, despite growth and
business development, these small players
do not have adequate margins to fall back on
during difficult times. The present market
scenario indicates that the sector is under
stress with rising input and interest costs.
What, according to you, should be the
financial management approach for the
SMEs to do better?
No business unit can survive even with the
best products and exemplary marketing
mechanism if its financials are not adequately
managed. Most of the small and mid-size
business units lack expertise in managing
their cash flows, capital expenditure
planning, negotiating favourable deals with
suppliers, balancing quality and costs and

What measures have you taken to reduce

to improve your NPAs considerably?
Going forward how are you going to
bring this down below 1 per cent?
The right selection of borrower with proper
credit appraisal, closer monitoring of
accounts and periodical guidance will help
in maintaining the health of the portfolio. In
case of difficulties, timely restructuring of
the credit facilities should be carried out to
tide over the units problems. This approach
will keep the NPAs low and we definitely
plan to bring our net NPA to below 1 per
cent.
What HR practices are being adopted
for the improved performance of the
employees?

Promotion at all levels and new recruitment

of officers and clerks is also taken up to take
care of succession planning and support the
increased business.
How are you creating value for your
investors?
Our bank has a continuous history of
dividend payment and its performance
during the year 2010-11 has been quite
impressive, thereby returning good yields to
the investors. Further, we take every effort
to ensure the wealth maximisation of the
banks shareholders by declaring higher
dividend coupled with increased book
value/earning per share by attaining better
performance every year.

SMALL CAP 400 |

29