T. Singh, Group President, SRS Group, in a conversation with 4Ps B&M, defends the strategic intent behind the group’s diversification into many different domains. He also discusses the group’s future plans including the set-up of a full fledged sports university
Starting from microfinance, SRS is in domains like real-estate, retail and hospitality. What is the rationale behind diversifying into so many different domains? Doesn’t it go against the logic of core competence?
For any business to sustain its success, it is a must that its management is sensitive to the changes in the business environment, adjust its business and processes accordingly, and capitalise upon the emerging opportunities. This is what SRS has attempted over the years. SRS started its business activities in 1990 with finance and leasing business and in 1997 diversified into manufacturing and marketing of edible oil & tea. In the year 2000, recognising the opportunity to diversify, the group took a quantum leap and entered the retail, real estate, cinemas and food court businesses – sectors that were on the upswing and in sync with the emerging needs of the masses. This was the new beginning for the group, and paved way for SRS Limited, the flagship company of the SRS Group. With the launch of SRS Multiplex in 2004 at City Centre, Faridabad, the whole outlook of the group changed. The SRS group lifted up to an altogether new level and took the centre stage across all businesses and its future expansions. That’s when we started foraying into newer geographies, demographics and businesses.
But doesn’t such expansion weaken the overall structure? To that extent, which business domain do you foresee as being the backbone of the SRS group?
Our retail and cinemas businesses provide us with the most visibility for our brand. However, these two businesses along with the real estate business form the the backbone of SRS Group. All the three businesses have enabled us to reach out to the masses and build our brand equity in a way that would not have been possible with any other business.
Starting from microfinance, SRS is in domains like real-estate, retail and hospitality. What is the rationale behind diversifying into so many different domains? Doesn’t it go against the logic of core competence?
For any business to sustain its success, it is a must that its management is sensitive to the changes in the business environment, adjust its business and processes accordingly, and capitalise upon the emerging opportunities. This is what SRS has attempted over the years. SRS started its business activities in 1990 with finance and leasing business and in 1997 diversified into manufacturing and marketing of edible oil & tea. In the year 2000, recognising the opportunity to diversify, the group took a quantum leap and entered the retail, real estate, cinemas and food court businesses – sectors that were on the upswing and in sync with the emerging needs of the masses. This was the new beginning for the group, and paved way for SRS Limited, the flagship company of the SRS Group. With the launch of SRS Multiplex in 2004 at City Centre, Faridabad, the whole outlook of the group changed. The SRS group lifted up to an altogether new level and took the centre stage across all businesses and its future expansions. That’s when we started foraying into newer geographies, demographics and businesses.
But doesn’t such expansion weaken the overall structure? To that extent, which business domain do you foresee as being the backbone of the SRS group?
Our retail and cinemas businesses provide us with the most visibility for our brand. However, these two businesses along with the real estate business form the the backbone of SRS Group. All the three businesses have enabled us to reach out to the masses and build our brand equity in a way that would not have been possible with any other business.
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Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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