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Unusual Billionaires, The
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454 pages, Paperback
Published August 31, 2016
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About the author
Saurabh Mukherjea
12 books182 followersSaurabh Mukherjea is founder and chief investment officer of Marcellus Investment Managers. He is the former CEO of Ambit Capital and played a key role in Ambit’s rise as a broker and a wealth manager. When Mukherjea left Ambit in June 2018, assets under advisory were $800mn. Prior to Ambit, Saurabh was co-founder of Clear Capital, a London-based small-cap equity research firm that was created in 2003 and sold in 2008. He is a CFA charterholder with a BS in economics (with First Class Honours) and an MS in economics (with distinction in macroeconomics and microeconomics) from the London School of Economics.
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Displaying 1 - 30 of 207 reviews
January 16, 2021
It is a collection of business case studies of 7 extraordinarily successful companies.
It gave an insight into a world that was alien to me. Every page taught me something new.
Value investing is important and this book made it so interesting.
Having an engineering background I had zero knowledge of business and finance. I never thought I could read a book like this. But Saurabh Mukherjea proved me wrong.
Definitely suggesting those who are new to investing or want to start.
It gave an insight into a world that was alien to me. Every page taught me something new.
Value investing is important and this book made it so interesting.
Having an engineering background I had zero knowledge of business and finance. I never thought I could read a book like this. But Saurabh Mukherjea proved me wrong.
Definitely suggesting those who are new to investing or want to start.
July 6, 2017
Most folks from the so-called premier engineering colleges today - have blinders on when they look at the Tech world - Google, Amazon, Flipkart and Apple are the companies we admire, read about and idolize. And when we launch startups in India we try and emulate them.
But India is different and India has had its own success stories - companies that have given higher returns than Google, brands that are among the best in the world. This book introduced me to this world and helped me understand how long-term shareholder value gets created and how companies like HDFC Bank, Marico, Axis Bank, Page Industries, Asian Paints and many more have consistently grown quarter after quarter, year on year, to become the behemoths they are now. Written by the folks from Ambit Capital - this book explains how to build your coffee-can portfolio - 10 stocks that you can buy today and forget about for the next 10 years. Good read for folks interested in the Indian markets.
But India is different and India has had its own success stories - companies that have given higher returns than Google, brands that are among the best in the world. This book introduced me to this world and helped me understand how long-term shareholder value gets created and how companies like HDFC Bank, Marico, Axis Bank, Page Industries, Asian Paints and many more have consistently grown quarter after quarter, year on year, to become the behemoths they are now. Written by the folks from Ambit Capital - this book explains how to build your coffee-can portfolio - 10 stocks that you can buy today and forget about for the next 10 years. Good read for folks interested in the Indian markets.
November 29, 2016
'Nothing contributes so much to tranquilize the mind as a steady purpose- a point on which the soul may fix its intellectual eye'- Mary Wollstonecraft Shelly.
An absolute eye opener for finance guys only? No, not really. Here's a book that should be read by everyone in order to improve their financial acumen regarding businesses, stock markets, investments and what not. A caveat comes attached with this one as well ('BEWARE')- This is not a panacea or a short cut or a magic trick that you will be able to use to discover the stocks in which you can invest and play RICHIE RICH for the rest of your lives!
Saurabh has went about proving his hypotheses and the rules that he has formulated to judge how a company is performing as compared to the both sector in which it is and the whole industry. He has taken examples of 7 companies from various sectors like FMCG, Manufacturing, Financial services etc to cite what these guys have been doing right and most importantly, since when. He calls this diverse portfolio of companies as Coffee Can Portfolio whose ability to give phenomenal returns banks on the very fact that they are held for a long duration.
For instance, among st many rules and clues to look for, the 2 of the rules that he gave are:
1) The rate of Revenue growth should be above 10% every year.
2) The minimum Return on Capital Employed(ROI) should be 15%.
Unusual Billionaires covers the unusual decisions taken into the companies mentioned in this book- Asian Paints, Berger Paints, Marico, Axis Bank, Page Industries, HDFC bank, Astral Poly. They not only focused on their core business but also innovated the way they work with time. For instance, Sandeep Engineer of Astral poly saw the market for CPVC(Chlorinated Poly-Vinyl Chloride) pipes before anyone else did and went on to replace the market of GI(Galvanized Iron) with his products. Similarly Axis bank was down the dumpsters when it was launched initially, but as soon as P. Jayendra Nayak took over, in a decade he ensured that Axis bank is counted among st the top banks in India alongside HDFC and ICICI. Effective leadership has been a recurring theme in all these companies whether it's Harsh Mariwala of Marico, Aditya Puri of HDFC or Sunder Genomal of Page Industries.
To elucidate upon the subject, Saurabh has borrowed a concept of 20 Mile March from Jim Collins', GREAT BY CHOICE. This concept helps one to determine which companies are worthy of Coffee Can Portfolio. The story goes like this:
There are 2 men who set out on a journey of 3000 miles on foot. Person A walks 20 miles a day irrespective of terrain and weather conditions whereas Person B walks more when the conditions are favorable and less when they aren't under the impression that he will make up for the lost time in coming good days. As anyone would've guessed, man with the consistent plan won.
This analogy is used by the author to determine the consistency of the company which has been translated into greatness by years of non-stop treading on the same path of discipline and judiciousness.
Personally, I believe that this 20 Mile March concept can be applied to anything which ages. It can also be used to determine the prospects of an individual as it requires two distinct types of discomfort :
'Delivering High Performance in Bad Times and Holding Back in Good times'
An absolute eye opener for finance guys only? No, not really. Here's a book that should be read by everyone in order to improve their financial acumen regarding businesses, stock markets, investments and what not. A caveat comes attached with this one as well ('BEWARE')- This is not a panacea or a short cut or a magic trick that you will be able to use to discover the stocks in which you can invest and play RICHIE RICH for the rest of your lives!
Saurabh has went about proving his hypotheses and the rules that he has formulated to judge how a company is performing as compared to the both sector in which it is and the whole industry. He has taken examples of 7 companies from various sectors like FMCG, Manufacturing, Financial services etc to cite what these guys have been doing right and most importantly, since when. He calls this diverse portfolio of companies as Coffee Can Portfolio whose ability to give phenomenal returns banks on the very fact that they are held for a long duration.
For instance, among st many rules and clues to look for, the 2 of the rules that he gave are:
1) The rate of Revenue growth should be above 10% every year.
2) The minimum Return on Capital Employed(ROI) should be 15%.
Unusual Billionaires covers the unusual decisions taken into the companies mentioned in this book- Asian Paints, Berger Paints, Marico, Axis Bank, Page Industries, HDFC bank, Astral Poly. They not only focused on their core business but also innovated the way they work with time. For instance, Sandeep Engineer of Astral poly saw the market for CPVC(Chlorinated Poly-Vinyl Chloride) pipes before anyone else did and went on to replace the market of GI(Galvanized Iron) with his products. Similarly Axis bank was down the dumpsters when it was launched initially, but as soon as P. Jayendra Nayak took over, in a decade he ensured that Axis bank is counted among st the top banks in India alongside HDFC and ICICI. Effective leadership has been a recurring theme in all these companies whether it's Harsh Mariwala of Marico, Aditya Puri of HDFC or Sunder Genomal of Page Industries.
To elucidate upon the subject, Saurabh has borrowed a concept of 20 Mile March from Jim Collins', GREAT BY CHOICE. This concept helps one to determine which companies are worthy of Coffee Can Portfolio. The story goes like this:
There are 2 men who set out on a journey of 3000 miles on foot. Person A walks 20 miles a day irrespective of terrain and weather conditions whereas Person B walks more when the conditions are favorable and less when they aren't under the impression that he will make up for the lost time in coming good days. As anyone would've guessed, man with the consistent plan won.
This analogy is used by the author to determine the consistency of the company which has been translated into greatness by years of non-stop treading on the same path of discipline and judiciousness.
Personally, I believe that this 20 Mile March concept can be applied to anything which ages. It can also be used to determine the prospects of an individual as it requires two distinct types of discomfort :
'Delivering High Performance in Bad Times and Holding Back in Good times'
August 26, 2020
India has always been known(branded?) as the 'land of sages', which in effect meant we are known across the world for pursuing knowledge and asceticism and abhorring the material world founded upon the concepts such as trading, money, business and currency. Barring a few exceptions, say the Tatas or the Birlas or the Singhanias, India wasn't even famous for having richie-richs. Now of course, with the post-independence crop of the Ambanis and the Adanis and the Ruias, etc. we regularly make our presence felt in the Forbes' World's Wealthiest list.
Mukherjea's books covers a few such self-made rich men(yes, incidentally no women features in the list and that's not Mukherjea's fault here). The methodology he uses to filter out the most successful and most valuable companies is a smart one, based on Robert G. Kirby's concept of Coffee Can Investing which is an approach of long-term minimal intervention investing in shares of companies which have performed well consistently. These are the success stories of seven Indian companies: Asian Paints, Astral Poly, Berger Paints, Marico, Page Industries, Axis Bank and HDFC Bank.
Mukherjea, who was then the the CEO of institutional equities broking firm Ambit Capital and now runs his own firm, further uses Professor John Kay's IBAS(Innovation, Brands/Reputation, Architecture, Strategic Assets) Framework to analyse these companies and their founders and how these individuals converted their "Capabilities to Competitive Advantages". I found the framework developed by Kay, who is a professor of economics at the London School of Economics, quite interesting and contemporary. Also, I am sure Peter Lynch would have found this book quite enjoyable.
There is just one flaw in the book. Instead of telling stories, the book seemed like an extended Powerpoint presentation bogged down by its own rigid format. But still, it doesn't mean it became any less informative or useful, just a little tiresome. Mukherjea isn't a master storyteller, but nevertheless does the job well enough.
Mukherjea's books covers a few such self-made rich men(yes, incidentally no women features in the list and that's not Mukherjea's fault here). The methodology he uses to filter out the most successful and most valuable companies is a smart one, based on Robert G. Kirby's concept of Coffee Can Investing which is an approach of long-term minimal intervention investing in shares of companies which have performed well consistently. These are the success stories of seven Indian companies: Asian Paints, Astral Poly, Berger Paints, Marico, Page Industries, Axis Bank and HDFC Bank.
Mukherjea, who was then the the CEO of institutional equities broking firm Ambit Capital and now runs his own firm, further uses Professor John Kay's IBAS(Innovation, Brands/Reputation, Architecture, Strategic Assets) Framework to analyse these companies and their founders and how these individuals converted their "Capabilities to Competitive Advantages". I found the framework developed by Kay, who is a professor of economics at the London School of Economics, quite interesting and contemporary. Also, I am sure Peter Lynch would have found this book quite enjoyable.
There is just one flaw in the book. Instead of telling stories, the book seemed like an extended Powerpoint presentation bogged down by its own rigid format. But still, it doesn't mean it became any less informative or useful, just a little tiresome. Mukherjea isn't a master storyteller, but nevertheless does the job well enough.
October 7, 2021
This book stands in its own right and it doesn’t need any bush ; Mukherjea’s coffee can investing made him famous , while CCI was about how to invest and make assets , this book is more about the ordinary people and their strategies , which made them billionaires ; and the last chapter , it is about a checklist for long term investors , I found the content pertinent and extremely helpful… a good one time read !
August 12, 2022
It's a quick read. Story of 8 companies that have consistently outperformed their peers is growth and ROE/ROCE.
3 stars because 50% of the book has the entire story, rest is just repetitive. Plus the analysis is just above average, not a wow!
3 stars because 50% of the book has the entire story, rest is just repetitive. Plus the analysis is just above average, not a wow!
September 5, 2017
One of the most interesting book I have read on Businesses. We all come across books that talks about 'success mantra' but they end up having preachy lines for enthusiastic entrepreneurs. This book actually does provide Success Mantras woven through stories of 8 successful businesses. If you are a budding Entrepreneur and Investor, this one by Saurabh Mukherjea is a must read!
April 10, 2020
Very well written book.
He has explained details of 7 Indian companies in 3 steps :
1. Phase wise development of business
2. Moats around the business and
3. Capital allocation decisions taken by these companies.
He has explained details of 7 Indian companies in 3 steps :
1. Phase wise development of business
2. Moats around the business and
3. Capital allocation decisions taken by these companies.
November 17, 2018
Key points
1. Revenue growth of 10% and RoCE every year over a 10 year period for non finance companies
2. Loan book growth of 10% and RoE of 15% every year over a 10 year period for finance companies
3. IBAS framework - Innovation Brands Architecture Strategic assets
4. Forensic audit points at end of the book are good
1. Revenue growth of 10% and RoCE every year over a 10 year period for non finance companies
2. Loan book growth of 10% and RoE of 15% every year over a 10 year period for finance companies
3. IBAS framework - Innovation Brands Architecture Strategic assets
4. Forensic audit points at end of the book are good
April 4, 2022
There aren't enough Value investing books in India that go deep into specific companies or sectors, The Unusual Billionaires is one that does. Saurabh is creating a niche for solid content on Indian Value investing.
June 30, 2021
Informative, inspiring book covering some of the best company to associate at any level be it as investors, as employees, as customers or as a supplier.
Covers many aspects of business that once can understand easily.
Covers many aspects of business that once can understand easily.
May 1, 2022
I picked this in continuation to my last read 'Coffee Can Investing' by the same author. In CCI Saurabh highlights how companies with consistent revenue growth and return on capital employed of at least 10% and 15% respectively for last 10 years can generate superior returns for shareholders in the long-term.
In this book, he has picked 7 such companies which have been part of Coffee Can portfolios for 4 or more times during 2000-15 period. Saurabh has very well summarized journey of those companies in different phases and approach taken by them (or secret of their success) which has resulted in consistent returns for shareholders. He has tried to correlate success of each company into IBAS framework - or Innovation, Brand and Reputation, Architecture, Strategic Asset - by John Kay, which provides view of commonality to readers.
Overall it's a great read where readers can learn how those companies have sailed through ups and downs over a long period of time and have become 'unusual billionaires'.
In this book, he has picked 7 such companies which have been part of Coffee Can portfolios for 4 or more times during 2000-15 period. Saurabh has very well summarized journey of those companies in different phases and approach taken by them (or secret of their success) which has resulted in consistent returns for shareholders. He has tried to correlate success of each company into IBAS framework - or Innovation, Brand and Reputation, Architecture, Strategic Asset - by John Kay, which provides view of commonality to readers.
Overall it's a great read where readers can learn how those companies have sailed through ups and downs over a long period of time and have become 'unusual billionaires'.
April 25, 2018
It was recommended to me by a friend of mine and I must say this book is a masterpiece by Saurabh. I have read couple of investment wisdom and philosophy followed by Graham, Peter Lynch, Dalio etc. but this book provides the most relevant wisdom in Indian equity market. Substantiated by a strong research, Saurabh tries to highlight how the criterion he lists helped him beat market index by a huge margin over a long period. I would say this is a definite read for all those interested in equities and want to know more about investment wisdom in Indian scenario.
June 28, 2021
The book deep dives into the seven of the most successful Indian companies of India and is definitely an interesting read. A few basic finance concepts have also been discussed while explaining the idea "How to measure a company's success".
However, highly disappointed with the exaggeration of the sentences trying to prove- "Growth can only be led by hiring from the Top Tier B-school".
However, highly disappointed with the exaggeration of the sentences trying to prove- "Growth can only be led by hiring from the Top Tier B-school".
February 1, 2022
I admire Saurabh Mukerjea and his philosophy and therefore decided to pick this up.
The book traces the conception, origins, performance, philosophy, and competitive advantage of some of Indias biggest companies.
This is a nice casual read. However, the book was written in 2016 and is therefore outdated considering that it has a lot of data and analysis which was relevant for that time.
The book traces the conception, origins, performance, philosophy, and competitive advantage of some of Indias biggest companies.
This is a nice casual read. However, the book was written in 2016 and is therefore outdated considering that it has a lot of data and analysis which was relevant for that time.
April 24, 2020
This book is one of the perfect guide for longterm investing. The of Coffee Can Portfolio is really effective & works in the long-term.
I think Saurabh Mukherjea is at it's best way described the whole concept of Portfolio Management from it's making to annual CAGR return.
I think Saurabh Mukherjea is at it's best way described the whole concept of Portfolio Management from it's making to annual CAGR return.
May 13, 2020
Good read if you want to know the fundamentals of what makes a sound business.
July 15, 2020
The book is a good reference for anyone who wants to analyze companies before investing. One would also get to know about different industries. However, it becomes a huge drag towards the end when the author uses the same frameworks to analyze 8 firms.
August 1, 2020
More like 4.5 stars.
February 20, 2021
This book contains a very thorough study of 8 companies. I personally enjoyed reading it as I got exposure on many fronts basically how deep study is done by the professional financial analysts.
November 8, 2020
The book is an easy read and Introduced me to 8 well managed firms in India. Saurabh explains it really well the reasons behind why these 8 firms have made their stockholders rich.
Would recommend it to anyone looking to invest in India and/or build a consumer facing business in India.
Would recommend it to anyone looking to invest in India and/or build a consumer facing business in India.
June 2, 2018
Good book for people who are new into investing. Flows well.
July 28, 2021
Average Read
Can read this book to understand the best companies of India. However the insights leading to great performance lacks the depth. Though one can understand why these companies are ultimate wealth creator.
Can read this book to understand the best companies of India. However the insights leading to great performance lacks the depth. Though one can understand why these companies are ultimate wealth creator.
December 10, 2016
The book is an excellent reading for anyone who wishes to know how excellent equity research is done. It uses strict filters to figure out which listed companies in India have consistently created maximum wealth for their shareholders. He then analyses what is so special about these companies and why have they been able to create sustained wealth for so many years.
August 31, 2016
Super Book on top efficient allocators of capital ... Detailed... Well written. Not a big fan of Axis making an entry to the list. Nonetheless a brilliant read.
September 26, 2016
This is probably one of the best books written on the Indian equity market. It is a must read for Indian equity investors. A great gifting idea too.
December 4, 2021
Very in-depth analysis into the seven companies short listed. It gives a lot of insight and what to look for in a great company.
September 22, 2025
The Unusual Billionaires Book Review
My Rating: 3.5/5
Main Premise: Seven Indian companies that thrive through innovation, leadership, and capital allocation.
Target Audience: Investors, entrepreneurs, and anyone curious about business success.
Genre: Non-fiction / Finance
Book: The Unusual Billionaires
Author: Saurabh Mukherjea
Have you ever wondered why some companies thrive in super competitive spaces? Saurabh Mukherjea’s The Unusual Billionaires goes deep into seven of India’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 aren’t just your average companies. Their ability to maintain high growth and loyalty makes them, well, unusual.
What’s Special About These Unusual Companies?
Mukherjea looks at companies like Asian Paints, HDFC Bank, and Page Industries. These firms are outliers—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 didn’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 couldn’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 there’s Page Industries. Building an inspirational brand out of something as mundane as innerwear isn’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. That’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 Marico’s core business and even avoided hostile buyout bids from industry giants like Hindustan Unilever (HUL). His long-term vision and belief in Marico’s future helped him turn it into a FMCG giant.
Leaders in these companies didn’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.
Thinking Unconventionally
What really sets these leaders apart is their ability to think differently. They didn’t follow the herd—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 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 isn’t just a competitive advantage—it’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 didn’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.
This approach highlights the importance of financial performance as a measure of effective capital utilization.
Similarly, Page Industries didn’t chase trends by offering discounts or diversifying into unrelated businesses. They stayed focused on their core business—premium clothing—and built a loyal customer base by prioritizing quality over price.
Innovation: The Lifeblood of Truly Outstanding Companies
Innovation isn’t just a word for these companies—it’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 Bank’s 10-second pre-approved loans to Asian Paints using data analytics to optimize its supply chain, these companies didn’t just adopt technology—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 company’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. It’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.
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 India’s most successful companies.
This book doesn’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.
Find more of my reviews at: https://www.hillyreviews.com/the-unusual-billionaires-book-review/
Watch the short video version here: https://youtube.com/shorts/0Op7Yi5Ngns?si=YFVb5TZV-TnJgcYa
My Rating: 3.5/5
Main Premise: Seven Indian companies that thrive through innovation, leadership, and capital allocation.
Target Audience: Investors, entrepreneurs, and anyone curious about business success.
Genre: Non-fiction / Finance
Book: The Unusual Billionaires
Author: Saurabh Mukherjea
Have you ever wondered why some companies thrive in super competitive spaces? Saurabh Mukherjea’s The Unusual Billionaires goes deep into seven of India’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 aren’t just your average companies. Their ability to maintain high growth and loyalty makes them, well, unusual.
What’s Special About These Unusual Companies?
Mukherjea looks at companies like Asian Paints, HDFC Bank, and Page Industries. These firms are outliers—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 didn’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 couldn’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 there’s Page Industries. Building an inspirational brand out of something as mundane as innerwear isn’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. That’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 Marico’s core business and even avoided hostile buyout bids from industry giants like Hindustan Unilever (HUL). His long-term vision and belief in Marico’s future helped him turn it into a FMCG giant.
Leaders in these companies didn’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.
Thinking Unconventionally
What really sets these leaders apart is their ability to think differently. They didn’t follow the herd—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 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 isn’t just a competitive advantage—it’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 didn’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.
This approach highlights the importance of financial performance as a measure of effective capital utilization.
Similarly, Page Industries didn’t chase trends by offering discounts or diversifying into unrelated businesses. They stayed focused on their core business—premium clothing—and built a loyal customer base by prioritizing quality over price.
Innovation: The Lifeblood of Truly Outstanding Companies
Innovation isn’t just a word for these companies—it’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 Bank’s 10-second pre-approved loans to Asian Paints using data analytics to optimize its supply chain, these companies didn’t just adopt technology—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 company’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. It’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.
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 India’s most successful companies.
This book doesn’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.
Find more of my reviews at: https://www.hillyreviews.com/the-unusual-billionaires-book-review/
Watch the short video version here: https://youtube.com/shorts/0Op7Yi5Ngns?si=YFVb5TZV-TnJgcYa
April 1, 2022
I am a big fan of case studies - they are one of the best tools to remember concepts. This book is essentially a collection of case studies on listed companies that have outperformed their industries and even the broader market.
Notes from the book:
Greatness is largely a matter of conscious choice
Asian paints :
⁃ perhaps the first Indian co. to buy a mainframe. Used for demand forecasting and improving supply chain efficiency (1970s)
⁃ IBAS framework : Innovation, Brands, Architecture (org, process, IT), Strategic Assets (plants, depots, relationships)
⁃ First co. in India to introduce GPS based tracking of finished goods
Berger paints
⁃ introduced color tinting machines at dealers for last mile customisation
Marico
⁃ “We love to be boringly consistent” - Marico MD
⁃ one of the first companies in India to have an open office plan
⁃ HR innovation - organizing sports after work at factory to address worker unionization (because of free time and alcoholism earlier)
⁃ First co. in India to give out quarterly dividends
⁃ Gave company agnostic DMS to distributors
Page / Jockey
⁃ Genomal family licensed the brand for India. They were the first to start the Shop In Shop concept for the category in Philippines (within department stores)
⁃ PAGE — promoter’s mother - Parvati Genomal
⁃ Page India the first to not have wholesalers but distribute the products via distributors (to maintain control over channel and pricing)
⁃ Genomals also exclusively license for Speedo in India
⁃ Advertising approach : caucasian models for Indian consumers, in store advertising in MBOs
⁃ Brand does not offer discounts - no EOSS or other sale events ! More than 90 percent sales at no discount. Only slow moving obsolete inventory sold at flat 40 percent off twice a year
⁃ Managing labor - high participation of women (88 percent of labor force)
Axis bank
⁃ initial five yaars saw high NPA (bad loans), low CASA (current and savings accounts), and overall lower NIMs (net interest margins)
⁃ Shikha Sharma in 2009 led the move from a products oriented business to a customer oriented business (eg cross selling more products to a consumer)
⁃ Axis bank the first to introduce e KYC based on AADHAR
⁃ IBAS framework - meant for deepening the competitive moat
HDFC Bank
⁃ Innovative product - rapid check settlement for coop banks (which can only be in 1 state)
⁃ Early vision to sign up for a centralized internet enabled (online) banking software from iFlex
⁃ Big bang strategy to growth - secured the capital markets settlement business from institutional stakeholders
⁃ HDFC Bank led on tech : first bank in India to introduce mobile banking
⁃ Innovation - 10 sec personal loans to customers (based on customer’s past behavior)
⁃ Very predictable performance vs ICICI - HDFC learns from observing others and then forays in, while ICICI loves to be the pioneer
Astral Poly :
⁃ Innovated wrt category, replacing iron with CPVC pipes
⁃ First Indian pipes co to advertise on autos and buses
⁃ Noted and addressed the influencer (plumber) in the industry
Summary of winners
⁃ Focus on long term: not sacrificing long term goals for short term goals, building brand over the long term and being patient with it
⁃ Prudent capital allocation esp focused on core
⁃ Deepening competitive moat (IBAS)
Diversification without breaking the balance sheet : ITC is a good example
⁃ limited allocation of capital to new businesses
⁃ 50% of cash flow from ops given out to shareholders as dividends
⁃ Remaining cash flow from ops invested back into existing promising businesses
Notes from the book:
Greatness is largely a matter of conscious choice
Asian paints :
⁃ perhaps the first Indian co. to buy a mainframe. Used for demand forecasting and improving supply chain efficiency (1970s)
⁃ IBAS framework : Innovation, Brands, Architecture (org, process, IT), Strategic Assets (plants, depots, relationships)
⁃ First co. in India to introduce GPS based tracking of finished goods
Berger paints
⁃ introduced color tinting machines at dealers for last mile customisation
Marico
⁃ “We love to be boringly consistent” - Marico MD
⁃ one of the first companies in India to have an open office plan
⁃ HR innovation - organizing sports after work at factory to address worker unionization (because of free time and alcoholism earlier)
⁃ First co. in India to give out quarterly dividends
⁃ Gave company agnostic DMS to distributors
Page / Jockey
⁃ Genomal family licensed the brand for India. They were the first to start the Shop In Shop concept for the category in Philippines (within department stores)
⁃ PAGE — promoter’s mother - Parvati Genomal
⁃ Page India the first to not have wholesalers but distribute the products via distributors (to maintain control over channel and pricing)
⁃ Genomals also exclusively license for Speedo in India
⁃ Advertising approach : caucasian models for Indian consumers, in store advertising in MBOs
⁃ Brand does not offer discounts - no EOSS or other sale events ! More than 90 percent sales at no discount. Only slow moving obsolete inventory sold at flat 40 percent off twice a year
⁃ Managing labor - high participation of women (88 percent of labor force)
Axis bank
⁃ initial five yaars saw high NPA (bad loans), low CASA (current and savings accounts), and overall lower NIMs (net interest margins)
⁃ Shikha Sharma in 2009 led the move from a products oriented business to a customer oriented business (eg cross selling more products to a consumer)
⁃ Axis bank the first to introduce e KYC based on AADHAR
⁃ IBAS framework - meant for deepening the competitive moat
HDFC Bank
⁃ Innovative product - rapid check settlement for coop banks (which can only be in 1 state)
⁃ Early vision to sign up for a centralized internet enabled (online) banking software from iFlex
⁃ Big bang strategy to growth - secured the capital markets settlement business from institutional stakeholders
⁃ HDFC Bank led on tech : first bank in India to introduce mobile banking
⁃ Innovation - 10 sec personal loans to customers (based on customer’s past behavior)
⁃ Very predictable performance vs ICICI - HDFC learns from observing others and then forays in, while ICICI loves to be the pioneer
Astral Poly :
⁃ Innovated wrt category, replacing iron with CPVC pipes
⁃ First Indian pipes co to advertise on autos and buses
⁃ Noted and addressed the influencer (plumber) in the industry
Summary of winners
⁃ Focus on long term: not sacrificing long term goals for short term goals, building brand over the long term and being patient with it
⁃ Prudent capital allocation esp focused on core
⁃ Deepening competitive moat (IBAS)
Diversification without breaking the balance sheet : ITC is a good example
⁃ limited allocation of capital to new businesses
⁃ 50% of cash flow from ops given out to shareholders as dividends
⁃ Remaining cash flow from ops invested back into existing promising businesses
August 14, 2019
The Unusual Billionaires by Saurabh Mukherjea is a very well written insightful book about the journey of outstanding Indian Companies that have achieved long term success and made a great deal of money for investors.
Superior Financial Performance over a long period of time
Over a long period of time, financial performance is the best reflection of a company’s business stagey. The temporary short duration performance or underperformance i.e. change from one quarterly result to another is not that significant. Great companies sustain superior financial performance for a long period of time. They can endure difficult economic conditions. Their management teams have strategies that deliver results better than their competitors.
10% Revenue Growth & 15% Return on Capital Employed
The filter that Saurabh Mukherjea used to identify and do further research is consistent corporate performance i.e. growing with 10% revenue growth and 15% return on capital employed (ROCE) for every consecutive year over the past decade i.e. 2000-2015-time period. In case of banking and financial services company, the filter used is Return on Equity of 15% and loan book growth of 15%. Over 99% of the publically listed Indian companies fail to fulfill this this filter over the past decade.
The companies that satisfied the results are Asian Paints, Astral Poly, Berger Paints, ITC, Marico, Page Industries, HDFC Bank Limited, Axis Bank Limited. The book is enriched with anecdotes, strategies of these unusual companies, the multi-decadal evolution of these great companies and how they have created sustainable competitive advantage. The author has done extensive research on these companies, getting insights about the management strategy from current management to past management, promoters, distributors, customers of the company.
Common theme of these great companies
The common theme of these companies are
The management team is focused on the core franchise and the business instead of being distracted by short-term gambles outside the core segment.
The management team is relentlessly focused on deepening its competitive moat over time.
The management/board is sensible about capital allocation. If the cash cannot be deployed to good effect by the company in growth or diversification in related business, its more sensible to distribute it to shareholders.
These businesses are not run like a typical promoter mentality of centralizing power and wealth in his or his relatives hand. These businesses are run in a professional meritocratic way with long term value creation in their approach.
The focus on running a business efficiently, creating and sustaining competitive advantages, and prudent capital allocation lie at the heart of these winning companies. It’s important for the promoters & management to focus on core business or if there is a long term potential diversify on related business rather than an unrelated business. The short term gambles quite often result into a distraction from the core business, and it also adversely impacts the Return on Capital Employed (ROCE).
Superior Financial Performance over a long period of time
Over a long period of time, financial performance is the best reflection of a company’s business stagey. The temporary short duration performance or underperformance i.e. change from one quarterly result to another is not that significant. Great companies sustain superior financial performance for a long period of time. They can endure difficult economic conditions. Their management teams have strategies that deliver results better than their competitors.
10% Revenue Growth & 15% Return on Capital Employed
The filter that Saurabh Mukherjea used to identify and do further research is consistent corporate performance i.e. growing with 10% revenue growth and 15% return on capital employed (ROCE) for every consecutive year over the past decade i.e. 2000-2015-time period. In case of banking and financial services company, the filter used is Return on Equity of 15% and loan book growth of 15%. Over 99% of the publically listed Indian companies fail to fulfill this this filter over the past decade.
The companies that satisfied the results are Asian Paints, Astral Poly, Berger Paints, ITC, Marico, Page Industries, HDFC Bank Limited, Axis Bank Limited. The book is enriched with anecdotes, strategies of these unusual companies, the multi-decadal evolution of these great companies and how they have created sustainable competitive advantage. The author has done extensive research on these companies, getting insights about the management strategy from current management to past management, promoters, distributors, customers of the company.
“Persistence is what makes the impossible possible, the possible likely, and the likely definite.” Robert Half
Common theme of these great companies
The common theme of these companies are
The management team is focused on the core franchise and the business instead of being distracted by short-term gambles outside the core segment.
The management team is relentlessly focused on deepening its competitive moat over time.
The management/board is sensible about capital allocation. If the cash cannot be deployed to good effect by the company in growth or diversification in related business, its more sensible to distribute it to shareholders.
These businesses are not run like a typical promoter mentality of centralizing power and wealth in his or his relatives hand. These businesses are run in a professional meritocratic way with long term value creation in their approach.
The focus on running a business efficiently, creating and sustaining competitive advantages, and prudent capital allocation lie at the heart of these winning companies. It’s important for the promoters & management to focus on core business or if there is a long term potential diversify on related business rather than an unrelated business. The short term gambles quite often result into a distraction from the core business, and it also adversely impacts the Return on Capital Employed (ROCE).
“Strategy is about making smart choices and execution is about relentless implementation.” Phil Rosenzweig
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