7-3-2006

Business Standard

Indian business has adjusted to globalisation in many ways, but the process has also increased the risk profile of industry drastically. Tariff protections and licensing together with the lead times it imposed ensured that once a business successfully commenced production, neither domestic nor international competition could play spoil sport and there was a fair degree of stability in the sales, operating margins and consequently cashflows. This led to high debt levels; but both the lenders and borrowers were comfortable, given the stability

Indian business has adjusted to globalisation in many ways, but the process has also increased the risk profile of industry drastically. Tariff protections and licensing together with the lead times it imposed ensured that once a business successfully commenced production, neither domestic nor international competition could play spoil sport and there was a fair degree of stability in the sales, operating margins and consequently cashflows. This led to high debt levels; but both the lenders and borrowers were comfortable, given the stability…

http://www.business-standard.com/article/opinion/v-kumaraswamy-not-enough-equity-106030701085_1.html