|
|
|
Modi Enterprises adopts zero-based budgeting amid Covid crisis
|
|
|
|
Top Stories |
 |
|
|
|
Rituraj Baruah | 12 May, 2020
In the wake of the coronavirus crisis and the unforeseen financial
impact, Modi Enterprises has taken to zero-based budgeting to curb
unwarranted expenditure, said the conglomerate's Managing Director Samir
Modi.
Talking to IANS, Modi also said that the group has
postponed several of its major expansion and other corporate plans to
the next financial year on the back of the disruptions by the pandemic.
On
the need for change in strategy by businesses, Modi said strategies and
working models would have to change now on and the group has accepted
the changes.
"We have to reset and relearn ourselves," he said.
The founder of 24SEVEN, Modicare and Colorbar also said that
work-from-home would be a major focus for the group wherever feasible.
"We
have instituted zero-based budgeting process which we never did before.
Basically zero-based budgeting process is that you take all cost as
zero, you realign the cost and then you cut out all cost that is not
needed to be done and all managers have to justify the cost they have
put into the budget," Modi said.
Zero-based budgeting allows
top-level strategic goals to be implemented into the budgeting process
by tying them to specific functional areas of the organisation, where
costs can be first grouped and then measured against previous results
and current expectations. It can help lower costs by avoiding blanket
increases or decreases to a prior period's budget.
In an
interaction with IANS, Samir Modi also stressed on the significance of
work-from-home going ahead and said that Modi Enterprises would look to
adopt remote operations wherever possible.
He said that working
from home may become a major factor and companies, including his, would
have to ensure how e-learning, e-business compensates for coming to
work. Modi noted that six months ago he would have been averse to the
idea of work-from-home but now it may be a major feature in the group's
operations.
"A lot of rethinking would be required," he said,
while speaking about the need to align the operations and working
environment to the social distancing norms.
The entrepreneur
further informed that the home delivery would be major focus with
24SEVEN convenience store chain already rolling out the services in
select places. The chain has tied up with Swiggy, Zomato and Dunzo and
several of the stores have themselves taken to home deliveries.
Emphasising
the need of the significance of the essential goods segment, he said
that essential items will be a major segment in 24SEVEN and Modicare,
irrespective of the pandemic subsiding. "Because people will be more
conscious of safety and health and that will continue," he said. He
added that Colorbar is also coming up with essential items.
Speaking
on the implications of the pandemic on expansion and other corporate
plans, he noted that several plans and their executions have been
postponed till the next fiscal due to the recent disruptions.
Modi
said that cosmetics brand Colorbar recently acquired a proprietary
company in Paris and the revamp of the acquired brand has been put on
hold.
Further, the company's plan of expanding the 24SEVEN
network to Bengaluru in the south also has been postponed to financial
year 2021-22, he told IANS.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
84.35
|
82.60 |
UK Pound
|
106.35
|
102.90 |
Euro
|
92.50
|
89.35 |
Japanese
Yen |
55.05 |
53.40 |
As on 12 Oct, 2024 |
|
|
Daily Poll |
 |
 |
Do you think Indian businesses will be negatively affected by Trump's America First Policy? |
|
|
|
|
|
Commented Stories |
 |
|
|
|
|
|
|
|