KACHARAGADLA

The purpose of a corporate centre is to ensure that resources are invested to maximise profitable growth and long-term value. In spite of their clear purpose and value, corporate centres often get a vote of no-confidence. In these VUCA (volatile, uncertain, complex and ambiguous) times, it is not easy to keep abreast with all the changes impacting the present and future of the business. The primary goal of a corporate centre is governance and protecting shareholder value. Today, though India Inc is uniquely positioned with its conglomerate structure, it has few umbrella brands with diversified businesses under them. One can see a similar situation in Korea and to some extent in China and Japan. However, there is a need to understand the logic behind corporate centres. One Size Doesn't Fit All Corporates, especially conglomerates, are forced to deconstruct due to their size or diversification, investor engagement as well as strategy and governance issues. But it is rare