Market Movers: Lessons from a Frontier of Innovation - IFC

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16Market MoversConclusion21st century businessThe company’s fortunes are closelyallied to those of the region. Thegrowth of Latin America’s GDPper capita over the past 25 yearshas been poor – lower than for allemerging-economy regions exceptsub-Saharan Africa. Moreover, statespending on infrastructure hasfallen sharply in all countries exceptColombia as fiscal controls havebeen tightened. Most spending onwater and sanitation in the regionremains publicly financed.The company has already beenthrough some hard times. Duringthe economic crisis between 1999and 2003, Amanco had to closea number of plants, althoughthe company provided extensiveretraining and outplacementservices to help laid-off employeesfind new work. To succeed inthe 21st century, Julio Moura,president and CEO of formerowner GrupoNueva, has saidthat companies need a differentapproach to that of the last century.In essence, they need to integratethemselves much more closely withwhat is happening in society ingeneral. Those that don’t, he says,“will be relegated to Jurassic Park.”The big opportunities over the nextten years, he believes, will comefrom “the things that society is mostconcerned about”. Among whichhe includes climate change, poverty,conflict and globalisation.Amanco’s new owners seemdetermined to continue with thesustainability strategy that madethe company so attractive whenit came on the market. Mexichemhas confirmed that it intends tocontinue with this approach andhas created a special board ofdirectors for Amanco, to reflectthe company’s wide geographicalspread and support its sustainabilitygoals. But there will be differentchallenges in nurturing such astrategy for a quoted company,with the short-term horizons thatare imposed on it by its investors,as opposed to those that werefaced by Amanco when it wasprivately owned.BOx 4: INNOVATIONLike any business, Amancoseeks to increase profits.However, the company isconstrained by the fact thatpipes are a commoditisedproduct, with traditionallylow margins. Amanco hassolved this challenge bydeveloping a value propositionbased on providing tailored‘water solutions’ to differentconsumer segments. Social andenvironmental problems suchas water leakage or farmers’lack of access to financing arethe source of ideas, and thenAmanco applies creativity,research and developmentto try to solve them. Amancothus turns these problems intoopportunities – innovatingproducts and services to meetneeds at a competitive price.Innovation in productionprocesses to reduce resourceand energy consumption hasalso helped the company keepprices down and contributedto increased profits.Courtesy of Amanco
Market Movers 17Courtesy of Amanco
Page 1 and 2: Market MoversLessons froma Frontier
Page 3 and 4: Market Movers3FOREWORDCorporate pio
Page 5 and 6: Market Movers 5How to use this repo
Page 7 and 8: Market Movers 7BOx 2: FOUR CASES IN
Page 9 and 10: Market Movers 9Integration. Sustain
Page 11 and 12: Market Movers11BOx 3: VIEWS FROM EL
Page 13 and 14: Market Movers 13PART II - CASES IN
Page 15: Market Movers 15 17Sustainability p
Page 19 and 20: Market Movers 19The amanco business
Page 21 and 22: Market Movers 21Sustainability perf
Page 23 and 24: Market Movers 23Courtesy of Deqingy
Page 25 and 26: Market Movers 25The deqingyuan busi
Page 29 and 30: Market Movers29Courtesy of Jubilant
Page 31 and 32: Market Movers 31The jubilant organo
Page 35 and 36: Market Movers 35Courtesy of MAS
Page 37 and 38: Market Movers 37the MAS business ca
Page 39 and 40: Market Movers 39Step 2: Identify ri
Page 41 and 42: Market Movers41Step 6: CommunicateT
Page 43 and 44: Market Movers43ignore the financial
Page 45 and 46: Market Movers 45we consideRed The f
Page 47 and 48: market movers47IFC Corporate Relati

Market Movers: Lessons from a Frontier of Innovation - IFC

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