The Unusual Billionaires by Saurabh Mukherjea – Book Summary
The Unusual Billionaires by Saurabh Mukherjea explores the rare Indian companies that have delivered consistent financial performance over long periods. These businesses show that with the right strategies, governance, and leadership, sustained excellence is achievable. The book blends real-life business stories with actionable insights for investors and entrepreneurs.
Who May Benefit from the Book
- Aspiring entrepreneurs aiming to build long-lasting companies
- Business leaders focused on growth with governance
- Long-term investors searching for solid investment frameworks
- Students of finance and management
- Readers interested in Indian business success stories
Top 3 Key Insights
- Consistent high performance is rare but possible – Only a handful of companies sustain 10% revenue growth and 15% ROCE for a decade.
- Core focus wins – Sticking to a growing core business outperforms diversification.
- Moats matter – Innovation, brand strength, stakeholder relationships, and strategic assets protect long-term success.
4 More Lessons and Takeaways
- Prudent capital allocation fuels smart growth – Great companies invest gradually, avoid overleveraging, and aim for returns above cost of capital.
- Corporate governance boosts trust – Clean accounting and independent boards attract investors and lower risk.
- Customer focus creates value – Companies that build around customer needs earn loyalty and pricing power.
- Empowered teams drive excellence – Open cultures and strong talent pipelines improve performance and innovation.
The Book in 1 Sentence
A deep dive into seven Indian companies that prove sustainable success comes from focus, discipline, and values.
The Book Summary in 1 Minute
The Unusual Billionaires presents detailed case studies of Indian companies like Asian Paints, HDFC Bank, and Marico, which achieved long-term success by focusing on core strengths, building competitive moats, and maintaining high standards of corporate governance. Saurabh Mukherjea outlines a framework called the Coffee Can Portfolio to identify such rare companies. The book stresses capital discipline, innovation, and people-first cultures while reinforcing that long-term consistency outshines short-term spikes. It’s a guide for investors, leaders, and entrepreneurs aiming to understand what drives durable business excellence in a volatile world.
The Book Summary in 7 Minutes
Some companies quietly and consistently outperform for years. They avoid market noise, stick to the basics, and scale gradually. The Unusual Billionaires showcases seven such Indian companies that have beaten the odds by focusing on sustainable strategies rather than flashy moves.
What Makes a Company “Unusual”?
Only 0.2% of the 5,000+ listed companies in India have shown consistent revenue growth above 10% and ROCE above 15% for a decade. These companies are what Mukherjea calls “Coffee Can” stocks—set them aside and let them grow.
Their strength lies in:
| Criteria | Description |
|---|---|
| Core focus | They do not diversify unnecessarily |
| Innovation and branding | Constant improvements and strong customer recall |
| Strong governance | Transparent accounting and ethical practices |
| Prudent capital allocation | Invest conservatively and wisely |
| Employee and customer focus | Culture of excellence and service |
Focus on the Core Business
The most successful companies double down on what they do best.
- Asian Paints focused solely on paints and built world-class capabilities.
- HDFC Bank didn’t stray from banking, even when others chased diversification.
- Page Industries kept its eyes on the Jockey brand in innerwear.
Such focus builds depth, drives excellence, and allows efficient capital use.
Building Moats Using IBAS
Mukherjea uses John Kay’s IBAS model to explain moats:
- Innovation: Continual improvement in product and process
- Brand: Strong recall, trust, and customer preference
- Architecture: Unique relationships with suppliers and distributors
- Strategic Assets: Rare licenses, supply chains, or scale advantages
| Company | Moat Example |
|---|---|
| Marico | Brand equity of Parachute and Saffola |
| Asian Paints | Tech-enabled supply chain |
| HDFC Bank | Customer-friendly digital infrastructure |
Capital Allocation Discipline
Instead of splurging on acquisitions or expansions, these companies:
- Test ideas before scaling
- Avoid debt unless necessary
- Use surplus cash wisely
Astral Poly expanded plants only after proving local demand.
HDFC Bank kept loan quality high, avoiding risky lending.
Governance and Clean Accounting
Good governance signals strong leadership. Companies that value transparency:
- Publish clean, accurate financials
- Treat minority shareholders fairly
- Maintain independent boards
This earns investor trust and lowers the cost of capital. Asian Paints and HDFC Bank are textbook examples.
Customer-Centric Strategy
Customers stay loyal to companies that put them first.
- Page Industries delivers comfort and quality in every garment
- HDFC Bank built its reputation around user-friendly digital banking
- Marico adapts to changing consumer needs with R&D
Customer obsession leads to pricing power and brand loyalty.
Empowering People and Building Culture
Sustained excellence comes from within.
- Performance-driven cultures
- Transparent communication
- Alignment of employee and business goals
Asian Paints hires top talent and offers career paths.
Marico promotes autonomy and entrepreneurial thinking.
These practices reduce churn and improve innovation.
Technology and Data as Enablers
Tech is not a luxury; it’s a growth tool.
- Asian Paints uses predictive analytics for inventory
- HDFC Bank automates services and reduces turnaround
- Astral Poly adopted modern manufacturing early
Smart use of tech helps scale without compromising service.
Resilience and Adaptability
These companies stay true to their mission while evolving with the market.
- Marico expanded to wellness and international products
- HDFC Bank shifted focus from corporate to retail banking
- Regular strategy reviews and R&D investments keep them future-ready
They balance tradition with innovation.
Long-Term Thinking
Consistency beats flash. These firms are “boringly” predictable:
- Build slowly
- Avoid hype
- Stick with what works
The result? Higher compounding returns, loyal customers, and durable brands.
| Long-Term Habit | Result |
|---|---|
| Regular reinvestment | Strengthened core capabilities |
| Disciplined hiring | Quality teams and low attrition |
| Steady brand building | Customer trust and pricing power |
About the Author
Saurabh Mukherjea
Saurabh Mukherjea is a leading financial analyst, investor, and author. He is the founder of Marcellus Investment Managers and was the former CEO of Ambit Capital. Educated at the London School of Economics, he specializes in Indian equity markets and is known for his unique investment frameworks, such as the Coffee Can Portfolio. His writing blends deep research with actionable advice, making complex financial ideas easy to understand.
How to Get the Best of the Book
Read one company story at a time. Pause to reflect on key practices. Use the Coffee Can criteria to evaluate real businesses around you.
Conclusion
The Unusual Billionaires shows that greatness in business comes from clarity, consistency, and clean execution. These companies teach us that focusing on core strengths, maintaining ethics, and thinking long-term lead to success that lasts. It’s a must-read for those who want to understand how Indian companies quietly outperform year after year.