"If we believe that world GDP growth will hail from emerging economies, then our priority is to invest in them". For this reason, the primary objective of IT services provider Telvent – subsidiary of Abengoa – is to reach growth rates of between 30% and 40% in emerging markets, up from the current 20%. The multinational's chairman, Manuel Sánchez Ortega, revealed this goal at the latest Matins ESADE session, sponsored by Ernst&Young and La Vanguardia.
On another note, the company hasn't ruled out further takeovers. Sánchez underlined the importance of constant investment into R&D, although he admitted that "sometimes you're overtaken by other companies, especially in the fiercely competitive technology sector". "That's when", he added, "you have to think about buying them".
The Telvent chairman declared he was open to possible sources of finance and said it was a wise move to join the NASDAQ Clean Tech index, explaining "we could have joined the Spanish stock market, but to start trading in the USA was an exciting challenge that has boosted out internal control system". On the other hand, he pointed out that "Spain is a good brand name for certain sectors, but is not a leader in technology".
Global diversification to tackle crisis
Talking about the crisis, Sánchez highlighted that the world escaped global economic collapse in 2009. He acknowledged the appearance of green shoots but conceded that "the end of the crisis is still far away". On this, he predicted between 4 and 5 years until the situation is "healthy", but "by then we're likely to be talking about another crisis", he concluded.
Sánchez believes we are in the midst of a structural crisis, which raises the question of whether the economic model is sustainable in the medium to long term. His answer lies in diversification. Given the state of today's economy, it is necessary to adapt to new trends. Therefore, he emphasised the need to diversify sector presence, investment opportunities and sources of finance, as well as geographically speaking. Likewise, he stressed, "you shouldn't put all your eggs in one basket. You need to be present in a range of sectors".
Programme:
Manuel Sánchez Ortega, President and CEO of Telvent, will feature this new session of Matins ESADE entitled "Global Diversification as a Strategy".
Telvent is a multinational firm dedicated to developing information technology solutions that will lead to a safe and sustainable world. It is the only European company traded solely on the American NASDAQ stock market.
Welcome and closing: Xavier Sanchez (Lic&MBA 97 / SEP 08), Director of ESADE Alumni
Introduction and presentation: Xavier Busquets (MBA 92), director of the Department of Information Systems of ESADE
Conference: Manuel Sánchez Ortega, President and CEO of Telvent
Discussion:
Moderated by Jordi Goula, Economics Editor at La Vanguardia
