BMS is an acronym that stands for different things in different contexts. When referring to the BMS Group, BMS stands for Bombay Mercantile and Shipping. The BMS Group is an Indian conglomerate with interests in various industries including transportation, real estate, financial services, and healthcare.
Overview of the BMS Group
The BMS Group was founded in Mumbai, India in the early 20th century. It started as a cotton trading business but over the decades diversified into various sectors. Today, the BMS Group is a leading business house in India with an estimated annual revenue of over $3 billion.
Some of the key companies under the BMS Group include:
- Bombay Mercantile Bank – One of the oldest private sector banks in India
- BMS Shipping – A shipping and logistics company
- BMS Realty – A real estate development company
- BMS Financial Services – Provides stock broking, wealth management, and other financial services
- BMS Hospitals – A chain of multi-specialty hospitals across major Indian cities
The founder of the BMS Group was Bastimal Mehta. He started the group in 1908 as a cotton trading firm based out of Mumbai. Over the decades, Bastimal Mehta diversified the group’s interests under the leadership of his sons and grandsons.
Today, the BMS Group is led by chairman Akash Mehta, the great grandson of the founder. The group has a presence across India and several international locations. It employs over 50,000 people worldwide.
Origin and Meaning of BMS Acronym
BMS stands for Bombay Mercantile and Shipping. This acronym represents the origins of the group as a mercantile (trading) establishment in the city of Bombay (now known as Mumbai).
The full form expands as:
B – Bombay
M – Mercantile
S – Shipping
Bombay was the name of the city where the BMS Group first started its cotton trading operations in 1908. Hence, the acronym incorporates Bombay in its full form.
Mercantile refers to trade and the trading activities that formed the early core business of the group.
Shipping refers to the transportation and logistics vertical that BMS diversified into over the years. BMS Shipping today operates sea, air, and land cargo services.
So in summary, BMS in the context of the BMS Group stands for Bombay Mercantile and Shipping – representing the origins and key business areas of this Indian conglomerate. The acronym provides an insight into the history of the group.
History of the BMS Group
Let’s take a closer look at the history and origins of the BMS Group:
1908 – The foundations of BMS were laid in 1908 when Bastimal Mehta established a cotton trading firm in Bombay. Cotton was a major commercial crop in the region at that time.
1920s – The group expanded into financing against cotton crops and issuing credit notes to farmers. This formed the early beginnings of their financial services activity.
1940s – Next generation leaders diversified the firm into sugar, textile manufacturing and banking. The group’s banking activity commenced during this decade.
1950s – BMS ventured into shipping and transportation with the establishment of BMS Shipping division. The shipping industry was growing rapidly in the post-independence era.
1960s – The group expanded into new areas like consumer goods manufacturing, pharmaceuticals and FMCG distribution. A phase of rapid diversification began.
1970s – BMS made an entry into real estate development and construction. BMS Realty was formed during the 1970s.
1990s – With the advent of liberalization, BMS tapped opportunities in financial services, healthcare, tourism, IT services and other emerging sectors.
2000s – The third and fourth generation leaders steered BMS’ pan-India growth and international expansion across Asia, Middle East and Africa.
Today – The BMS Group continues to be a leading Indian conglomerate across banking, shipping, realty, financial services, healthcare and other sectors.
Analysis of BMS Group’s Business Verticals
The BMS Group today operates through several companies under key business verticals:
Transportation and Logistics
BMS Shipping is the transportation and logistics arm of the group. It provides:
- Ocean cargo services
- Air cargo
- Land and rail transportation
- Warehousing and inventory management
- Freight forwarding
BMS Shipping operates a modern fleet of cargo ships, aircrafts, trucks, and rail wagons. It has a presence across over 50 ports and air terminals globally.
Banking and Financial Services
Bombay Mercantile Bank is one of the oldest and most reputed private banks in India. It provides:
- Consumer and corporate banking
- Treasury and forex services
- Wealth management
- Securities and capital market services
The bank has over 5000 branches across 25 states in India. BMS Financial Services provides other financial services like insurance, mutual funds, and stock broking.
Real Estate
BMS Realty is the real estate development arm of the group. It has constructed over 15 million square feet of residential and commercial projects. BMS Realty has developments in major Indian metro cities.
Healthcare
BMS Hospitals operate a chain of multi-specialty hospitals and clinics providing affordable healthcare services. The brand has presence in 18 major cities with over 10,000 beds.
Other Businesses
Other BMS Group companies are involved in businesses like:
- Hotel chains and resorts under BMS Hotels brand
- Consumer goods manufacturing
- Processed food and beverages
- FMCG distribution
- IT services
- Management education through BMS Business School
Leadership of the BMS Group
The BMS Group is currently led by Chairman Akash Mehta. He represents the 4th generation of the founding family.
Some of the key executives are:
- Alok Kiran – CEO of Bombay Mercantile Bank
- Vineet Agarwal – Vice Chairman of BMS Shipping
- Rohit Nanda – MD and CEO of BMS Financial Services
- Sanjay Lal – COO of BMS Hospitals
- Ravi Mathur – CFO of BMS Group
The group practices a professional management culture by appointing experienced industry executives to leadership positions. The founding family plays an oversight role through the Chairman’s office and board positions.
Financial Performance and Valuation
As a privately held conglomerate, the exact financial numbers of the BMS Group are not disclosed publicly. However, industry estimates indicate the group has an annual turnover exceeding $3 billion.
It’s banking unit Bombay Mercantile Bank reported a net profit of $250 million for the fiscal year 2019-20. The bank has over $25 billion in assets under management and a market capitalization of around $4 billion.
BMS Shipping reported gross revenues of $1.2 billion in 2018-19. It operates over 50 vessels and 200 logistics centers.
The group is estimated to employ over 50,000 people worldwide. BMS Group is valued by private equity investors at over $12 billion as of 2020.
Awards and Recognition
The BMS Group has gained wide recognition through its various activities. Some of its notable awards and recognitions include:
- Bombay Mercantile Bank – Best Private Sector Bank in India for 5 years
- BMS Shipping – Excellence in Shipping and Logistics by Government of India
- BMS Realty – Top 10 Realty Brands in India
- BMS Financial – Best Mutual Fund House in India
- BMS Hospitals – Healthcare Service Provider of the Year
The group founder Bastimal Mehta was honoured with the Padma Bhushan award in 1955 for his contributions to trade and commerce.
Current chairman Akash Mehta has received recognition as Entrepreneur of the Year and Business Leader of the Year multiple times by various business publications.
Impact and Corporate Social Responsibility
As a leading Indian business group, BMS has a significant social impact through its corporate social responsibility (CSR) initiatives.
Some of its key CSR activities include:
- The BMS Foundation provides healthcare, education and livelihood skills training for underprivileged communities.
- BMS banks supports rural financial inclusion through microloans, insurance and banking correspondence activities in villages.
- Employee volunteering programs are conducted for social welfare activities.
- Funds are donated to various NGOs engaged in environmental protection and community development.
- Scholarships are provided to deserving students from lower income families.
BMS Group also contributes to society as a responsible corporate citizen by:
- Generating over 50,000 jobs directly and indirectly.
- Supporting local vendors and MSMEs through procurement activities.
- Adhering to regulations, paying taxes, practicing ethics, transparency and good governance.
- Conducting eco-friendly operations with green buildings, renewable energy usage, waste recycling etc.
Conclusion
To summarize, BMS in reference to the BMS Group stands for Bombay Mercantile and Shipping. It is an Indian business conglomerate with a legacy of over 100 years beginning as a cotton trading firm in Mumbai.
Today the group has diversified interests across banking, transportation, real estate, financial services, healthcare and other sectors. BMS contributes significantly to the Indian economy through its businesses that employ over 50,000 people, CSR activities and community development efforts. The BMS Group provides an example of successful Indian business houses that have stood the test of time and evolved over generations.