Towards the beginning of the 60's decade, a productive system had already been conformed in Mexico, founded on an important industrial platform; the leap from an agricultural country, which Mexico was in the beginning of the century, towards an industrial Mexico had been accomplished.
The market had spread to all over the country. During that period, the demands were to diversify industry and to nationalize it. During this decade were sheltered, above all, the basic petrochemical and automotive industry. The growing industrialization aroused the manufacturing of capital, intervening and of lasting consumption goods.
Foreign capital was considered a promoter of those activities in which Mexican capital had not yet incurred. Thus, harmony among foreign and national interests merged into the guidelines of investments in Mexico.By the end of the sixties, the requirements of the growing industrialization forced action in a more professional way. Individual or family investments were not enough for the existing dimensions; it was necessary to create a more dynamic mechanism of industrial promotion. It was urgent for entrepreneurs to set up a project of progressive industrialization, according to Mexico's new reality.
So was the situation in Mexico, when Mr. Manuel Senderos Irigoyen came up with the idea of creating an Industry Developing Society. This Society would channel, on one hand the financial resources coming from several investors; and on the other hand, organize a specialized technical group that would professionally do consulting to both existent and new establishing enterprises.
In this way DESC (for "Desarrollo Económico Sociedad Civil" stands the acronym in Spanish) was born in 1973. It was necessary to make breaches not considered before in order to create an enterprise with Desc's characteristics, specially in an environment so completely unaware of this kind of business. So it was necessary to promote before federal authorities the creation of a legislation that would be adequate for this type of organizations. A very important part of the conceptual foundations from Mr. Manuel Senderos' Desc's formula is diversification.
Diversification is what makes an organization of this nature to be so slightly affected by the circumstances, by the crisis. In other words, it is what gives permanence, by equilibrating the market vicissitudes and the circumstances that affect each business.
In like manner, another goal in diversification is to make all areas compatible in order to optimize the administration. There must be homogeneity on the kind of operations because if there are too diverse areas, it would require people of very different mentalities.
Certainly, if setting up an enterprise like DESC was not easy, neither was adapting it to the requirements of those times. The diverse modes in conception and management of the company as well as the great effort to unify criteria show the richness and complexity of it, therefore the difficulties that have been saved to enforce it and make it accomplish completely with its role of directing enterprises. DESC's function is not direct. We don't buy, nor sell, nor produce. We provide services and direction; we define who should manage our subsidiaries and under which policies. It is a job of extreme strategic planning that has much more conceptual content than action.
DESC is an active dream. Each company has its own history, its own cultural basis. DESC is interested in keeping each of its companies with its own individual characteristics. Nevertheless, these should admit that their resources are mainly from DESC. This means we should have a common way of operating to constitute a culture that is also common to the Group.
Training is another clue element on this formula. People's education is essential in order to provide the necessary tools to be able to face any situation such as the economic crisis Mexico has suffered.
DESC invests great amounts of money in training its employees, convinced that people are the most important resource it's got. DESC has proven its strength and its true social utility. Nowadays it's an important piece of Mexico's industrial development. DESC's philosophy was shaped before the corporation became real and had as a basis the ideas of Mr. Manuel Senderos Irigoyen. Since the beginning, DESC starts acting not only as a union of stockholders from different companies -such as Negromex, Industrias Resistol and Spicer, that already existed-. But also as an active participant on the companies' policies definition, where DESC has investments.
This is done through a group of specialized professionals who furthermore keep an eye and supervise the management of all of them, but without interfering on its direct operations. The clue was to avoid centralization in spite of the Group's strength. Another important point on the development process of this shareholder company was the fact that is an absolutely Mexican organization.
This meant important advantages, as it did not have to account for its actions to foreign headquarters, allowing themselves to associate with whom they considered convenient, with the biggest negotiating capacity, always observing Mexican laws, and avoiding pyramidal effects.
Based on the above, each of DESC's companies has had its own growth and has determined its diversification, creating development poles with the purpose of taking advantage of the market conditions and turn into companies with a significant presence.
The key to success has been, among others, the fact that is not only a matter of adding experiences, but also resources on all fields in national and international levels. The synergy given by the number and importance of each of the companies that form DESC allows DESC to give them support on different areas like production, finances, human resources, and governmental resources. So, DESC's prestige acquired along 25 years has been used for the sake of profitable industrial and business activities.
Origins and foundation
The origins of Desc are tightly related with the saga of the Senderos family. Here is the story of how this enterprising family was founded in Mexico and their first business; the creation of "Seguros La Comercial" (La Comercial Insurance Company); the emerging of the idea of constructing an industrial group that would institutionalize the operations of other enterprises.
Is the narration of how this dream came true with the novel project of creating an enterprise for the industry developing, giving rise to Desarrollo Económico, S.C. (Economic Development), later changed to DESC.
-Liberto Senderos arrives to Mexico and starts the Senderos Irigoyen family.
-In 1936, Mr. Liberto Senderos creates the company Comercial Mexicana de Seguros (Mexican Commercial of Insurance), which by 1942 was directed by his son Manuel, and was sold in 1972.
-In 1969 Manuel Senderos creates the company that will mean the beginning of today's DESC: Consorcio de Empresas Mexicanas, S.C. (Mexican Enterprises Association), and 2 years later changes its name to Desarrollo Económico, S.C. (Economic Development).
-Towards 1970, Carlos Trouyet, Manuel Senderos and Alejandro Cumming agreed on the necessity to create a holding company that would give rise to the concept of industrialization on grand scale.
-Steps are taken to search for a new legal figure: the developing society, decree law came to light on June 20th, 1973 at the Diario Oficial de la Federación (Federation's Official Daily).
-On August 28th, 1973 DESC, Sociedad de Fomento Industrial, S.A. de C.V. (DESC, Industrial Developing Society), is born.
-The first 7 enterprises fostered were: Negromex, Spicer, Resistol, Petrocel, DM Nacional, Automagneto and Industria de Baleros Intercontinental.
-On 1975, DESC shares are registered on the Registro Nacional de Valores e Intermediarios (National Registry of Shares and Intermediaries).
-In 1980 the group organizes its enterprises into 3 divisions: petrochemical, metal-mechanic, and food.
The taking of majorities
From 1980 to 1982, DESC lived an intense stage of construction and development, facing with intelligence, prudence and imagination the painful crisis of '82, to which it survived successfully.
You can consult here how the Group's development was forged during their first decade of life; how it came out triumphant after the abrogation of the decree of Developing Societies; and the positive ending of the battle against the crisis.
1980 - 1982
-By 1980, on sales matters, DESC is one of the ten largest private Groups in the country, registered on the Mexican Stock Market.
-In 1981 another stage on DESC starts, in which the corporate deliberately assumes a combined function of owner and director.
-As of 1981 DESC is obliged to obtain the majority of the companies and consolidate with the Treasury. The Developing Societies Decree comes to an end.
-To increase its participation in the subsidiaries, in at least 50% plus 1 share, DESC assumes a debt of 75 million dollars on june of 1982.
-After the spectacular devaluation, DESC's debt grew more than seven times, reaching 500 million dollars.
-Through the Concamin, a group is organized to find, along with the government and foreign banking, a feasible way to save the country's productive plant, so FICORCA is designed.
-DESC takes all necessary steps to solve the financial problem in short and medium term and, although the crisis has a dramatic effect, at the end it resulted in strengthening the Group.
-With 17 new businesses, started before the crisis, DESC managed to increase its capacities, suiting its companies to the size of its markets and wait for the recovery.
-The Group has a clear Mexican identity, but starts looking outwards. As of 1982, it is clear that DESC is no longer a Developing Society but an authentic industrial group.
After DESC's success over the 1982 crisis, and after 10 years of its foundation, DESC begins an important stage of consolidation in which it is stated how the Group should perform on the 90's decade. It will be a period of challenges and commercial opening, a cycle that is closed with the retirement of Mr. Manuel Senderos Irigoyen in 1987. At the beginning of 1989 an era concludes and another one begins, leaded by Fernando Senderos Mestre.
1982 - 1989
-The SHCP (IRS) credits DESC as a controller company, so did to its subsidiaries on February 1983.
-By this year, the Group continues with 3 operating divisions, in which the 11 companies are included, plus 100 subsidiaries.
-Training acquires a capital importance at DESC that will work to form a staff it can be proud of.
-In 1983, DESC designs a strategic plan called DESC 90, which intention was that by 1990 the Group's companies would be competitive according to international standards. The goals are accomplished in only 5 years.
-By the end of 1984, DINE joins the group, with which the Desc's real estate division is born.
-DESC starts to assimilate the Total Quality Culture. Toward the end of 1987 the Mexican Foundation of Total Quality is created; Resistol is one of the founder members.
-In January 1986 the general manager position disappears and its functions are taken by the Direction Committee, which was formed then by Manuel Senderos Irigoyen (President), Antonio Ruiz Galindo Jr., and Fernando Senderos Mestre.
-On august 4th, 1987; Manuel Senderos decides to retire from the Direction Comittee, leaving Antonio Ruiz Galindo in his place, who would constitute the Direction Committee along with Fernando Senderos Mestre.
-On May 2nd, 1989, Antonio Ruiz Galindo asks for his retirement from the company and Fernando Senderos Mestre is accepted as Chairman and Chief Executive Officer.
Towards the year 2000
In 1989, DESC starts a new stage lead by Fernando Senderos Mestre, who without forgetting the original line set by don Manuel Senderos Irigoyen, starts designing the future based on innovative strategies as a technology impulse, financial internationalization, diversification and the application of the Total Quality System.
The road to the end of the millenium of this worldwide class enterprise, is firmly traced and always supported by DESC's people, basis of this story full of successes.
Is the history of From Figures to Facts.
1989 - 1998
-In 1991, the process to start practicing DESC 2000 strategy begins.
-Interdesc is created, a system of diagnosis and quality promotion.
-As of 1991, DESC sponsors social projects with resources that were traditionally used for Christmas gifts.
-In 1992 is given the first "Interdesc Award" for Total Quality Management.
-By 1992, DESC is 20 years old and one of the 10 largest companies of the country, with around 20 thousand people collaborating.
-In 1993, the price of the Group's shares goes up 110%, eurobonds are successfully placed of Girsa and Dine for 150 and 175 million dollars respectively on medium terms.
-As of 1994 the Group's internationalization starts by selling its shares at New York's Stock Market. This placing of 100 million dollars is one of the most far-reaching accomplishments of the Group in financial matters.
-On july 1996, a new sale of shares is accomplished both in New York's and Mexico's Stock Markets for almost 107 million dollars.
-On April 1994, the denomination of DESC, Industrial Developing Society, S.A. de C.V. is approved to change to DESC, S.A. de C.V.
-In 1995, DESC destines resources to the conversion and modernization of its plants, in order to strengthen its competitiveness.
-Thanks to the strength of its business, because of a successful strategy on adapting to new conditions of a global economy, and to the ability of its teams, DESC achieves excellent results in 1996 and 1997.
-By 1998, more than half of the operation utilities of the Group came from businesses that have technology of their own.