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BCG releases list of 100 global challengers
By siliconindia
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Saturday, 19 January 2008, 02:19 IST
New Delhi: When the Boston Consulting Group released its 2008 BCG 100 new global challengers report, 20 Indian companies could make it into the list. While 41 Chinese companies found a place on the list, thirteen companies on the list represented Brazil. The rest came from other rapidly developing economies (RDEs). The report was released at the India Economic Summit organized by the World Economic Forum in New Delhi.
Almost all the stalwarts of the Indian corporate sector, with the accent on manufacturing companies could find a place in the list. However, four leaders of the software space also could make it in to it. They are Infosys, Wipro, TCS and Satyam Computers.
The report is an analysis by the BCG of how 100 top companies from RDEs such as India, China, Russia, Mexico and Brazil, are changing the world and challenging the dominance of established multinational players across the world.
Arindam Bhattacharya, co-author of the report and and Managing Director, BCG, New Delhi said that the BCG challengers are already outperforming established industry leaders by many measures. In the past five years, the challengers grew revenues faster than the S&P 500. The growth was almost three times as fast since 2004. These companies also earned a higher average return on sales, and created far more shareholder value. "The challengers are increasingly looking for acquisitions abroad," said Bhattacharya. "In 2006 they completed 72 outbound acquisitions, up from 21 in 2000. The average size of these transactions grew from $156 million in 2001 to $981 million in 2006."
Anand Mahindra, Vice-Chairman and Managing Director, Mahindra & Mahindra, whose company was listed in the report, said "We still need to work hard, there's no guarantee that you will find a place automatically in the list." According to him Indian companies are striding out because most firms have strong managerial talent. The top-notch B-schools in the country were providing good strategic inputs to young managers.
M&M already found a place in the earlier edition of the report in 2006 but this year's new entrant for an Indian company was Suzlon Energy, now the fifth-largest company in the world for wind energy, with sales of $1.8 billion. Altogether, 17 new companies made it to the BCG list, several from the four BRIC countries and other RDEs as well. The report says that the BCG challengers are already quite formidable with over $1.2 trillion in total revenues and more than half a trillion dollars in yearly purchases.
According to the report, these companies' combined revenues will reach $3.3 trillion by 2010 and a massive $11.8 trillion by 2015. Meanwhile, hundreds more RDE based companies will gain critical mass and launch global expansions as well.