Indian firms 2nd active global challengers

By agencies   |   Friday, 07 April 2006, 07:00 Hrs
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MUMBAI: A study by Boston Consulting Group and CII today said that India stands second on the list of global challengers.

In the list of 100 companies chosen from 12 rapidly growing economies, 44 Chinese and 21 Indian companies are the emerging global challengers, the study said.

“These companies are leading the third wave of globalization. A few of them like the Infosys and Wipro or the Haier of China have started assuming leadership positions and have captured media attention,” Arindam Bhattacharya, director, BCG said adding these companies are ready to challenge, or, as in some cases, are already challenging the dominance of multinationals from developed countries.

The Tata group dominates the list with five of its companies - Tata Steel, Tata Motors, Tata Consultancy Services, Tata Tea and Videsh Sanchar Nigam Ltd - making the grade. Other Indian companies include Hindalco, Reliance Industries, Bajaj Auto, Mahindra & Mahindra, Bharat Forge, TVS Motors, Larsen & Toubro, Ranbaxy and Cipla. Only one public sector player, Oil and Natural Gas Corp, managed to make the grade.

Vikram Bhalla, director BCG said, “On the other hand, almost 90 percent of the Chinese companies are state-run.” Both the countries showed a similar appetite for acquisitions, with more than 70 percent of their acquired firms coming from the mature markets.

The 21 Indian companies in the list acquired 21 overseas firms between them in 2005. Overall, India Inc bought out 192 companies in the year.

"Better still, now the ticket size of these mergers and acquisitions is getting larger," added Bhalla.

The report, titled “India's Emerging Global Challengers,” notes that Indian companies have been able to leverage their engineering and research strengths to market innovative technology-based solutions, like what Dr. Reddy’s Pharmaceuticals has done.

A second report called “Advantage, the India manufacturing opportunity,” prepared by CII and BCG, said that the country's manufacturing base is one of the largest among the developing economies.

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