Thirteen Indian companies are among the 200 best companies outside the US with revenues of less than $1 billion, according to a rating done by Forbes. The top 200, the magazine says, were selected from among 20,000 companies worldwide. The Indian companies that make the grade are Asian Paints, Britannia Industries, Dr Reddy Labs (DRL), HDFC Bank, ICICI Bank, Indo Gulf, Infosys Technologies, Mastek, Polaris Software, Rolta India, Satyam Computer, Visualsoft and Zee Telefilms.
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IT major Infosys Technologies, petrochemicals giant Reliance Industries and two-wheeler company Hero Honda Motors have been ranked as the top three companies in India for 'overall leadership' in the Far Eastern Economic Review's annual company survey. Infosys Technologies took the top honours in three of the individually ranked leadership categories for 'high quality services/products,' 'management with a long-term vision' and 'a company that others try to emulate.' Reliance Industries, for the fourth year running, ranked No. 2 in the survey for 'overall leadership'. Reliance was also ranked No.2 in 'long-term vision,' 'financial soundness' and 'companies that others try to emulate.'
Recent years have catapulted some InfoTech companies to the top. Traditionally the Tatas and the Birlas have been the most respected corporates of India. However, the rise of Reliance and InfoTech companies like Wipro and Infosys, has left them far behind.
The Tatas
The Tata Group of companies include some of the most outstanding companies of India, like TCS, Tata Steel, Tata Motors, Tata Teleservices, Titan, Tata Tea, Tata TD Asset Management, Trent, Tata Steel, Tata Motors, Indian Hotels, Tata Tea and Tata Technologies.
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Altogether it has 80 companies in seven sectors. Materials, chemicals, energy, and engineering products are product-driven; engineering services, automotive, communications and IT, services and consumer goods brand-driven.
Tata Sons
It is a successor to the first trading company founded by Jamsetji Tata, Tata Sons Ltd. That promoted and managed all key Tata Group companies until 1970. Adhering to the trusteeship concept of management, about 66 per cent of the company's capital is held by philanthropic trusts endowed by Jamsetji's sons, Sir Dorab Tata and Sir Ratan Tata, and other charitable trusts. These trusts have sponsored and promoted a number of public institutions in the fields of science, technology, medicine, social service, rural welfare and the performing arts.
Tata Sons Ltd. is the principal investment holding company of the Tata Group and has the following operating divisions:
- Tata Consultancy Services
- Tata Economic Consultancy Services
- Tata Financial Services
- Tata Quality Management Services
Established in 1968, Tata Consultancy Services (TCS) is the largest operating division of Tata Sons Ltd. It provides a wide range of services in the areas of information technology and management consultancy. Tata Sons Ltd. has also promoted and established subsidiary companies abroad, such as Tata Ltd., London, and Tata International AG, Zug. Tata Sons Ltd. is the proprietor of the TATA marks, which are registered as trademarks in various classes for a variety of goods. These marks are licensed to operational Tata companies for use in relation to their products and/or services. Under the Tata Brand Equity and Business Promotion Scheme, Tata Sons Ltd. centrally promotes and protects a unified TATA mark, both in domestic and international markets.
The Tata Sons Ltd. Board is made up of the chairmen or CEOs of major operating Tata Group companies, and the elected chairman of the Board of Tata Sons Ltd. is recognised as the Group Chairman. The company is based in Mumbai.
Tata Industries
Established in 1945, Tata Industries Ltd. was the managing agency for the Tata Group until 1970. In 1983, following the preparation of a long-term strategic plan, Tata Industries pioneered the entry of the Tata Group into several new sectors that were expected to have a significant impact on India's economy in the future. Since then, Tata Industries has functioned as the catalyst for the introduction of new businesses within the Tata Group, especially in areas of high technology and future economic potential.
Tata Industries Ltd. has promoted projects in the fields of finance, telecommunications, oil field service, process control, management systems and information technology. It has two divisions that operate as independent profit centres, Tata Strategic Management Group and Tata Interactive Systems. Tata Industries Ltd. is based in Mumbai.
The Aditya Birla Group
The Aditya Birla Group is one of India's largest business houses. It owns companies like Hindalco, Grasim and Indian Rayon. The Group's operations span 40 companies over 18 countries, which include - Thailand, Malaysia, Indonesia, Egypt, Canada, Australia and China. Its revenues are in excess of US$ 6 billion and it has a market capitalization of US$ 5 billion. The Group has 72,000 committed employees and over 700,000 shareholders.
The Aditya Birla Group is a dominant player in all its areas of operations:
Aluminum, Copper, Cement, Viscose Staple Fibre, Carbon Black, Viscose Filament Yarn, Fertilizers, Insulators, Sponge Iron, Chemicals, Branded Apparels, gas, palm oil, Insurance and Asset Management, Software and Telecom.
The Group has strategic joint ventures with global majors such as Sun Life (Canada), AT&T (USA), the Tata Group and NGK Insulators (Japan), and has ventured into the BPO sector with the acquisition of TransWorks, a leading ITES/BPO company. The Aditya Birla Group too believes in the trusteeship concept of management. Part of the Group's profits is ploughed back into meaningful welfare-driven initiatives that make a qualitative difference to the lives of marginalized people. These activities are carried out under the aegis of the Aditya Birla Centre for Community Initiatives and Rural Development, which is spearheaded by Mrs. Rajashree Birla.
Reliance - India's largest business house
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The Reliance Group founded by Dhirubhai H. Ambani (1932-2002) is India's largest business house with total revenues of Rs 80,000 crore (US$ 16.8 billion), cash profit of over Rs 9,800 crore (US$ 2.1 billion), net profit of over Rs 4,700 crore (US$ 990 million) and exports of Rs 11,900 crore (US$ 2.5 billion). Anil Ambani and Mukesh Ambani now run the Company.
Founded as a textile mill in 1966, Reliance continued to be a textile company until early 1980s. However, seizing the opportunities emanating from the growing Indian economy as well as the opening up of the regulation-driven sectors of the economy such as petrochemicals, plastics etc., Reliance pursued the policy of backward integration from textiles as well as diversification from the early 1980s onwards to set up world-scale facilities for manufacturing polyester and textile intermediates, plastics and polymer intermediates, detergent intermediates etc.
The group's activities span exploration and production (E&P) of oil and gas, refining and marketing, petrochemicals (polyester, polymers, and intermediates), textiles, financial services and insurance, power, telecom and infocom initiatives. |
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The Reliance Group Companies include: Reliance Industries Limited, Reliance Capital Limited, Reliance Industrial Infrastructure Limited, Reliance Telecom Limited, Reliance Infocom Limited, Reliance General Insurance Company Limited, Indian Petrochemicals Corporation Ltd. and BSES Limited.
Reliance enjoys a pre-eminent position in India's economy with group revenues of nearly 3.5 per cent of India's GDP. The group's leadership position in India is also reflected in its all round contribution to the national economy.
The group contributes:
- 5 per cent of India's total exports
- 10 per cent of the Government of India's indirect tax revenues
RIL alone accounts for:
- 30 per cent of the total profits of the private sector in India
- 10 per cent of the profits of the entire corporate sector in India
- 7 per cent of the total market capitalisation in India
- Weightage of 15 per cent in the BSE Sensex
- Weightage of 12 per cent in the Nifty Index
One out of every four investors in India is a Reliance shareholder.
With globally competitive capital and operating cost positions, Reliance Group dominates the rapidly growing Indian market deriving over 80% of its revenues from the domestic market. Reliance exports its products to over 100 countries, including the most quality conscious customers in the US and Europe. Reliance has set up new export offices in China, UAE, Vietnam, Turkey and Indonesia.
Wipro
Wipro's businesses include; Wipro Technologies, Wipro Infotech, Wipro Consumer Care and Lighting, Wipro Fluid Power, Wipro GE Medical Systems Limited. It is the first PCMM Level 5 and SEI CMM Level 5 certified IT Services Company globally. It provides comprehensive IT solutions and services, including systems integration, Information Systems outsourcing, package implementation, software application development and maintenance, and research and development services to corporations globally. Wipro's chairman, Mr. Azim Premji is said to be the richest man in India.
In the Indian market, Wipro is a leader in providing IT solutions and services for the corporate segment in India offering system integration, network integration, software solutions and IT services. It also has profitable presence in niche market segments of consumer products and lighting. In the Asia Pacific and Middle East markets, Wipro provides IT solutions and services for global corporations. Wipro ePeripherals is a group company formed in 2000 with a focus on peripherals. Wipro has a joint venture with GE Medical Systems called Wipro GE Medical Systems Limited.
Wipro made its beginnings in 1945 when the Western India Vegetable Products Limited was incorporated in the Maharastra state, India. The company was started as an oil-crushing unit making hydrogenated cooking oil. Later, in the 1970s it embarked on an ambitious phase of expansion. The vegetable products factory gradually grew into a consumer products group, manufacturing soaps and then entered the InfoTech area. Diversification and restructuring to meet the market demands have been Wipro's strong points in its 50 odd years of existence.
Within five years, its turnover went up from Rs 40.82 million in 1965-66 to Rs 104.09 million in 1970-71. The first diversification came about in 1975, into hydraulic cylinders and fluid power components. The original factory in Amalner diversified into soaps, toiletries, baby care products. Later Lighting products were added.
In early 80's when India was on the threshold of an IT boom, Wipro entered the Infotech area and tasted early success in its R & D. An energetic, committed team of professional R & D and marketing managers was brought together in Bangalore in 1980. In a small lab at the Indian Institute of Science (IISc), the team developed the first Indian mini computer based on Intel 8086 chip. With the success of R & D in India it was natural for Wipro to look at the global market to grow the business. That was also the time when India was entering the era of liberalization. It saw a big opportunity in the global market using the untapped talent pool in India. Within four years of entering the global market with IT services, Wipro became the second largest exporter of IT services. That was the beginning of their most profitable business, Wipro Technologies. It tied up with GE Medical Systems to set up a Joint Venture in 1992. Then in 1997, it launched Six Sigma, the internal quality rejuvenation process to ensure that its quality standards are world class.
Infosys
Infosys Technologies Ltd. provides consulting and IT services to clients globally - as partners to conceptualize and realize technology driven business transformation initiatives. Mr Narain Murthy, who built the company is no longer the CEO, but is still present for advice. With over 21,000 employees worldwide, they use a low-risk Global Delivery Model (GDM) to accelerate schedules with a high degree of time and cost predictability.
Infosys
| Corporate headquarters: |
Bangalore, India |
| US headquarters: |
Fremont, CA |
| Worldwide offices: |
Argentina, Australia, Belgium, Canada, France, Germany, Hong Kong, India, Japan, the Netherlands, Singapore, Sweden, Switzerland, United Kingdom, United Arab Emiratesand United States |