India Inc unable to think Asian

S R Kasbekar

The post-1991 economic reforms have dismantled the four decade-old dirigiste regime by freeing the Indian corporate sector from a plethora of undesirable controls and restrictions. Most Indian companies have, in fact, taken advantage of liberal environs to grow big. But as a recent survey illustrates, most have not grown big enough to arrive on the international scene.

This year’s Asiaweek ranking of 1,000 Asian companies shows that Japan — with 696 companies — dominates the listing followed by Australia and South Korea (52 each), Singapore 49, Taiwan 40 and China 28. It also indicates that commodities count more than knowledge. India, with 20 companies, is not far behind China, though. Indian Oil Corporation ranks ninth among the 50 largest companies outside Japan. Asiaweek also highlights that the ‘Hot Indian telecom firm VSNL, no 744, rewarded investors by doubling earnings to $396 million.’ But clearly, not many Indian companies are either thinking or acting Asian, forget global.

Only 20 Indian companies figure among the top 1,000. They account for 1.6 per cent of total sales, 3.8 per cent of net profit, 1.1 per cent of asset-worth and 1.7 per cent of total equity. Japanese companies dominate all the above parameters and Chinese corporates too leave India far behind. How do Indian companies stack up in the rankings?
Well, Indian Oil Corporation advances to the 34th slot up from 44 last year. Hindustan Petroleum ranks 121, Bharat Petroleum 130, Reliance Petroleum 192, and Reliance Industries is 209th in the listings. Of the 20 Indian biggies, 12 are public sector enterprises and the rest private sector companies. Oil refining, textiles, chemicals, oil and gas, iron and steel, automobiles, telecommunications and cement sector giants are on the list. The private sector giants, Hindustan Lever, ITC, Telco, L&T, Tisco and Grasim Industries have a presence and commodity sector companies dominate the overall rankings, while no IT company finds a place.

Barring China’s State Power at number 19, the top 20 slots go to Japan. Mitsubishi Corp occupies the top slot followed by Toyota Motors, Mitsui & Co, Itochu and Nippon Telegraph. Petrochina, a Chinese company, is the most profitable firm for the first time since the rankings began in 1992. Petrochina is the largest profit maker, notching up $6,671 million, while Indonesia’s state-owned Per Lisatrik Negara is the biggest loss-maker with losses to the tune of $2,922 million. Nippon Telegraph has the largest asset-worth at $201.9 billion and China’s State Power has the highest number of employees: 1,137,025 on its roster. Toyota Motor has the highest equity of $66 billion while Japan’s NTT DoCoMo has the highest market cap at
$ 139.1 billion.