Ten Indian companies have made it into the list of Asia300 analysis report published by Nikkei. The Asia300 list consists of a total of 327 companies in India, China, Hong Kong, South Korea, Taiwan and six Southeast Asian nations. The Nikkei ranked them based on average growth in sales and profit over the past five years, profitability, capital efficiency and financial soundness. The Taiwanese leading smartphone maker from the Electronic components industry- Largan Precision made it to the Numero Uno spot. It is heartening to note that the top 5 players include three Indian household names – HCL Technologies, Zee Entertainment Enterprises and Tata Consultancy Services.
These were ranked ahead of the online shopping Chinese behemoth – Alibaba, which was at the 6th position. The 5th spot was grabbed by the company with the world’s lagest semiconductor foundry – Taiwan Semiconductor Manufacturing Co. (TSMC). The other Indian players in the top 20 were Infosys, ITC, Maruti Suzuki India and Lupin. The world’s largest ayurvedic, natural health care company, Dabur India made it to the 24thspot. From the industrial specialites industry, Asian Paints was at number 28 in the list.
India’s presence in the rankings becomes all the more impressive as none of the Indian players made it to the list of top 10 in the previous financial year. These results testify to India’s solid personal consumption despite the government’s demonetization of two high-denomination bank notes last November. The combined net profit of Indian companies on the Asia300 list increased 9.8% in the year, a sharp contrast to the 9.8% fall for Chinese and Hong Kong companies combined. Relying more on the U.S. and European markets than other Asian companies, Indian players have been relatively unaffected by China’s economic slowdown.
Apart from an increase in the consumption, policy is likely to drive growth, according to Joshua Crabb, head of Asian Equities at Old Mutual Global investors. He believes that the Prime Minister Narendra Modi is likely to deploy a more aggressive growth policy ahead of the general election in 2019, with a meteoric rise in spending for infrastrucute development. He believes that the PM will primarily focus on railways and affordable housing. “The probability of [Modi] starting to accelerate all these changes and fixed-asset investment is pretty high,” he said. “And he needs to start doing that relatively soon in order to have it impacting real people when it comes to the time to have their votes.” Does it provide the impetus to see more Indian companies in the 2018 list. Only time has the answer