X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Fortune favours the... - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jul 16, 2007

    Fortune favours the...

    Led by strong global crude prices and consolidation, energy (oil, gas and petrochemical) companies lead the roll call on the Fortune Global 500 list. In fact, six of the top ten on the list are energy companies, led by Exxon Mobil (the overall list led by Wal-Mart, the world's largest discount retailer). The highest ranked Indian company on the list is again an energy company - Indian Oil Corporation - ranked 135. The company is also the only Indian representative in the Asian top fifty. The Asian top fifty has 31 Japanese and 8 Chinese companies.

    Fortune Global 500: The top 10
    Sales (US$ bn)
    Wal-Mart Stores 351
    Exxon Mobil 347
    Royal Dutch Shell 319
    BP 274
    General Motors 207
    Toyota Motor 205
    Chevron 201
    DaimlerChrysler 190
    ConocoPhilips 172
    Total 168
    Source: CNN Money website


    Now, here are some comparisons. The global top 3 almost make up for India's annual gross domestic product. Wal-Mart alone equals the size of the Indian retail market. The top Indian company, IOC, is just 13% of the size of Exxon Mobil, the world's largest energy company. So what does that say of India, which aims to lead the global economic growth in this century, and which aims to be the second largest economy in the world (after China) at the end of the next 43 years? It does say something! It says of the necessity for Indian corporations to go global at a much more rapid space - to tap new markets, new customers and new raw material resources - to emerge as full-grown global corporates rather being only the largest in their local markets. Definitely, localisation (having a strong domestic presence) is a necessity if companies have to succeed as large global companies. However, to grow into near the comparable size of the current heavyweights, Indian companies need a lot more than just concentrating on the domestic market.

    They require innovation in their products and practices. They require visionary managements capable of facing off the rough terrain that global competition can bring in. They need to create the competitive advantages that can sustain them in their challenge of the incumbents (the current global leading companies). And they need the hunger to carry on in their pursuit of higher growth, rather than resting on the laurels that they achieve in a few global moves here and there. For example, for it to be truly called a global organisation, Tata Steel cannot be satisfied with one Corus in its bag. Reliance needs to operate at a much bigger scale than what is currently operates at (and still manages to awe us). Banks like SBI need to do more than setting up international branches and taking care of needs of only the NRI community. Ranbaxy and Dr. Reddy's need to be more steadfast in their pursuit of launching patented products rather than continuing to breach patents of global pharma majors. ONGC needs to 'dig deeper into the global waters' and, more importantly, be successful in striking real oil and gas.

    The challenges are enormous. However, that is what is required to be big. There is probably no other way! Though some support from the government is definitely required in terms of easing regulations and speed up the execution process. However, the onus lies on these companies to ramp up their global presence, and do that successfully. Simply, they need to be brave. Fortune will definitely favour them!

     

     

    Equitymaster requests your view! Post a comment on "Fortune favours the...". Click here!

      
     

    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    Will They Haul Off Trump's Statue, Too? (Vivek Kaul's Diary)

    Aug 16, 2017

    All across the country, the old gods become devils. New, gluten-free gods take their places...

    This Company Beat the Business World's 'Three Killer Cs' (The 5 Minute Wrapup)

    Aug 16, 2017

    And what it has in common with beating the stock market too.

    5 Steps To Become Financially Independent (Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Let's Hope This Correction Continues (The 5 Minute Wrapup)

    Aug 14, 2017

    Last week's correction is making a number of Super Investor stocks look a lot more attractive...

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE SENSEX


    Aug 16, 2017 (Close)

    MARKET STATS