MUMBAI: China and India are heading the charge of ambitious businesses from rapidly developing economies that are set to transform markets around the world, a report said yesterday.
The 44 Chinese companies and 21 Indian firms will head the Asia-skewed list of top-performing companies with strong global ambitions from 12 countries surveyed, according to an analysis by the Boston Consulting Group and the Confederation of Indian Industry.
Low labour costs, large domestic markets and experience in fighting multinational companies on their home turf have provided the springboard for these companies to be a significant challenge on the world stage.
The 100-company list had combined revenues of US$715bil – equivalent to the entire national output of Russia – and growing at 24% a year, the report said.
“A revolution in global business is under way,” said the report entitled, “India's Emerging Global Challengers.''
“Companies from rapidly developing economies such as Brazil, China, India and Russia ... are expanding overseas and will radically transform industries and markets around the world,” it said.
The list included 70 from Asia, followed by 18 from Latin America – including 12 from Brazil – and 12 from central and eastern Europe.
While the combined gross domestic product (GDP) of India and China came to 42% of the total of the developing economies in the study, their companies represented 65% of the list.
Russia and Indonesia were sharply under-represented compared with the size of their economies.
The report said that a variety of “fast-moving globalisation forces”, including the development of the Internet and economic reforms in different countries, were driving the process.
While attention focused on multi-billion dollar acquisitions by a handful of companies, the report said the firms achieved most of their international growth through exports or setting up international operations.
The countries examined were Brazil, China, the Czech Republic, Hungary, India, Indonesia, Malaysia, Mexico, Poland, Russia, Thailand and Turkey. – AFP