ACC, Ballarpur Industries, Bombay Dyeing, CEAT, GE Shipping, Century Textiles, Cummins India, Grasim Industries, GSK Pharma, Nestle Steel, Mukund Iron & Steel, Hindustan Motors, Indian Hotels, Indian Organic Chemicals, Indian Rayon Industries, Voltas, Zenith, Philips Electricals Company, Premier Auto, Siemens, Gujarat State Fertilisers & Chemicals
The second enduring myth revolving around the Sensex and the sense it makes of India Inc is the relentless rise of the services sector accompanied by the relentless decline of the manufacturing sector. It is virtually impossible to pick a book, a newspaper or a magazine and not read that China is the shop floor of the world while India is the back office. So breathless and senseless has been this coverage that you and I have been fooled into believing that manufacturing is dead in India and the smartest business families of the future are smugly ensconced in the services sector. Take a reality check and have another look at the 30 companies that constitute the Sensex. You will find Reliance, Tatar Steel, Jindal Steel & Power, Hero Honda, Bajaj Auto, Sterlite Industries....the list of manufacturing companies just goes on and on. Of course, the new icons of the services sector like Bharti, Infosys, Wipro and TCS have muscled their way into the Sensex. But please don’t be so naive as to write off the manufacturing sector. In fact, I would bet that more manufacturing entities muscle their way into the Sensex in the future.
The third myth that emerges when you are trying to make sense out of the Sensex is the one about the growing role of the private sector at the cost of the so called public sector. You and I can just dismiss this as a lot of nonsense! The fact is, the trend of public sector companies entering the primary markets is still a relatively new one. But boy, when they do, don’t they do it with a bang? Remember the Coal India listing? This inefficient and lumbering public sector company actually displaced Reliance as the most valuable company in the Indian stock markets a while back. The fact is, if this or some other government in the future decides to list public sector companies aggressively, they will actually end up dominating the Sensex. Size does matter and Indian public sector companies, like their counterparts in China and elsewhere, are usually 800 pound gorillas!
Now that we have busted the three enduring myths about changes in the power matrix of India Inc. as viewed through the Sensex, can we also raise another stark question about the so called dynamism and competitive strength of Indian companies? More than two decades after reforms, the Sensex is yet to play host to a world beating and truly world class Indian company like Google, Microsoft, Apple, GE, IBM, Intel....When that improbable event happens, I will lead cheerleaders to celebrate the emergence of India Inc. from crony Capitalism to Capitalism. Till then, it is two cheers to the animal spirits of India Inc.
The third myth that emerges when you are trying to make sense out of the Sensex is the one about the growing role of the private sector at the cost of the so called public sector. You and I can just dismiss this as a lot of nonsense! The fact is, the trend of public sector companies entering the primary markets is still a relatively new one. But boy, when they do, don’t they do it with a bang? Remember the Coal India listing? This inefficient and lumbering public sector company actually displaced Reliance as the most valuable company in the Indian stock markets a while back. The fact is, if this or some other government in the future decides to list public sector companies aggressively, they will actually end up dominating the Sensex. Size does matter and Indian public sector companies, like their counterparts in China and elsewhere, are usually 800 pound gorillas!
Now that we have busted the three enduring myths about changes in the power matrix of India Inc. as viewed through the Sensex, can we also raise another stark question about the so called dynamism and competitive strength of Indian companies? More than two decades after reforms, the Sensex is yet to play host to a world beating and truly world class Indian company like Google, Microsoft, Apple, GE, IBM, Intel....When that improbable event happens, I will lead cheerleaders to celebrate the emergence of India Inc. from crony Capitalism to Capitalism. Till then, it is two cheers to the animal spirits of India Inc.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
