Source : Jasubhai Digital Media
Pharma Companies Dominate India’s First Top 500 Indian Manufacturing List
Industry 2.0, India’s leading magazine for the manufacturing industry, today released the
Mumbai, Maharashtra, India -- (business2media) -- Thursday, August 28, 2003 7:06:36 PM
Pharmaceutical companies (18 in all) emerged toppers in Industry 2.0's Top 500 list of Indian manufacturing companies. Companies from the oil and gas and FMCG industries bag the second spot with 10 companies each in the first 100, followed by engineering at nine (excluding the power and electrical equipment industry list that has seven companies in the list). Engineering companies account for 20 positions in the bottom 100 followed by textiles (17 companies) and chemicals (10 companies) respectively.
Dr. Reddy's emerged No.1 in the top 500 list, having benefited substantially from a one-time exclusivity period it enjoyed in FY2002 on exports of the generic drug 'fluoxetine' in the US market. As far as scale is concerned, oil companies dominate the list, with IOC on top, followed by private sector Reliance Industries. The merger of Reliance Petroleum has helped Reliance Industries score over other public sector giants. Upstream oil company ONGC stands third, while public sector oil refining and marketing companies HPCL and BPCL have secured fourth and fifth positions, respectively. Based on higher revenues, these companies have managed to generate good amount of cash as well.
"Given the globalization of Indian companies and glocalisation of MNCs, we observed that successful companies in the manufacturing sector focused on increasing in scale, building world class capacities, and innovating. They pushed towards reducing costs through a mix of process re-engineering, technology infusion, fast track adoption of information technology (such as ERP and CRM packages) and rationalizing the work force. They also avoided putting all eggs in one basket, having worked towards accessing new markets, and creating strategic marketing tie-ups," says Maulik Jasubhai, Executive Director & Publisher, Jasubhai Media Pvt. Ltd.
Not a single government-owned company has been able to make it to the top 10. This, despite the fact that government-owned companies have managed to generate enormous revenue and profit. Seven government companies manage to appear in top 10 on the basis of scale though. Oil marketing company IBP, top among the government-owned companies, makes it to the 16th position.
Only 20 companies out of the top 100 exporting companies (within the universe of 840 companies and ranked in terms of exports / net sales) find a place in the top 100 companies ranked by operating margin. Similarly, only 17 top exporting companies find a place in the top 100 companies ranked on the composite profitability dimension. This clearly points to the fact that although exports give a fillip to the revenue, the manufacturing industry is still dependent on the domestic market to shore up the profitability levels.
The research also found that successful companies in the manufacturing sector have broadly focused on their core businesses, building world class capacities, rationalizing costs through a mix of process re engineering, technology infusion, fast track adoption of information technology (such as ERP and CRM packages), rationalizing the work force, and accessing new markets to hone competitive skills and later on break through to large volume business.
The research, undertaken jointly by Industry 2.0 and Investment Research and Information Services (IRIS), identified and ranked each company on 19 financial parameters that represents a company's position in five distinct dimensions (Size, profitability, credit quality, growth momentum and operating efficiency). Each dimension is accorded a different weightage (factoring in their relative importance) to arrive at the total rankings. The ranking is for the year 2002, and we have analyzed the performance of the entire universe of 840 odd companies in the ranking universe across a period of five years.
"The message is clear--while competition is here to stay and fat margins are a thing of the past, many Indian companies are much fitter than they were in the past and hungry to access newer markets," added Maulik Jasubhai.
About Industry 2.0
Industry 2.0 is a leading special interest publication of Jasubhai media that covers the best practices in manufacturing enterprises—be they discrete, process or hybrid companies. Aimed at CXOs and manufacturing heads across manufacturing enterprises, Industry 2.0 strives to be the ‘Voice of the Indian Manufacturing Industry’.
About Jasubhai Group
The Jasubhai Group (www.jasubhai.com) is a dynamic group of companies specialising in creating, customising and disseminating technology-related content for the print and electronic media. Established in 1967, the group's initiatives have spanned areas from heavy engineering and process instrumentation, to technology media, special interest publications like Industry 2.0, events and exhibitions like Chemtech and Pharmatech.
Jasubhai Digital Media, part of the Jasubhai group, has grown to become India's leading technology media company for almost five years now. From Digit, India's largest selling end-user computer magazine, to India's premium technology portal ZDNet India, and magazines like Computer Reseller News and Network Computing, we have the qualitative expertise to deliver quality content over multiple platforms.
Jasubhai Media is also a leading publishing group in Special Interest and Business-to-Business publications in India. With niche magazines in all major industrial segments like Industry 2.0, Indian Architect & Builder, Chemical Engineering World, Pharma Bio-world, Jasubhai Publications is fast emerging as the largest publishing house in the country.
Jasubhai group also holds major industry events like Chemtech World Expo and Pharmatech which provide an insight about the shape of things to come and also serve as a platform for technology and trade shows, joint ventures, foreign investments and strategic alliances.
Media Contact Details
Anurag Gour,
Jasubhai Digital Media,
+91(22) 27629191 Ext: 2113 ,
anurag_gour@jasubhai.com
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