Every year, around this time, Forbes, one of the most revered publications in America, releases the list of the world's top 2000 companies. Forbes' ranking for 2007, however, has some pleasant surprises as far as India Inc. is concerned. A total of 34 companies have made it to the elite list, the top 10 of which are dominated by the American firms, led by Citigroup. The Indian pack is led by the public sector company Oil and Natural Gas Commission (ONGC), which is ranked 239. The representation is spread across sectors such as energy, banking, Information Technology (IT), capital goods, utilities, food, consumer durables and telecom. Banking sector major State Bank of India [(SBI) (326)], Mukesh Ambani-led Reliance Industries (258), Tata Consultancy Services [(TCS) (1047)], and Bharti Airtel (1149) are some of the notable firms from India which have found place in this year's list.
Referred to as the Global High Performers, to make the final cut, the companies are selected on the basis of four parameters, namely, sales, market value, assets, and profits. These firms are the trendsetters in their respective industries. The idea behind using a composite ranking (of these four metrics) is essentially on account of the fact that a single parameter cannot present the true picture of a firm's performance. For instance, size is important, be it domestic or international market, but it does not guarantee success. For, it is a fact that with size comes complexity and together they rob the companies of their ability to grow like start-ups. Further, if only sales are considered to rank the firms, the ranking would be highly skewed in favor of retailing firms, which would make the ranking look lopsided. |
