Most admired companies in India – 2nd edition (Fortune India)

(For my blog piece on last year’s edition – the first one by Fortune India – please click the below link. Had recorded some serious observations on methodology then. Hence, this time’s piece below is some sort of an addendum.  )

 First of all, this year, the survey has been published in July issue, a 1-2 month’s delay as compared to last year’s. Goes against the principle of “Endurance”, Team Fortune…much touted as one of your key metrics to evaluating “admiration” in companies.

 Who’s in, who’s not

Coming to the ranking, TCS is No. 1, followed by HUL, ITC, Infosys, SBI.

Good news – the Banks have made an entry – they were conspicuous by their absence last year (almost got tongue-lashed in my piece of last year J). With the addition of NBFC category, now, there are 4 companies in top 50 admired companies from the Financial Services space – HDFC, HDFC, ICICI, SBI.

Of the top 50, 10 are from IT/ITES, continuing their domination from last year. 3 of these are the top Indian services companies – HCL Technologies for all its EFCS strategy doesn’t seem to be admired !…by peers at least. Rest 7 are the Big global MNCs peddling chips, network, PCs and now software services. Won’t be far before Google India, Facebook etc start making the List.

The top 10 FMCG companies of India figure in the Top 50 easily. 5 consumer durables / devices companies make it to the list – Samsung, Sony, Nokia, Siemens, Godrej & Boyce.  

Maruti, Tata Motors, Toyota make up the auto sector. Airtel, Vodafone and Idea (AB Nuvo) bring in the fast-sagging telecoms group.

The rest 15 are from the “heavy” sectors – Steel, Oil & gas, Coal, Engineering.

Again, 27 out of 50 are Indian-born-and-bred companies. Rest are global MNCs. This is similar to the tally of last time. And of the 23 firangs, not all of them have been here for many decades (like HUL, ITC, Colgate, Nestle have). The IT/ITES and tech devices ones have sort of come in in the past 2 decades only. So, it’s not that eventually, Indian companies will dominate this list. Newer global MNCs will also keep on coming in.

 Criteria & Methodology : Ten parameters – Global Business Footprint seems to have been added to last year’s 9. Am hoping that global MNCs should not get unduly rewarded because of this. “Endurance” continues to impress me. Might get replaced in bullish times. Corp Governance & CSR is one cluster. Financial Performance, soundness and endurance is another. Leadership & Talent mgt is the people criterion. Innovation & Quality brings up the long-term business quality.

Number of respondents has increased from 300 odd to 550 odd this time. Increase the robustness of responses.

Possibly, I have speed-read this Fortune issue in today’s flight. Hence, am unable to figure that if IDFC is No. 1 on NBFC List of top 10, then why does it not figure in Overall Top 50, while HDFC Limited does ? (which was below IDFC in NBFC List). Similarly, Cipla is No 1 in Pharma but does not figure in top 50, while Reddy’s does. Same for some other categories too.

 Let me end this one with saying that “People spend entire life times waiting to be admired. Not so easy. 10 criteria and 550 peers. It’s hard work.”

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