The Hindu Business Line : Home to BCG 100 challengers

China: China is home to the largest number of challengers (41). On average, these companies earned 2006 revenues of $14.5 billion and achieved a compound annual growth rate (CAGR) of 26 per cent for 2004 to 2006. In 2006 their operating profit margin averaged 14 per cent, down from 15 per cent in 2004, and international sales accounted for 17 per cent of their total revenues, up slightly from 16 per cent in 2005. Of the 41, 34 are publicly traded, including most of the 29 companies that are mostly or entirely State-owned. The total shareholder return (TSR) of the publicly traded companies for January 2002 to June 2007 grew at a CAGR of 27.7 per cent.

India: India has 20 challengers. Their revenues for 2006 averaged only $3.9 billion, but they boasted an impressive CAGR of 31 per cent for revenues from 2004 to 2006. The operating profit margin of these companies averaged 16 per cent in 2006, down from 17 per cent in 2004. International sales in 2006 represented 47 per cent of total sales, up from 40 per cent in 2005. All the Indian companies on the list are publicly traded, and none of them are State-owned. Their TSR for January 2002 to June 2007 grew at a CAGR of 38.2 per cent.

Brazil: Brazil contributes 13 challengers to the 2008 list. Their 2006 revenues averaged $9.8 billion (skewed by Petrobras, whose 2006 revenues were a whopping $72 billion) and have been growing very fast; the average CAGR for revenues from 2004 to 2006 was 35 per cent. The operating profit margin of these challengers averaged 25 per cent in 2006, down from 26 per cent in 2004. Their 2006 international sales accounted for 30 per cent of total revenues, up from 28 per cent in 2005. Of these 13 companies, eight are publicly traded and only Petrobras is State-owned. The TSR of the publicly traded companies for January 2002 to June 2007 grew at a CAGR of 44.5 per cent.

Mexico: Mexico weighs in with seven challengers, which had average 2006 revenues of $9.5 billion. These challengers grew their revenues, on average, at a CAGR of 29 per cent from 2004 to 2006. Their operating profit margins remained steady over the same period, at an average of 18 per cent. International revenues accounted for 56 per cent of total 2006 revenues, up from 51 per cent in 2005. Five challengers are publicly traded and three State-owned. The TSR of the publicly traded firms for January 2002 to June 2007 grew at a CAGR of 39.5 per cent.

Source: The 2008 BCG 100 New Global Challengers