It is the coming of age of India Inc. Indian corporates appear to be outpacing household names in the US and Europe and are having a profound impact on the global economy.
Godrej Consumer Products and Sun Pharmaceutical, along with four companies from the Tata Group, amongst 20 others, feature in Boston Consulting Group's Global Challengers list, revealing India Inc's growing success on the global stage.
Four companies from the Tata Group — Tata Chemicals, Tata Consultancy Services, Tata Motors and Tata Steel — also feature on the list of global companies that are growing so quickly overseas that they are surpassing many traditional multinational companies.
“Indian business leaders, with the accelerator mindset, target big growth and accept risk. They set high ambitions and pursue them with a strategy which is a big picture vision driven by colossal dreams. This is the talisman which will drive them in Asia and other markets and will offer stiff competition to global players,” notes Arindam Bhattacharya, MD, BCG India.
In caring for and feeding the growing middle-class, Godrej Consumer Products takes pride of place. Its 2011 revenues reached $1 billion. Godrej has focused its acquisitions on emerging markets. Recent acquisitions include Megasari Makmur Group in Indonesia, Darling Group in Senegal, and Issue Group and Argencos in Argentina. Similarly, Sun Pharmaceutical Industries has a strong presence in the US generic markets. Its 2011 revenues reached $1.7 billion, 62 per cent generated overseas.
In the building and driving the world category, Motherson Sumi Systems from India competes with Chinese and Brazilian firms. Motherson Sumi Systems posted 2011 revenues of $3.1 billion, 70 per cent of which originated overseas.
Many companies are also moving into new businesses and across the value chain. In 2011, Wipro enhanced its sector expertise by acquiring the oil and gas IT practice of US-based Saic, and in 2012, the software major acquired Promax Applications Group, an Australian analytics company specialising in trade promotion.
Companies such as Bharti Airtel and Godrej Consumer Products have leveraged their insights from the challenging Indian market to expand into other developing markets, notably Africa.
While Bharti Airtel is India's largest mobile provider and an emerging force in Africa, Godrej allows local managers in Africa to set local marketing and sales strategies and to tailor their offering, such as top selling hair products, to local needs. Indian companies are also moving into new markets. Auto player Bajaj Auto and Kawasaki, a Japanese maker of motorcycles and other vehicles, entered an alliance to jointly market their products.