Thursday, July 17, 2008

We Fell For Her Moves!

4Ps B&M gives the insider scoop on the top CEOs and companies to watch out for in this spanking new year of 2008!

Consider this! According to World Bank December 2007 data, India’s actual GDP for the year 2006 has been around $840 billion! That is, the total value of all goods and services produced within the ‘growth-oriented’ India by all the companies you could think of... is $840 billion! Before becoming fanatically paeanistic about India’s growth, digest this! The cumulative sales of the top three companies in the US – Walmart, ExxonMobil and General Motors – is $905 billion! Three US companies with 2.2 million employees year after year achieve more than what 507 million Indians (the total workforce of India) do!

As the saying goes, all is not lost. It might sound surprising, but the fact is that because of the performance of the Indian private sector – mainly due to which India’s current GDP growth rates are hovering at around the 8 to 10% mark year after year (one of the highest globally) – India can now at least envision equaling such astounding productivity benchmarks in a few years from now. Of course, the IT sector – with the world class TCS and its champion CEO Ramodorai leading the upsurge – is a beyond argument star of the future. But what beyond IT? Which are those industries and companies within India that are slotted to make the biggest noise in the year 2008? 4Ps B&M investigated...

Noted industry analyst V. Gibson gave his insight to 4Ps B&M, “The last year has been a very happening year for retail with the entry of new retail players! And the year 2008 will be much more eventful...!” In fact not only in India, but globally too, the retail merchandising and wholesaler industry has shown phenomenal promise. While merchandising as an industry provided the 7th highest returns to US shareholders last year, the wholesaling industry in the US was a smashing #1 with respect to profits growth (and in the top ten in revenue growth too). In India, the Future Group, led by Kishore Biyani, is sure to create waves by coming out with an IPO in 2008, a move which has the potential to catapult this group into the global league.

On another front, Shahina Mukadam, Head - Equity Research, IDBI Capital Market Services divulged to 4Ps B&M that she considers the real estate sector amongst her top three picks, a fact seconded to us by Dipen Shah, Vice President, Kotak Securities! S. Dungarwal, top realty analyst, commented to 4Ps B&M, “In 2008, those are the Tier 1 & Tier 2 city prices that would be going higher.” Is it a wonder then that the BSE Realty Index has appreciated by more than 65% since July 2007? And in India, it’s undoubtedly DLF – led by the newgen Rajiv Singh, the son of scion K. P. Singh – that has the potential to electrify the industry’s growth in the coming years! Think about it – a $12 billion project for constructing the New Bangalore city, another $12 billion project in Gurgaon and South Maharashtra, further ventures into insurance and asset management, what more could you ask of a company trying to shake up the industry?

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IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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