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Saturday, February 11, 2012

Indian Companies in the FORBES Global 2000 List


The FORBES Global 2000 list is the list of the top 2000 companies in the world. Only the 2000 of the largest and most successful companies in the world make it to this list. Did you know that 57 companies from India feature in that list for the year 2011?
Surprised, aren’t you? Well, I was too… This post is to list down those 57 companies that feature in this prestigious FORBES Global 2000 list along with their ranking/position in the list.

The Top 20 in the FORBES Global 2000 List

Before we look at the India companies that made it into this list, it would be unfair if we did not list down the Top 20 companies in this Global 2000 list.
1. JP Morgan Chase
2. HSBC
3. General Electric
4. Exxon Mobil
5. Royal Dutch Shell
6. Petro China
7. ICBC
8. Berkshire Hathaway
9. Petrobras
10. Citigroup
11. BNP Paribas
12. Wells Fargo
13. Banco Santander
14. AT & T
15. Gazprom
16. Chevron
17. China Construction Bank
18. Wal-Mart
19. Total
20. Allianz
Out of these 20, 8 are from the Banking Industry and 6 are from the Oil & Gas Industry.

What is the highest ranked Indian company in this list? – Any Guesses???

Well done if you had guessed it as “Reliance Industries”. Yes, Reliance Industries is the highest ranked Indian company in this FORBES Global 2000 list at position 121. The full list of 57 companies from India that feature in this list are as follows:

Rank Company Name
121 Reliance Industries
136 State Bank of India
172 ONGC - Oil & Natural Gas Corpn of India
243 Indian Oil
288 ICICI Bank
348 NTPC - National Thermal Power Corpn of India
418 Coal India
453 Bharti Airtel
499 Larsen & Toubro
512 TATA Motors
541 SAIL - Steel Authority of India Ltd
589 HDFC Bank
639 BHEL - Bharat Heavy Electricals Ltd
643 Hindalco Industries
653 PNB - Punjab National Bank
701 TCS - TATA Consultancy Services
735 HDFC Ltd
763 Bank of Baroda
769 TATA Steel
782 Wipro
789 Infosys
816 Canara Bank
820 Axis Bank
899 GAIL - Gas Authority of India Ltd
918 ITC Ltd
963 Bank of India
964 Bharat Petroleum
1008 Reliance Communications
1025 Mahindra & Mahindra
1054 Hindustan Petroleum
1076 NMDC
1119 Power Grid of India
1195 Power Finance
1204 Jindal Steel & Power
1241 Union Bank of India
1275 DLF Ltd
1353 Rural Electrification
1368 TATA Power
1388 NHPC - National Hydro Power Corp Ltd
1405 Adani Enterprises
1423 IDBI Bank
1492 Grasim Industries
1512 Kotak Mahindra Bank
1513 Central Bank of India
1515 Indian Bank
1546 Oil India
1560 Hero Honda
1591 Allahabad Bank
1613 Oriental Bank of Commerce
1639 Bajaj Auto
1645 Corporation Bank
1684 Sun Pharma
1709 UCO Bank
1780 JSW Steel
1782 Syndicate Bank
1806 IOB - Indian Overseas Bank
1831 Andhra Bank

9 comments:

  1. Why is it that a company that is as large as Reliance or State bank is not large enough to be in the top 50 or even 100 co's in the world?

    ReplyDelete
  2. @ Rajan

    The difference in value of the currencies between India and developed nations like USA/UK etc is the main cause. If the Rupee was equal to the US Dollar then probably Reliance would be among the worlds most valuable companies. Unfortunately our currency is nearly 50 times weaker than the US Dollar, so a company from India has to be 50 times bigger than its US counterpart in order to be equal in terms of monetary value.

    Anand

    ReplyDelete
  3. I don't think the reason is currency valuation against dollar. Rankings are based mainly on revenues and profit with many other smaller factors. Revenue generated will be the value for product. That value for product should not depend on exchange rate. In foreign markets they will have same currency dealings. In domestic market, their revenue will differ mainly because of purchasing power parity. I personally think, Reliance is not in top 50s or 20s because it has not yet generated the amount of revenue generated by Exxon Mobil etc. It will be able to do so only after capacity expansions or other market factors.

    ReplyDelete
  4. @ Mohit

    The currency valuation could be a great factor esp. for company's like SBI that have a great local business and minimal business abroad. This is because, if Bank of America makes a million dollar sales, SBI has to make a sales worth 50 million rupees in order to equal Bank of America in terms of sales. Same is the case with RIL if you compare it with Exxon..

    Though currency valuation isnt the only reason for the raking, it is one of the important reasons that is not in support of our Indian cos.

    Do you agree?

    ReplyDelete
  5. See, here comes the point. As you said "SBI has to make a sales worth 50 million rupees in order to equal Bank of America in terms of sales" Then I say it should make a sales worth 50 million rupees. Why should it depend on exchange rate?. Say if we bind ourselves just to this example of SBI with no other factors, It is a clear case of Parity. What I mean is say SBI sells one Samosa and earns Rs. 5 ,while American bank sells one samosa it earns $1 (or Rs. 50, assuming exchange rate is constant , to highlight the importance of parity ), then this extra revenue of Rs. 45 is because of parity difference, while both companies sell same number of samosas i.e. the product.
    What do you say?

    ReplyDelete
  6. @ Mohit

    All numbers are converted to US Dollar before they are used for arranging company's in order. Lets do a case by case comparison between JP Morgan Chase & SBI - Both are Banks and both of them are in the Forbes Global 2000. JPMC is No.1 and SBI is No. 136

    JPMC: In US$ Billions

    Sales - 115.5
    profit - 17.4
    Assets - 2117.6
    Market Value - 182.2

    SBI: In US$ Billions

    Sales - 29.1
    Profit - 2.6
    Assets - 322.2
    Market Value - 36.1

    SBI: In Indian Rupees Billions

    Sales: 1425.9
    Profit - 127.4
    Assets - 15787.8
    Market Value - 1768.9

    If you compare a per-unit sales in terms of local currency SBI profit is 6 times, Sales is more than 10 times, Assets is 7 times and Market Value is nearly 9 times that of JPMC.

    Do you think that JPMC has more customers than SBI? or
    Does JPMC has more branches than SBI? or
    More Staff than SBI?

    No. Still, JPMC is No.1 and SBI is way down

    Now tell me - Do you think that the difference in value between USD and INR doesnt play a major role in ranking?

    Anand

    ReplyDelete
  7. Hi Friends, Can someone please clarify why these companies couldnt qualify even though they have huge revenues.

    Hinduja Group ( Ashok Leyland), Vedanta Resources and there are lots of subsidiaries under these group which also have revenues of over 5 billion USD ?

    And also Geethanjali Group, I guess this group is close becoming a bigger company that Tiffany Group USA. They are into Jewelley Retailing. I can give lots and lots of companies which are far bigger than companies in the list especially the one in the range from 1800 - 2000 list.

    ReplyDelete
    Replies
    1. Vinodh

      Read the other comments man. There has been a lengthy discussion in that topic just above

      Anand

      Delete

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