News: North India's top 10 value creators
(TNN 24/03/2006) New Delhi - Today, business in North India is flourishing thanks to its Top 10 entrepreneurs. Just over a decade ago, when these players started off — in FMCG, telecom, pharma or auto — success was a term often linked to the South and West. That, well, is a thing of the past. Today, best practices and better topline have made them the benchmark against the best of the world. ET chronicles the Great North Ride.
The resurgence of North Indian business is now an established fact. Take any financial parameter—profitability , growth, return on shareholder funds, market capitalization -- the performance of North Indian companies is at par with, if not better than, their counterparts in other parts of the country. ET has for long reported and recognised this revival.
To celebrate the men who have made this possible, we have compiled an exclusive list of 10 entrepreneurs based in North India who have created maximum value for their shareholders. They have been selected and ranked on the basis of market capitalisation of their companies on the Bombay Stock Exchange as of March 2, 2006. As the purpose of this exercise is to applaud domestic private enterprise, government owned companies and MNCs have not been considered while compiling the list.
Our selection does not constitute the club of the 10 richest men in the region. Instead, it forms the league of entrepreneurs whose companies have been valued the most by stock markets. While these men belong to a host of diverse sectors ranging from telecom to IT to pharma to chemicals to two-wheelers to FMCG, there are several similarities between them. First, all of them are leading companies that have come into prominence in the last 10 to 15 years. None of them belong to the traditional families that dominated North Indian business 25 to 30 years back.
Moreover, many—Sunil Mittal, Shiv Nadar, B M Munjal, Jaiprakash Gaur, Deepak Puriare first generation businessmen who have built successful companies from scratch. A striking feature of most leading entrepreneurs and business families of the North is that having created success, having established their core businesses , they are doing what is in the DNA of all entrepreneurs: entering new areas and creating new businesses.
The Singhs of Ranbaxy have become a key player in the healthcare arena through Fortis, a company promoted by them. They have now chalked up aggressive growth plans in the financial services business. Sunil Mittal’s Bharti group, which had remained focused on telecom over the last decade has now entered the agri business, announced plans to enter insurance and financial services, and is also looking at the food retail business.
The Hero group, which had for long concentrated on the automotive business, has entered the IT, ITeS, training and engineering design businesses and is also looking at other new opportunities. Even the supposedly conservative Burmans of Dabur have entered the insurance sector, picked up equity in Lord Krishna Bank, and in a move that surprised most acquired more than 11% holding in Punjab Tractors.
Of course, in today’s competitive global business environment, there is no guarantee that these industrialists will continue to succeed in the long run, or that they will even make it to our list next year. Ranbaxy continues to find the going tough in the competitive US market . Back home, Bharti has an aggressive Reliance Communication Ventures snapping at its heels. Hero Honda faces competition from Bajaj Auto. Time will tell whether their leaders as well as the other leaders in this list go the way of the traditional North Indian business families, or whether they are made of sterner stuff. Watch this space!
The resurgence of North Indian business is now an established fact. Take any financial parameter—profitability , growth, return on shareholder funds, market capitalization -- the performance of North Indian companies is at par with, if not better than, their counterparts in other parts of the country. ET has for long reported and recognised this revival.
To celebrate the men who have made this possible, we have compiled an exclusive list of 10 entrepreneurs based in North India who have created maximum value for their shareholders. They have been selected and ranked on the basis of market capitalisation of their companies on the Bombay Stock Exchange as of March 2, 2006. As the purpose of this exercise is to applaud domestic private enterprise, government owned companies and MNCs have not been considered while compiling the list.
Our selection does not constitute the club of the 10 richest men in the region. Instead, it forms the league of entrepreneurs whose companies have been valued the most by stock markets. While these men belong to a host of diverse sectors ranging from telecom to IT to pharma to chemicals to two-wheelers to FMCG, there are several similarities between them. First, all of them are leading companies that have come into prominence in the last 10 to 15 years. None of them belong to the traditional families that dominated North Indian business 25 to 30 years back.
Moreover, many—Sunil Mittal, Shiv Nadar, B M Munjal, Jaiprakash Gaur, Deepak Puriare first generation businessmen who have built successful companies from scratch. A striking feature of most leading entrepreneurs and business families of the North is that having created success, having established their core businesses , they are doing what is in the DNA of all entrepreneurs: entering new areas and creating new businesses.
The Singhs of Ranbaxy have become a key player in the healthcare arena through Fortis, a company promoted by them. They have now chalked up aggressive growth plans in the financial services business. Sunil Mittal’s Bharti group, which had remained focused on telecom over the last decade has now entered the agri business, announced plans to enter insurance and financial services, and is also looking at the food retail business.
The Hero group, which had for long concentrated on the automotive business, has entered the IT, ITeS, training and engineering design businesses and is also looking at other new opportunities. Even the supposedly conservative Burmans of Dabur have entered the insurance sector, picked up equity in Lord Krishna Bank, and in a move that surprised most acquired more than 11% holding in Punjab Tractors.
Of course, in today’s competitive global business environment, there is no guarantee that these industrialists will continue to succeed in the long run, or that they will even make it to our list next year. Ranbaxy continues to find the going tough in the competitive US market . Back home, Bharti has an aggressive Reliance Communication Ventures snapping at its heels. Hero Honda faces competition from Bajaj Auto. Time will tell whether their leaders as well as the other leaders in this list go the way of the traditional North Indian business families, or whether they are made of sterner stuff. Watch this space!
posted by InCar Group Press Room at 16:41
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