Business Environment

Indias Business Conglomerates

Track top 10 Indian companies through 2000, 2010 and 2014.
1. Observe the change in the composition and reasons for it.
2. Observe the drive for consolidation and core competence in Indias business conglomerates.
Each group deals with different examples.
I have analysed the top 10 companies on the reports 2000, 2010 & 2015.

Below are some of the findings:

1. The sectors (IT, FMCG, Telecom & Petrochemical) have reduced in their count from 2000 to
till date.
2. Some New sectors like Infrastructure, Trading & Electrical companies were not in 2000, They
appeared in 2010 but again vanished in 2015
3. Mining, Pharma & Banking sector were not in 2000, but now has some contribution in 2015.
Some Analysis on the Market:
1. Indian economic liberalization started from 1991 and we opened up doors for the foreign
players in our market.
2. Though there were fears initially, our companies too refined and started refining their systems
to compete with the multinational companies in our ground.

Business Environment
Indias Business Conglomerates
3. From the early 2000s, Merger and acquisitions started, Indian companies too went abroad
and started acquiring the global companies to compete.
4. In 2000s there were only 4 major sectors in top 10 which became 8 in 2010 and is reduced to
6 sectors now. The industries that are able to quickly align to global standards and give tough
competition are able to be in top, rest of the industries are losing out the market share.
5. The composition consisted of IT, Petrochemical & Telecommunications in 2000s whereas
now, Banking, petrochemical & telecommunication is having major chunk.
6. Companies like Wipro, HCL and Satyam that ruled in 2000s could not retain the market share
because of the entry of lot of new players who were competitive in executing the low level
jobs. Their cost was less compared to Wipro and Wipro lost that area of business and market
share.
7. Many players entered the tele communication industry and the market share is divided in to
all of them.
8. The banking sector became one of the promising sectors in India and we are seeing lots of
new players entering in the last decade.
9. Companies like TCS and Infosys, have entered in to software development and support for
the banking sector and are able to keep themselves in the top 10 They slowly built their
core competence in banking sector and are able to cater to multinational clientele.
10. The automobile and manufacturing industry also has lots of players and none of them are
keeping the major market share, the market condition is very competitive there.
11. The company like ONGC and Coal India are able to be in top 10 because of the government
policies and regulations that control the number of players entering in to the segment.
12. Even though the governments change, The Indian government is continuously focusing on
the liberalization of the market which will help the foreign investments to come in and create a
much competitive market for Indian firms
13. The firms that anticipate this and re-structure themselves to compete with the robust systems
of the multinational companies will be able to thrive in the market and others will lose to
competition.
14. The market liberalization has surely brought the best in us till now and will continue to bring
the best in future too
Note: I have browsed few papers published by analysts and few companies to understand the
gist and have summarized my understanding as a whole.