One world; one gigantic marketplace !
The recently witnessed global recession has played a big role in changing the fortunes of the big corporate companies across the globe. The shift in the economic power from the west is clearly visible, if one takes a look at the list of ‘The Forbes Global 2000’ companies.
The power, if not politically, is at least tilting economically towards the Asian economies. While 56 Indian companies have got a roll call in the exclusive club of Forbes Global list of companies, China has registered 113 members in the elite list of companies.
Companies with the Rich Heritage
Some of the prominent companies that have featured in Top 200 list of the 2000 most powerful listed companies are Reliance Industries (at 126th place) followed by state-owned companies State Bank of India (130th) and ONGC (155th). Reliance Industries market capitalization stands at $69.36 billion.
The reputed US business magazine has ranked GE, Bank of America and Exonn Mobil among the top few rankers in a global ranking survey covering 62 countries. The US banking giant JPMorgan Chase tops the list of most powerful companies of the world.
While Mukesh Ambani’s Reliance Industries topped the list among the Indian companies in the elite list, Anil Ambani’s Reliance Communications (742 rank) and Reliance Infrastructure (1702 rank) have managed to find their place among the ADAG Group of companies.
Speaking about country wise inclusion of companies into the elite list, US tops with 515 members. Japanese and Canadian companies to the extent of 210 and 62 members managed to register their presence in the list.
Banks take a Lead among 56 Indian Companies
Interestingly, private banking major ICICI ranked at 282nd spot way ahead of HDFC Bank at 632 rank and PSU major Punjab National Bank at 695 rank.
Among the list of 56 companies that managed to make a cut in the top 2000 list, the banking industry has taken a lead to register their entry. PSBs such as Bank of Baroda, Bank of India, Canara Bank, Union Bank of India and Indian Bank have all got themselves counted among the top Indian companies.
Most of the banks have benefited from the sophistication drives in the last 3 years in a bid to pull up their socks to compete with private sector banks in the industry. At the same time, many PSB’s have also got the leverage from the recessionary impact which accounted to flight of money from private to public sector banks.
Number Crunching with Global 2000 Companies
The total profits generated by the Global 2000 companies’ stands at $1.4 trillion. However, it is interesting to note that the total market capital of these companies stands at $31 trillion which is almost equal to the sum total of the revenues at $30 trillion.
Now, compare these revenue figures with 2008 edition of the list. The Global 2000 companies in 2008 edition accounted for $30 trillion of revenues and $2.4 trillion in profits. How about market capitalization? Total market capitalization of Top 2000 companies then stood at $39trillion.
If we compare the latest figures with those of 2 years ago, we can say that the over-all demand has reached pre-crisis levels in terms of revenues figures garnered. However, the profit margins of Top 2000 companies seem to have dropped substantially from $2.4trillion in 2008 to $1.4trillion now.
Take a closer look at the market capitalization, which is still lower than pre-crisis period, hinting that the global stock markets still have about 20% to recover to reach that of pre-crisis period.
The Global 2000 list has also dropped out a few prominent companies on the back of disqualification or on being acquired or merged with other companies.
Confectionary company Cadbury was acquired by Kraft Foods in March 2010. Similarly, Wyeth was acquired by Pfizer. Japan Airlines filed for bankruptcy in January. Same fate on solvency issue was met by General Motors, which ultimately sold off its assets to a new independent company.
Top Indian Companies in Global 2000 List
Today seems to be Listmania day, Earlier in the day we gave you a list of Top 100 Outsourcing companies and Now featuring top 50 Indian companies….nice.. I am always fond of these kind of lists – Good reference points..