ACC, Ballarpur Industries, Bombay Dyeing, CEAT, GE Shipping, Century Textiles, Cummins India, Grasim Industries, GSK Pharma, Nestle Steel, Mukund Iron & Steel, Hindustan Motors, Indian Hotels, Indian Organic Chemicals, Indian Rayon Industries, Voltas, Zenith, Philips Electricals Company, Premier Auto, Siemens, Gujarat State Fertilisers & Chemicals
Making Sense of the Sensex & India Inc.
The sensex of 1991 has lost 70% of its constituents. however, they are not necessarily the usual suspects that form part of what we can call popular folklore!
The more things change, the more they appear to remain the same. And the more you believe propaganda being peddled as statistics, the more your chances of being mesmerized by contemporary mythology. Things are not very different when you actually sit down and analyze the kind of companies that have been entering and exiting the 30 scrip Sensex since 1991, when economic reforms were launched and the animals of entrepreneurship were unleashed.
Beyond the hype and hysteria that usually mark any coverage and analysis of India Inc. and the stock markets, let us puncture a few abiding myths about corporate India as reflected in the composition of the Sensex.
Myth number one is that old hoary chestnut about the decline and fall of Indian business families. Apparently, the unleashing of entrepreneurial energies since 1991 has triggered the emergence of new tycoons and companies and dynasties that have replaced the old business families who were so steeped in the license permit culture prevailing prior to 1991 that they had simply lost the art of competing in the marketplace. At a first glance, this interpretation does appear to be correct. Except for the Aditya Birla group, the Birlas have surely witnessed a terminal decline. Forget the Sensex, it is difficult to find them even in the list of top 100 listed companies in BSE. Once upon a time, Bombay Dyeing was a blue chip in the Sensex and Nusli Wadia a powerful name in India Inc. Alas, those glory days are gone. The Goenkas, too, have more or less vanished from the corner that holds the top industrial and corporate names of India. It is difficult to find a Singhania and almost impossible to find a Dalmia or a Modi. And yet, don’t be fooled by these disappearing acts. The Tatas and the Aditya Birla group are still there right at the top along with the Ambanis (it would be stupid to call the Ambanis a new business family now). And after years of being banished, that classic symbol of license permit raj monopoly, Bajaj Auto came back to the Sensex with a vengeance. It joined Hero Honda, and the Munjals are a business family that is older than the Ambanis. Even the Jindals find pride of place in the Sensex, and so do the Mahindras. Who says that the typical Indian business family is being elbowed out of the top echelons of India Inc? The thing is, the more things change, the more they remain the same!
The sensex of 1991 has lost 70% of its constituents. however, they are not necessarily the usual suspects that form part of what we can call popular folklore!
The more things change, the more they appear to remain the same. And the more you believe propaganda being peddled as statistics, the more your chances of being mesmerized by contemporary mythology. Things are not very different when you actually sit down and analyze the kind of companies that have been entering and exiting the 30 scrip Sensex since 1991, when economic reforms were launched and the animals of entrepreneurship were unleashed.
Beyond the hype and hysteria that usually mark any coverage and analysis of India Inc. and the stock markets, let us puncture a few abiding myths about corporate India as reflected in the composition of the Sensex.
Myth number one is that old hoary chestnut about the decline and fall of Indian business families. Apparently, the unleashing of entrepreneurial energies since 1991 has triggered the emergence of new tycoons and companies and dynasties that have replaced the old business families who were so steeped in the license permit culture prevailing prior to 1991 that they had simply lost the art of competing in the marketplace. At a first glance, this interpretation does appear to be correct. Except for the Aditya Birla group, the Birlas have surely witnessed a terminal decline. Forget the Sensex, it is difficult to find them even in the list of top 100 listed companies in BSE. Once upon a time, Bombay Dyeing was a blue chip in the Sensex and Nusli Wadia a powerful name in India Inc. Alas, those glory days are gone. The Goenkas, too, have more or less vanished from the corner that holds the top industrial and corporate names of India. It is difficult to find a Singhania and almost impossible to find a Dalmia or a Modi. And yet, don’t be fooled by these disappearing acts. The Tatas and the Aditya Birla group are still there right at the top along with the Ambanis (it would be stupid to call the Ambanis a new business family now). And after years of being banished, that classic symbol of license permit raj monopoly, Bajaj Auto came back to the Sensex with a vengeance. It joined Hero Honda, and the Munjals are a business family that is older than the Ambanis. Even the Jindals find pride of place in the Sensex, and so do the Mahindras. Who says that the typical Indian business family is being elbowed out of the top echelons of India Inc? The thing is, the more things change, the more they remain the same!
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
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IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
