Tag Archive for 'India'

BRICs at 10

Published on November 30, 2011 in Emerging Markets. 0 Comments Tags: , , , , , .

So, was he right? Ten years ago Jim O’Neill of Goldman Sachs looked at four growth economies – Brazil, China, India and Russia – put their first letters into an acronym, and the Brics (as a concept) were born.

So how have they fared? What if you invested in the Brics ten years ago – where would you be now? Chart of the week finds out. There are a myriad of ways of looking at this, but beyondbrics is going to be hard-headed and stick to equities and GDP.

A quick look at the MSCI indices for the four Brics since 2001 shows that they have comfortably outperformed the S&P 500. If you invested $100 at the time of O’Neill’s report in November 2001 in each of the four Brics, you would now have $674 from Brazil, $451 from China, $459 from India and $414 from Russia. Your 100 S&P bucks? Worth $112 [Read more].

India: outpacing China by 2013?

Published on October 29, 2011 in Emerging Markets. 0 Comments Tags: , .

After months of bad news flow – high inflation! interest rate hikes! corruption! high petrol prices! weak currency! – India is finally getting some good news, even if it’s a good two years off.

In 2013, according to an Ernst & Young report released Monday, India will grow at 9.5 per cent, bouncing back from this year’s 7.2 per cent, and outpacing China’s projected 9.2 per cent.

But the report’s projections might be a tad optimistic, given that they are premised on: 1) whether India’s inflation – which hit 10.6 per cent for food articles earlier this month – will fall by the end of this year, and 2) that the US and EU economies do not fall into recession [Source].

Why diversification is back in fashion

Published on March 4, 2011 in Emerging Markets. 0 Comments Tags: , , , .

Over the past decade the world’s corporate pecking order has been disturbed by the arrival of a new breed of multinationals from the emerging world. These companies have not only taken on Western incumbents, snapped up Western companies and launched exciting new products. They have challenged some of the West’s most cherished notions of how companies ought to organise themselves: focusing on their core activities and buying ever more services from the market [Source].

Many emerging-market multinationals are focused companies that are admired in the West: the likes of India’s Infosys Technologies (for IT services), Brazil’s Embraer (aircraft) and South Africa’s MTN (mobile phones). But others are highly diversified. In some ways these groups look like throwbacks to old-fashioned Western conglomerates such as ITT. But in other ways they are sui generis: much more diversified and readier to blur the line between public and private [Source].

A growing number of them are proving that they can compete in global markets as well as in sometimes rigged local ones. The Boston Consulting Group lists the rise of diversified global conglomerates as one of five trends that will shape the future of business.

In the long run most of these emerging conglomerates are likely to follow the same path as Western companies: focusing on their core activities and buying ever more services from the market. But Western companies also need to recognise that—for the time being at least—these diversified giants have plenty to offer [Source].

The Emerging Online Giants

Published on July 10, 2010 in Emerging Markets. 0 Comments Tags: , , , , .

At first glance the three firms could not look more different.

DST was created in 2005 when two Russian internet investors, Yuri Milner and Gregory Finger, pooled their interests in mail.ru, a Russian web portal. Today the firm controls many of the country’s leading websites and boasts an interesting mix of owners, including Goldman Sachs and Alisher Usmanov, a Russian billionaire, who holds 27%.

Based in Cape Town, Naspers is nearly 100 years old and is the publisher of the Daily Sun, South Africa’s biggest newspaper. But it is one of the most ambitious old-media companies anywhere in its move online. It still makes most of its sales—28 billion rand ($3.6 billion) in the year to March—from print and pay-television, but it uses the cash to buy online firms.

Tencent hails from Shenzhen, near Hong Kong. Founded in 1998, it had revenues of $1.8 billion in 2009 [Full article here].

Asian Economies are Growing Strong

Published on September 22, 2009 in Emerging Markets. 0 Comments Tags: , , .

Growing Asian EconomiesThe economies of China and India are set to grow by more than previously thought in 2009, the Asian Development Bank (ADB) has said [Source].

Furthermore, when the chairman of the Federal Reserve, Ben Bernanke, told a Washington think-tank this month that “the recession is very likely over at this point”, he was careful to add that the American economy would remain weak for some time yet. Analysis released on Tuesday September 22nd by IMF economists who have been studying the aftermath of 88 banking crises over the past four decades, supports Mr Bernanke’s cautious talk. While most discussion of the worst recession since the Depression looks at the immediate pain from lost jobs and shuttered shops, the IMF analysis suggests that the effects of the downturn will be felt long after it is technically over [Source].

First summit for Emerging Giants

Published on June 16, 2009 in Emerging Markets. 0 Comments Tags: , , , .

bric

Leaders of Brazil, Russia, India and China, known collectively as the BRIC countries, will gather for their first official summit in Yekaterinburg, Russia, on Tuesday June 16th.

China and India have continued to grow reasonably quickly despite the global downturn, and although Brazil is in recession many expect it to recover soon. Of the four economies Russia, which is heavily dependent on oil exports, has been the worst affected.

The leaders may discuss long-term plans to find an alternative to the dollar as a global currency. Another possible topic for consideration is trade in commodities: China and India are heavy importers of many commodities such as oil; Russia and Brazil are big exporters of raw materials. [Source FT] [Source BBC]

A brigther future for the car industry?

Published on June 5, 2009 in Emerging Markets. 0 Comments Tags: , , .

Car ShoppingEven as they struggle through the economic meltdown, car makers can look ahead to a high-growth, flexible, global future according to “strategy+business”.

Research conducted by Booz & Company shows that the global customer base for cars over the next 10 years falls into three broad categories, based primarily on which countries customers live in.

  1. The rapidly emerging economies (REEs) consist of the so-called BRIC nations (Brazil, Russia, India, and China) and a group of other relatively wealthy developing nations, such as Malaysia, Argentina, Mexico, Turkey, Thailand, Iran, and Indonesia. Millions of families in these countries are making or contemplating the purchase of their first car.
  2. The lower-growth economies (compared to the REEs) consist of about 100 nations with relatively impoverished populations and poor economic prospects. However, their political leaders are interested in building up the middle class and see personal mobility as a major stepping stone. These countries may become markets for motorised transportation after 2020.
  3. The mature economies include the established industrialized nations in North America and Europe, and Japan. Population growth and vehicle replacement, rather than economic growth, will determine the market for cars there.

Together, these three groups add up to an enormous amount of market potential. Estimates suggest that more than 370 million additional vehicles could be sold by 2013 and more than 715 million by 2018. Please click here to download the complete article.

New Hope?

Published on January 19, 2009 in International Business. 0 Comments Tags: , , , , , , .

obamaShortly after midday on January 20th, Barack Obama will sit for the first time at the desk where the buck stops. The American presidency is always the world’s hardest and most consequential job, but it seems particularly so this month. A global recession of a severity not seen for perhaps 80 years; a new war in the Middle East and old ones in Africa; missions very far from accomplished in Iraq and Afghanistan; a prickly Russia and a rising China.

These international challenges must jostle for the president’s attention alongside noisy domestic concerns like rocketing unemployment, the desperate need for a better health-care system, exploding deficits and failing cities. The burdens, surely, are too many for one man to bear.

The US$2500,- People’s Car

Published on January 10, 2008 in Emerging Markets and Global Strategy. 2 Comments Tags: , , .

Tata Nano - World’s Cheapest Car - People’s CarThe moment has finally come. Today Tata has unveiled the world’s cheapest motor car. Tata’s stripped-down motor car will cost you around US$2,500 (100,000 Rupees), and it’s aimed at the company’s home market of India. But its popularity need not stop there.

This is not only a breakthrough from a price point perspective. It basically puts a car into the reach of people that previously only could dream of owning a scooter or moped. Nevertheless there are still billions of people who cannot afford an investment of $2500,-. In essence this is a car aimed at the world’s middle class. There are hundreds of millions of people who will be able to afford the People’s Car – in China, in Vietnam, in Pakistan, in coastal Africa…. They’ll buy, as long as the quality is reasonable and the car doesn’t become a laughingstock, like the old Yugo.

Furthermore, in affect, the People’s car will also change the competitive dynamics of the entire auto landscape. Everyone except the luxury car makers might want to think about entering this uncontested market segment. If Tata can sell a good product for US$2,500, then it will be able to keep moving its consumers up the economic motor car ladder, to a US$5,000 car, and then a US$10,000 car. When you consider a growing market of hundreds of millions worldwide, a little brand loyalty could go a long way.

Updated @ Jan 11th.: Interested in the applied cost-cutting tricks please follow this link.

Source BBC News & IHT.

New Tech Giants?

Published on September 17, 2007 in Emerging Markets. 0 Comments Tags: , .

New Tech Giants
Indian and Chinese Tech companies are in the running to see the limelight at the centre stage of the worlds most powerful tech giants! BusinessWeek has listed the up and coming ten new Tech Giants!