Instead of doing my homework,again, I was browsing the net and was reading the IHT(International Herald Tribune). An article here about the Mittal's bid for a hostile takeover of a European rival Arcelor, and how it was creating a major buzz in Europe got me thinking. For more :http://iht.com/articles/2006/02/03/yourmoney/mittal.php
This article was all gung-ho about how India was going to be a major power. So is India going to be a major power? I am not talking about the size of India's market, or the outsourcing boom. I am talking of Indian companies becoming big major global players, acquiring other big companies.
How many Indian companies can do that? Talking abt Infosys/Wipro/TCS is interesting bcos these companies are making it big bcos of the outsourcing boom, and they too have acquired companies in various different countries. And is this the launchpad for these companies to become successful all over the world?or Are these companies too entrenched in their outsourcing model to be able to make it big?
Or is it just a lot of talk? or is it too early, since the Indian economy was liberalized in the early 90's and a company would need to stand on its feet before making such giant leaps. Would the coming years give us more Indian companies that have the spunk to take on the world? Can you think of some companies, that have it in them?
Lots of questions. Any answers or atleast a few hints, anybody?
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3 comments:
I cant believe it, but just yesterday we ha a major debate about Indian economy being liberalized and all that, and now I see a post in the blog on a similar subject..well, I stand by what I was supporting yesterday..I do agree that IT companies are making it big but, it happened everywhere and not just in india, even huge companies like infosys and TCS took over small corporations. It will still take many more years for IT to be big powers i the world. The real power is in the non-IT sector companies like Mittal, Reliance, Tata etc...these people have the power to take on the world, though Reliance decided to screw itself in some sort..
hubba..hubba . profound questions.
It is a very funny thing that if a foreign company acquires an indian company the news rendering is completely different!!! Anyways this does not actually answer the questions posed by Jyo.
1. Mittal Steel is not an indian company by any criterion except Mittal is born in india.
2. IT boom was not an actual boom but a bubble.
3. I agree with shaggy to a certain extent. People have to start looking at non IT industries also. Every sector is dependent on the survival of all other sectors.Its a closed chain. If IT bubble bursts, it affects other sectors in many many ways.
4. The growth pattern of manufacturing industries is a bit slow compared to services. It also needs more prudent investments compared to knowledge/services oriented industry. So they need to establish in smaller markets before making a big decision. Eg: Mittal steel establised its bases in kazakstan, mexico and trinidad before making a move in europe.
5. I believe reliance and tatas are also having some establishments in some smaller markets
5. The next major industries will be from India, China, Brazil(surprise!!!).
6. I think TATA is in a better position though i consider it as a slightly lazy group. Reliance has the potential too but it has to clean up its financial acts before it can think big. Ambanis had the potential but all their potential will be wated in fighting court battles.
On final thoughts, look out for Srinidhi.Inc in the future too :D
Srinidhi.Inc huh ?? ;) .. good one Nidhi ..
my thoughts on this are that our economy itself is in a very touchy state. If ur going to depend on IT for ur revenue , ur rining into a big risk - the day the chinese is able to speak standable english ( which is goingot happen soon ) .. the work woudl soon go there - this is as Jyo pointed out regarding outsourcing . So , if u want to depend on IT , u can but u got to create value for urself besides projecting urself is a cheaper alternative .
The hue & cry abt the non IT sector is because those industries don't break easily ( the bubble does not burst very easily ) .. but we would be equally vulnarable with that too , i mean the non IT sector can very well face a big slump .. & trust me it would not be easy to get out of it ( beacuse that requires huge investmentin the begining , so a lot of money has gone down the drain if the slump comes up ) ..
My poin tis that if India wants to position itself as a super power ( economically ) .. get ur core competence straight .. if the core competence is IT , then add value to it .. dont just be smug abt the business u r getting right now .
Shankar
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