RIL 2nd among world's largest value creators: BCG

Boston: Mukesh Ambani-led Reliance Industries (RIL) has been ranked second in the list of world's 10 biggest 'sustainable value creators'-companies that have been successful in creating the most shareholder value over the last decade-prepared by Boston Consulting Group (BCG), reports PTI.

The list compiled by the global management consulting firm names Brazil-based mining and materials giant Vale as the top value creator worldwide for the 2000-2009 period.

"One side effect of the Great Recession has been to accelerate the ascent of companies from rapidly developing economies to the top ranks of the world's creators of shareholder value," BCG said in the report titled 'Threading the Needle: Value Creation in a Low-Growth Economy'.

The ranking identifies large global companies with a market capitalisation of at least $35 billion that have been the "most successful at sustaining superior value creation over 10 years."

BCG says a decade is the minimum time frame necessary to evaluate the staying power of a company's value creation performance.

The report has also listed companies industry-wise for creating the most value for their shareholders from 2005 to 2009. Starting from a database of more than 4,000 companies worldwide, the report presents detailed analyses of the Total Shareholder Return (TSR) at 712 companies across 14 major industries for the five-year period.

Of the top 142 companies included in this year's global and industry rankings, 81 are located in developing economies.

In a further indication of how emerging economies are pulling ahead of developed countries, the top 10 value creators in the 712-company sample are all from Asia-five companies listed on stock exchanges in China, two in Hong Kong, and one each in India, Indonesia, and South Korea.

Similarly, seven of the top ten large-cap value creators (those with market valuations of more than $35 billion) are listed on stock exchanges in rapidly developing economies of Brazil, Hong Kong, India, Mexico and South Korea.

"Most developing economies are rebounding relatively quickly to their previous growth levels. In contrast, developed economies are entering an extended period of below-average growth with profound implications for how companies create value and which companies come out on top," report co-author Daniel Stelter said.

Indian mining and materials giant Jindal Steel and Power (JSP) occupies the number two spot in the BCG list of the 'Global Top 10' value creator companies for the 2005-2009 period.

RIL again comes second in the 'Large Cap firms' for 2005-2009 of 112 global companies with a market valuation of more than $35 billion.

In industry-specific rankings, auto major Mahindra and Mahindra (M&M) occupies the fourth spot among 38 automotive companies that created most value for shareholders in 2005-2009 period followed by Hero Honda Motors at sixth and Maruti Suzuki India at the seventh spot.

In the chemicals industry, RIL has been named the second biggest value creator of 53 global firms during the period behind South Korea's OCI.

In the consumer goods category, ITC ranks sixth among the top 10 companies, while Larsen and Toubro (L&T) (sixth) and Bharat Heavy Electricals (BHEL) (seventh) are among the 77 companies that have created the most shareholder value in the machinery and construction segment.

Telecom company Bharti Airtel and Infosys Technologies occupy the seventh and ninth spot respectively in the technology and telecommunications category for the 2005-2009 period.


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Food inflation climbs to 11.47% for the week ended 28th Aug

New Delhi: Food inflation rose to 11.47% for the week ended 28th August, on the back of increase in prices of cereals, fruits and milk, reports PTI.

This is the second consecutive week when food inflation has shown an upward trend, after a brief period of moderation in July and first half of August.

Food inflation was 10.86% during the previous week ending 21st August.

On a yearly basis, cereals prices rose by 5.07% driven mainly by higher prices of pulses, rice and wheat compared to the same period last year.

While pulses became dearer by 13.44%, prices of rice and wheat rose by 4.74% and 7.04%, respectively, during the week under review on yearly basis.

Among other food items, milk prices soared by 17.60% during the week compared to the same period last year, while that of fruits went up by 10.34%.

Prices of vegetables, however, maintained a downslide in line with trends during the past few months.

While vegetables overall saw a decline of 9.38% on an annual basis, potato became cheaper by over 5%. Onion prices also slid by 10.32%.

Food inflation has been in double-digits for most of the year, except a fortnight in mid-July when it had plummeted to single-digit level.

Meanwhile, fuel inflation for the week under review remained unchanged at 12.71%.

The overall inflation, which also includes rate of change in prices of manufactured goods, fell to single digit at 9.97% in July after a gap of five months. The figures for August will be released next week.


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