Mumbai, Jan 18 (PTI) Boston Consulting Group (BCG) hasadded telecom major Bharti Airtel and drug-maker Lupin intoits list 100 companies from the emerging markets which canchallenge existing Fortune 500 firms over the next five years.
In a report titled ''BCG Global Challengers 2011,released globally today, it says, these 100 firms, mostly fromChina, India, Brazil, Mexico and Russia, and for the firsttime four companies from South Africa and Egypt, are "the"hidden engines" of the global economy and can qualify forinclusion in the Fortune Global 500 in five years as they growfaster and more profitably than MNCs from developed world."
This year, overall, there are 23 new challengers,including Bharti and Lupin, in the list from 16 countries. TheBCG Global Challenger series was launched in 2006 to identifycompanies shaking up the global economy.
The 100 challenger companies grew annually by 18 percent during 2000-09. If they continue on their current growthpath, they could collectively generate USD 8 trillion inrevenues by 2020, an amount roughly equivalent to what the S&P500 companies generate today. These challengers'' revenue stoodat USD 1.3 trillion in 2009, the report said.
"As competition intensifies, the boundaries betweenthese two distinct sets of companies will continue to blur.
Many challengers are creating disruptive business models andcoming up with new and better ways to get the job done in manyindustries. Bharti Airtel exemplifies this approach with itsinnovations in outsourcing and distribution," said BCG IndiaPartner & Director and a co-author of the report Sharad Verma.
Of the 20 Indian firms in the list, six are from theTata Group - TCS, Tata Steel,Tata Motors, Tata GlobalBeverages, Tata Communications and Tata Chemicals. Others areRIL, Infosys, L&T, M&M, Bajaj Auto, Wipro, Hindalco, CromptonGreaves, Dr Reddy''s, Bharat Forge, Suzlon and Vedanta.