India’s Billion Dollar Businesses Increase by 16 Percent

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Mar. 24 – The number of domestic billion dollar companies in India increased by 16 percent from 104 to 124 over the last two years, according to an Economic Times Intelligence Group study.

The study cited 20 Indian corporations that achieved billion dollar sales or more, reflecting the countries resilience to the global downturn. It looked at projected net sales for the 12 months ending March 31 using data available for the first nine months of the fiscal year.

While companies such as Apollo Tyres and Motherson Sumi have grown through acquisition, the majority, including names such as Bharat Electronics, Cipla, IVRL, Lanco Infratech, Tata Tea and Tech Mahindra have done so on the back of strong demand for their products. Revenue reports are used by many investors as benchmarks to determine whether a company is worth investing in or not.

The fact that so many local companies have flourished during a period of retraction for many global businesses is also likely to spur on India to play and act as a catalyst for global market growth.

Companies focused on domestic consumption performed well in the report, while those in real estate and financial services showed some slowdown. Unlike China, India’s new billion dollar companies are almost all privately owned, while most Chinese billion dollar entities are owned by the state.