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New Delhi, July 2013: Fortune India?s 2013 list of Most Admired Companies is a toast to all of India Inc., which is heroically striving against all odds.
This year, Tata Consultancy Services (TCS) has topped the list, becoming India?s most admired company (ranked No. 5 last year).
The previous year?s winner, Tata Steel, slips to No. 7. Hindustan Unilever retains its No. 2 position followed by ITC (previously at No. 7). Infosys shares the No. 3 position with ITC. This year, ICICI Bank makes its debut in the top 10.
An interesting fact is that this year, two public sector companies?State Bank of India and ONGC?are in the top 10. Last year, there were no PSUs in the top 10 list.
The Fortune India ranking of India?s Most Admired Companies was done in partnership with Hay Group India. Companies are rated on the parameters of corporate governance, endurance, performance, quality, financial soundness, innovativeness, leadership, talent management, social responsibility, and global business. Apart from the overall rankings, there are sector specific rankings, covering 16 key industries.
This year, companies were also ranked based on unprompted endorsements by peers. This ranking threw up some surprises and, in many cases, differed from the overall rankings. According to its peers, Hindustan Lever is ranked No. 1, followed by TCS. Infosys stayed on at No. 3 in peer endorsements as well.
The sector rankings, where respondents from the same industry rank companies, throw up some interesting observations. Companies that have been ranked on top score the highest on two parameters?product quality and financial soundness. Of the 16 companies that have topped their respective categories, 12 have topped the ?product/service quality? attribute and ?financial soundness? attribute. Then comes ?innovation? with 11 of the 16 topping, followed by endurance, leadership, talent management, corporate social responsibility, and global business footprint with 10. Then comes corporate governance at nine, and performance at eight.
D.N. Mukerjea, Editor, Fortune India, said ?In my interactions with many new entrepreneurs and CEOs, I have come to the conclusion that nobody today starts or runs a business just to get rich. They do it because they feel they can make a difference, and the ultimate prize they seek is the admiration of their peers. Our ranking of India?s Most Admired Companies, done in partnership with the Hay Group, rests on that central idea. Admiration is a composite of traits and, therefore, hard to earn.?
Sending her congratulations to the winners, Anita Mazumdar, National Advertising Director, Fortune India, said: ?In bad times, when everyone tries so hard to overcome the odds, every company deserves to be a winner. The ranking features corporations who are true value creators and continue to rule because of good practices.?
Congratulating the winners, Gaurav Lahiri, Managing Director, Hay Group India, said: ?Hay Group India is excited to roll out the second edition of India?s Most Admired Companies in partnership with Fortune India. This year, 2 criteria in particular, Leadership and Creating Shareholder Value, separate the ?Top 10? from the remaining winners, with Talent Management coming in a close third. Therefore, in today?s uncertain business environment, it is more important than ever for organizations to continue to create shareholder value through good leadership and talent management practices.?
Methodology:
The India?s Most Admired Companies was conducted in two phases. In Phase-I 493 companies were shortlisted from 16 industries based on multiple factors such as revenue, market share etc. Each company was then ranked within its industry by a peer group comprising of executives from that industry. A total of 552 respondents participated in Phase-I.
A shortlist of 75 companies- industry leaders derived in Phase-I- was then created based on the industry rankings. In Phase-II, the 75 companies shortlisted were ranked, across industries, by each other, overall as well as across the selection criteria. A total of 108 respondents participated in Phase-II. The overall ranking of India?s Most Admired Companies was thus obtained.
Hay Group is a global management consulting firm that works with leaders to transform strategy into reality.Hay Group partners with Fortune globally, using a similar methodology, to develop the World?s Most Admired Companies. This is the second edition of this study- India?s Most Admired Companies.
The top 20 companies in Fortune India?s Most Admired Companies for 2013 are:
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