Emerging Markets is the buzzword globally since last several years. Let us take the insights of two acclaimed authors.
Prof. Tarun Khanna currently teaches in Harvard’s executive education programs and is Faculty Chair for HBS activities in India. His new book “Winning in Emerging Markets: A Roadmap for Strategy and Execution” is getting excellent reviews among academic circles.
My feeling is that anything that leverages the idea of economic inclusion that brings people into the mainstream covers the mass market. So, think about what goods and services the masses need. I don’t think it’s exactly equivalent to the bottom of the pyramid because I am talking about 500 million people. It’s too big to be purely at the bottom of the pyramid. There are so many things that the top 30-40 Indian cities need. Whether it is education, healthcare, electric power or clean water – there are huge opportunities. Public policy of course is important, but entrepreneurs must look for opportunities even prior to policies emerging fully; in fact, they must help to shape policy prudently..
Svetlana Borodina is a Director of Governance Services of Standard & Poor’s. Her responsibilities include development of corporate governance practices in emerging markets. She co-authored the book “Investing in BRIC Countries : Evaluating Risk and Governance in Brazil, Russia, India, and China.”
In Indian business groups, the concept of dominant shareholders is more amorphous for two reasons. First, the promoters’ shareholding is spread across several friends and relatives as well as corporate entities… The actual ownership within these companies is far from completely transparent, with widespread pyramiding, crossholding, and the use of nonpublic trusts and private companies for owning shares in group companies. Second, the aggregate holding of all these entities taken together is typically well below a majority stake. In many cases, the promoter may not even be the largest single shareholder. What makes the promoters the dominant shareholders is the fact that a large proportion of the shareholding is with state-owned financial institutions that historically have played a passive role, and so the promoters are effectively dominant shareholders and are able to get legislative approval for their actions.
The book praises the Indian Banking Industry for ability to meet the credit needs of corporations and retail individuals.
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Nice brief and this fill someone in on helped me alot in my college assignement. Thank you for your information.
thanks for mentioning the books
China is over-hyped among emerging markets
India has a long way to go in government policies
The best part about India is transparency, in China if someone shouts corruption they will be imprisoned. The risk in investing India can be foreseen to a good degree unlike other emerging countries.
India fares better than most emerging economies.