Boston: Mukesh Ambani-led Reliance Industries 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.
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 precrisis 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.