India 11th most favoured for setting up MNC headquarters: McKinsey
India hosts about 158 large global companies having a revenue of $1
billion or more, making the country the 11th most favoured destination
for setting up a multinational corporation headquarters, says a report.
According to an analysis by McKinsey Global Institute, as many as 158
global large companies have their headquarters in India with a combined
revenue of $898 billion.
The US topped the chart with 2,123 large firms having their headquarters
in the country with a combined revenue of $15,221 billion, followed by
Japan (1,028 firms, $7,347 billion), China (577, $5,449 billion),
Germany (462, $3,788 billion) and United Kingdom (358, $2,818 billion),
constituting the top five.
The top 10 most favoured destinations for setting up headquarters of a
global MNC include: France which hosts 236 firms’ head office, Australia
(203), Canada (194), Italy (179) and Russia (165).
India was ranked 11th in the list followed by South Africa, Switzerland, Taiwan and Brazil.
At present, there are some 8,000 distinct large companies worldwide with
revenue of $1 billion or more, and three out of four are based in
developed regions, McKinsey said.
This situation is likely to undergo a sea-change as by the year 2025, an
additional 7,000 companies would grow to this size (revenue of over $1
billion) and seven out of 10 of these new entrants are likely to be
based in emerging regions, the McKinsey report added.
Currently, the US, Canada, and Western Europe account for 11 per cent of
the world’s population but are home to over 50 per cent of large
company headquarters.
In comparison, South Asia is home to 23 per cent of the world’s
population but only 2 per cent of the world’s large companies’
headquarters.
As per the report, by 2025, nearly half of the Fortune global 500
companies are likely to be based in developing countries including
India.
“As Japanese and South Korean companies became formidable global
competitors in the past half century, new players from emerging markets
such as Chinese telecom networking giant Huawei, Brazilian aircraft
manufacturer Embraer and India’s industrial conglomerate Aditya Birla
Group are asserting their presence,” it said adding “many more are soon
to follow“.
According to the report, companies from emerging regions are growing
faster than their counterparts from the developed world not only on
their home turf but also in overseas markets. It cited the example of
the aggressive expansion of India’s Tata Motors into Europe in the past
decade.
Source : The Hindu Business Line
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