Today's Share Market Price Values

Today's Share Market Price Values

World in its eyes...
There is a storm brewing for India Inc. The storm is not indicative of the earnings momentum that the corporates have maintained in the September quarter and the need to sustain the same over the next quarter, and the next one. Rather, the storm is indicative of a major revolution brewing within Indian boardrooms, for devising strategies to go global, to challenge the incumbents in their own territories. Be it the Tata Group's thirst to acquire scale, or the Aditya Birla Group's strategy to garner a bigger raw material resource base, India inc. is increasingly taking benefit from the 'flattening' of this world. But do these opportunities come alone minus the challenges. We believe, not really!

The opportunities it gets...
Global business strategy definitely brings along a whole set of opportunities in forms of bigger markets (more customers to sell to), wider geographical coverage (that de-risks businesses from a single region), global resource base, access to best business practices, higher revenues and, of course, better recognition (that in turn leads to more business). Most of the Indian companies that are going global have one of these reasons for doing so. Take for example Tata Steel. Its recent 'successful' bid for Corus, will not only catapult it to the sixth position in the world steel manufacturers' list (from the 56th position). Also, the Indian steel major will now find place in the elite Fortune 500 club, straightaway from nowhere to almost being at the middle of the list. Do these rankings mean mere rankings? Not really, they mean a whole lot more - in terms of a much bigger global recognition and greater access to global monetary and commodity resources. Plus, the bigger size will give Tata Steel increased pricing power in the commoditised steel market. Increased global presence and larger clientele are added benefits!

Today's Share Market Price Values