Research Spotlight

India’s Top Transnational Firms Unveiled

Professor Raveendra Chittoor's study ranks the most internationalised firms in India Inc.

Professor Raveendra Chittoor and Deepak Jena in collaboration with the Brazilian business school Fundação Dom Cabral (FDC) published their ranking of India’s transnational companies recently in ISB’s flagship research quarterly, ISBInsight.  This study, the second in a series that began in 2012, is based on the internationally accepted measure, Transnationality Index (TNI), and is the first of its kind to rank India’s most international companies.

The researchers ring in optimism by their finding that despite a drop in overseas investments by Indian companies in FY 2012, India’s most internationalised companies continued to expand, with their foreign sales, assets and employment growing significantly faster than other companies. Among companies with assets more than US$500 million, the state-owned ONGC Videsh emerged as India’s most internationalised large company while Core Education &Technologies was the contender for the top spot among companies with assets less than US $ 500 million.

Other findings of the study:

  • Business groups such as the Tata form the majority of the companies in the list
  • Many companies in the group have expanded through acquisitions of overseas entities of comparable size. This tendency to expand through acquisitions is common to companies in both categories. 
  • The top 15 TNCs with assets of US$500 million or more earned 75% of their total revenues from international operations, held 57% of their total assets overseas, and employed 20% of their total workforce abroad.
  • The companies have a balanced presence both in developed and developing economies TNCs
  • While the proportion of international assets and revenues of top Indian TNCs is somewhat comparable to that of top global TNCs, Indian companies lag behind significantly when it comes to employing a global workforce
For more information on the study, please refer to the latest issue of ISBInsight