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Hay Group-Fortune release annual study of India’s Most Admired Companies, TCS tops the charts Peer admiration involves more than just profits and performance for India Inc.
TCS ranked first, followed by Hindustan Unilever, ITC, and Infosys Findings represent a report card on corporate reputations Sector-based rankings featured for 16 key industries For the first time, list includes an overall ranking based on peer endorsements
New Delhi / Mumbai, July 15, 2013: Global management consultancy, Hay Group, in association with Fortune India, has released the findings of the second edition of India’s Most Admired Companies (IMAC) research. Business solutions major Tata Consultancy Services (TCS) has topped the ranking for 2013, followed by Hindustan Unilever (HUL), ITC, and Infosys rounding up the top three. The study is based on a unique peer ranking methodology, which covered 493 companies across the economy’s 16 key sectors. A total of 552 respondents participated to rank their peers across a scale of ten parameters - corporate governance, endurance, performance, quality, financial soundness, innovativeness, leadership, talent management, social responsibility, and global business. Hay Group partners with Fortune globally, using a similar methodology, to develop the World’s Most Admired Companies. TCS tops the list this year, replacing last year’s winner, group company Tata Steel, by scoring highest on parameters such as corporate governance, financial soundness, and talent management. Second-ranked FMCG HUL has been rated highest on its endurance and product quality, while ITC and Infosys share the joint third spot. SBI, L&T, Tata Steel, ONGC, Maruti Suzuki, and ICICI Bank also feature in the top ten (table 1). Gaurav Lahiri, Managing Director, Hay Group India, comments, “Hay Group India is excited to roll out the second edition of India’s Most Admired Companies in partnership with Fortune India. This year, two criteria in particular, Leadership, and Creating Shareholder Value, separated the Top 10 from the rest of the winners, with Talent Management coming in a close third.”
Table 1: Top ten India’s Most Admired Companies 1. TCS 2. Hindustan Unilever 3. ITC 3. Infosys 5. SBI 6. L&T 7. Tata Steel 8. ONGC 9. Maruti Suzuki 10. ICICI Bank
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Interestingly, last year’s top ten did not include any PSEs - accounted for by SBI and ONGC this year. ICICI makes its debut in the top ten this year, while Colgate Palmolive, Tata Motors, and Dell India all have slipped down the order compared to their ranking last year. The study has also compiled sectoral rankings for 16 key industries – based on their performance on the ten evaluation criteria for the study. The sector toppers are listed in table 2.
Table 2: Industry rankings – 16 sectors Industry Auto components Automotive Banking Capital goods Cement Consumer durables Drugs, pharma and, healthcare Engineering and construction FMCG Iron and steel, metals, and mining IT, ITeS, and BPO NBFC Oil and gas Power Telecommunications Textiles and garments
Winner MRF Mercedes-Benz India State Bank of India Siemens ACC Nokia India Cipla L&T ITC Tata Steel Microsoft India IDFC Indian Oil NTPC Bharti Airtel Raymond
A new addition to the 2013 study is the Endorsement list – where companies were ranked based on unprompted endorsements by peers. This ranking threw up some surprises and, in many cases, differed from the overall rankings – for instance, HUL tops this list, followed by TCS and Infosys. Bharti Airtel, ranked 19th in the overall rankings, featured at 11th place in the Endorsements section, while Cisco Systems India appeared at 26, a big leap from its overall ranking of 40. Adds Gaurav Lahiri, “As demonstrated by the IMACs, in today’s uncertain business environment, it is more important than ever for organizations to create shareholder value through good leadership and talent management practices.”
Ends For further information
Nidhi Mehra Kapoor Email: nidhi.mehra@haygroup.com Phone: +91 (124) 417 7400 Notes to Editors Please note: this research should be credited to ‘global management consultancy, Hay Group’, and not ‘Hay’ or ‘Hays’, which are separate and unrelated organizations. About the study The study for India’s Most Admired Companies was conducted in two phases. In Phase I, 493 companies were shortlisted from 16 industries based on multiple factors such as revenue, market share, etc. Each
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company was then ranked within its industry by a peer group comprising of executives from that industry. A total of 552 respondents participated in Phase I. A shortlist of 75 companies, that is, industry leaders derived in Phase I, was then created based on the industry rankings. In Phase II, the 75 companies shortlisted were ranked, across industries, by each other, overall as well as across the selection criteria. A total of 108 respondents participated in Phase II. The overall ranking of India’s Most Admired Companies was thus obtained. About Hay Group Hay Group is a global consulting firm that works with leaders to turn strategies into reality. We develop talent, organize people to be more effective, and motivate them to perform at their best. With 85 offices in 49 countries, we work with over 7,000 clients across the world. Our clients are from the public and private sector, across every major industry, and represent diverse business challenges. Our focus is on making change happen and helping organizations realize their potential. For more information, please visit: www.haygroup.com/in