As a part of Businessworld's value add exercise undertaken by Tony Joseph who has been brought back as consulting editor in June this year after he left the publication last year following his three years stint, the magazine is coming out with an issue, 'Businessworld Real 500 Rankings'. It will be a double issue of 134 pages priced at the same amount of Rs. 5.
'The Businessworld Real 500' list will appear in the Businessworld issue dated October 7, 02, hitting the stands on September 30. The issue would have the ranking of the Top 500 companies in the country based on the average of their assets and sales combined.
Says Prosenjit Datta, Executive Editor, Businessworld, "We planned this issue couple of months back as we felt that there were clause in the methodology used by the various organizations, hence we wanted to improve. And to fill these gaps we approached CMIE (Centre for Monitoring Indian Economy), the basic data was obtained by CMIE." He further adds,"The market capitalisation is a poor constraint for compiling a list of big companies as it ignores all companies that are not listed in the stock market. For instance it would ignore a Tata Sons (no 48 in the BW Real 500) Or a Hyundai Motors (no 77) simply because they are not listed companies."
The issue not only focuses on the top 500 companies in the country but also analyzes them from various other parameters. "For gauging the true size of a company, it is far more accurate than the Top 500 lists compiled by other organizations," asserts Datta.
Datta explains that the ranking based only on sales would end up leaving out all the big telecom companies like Bharati Telecom that have sunk huge sums of money into building assets, but have comparatively low sales because they have started operations only recently. On the other hand, a listing by assets would leave out software giants like Infosys because they have comparatively smaller physical assets.
The issue also proclaims to have come up with some surprising findings like, more than a quarter of the companies in the top 500 are unlisted - 142 in all and public sector companies account for 51 % of the sales and 49% of the assets of the top 500.
In the Businessworld Real 500 rankings, Indian Oil Corporation (lOC) has claimed the top spot while, the State Bank of India has been rated the number 1 among the Top 50 financial companies in the country.