IIPM PUBLICATION
For
years, you and I have been fed the spiel that private sector companies are inherently more profitable than public sector companies. Then how is this for a reality check? Which is the most profitable bank in the country? Despite the dashing damsels that lead the charge of the ICICI bank, it is State Bank of India that tops the league in the banking sector. As former Chairman of State bank of India says, “There is oft en a tendency in India to under estimate or look down upon public sector companies”. All right, so which is the most profitable steel company in India? Despite the derring do of globally voracious honchos at Tata Steel, it is Steel Authority of India Ltd (SAIL) that tops the chart in this sector. Then again, which is the most profitable company in the capital goods sector? Despite ferocious and oft en below the belt competition from global giants like Siemens, it is BHEL that leads the league, coming in at a fabulous number 15. There are two major sectors in which you could say that private capital has triumphed over the public sector. Mukesh Ambani’s Reliance Industries has edged past Indian Oil as the most profitable company in India. Similarly, the entrepreneurial skills of Kumar Mangalam Birla have scored a hit with his group company Hindalco nudging ahead of public Sector NALCO in the aluminium sector.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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