From the Editor
For most companies, the current global economic meltdown is akin to living with a sudden grid collapse for weeks and months with no end in sight. But how many of them are nimble and capable enough to come out of it bigger and better? Business Today did a quick check.
In August 2003, a grid collapse caused a massive power outage in several parts of the US, including New York City. For two days, all airlines cancelled hundreds of flights from LaGuardia and JFK airports. All except Continental. In fact, Continental ran extra flights from the neighbouring Newark airport, rescuing passengers and making millions of extra dollars for those two days. Its competitors lost money and goodwill, but Continental gained both.
This is just one example of how nimble companies can turn adversity into opportunity. For most companies, the current global economic meltdown is akin to living with a sudden grid collapse for weeks and months with no end in sight. But how many of them are nimble and capable enough to come out of it bigger and better? Business Today did a quick check. The result is our cover story-Winners in the Downturn. These include well-known companies like Hero Honda and Airtel, and a whole host of relatively lesser-known ones like Everest Kanto and Opto Circuits. These companies have improved their performance in the past two quarters, when most of their peers have either floundered or have had a lacklustre showing. Depending on the length and depth of the current downturn, a few of these companies may also join their peers, but the majority won't. Some winning companies have emerged in every past recession, and this one won't be an exception.
Unlike money, entrepreneurship doesn't go in short supply during slowdowns. That's exactly what we found out while compiling our third annual list of India's Hottest Start-ups. People across geographies and age are finding ways to sustain and grow the businesses they launched a year or two ago. We were also pleased to find that most of the start-ups we profiled in 2008 are doing better now-not a bad record considering that the survival ratio of new businesses is less than one in five. The credit goes to the investor community that helps us identify these potential winners.
Some 20 years ago, Nani A. Palkhivala had, in a pre-Budget speech, said: "One of our infantile illusions is that poverty can be eliminated-faster than productivity allows-merely by making allocations for anti-poverty programmes." Find out how this still continues to be the case; and the price of it. Finally, we discovered a perfect storm brewing across India Inc. that has nothing to do with the global economic crisis- and is yet more profound and lasting in its impact on businesses of all kinds. We also share the discovery.
This is just one example of how nimble companies can turn adversity into opportunity. For most companies, the current global economic meltdown is akin to living with a sudden grid collapse for weeks and months with no end in sight. But how many of them are nimble and capable enough to come out of it bigger and better? Business Today did a quick check. The result is our cover story-Winners in the Downturn. These include well-known companies like Hero Honda and Airtel, and a whole host of relatively lesser-known ones like Everest Kanto and Opto Circuits. These companies have improved their performance in the past two quarters, when most of their peers have either floundered or have had a lacklustre showing. Depending on the length and depth of the current downturn, a few of these companies may also join their peers, but the majority won't. Some winning companies have emerged in every past recession, and this one won't be an exception.
Unlike money, entrepreneurship doesn't go in short supply during slowdowns. That's exactly what we found out while compiling our third annual list of India's Hottest Start-ups. People across geographies and age are finding ways to sustain and grow the businesses they launched a year or two ago. We were also pleased to find that most of the start-ups we profiled in 2008 are doing better now-not a bad record considering that the survival ratio of new businesses is less than one in five. The credit goes to the investor community that helps us identify these potential winners.
Some 20 years ago, Nani A. Palkhivala had, in a pre-Budget speech, said: "One of our infantile illusions is that poverty can be eliminated-faster than productivity allows-merely by making allocations for anti-poverty programmes." Find out how this still continues to be the case; and the price of it. Finally, we discovered a perfect storm brewing across India Inc. that has nothing to do with the global economic crisis- and is yet more profound and lasting in its impact on businesses of all kinds. We also share the discovery.
