Among the most interesting challengers are the 26 newcomers to the 2013 list. They are grouped by the features that help describe their entry to the list of global challengers.
Caring for and Feeding a Growing Middle Class
Aspen Pharmacare (South Africa) is the largest generic-drug manufacturer in the Southern Hemisphere and has 18 manufacturing facilities located throughout the world. Its products reach more than 150 countries. In 2011, almost half of its $1.8 billion revenues were generated outside of South Africa. Aspen acquired 25 brands in Australia from GlaxoSmithKline for $268 million in 2012. Aspen has been one of the best-performing South African stocks with a three-year average annual TSR above 100 percent.
Golden Agri-Resources (Indonesia) is one of the world’s largest producers of palm oil. In 2011, 89 percent of its $6.0 billion revenues originated overseas. Over the past three years, Golden Agri-Resources has delivered average annual TSR of 14 percent, outperforming other market players.
Godrej Consumer Products (India) is a consumer goods company with leading home-care, personal-wash, and hair-care products. Its 2011 revenues reached $1 billion. Godrej has focused its acquisitions on emerging markets. Recent acquisitions include Megasari Makmur Group in Indonesia, Darling Group in Senegal, and Issue Group and Argencos in Argentina.
Grupo Empresarial Antioqueño (GEA) (Colombia) is a conglomerate with total 2011 revenues of $10.2 billion. Grupo Nutresa, Inversiones Argos, and Grupo de Inversiones Suramericana constitute the core of the conglomerate, in which members have ownership stakes in one another but do not have a central headquarters. GEA is expanding beyond its Latin America base, and its products are sold in more than 75 countries.
Mindray (China) is China’s largest medical-equipment manufacturer. It had 2011 revenues of $900 million, more than half of which were generated overseas. Mindray’s business model is built around low cost and innovation, allowing it to win market share from larger competitors.
Sun Pharmaceutical Industries (India) is a global pharmaceutical company with a strong presence in the U.S. generic markets. Its 2011 revenues reached $1.7 billion, 62 percent of which were generated overseas. It has achieved an average annual TSR over 100 percent for the past three years and has the largest market capitalization in the Indian pharmaceutical sector.
Making Financial, Commercial, and Digital Connections
Alibaba Group (China) is the largest e-commerce company in China, with 2011 revenues of $2.8 billion. Alibaba.com is the world’s largest online business-to-business trading platform for small businesses, while Alibaba’s Taobao Marketplace and Tmall.com are leading China-based consumer-to-consumer and business-to-consumer sites, respectively.
China UnionPay (China) is the world’s second-largest credit-card network by transaction volume. It reported 2011 revenues of $900 million. China UnionPay cards are accepted in 125 countries and are responsible for more than 80 percent of the cross-border transaction volume of Chinese credit cards.
Citic Group (China) is a conglomerate with 2011 revenues of $49.3 billion. Citic is active in M&A. Its subsidiary, Citic Securities, bought CLSA, an investment research and advisory firm, in 2012 for $1.25 billion. The acquisition strengthens the company’s analytical capability outside China. Citic also has strategic partnerships with global leaders such as Itochu and Deutsche Bank.
MTN Group (South Africa) is Africa’s largest mobile operator. It has 183 million subscribers and licenses in 21 countries across Africa and the Middle East. About 60 percent of its revenues originated outside South Africa.
Naspers (South Africa) is the largest media company in the developing world, with revenues of $5.3 billion in fiscal 2012. The company’s portfolio includes a 34 percent share of Tencent (China) and a 29 percent share of Mail.ru (Russia).
VimpelCom (Russia) is the world’s sixth-largest mobile operator, as measured by the number of subscribers. In 2011, 40 percent of its $20.3 billion revenues were generated in Russia, although the company is headquartered in Amsterdam. VimpelCom has also completed several large acquisitions, including the $6 billion purchase of Italy’s Wind Telecom and a majority stake in Egypt’s Orascom Telecom Holding.
Powering Future Growth
PetroChina (China) is the world’s largest publicly traded oil producer, with 2011 revenues of $313.3 billion. In the past two years, PetroChina has been on the acquisition trail, spending $3 billion with Royal Dutch Shell to buy Arrow Energy jointly and $1 billion to buy assets from Ineos Group.
Sinopec (China) is the largest producer and distributor of chemical products in China, with 2011 revenues of $397.4 billion. Sinopec conducted several major overseas transactions and investments in 2011 and 2012, including the $2.1 billion purchase of Daylight Energy, the $1.5 billion purchase of a 49 percent stake in Talisman, both of Canada, and the acquisition of a one-third stake in five shale-oil and gas basins for $2.2 billion from U.S.-based Devon Energy.
Goldwind (China) was the world’s second-largest wind-turbine manufacturer in 2011, producing 9 percent of the turbines worldwide. In 2011, Goldwind spent $56 million on R&D, or nearly 3 percent of its $2 billion in revenues. Goldwind has a presence in North and South America, Australia, Europe, Africa, and Southeast Asia.
Trina Solar (China) is the world’s fourth-largest solar panel manufacturer, with 2011 revenues of $2 billion. Trina Solar’s vertical integration helps to improve its efficiency and shorten product-development cycles. More than 80 percent of its sales are generated overseas.
Building and Driving the World
Iochpe-Maxion (Brazil) is the largest Brazilian manufacturer of wheels and chassis, with $1.6 billion in 2011 revenues. Iochpe-Maxion completed two major overseas acquisitions in 2012: the purchases of Grupo Galaz for $195 million and of Hayes Lemmerz for $725 million.
Motherson Sumi Systems (India) is one of the leading manufacturers of auto mirrors and other components, with 2011 revenues of $3.1 billion, 70 percent of which originate overseas. The challenger is a joint venture between Samvardhana Motherson Group of India and Sumitomo Wiring Systems of Japan. Unlike other Indian companies, Motherson Sumi has not slowed its pace of acquisitions. In 2011, Motherson Sumi acquired 80 percent of Peguform, the second largest supplier of vehicle door panels in Germany.
Sany Group (China) is the largest construction-equipment group in China and the
sixth largest globally, with 2011 revenues of $12.6 billion. In 2012, Sany acquired German equipment maker Putzmeister for $474 million.
Sinoma International Engineering (China) is the world’s largest provider for cement technology, equipment, and engineering services, with $4 billion in 2011 revenues. In 2012, Sinoma partnered with Dangote Cement of Nigeria to complete the biggest cement factory in sub-Saharan Africa.
Tigre (Brazil) is the world’s third-largest maker of PVC pipes, fittings, and accessories, with 2011 revenues of $1.6 billion. Tigre’s success is partly based on designing new products—500 are launched a year—to local market conditions.
Flying the Skies
Aviation Industry Corporation of China (AVIC) (China) is a state-owned aerospace and defense company, with 2011 revenues of $40.5 billion. AVIC is investing heavily to become a leading competitor in the commercial aircraft market. China is currently evaluating a $16 billion plan from AVIC to fund jet-engine research.
AirAsia (Malaysia) is Asia’s largest low-fare, no-frills airline and a pioneer of low-cost travel. It reported 2011 revenues of more than $1.4 billion and the lowest per-available-seat cost per kilometer traveled in the world. AirAsia’s recent orders for 375 planes from Airbus will allow it to take advantage of the rising demand for air travel.
Etihad Airways (United Arab Emirates) is the national airline of the United Arab Emirates. The airline, which began operations in 2003, carried 8.3 million passengers to 86 destinations in 55 countries and generated $4.1 billion in revenues in 2011. It has more than 90 aircraft on order, including 10 Airbus A380s, the world’s largest passenger aircraft. Etihad Airways holds equity investments in airberlin, Air Seychelles, Virgin Australia, and Aer Lingus.
Qatar Airways (Qatar) is the state-owned flag carrier of Qatar with more than 120 destinations throughout the world. In 2011 and 2012, Qatar Airways was recognized as the world’s best airline at the Skytrax World Airline Awards.
Turkish Airlines (Turkey) flies to more countries—91—from a single hub than any other carrier. It also has the goal to become the world’s largest airline by 2023. In 2011, 84 percent of its $7 billion revenues originated overseas.