Mfg gave better returns than IT, pharma: StudyBS Reporter / Mumbai November 19, 2007The manufacturing sector was the top performer in creating shareholder value, according to a study by the Boston Consulting Group (BCG) and the Confederation of Indian Industry (CII), released in Mumbai today.Three manufacturing sectors (engineering and construction, industrial commodities and materials and commodities) created more value for its shareholders in last five years than IT or pharmaceutical companies.Engineering and construction companies, led by companies like Larsen & Toubro and BHEL, posted a total shareholder return (TSR) of 81% in the last five years trailing March 31, 2007, revealed the BCG-CII study.They were followed by companies in the industrial and manufacturing sector (like Crompton Greaves or Thermax), which posted a TSR of 72%, followed by companies in materials and commodities sector (cement, steel) which delivered a TSR of 57% in the last five years.Sectors that followed the manufacturing sectors in creating value in the last five years were telecom (51%), banking (49%), chemicals and fertilisers (47%), automotives (46%), according to the BCG-CII study.Compared to that, IT and pharmaceutical sector posted returns of 26% and 28%, respectively over the last five years. TSR includes returns earned through dividends and by way of capital appreciation. The study excludes companies listed after March 2002 and represent 70% of the market.
