The problem of scale

There is room for consolidation in India, but we need to guard against concentration of power

Ritika Mankar Mukherjee, a consultant with Ambit Capital, has written an interesting report, Scouting for Giants, highlighting the lack of scale among Indian companies. She has looked at data across time and countries and observed that based on revenues, Indian companies are much smaller than their counterparts elsewhere. We have too many small companies and not enough large global size corporations.

Her analysis goes into a lot of detail and showcases some interesting data. According to her report, not many Indian companies are able to scale up and change orbit. Despite three decades of 7 per cent real GDP growth (13