Brazil
Petrobras – Oil and gasPetrobras’ profits rose 540% in the first quarter, compared with TotalFinElf’s 49% increase. Operational efficiency and further development of the Campos Basin helped to increase production to a level only slightly below that of UK giant BP. Continued growth at this rate will soon lead to Petrobras becoming a leading competitor to the multinationals.
Vale Rio Doce – Mining
Vale Rio Doce, the world’s largest producer of iron ore, exports 80% of its produce and, with the depreciation of the dollar and the prospect of further Brazilian interest rate cuts, is in a position to become Brazil’s most profitable company. If China continues to boom this can only bring Vale Rio Doce more success, as the country accounts for one quarter of all the company’s exports.
Croatia
Pliva – Pharmaceuticals
Pliva is the largest pharmaceutical company by turnover in central and eastern Europe and has recently bought companies in the Czech Republic, France, Germany, the UK and the US. Operating out of 40 countries and with 80% of revenue from overseas, Pliva is transforming from a small Croatian firm to a multinational pharmaceutical. Its synthesised antibiotic, Azithromycin, has a dosing time of less than a third of the average and sales will help to fuel further research and development.
Ghana
Ashanti Goldfields Company – Mining
Having unwound its gold hedging positions in a climate of rising gold prices, Ashanti has become an attractive target. It is currently involved in talks with AngloGold of South Africa, which if successful would result in the world’s largest gold producer by capacity.
Hungary
MOL Hungarian Oil and Gas Company – Oil and gas
Under active management, MOL is emerging as a consolidator of newly privatised oil companies alongside rivals such as Poland’s PKN and Austrian OMV. Having recently gained a majority stake in Slovnaft of Slovakia, MOL is set to take control of soon-to-be privatised Beopetrol of Serbia, beating OMV. With the increasing sales of state-owned oil companies in the Balkans, MOL’s predatory and efficiency-driven instinct could lead to it becoming a force to be taken seriously in the next decade, especially if it can gain control of OMV and PKN.
Hong Kong & China
Sinopec – Oil and gas
Sinopec has been instrumental in forming the joint ventures with foreign multinationals that will help China’s economy by bringing in state-of-the-art technology and European management skills. It has recently agreed joint ventures with the UK’s British Petroleum and Germany’s BASF to meet demand of the Yangtze, which is outstripping rapid growth. With China’s membership of the World Trade Organisation, Sinopec could replicate any joint venture success abroad.
Kejian – Telecommunications
Kejian achieved sales of 1.5 million handsets last year and expects 2 million this year, giving it a strong foothold in a market dominated by the likes of Motorola, Nokia and Samsung. Kejian’s success has arisen through advertising campaigns, a strong sales network and an understanding of local tastes, and establishing a recognised brand name. Growth in demand for mobile phones is set to rise in China, with penetration rates still relatively low and Kejian is well positioned to exploit this.
Yanjing Beer – Beverages
The Chinese beer market is the world’s second largest after the US and this dynamic, state-owned enterprise is the second biggest in the market. Confident of its private sector-style management, modern German equipment and television campaigns, the firm is expanding overseas into Taiwan and looking to other markets. The real catalyst, however, will be the Beijing Olympics in 2008, which will give Yanjing a worldwide audience for its marketing.
Geely – Automobiles
This private company aims to be the Toyota of China, competing directly with Toyota’s cheaper models, and aiming at first-time and young buyers. Geely has recently signed a technical co-operation deal with Daewoo of South Korea as part of its drive to develop its own products and technology. The first result of this initiative will be coming out this year – a medium-sized saloon, the “Beauty Leopard”, with further models planned. If the raising of capital is successful in the near future, then Geely plans a foray into markets such as India and Pakistan. It has already made a tentative step into the US.
India
Ranbaxy Laboratories – Pharmaceuticals
Ranbaxy recently received approval from the US Food and Drug Administration for the manufacture and marketing of Fluconazole, which is an alternative to US Pfizer’s successful Diflucan. With further patents in the US expiring in the next couple of years, Ranbaxy looks well placed to achieve its ambition of bringing generic alternatives to the US healthcare system and maintaining its fantastic rate of growth. With 31 products awaiting approval in the US, Ranbaxy is likely to climb further up the top 10 in this lucrative market.
South Korea
Samsung Electronics
Samsung Electronics is to invest $16.7bn over 10 years in the thin film transistor liquid crystal displays used in flat screen production. Currently controlling about 17% of the market, Samsung plans to increase this to almost a quarter at the expense of Taiwan’s AU Optronics and Japan’s Sharp.
LG Electronics
LG is seriously challenging the dominance of Nokia, Motorola and Sony Ericsson in the global mobile handset market. In the last quarter, it increased its market share from 3.1% to 4.5%. With Motorola and Sony Ericsson in contraction, LG could join the battle with fellow Korean rival Samsung against Nokia for the largest market share.
Mexico
FEMSA – Beverages
FEMSA is Latin America’s biggest beverage company by sales. Its subsidiary, FEMSA Coca-Cola, is the largest regional producer and bottler of Coca-Cola products and the second largest in the world. The recently agreed merger with Panamco, the third largest Coca-Cola bottler in the world, will allow FEMSA to penetrate the markets of Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela and Brazil. It will be hoping to repeat the success it has had in Mexico and Argentina, where it holds approximately a quarter and a third of the market, respectively.
Mongolia
Gobi JSC – Textiles and clothing
Gobi is the largest Mongolian cashmere producer. With companies in Belgium and the US, Gobi exports almost 90% of its produce to western Europe and the US. In 2002, net sales were $18.5m. With the imminent privatisation of a 70% stake, purchase by a foreign buyer will increase investment and brand recognition of this future household name.
Russia
Gazprom – Oil and gas
Gazprom is the world’s largest gas producer, with just under a quarter of the global market. Proposed joint ventures with Germany’s Ruhrgas would further strengthen its position, as previously inaccessible resources are tapped.
Rosneft – Oil and gas
Russia’s ninth biggest crude oil producer is unique in its plans to expand its southern hemisphere fleet and to create a northern fleet to export its increasing production. Other Russian oil majors are shrinking fleets and negotiating with Transneft for increased capacity, or else building their own pipelines. Transneft and Rosneft are both state-owned, showing either a lack of co-ordination in industrial policy or else a hint of future developments in an export market that rivals Saudi Arabia.
Sibir – Transport
This domestic airline has a modern management team and international ambitions. Having merged with Russia’s largest domestic carrier in 2001, it recently took over Armenia’s main carrier and has built up passenger numbers as it chips away at Aeroflot’s empire. If the government lifts restrictions on foreign aeroplane imports, a revamp of Sibir’s fleet could allow it to take on the likes of BA and Lufthansa on routes to Germany, China and the Middle East.
Wimm-Bill-Dann Foods – Consumer and retail
This relatively new beverage and dairy company prospered throughout the 1990s and is likely to continue to do so as disposable income and demand grows in Russia, a country with 147 million consumers. Talks with France’s Danone could lead to a profitable partnership that could raise WBM’s profile even further.
United Heavy Machinery – Engineering
UHM is Russia’s largest industrial and engineering corporation. With high-value exports of nuclear production equipment and the construction of vast tankers, UHM is expanding aggressively, being able to compete internationally with low production and labour costs. Once UHM is established as a brand name and reaches the size of its Western peers, it may well move into the US and Europe.
Turkey
Tüpras – Oil and gas
Tüpras has 86% of Turkey’s refining capacity and 75% domestic market share for petroleum products. With highly regarded management and imminent privatisation, private investment could allow Tüpras to consolidate and build on its position as Europe’s seventh largest refining company.
Koc Group – Industrial conglomerate
This 19-business conglomerate is set to take advantage of the liberalisation of the European Union (EU) hopefuls on its doorstep. Aygaz is looking for opportunities to expand in Romania and Bulgaria, while Turk Telecom is looking for a major role in the privatisation of Bulgar Telecom. The largest private company in Turkey, Koc Group is increasingly European in its outlook and export strategy, which is likely to accelerate in the future as the prospect of Turkish EU membership looms nearer.
