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Seven Indian cos among Bain's top-15 in investor returns

The highest return giving Asian company was Thailand-based Charoen Pokphand Group with 40% total shareholder returns. The return was in the period from 2007 to 2016.

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Indian business groups Bajaj, Wadia, Murugappa, Lalbhai, Godrej, Emami and Torrent are among top 15 companies in investors returns in Asia, shows a Bain report.

Whereas, the conglomerates like Reliance Industries, Aditya Birla Group, Tata Sons, Infosys, Larsen & Toubro, Wipro didn't find a mention in the top spots.

As per the report, these seven 'top' Indian companies have given out total shareholder returns in the range of 32% (Bajaj Group) to 22% (Torrent Group). The highest return giving Asian company was Thailand-based Charoen Pokphand Group with 40% total shareholder returns. The return was in the period from 2007 to 2016.

But overall, according to Bain & Co, Indian and South-East Asian conglomerates' advantage in total shareholder returns has eroded in recent years.

"Asian conglomerates are at a turning point. For the first time in 15 years of tracking performance, they under-performed pure plays in their markets on core financial performance. From 2007 to 2016, total annual shareholder return (TSR) dropped to 11% for conglomerates— slightly less than the 12% for pure plays, but enough to signal changes ahead and raise questions about whether Asian conglomerates have reached the end of the road," read their statement.

Conglomerates no longer hold an advantage in total shareholder returns over pure plays that they once did and have begun to under-perform in revenue growth and margin improvement.

In order to avoid a bleak fate, the Asian conglomerates "need to renew themselves— it's especially critical in a time of digital disruption and rising competition from global technology powerhouses," recommends the report – Asia's Conglomerates: End of the Road?

Earlier, South-East Asia's conglomerates had several factors in their favour like easier and earlier access to opportunities, rights to natural resources, the foundation of many conglomerates in the region, advantage in regulations, talent and capital. However, in 2014, as Asia's markets developed, those benefits steadily diminished and the conglomerate premium compressed.

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