The Hindu Business Line : India second in league of `super growth' companies

India and Hong Kong have jointly been ranked second in the Grant Thornton International Super Growth Index for the country with the highest proportion of "super growth" companies.

The US has topped the Index for the second consecutive year but despite bagging the highest rank, the proportion of super growth companies in the US actually fell by nine per cent.

In contrast, with more than a third of companies (34 per cent) achieving super growth status, India and Hong Kong were within reach of challenging the US for the top slot on the index.

Other strong performances came from Sweden (31 per cent) - which climbed back up to third position after falling to 10th last year from first position in 2004 - and Ireland (26 per cent).

According to a release, a super growth company is one that has grown considerably more than the average measured against key indicators, including turnover and employment.

This year, the survey established that super growth companies are 23 per cent more likely to export than other companies. Also, they are far less constrained by the ability to finance expansion of business.

Mr Andrew Godfrey, Partner at Grant Thornton, said: "The US continues to perform relatively well, reflecting the inherent dynamism of its economy which saw buoyant consumer demand, strong capital investment, and robust export growth. But the real story is the continuing rise of Indian and Hong Kong companies, as their economies boom and productivity continues to surge."

He added: "On current trends, there is every chance that we could see a change in the top ranking next year. The other interesting finding is that super growth companies appear to have a competitive advantage as they are not constrained by access to expansion finance."

Mr Vishesh Chandiok, Partner (International Business) at Grant Thornton India, said: "Indian owner-managed companies are clearly seeing substantial quarter-on-quarter growth and therefore, one would have been surprised if Indian companies were not near the top of the table. It is clearly an indication of the significant potential for growth in this country, as well as a confirmation of the abundant entrepreneurial talent in India. These medium-sized owner-managed companies are the potential global leaders of tomorrow, and that fact augurs well for the future of the Indian economy and its increasing role in the global economy."

Italy, Russia and Turkey jointly shared the bottom position in the index.