India has 3rd highest number of family-owned businesses: report

Agencies
October 27, 2017

New Delhi, Oct 26: India has 108 publicly-listed family-owned businesses, third highest in the world, says a Credit Suisse report.

China tops the tally with 167 such companies followed by the US which has 121.

As per the Credit Suisse Research Institute's (CSRI) latest "CS Family 1000" report, with an average market capitalisation of $ 6.5 billion, India ranks 5th in Asia Pacific, excluding Japan, and 22nd globally, in terms of average m-cap.

Besides China, the US and India, the top 10 countries in terms of the number of family-owned companies include France (4th), Hong Kong (5th), Korea (6th), Malaysia (7th), Thailand (8th), Indonesia (9th), and Mexico (10th).

However, in terms of average size, the ranking changes much more in favour of developed markets, the report said.

Average market capitalisation of family-owned companies is greatest in Spain ($ 30 billion), the Netherlands ($ 30 billion), Japan ($ 24 billion) and Switzerland ($ 22 billion), the report that covered close to 1,000 family-owned, publicly-listed companies by region, sector and size said.

It further said Indian companies surveyed are more mature, with 60% of family businesses in their third generation compared to 30% of Chinese companies.

According to Credit Suisse, the financial performance of family-owned companies is also superior to that of non-family-owned peers. Furthermore, family businesses appear to focus more on long-term growth and they have outperformed peers in terms of share price returns.

"At country-level, Chinese, Indian and Indonesian family-owned companies appear to be the most expensive, trading at high absolute multiples, with a 12-month median price to earnings (P/E) of 15-16 times, compared to around 10 -13 times P/E multiples of companies in Korea, Hong Kong and Singapore," the report said.

The definition used for the database of family or founder-owned companies is a minimum shareholding of 20% and/or minimum voting rights of 20%.

In terms of key concerns and challenges, Chinese family-owned companies rank succession planning as their least important issue and do not envisage a reduction in ownership.

However, they tend to worry much more about the threat of technological disruption (30% said this was very concerning) which may be driven by China's overall greater exposure to disruptive technologies globally and its state of economic development.

On the other hand, challenges seen as most prominent in India include succession planning, followed by greater competition and talent retention.

"Overall, our findings indicate that our Indian family-owned businesses appear to be more optimistic with regard to future revenue growth and have a slightly more conservative approach to funding that growth," the report said.

More than half of the Indian and Chinese family companies that Credit Suisse surveyed generate revenues in excess of $ 500 million, with the majority of these businesses located across sectors of IT, financials and industrials.

India lags slightly behind China not just on the adoption of environment-related issues, but also on social issues, with 35% of companies implementing policies in relation to this compared to 65% for China.

"Our research seems to suggest that investors are not too concerned about the level of ownership but rather how involved the family owners are in the daily running of the business. This seems to be at the core of the success of family-owned companies in our view," said Eugene Klerk, the head analyst of thematic investments at Credit Suisse and the lead author of the report.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 7,2020

Toronto, May 7: Scientists have uncovered how bats can carry the MERS coronavirus without getting sick, shedding light on what triggers coronaviruses, including the one behind the COVID-19 pandemic, to jump to humans.

According to the study, published in the journal Scientific Reports, coronaviruses like the Middle East respiratory syndrome (MERS) virus, and the COVID19-causing SARS-CoV-2 virus, are thought to have originated in bats.

While these viruses can cause serious, and often fatal disease in people, bats seem unharmed, the researchers, including those from the University of Saskatchewan (USask) in Canada, said.

"The bats don't get rid of the virus and yet don't get sick. We wanted to understand why the MERS virus doesn't shut down the bat immune responses as it does in humans," said USask microbiologist Vikram Misra.

In the study, the scientists demonstrated that cells from an insect-eating brown bat can be persistently infected with MERS coronavirus for months, due to important adaptations from both the bat and the virus working together.

"Instead of killing bat cells as the virus does with human cells, the MERS coronavirus enters a long-term relationship with the host, maintained by the bat's unique 'super' immune system," said Misra, one of the study's co-authors.

"SARS-CoV-2 is thought to operate in the same way," he added.

Stresses on bats, such as wet markets, other diseases, and habitat loss, may have a role in coronavirus spilling over to other species, the study noted.

"When a bat experiences stress to their immune system, it disrupts this immune system-virus balance and allows the virus to multiply," Misra said.

The scientists, involved in the study, had earlier developed a potential treatment for MERS-CoV, and are currently working towards a vaccine against COVID-19.

While camels are the known intermediate hosts of MERS-CoV, they said bats are suspected to be the ancestral host.

There is no vaccine for either SARS-CoV-2 or MERS, the researchers noted.

Follow latest updates on the COVID-19 pandemic here

"We see that the MERS coronavirus can very quickly adapt itself to a particular niche, and although we do not completely understand what is going on, this demonstrates how coronaviruses are able to jump from species to species so effortlessly," said USask scientist Darryl Falzarano, who co-led the study.

According to Misra, coronaviruses rapidly adapt to the species they infect, but little is known on the molecular interactions of these viruses with their natural bat hosts.

An earlier study had shown that bat coronaviruses can persist in their natural bat host for at least four months of hibernation.

When exposed to the MERS virus, the researchers said, bat cells adapt, not by producing inflammation-causing proteins that are hallmarks of getting sick, but instead by maintaining a natural antiviral response.

On the contrary, they said this function shuts down in other species, including humans.

The MERS virus, the researchers said, also adapts to the bat host cells by very rapidly mutating one specific gene.

These adaptations, according to the study, result in the virus remaining long-term in the bat, but being rendered harmless until something like a disease, or other stressors, upsets this balance.

In future experiments, the scientists hope to understand how the bat-borne MERS virus adapts to infection and replication in human cells.

"This information may be critical for predicting the next bat virus that will cause a pandemic," Misra said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
May 27,2020

Due to impacts of COVID-19, shipments of total mobile phones are forecast to decline 14.6% in 2020, while smartphone shipments will achieve a slightly slower decline of 13.7 % year over year to total 1.3 billion units this year, according to a Gartner forecast on Tuesday.

"While users have increased the use of their mobile phones to communicate with colleagues, work partners, friends and families during lockdowns, reduced disposable income will result in fewer consumers upgrading their phones," Ranjit Atwal, Senior Research Director at Gartner, said in a statement.

"As a result, phone lifetimes will extend from 2.5 years in 2018 to 2.7 years in 2020," said Atwal.

In 2020, affordable 5G phones were expected to be the catalyst to increase phone replacements, but now it is unlikely to be the case.

5G phones are now forecast to represent only 11% of total mobile phone shipments in 2020.

"The delayed delivery of some 5G flagship phones is an ongoing issue," said Annette Zimmermann, Research Vice President at Gartner.

"Moreover, the lack of 5G geographical coverage along with the increasing cost of the 5G phone contract will impact the choice of a 5G phone."

Overall, spending on 5G phones will be impacted in most regions apart from China, where continued investment in 5G infrastructure is expected, allowing providers in China to effectively market 5G phones.

The combined global shipments PCs, tablets and mobile phones are on pace to decline 13.6% in 2020, according to the forecast.

PC shipments are expected to decline 10.5% this year. Shipments of notebooks, tablets and Chromebooks are forecast to decline slower than the PC market overall in 2020.

"The forecasted decline in the PC market in particular could have been much worse," said Atwal.

"However, government lockdowns due to COVID-19 forced businesses and schools to enable millions of people to work from home and increase spending on new notebooks, Chromebooks and tablets for those workers. Education and government establishments also increased spending on those devices to facilitate e-learning."

Gartner said that 48 per cent of employees will likely work remotely at least part of the time after the COVID-19 pandemic, compared to 30 % pre-pandemic.

Overall, the work from home trend will make IT departments shift to more notebooks, tablets and Chrome devices for work.

"This trend combined with businesses required to create flexible business continuity plans will make business notebooks displace desk based PCs through 2021 and 2022," said Atwal.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
July 24,2020

Melbourne, Jul 24: Home-made cloth face masks may need a minimum of two layers, and preferably three, to prevent the dispersal of viral droplets associated with Covid-19, according to a study.

Researchers, including those from the University of New South Wales in Australia, noted that viral droplets are generated by those infected with the novel coronavirus when they cough, sneeze, or speak.

As face masks have been proven to protect healthy people from inhaling infectious droplets as well as reducing the spread from those who are already infected, several types of material have been suggested for these, but based on little or no evidence of how well they work, the scientists said.

In the current study, published in the journal Thorax, the researchers compared the effectiveness of single and double-layer cloth face coverings with a surgical face mask (Bao Thach) at reducing droplet spread.

They said the single layer covering was made from a folded piece of cotton T shirt and hair ties, and the double layer covering was made using the sew method described by the US Centers for Disease Control and Prevention (CDC).

The scientists used a tailored LED lighting system and a high-speed camera to film the dispersal of airborne droplets produced by a healthy person with no respiratory infection, during speaking, coughing, and sneezing while wearing each type of mask.

Their analysis showed that the surgical face mask was the most effective at reducing airborne droplet dispersal, although even a single layer cloth face covering reduced the droplet spread from speaking.

But the study noted that a double layer covering was better than a single layer in reducing the droplet spread from coughing and sneezing.

According to the researchers, the effectiveness of cloth face masks is dependent on the number of layers of the covering, the type of material used, design, fit as well as the frequency of washing.

Based on their observations, they said a home made cloth mask with at least two layers is preferable to a single layer mask.

"Guidelines on home-made cloth masks should stipulate multiple layers," the scientists said, adding that there is a need for more research to inform safer cloth mask design.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.