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.

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Agencies
February 6,2020

Washington D.C., Feb 6: An international team of astronomers has found an unusual monster galaxy that existed about 12 billion years ago when the universe was only 1.8 billion years old.

The team of astronomers was led by scientists at the University of California, Riverside.

Dubbed XMM-2599, the galaxy formed stars at a high rate and then died. Why it suddenly stopped forming stars is unclear.

"Even before the universe was 2 billion years old, XMM-2599 had already formed a mass of more than 300 billion suns, making it an ultra massive galaxy," said Benjamin Forrest, a postdoctoral researcher in the UC Riverside Department of Physics and Astronomy and the study's lead author.

"More remarkably, we show that XMM-2599 formed most of its stars in a huge frenzy when the universe was less than 1 billion years old and then became inactive by the time the universe was only 1.8 billion years old," Forrest added.

The team used spectroscopic observations from the W. M. Keck Observatory's powerful Multi-Object Spectrograph for Infrared Exploration or MOSFIRE, to make detailed measurements of XMM-2599 and precisely quantify its distance.

The study results appear in the Astrophysical Journal.

"In this epoch, very few galaxies have stopped forming stars, and none are as massive as XMM-2599," said Gillian Wilson, a professor of physics and astronomy at UCR in whose lab Forrest works.

"The mere existence of ultramassive galaxies like XMM-2599 proves quite a challenge to numerical models. Even though such massive galaxies are incredibly rare at this epoch, the models do predict them."

"The predicted galaxies, however, are expected to be actively forming stars. What makes XMM-2599 so interesting, unusual, and surprising is that it is no longer forming stars, perhaps because it stopped getting fuel or its black hole began to turn on. Our results call for changes in how models turn off star formation in early galaxies," the professor stated.

The research team found XMM-2599 formed more than 1,000 solar masses a year in stars at its peak of activity -- an extremely high rate of star formation. In contrast, the Milky Way forms about one new star a year.

"XMM-2599 may be a descendant of a population of highly star-forming dusty galaxies in the very early universe that new infrared telescopes have recently discovered," said Danilo Marchesini, an associate professor of astronomy at Tufts University and a co-author on the study.

"We have caught XMM-2599 in its inactive phase," Wilson said, who led the W. M. Keck Observatory data acquisition
Co-author Michael Cooper, a professor of astronomy at UC Irvine, said this outcome is a strong possibility.

"Perhaps during the following 11.7 billion years of cosmic history, XMM-2599 will become the central member of one of the brightest and most massive clusters of galaxies in the local universe," he said.

"Alternatively, it could continue to exist in isolation. Or we could have a scenario that lies between these two outcomes," he stated.

The study was supported by grants from the National Science Foundation and NASA.

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Agencies
March 3,2020

Facebook on Monday launched a new consumer marketing campaign in India titled 'More Together'. India is the first country in the Asia Pacific region where such a campaign is being rolled out.

It is also the first time that Facebook is rolling out a 'high decibel campaign of this stature in India', the company said in a statement.

It is also the first time that Facebook is rolling out a 'high decibel campaign of this stature in India', the company said in a statement.

"India is at the heart of Facebook and one of our focus areas this year is to tell the exciting story of a service that is deeply embedded in the fabric of India," said Ajit Mohan, Vice President and Managing Director, Facebook India.

The campaign would have multiple campaigns over the next few weeks in eight languages and the one will be set in the context of Holi.

Facebook in 2019 introduced a new company logo to further distinguish the company from the Facebook app.

The company recently announced the appointment of Avinash Pant as the Marketing Director for India operations, to drive the consumer marketing efforts across the family of apps.

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Agencies
February 25,2020

Tokyo, Feb 25: Japan's Chitetsu Watanabe, recognized at 112 years as the oldest man in the world, has passed away 11 days after he received the Guinness World Record certificate, his family said on Tuesday.

Watanabe died on Sunday night, Efe news reported.

He received the official certificate on February 12 at a nursing home in Joetsu in Niigata prefecture, where he resided.

Soon after being certified as the oldest man, he began to experience a lack of appetite and respiratory problems, the wife of his eldest son told public broadcaster NHK.

Born on March 5, 1907 in a family of farmers, Watanabe moved at the age of 20 to Taiwan, where he worked at a sugar refinery for 18 years before returning to Japan after the end of World War II.

A fan of calligraphy, custard and ice cream, Watanabe told the Guinness team that the key to his long life was laughter.

He was recognized as the oldest male in the world following the deaths in 2019 of German Gustav Gerneth (in October), aged 114 years, and Japan's Masazo Nonaka (in January), at the age of 113, three months older than the German.

It remains to be seen who will be recognized after the death of Watanabe, the only male on the list drawn up by the Gerontology Research Group of the 30 oldest people in the world.

Japan has among the highest life expectancy in the world and the number of centenarians in the country has crossed 71,000, according to the latest government figures.

Since 2000, the number of centenarians censored has quintupled, raising concern for the economic outlook and future workforce of the country - where the birthrate is on a downward trend.

Out of these, 88 per cent are women.

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