Senior Manager, Treasury

Waves of corporatisation in India

Corporatisation can be generally referred to as standardisation and formalisation of a business firm along the modern techno-industrial lines. This practice of corporatisation began in Britain during industrial revolution when big companies based on coal, iron and steam engine set up industries across England and there was a need for standardisation of business operation of a particular company all across the country. This later spread to United States (beginning from Cotton textiles and plantation firm having large holdings), France and Germany during 19th century. As far as India is concerned, it has witnessed four waves of corporatisation First wave of corporatisation was based on Kolkata beginning with East India Company, which gradually opened up for multiple English companies after 1858 GoI Act. Later on several companies of textiles, chemicals and heavy industries opened their offices in Kolkata, of whom many beginning to be owned by Indians too. Second wave of corporatisation began in Bombay Mumbai when Manchester based textiles companies opened up their head offices in Mumbai in purpose of handling export of raw cotton from Gujarat and Maharashtra and importing finished textiles from England through Mumbai port. Later on several Gujrati Marwari textile companies opened factories and offices in Mumbai. Corporatisation in Mumbai went for a long period of time I would say, even after independence. It benefitted from spread of communism in Bengal, which made Kolkata unattractive destination for investment, and LPG reforms, after which companies boomed in India who subsequently only found Mumbai as most suitable site for office. Third wave of corporatisation began in Delhi-NCR, Bangalore and Hyderabad coinciding with IT boom in India. Availability of talent pool became the biggest common factor triggering corporatisation in these three cities. We are currently in fourth wave of corporatisation which is not limited to handful of big cities. Corporate world also streching their roots to multiple cities like Chennai, Vishakhapatnam, Ahemdabad, Bhubaneswar, Indore, Jaipur, Lucknow etc as well. Companies are opening their offices in other cities as well for managing their operations in regional level. Several start-up companies are also emerging. In future companies likely to shift their peripheral operations involving technical staff in other cities and limit only managerial level tasks in respective offices in big cities.

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