Asian conglomerates being outrun by pure plays in their markets

Singapore

LAGGING Asian conglomerates must focus on renewal and growth in order to remain relevant and attractive, said analysts at consultancy Bain & Co, after their industry study released on Friday found that such companies recently underperformed pure plays in their markets.

The study analysed the performance of 102 conglomerates and 287 pure plays in South-east Asia and India and found that total shareholder return (TSR) dropped to 11 per cent for conglomerates from 2007 to 2016, compared with 12 per cent for pure plays in the same period.

When the study was conducted previously in 2014 and 2016, examining data from 2003 to 2012 and 200…