Nice article!! But how about placing liquor company UB into the same category such as Reliance, ITC & Bharti - UB is just cheap liquor & now airlines!! No in depth research done i beleive or maybe the author`s high on UB products.
gone are the days when companies would stick to one sector. now, even companies have become speculators with cash and marketing muscle, on a lookout for the best sectors to invest into, make a quick buck and make an exit when the sector loses it's profitability. so, the only core competency these companies will be working on will be creating a recognizable brand and country / worldwide marketing network, through which they can push products or services across sectors... so, can i expect Surf chocolates in future :D
The very same trend was seen during the year 2000. The companies were investing in Non-Core sectors and they called diversification, Forward and Backward integration.
From on the Treshold these cos are vanished including the Big time players. It took another 4-5 years to reach this level. Hence, The action by the corporates shall be closely monitored
