Only 3 per cent of Indian companies really 'ready for growth': Study

NEW DELHI: India has fewer 'strategically adrift' companies than observed globally, but only 3 per cent of Indian companies are really 'ready for growth', says a study.

The study titled 'Why Indian companies need to get Fit for Growth and what you can do' by PwC Strategy& noted nearly 80 per cent of surveyed organisations fall short of realising their growth potential because of being strategically adrift, distracted or capability constrained.

As per the study, only 3 per cent of Indian companies are really "ready for growth" and others must look to overcome specific challenges to future-proof themselves.

The global story is not too different, with only 13 per cent of over 200 surveyed organisations reporting high Fit for Growth scores.

A "strategically adrift" organisation for instance should look to re-craft its corporate strategy and align it with core capabilities, a "distracted" organisation must channelise its resources towards core activities, while a "capability constrained" organisation should review its operating model, the report said.

The report further noted that with the Indian economy beginning to bounce back, the time is now right for these organisations to get 'Fit for Growth' by investing in building scale and achieving the next level of growth.

"While organisations would rarely disagree that robust strategies, solid cost management and powerful organisations are critical to performance, few of them are masters in integrating all three elements which together form the foundation for a winning organisation," PwC Strategy& India Managing Director Jai Sinha said.

The Fit for Growth approach captures the essence of what constitutes a winning organisation- strategic clarity, optimal resource allocation and a supportive organisation - and evaluates how well a company fares across all three aspects.