Untitled - World Economic Forum by yaosaigeng


									The information contained in this booklet is based on
first-hand interviews with chief executive officers of
Global Growth Companies.

The views expressed in this publication do not
necessarily reflect those of the World Economic Forum.

World Economic Forum Headquarters
91-93 route de la Capite
CH-1223 Cologny/Geneva
Tel.: +41 (0)22 869 1212
Fax: +41 (0)22 786 2744

World Economic Forum Beijing Representative Office
501-502,West Tower
World Financial Centre
No.1 East 3rd Ring Middle road
Chaoyang District,100020
People’s Republic of China
Tel.: +86 10 6599 9500
Fax: +86 10 6599 9501/02

World Economic Forum Japan Office
Roppongi Hills Mori Tower 49F
6-10-1, Roppongi, Minato-ku
Tokyo 106-6149
Tel.: +81 (0)3 5771 0067
Fax: +81 (0)3 5771 0068

World Economic Forum USA
3 East 54th Street, 17th Floor
New York, NY 10022
Tel.: +1 212 703 2300
Fax: +1 212 703 2399

E-mail: ggc@weforum.org
1. Introduction and Background ..............................................................................................1

2. Index of Portrayed Global Growth Companies ...................................................................2

3. Global Growth Company Success Stories
   Accretive Health ......................................................................................................................4
   Banco Compartamos ..............................................................................................................6
   Beijing Redbaby Info-Tech.......................................................................................................8
   Better Place ..........................................................................................................................10
   Celulosa Argentina ................................................................................................................12
   du .........................................................................................................................................14
   IDEO .....................................................................................................................................16
   illycaffè ..................................................................................................................................18
   Indika Energy ........................................................................................................................20
   Karuturi Global ......................................................................................................................22
   Kokusai Kogyo Group ...........................................................................................................24
   KPIT Cummins Infosystems ..................................................................................................26
   LCY Chemical Corp. .............................................................................................................28
   Lynas Corporation Limited ....................................................................................................30
   MB Holding Company ...........................................................................................................32
   M+W Group ..........................................................................................................................34
   ReachLocal ...........................................................................................................................36
   Serum Institute of India .........................................................................................................38
   TAK Agro ..............................................................................................................................40
   TOTVS ..................................................................................................................................42
   Trina Solar .............................................................................................................................44
   Vingroup ...............................................................................................................................46
   WISeKey ...............................................................................................................................48
   Yida Group Co.Ltd ................................................................................................................50

4. Global Growth Company Partners and Industry Shapers ................................................53

5. Annexes
   Global Growth Company Community Agenda .......................................................................54
   Executive Summary – Redefining the Future of Growth: The New Sustainability Champions........55
   Acknowledgements ..............................................................................................................57
   Photo Credits ........................................................................................................................58
Introduction and Background

This year marks the fifth anniversary of the founding of the World Economic Forum’s
Community of Global Growth Companies (GGCs). During the past five years, we have
witnessed the emergence of a new generation of economic leaders.

Recognizing their importance, the Community engages those players that, in addition to
showing consistently high growth rates, act as disruptors of traditional industries through
their new technologies and innovative business models. GGC members come from both fast
growing emerging markets and established economies.

As of August 2011, the Community includes more than 310 members from 70 countries and
various regions. Membership is by invitation only, reviewed by a committee that applies strict
selection criteria, and limited to 50 new companies globally each year. Eligible companies
generally have a turnover between US$ 100 million and US$ 5 billion, and consistent annual
growth rates exceeding industry and regional averages. Importantly, GGC members are
building a global business beyond their traditional markets and are committed to having a
positive effect on the economies and societies in which they operate.

To illustrate the diversity, richness and best practices of the Community, we are delighted to
share the profiles of 24 Community members in the second edition of Trailblazers, Shapers and

The World Economic Forum is proud of the Global Growth Company Community. We are
confident that these new champions will fully leverage the platform that the Forum provides to
them, and that they will make a strong commitment to our mission to improve the state of the

Jeremy Jurgens                                    Jerry Yu
Senior Director                                   Director
Centre for Business Engagement                    Centre for Global Growth Companies
              Index of Portrayed Global Growth Companies

                                                                                                          M+W Group (p34)
                                                                                                          Infrastructure & Urban Development
                             IDEO (p16)
                             Palo Alto                             Accretive Health (p4)
                             Professional Services                 Chicago
                             (Consulting/Market Research)
Better Place (p10)
Palo Alto

                                                                                                                      WISeKey (p48)
                                               Banco Compartamos (p6)                                                 Geneva
                                               Mexico City                                                            Information Technology
                                               Banking (Microcredit)

ReachLocal (p36)
Woodland Hills
Media, Entertainment & Information

                                                                                                             TAK Agro (p40)
                                                                                                             Agriculture, Food & Beverage

                                                                                            TOTVS (p42)
                                                                                            São Paulo
                                                                                            Information Technology

                                                                             Celulosa Argentina (p12)
                                                                             Buenos Aires
                                                                             Pulp and Paper
                                                       Beijing Redbaby Info-Tech (p8)
                                                       Retail and Consumer Goods

    illycaffè (p18)                                                                             Yida Group Co. Ltd (p50)
    Trieste                                                                                     Dalian
    Agriculture, Food & Beverage                    Trina Solar (p44)
                                                                                                Infrastructure & Urban Development
                                                    Energy (Photovoltaic modules)               (Real Estate)

                                   KPIT Cummins Infosystems (p26)
du (p14)                           Pune
Dubai                              Information Technology (Automotive)
                                                                                                                    Kokusai Kogyo
                                                                                                                    Group (KKG) (p24)
                                                                                                                    Infrastructure & Urban
  MB Holding Company (p32)
  Energy (Oil)                                                                                      LCY Chemical Corp. (p28)
                                                         Vingroup (p46)                             Taipei
                                                         Hanoi                                      Chemicals (Fertilizers)
              Serum Institute of India (p38)             Infrastructure & Urban Development

                                     Karuturi Global (p22)                          Indika Energy (p20)
                                     Bangalore                                      Jakarta
                                     Agriculture, Food & Beverage                   Energy

                                                                                    Lynas Corporation Limited (p30)
                                                                                    Mining & Metals (Rare Earths)
        Global Growth Company Success Stories

        Accretive Health
        Healing Healthcare

                                cross the US, up to 90% of              As a result, many hospitals and primary care
                                hospitals collect only 85% of their     centres are haemorrhaging double-digit
                                due. Insurance claims                               revenue.
                                are often delayed,
                    denied, lost or overlooked. As        Instead of                Since 2003, Chicago-based
                    for emergency room services,          addressing only           Accretive Health has been
                    in the vast majority of cases,                                  “attacking this very significant
                                                          partial solutions
                    hospitals are mandated by                                       hospital revenue leakage”, in the
                    law to carry the treatment of         or focusing wholly        words of Etienne Deffarges, the
                    the uninsured, often at their         on cost reductions,       company’s Vice-Chairman, and a
                    own expense. While hospital           Accretive Health          member of the company’s founding
                    executives have their hands full
                                                          focuses on the entire management team. The company’s
                    focusing on clinical care and                                   focus is to bridge and patch the
                    quality, front-end administrators
                                                          revenue cycle of its      losses and inefficiencies rampant
                    are often inadequately armed          customers.                across the healthcare field. A built-
                    to grapple with, much less                                      for-purpose company, Accretive
                    entirely understand, one of the most arcane,        Health brings its industry-changing expertise
                    complex payment systems administered by             and unmatched technology to everything
                    any industry.                                       from insurance and benefits verification,
                                                                        to medical treatment documentation and
                                                                                coding, authorizations and referrals,
                                                                                and bill preparation and collections.
                                                                                The result: significant, sustainable
                                                                                improvements in medical quality and
                                                                                hospital operating margins, not to
                                                                                mention increased patient satisfaction.

                                                                                Instead of addressing only partial
                                                                                solutions or focusing wholly on
                                                                                cost reductions, Accretive Health
                                                                                focuses on the entire revenue cycle
                                                                                of its customers – typically multi-
                                                                                hospital systems, including faith-
                                                                                based or community healthcare
                                                                                systems, academic medical centres,
                                                                                independent ambulatory clinics, and
                                                                                physician practice groups. Through
                                                                                its innovative technology and process
                                                                                excellence, the company assumes
                                                                                responsibility for the management and

4   I   World Economic Forum   I   Global Growth Companies
cost of a customer’s revenue cycle operations.                        too. Thanks to the recent White House allocation
It supplements the client’s existing staff with                       of US$ 16 billion to switch the US over to
seasoned Accretive Health personnel, technology,                      digital medical records, medical billing systems
savvy and culture. Not least, it serves as an on-                     will be compelled to undergo massive annual
site operational partner.                                             upgrades in the future. Many medical executive
                                                                      are concerned about their capacity to cope with
Among Accretive Health’s most recent initiatives                      these new regulations – and will happily outsource
is a pioneering alliance with Minnesota-based                         this function if it means +4-6% annually to their
Fairview Health Services, which                                                   cash collections and improved results.
owns seven Midwestern hospitals
and 42 primary care clinics. This       "For every                  Deffarges credits the company’s
partnership focuses on reducing         100 patients who            highly productive partnership with
total cost of care while improving                                  the Global Growth Companies
medical outcomes, with thus-
                                        show up to be               Community “with helping us explore
far promising early results. The        admitted at a               future markets, and gain a greater
company is also expanding its           hospital we serve,          understanding and connection in
reach by promoting its offerings        we will find 85             certain markets, such as India, where
internationally.                                                    we already operate.” Accretive Heath
                                         paying solutions
                                                                    Chief Executive Officer Mary Tolan
Accretive Care does a lot of things      through a variety of recently addressed the prestigious
in a unique way. Example: It may         funds."                    World Health Congress, and, given
step up to find coverage solutions                                  her past participation in Davos, will no
for the uninsured. It may uncover ways to             doubt be a valuable contributor to future World
increase the yield on a co-payment. It may ensure     Economic Forum events.
that no process breakdowns lead to an insurance
company denial – Did the hospital get the right       Over the past five years, the publicly traded Accretive
authorization and/or the proper referral? Was X       Health, which reported 2010 revenue of US$ 610
or Y truly a medical necessity? Accretive Health      million, has had a compounded annual growth rate of
helps health providers recover lost or delayed        45%. Since 2005, the company has also increased
revenue, but it also helps countless patients pay     revenues by +359%. Currently holding only 1% of
for healthcare they otherwise could not afford.       US market share, Accretive’s high-level growth is
Says Deffarges: “For every 100 patients who           highly sustainable. From the perspective
show up to be admitted at a hospital we serve,        of the health industry, Accretive Health
we will find 85 paying solutions through a variety    is a niche market with limitless potential
of funds – whether it’s through federal money,        that will continue to shape
state money, private foundations or specialized       the health revenue cycle
interest funds.”                                      landscape in the US and
                                                      beyond in an innovative,
By digging up and navigating health laws and          game-changing way.
regulations, Accretive Health is fundamentally
reshaping the landscape of revenue cycle
management. The healthcare industry is booming,

                                        Accretive Health

                                        Industry Sector: Healthcare
                                        Location: Chicago, USA

  Mary A. Tolan
  Founder and Chief Executive Officer

                                                                      Global Growth Companies   I   World Economic Forum   I   5
        Global Growth Company Success Stories

        Banco Compartamos
        Lending a Hand

                               cross Mexico, the beneficiaries range     “The financial sector
                               from a small Oaxacan retailer to a        in Mexico has been very
                               Tlaxcala-based glazier and a Coahuila     successful attending to the
                               native who used her microloan to pay      needs of the middle-class and up,”
                    off her electricity bill and put down a payment on   says Executive Vice-President Carlos Danel,
                    a half-dozen computers needed to start her own       “but it has historically not seen the base of the
                    small coffee shop.                                   pyramid as potential clients.” One of Banco
                                                                         Compartamos’ competitive advantages? Talking
                    These three individuals were among the               to potential clients in the streets and in the
                    beneficiaries of the 2011 Banco Compartamos          mercados about their goals and dreams – then
                    microentrepreneur awards, given to women             figuring out the best ways to serve their financial
                    who demonstrate outstanding entrepreneurial          needs.
                    spirit. Over the past two decades, thanks to
                    Banco Compartamos’ microfinance programme            Founded in 1990 as a not-for-profit NGO and
                    that advances loans of roughly 1,000 pesos           supported by aid from international donors, the
                    apiece to local citizen within the country’s         bank recognized early on that the accelerated
                    lowest economic brackets, Mexico City-based          population growth across Mexico and Latin
                    Banco Compartamos has become one of Latin            America had surpassed available jobs. Then
                    America’s largest, most successful institutions.     and now, its goal is to bring financial services to

6   I   World Economic Forum   I   Global Growth Companies
the largest number of people in the shortest amount          from Mexico, the United States, Europe and South
of time, in particular to rural, underserved female          America. More to the point, Banco Compartamos’
entrepreneurs who historically lack access to working        historic IPO is the culmination of an ongoing strategy
capital loans. The bank realized early on that the           within microfinance to bring in the private sector, and
highest form of collateral in socially cohesive Mexico       relays the message that social service and profits can
was, and still is, a person’s reputation.                    exist side by side.

Example: Under the bank’s                                          “Becoming a publicly traded company is not
“Credito Mujer” programme,              Banco                      the road for every microfinance organization,”
Banco Compartamos extends                                          says Danel, adding that post-IPO, Banco
loans from 1,500 to 27,000 pesos                                   Compartamos has tripled in size and is able
to each member of a group of            comparative                to serve many more millions of underserved
anywhere from 10-50 women, all          advantage? Taking          households. “But it does make sense for
of whom are granted life insurance      to potential clients       some markets and institutions.”
at no additional cost. The group        in the streets and
then guarantees the bank that                                      Today, Banco Compartamos boasts a
they will repay the loan, even
                                        in the mercados            portfolio of US$ 11,621 million pesos
if one of its members defaults.         about their goals          that it lends to more than 2 million clients
Once clients have paid off the first    and dreams – then          spread across commerce, building,
loan, they qualify for additional       figuring out the best services, agriculture, livestock farming and
loans. These microloans permit                                     manufacturing – a figure that dwarfs non-
                                        ways to serve their
low-income Mexicans to develop                                     profit microfinance organizations in Latin
productive activities that help them    financial needs.           America. The bank boasts 391 service
pay off their bills, improve their                                 offices located in 32 Mexican states,
living environments, or buy raw materials en route to     employs more than 12,000 people. And for the past
creating their own “microenterprises”.                    seven years, it has provided its investors with an
                                                          average annual return on equity of roughly 47%.
In 2000, Banco Compartamos morphed into a
“SOFOL”, rendering the bank eligible for bank             Founder José Ignacio Avalos Hernández coined the
loans, debt placements and development bank               bank’s name, Compartamos, which means “Let’s
funding. In 2006, Mexican authorities gave Banco          Share”. As the bank expands its operations to other
Compartamos its bank license. And a year later,           regions of Latin America, in particular Peru and
Banco Compartamos did something that transformed          Guatemala, this philosophy can only bring the bank
it into an industry to watch. By launching a 2007 IPO,    and its customers additional dividends. Not least,
the bank effectively became an intermediary financial     this Latin American bellwether is showing the rest of
agent between large investors and the lower income        the industry what the possible future of microfinance
segments. Banco Compartamos’ IPO caused some              holds.
controversy within the industry about the spirit
and meaning of microfinance, yet no one could
dispute the total proceeds of US$ 468 million, with
purchases by 5,920 institutional and retail investors

                                                         Banco Compartamos

                                                         Industry Sector: Banking (Microcredit)
                                                         Location: Mexico City, Mexico

  Carlos Labarthe Costas   Fernando Alvarez Toca
  Executive President      Chief Executive Officer

                                                            Global Growth Companies      I   World Economic Forum      I   7
        Global Growth Company Success Stories

        Beijing Redbaby Info-Tech
        Family Affair

                                    hen pondering Beijing-based         selling, among other things, baby food, furniture,
                                    Redbaby Info-Tech, one can’t help   nursing equipment and maternity clothing (China
                                    but think of Amazon.com. The        is the second-largest market for child-friendly
                                    original Web-based bookseller       products after the US). Today, with its dedicated
                    continues its restless evolution and today sells    call centre, community sites, special channels,
                    consumers around the world everything from          multiple platforms, distribution branches across
                    shoes to grilling equipment and iPod speakers       eight Chinese provinces, and focus on customer
                    to power tools. Could Redbaby follow in its         experience, Redbaby is a multi-channel retailer
                    footsteps?                                          catering to the needs of the entire family, offering
                                                                        roughly 6 million Chinese consumers convenient
                    A leading catalogue and online retailing            shopping services 24/7.
                    company, and China’s largest multi-channel
                    direct sales retailer, Redbaby is clearly poised    Led by Chief Executive Officer Xu Peixin, the
                    for continuing growth and success. Founded          company broke even in its first year of funding,
                    in 2004, the company began its life as a B2C        with 2007 revenue of US$ 86 million, and since
                    baby and maternal care product company              2004 has grown annually by 300%. Named

8   I   World Economic Forum   I   Global Growth Companies
the number one e-commerce website of the top              the first female integrated shopping website in China..
100 most valuable companies worth investing in,           With its combined revenues of RMB 1.5 billion from
its shareholders include Northern                                      its online and catalogue sales businesses
Night Venture Capital, New Enterprise                                  in 2010 (with maternal care and childcare
Associates and KPCB China. Redbaby "Performance is                     products accounting for RMB 960 million,
understands that among the keys to          not a competitive          and non-maternal and childcare products
its success is the fruitful relationship                               accounting for RMB 540 million), experts
                                            enterprise. The key
between the customer and the                                           predict that the company’s new online
company. “Performance is not a              is the customer, good shopping platform, Binggo.com, will pass
competitive enterprise,” Xu Peixin has      customer service,          its target of RMB 1 billion this year, while
been quoted as saying. “The key is          good customer              revenues from other businesses maintain
the customer, good customer service,
                                            experiences and,           parity with those of last year. According
good customer experiences and,                                         to plans that the company revealed in
ultimately, trust.”
                                            ultimately, trust."        2010, Redbaby will make its website the
                                                                       core of its business while maintaining a
In addition to its various shopping websites, the         dual catalogue/online business model.
company has opened a dozen branches covering
16 provinces and cities to handle, on average,            “We are very honoured to become a member of
the 30,000 orders for 60,000 products that run            the Global Growth Company Community,” says
through its system every day. Other B2C companies,        Xu Peixin. “As the demand for the entire market
including Dangdang, and even Amazon in China,             continues to expand, we expect our own growth to
outsource their logistics services. But by establishing   continue, along with the continuous innovation we
its own logistics team, Redbaby has lowered costs         have seen during the past seven years of industry
and improved its delivery systems, easily outpacing       leadership.”
the competition.

Today, with operations in Beijing, Tianjin, Shanghai,
Shenyang, Nanjing, Wuhan, Dalian, Hangzhou and
half a dozen other cities and towns, Redbaby’s
growth is poised to continue alongside China’s rapid
development, especially after the company launching

                              Beijing Redbaby Info-Tech

                              Industry Sector: Retail and Consumer Goods
                              Location: Beijing, People’s Republic of China

  Xu Peixin
  Chief Executive Officer

                                                           Global Growth Companies      I   World Economic Forum      I   9
     Global Growth Company Success Stories

     Better Place
     Electric Dreams

                                erhaps no company extant has more           goal? To reduce worldwide reliance on oil with
                                direct links to the World Economic          a market-based model and infrastructure that
                                Forum than Better                                         could potentially spur widespread
                                Place, founded in Palo                                    adoption of a new breed of electric
                    Alto, California. Founder and Chief         Thanks to Better          vehicles.
                    Executive Officer Shai Agassi has                                     Six years after he first mulled
                    said that his company’s name
                                                                Place, consumers          over Schwab’s challenge,
                    was inspired by a question Klaus            have the same             Agassi’s Better Place is on track
                    Schwab posed in Davos in 2005:              freedom driving           to becoming the first scalable,
                    “How do you make the world a                electric cars as they sustainable personal transportation
                    better place by 2020?”                                                system designed for the mass
                                                                enjoy today with
                                                                                          market, well beyond early adopters
                    Agassi took Schwab’s dictum                 their gas-powered         or “greenies.”
                    not as a hypothesis, but as a               vehicles.
                    thoughtful call to arms. After all,                                   Why electric cars, and why
                    then as now, gas-powered vehicles continue to           now? The reasons range from economic and
                    play a critical part in the high levels of carbon       technological to environmental and health-related
                    emissions across the developed world, by as             (with a dash of geopolitics thrown in), according
                    much as 50% in some European countries. This            to John Proctor, Better Place’s Director, Global
                    is why former SAP-executive Agassi came up              Communications, who points out: “With
                    with a plan to create a complete solution for           Better Place, consumers gain affordability and
                    electric transportation. Better Place’s audacious       convenience.” After all, if they don’t, they won’t
                                                                                                        opt for electric at
                                                                                                        the scale needed for
                                                                                                        significant impact on oil

                                                                                                       Thanks to Better Place,
                                                                                                       consumers have the
                                                                                                       same freedom driving
                                                                                                       electric cars as they
                                                                                                       enjoy today with their
                                                                                                       gas-powered vehicles.
                                                                                                       Embedded software in
                                                                                                       their cars’ dashboards
                                                                                                       lets them know how
                                                                                                       much energy remains
                                                                                                       in the battery and, if
                                                                                                       needed, guides them
                                                                                                       to physical charge

10   I   World Economic Forum   I   Global Growth Companies
spots and battery switch stations across a country         Place announced a strategic agreement with China
or region. Replacing a nearly drained battery at           Southern Power Grid Company, the world’s eighth
an automated switch station takes less time than           largest utility, to further advance electric cars with
replenishing a car with gas at a fuel pump. Home-          switchable batteries across China. The new alliance is
and workplace-based charge spots enable drivers            rolling out a battery switch station and joint education
to top off their batteries easily and                                     centre in Guangzhou by the end of 2011.
regularly. And thanks to advances in
the batteries, and the stable cost of        Replacing a nearly           John Proctor notes that Better Place
electricity relative to oil prices, the per-                              has created an ecosystem that extends
                                             drained battery
kilometre cost of transportation in an                                    far beyond a carmaker like Renault to
EV sedan is significantly lower than         at an automated              achieve its mission. The company’s range
that of a gas-powered one, even after        switch station               of alliances includes a fleet of owners in
consumers factor in the amortized            takes less time than         Israel, as well as the leading operators
cost of the battery.
                                             replenishing a car           of gas stations, Danish state railways,
                                                                          global powerhouses like GE, automotive
But it’s not just consumers who              with gas at a fuel           clubs, HSBC and other financial backers,
would win big if electric vehicles with      pump.                        and (in the largest deal of its kind) an
switchable batteries gain widespread                                      electric utility in Australia that will power
traction. EVs offer governments the opportunity            the company’s network with 100% renewable energy.
for energy independence and environmental                  More automobile manufacturers are expected to
sustainability. A collective movement towards              sign on, too. Not least, governments and the public
electric-powered transport keeps funds otherwise           sector can begin establishing a sustainable direction
spent to import oil within a nation’s borders, opens       – and example – for future generations.
up new opportunities to use surfeits of electricity that
otherwise go to waste at off-peak times, and creates       By the end of 2011, Renault will begin rolling out the
new markets for renewable energy from wind, solar,         first of 100,000 switchable-battery vehicles already
geothermal and tidal sources. Moreover, the charge         committed for Israel and Denmark, with Australia to
spots, battery switch stations, grid technologies          follow in 2012. And CEO Agassi is proof positive that
and other infrastructure engender new (and hard-           one person can be charged to help make the world a
to-outsource) jobs in construction, engineering and        better, cleaner place. As the CEO himself said once,
management.                                                “Sometimes people
                                                           have to remind you
In 2008, Israel became the first country and Renault       to aim high.”
the first carmaker to embrace the Better Place model
of building a network to enable the mass adoption
of electric vehicles and offering a clean, competitive
alternative to gas-powered cars. Denmark and
Australia followed suit soon thereafter. This past
April, alongside officials from Guangzhou, Better

                                        Better Place

                                        Industry Sector: Automotive
                                        Location: Palo Alto, USA

  Shai Agassi
  Founder and Chief Executive Officer

                                                                 Global Growth Companies   I   World Economic Forum   I   11
     Global Growth Company Success Stories

     Celulosa Argentina
     Into the Woods

                                                 he 2008 International Book         “For us, trees are a crop, like growing
                                                 Fair in Buenos Aires, Argentina,   soybeans or corn,” says Chairman
                                                 had a not-altogether-expected      Douglas Albrecht, remarking that
                                                 patron. The literary world may     Argentina is one of the most efficient
                                       have been migrating slowly towards           places in the world to grow food and
                                       Kindles, Nooks and e-books, but the          forestry products. Celulosa Argentina’s
                                       support of corporate sponsor Celulosa        dedication to “sustainability” extends
                                       Argentina reminded the publishers,           across his business model and practice
                                       authors, librarians and                                    to how Albrecht manages
                                       book sellers milling around                                his approximately 2,000
                                       the largest book fair in the    "For us, trees             employees. “We take
                                       Spanish-speaking world          are like crop, like        our carbon footprint very
                                       that, well, paper matters.                                 seriously.”
                                                                     growing soybeans
                                       Those two words might         and corn."                   Celulosa Argentina also
                                       well be among the                                          owns and operates
                                       dictums of Martinez, Argentina-based        sawmills, paper mills and plywood mills
                                       Celulosa Argentina and its shareholder,     across Argentina, Uruguay and Chile –
                                       Grupo Tapebicua, a leading player           centres that specialize in growing and
                                       in that country’s forest industry and       processing eucalyptus and pinewood
                                       renewable energy sectors. An integrated     for the purposes of manufacturing and
                                       regional corporation that links solid,      distributing high-quality plywood, floors,
                                       sustainable forest development with         decks, tongue-and-groove boards,
                                       the manufacturing, marketing and            beams and moulding. The company
                                       distribution of successful high value-      also owns some 21,000 hectares of pine
                                       added products, Celulosa Argentina has      and eucalyptus forest in the northwest
                                       resource and energy investments across      Argentine province of Corrientes and in
                                       Argentina and Uruguay that include pulp,    Uruguay. Every year, Celulosa Argentina
                                       paper and forestry products, as well as     produces roughly 217,000 tons of pulp
                                       bio-diesel and oil and gas exploration.     and 205,000 tons of paper, including
                                       Committed to the use of renewable           packaging paper and coated and non-
                                       resources, the company oversees its         coated printing, writing and tissue paper
                                       forests in accordance with the most         (a fast-growing market in which Celulosa
                                       stringent environmental guidelines and      Argentina plans to expand its presence),
                                       international criteria, with a chain of     that it then distributes to both domestic
                                       custody involving raw material derived      and global markets. Not least, its affiliate
                                       from forests certified under Forest         company, Patagonia Bioenergia, is
                                       Stewardship Council standards.              one of the world’s largest independent
                                                                                   producers of soy biodiesel.

12   I   World Economic Forum   I   Global Growth Companies
No less impressive than its holdings is the company’s       the Community of Global Growth Companies
longstanding corporate responsibility. As the second        (Celulosa Argentina has been a Member since
largest employer in Argentina’s Corrientes province,        2009), particularly during these volatile economic
Celulosa Argentina regularly donates wood for the           and political times. In particular, he appreciates
construction of rural housing. The company also             the knowledge he has gained – and can continue
works jointly with local health centres, conducting         imparting – from his South American headquarters.
campaigns such as Dengue Prevention and for the             “We do have a small but important niche in the global
prevention of other diseases, and is committed to           community,” notes Albrecht. “In our wood products
providing its products to local fire brigades, hospitals    business, for example, there is a growing demand
and schools.                                                for inputs coming primarily for
                                                            Asia. Here, Asia talks to South
Celulosa Argentina’s growth strategy focuses on             America without necessarily
value-added businesses, including tissue and                talking to North America.
hygiene products, renewable energy and in food-             From the perspective
related sectors. Optimally, the company will continue       of global growth, I find
acquiring forestry assets, thereby reducing its             it extremely valuable
dependence on third parties for its raw materials,          to interact with a
including fibre and eucalyptus wood.                        community that can
                                                            share these issues
As an Argentina-based businessperson, Chairman              together.”
Albrecht has found value in interacting with

                              Celulosa Argentina

                              Industry Sector: Pulp and Paper
                              Location: Buenos Aires, Argentina

  Douglas Albrecht

                                                           Global Growth Companies    I   World Economic Forum   I   13
     Global Growth Company Success Stories

     The Ringing Sound of Success

                              he United Arab Emirates (UAE) has       services to individuals, homes and businesses,
                              one of the most modern, sophisticated   and carrier services to businesses. It has also
                              telecommunications sectors in the       brought to the market new services including
                              world. It’s a fast-growing one, too.    its Pay by the Second billing system, Mobile
                    According to the Global Information Technology    TV, mobile payments, and du’s “Wow” recharge
                    Report published by the World Economic Forum      card, which offers subscribers the choice among
                    in 2009, the UAE is the most wired among Arab     “more credit”, “more international” and “more
                    nations, with soaring broadband subscriptions     time”. Not least, du brings scalable media
                    accounting for more than half of all Internet     technology platforms and telecommunication
                    connections.                                      solutions to the broadcast community through
                                                                      its world-class teleport (Samacon) and Master
                    With over 2,000 employees, a mobile subscriber    Control Room (MCR) facilities.
                    base of over 4.7 million customers across the
                    United Arab Emirates and over 20% growth          The company continues to innovate and
                    thus far in 2011, du is the second largest        expand. In 2009, du and UK giant Vodafone
                    mobile operator in the UAE, as well as the        Group signed an exclusive non-equity strategic
                    telecommunications operator of choice for a       partnership to help both companies better
                    large majority of new subscribers.                serve the needs of their respective customers
                                                                      in the UAE. As a result, du now has exclusive
                    Consumers can buy the company’s products          access to Vodafone’s range of products,
                    and services either online or through du’s        devices and services in the UAE, and will be
                    retail network, to date including 41 shops        able to draw on Vodafone’s experience in supply
                    and over 3000 authorized dealers, including       chain management, technology development
                    the company’s Abu Dhabi and Dubai flagship        and acquisition of enterprise customers from
                    stores. Among du’s offerings: fixed and mobile    multinational companies, as well as improved
                    telephony; broadband connectivity; and IPTV       inter-working between networks across the

14   I   World Economic Forum   I   Global Growth Companies
67 countries where Vodafone operates. In return,          copying machines. Not least, in a hot, sunny part
Vodafone’s customers will enjoy extensive coverage        of the world, du has implemented its first-ever solar
across the UAE, and du’s state-of-the-                                    power project on Sir Bu Nair Island,
art 3G network. In 2008, the company                                      which will provide mobile coverage
also joined with Microsoft to organize        Paralleling its             for the entire island using zero fossil
the “Imagine Cup” competition for
                                              fast growth, du is          fuel energy – meaning zero carbon
UAE college and university students, a                                    emissions. To improve its environmental
competition designed to spark students’
                                              also a champion             friendliness, the company plans to
creativity and innovation in developing       of the environment          implement additional power sites at
intelligent mobile apps on the themes         dedicated to                remote locations.
of social networking, lifestyle and           reducing technology
environment to serve a social cause.                                      Then there’s the Green du initiative,
                                              waste across the            aimed at improving the eco-friendliness
Paralleling its fast growth, du is also       UAE.                        of du’s base transceiver stations. du
a champion of the environment. For                                        has contracted with a leading German
the company, sustainability can be as elemental           company to implement a hybrid power system in
as printing double-sided paper to reduce waste;           their base transceiver sites. The new systems will
establishing a system-wide eco-friendly e-billing         be fully implemented in over 100 sites by the end of
system; providing reusable coffee and tea mugs            2011, reducing company-wide fuel consumption by
for employees; or, partnering with Hewlett-Packard        more than 50%.
to create the Planet Partners Program, dedicated
to reducing technology waste across the UAE by            du isn’t just a telecommunications company, but an
recycling the toner cartridges used in printers and       industry leader, whether locally or long-distance.


                             Industry Sector: Telecommunications
                             Location: Dubai, United Arab Emirates

  Osman Sultan
  Chief Executive Officer

                                                        Global Growth Companies      I   World Economic Forum   I   15
     Global Growth Company Success Stories

     Design for Living

                                       ne of the fascinating shared    Founded in 1991,                    the Palo Alto,
                                       challenges of being a           California-based IDEO          design firm is an
                                       member of the Global Growth     industry pioneer whose human-centred, design-
                                       Company Community,” says        based approach brings sustainable innovation to
                    IDEO Chief Executive Officer Tim Brown, “is the    organizations, business, governments, healthcare
                    recognition that, while we may be strong in our    providers and social sectors. Whether IDEO is
                    own countries, we are continually learning in      working on new products in the medical industry,
                    new, different markets. And, not least, that we    or working with healthcare giants like Mayo Clinic
                    also recognize that the era when companies         or Kaiser Permanente, or alongside government
                    were internally focused and controlled their own   agencies in Singapore and the US, the company
                    brands and services may be coming to an end.”      believes that the power of design – and design
                                                                       thinking, which combines technical possibility
                    The first mouse for Apple. The Palm V handheld     with sound business strategy around human-
                    device. Crest’s no-squeeze, stand-up toothpaste    centred needs – can help create new products,
                    tube. Bank of America’s Keep the Change            shape human behaviour, solve problems and
                    account service. Air New Zealand’s redesigned      create long-lasting, sustainable solutions. IDEO’s
                    economy class, not to mention the LifePort         mission, says Brown, is threefold: to understand
                    Kidney Transporter. Without the industry-shaping   what consumers really need; turn that need
                    innovations of design and consultancy firm         into a compelling product or experience for the
                    IDEO, the world might still be pressing random,    consumer and the company; and then learn
                    crooked buttons, or lugging around a clattering    how to create and scale that same product or
                    50-pound digital calendar in a backpack.           experience.

16   I   World Economic Forum   I   Global Growth Companies
Whether it’s a retailer who seeks IDEO’s help             IDEO is consistently ranked by industry experts as
in reaching a new demographic, a smartphone               among the top 25 most innovative firms in the world.
manufacturer seeking to reinvent the gaming               Today, its client list ranges from Hewlett Packard to
experience, a hospital eager to improve the overall       AT&T, Vodafone, Samsung and BBVA, with more
quality of its patient care, or a government looking      than half its overall revenue coming from European,
for ways to increase healthy eating                                   Asian and overseas clients.
in children, IDEO assembles a
team made up of industry experts           "More and more             IDEO Chief Executive Officer Brown is
who observe and assess the                 global companies           most excited by the potential of fostering
consumer experience. Business                                         genuine social innovation by addressing
                                           realize that
designers, industrial designers,                                      such global issues as poverty, nutrition,
engineers, psychologists, social           innovation is a            health, water and sanitation, economic
scientists, marketers and other IDEO practical, scalable,             empowerment, access to financial services,
multidisciplinary experts partner with     sustainable way of         and gender equity, in both the private and
clients to tackle systemic challenges,
                                           doing business – and public sectors. How will medical device
ultimately formulating working                                        companies, insurance companies, financial
models and working prototypes
                                           in a volatile world,       service providers and non-profits of the
using the methods and tools of             they are making            future tackle these concerns?
IDEO’s design-thinking approach.           innovation a core
The result: new companies,                 competency."               Brown reserves his greatest excitement for
business models, brands, products,                                    the Asian markets, as he considers Asia
services, spaces and interactive experiences, as well     the epicentre of exciting, innovative ideas, industries,
as newfound company-wide cultures and internal            and markets. Even better, with its new locations in
systems and processes that allow for ongoing,             Singapore, Tokyo and Mumbai as well as its office
sustainable innovation.                                   in Shanghai, IDEO as poised for continuing success
                                                          and growth. Says Brown: “More and more global
By inspiring some of the biggest companies in the         companies realize that innovation is a practical,
world to transform their organizations by focusing        scalable, sustainable way of doing business – and
on consumers, IDEO has become far more than a             in a volatile world, they are making innovation a core
design company. Today, along with design firms, it        competency.”
competes with management consulting companies
such as McKinsey, The Boston Consulting Group             In hindsight, you might say that industry-shaper IDEO
and Bain. IDEO invites its clients into the innovation    led the way.
process by encouraging them to identify consumer
needs, use collaboration as a means to generate
growth, and bring new ideas to market.


                              Industry Sector: Professional Services (Consulting/Market Research)
                              Location: Palo Alto, USA

  Tim Brown
  Chief Executive Officer

                                                         Global Growth Companies      I   World Economic Forum   I   17
     Global Growth Company Success Stories

     Dark Victory

                             llycaffè seeks nothing less than perfection.       “illycaffè is a stakeholder company founded on
                             Founded in 1935 and headquartered                  ethics, whose goal is the improvement of quality
                             in Trieste, Italy, the food and beverage           of life,” Andrea Illy says. This philosophy explains
                             corporation markets its signature                  why the company’s commitment to continuously
                    espresso blend in 140 countries worldwide,                  exceeding environmental, social and economic
                    employs 800 people, and serves more than                    sustainability standards on all rungs of the value
                    50,000 high-end restaurants and Italian-style               chain has made illycaffè an industry-shaping
                    coffee bars on five continents.                                         leader. “Coffee that is consumed
                    (Lest anyone forget, company                                            mainly in the western countries comes
                    founder Francesco Illy invented           By guaranteeing a             from the south of the world, from
                    the “illetta”, the first coffee                                         countries that often are poor and
                                                              profit to its growers
                    machine with automatic water                                            underdeveloped,” says Anna Adriani,
                    dosing and a compressed air               in every transaction, illycaffè’s Global Public Relations and
                    jet – which is the predecessor            illycaffè has created Corporate Responsibility Director. “So
                    of today’s espresso machines).            a full-fledged,               it is important that the company deals
                                                              industry-leading              with these countries in a sustainable,
                    Led by Chairman and Chief                                               ethical way.”
                    Executive Officer, Andrea Illy,
                                                              system that instils a
                    a third-generation member of              widespread culture            illycaffè has long considered “quality”
                    the founding family, today’s              of quality and                and “sustainability” to be inseparable
                    illycaffè takes a holistic                sustainability from           – and contagious. Over the years, the
                    approach towards its industry,                                          company has made huge investments
                                                              the boardroom to the in improving its environmental impact
                    focusing on all factors that go
                    into creating a singular cup              plantation.                   management. Example: in 2003, its
                    of espresso: the production,                                            central Trieste facility rolled out a new
                    the relationship with growers, the blend, the               roasting unit, whose maximum fume emission
                    machines, the preparation, the training of                  rate was over 1/20th lower than the legal limit –
                    specialized bar staff, and even the design of the           an initiative that significantly reduced its energy
                                     bars and venues where consumers            consumption and increased its production
                                       enjoy a great cup of coffee. This        capacity.
                                               360-degree approach
                                                  works: in 2010,?the           From the coffee farmers in South and Central
                                                   illycaffè group, with its    America, India and Africa, all the way to the
                                                   11 direct and indirect       espresso-sipping consumer, illycaffè’s tireless
                                                  subsidiaries, achieved        search for quality creates a virtuous cycle that
                                              consolidated sales of € 305       creates value for all its stakeholders. It buys
                                        million with 3.5% net profits, with     the highest-quality beans directly from farmers,
                                     exports representing 56% of total          paying them higher prices than international
                                              sales.                            market standards in order to reward quality

18   I   World Economic Forum   I   Global Growth Companies
products and foster ongoing improvement. In                      industry-leading system that instils a widespread
conjunction with the Oxford University Centre                    culture of quality and sustainability from the
for the Environment, illycaffè undertook in 2008                 boardroom to the plantation. In short, everyone wins.
a three-year research project to develop a more
sustainable agricultural                                                                        The food and beverage
production system, and                                                                          industry has taken
identify a model that                                                                           notice, too. While
could be extended to                                                                            global authorities
other crop production                                                                           have recognized and
systems. The result?                                                                            honoured illycaffè
A series of pioneering                                                                          over the years for
growing, production                                                                             its sustainability (the
and processing                                                                                  company’s awards
techniques, including                                                                           include the UNI EN
the ecologically-sound                                                                          ISO 14001 standard,
“semi-washed” method                                                                            certifying the company’s
that illycaffè suppliers                                                                        environmental
use during post-harvest                                                                         management system;
processing, which                                                                               and the EMAS
preserves up to 90%                                                                             certification strictly
of the water that other                                                                         governing emissions,
methods consume, while                                                                          energy consumption
also reducing potentially                                                                       and waste recycling),
polluting waste water.                                                                          few distinctions made
                                                                                                illycaffè prouder than
But producing one                                                                               the distinction it
blend across the world                                                                          received earlier this year.
means an increased                                                                              In March 2011, illycaffè
investment in logistics. How does illycaffè offset the           was the first-ever company to receive the rigorous
cost disadvantages, and balance short-term financial             Det Norske Veritas (DNV) Responsible Supply Chain
goals with long-term green impact? “Again, for us,               Process Certification, attesting to the company’s
quality without sustainability cannot exist,” says               longstanding sustainable approach to production,
Adriana. “This is our business model, our mission,               one that recognizes everyone from the board of
our passion, and our obsession. ‘Short-term’ is not              directors to management and operational personnel.
part of illycaffè’s vocabulary. We are a stakeholder
company whose historic and long-term goal is to                  illycaffè’s long-term success shows that creating a
improve the quality of life of everyone with whom we             business on a foundation of ethical environmental,
interact: customers, clients, employees, suppliers               social and economic sustainability can create an
and communities.”                                                enviable – and duplicable – model of caffeinated
                                                                 growth, profits and pride.
By guaranteeing a profit to its growers in every
transaction, illycaffè has created a full-fledged,


                                     Industry Sector: Agriculture, Food & Beverage
                                     Location: Trieste, Italy

  Andrea Illy
  Chairman and Chief Executive Officer

                                                                Global Growth Companies      I   World Economic Forum     I   19
     Global Growth Company Success Stories

     Indika Energy
     Staying Power

                             t can be challenging for a business            and construction services; mining contractor and
                             to succeed in Indonesia. Entrenched            services; coal transport and logistics services;
                             and traditional, the largest economy           and even a power generation project.
                             in South-East Asia is known for its
                    complicated regulations and occasionally long-          One major coup was the 2009 acquisition of PT
                    winded bureaucratic processes. Moreover, the            Petrosea Tbk, a multidisciplinary engineering,
                    republic was hit hard by the Asian                                      construction and contract mining
                    financial crisis of the late 1990s,                                     company with a high-achieving
                    when Indonesia’s economy shrank            The main driver              track record in Indonesia. The
                    by nearly 14%. But over the                of Indika Energy’s           purchase not only strengthened
                    past few years, according to M.                                         Indika Energy’s leadership in mining
                    Arsjad Rasjid P. Mangkuningrat,
                                                               moves: Strong                services, but also buttressed its
                    President Director and Co-Group            integration along            capacity to deliver total energy
                    Chief Executive Officer of Jakarta-        the whole energy             services, from acquiring mining
                    based PT Indika Energy Tbk, the            supply chain.                rights and feasibility studies, to
                    Indonesian business environment                                         mining operations, processing,
                    has mounted a gradual, steady                                           production and barging, and
                    economic recovery. Notes Mangkuningrat, a               transhipment and offtake – which is another way
                    World Economic Forum Young Global Leader of             of saying that the company, which currently has
                    2011: “The most important thing is that we are          more than 6,000 employees, became a fully
                    moving in the right direction.”                         integrated entity with strategic synergies in place
                                                                            to fuel its future growth, while leveraging Asia’s
                    Take the company currently led by                       rapidly growing demand for energy.
                    Mangkuningrat and his co-chief executive officer,
                    Wishnu Wardhana, as an example. Incorporated            The main driver of Indika Energy’s moves: Strong
                    in 2000, with roots in the energy sector spanning       integration along the whole energy supply
                                             as far back as 1973, Indika    chain. “We want to combine natural resources,
                                             Energy is Indonesia’s          services and infrastructure in a seamless way,”
                                             leading integrated energy      says Mangkuningrat, adding that, in the past,
                                             company, providing its         this has proven to result in group synergy and
                                             customers total energy         improved operating efficiency. Although coal is
                                             solutions in the areas         the core driver of Indika Energy, given the poor
                                             of energy resources,           state of infrastructure in Indonesia, logistics and
                                             energy services and            transportation are also vital components of the
                                             energy infrastructure. It      supply chain. Adds Mangkuningrat: “In mining,
                                             accomplishes this through      there are two main cost centres – mining services
                                             strategic investments in the   and logistics – and by having these businesses,
                                             areas of coal production;      we are converting our costs into revenue on a
                                             engineering, procurement       consolidated basis.”

20   I   World Economic Forum   I   Global Growth Companies
Mangkuningrat believes that the company’s complete                Driven by its goal to become an integrated world-
understanding of the supply chain has given it an                 class energy player, the company will continue
enormous advantage over other coal companies.                     leveraging Indonesia’s national resources, taking
Take Cirebon Electric Power as an example. Cirebon                advantage of the increasing demand for energy,
not only buys the group’s low-calorific coal, but                 integrating its energy platforms with operational
also ensures steady income for the group whenever                 efficiency, maximizing production, and increasing
commodity prices fluctuate. Says Mangkuningrat:                   partnerships within the energy sector.
“This way, our financial risks are well-managed
and, on the aspirational side, we have synergy and                Final words? “Of course, like every business, we face
security.”                                                        a lot of challenges,” says Mangkuningrat. “But good
                                                                  corporate governance is transforming the Indonesian
Unlike most Asian companies, Indika Energy has                    business environment. Has it reached 100% yet? No,
a distinctive dual Chief Executive Officer structure.             but we are getting there. The fundamental issues we
According to Mangkuningrat, it is among the factors               face are those faced by corporations everywhere:
that makes the company unique, along with its                     globalization, competition and a pressing need for
strategy. “Indonesia has abundant natural resources,              transparency. The best part is, we are increasingly
political stability, strong macroeconomic policy and              primed to compete against ourselves.”
a demographic bonus of a large, young population.
Equally important, we have a young and very
dynamic leadership team too,” he emphasizes.

                                                               Indika Energy

                                                               Industry Sector: Energy
                                                               Location: Jakarta, Indonesia

  M. Arsjad Rasjid P.            Wishnu Wardhana
  Mangkuningrat                  Vice-President and Co-Chief
  President Director, Co-Chief   Executive Officer
  Executive Officer

                                                                 Global Growth Companies    I   World Economic Forum   I   21
     Global Growth Company Success Stories

     Karuturi Global
     Stemming World Hunger

                              t sounds at first like a fever dream: roses,    website, www.rosebazaar.
                              acres upon acres of them, growing in            com, the only flower-auction portal
                              Ethiopian and Kenyan greenhouses,               in India and South-East Asia, is the
                              against a backdrop of richly tilled land.       culmination of Karuturi Global’s efforts to develop
                    It’s even more surprising to discover that an             a real-time auction engine for agro commodities
                    Indian corporation, Karuturi Global,                                     and other perishable goods. In
                    is responsible for the planting,                                         addition, Karuturi Global’s highly
                    cultivation, storage, export, and            Investing in                profitable and fast-growing IT
                    distribution of roughly 555 million          agriculture is              business offers e-commerce
                    stems annually across Europe, the                                        solutions to large MNCs and
                                                                 among the best ways medium-sized companies around
                    US, the Middle East, Australia and
                    Japan.                                       not just to keep a          Bangalore dealing with perishable
                                                                 reliable lid on supply goods and commodities, paper
                    Karuturi Global is the world leader          shortages, but also         industries, workflow automation
                    in the production of cut roses with                                      and telecommunication, and
                                                                 to boost African and
                    an 8% share of the floriculture                                          it recently expanded into the
                    market that industry experts predict         global agriculture.         consumer broadband market.
                    will rise to 13% as the corporation
                    expands its African base of operations. But               But Karuturi Global isn’t merely a multinational
                    that’s just one of its businesses. Back home in           Indian agriculture products company. The
                    Bangalore, the company is engaged in the bulk             company is a genuine change agent for global
                    processing, bottling, and export of gherkins and          growth, prosperity, and cultural and economic
                    other vegetables. The company’s e-commerce                transformation.

22   I   World Economic Forum   I   Global Growth Companies
Among the company’s stated missions is to do              is among the best ways not just to keep a reliable lid
whatever it can to help alleviate worldwide and           on supply shortages, but also to boost African and
African food shortages. Towards this end, Karuturi        global agriculture.
Global was among the very first foreign firms to
acquire land tracts from the Ethiopian and Kenyan         Karuturi Global is also committed to sustainability.
governments – to date, more than 300,000 hectares         The company uses indigenous greenhouses,
of land – to grow and produce maize, vegetables,          rainwater harvesting, environmentally-friendly
grains, corn, palm oil and sugar cane. By April 2013,     fertilizers, and hydroponic cultivation. Devoted to
Karuturi Global will have developed one-third of          favourably influencing the lives of African workers and
its land-leased 300,000-hectare plot in Gambella,         their families, Karuturi Global donates and distributes
Western Ethiopia, with the entire farm ready for          clothing, has contributed US$ 75,000 towards one
planting by the spring of 2015. Even better, despite      township’s drinking water supply, provides free food
water supplies being copious in Gambella, Karuturi        and healthcare services to non-employed locals, as
Global plans to construct its own irrigation and          well as infrastructure to local police departments, and
energy infrastructure, rather than depend on an           even manages a Kenyan football club. Alongside its
overtaxed government.                                     social welfare and community development initiatives,
                                                          the company has provided schools, housing and
The question remains: Why Africa? For agro-based          transportation facilities to its 3,000-strong workforce
corporations, the continent is opportunity-rich. The      across Kenya and Ethiopia.
political and macroeconomic systems are stable.
Land, labour and export prices are relatively low. And    For the world and its fragile food supply, Karuturi
in a world facing present-day and future food crises,     Global hopes that everything will ultimately come up
Karuturi Global believes that investing in agriculture    roses.

                             Karuturi Global

                             Industry Sector: Agriculture, Food & Beverage
                             Location: Bangalore, India

  Sai Ramakrishna Karuturi
  Managing Director

                                                         Global Growth Companies     I   World Economic Forum      I   23
     Global Growth Company Success Stories

     Kokusai Kogyo Group (KKG)
     Behind Green Eyes and Green Vision

                                     hat does Japan – and the rest of        from its distinctive “perspective from the sky.”
                                     the world – look like from above?       But in response to the demands of an
                                     Can an eagle-eyed                                     environmental and energy age
                                     perspective help                                      accompanied by climate change, a
                    global society and governments                                         spate of natural disasters and rapid
                    worldwide grow safe, secure,
                                                              KKG uses aerial              IT evolution, KKG is pioneering a
                    community-oriented infrastructures photography and                     wholly new course. Using its cutting-
                    that put the environment, and             high-resolution              edge data capturing technologies to
                    human beings, first?                      satellite to adapt           acquire a wide range of topological,
                                                                                           geological and oceanographic
                                                              its findings to help
                    One company strongly believes                                          data, KKG has re-engineered
                    the answer is yes. Since 1947,            prevent, or mitigate, its geographical and geospatial
                    publicly listed aerial-surveying          future environmental information business into a “green
                    specialist Kokusai Kogyo Group            emergencies across           infrastructure” business, with the
                    (KKG) has been measuring
                                                              the globe.                   goal of creating a low-carbon,
                    everything from the continental                                        disaster-resilient and, not least,
                    shelf to outer space. In the 60-                                       people-friendly society.
                    plus years since its founding, KKG has come up
                    with a wide variety of solutions, serving areas          Under the leadership of its dynamic Chief
                    ranging from city planning, disaster prevention          Executive Officer, Sandra Wu, KKG has
                    and protection to environmental improvements,            rededicated itself to developing and managing
                                                                                                      green infrastructures on a
                                                                                                      global scale, including solar
                                                                                                      photovoltaic power plants
                                                                                                      in Japan and Europe. “We
                                                                                                      think it is the future,” says
                                                                                                      Wu. KKG wants to do
                                                                                                      more than simply maintain
                                                                                                      and/or preserve the global
                                                                                                      environment; it wants to
                                                                                                      change it. Accordingly,
                                                                                                      KKG has reorganized its
                                                                                                      core businesses into three
                                                                                                      synergistic segments. The
                                                                                                      Geospatial Consulting
                                                                                                      business uses cutting-edge
                                                                                                      technologies to support
                                                                                                      infrastructure development
                                                                                                      and protect society from

24   I   World Economic Forum   I   Global Growth Companies
natural disasters and environmental issues. From       on disaster relief to the quake-hit area, KKG used
technical design to operation and management, the      aerial photography and high-resolution satellite
second segment, Green Energy, leverages KKG’s          images, tsunami disaster simulations, and analysis
expertise in renewable energy to develop, operate      of geological surveys covering active faults and other
and manage solar photovoltaic power facilities,        hazard sources. An equally essential company goal:
as well as to provide customized                                   To adapt its findings to help prevent, or
renewable energy solutions to local                                mitigate, future environmental emergencies
communities. Finally, KKG’s Green        "The private sector       across the globe. This past spring, Wu
Property business is responsible                                   joined more than 2,600 participants from
                                         and our society rely
for private and public property and                                168 countries in the United Nation’s Global
construction management with             on each other – and Platform for Disaster Risk Reduction
solutions for energy preservation        we know we have to in Geneva. As the only private sector
and promoting use of renewable           build together with       panellist among ministers and leaders of
energies, using its patented                                       international NGOs, Wu drew widespread
                                         the society."
geospatial technology and green                                    attention and acclaim for arguing on
energy experience and expertise.                                   behalf of what the private sector can bring
                                                       to national and local-level disaster risk reduction –
As it transitions to a future “Green Community”,       namely expertise, experience and highly practical
KKG is today engaged in global environment-related     solutions.
projects in more than 100 countries and developing
renewable energy power plants across the globe.        Actively involved in the World Economic Forum, and
KKG plans on leveraging its track record in Europe     one of the key players within the Forum’s Disaster
and Japan as a springboard for future expansion into   Risk Partnership initiative, the experienced, Chinese-
Asia and other countries. “Our target has never been   born Wu is one of the first Asian women to be named
just Japan,” says Wu. “Whatever we do, we can          to the leadership of a Japanese company, a listed
introduce the Japanese experience to the rest of the   one with more than 60 years history. While Wu avoids
world.”                                                using words like “vision” or “mission,” she and her
                                                       company are both bursting with plans for the future.
KKG is also using its broad-based experience to help
the world avert future environmental disasters. In the “As far as renewable energy is concerned, this is an
wake of the Tohoku earthquake and tsunami, KKG         important, even crucial, time for KKG,” says Wu. “We
set up an immediate response centre to provide up-     want to make a contribution to society. The private
to-the-moment information to the central and local     sector and our society rely on each other – and we
governments. Shouldering the cost, and focusing        know we have to build together with the society.”

                                      Kokusai Kogyo Group (KKG)

                                      Industry Sector: Infrastructure & Urban Development
                                      Location: Tokyo, Japan

  Sandra Wu Wen-Hsiu
  President and Chief Executive Officer

                                                               Global Growth Companies      I   World Economic Forum   I   25
     Global Growth Company Success Stories

     KPIT Cummins Infosystems
     Making a Difference 2.0

                              he most dynamic ideas sometimes               by over 35% and reduces greenhouse gas
                              spring forth at the least opportune           emissions by over 30%. Designed to operate
                              times.                                        in everyday urban traffic, Revolo is the only
                                                                            technology in the world that can transform a gas-
                    In 2008, a KPIT Cummins engineer found                  guzzling passenger car into an environmentally
                    himself trapped in Mumbai rush hour traffic.            mindful, fuel-efficient, high-performance hybrid,
                    Gazing out the window of his car                                     without interfering with the original
                    at the carbon emissions choking                                      equipment manufacturer (OEM)
                    the skies, he wondered: Could        "We believe       that the transmission configuration.
                    KPIT Cummins Infosystems,            world of automobiles
                    a leading product engineering                                        None of which should come as any
                                                         is at a major
                    and IT consulting company with                                       surprise to the industry-shaping
                    a longstanding focus on the          paradigm shift.                 KPIT Cummins, which dubs itself
                    automotive, manufacturing and        With the Revolo,                an engineer of “a smart and green
                    energy & utilities industries, come  we were focused                 future, who drives sustainable
                    up with an innovative solution to
                                                         on coming up                    evolution through co-innovation”.
                    reduce carbon emissions without                                      With its technology and domain
                    drivers having to trade in their
                                                         with an affordable              prowess and approximately 6,500
                    automobiles for a new hybrid?        and retrofittable               employees, and driven by its
                                                             solution."                  philosophy of “green growth”, KPIT
                    Two years later, in collaboration                                    Cummins partners with over 150
                    with Bharat Forge, Pune, India-based KPIT              global manufacturing corporations, including
                    Cummins announced Revolo, an industry-                 original equipment manufacturers and Tier
                    shaping plug-in parallel hybrid solution for           1 companies. Through its industry-shaping
                    automobiles. In only four to six hours (the time       expertise in architecting simple, dependable,
                    it takes to install the technology), car owners        futuristic engineering and enterprise solutions,
                    can add the Revolo system to their engines, at         the company helps its customers bring advanced
                    around one-fifth the price of currently available      products faster to their target markets. Today,
                    hybrid automotive options, no matter what the          KPIT Cummins has offices in 11 countries,
                    age of the vehicle, thereby saving on gasoline         including China, the United Kingdom, India,
                    and reducing CO2 emissions. So far, in pre-            France, South Africa, Germany, Japan, South
                                        compliance tests the company       Korea and the US.
                                                 has conducted, KPIT
                                                      Cummins has          The Revolo is only the latest innovation for
                                                          found that       the company’s research and development
                                                            the Revolo     arm, the Center for Research in Engineering
                                                            technology     Sciences and Technology, or CREST for short.
                                                           improves        KPIT Cummins’ CREST team focuses on
                                                         fuel efficiency   building capabilities to enable KPIT Cummins

26   I   World Economic Forum   I   Global Growth Companies
to maintain its global leadership in selected niche        juncture, the number of old cars on the road will
technology areas – among them innovating break-            be greater than the new cars on the road. With the
through technologies in the areas of                                    Revolo, we were focused on coming
green energy, automotives and high-                                     up with an affordable and retrofittable
performance computing. Over the                                         solution.”
years, the company’s investments            Revolo is a
have paid off. KPIT Cummins has filed       technology that             Vehicles recharge their batteries through
over 35 patents, including 14 in the        can transform               standard external electricity sources –
fields of battery management, vehicle       a gas-guzzling              and are 80% cheaper when compared
safety and advanced driver assistance                                   to competing hybrid car kits. As part
systems. The company is currently
                                            passenger car into          of the KPIT Cummins-Bharat Forget
at work developing cutting edge             an environmentally          joint venture, the company will train
technologies in the areas of multi-         mindful, fuel-              technicians on how to install the Revolo
core processors, implementation of          efficient, high-            into vehicles. The company is currently
vision primitives that are required for                                 in conversation with numerous OEMs
                                            performance hybrid.
development of the Lane Departure                                       on offering Revolo as an OEM-fitted
Warning System, new technology for                                      solution. Revolo technology is on track to
data parallelization, vision management and the likes.     commence commercial production by 2013.

And, of course, there’s the Revolo. “We believe that           If automobiles are part of a “mobility continuum”,
the world of automobiles is at a major paradigm                in the words of Pandit, industry role model KPIT
shift,” says KPIT Cummins Chief Executive Officer              Cummins is steering the world towards a cleaner,
Ravi Pandit, “and that they must become cleaner,               more sustainable future.
safer and more sustainable.” He adds: “At every

                                    KPIT Cummins Infosystems

                                    Industry Sector: Information Technology (Automotive)
                                    Location: Pune, India

  Ravi Pandit
  Chairman and Group Chief Executive Officer

                                                              Global Growth Companies      I   World Economic Forum   I   27
     Global Growth Company Success Stories

     LCY Chemical Corp. (LCY)
     Chemical Reaction

                                        lobal Growth Company          We hope that by attending this forum, other
                                        Community members             members can learn about LCY’s uniqueness.”
                                        have the benefit of finding
                                        new opportunities and         The uniqueness of LCY is obvious to any
                    possible collaborations,” says Charles Wei        observer. Founded in 1915, the company has
                    Financial Department Vice President. “Not to      come a long way since its early origins as a
                    mention gaining advanced knowledge through        forest products manufacturer. Evolving over the
                    exchanging experiences across industries.         decades into a leading methanol derivatives
                                                                      business – as well as the largest solvent
                                                                      manufacturer in Taiwan – LCY is today a US$ 2
                                                                      billion corporation that develops products and
                                                                      services in solvents, plastic, rubber, electronic
                                                                      material and solar green energy, with applications
                                                                      related to human life and technology innovation.

                                                                      Among the company’s highlights: LCY was the
                                                                      first company to receive a licence to import
                                                                      petroleum after the deregulation of the Taiwanese
                                                                      petroleum market. It is the largest thermoplastic
                                                                      elastomer manufacturer in the world. It is the
                                                                      largest solvent manufacturer in Taiwan (as well as
                                                                      the sole producer of electronic graded IPA and
                                                                      Acetone in Taipei), and its revenues and profits
                                                                      have grown 25 times over the past 18 years.

                                                                      “We have established a multinational operation
                                                                      through organic growth, joint venture and
                                                                      acquisition,” says Charles Wei. “What makes
                                                                      us distinctive? Our vision, focus and drive. We
                                                                      have a well thought-out strategy, coupled with
                                                                      the focus of our core competency including

28   I   World Economic Forum   I   Global Growth Companies
operational excellence, EHS (environmental, health        several initiatives in the areas of renewable feedstock,
and safety) commitment, quality enhancement,              in order to reduce the consumption of petroleum.
and differentiated products and processes, not to         And through process innovation, LCY has made its
mention our drive to success.”                                        manufacturing process cleaner and more
                                                                      efficient, thereby sharply reducing energy
That drive to success is due in part
                                        "At LCY, we know              consumption.
to LCY’s chairman of the board, MIT
                                        that the competition
and Stanford-educated Lee Bowei,                                    Today, LCY has four factories in Taiwan,
a leading executive in the Asia-        is moving forward           another four in mainland China, one in
Pacific region, whose father, K. K.     fast, and that the          Qatar, and a 10th one in the US. And
Lee, founded the company. Under         only way to stay            the company will continue growing and
his guidance, and thanks to its         ahead of the game is innovating. “At LCY, we know that the
estimable safety and environmental      via technology and          competition is moving forward fast, and
record, LCY has made ongoing
                                        innovation."                that the only way to stay ahead of the
efforts towards sustainable                                         game is via technology and innovation.
development. Says Charles Wei: “We                                  Furthermore, we believe it’s imperative to
are responsible for our people and environment... In    have the right people, capability and strategy. Thanks
our group, we have a company producing polysilicon,     to our talented, motivated team, technological
which serves the solar energy market to decrease        capability, well-defined strategy, we have a great
our dependence on petroleum, and thus reduces           roadmap that will help us continue the growth of our
greenhouse gas emissions.” Moreover, LCY has            company.”

                             LCY Chemical Corp. (LCY)

                             Industry Sector: Chemicals (Fertilizers)
                             Location: Taipei, Taiwan, China

  Lee Bowei
  Chairman of the Board

                                                        Global Growth Companies      I   World Economic Forum    I   29
     Global Growth Company Success Stories

     Lynas Corporation Limited
     The Good Earth

                                 uestion: What do iPods, iPads,             Brazil and other countries are scrambling to meet
                                 smartphones, computer disc drives,         what experts forecast will be heightened global
                                 flat panel displays, lasers, hybrid        demands, in an environment of unpredictable
                                 cars, automotive                                        supplies, and attendant soaring
                    catalytic converters, wind turbines                                  prices (since the start of 2011, prices
                    and energy-efficient fluorescent         "Steel is the bread of of rare earth metals have more than
                    light bulbs have in common?
                                                             industry. Oil is the        quadrupled).
                    Answer: Each is in part or wholly
                    dependent on the presence
                                                             blood of industry.          The good news? Sydney, Australia-
                    of rare earth metals, a set of           Rare earths are the         based Lynas Corporation Limited,
                    17 chemically similar elements           vitamins."                  an ASX 100-listed company, is
                    embedded in the Earth’s crust                                        poised to provide the first significant
                    that are crucial to high-tech global manufacturing      new source of supply of rare earth metals to
                    and production.                                         global industries outside of China when it begins
                                                                            production in its new, state-of-the-art refinery in
                    China has long been the dominant supplier in            Malaysia by the end of 2011.
                    the specialty metals industry, mining and refining
                    over 90% of today’s worldwide rare earth metals         The foundation on which Lynas Corporation’s
                    market, despite having only 37% of proven               strategy is built is Mount Weld, in the under-
                    reserves. Today, Australia, the US, Canada, India,      populated outback of Western Australia,

30   I   World Economic Forum   I   Global Growth Companies
renowned as the richest known deposit of rare earth       protests from
metals in the world, and where a rare earth metals        a segment
concentration plant has already begun operation.          of the local
Nearly 2,500 miles away, close to the Malaysian           Malaysian
industrial port of Kuantan, Lynas Corporation is          community,
completing construction of one of the world’s largest     which led to the
refineries for rare earth metals – the US$ 230 million,   company strengthening technical
state-of-the-art Lynas Advanced Materials Plant           and safety measures in the
(LAMP). It is the first rare earth metals concentrate     plant, the new Lynas Corporation
processing plant constructed outside                                    refinery boasts state-of-
China in almost three decades.                                          the-art pollution control equipment and
Upon completion, Lynas Corporation                                      radiation sensors, including roughly 12
expects the refinery to be able to meet      "As far as our             acres of impermeable storage pools
almost a third of the world’s demand         personal computers that will contain the by-products with
for rare earth metals, not counting          are concerned, the         very low levels of naturally occurring
the Chinese market. Not least, it will                                  radioactivity until disposal or recycling
                                             world has become           in concrete products or road-base.
have created a stable, fully integrated
source of rare earth metals from mine        conditioned to size        More to the point, Lynas Corporation is
through to market, along the way             and colour – all of        dedicated to transparent engagement
highlighting Lynas Corporation as an         which require rare         with both community and governmental
industry-shaping leader within the                                      regulators. “If we are about a stable,
mining industry.                                                        sustainable future,” says Curtis, “our own
                                                                        environmental footprint must be to the
Lynas Corporation Executive Chairman Nicholas             highest available standards. We don’t want to export
Curtis notes that contemporary social trends –            pollution.”
including digital convergence, the worldwide desire
for smaller, lighter, faster products, and widespread     Nor is Lynas Corporation pausing for breath.
environmental concerns – will only increase in            Recently, the company announced a joint venture
the future. “As far as our personal computers are         with Siemens that will specialize in the production of
concerned, the world has become conditioned to            high-powered rare earth magnets used in energy-
size and colour – all of which require rare earths,”      efficient engines and wind turbines. But whether
says Curtis. Regarding the use of rare earth metals       Lynas Corporation is providing raw materials for the
in hybrid cars, catalytic converters, wind turbines,      creation and production of hybrid cars or energy-
energy-efficient light bulbs and other ongoing societal   efficient light bulbs, the company sees itself less
currents, he adds, “No political system is going to       as a mining company and more as a provider and
move backwards on emissions control. No one is            industry-shaping leader of sustainability globally,
going to say, “Let’s be less energy-efficient.”           while maintaining the highest possible environmental
                                                          standards. To this end, Curtis quotes an aphorism he
To this end, backed by its stated environmental           borrowed from a Japanese colleague that he believes
promise of Zero Harm, Lynas Corporation is poised         cogently sums up Lynas Corporation’s vision and
to redouble its transformative practices of leading       reach: “Steel is the bread of industry. Oil is the blood
the way towards a stable, sustainable future. Despite     of industry. Rare earths are the vitamins.”

                              Lynas Corporation Limited

                              Industry Sector: Mining & Metals (Rare Earths)
                              Location: Sydney, Australia

  Nicholas A. Curtis
  Executive Chairman

                                                         Global Growth Companies      I   World Economic Forum   I   31
     Global Growth Company Success Stories

     MB Holding Company
     Exploration and Production

                              irst established in Oman in 1982 as        With its 6,500 employees from 51 countries,
                              MB Trading, subsidiary company MB          family-owned MB Holding comprises four
                              Petroleum Services grew swiftly into one   main businesses. The strategically located MB
                              of the largest, fastest-growing oilfield   Petroleum services provides quality drilling and
                    services companies in the Middle East, with          integrated well services, and is today one of the
                    operations and subsidiaries in over 20 countries.    most successful global oilfield service providers
                    Thanks in no small part to its commitment to the     in the region. As a “one-stop-shop” for oilfield
                    highest possible health, safety and environmental    services and solutions, MB Petroleum has drilled
                    protection standards, today Oman-based MB            and serviced over 10,000 oil, gas and geothermal
                    Holding Company has spread its business to           wells. Petrogas E&P is one of the fastest-
                    include exploration and production of oil and gas,   growing exploration and production companies
                    investments, engineering, manufacturing and          in the region. It is the holding company for MB
                    trading, and mining and processing of minerals.      Holding’s oil exploration and production interests
                                                                         in Oman, India and Egypt. In only 10 years, the
                    Founder and Chairman Mohammed Al Barwani             company has grown its oil production from a few
                    credits the success of MB Holding to “out-of-        thousand barrels of oil per day (bopd) to more
                    the-box thinking – and the very best people.”        than 50,000 bopd gross.
                    He adds: “People always think of countries such
                    as Germany as the chief exporter of technology       Subsidiary Mawarid Mining is a successful mining
                    and services. Yet, we are an Omani company           company in Oman. The company’s copper
                    that operates in Germany, China, Australia, New      business operates several open pit copper mines
                    Zealand and elsewhere, and today competes on         and also processes ore at its copper concentrate
                    the global stage.”                                   facility in Oman. With strong in-house technical

32   I   World Economic Forum   I   Global Growth Companies
capacity and expertise in exploration, drilling, project      waste disposal, careful chemical handling and site
evaluation, mine planning, mining and processing,             restoration at the conclusion of activities. Over the
the company is well positioned to rapidly assimilate          years, the company has set up four environmental
new projects and opportunities. Mawarid Mining                target areas: waste minimization and management,
plans to aggressively expand its project portfolio on         pollution prevention, resource conservation and
the international stage. Finally, United Engineering          energy efficiency. Subsidiary United Engineering
Services is one of the leading oil field services             Services alleviates its carbon footprint by developing
companies in Oman, with customers including                   innovating methods to improve energy efficiency.
all major oil and gas companies in
Oman, from PDO to Halliburton and                                        Despite MB Holding’s global reach and
Schlumberger Weatherfold.                     "Today, even  to           success, Barwani notes, “We are still
                                                                         very much a family business. My wife and
As well as being an industry leader and
                                               grow in your own          I started this company and our children
a model for family-owned businesses,           country, you need         have joined in, and our employees reflect
MB Holding is unusual within its               to be world-class.        that family-owned spirit.” Explaining the
industry for its financial transparency.       Even if you are a         company’s dominance on the worldwide
Notes Barwani: “Very few Middle                                          stage, he says simply: “Today, even to
                                               local company, your
Eastern or family companies would                                        grow in your own country, you need to
publish their financial information            competition will          be world-class. Success internationally
on their website or would be rated             always be global."        leads to better credibility in the domestic
by the agencies.” This transparency                                      market, leading to more acceptance
increased in 2010, when MB                                               and, eventually, growth. Furthermore,
Petroleum Services launched the first ever high-yield       even if you are a local company, your competition
bond issued by any family-owned company. “As we             will always be global.         As an analogy, these
grew internationally, it was difficult to find a bank that  days in any country, a             local restaurant will
would fund our business in, say, Indonesia or Papua         often be situated next                  door to, say, an
New Guinea,” says Barwani. “Going to the bond               international fast-food                      chain – and
market was an ideal way to bring MB Petroleum               the only way it can
Services to the capital markets.”                           compete is to be
                                                            more efficient than
MB Holding is also committed to high standards of           its competition.”
environmental protection and pollution prevention.
The company’s guiding motto: protect the
environment by being proactive rather than reactive.
To this end, MB Holding pre-plans and manages
its oilfield operation with an emphasis on regulated

                              MB Holding Company

                              Industry Sector: Energy (Oil)
                              Location: Muttrah, Oman

  Mohammed Al Barwani
  Founder and Chairman

                                                          Global Growth Companies        I   World Economic Forum      I   33
     Global Growth Company Success Stories

     M+W Group
     The Social Engineers

                               few months ago, the international            integrated solutions, the corporation generated a
                               engineering and construction                 2010 order intake of roughly 2.1 billion euros and
                               company M+W Group hit a new                  boasted revenues up 40% to nearly 1.8 billion
                               record within the photovoltaic sector.       euros (divided roughly among Asia, Europe, the
                    By accepting a contract for a new solar cell            Middle East, Africa and the Americas).
                    plant in Asia, the up-and-comer was the first
                    ever to exceed the 10-gigawatt mark for the           Privately owned by the Austrian Stumpf Group,
                    design and construction of photovoltaic plants.       the company supported many more “firsts” in
                    With a global market share of over 30%,               2010. By constructing a flat panel display plant in
                    photovoltaic is the second key industry (after        mainland China, for example, the Group played a
                    semiconductors) where M+W Group is fostering          critical role in expanding that industry beyond its
                    its world leadership in one of the                                     predominant Taiwanese market. In
                    world’s most dynamic industries.                                       the dynamically growing industry of
                                                                                           lithium-ion-battery manufacturing,
                    With its unique strategy of               "We should do                M+W Group was chosen as the
                    “entering at the peak of high-tech        whatever we could to high-tech partner to complete the
                    demand and innovation, and then           protect the climate,         first large-scale new manufacturing
                    progressively driving the economic                                     facility in Europe, and is today the
                                                              and also show that
                    upraise of that industry,” the                                         preferred partner for multiple other
                    Stuttgart, Germany-based M+W              it can be done in            car and battery manufacturers.
                    Group has built up a formidable           an economically
                    reputation as the leading global          feasible way."            Other markets on which the
                    engineering, construction and                                       company has set its sights?
                    project management company in                                       One focus is on medical devices
                    the fields of advanced technology facilities, life   and healthcare, a sector where the company
                    science and chemicals, energy and environment        is gaining significant momentum, especially
                    technologies, and various other high-tech            across South-East Asia. The company is also
                    infrastructure.                                      experiencing successful evolution in the field of
                                                                         carbon-neutral power generation – beyond its
                                     From concept development to         solar and biogas expertise, M+W Group was
                                     turnkey handover, M+W Group         recently awarded its first major order to realize
                                     now manages high-tech projects      a leading-edge waste-to-energy project in the
                                     up to 5 billion euros, ensuring     United Kingdom. And thanks to its strategic
                                     superior quality standards as       investment in Schmid Silicon Technology, M+W
                                     well as swift and cost-effective    Group now covers the entire photovoltaics added
                                     completion. With its more than      value chain, from sand to solar power plants.
                                     6,000 employees linking complex
                                     facility demands with process       Alongside that drive, social responsibility and
                                     and automation technologies to      sustainability have always been pillars of the

34   I   World Economic Forum   I   Global Growth Companies
company’s strategy. In the 1990s, long before               Xella, M+W Group is also a founding member of the
green thinking became trendy, the company built             corporate trust “2 Degrees – German Companies for
its Stuttgart headquarters to become a model for            Climate Protection”, whose common goal is to work
waste-reduction, energy efficiency and recycling.           with science and society towards implementable
“Back then, we decided we should set a benchmark            solutions for climate protection for the long term,
– that we should do whatever we could to protect            beyond day-to-day business.
the climate, and also show that it can be done in an
economically feasible way,” says M+W Group’s chief          In the future, the company plans to expand further
executive officer, Juergen Wild. “These initiatives only    into emerging regions and markets, especially
continued when our company became a forerunner              across Asia, the area of its greatest present-day
in the photovoltaic industry.” Then and now, M+W            growth. CEO Wild brings up another commitment
Group’s headquarters feature sustainable solutions          the company would like to explore in the future: “How
such as environmentally responsive materials and            M+W Group can best contribute to food security
technologies, daylighting terraces, green roofs,            programmes across the globe. Given our knowledge
gardens and energy management controls.                     about facility production sites in the nutrition market,
                                                            we could be a partner for the turnkey construction
M+W Group is an integral participant and founding           of these kinds of facilities.” Given M+W Group’s
shareholder in the Desertec Industrial Initiative, a        pioneering efforts in industry and social and climate
visionary cooperative effort that seeks to provide eco-     protection over the past two decades, one has
friendly, secure and affordable energy to a significant     little doubt the company will continue outpacing its
portion of the world’s population. And along with           competitors and reshaping its industry as well as all
Deutsche Bahn, EWE, Otto Group, PUMA and                    the industries it serves.

                              M+W Group

                              Industry Sector: Infrastructure & Urban Development
                              Location: Stuttgart, Germany

  Juergen Wild
  Chief Executive Officer

                                                           Global Growth Companies     I   World Economic Forum    I   35
     Global Growth Company Success Stories

     Value Ads

                             magine for a moment the local Australian     In contrast to the rules of traditional media
                             landscaper who turned a US$ 2,000            advertising, where a business bought ad space
                             investment into roughly 250 phone            in a newspaper or on the radio with no verifiable
                             solicitations from customers and 2,700       way of measuring whether or not it worked
                    website impressions. Or the New York City             outside word-of-mouth, ReachLocal’s founding
                    podiatrist who, for a budget of US$ 3,000,            innovation was its ability to measure real-time
                    ended up with 68,169 website impressions, 600         consumer engagement. “Local businesses
                    website visits, and nearly 100 new phone calls.       live and die by the phone call,” explains Zorik
                                                                                            Gordon, ReachLocal’s co-
                    In 2004, small and medium-sized                                         founder, president and chief
                    businesses (SMBs) were in a jam.                                        executive officer. “We asked
                                                               In contrast to the
                    The Internet was capturing a huge                                       ourselves: How can we track
                    percentage of ad space once                rules of traditional         the actual phone calls that
                    colonized by offline media, including      media advertising,           our technology platform was
                    print and radio spots. Search              ReachLocal’s                 delivering?” The answer:
                    engines and social networking were
                                                               founding innovation ReachLocal’s Reverse Proxy
                    evolving in scale and sophistication.                                   Technology, which permits the
                    Consumers of all ages were hunting
                                                               was its ability              company to track, and even
                    down products and services online.         to measure real-             record, customer interactions.
                    Businesses and advertisers – most of       time consumer                “That allowed us to come back
                    whom didn’t altogether understand          engagement.                  to our local businesses and
                    the Internet – weren’t sure what to do,                                 tell them precisely how many
                    or how, exactly, to do it. There were                                   phone calls they received,” says
                    practical issues, too; what doctor, dentist, florist, Gordon. “Delivering ROI and proving it to the
                    contractor or appliance retailer had the time and     local business is, and was, the foundation of our
                    sophistication to figure out how to best advertise    business.”
                                                                          ReachLocal’s locally-based Internet marketing
                                 This is when Woodland Hills,             consultants, or IMCs, evaluate the needs of
                                 California-based ReachLocal              a local business, then customize marketing
                                 jumped in with a transformative          campaigns based not only on those needs,
                                 idea: to bring together advertisers,     but also on pre-existing proprietary data about
                                 publishers and solutions onto a          other successful, similar ad campaigns. Is an
                    single proprietary technology platform. Then          SMB interested in devoting its budget to search
                    as now, the company’s role was to serve as            engine marketing? Display advertising? Social
                    an essential intermediary between small and           media? Banner ad design? Video production?
                    medium-sized bricks-and-mortar businesses and         Assisted chat servicing? What’s more, unlike
                    the fragmented world of the Internet.                 offline advertising mediums, a business can enjoy

36   I   World Economic Forum   I   Global Growth Companies
an ongoing personal relationship with its IMC while              standalone review Bizzy publishes fuels the site’s
gaining an ongoing education in reaching customers               recommendation engine, enabling consumers to
online.                                                          find the best places to eat, shop and play based on
                                                                 others with similar tastes. In 2011, ReachLocal also
Today, ReachLocal is a publicly traded corporation               expanded its suite of offerings by acquiring the daily-
on NASDAQ and headquartered in Woodland Hills,                   deal platform, DealOn, which will give the company a
California, with over 1,300 employees operating direct           centre-stage presence in the popular deal-of-the-day
sales offices in 54 cities across the US, Australia,             market with its product ReachDeals.
Canada, Germany and the United Kingdom. The
company is a Google Global Premiere Partner and,                 By continuously exercising its potential to disrupt
together with Google, will export its suite of industry-         the value chain, displace incumbents and rewrite the
changing technologies into additional world markets.             rules of its industry, ReachLocal has been ranked
                                                                 on numerous prestigious lists, including being
As the world goes more and more mobile – a “big                  recognized as among the most successful media
access disruption,” notes Gordon – ReachLocal is                 companies in the US as well as among the fastest-
prepared to confront increasing convergence with                 growing technology companies in North America.
the roll-out of Bizzy, a mobile app that lets customers          By exporting its reach to a worldwide stage, the
“check out” from the places they frequent, including             company’s membership in the Global Growth
restaurants, retailers and entertainment venues, while           Company Community can only enhance its compass,
uploading ratings, reviews and photographs. Every                range and influence.


                                      Industry Sector: Media, Entertainment & Information
                                      Location: Woodland Hills, USA

  Zorik Gordon
  President and Chief Executive Officer

                                                                Global Growth Companies     I   World Economic Forum   I   37
     Global Growth Company Success Stories

     Serum Institute of India
     A Shot of Hope

                               heir products have been used in            enormous numbers of vaccines and has added
                               140 countries across the globe. The        hepatitis-B, rabies and others to its list of
                               company has touched countless              products, it has simultaneously expanded its
                               millions of young lives; in                               philanthropic reach. Nowadays, the
                    fact, two out of three of the world’s                                company brings its products not
                    children have used one or more            A philanthropic            just to protect Indian children but
                    of their products. The company’s                                     also to millions of underprivileged
                                                              business model can
                    chairman and managing director,                                      children in developing markets
                    Cyrus Poonawalla, was quoted              maintain a healthy         across the world. Serum Institute of
                    once as saying that he reaches            bottom line while          India sells some 80% of its products
                    more children across the globe            providing coverage         to groups such as UNICEF, the
                    “than Coca-Cola or Pepsi could
                                                              and global reach to        World Health Organization (WHO)
                    ever hope to reach up to the age                                     and the Pan-American Health
                    of 10.” All thanks to a deceptively
                                                              untold millions of         Organization – and is the largest,
                    simple product: a vaccine.                customers.                 lowest cost, most reliable WHO
                                                                                         pre-qualified vaccine producer in
                    From its early days in 1966, when vaccines            the world for the measles and measles-rubella
                    were a luxury for Indian children, the mission of     combined vaccines, as well as for the diphtheria,
                    furthering the health of children in developing       pertussis, tetanus, and hepatitis-B combined
                    countries has been at the core of the Serum           vaccines.
                    Institute of Health’s business model. In the
                    years after its founding, the company began           Serum Institute of India
                    manufacturing abundant lower-cost, life-saving        also has a formidable
                    vaccines targeting tetanus, diphtheria, pertussis,    history of philanthropy.
                    measles, mumps and rubella – “for less than the       The company has
                    price of a cup of tea,” in Poonawalla’s words –
                    helping to eliminate India’s reliance on imported
                    medicine. Today, Pune, India-based global heath
                    and healthcare champion Serum Institute of India
                    is India’s number one biotech company, and the
                    fifth largest manufacturer of vaccines and other
                    immunobiologicals by volume in the world (behind
                    GlaxoSmithKline, Sano-Aventis, Merck and

                    The company’s dictum: Progress is not only
                    about how we grow. It is about how we make
                    a difference in the lives of others. As Serum
                    Institute of India continues to manufacture

38   I   World Economic Forum   I   Global Growth Companies
donated roughly 23 million doses of the measles-          company has already seen several million doses
rubella vaccine to countries such as Laos and             successfully used in the region, at less than 50 cents
Uzbekistan, while supplying nearly 20 million doses       a dose.
at a 50% discount to the Philippines
in conjunction with WHO/UNICEF.                                             The company’s ongoing success
Chairman Poonawalla has urged other          "Progress is not only proves that a philanthropic business
large pharmaceutical manufacturers
                                             about how we grow. model can maintain a healthy bottom
to follow the Institute’s “philanthropic                                    line while providing coverage and
pricing policy” on behalf of the world’s
                                             It is about how we             global reach to untold millions of
underprivileged children. What’s more,       make a difference in customers. As Poonawalla notes, if
over the last several years, the Serum       the lives of others."          companies were judged not on their
Institute of India has worked alongside                                     market cap but on the number of
partners to develop a new meningitis A vaccine to         people whose lives they positively affect, Serum
help redress outbreaks in the sub-Saharan region,         Institute of India would be among the biggest, most
one with the potential to provide users with long-        valuable businesses in the world. As things stand
lasting immunity. According to Poonawalla, the            today, it is still among the world’s most admired.

  Cyrus S. Poonawalla        Serum Institute of India
  Chairman and Managing
                             Industry Sector: Healthcare
  Adar C. Poonawalla
  Executive Director         Location: Pune, India

                                                        Global Growth Companies      I   World Economic Forum   I   39
     Global Growth Company Success Stories

     TAK Agro
     People-Fuelled Agriculture

                               s the most populous country in Africa        combined capacity of more than a million tons
                               – as well as the world’s eighth largest      annually, thus ensuring TAK Agro’s status as the
                               nation – Nigeria is fertile and abundant     single largest blender capacity in West Africa.
                               with natural resources. And with the         Yet, as the TAK Agro managing director Amritpal
                    help of recent reforms, the country’s history of        Singh Walia says, “The real innovation is wanting
                    corruption and unrest has given way to economic         to do something beneficial, and believing that
                    growth and optimism about the future.                   this is a way to succeed in this region.”

                    Among the nation’s leaders and champions is             Why fertilizer? For one thing, fertilizer increases
                    TAK Agro, a company that over the past decade           crop yields. Fertilizer promotes biodiversity.
                    has become a dominant force in the West                 Correctly applied, fertilizer can increase farmers’
                    African fertilizer industry. (TAK Agro’s products       disposable incomes while enhancing food
                    are so widely used that some parts of Nigeria           security. Not least, in a country marked by
                    colloquially refer to fertilizer as “TAK.”) Privately   widespread poverty, where roughly 65% of the
                    held TAK Agro is an agricultural conglomerate           population works within the agricultural sector,
                    that, from early on, has consistently innovated         the UN Development Programme estimates that
                    in every step of the agri input supply chain, from      every dollar that is invested in agriculture yields
                    fertilizer raw material imports and production to       two dollars in increased crops, leading to yet
                    irrigation systems. Today, the corporation owns         another three dollars in synergies within the non-
                    five fertilizer-blending plants in Nigeria, with a      agricultural sector.

40   I   World Economic Forum   I   Global Growth Companies
In a nation with a complex history, “the question was,        In an effort to buttress its position as the most
‘How do we go straight to the farmer and circumvent           dependable agricultural supplier in sub-Saharan
a public sector system that was open to abuse?’ We            Africa, TAK Agro will continue acquiring warehousing
had to use people power – which was a new thing               and logistics capacities, thereby permitting the
for many Nigerians,” recalls Walia.                           company to have a completely internalized, reliable
                                                              production chain – free from supply chain swings and
TAK Agro understood full well that to develop                 fluctuations. Moreover, the company has acquired a
alternatives, they first had to create                                        high-capacity phosphate fertilizer plant,
the private market by engaging and                                            which experts believe will play a critical
educating local farmers. Working                 By giving power              role in ensuring the region’s future
alongside NGOs, TAK Agro is                                                   prosperity, and is in line with TAK Agro’s
                                                 to local farmers,
establishing small model farms across                                         philosophy of impact investing and
the country, teaching farmers about the          TAK Agro helps to            valuing its company and actions via the
elements of tilling, seeding and growing, alleviate poverty                   triple bottom line approach – investing
and the benefit of optimally balanced            and to enhance               in people, the plant and profit.
soils. Understanding that among the
                                                 societal cohesion
key problems that farmers face include                                        TAK Agro has been a member of the
the costs of land clearing and a scarcity        and stability, which, GGC Community since 2011 and widely
of fertilizers and tractors, TAK Agro            ultimately, leads to         involved in the World Economic Forum
distributes the land among the local             agricultural self-           on Africa. The Nigeria-based directors
population, ensuring that small-scale            sufficiency.                 are responsible for TAK Agro’s local
farmers organize cooperatives to ensure                                       operations, while other international
competitive pricing for their products.                                       offices coordinate global procurement
As the company and the farmers clear and prepare              and operations. But as the management points out,
the land, TAK Agro provides water, tools and tractors.        the company’s success is much larger than fertilizer.
(The company owns TAK Tractors, Nigeria’s leading             “Our ultimate innovation is not in, say, creating a
tractor assembly and distribution company, with               one-kilogram bag of fertilizer. The real innovation
service centres scattered throughout the country.)            is taking a new approach to business and realizing
Down the line, local farmers can then engage in               that, by involving, educating and
TAK’s Farmer Market Support Program, selling their            investing in the local communities
produce directly to strategically located TAK Agro-           and end-users, thereby creating
owned storage facilities that, in turn, resell produce in     your market, you can develop a
bulk to commodity exchanges.                                  sustainable business. That is
                                                              our innovation.”
By giving power to local farmers, TAK Agro helps to
alleviate poverty and to enhance societal cohesion
and stability, which, ultimately, leads to agricultural
self-sufficiency. “Problems can only really be solved
by the private sector,” says Walia. “If the private
sector sorts itself out, it can fix the majority of global

  Amritpal Singh Walia         TAK Agro
  Managing Director

                               Industry Sector: Agriculture, Food & Beverage
                               Location: Lagos, Nigeria

                                                            Global Growth Companies       I   World Economic Forum     I   41
     Global Growth Company Success Stories

     All for One

                             t’s no coincidence that the word            With more than 26,000 active clients and 5,000
                             “TOTVS”, pronounced Totus, is derived       direct employees, plus 4,000 people at their
                             from the Latin word meaning everything      exclusive channel of distribution, in 23 countries
                             and everyone. With its 48.6% market         including Mexico, Argentina and Portugal, the
                    share in Brazil alone (34.5% across Latin            27-year-old Brazilian-based corporation is a
                    America), TOTVS is the largest application           leader in the development and sales of integrated
                    software company in emerging countries, and          business management software and related
                    the sixth largest company in application software    service provisions. TOTVS is extraordinarily
                    in the world. Across Brazil and Latin America, the   multifaceted, offering a wide portfolio of vertical
                    company serves just about everyone.                  solutions and value-added services such as
                                                                         consulting, infrastructure and business process
                    Says José Rogério Luiz, the company’s former         outsourcing (BPO) to industries as varied as
                    executive and financial vice-president and today     agribusiness, financial services, manufacturing,
                    a member of its Strategy Committee: “Latin           health, education, logistics, legal and retail.
                    America is the only region in the world where
                    SAP and Oracle are smaller than us, and where        “Our main focus – that is to say, some 80% of
                    TOTVS is the industry leader.” He adds that,         our sales – is on companies with sales between
                    “historically, people don’t pay as much attention    R$ 10 million to 2 billion,” says Luiz. Unlike most
                    as they should to smaller companies. But as          software companies, he adds, the offices of
                    TOTVS shows in Latin America, you can be a           TOTVS are located not just in the obvious cities
                    leader in a very competitive market.”                – Rio de Janeiro, São Paulo – but in small towns
                                                                         across Brazil and Latin America. “We are the
                                                                         McDonald’s of software,” Luiz says with a laugh.

                                                                         And TOTVS continues its remarkable evolution.
                                                                         From 2008 to 2010, it was the only corporation
                                                                         among the six biggest global players in
                                                                         application software to show two-digit organic
                                                                         growth, in this case an average annual growth
                                                                         of 21%. The company closed the first semester

42   I   World Economic Forum   I   Global Growth Companies
of 2011 with a net profit of 11.5% above IS10,                company’s goal: to offer an increasing array of
amounting to R$ 69.96 million, and with net revenues          personalized software solutions for all its markets,
of 16.9 percent above 1S10, amounting R$620.214               while remaining mindful of the specific challenges
million. (representing the company’s 22st consecutive         and legal compliances pertinent to each sector. As
trimester of growth).                                                       a result, customers large and small are
                                                                            freed up to focus entirely on their core
Committed to spearheading the                     TOTVS is the              businesses, while outsourcing all their
consolidation of its sector, TOTVS                largest application       operational procedures to TOTVS.
has acquired over the years several
                                                  software company in
critical competitors in Brazil, including                                   Another key factor contributing to
Logocenter, RM Sistemas and Datasul,              emerging countries,       TOTVS’s growth is its business model.
in the process significantly increasing           and the sixth             TOTVS is the only enterprise in its
both its portfolio and its vertical               largest company in        segment with 58 distribution channels
operations. “We provide technology,
                                                  application software      in Brazil, and an additional 16 across
distribution – and we pay attention                                         the international market. Thus, the
to a company’s legacy,” says Luiz.                in the world.             company is able to operate on three
“Companies are proud of their own                 Across Brazil and         business fronts pertaining to software:
processes, which is why we try to adapt           Latin America, the        licensing, service and maintenance.
our product to the client, and not the            company serves just       In sum, its business model is
other way around.”                                                          customized to help small and mid-sized
                                                  about everyone.           corporations – and emerging markets
TOTVS is also the only Latin American                                       in general – become more competitive
company with a proprietary technology platform that             around the world.
it uses while developing its software solutions – and
it possesses operational expertise in the following             If anyone disputes the increasing prominence of
10 segments: legal, financial services, distribution            Latin America and information technology in general,
and logistics, retail, education, construction and              they need only look ahead to the 2014 World Cup
projects, manufacturing, agribusiness, health and               and 2016 Olympics in Brazil. By succeeding in its
services. Within each segment, TOTVS has created                ongoing mission to equip the companies it serves
a discreet intelligence unit. Among other activities,           with a bridge to the corporate social network of the
these units are charged with elaborating operational            future, TOTVS shows it is more than poised for the
strategy, maintaining relationships with the market,            spotlight.
identifying strategic partnerships, and communicating
material facts and information to each sector. The


                                     Industry Sector: Information Technology
                                     Location: São Paulo, Brazil

  Laércio José de Lucena Cosentino
  Chairman and Chief Executive Officer

                                                               Global Growth Companies    I   World Economic Forum     I   43
     Global Growth Company Success Stories

     Trina Solar
     Sunny Skies

                              s the world’s first Global Growth          developing a sustainable global
                              Company Industry Shaper in the             PV industry.
                              solar sector recognized by the World
                              Economic Forum, Trina Solar Limited        The company’s performance has been
                    has a long, illustrious and ongoing history as a     exemplary. According to the 2011 global PV
                    solar photovoltaic (PV) pioneer.                     industry sustainable growth index report, Trina
                                                                         Solar ranked in first place worldwide. In a
                    An internationally recognized manufacturer of        separate survey, the Solar Scorecard 2011 world
                    mono- and multicrystalline photovoltaic modules,     ranking for PV Manufacturers’ Toxics Coalition,
                    publicly traded Trina Solar has morphed into         which measures product recycling, green job
                    an industry bellwether since its founding in         creation and corporate transparency, named
                    1997. Trina Solar’s high-quality PV modules          Trina Solar number two. In the context of its
                    provide clean, dependable solar electric power       membership in the Global Growth Company
                    to on-grid and off-grid residential, commercial,     Community, Trina Solar looks forward to sharing
                    industrial and utility-scale applications around     its practices of green growth and sustainability
                    the world. Attracting investors ranging from         across a broader international platform.
                    Milestones Capital to Merrill Lynch and with sales
                    and marketing offices and installation partners      Trina Solar researches, develops and
                    throughout Asia, Europe and North America,           manufactures its ingots, wafers, cells and solar
                    Changzhou-based Trina Solar is committed to          modules at its facilities in Changzhou, and
                    improving the competitiveness and efficiency of      then sells them across all major PV markets
                    solar energy en route to leading the way towards     worldwide, including in Germany, Italy, USA,

44   I   World Economic Forum   I   Global Growth Companies
France and Japan. Trina Solar also successfully                which provide cutting-edge equipment with the latest
targets emerging PV markets such as Israel,                    technology for the company’s high-quality production
Malaysia, India and Australia. The company has                 facilities. Just last year, says Jeffrey Fan, Trina Solar
been growing steadily, evinced by its construction             provided solar panels to the Belgium Pavilion on
of China’s first PV model house, 40 standalone PV              behalf of the 2010 Shanghai Expo, and, as part of
power stations in Tibet, and the largest-ever 20-KW            the United Nations Millennium Development Goals,
PV power station in Jiangsu province.                                           teamed up with the UN Environment
                                                                                Programme and the Earth Institute
According to Jeffrey Fan, Director of                                           of Columbia University to provide off-
Communication, Trina Solar’s vertically
                                                   Trina solar’s                grid solar systems to African countries
integrated business model has                      pioneering rainbow that lack grids and are badly in need of
established an industry benchmark.                 curve allows                 electricity. In the company’s 2010 fourth
The company has evolved beyond a                   the company to               quarter report, Trina Solar reported
traditional “smile curve” – which focuses                                       sales of 1.06 GW, with net revenues of
on original equipment manufacturers                                             US$ 1.857 billion.
(OEM) while other players along the         ensure high-quality
value chain control branding and            products and                 In its own backyard, Trina Solar has
technological innovation – by adopting      processes along the          devoted significant time and resources
instead a “rainbow curve,” which
                                            entire integrated            to dramatically reducing both electricity
combines superlative R&D, world-                                         consumption and pollution caused by
class, high-quality and low-cost            value chain, while           its own manufacturing processes, and
manufacturing, and global branding all      maintaining one              installed anti-pollution equipment at
under one roof. By combining ingots,        of the lowest cost           facilities around the globe to reduce,
wafers, cells and modules all on one        structures in the            treat and recycle manufacturing waste.
campus, this pioneering rainbow curve
allows Trina Solar to continuously
                                            industry.                    As Trina Solar is innovative,
ensure high-quality products and                                         passionate and responsible as well
processes along the entire integrated value chain,       as committed to further reduce costs by innovating
while maintaining one of the lowest cost structures      integrative system solutions along the value chain
in the industry. Moreover, to date, the company          to downstream businesses, it’s no coincidence that
has roughly 150 patents for technical innovations,       the company’s logo comprises two colours: blue,
including producing silicon ingots and wafers by         representing the sky, and a red dot, mirroring the
using a portion of reclaimable silicon raw materials to  vast energy of sun. “Trina”, after all, is a transliteration
reduce the reliance on polysilicon.                      of the original Chinese name (TianHe). means “sky,”
                                                         or “heavens,” while means “combine harmoniously”.
Today, Trina Solar’s growing global presence has         Trina Solar’s continuing mission is to leverage
expanded to include offices in Zurich, Madrid,           advanced photovoltaic technology to keep bringing
Munich, Milan, San Jose, Seoul, Tokyo, Sydney,           the sky’s most abundant resource, the sun, to
Beijing and Shanghai. Trina Solar has long-term          customers around the world in the form of clean,
partnerships with leading equipment suppliers in         reliable solar electricity.
Switzerland, Italy, Germany and the United States,

                                     Trina Solar

                                     Industry Sector: Energy (Photovoltaic modules)
                                     Location: Changzhou, People’s Republic of China

  Gao Jifan
  Chairman and Chief Executive Officer

                                                               Global Growth Companies      I   World Economic Forum    I   45
     Global Growth Company Success Stories

     Room for Growth

                               ietnam has come a long way since the        Established in 2002, and publicly traded since
                               economic and humanitarian hurdles           2007, Vincom has quickly established itself
                               it witnessed during the mid-1970s.          as the largest player in Vietnam’s property
                               Over the past decade, the country’s         development market. Vincom develops, leases
                    economic growth has been among the world’s             and sells high-quality retail, residential and mixed-
                    healthiest and steadiest. In 2010, Vietnam’s GDP       use properties in major urban city centres. Over
                    growth rate exceeded forecasts by reaching             the years, the company has launched a massive
                    6.78% – the first year Vietnam achieved a GDP          number of mixed-use and high-end real estate
                    greater than US$ 100 billion. Foreign direct           projects in large cities across Vietnam, including
                    investment continues to hold strong. And thanks        Vincom Center Hanoi, Vincom Center B Ho Chi
                    to current government policies supporting              Minh City and countless other projects currently
                    economic liberalization and modernization,             under development.
                    industry experts predict the country will continue
                    to flourish, with a potential growth rate of roughly   Established in 2001, and publicly listed in 2008,
                    10% annually.                                          Vinpearl is the largest tourism and hospitality
                                                                           company by market capitalization. The company
                    Hanoi-based Vingroup, the holding company              is the developer and manager of Vinpearl Nha
                    of Vincom Joint Stock Company and Vinpearl             Trang Resort & Spa, Vinpearl Luxury Nha Trang
                    Joint Stock Company, is one of the industry-           and Vinpearl Amusement Park on Hon Tre Island,
                    leading corporations helping to give Vietnam its       and Vinpearl Luxury Da Nang in Da Nang City –
                    contemporary dash and dynamism.                        all high-quality, integrated hospitality and resort
                                                                                                      complexes in prime
                                                                                                      locations in key tourism

                                                                                                     Driven by a young,
                                                                                                     ambitious and
                                                                                                     highly experienced
                                                                                                     management team,
                                                                                                     Vingroup’s diversified
                                                                                                     business lines
                                                                                                     encompass everything
                                                                                                     from hotel management,
                                                                                                     eco-tourism and resorts
                                                                                                     to apartment, office
                                                                                                     and retail leasing; and
                                                                                                     spas, golf courses
                                                                                                     and beachfront villas
                                                                                                     to the development
                                                                                                     and management of a

46   I   World Economic Forum   I   Global Growth Companies
number of five-star and five-star-plus resort projects     the Group
– and even Vinpearl amusement park, the largest            has spent
recreational park in Vietnam.                              billions of
                                                           Vietnamese dongs (VND) on social contributions
Vingroup is well situated for future growth, thanks        that benefit the poor, the infirm and families of the
to a growing Vietnamese middle class, a younger            war-wounded. In 2006, Vingroup also established
demographic with increasing disposable income,             the Kind Heart Foundation, the first social fund
and the company’s strategic focus on the upper mid-        established by a Vietnamese enterprise to benefit the
end segment of the residential market. Not least,          community for charitable and humane purposes. To
Vietnam’s 2011 property market is highly                                  date, the Kind Heart Foundation has
ranked for its level of attractiveness to                                 donated tens of billions of VND annually
foreign investors in emerging markets.        "From management to schools, poverty-stricken and elderly
To continue growing its revenues,                                         citizens, and disaster-stricken regions.
                                              down to employees,
Vingroup intends to leverage its                                          And in the wake of the 2009 typhoon,
strengths in the high-end real estate         what sets us apart          which displaced 150,000 residents
sector by strategically focusing on           is that we are              of central Vietnam and destroyed
leasing large, mixed-use developments         determined to get           unnumbered properties, Vingroup
that generate recurring revenues, on
                                              things done. We are         launched a VND 5 billion relief fund to
sales of the residential components at                                    help victims and rebuild flood-ravaged
projects located in prime locations and       tough, and we have          properties.
on developing high-end resorts.               high standards."
                                                                          “We don’t advertise how much we
Asked to explain the group’s success, Vice-                give away,” notes Thuy. “But for us, the benefits
Chairwoman and Chief Investment Officer Le Thi             are twofold. First, we are able to give back to the
Thu Thuy notes that Vingroup typically accomplishes        community and to people who need help. And
in 22 months what takes other companies three              second, since many of our management team
to five years to build. “From management down              and employees came from humble backgrounds
to employees, what sets us apart is that we are            themselves, we don’t want people to sit in their
determined to get things done. We are tough, and           offices and forget about their own roots. Above all,
we have high standards.”                                   while we are an international company, we feel it is
                                                           our duty to focus on the betterment of our society.”
Another factor that sets Vingroup apart from its
rival is its commitment to Vietnam’s social welfare.
Believing that business has to develop in conjunction
with humanitarian, social and charitable activities,


                                    Industry Sector: Infrastructure & Urban Development
                                    Location: Hanoi, Vietnam

  Le Thi Thu Thuy
  Vice-Chairwoman and Chief Investment Officer

                                                             Global Growth Companies      I   World Economic Forum   I   47
     Global Growth Company Success Stories

     Brand New Key

                                 arlos Moreira is nothing if not        art, military-grade specialized security and digital
                                 prescient. Back in 1999, the           identification technologies, WISeKey’s ongoing
                                 WISeKey chief executive officer saw    mission statement is succinct: “to facilitate and
                                 that the Internet was hip. It was      enable the mass use of secure digital identities in
                    snappy. It was game-changing. Obviously, it was     everyday life.”
                    user-friendly. But there was one big downside:
                    the Web’s security infrastructure was porous        From the beginning, WISeKey engaged in early,
                    and ill-equipped for stable, secure transactions.   complex and high-end applications, including
                    “We knew one day this would be a real               working alongside the Swiss government to
                    problem,” Moreira recalls. “The question was,       secure airtight political e-voting from personal
                    while maintaining a cool, open infrastructure,      computers, and partnering with Microsoft on
                    how could we start developing reliable security     its Citizen Service Platform, which enables
                    solutions?”                                         local, regional and national governments to
                                                                        allow citizens and enterprises to identify and
                    Geneva, Switzerland-based global e-security         authenticate themselves across borders and
                    leader WISeKey (WIS stands for World Internet       multiple identity systems and cloud services.
                    Security) is dedicated to restoring the universal   Then as now, WISeKey subsidiaries also solve
                    right to privacy and anonymity – or at the          advanced e-security issues for organizations
                    very least the right to choose when and how         in sectors ranging from defence and health to
                    to entrust others with personal, identifiable       education and finance. And last year WISeKey
                    information. By providing governments,              made news by announcing plans to collaborate
                    businesses and individuals with state-of-the-       with venture capital firm WI Harper on developing
                                                                        business opportunities in China on behalf
                                                                        of telecommunications and e-commerce

                                                                        Today, though, it’s not only industries and
                                                                        governments that need to secure data. Thanks in
                                                                        large part to social networking, individuals want
                                                                        to protect and own their private information, too.
                                                                        Says Moreira: “If the highway a car is travelling on
                                                                        is not secure, then you need to secure the car.”
                                                                        Which is why, over the last five years, WISeKey
                                                                        has also migrated “from an haute couture to a
                                                                        prêt-a-porter platform”, in Moreira’s words. The
                                                                        goal: to help users migrate from an obsolete,
                                                                        password-based infrastructure to a digital identity
                                                                        encryption-based one.

48   I   World Economic Forum   I   Global Growth Companies
WISeID is a downloadable, theft-proof application          divided among
that stores and accesses a person’s usernames,             the club, the network
passwords, PINs, account numbers, bank and                 provider and WISeKey.
credit card details, frequent flyer programmes,
rewards points, and other user credentials, creating       WISeKey’s continuing growth and global leadership –
a single, standalone digital identity. This way, every     the company recently finalized the construction of a
single identity and contact detail is traceable to a       second high security data centre in Bilbao, Spain, in
single person, and his or her mobile                                       addition to the one it has already built
device. Lost your smartphone? You                                          in Geneva and the one in operation in
are the only one who knows your                WISeKey’s industry- the Swiss Alps – is due in no small part
credentials. Moreover, a copy is stored        defining technology         to its dynamic chief executive officer.
on an encrypted cloud under the user’s                                     As an early participant in the evolution
control. With the personal data stored
                                               platforms help bring of the Global Growth Company (GCC)
safely in WISeID, individuals regain the       identity back to            Community, Moreira dubs WISeKey’s
privacy they had all but forgotten was         where it belongs: in alliance with the GGC as one of the
their right.                                   the individual’s own company’s “most relevant milestones”,
                                                                           one that he says has benefited the
Moreira is particularly excited about                                      company in countless ways, not least in
WISeKey’s partnership with football                                        terms of international exposure. “As we
club Real Madrid and its use of WISeID on behalf of        travel around the world to regional meetings,” says
its 600 million fans worldwide. As one of the world’s      Moreira, “the interaction between WISeKey and all
leading emotional brands, Real Madrid recognized           these different sectors, from health to e-government
that its enormous and devoted fan base needed              to banking and technology, has brought our outreach
a dependable way to establish a trusted online             to new dimensions. It’s been exciting to see the
community – and called upon WISeKey to create a            connections between WISeKey and global growth.”
proprietary digital identification platform to monetize
both the content and the interactions with fans.           Humans are so enamoured with the digital revolution
“Unlike with Facebook, the digital identity belongs        that it is easy to forget that one of its downsides is
to you, the individual, the fan, and not to the service    the erosion of anonymity. WISeKey’s industry-defining
provider,” says Moreira. Not least, Real Madrid            technology platforms help bring identity back to
shows that security can be monetized via advertising       where it belongs: in the individual’s own hands.
and rewards programmes, with the proceeds evenly


                                     Industry Sector: Information Technology
                                     Location: Geneva, Switzerland

  Carlos Moreira
  Chairman, Chief Executive Officer and Founder

                                                               Global Growth Companies   I   World Economic Forum   I   49
     Global Growth Company Success Stories

     Yida Group Co. Ltd
     Promoting Green Growth

                               ida Group is one of the Founding       Founded in Dalian in 1984, Yida Group is a large-
                               Members of the Global Growth           scale enterprise group focusing on real estate
                               Company Community. For the past        development, the operation and management
                               five years, company executives have    of software parks, IT consulting services, IT
                    participated in each of the Forum’s Annual        education and training, and cold chain logistics
                    Meetings of the New Champions in China – and      (among other things). But the core business of
                    the company has been an active, engaged and       the Yida Group is real estate. Over the years,
                    committed member of the Community. Along          Yida Group has created over a million square
                    the way, Yida Group, the largest developer        metres of development each year in cities ranging
                    of software parks in China, has grown at an       from Shenyang to Beijing and Tianjin. What is
                    impressive pace across the global stage.          the Yida Group’s most notable development?
                                                                      Dalian Software Park, which is today considered
                    “Yida is a corporation that dedicates itself to   the most “competitive” software park in China.
                    social responsibilities,” says ShanBao Hongkui,   A major recipient of Japanese and Korean
                    Vice President of Yida Group. “That is the core   foreign investment, Dalian has become one of
                    dynamic which enables Yida to be an urban         the top information technology and business
                    operation provider rather than a real estate      processing outsourcing destinations in the world.
                    developer.”                                       With tenants from 42 Fortune 500 companies,

50   I   World Economic Forum   I   Global Growth Companies
including IBM, Hewlett-Packard, Accenture,                But it is in the
Panasonic, Sony, Hitachi, Oracle and Fidelity, the        area of corporate
Dalian Software Park has the highest rate of foreign-     citizenship and
invested enterprises in the nation.                       green technology
                                                          that Yida Group
Yida Group strives to create the best possible living     has become an industry-shaping global leader.
and working spaces based on what the company              Believing that “enterprise lives for society”, Yida
dubs “the harmonious coexistence of humans and            Group has been devoting itself over the past 26 years
nature, industry and environment”. Carrying out           to public welfare and corporate citizenship. In 2009,
its mission of “innovate life” through                                   in response to a state-proposed low-
“delicacy, modernity, affinity and taste”,                               carbon and green economy, Yida Group
Yida Group’s corporate aesthetic            Yida is a corporation helped create Dalian BEST (biodiversity/
encompasses exquisite architecture,
                                            that dedicates               emerging/science/technology) City –
beautiful environments and seamless                                      an innovation marked by the perfect
services. The secrets of its success
                                            itself to social             alliance of “ecology, technology and
are industrial innovation, system           responsibilities. That innovation”. Thanks to Yida Group’s
breakthroughs and management                is the core dynamic          efforts, this “ecological version of
innovation. For example, in the Dalian      which enables Yida           Silicon Valley”, in Bao’s words, will bring
Software Park, business and living are                                   together technological innovation, top
                                            to be an urban
integrated. With schools and hotels                                      industry and advanced eco-friendly
sharing space with hospitals, the           operation provider           development, affording cutting-edge
Software Park combines business with        rather than a real           convenience to its residents. Thanks
recreation. It is also one of the first     estate developer.            to high-end infrastructure and service
software parks to offer clients value-                                   functions, the BEST City has become a
added services, such as outsourcing                                      centre for sustainable development.
BOT support, talent training, headhunting and a lot
more.                                                     Clearly, Yida Group’s Chairman Sun Yinhuan took
                                                          to heart what he heard in Davos over the past three
In 2006, Yida Group incorporated Dalian YIDATEC           years – that the green economy underpins the
Co., which has become one of the leading IT               relaunch of global economic growth. “Yida’s vision is
solutions & services providers in China. Among Yida       to be a leading, modern, international and ‘evergreen’
Group’s subsidiaries are the Dalian Neusoft Institute     company,” says Bao Hongkui, “and we believe that
of Information, today the largest software talent         our collaboration with the Global Growth Company
developing base in China, and Yida Construction           Community is a great step towards that goal.”
Engineering, which focuses on the construction of
both commercial residential buildings and industrial

                              Yida Group Co. Ltd

                              Industry Sector: Infrastructure & Urban Development (Real Estate)
                              Location: Dalian, People’s Republic of China

  Sun Yinhuan
  Chairman of the Board

                                                          Global Growth Companies      I   World Economic Forum    I   51
Global Growth Company Partners and Industry Shapers
Global Growth Company Partners
Global Growth Company Partners are among the most influential and successful companies within their industries.
These companies are well respected in their home markets and have grown successfully beyond their borders since
inception. GGC Partners are exceptionally committed to the mission of the World Economic Forum and contribute
actively to the Forum’s projects and initiatives.

Angermayer, Brumm & Lange              Investors                                   Germany
Banco Compartamos                      Banking and Capital Markets                 Mexico
Boodai Corporation                     Multi-Industry                              Kuwait
BSE LTD                                Banking and Capital Markets                 India
Genpact                                Professional Services                       India
Globis Corporation                     Education                                   Japan
Home Instead Senior Care               Healthcare                                  USA
IDEO                                   Professional Services                       USA
illycaffè                              Agriculture, Food & Beverage                Italy
International Bank of Azerbaijan       Banking and Capital Markets                 Azerbaijan
International Personal Finance         Professional Services                       United Kingdom
Kentaro AG                             Media & Entertainment                       Switzerland
Monex Group                            Banking and Capital Markets                 Japan
Moser Baer India                       Multi-Industry                              India
Neusoft Corporation                    Information Technology and Electronics      People’s Republic of China
OTKRITIE Financial Corporation         Banking and Capital Markets                 Russian Federation
Saigon Invest Group                    Real Estate & Urban Development             Vietnam
SBI Holdings                           Banking and Capital Markets                 Japan
Sekunjalo Investment                   Investors                                   South Africa
The Kuwaiti Danish Dairy Company       Consumer Industries                         Kuwait
Yida Group Co. Ltd                     Infrastructure & Urban Development          People’s Republic of China

Global Growth Company Industry Shapers
Global Growth Company Industry Shapers are exciting new companies from around the world that have demonstrated
strong potential to disrupt the value chain, displace incumbents and transform their respective industries.
Industry Shapers are an integral part of the Global Growth Company Community. They play an important role in
shaping specific industry issues and contributing to the Forum’s programmes and projects through their innovative

Accretive Health                       Healthcare                                  USA
Aecon Group                            Infrastructure & Urban Development          Canada
Better Place                           Automotive                                  USA
comScore Inc                           Information Technology and Electronics      USA
Current Group                          Energy – Smart Grid                         USA
Enso Capital Management                Investors                                   USA
Gamesa Corporación Tecnológica         Renewable Energy                            Spain
GridPoint                              Energy – Smart Grid                         USA
Grupo ABC                              Media, Entertainment & Information          Brazil
Kokusai Kogyo Group (KKG)              Infrastructure & Urban Development          Japan
Lynas Corporation Limited              Mining & Metals                             Australia
NetQin Mobile Inc                      Telecommunications                          People’s Republic of China
SPX Corporation                        Energy                                      USA
Technogym                              Retail and Consumer Goods                   USA
TIBCO Software                         Information Technology and Electronics      USA
Trina Solar                            Energy                                      People’s Republic of China
VeriFone Holdings                      Telecommunications                          USA
Wyse Technology                        Information Technology                      USA

                                                             Global Growth Companies   I   World Economic Forum   I   53
     Global Growth Company Community Agenda
     The Global Growth Companies, as a major World Economic Forum community, participate in many of the Forum’s
     foremost events including:

      The Annual Meeting of the New Champions. As the flagship event of the Community, the Annual Meeting of the
     New Champions is a privileged occasion for peer-to-peer interaction and networking with outstanding industry leaders
     and experts from academia and the business world.

       Regional meetings. Held on five continents, region- and country-specific events constitute an excellent opportunity
     to contribute to regional issues and explore local growth opportunities.

         World Economic Forum Events 2011

         14-16 September             Annual Meeting of the New Champions           Dalian,People’s Republic of China

                                     World Economic Forum Special Meeting
         21-23 October               on Economic Growth and Job Creation in        Dead Sea, Jordan
                                     the Arab World

         12-14 November              India Economic Summit                         Mumbai, India

         World Economic Forum Events 2012

         16-18 April                 World Economic Forum on Latin America         Mexico

         9-11 May                    World Economic Forum on Africa                Addis Ababa, Ethiopia

         30 May-1 June               World Economic Forum on East Asia             Bangkok, Thailand

         10-12 September             Annual Meeting of the New Champions           Tianjin, People’s Republic of China

                                     World Economic Forum on Europe
         October                                                                   TBC
                                     and the Middle East

         5-7 October                 India Economic Summit                         New Delhi, India

     In addition, Global Growth Companies have the privilege of participating in community private events held throughout
     the year. Exclusively reserved for Global Growth Company Community members, these modules are the occasion to
     address the unique needs and opportunities of Global Growth Companies through peer interaction and to reaffirm
     community links.

54   I    World Economic Forum   I   Global Growth Companies
Executive Summary – Redefining the Future of Growth: The New Sustainability

With the global population expected to reach 9.1 billion by 2050 and with rapid
economic growth in emerging countries, pressure on the planet’s ecosystems will
continue to increase. By 2025, Brazil, China, India, Indonesia, South Korea and the
Russian Federation will account for more than 50% of the world’s economic growth.                    Redefining the Future of Growth:
                                                                                                    The New Sustainability Champions

Population expansion drives increasing demand for the basic necessities of
water, food and energy. Moreover, economic growth will reinforce expectations
and aspirations for a better life among the world’s newest consumers. Alternative
approaches to growth and development will be essential to meet the basic needs
and ensure a minimum well-being of the emergent middle classes, as well as to
protect the environment.
                                                                                                         In collaboration with The Boston Consulting Group

With these concerns in mind, the World Economic Forum’s Centre for Global Growth
Companies partnered with The Boston Consulting Group to explore how emerging
market growth companies create innovative and profitable solutions to drive growth while positively influencing their
regions’ sustainability.

The report, Redefining the Future of Growth, identifies and studies 16 emerging market companies that share a
unique mindset and set of best practices – called the New Sustainability Champions.

Based in countries such as Costa Rica, Kenya, Brazil, India and Egypt, these companies provide inspiring examples
for any corporation around the world interested in tackling the challenges of performance, innovation, growth and

Specifically, the New Sustainability Champions:

1. Proactively turn constraints into opportunities through innovation
2. Embed sustainability in their company culture
3. Actively shape their business environments

Moreover, they demonstrate superior financial performance when benchmarked against their peers.

The mindset, practices and business models of these Champions offer critical insights for emerging market
businesses, established multinationals and governments. They could provide multiplier effects and create the basis
for replication and extension among companies operating in emerging markets. They also serve as a starting point
for redefining the future of growth: a growth that is robust and efficiently binds all elements of sustainability together –
economic, environmental and social.

The full report can be downloaded at www.weforum.org/nsc

                                                                   Global Growth Companies      I   World Economic Forum                                     I   55

This report was prepared by the World Economic Forum’s Centre of Global Growth Companies headed by Jerry Yu.
Jiaoli Chen and Marjorie Buchser oversaw and co-led the creation and development of this report.

Writer: Peter Smith

Editors: Fabienne Stassen and Helena Halldén

Design and Layout: Kamal Kimaoui

Designer: SilverMoon Ad. (Beijing) Co., Ltd.

                                                           Global Growth Companies   I   World Economic Forum   I   57
     Photo Credits

     Page 4                                                   Page 23
      Copyright Accretive Health                               Copyright Karuturi Global

     Page 6                                                   Page 24
      Copyright Banco Compartamos                              Copyright Kokusai Kogyo Group

     Page 8                                                   Page 28
      Copyright Beijing Redbaby Info-Tech                      Copyright LCY Chemical Corp.

     Page 10                                                  Page 30
      Copyright Better Place                                   Copyright Lynas Corporation Limited

     Page 12                                                  Page 32
      Copyright Celulosa Argentina                             Copyright MB Holding Company

     Page 13                                                  Page 35
      Copyright Celulosa Argentina                             Copyright M+W Group

     Page 14                                                  Page 42
      Copyright du                                             Copyright TOTVS

     Page 16                                                  Page 44
      Copyright IDEO                                           Copyright Trina Solar

     Page 19                                                  Page 46
      Copyright Illycaffè                                      Copyright Vingroup

     Page 21                                                  Page 48
      Copyright Indika Energy                                  Copyright WISeKey

     Page 22                                                  Page 50
      Copyright Karuturi Global                                Copyright Yida Group Co.Ltd

58   I   World Economic Forum   I   Global Growth Companies

To top