Unofficial Translation

www.russiajournal.com

Top 100 Companies Named

April 2, 2003
Page 8

A list of the top 100 emerging consumer goods-related companies with potential to boost growth both in the sector and in the whole domestic economy was released Tuesday. The release followed a study conducted by Interactive Research Group (IRG), an independent market research firm, in collaboration with Deloitte & Touche, Bank Societe Generale, Altium Capital and The PBN Co.

Greg Thain, IRG chairman, said Tuesday these companies were chosen from among thousands of others by a list of strict criteria.

"To be on this list, the selected companies had to meet some requirements, including high turnover figures, a clear and focused vision on their respective sectors, aggressive development plans for the future, positive corporate image and above-average levels of disclosure and transparency, Western, or near-Western quality control standards and extensive brand recognition," he said.

Selection process

A large pool of Russian companies was shortlisted, and their declared corporate data further scrutinized to create a final list. Then, the profiles of those remaining were published and consumers and sector experts made the final decision on the remaining 100.

"The final list of 100 companies, which covers 10 major economic sectors spread across the whole of Russia, is just a selected few, but not an exhaustive list, of the country's growing army of dynamically developing companies that have been posting fantastic growth rates every year," Thain noted.

"These 100 companies will grow bigger as the Russian economy — officially expected to grow in 2003 by about 6 percent, a remarkable rate compared to other global markets facing difficulties — grows bigger."

Among the companies selected for the list - which was not a ranking, officials said — were Mikoyan, a meat-processing and packing company; Orimi Trade; Maisky Chai tea company; Slad & Co. confectionery company; Bistroff instant cereals; Agros agricultural producer; Nevskaya Kosmetika; and Gloria Jeans Corp.

Thain noted that these are all new and emerging companies. Already well-known companies such as Baltika, Wimm-Bill-Dann and Mobile TeleSystems, or companies already acquired by foreigners, were excluded from the study.

The study has shown that companies dealing in fast-moving consumer goods and those operating in wealthy Moscow dominate the sector.

But more money is moving from Moscow into the regions and there is a shift of activity from fast-moving consumer goods to other sectors, he added.

Yevgeny Gavrilenkov, chief economist with Moscow-based investment bank Troika Dialog, said the report's findings are a good reflection of activity in the country's consumer market.

'Very timely'

"This report is very timely today, especially against the background of official reports on the sector which are mostly inaccurate and therefore, do not reflect the true position of things in the sector," he noted.

He attributed the robust growth rate in fast-moving consumer goods to high oil prices, and was not optimistic the trend would continue if the U.S.- led war in Iraq leads to more volatility in the global energy sector.

Galina Fonaryova, a consumer-goods expert at the Ministry of Trade and Economic Development, said the companies named in the study more or less correlate to the ministry's data in the sector.

"The findings of this study are in line with the ministry's view in this sector," Fonaryova said.

"And, I must say that such independent verification of companies' status in any given sector is of vital importance both to the companies and the country," she said.