Stern Stewart, which labels itself as the EVA company (Economic Value Added), is planning to quadruple the number of EVA companies in India in the next couple of years from the current number of three, according to Mr Gandhok. Having worked with Tata Consultancy Service (TCS) and NIIT, Stern is currently working with the Godrej group to enhance shareholder value.

According to Mr Gandhok, "Indian companies on the whole have a poor average in wealth creation." Over 300 companies globally implement the EVA programme, but it is still relatively a new application tool in India.

Elaborating on the EVA theme, Mr Gandhok points out that maximising shareholder value is still associated with maximising the share price in India. But what needs to be maximised is the difference between market value added and invested capital, or simply put, "what is put in minus what is put out." But what stands out in the Indian context is that despite the poor record in wealth creation, Indian companies that create wealth generate more wealth per unit of capital used than their counterparts in other economies, points out Mr Gandhok.

But the point of concern is that the money invested in these companies is very less, according to Mr Gandhok. Moreover, large Indian companies have invested capital in low spread businesses, he added.