China’s law firm with the largest turnover, Dacheng, has generated $350m (RMB 2.25bn / Rs 2,300 crore) in fees in 2014 with a lawyer headcount of 3,112 and 1,156 partners, followed by King & Wood Mallesons (China) with revenues of around $280m in 2014 and 1,104 lawyers, according to research by the UK’s The Lawyer (article requires free registration) magazine.
Chinese firm Zhong Lun had a turnover of $230m, while Jun He had turnover’s of around $157m in 2014.
The fifth largest, by revenue, was Grandall, which generated around $154m in fees.
The top 30 Chinese firms that disclosed revenue figures to The Lawyer, for the first time ever, made a total of $2.5bn in 2014 (15.8bn RMB or Rs 16,000 crore).
An estimate from 2010 by RSG India estimated that then-India’s largest law firm, Amarchand Mangaldas, only had revenues of around $40m annually (Rs 181 crores back then).
The 50 largest Indian corporate law firms were estimated to only generate a total of $350m (Rs 1590 crore back then) in revenues.
Photo by DrRandomFactor / By CC
Comments
This was a question in their national Bar Exam: "If forced to choose, would you save your mother or your girlfriend from a burning building?"
That said, not sure how accurate the RSG turnover figures are, is possible Amarchand had a bit more than $50m turnover back then...
By analogy, India's GDP in 2010 was less than US's GDP in 2014. Although figures for India's GDP in 2014 are not available, lets just double the 2010 figures and add a smiley to it. This would pass the muster of good economics! If anyone has a different view, just post some arrogent rebuttle drawing attention to the smiley and the limitations in gathering facts and justifying comparing apples to oranges.
"Bit more", really! how much is a bit?
Kian - LI started off well, but lately its coming across as tabloid! May i suggest that you start reading New York Times and the Economist.
Please don't publish this, if you like. Its for your benefit and not for the public who visit LI and read Mumbai Times (that includes me!).
Sounds like you're actually trying to rebut my point with nothing but a frowny smiley face? Cheer up :)
Let's assume very generously despite the lacklustre economy of the last five years, that all Indian law firms grew by 20% year on year, which is what some firms have reported from time to time. That would make $350m into $870m, compounded, or roughly double.
Nevertheless, the comparison to China remains as stark, and that's the point: If India's top 50 firms roughly generate as much revenue as China's largest or 3 largest, or even 10 largest, that's very significant.
Hence the smiley face - who cares, even if you double or triple it, China's legal industry still dwarfs India's.
Now, if we were inclined to delve into this topic more deeply, we'd try and find out how big the Chinese market may have been before for a period before they allowed in foreign firms, and after that, and compare that to China's GDP growth over those periods. But we're neither economists nor academics.
Finally, if you were to ask me whether I want LI to be the NYT, The Economist or The Mumbai Times, I'd like to think LI is a different beast that straddles the lines between serious and intelligent, and irreverent and a little whimsical, as appropriate depending on the topic being covered. We may not always manage on all of those fronts, but now you know at least. :)
Warmly
Kian
Hence, we must not think ourselves as the high and mighty just because we speak the Queen's English or so. It is when the GDP which includes manufacturing and agriculture grows, that we shall also reap in rich dividends.
For all us high flyers, it is when the slum dwellers have a roof to live that we can own a penthouse. Not before!
Pro bono publico.....
I hope you share this news with Manan Mishra, Cyril Shroff, Lalit Bhasin, Arun Jaitley and other shining jewels of our profession.
These are revenues being spoken of, not the standards of underlying institutions. And clearly the levels of investment and work involved are far more in that country enabling it to develop its law firms and legal system.
Forget anywhere close...the comparison only shows how pathetic the cold, hard reality is.
True, we Indians are masters in empty posturing and grand-standing. As if hard statistics should not come in the way of a good story....Modi and the NRIs are even dreaming of an "Indian century"....as if that is the metric for the well-being of the citizenry, when even daily needs like water, electricity, decent roads, are so hard to get.
so ultimately what happening is there is no pricing criteria if I do an Agreement in Tier 1 firm for 5 lakhs the same Agreement i will do for 50k if i start of my own.
there are two plausible ways of competing with foreign law firms:
1. keep on shouting with SILF,
2. introspect, how can you become more competitive, Retain talent, importantly leave Lala mindset.
LI, revenue isn't discussed in isolation, profitability is the partner of revenue. Another I forgot. Will send later :))
I am sure either they are inflating their growth and deflating the revenue. It is same as china's economy.
Inke accounts ke audit hone chahiye
No good websites though, as far as I know - Chinese government would probably start chopping some heads sooner or later if it was any good. :)
http://www.legallyindia.com/easyblog/kian-ganz-legallychinacom-vs-legallyindiacom-html
To be honest, I think there's enough to do in India still :)
I mean cash payments/other consideration arent exactly being reported as revenue are they?