The total value of India’s 500 most valuable non-government companies has increased to $3.4 trillion. This figure is now larger than the entire GDP of Canada and almost equal to the combined size of the economies of Indonesia and Spain. But the real story is not just about the size of corporate India, but about who is creating wealth and value today and who is being left behind.
According to the latest report of Axis Bank and Burgundy Private Hurun India 500, the top 500 companies of India together have reached at par with the major economies of the world.
The face of value creation is changing
IT services companies, once at the forefront of wealth creation, are now being replaced by telecom, financial services, defense manufacturing, renewable energy, consumer brands and even sports franchises.
The most interesting thing about the report is that cricket has now completely become a part of the corporate world. For the first time, five IPL franchises have been included in the Hurun India 500 list. Their combined value is more than Rs 86,000 crore.
Now IPL teams are no longer just sports organizations, but have become consumer brands worth billions of dollars on the basis of media rights, sponsorship, digital audience and intellectual property (IP).
Market is no longer just a story, it is giving importance to strong performance
According to the report, this year the value of only 198 companies out of 500 companies included in the list has increased. This means that investors are now relying on strong financial performance and not just on big stories.
Fundamentals like return on equity (ROE), cash flow and strong balance sheet are again becoming the basis of investors’ decisions.
This year, a record 95 new companies have joined the list, while more than one-third of the companies included in the first list of 2021 were left out. Now to make a place in this list, the value of the company must be at least Rs 10,230 crore.
Reliance still number-1, but Airtel shows strength
Reliance Industries remains India’s most valuable company for the fifth consecutive year. Its value has been estimated at Rs 19.36 lakh crore. HDFC Bank is at second place and Bharti Airtel is at third place.
However, the biggest discussion was about Airtel. Airtel has created shareholder value of Rs 7.64 lakh crore in the last five years, the highest in the country. During this period the value of the company has increased by 198 percent.
Whereas Adani Power added value of about Rs 3.86 lakh crore. Apart from this, ICICI Bank, National Stock Exchange and Larsen & Toubro were also among the biggest value creators.
Big contribution in employment and tax also
These 500 companies together provide employment to about 89 lakh people. They also collected Rs 3.23 lakh crore as tax and spent Rs 13,433 crore on Corporate Social Responsibility (CSR) activities.
The report shows that the combined value of India’s top 10 companies is Rs 86 lakh crore, which is almost one-fourth of India’s GDP and 27 percent of the total value of Hurun India 500. The nature of wealth creation in India is changing rapidly with the emergence of new sectors like AI, defence, telecom and IPL.
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