scorecardresearchHow shares of India's top conglomerates performed in the past quarter
Conglomerate success can also be related to consumer brand recognition.

How shares of India's top conglomerates performed in the past quarter

Updated: 01 Jun 2022, 01:06 PM IST
TL;DR.
Tata Steel has emerged as the most profitable company after Reliance Industries and ONGC in FY22, with over a five-fold jump in earnings. 

Conglomerates are large corporations made up of individual organisations that operate in multiple industries. Many conglomerates are multi-industry organisations with global activities. Every tiny business under the conglomerate's ownership operates independently of the others.

The primary idea behind a conglomerate is that one corporation or organisation manages a number of minor enterprises that operate independently.

India's Top Business GroupRevenue FY22 ( in Cr)Net Profit FY22 ( in Cr)
Tata8,60,65576,131
Reliance (Mukesh Ambani)7,15,09961,882
Aditya Birla3,55,58727,862
Adani Pre - Deal1,85,70413,716
Adani Post - Deal2,30,82118,359
Mahindra1,49,367 12,482
Bajaj 1,42,43522,352
Note: Adani Numbers Include ACC and Ambuja Cements Trailing 12 months' revenues and profits are considered.  
Source: Bloomberg, ET  

The major firm, or parent organisation, achieves this influence by owning a controlling position in these small businesses.

Conglomerate success can also be related to consumer brand recognition. The success of a corporation in one field encourages people to try its products in other industries.

Tata Group

The Tata Group is an Indian multinational conglomerate headquartered in Mumbai.

Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India, comprising 30 companies across ten verticals, its website shows.

The company contributed about 4 per cent to the country’s GDP and paid 2.24% of the total taxation in India, the highest by any corporate group.

The group operates in more than 100 countries across six continents.

Tata Sons are the principal investment holding company and promoter of Tata companies. Sixty-six per cent of the equity share capital of Tata Sons is held by philanthropic trusts.

Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors.

There are 29 publicly-listed Tata enterprises with a combined market capitalisation of $314 billion (INR 23.4 trillion) as of December 31, 2021.

Tata Group affiliates include Tata Consultancy Services, Tata Motors Tata Steel, Tata Chemicals, Tata Consumer Products, Titan, Tata Capital, Tata Power, Indian Hotels, Tata Communications, and Tata Digital, and Tata Electronics.

ScripMarket Cap ( in Cr)Current Market Price (Rs)  1 Year Return(%)
TCS12,31,0323,3646.5
Tata Motors1,47,288443.5539.15
Tata Steel1,28,9501,055-6
Tata power75,138.41235.15120.90
Tata Consumer70,014.89759.7514.45
Tata Elxsi52,194.518,381.10130.30
Trent39,958.571,12431.99
Voltas33,685.721,0181.0
Indian hotels33,379.3923568.7
Tata Tele Services24,514.76125703.85
Tata Chemicals24,163.6394834.76
Tata Investments7,735.771,528.944.39
Tata Coffee3,876.42207.515.82
Nelco1,337.04586170.96
Tayo Rolls117.49115143.36
Note: M-Cap & CMP - as on May 31   

Further, Tata Steel has emerged as the most profitable company after Reliance Industries and ONGC in FY22, with over a five-fold jump in earnings.

Within the Tata group, the top gainers were Tata Teleservices (up 703%) and TATA Elxsi (up130 %), Tata Power (up 120.90%), and Tayo Rolls (up 143.36%). On the other hand, TATA steel (down 6 %). It is the only stock in the Tata Group which has generated negative returns in the last one year period.  

Aditya Birla Group

Aditya Birla Group is an Indian multinational conglomerate. The company operates in 36 countries with more than 1,40,000 employees. The group was founded by Seth Narayan Birla in 1857.

Aditya Birla group have grown into a global powerhouse in a wide range of sectors – metals, pulp and fibre, chemicals, textiles, carbon black, telecom, cement, financial services, fashion retail and renewable energy.

At present over 50% of Group revenues flow from overseas operations that span 36 countries in North and South America, Africa, Asia and Europe, its website shows.

There are four public listed companies under the Birla group. 

Scrip Market Cap ( in Cr)Current Market price (Rs)1 year return (%)
Ultratech Cement1,75,5866,082-9.23
Hindalco94,954.284227.18
Grasim94,044.081,428.60-2.90
Vodafone Idea30,8349.610.98
Note: M-Cap & CMP - as on May 31   

On May 24, Grasim Industries Ltd. reported a net profit of Rs. 2777 crore, a 62% increase from Rs. 1715 crore in Q4FY21.

Grasim industries have accelerated the execution of paint capacity of 1.33 billion litres of paint per annum and will launch a nationwide campaign starting in Q4FY24.

The project cost is revised up to 10,000 crore by FY25 versus the earlier indicated target CAPEX of 5,000 crore by FY24.

Adani Group

Adani Group is an Indian multinational conglomerate. The Group's diverse businesses include port management, electric power generation and transmission, renewable energy, mining, airport operations, natural gas, food processing and infrastructure.

According to the media reports, the acquisition of Holcim's Indian businesses - Ambuja cement and ACC - will consolidate Adani group's Market Capitalization and its position as the third-largest business house in the country.

In the past two years, Adani Group’s total market value has moved closer to that of Reliance, thanks to the blistering rally in share prices of its companies.

Under the Adani group, there are 7 public listed companies. 

Adani Wilmar recently dethroned HUL to become the largest FMCG firm.

Adani Wilmar Consolidated revenue crossed the 50,000 mark and stood at 54,214 crore in 2022 compared to 37,090 crore in 2021, registering a growth of 46%.

ScripMarket Cap ( in Cr)Current Market Price (Rs)1 Year Return (%)
Adani Green Energy2,95,4341,888.9548.95
Adani Total Gas2,63,7232,39777.77
Adani Enterprise2,47,1002,16764.67
Adani Transmission2,26,0112,05539.48
Adani Ports & SEZ1,56,283739.85-3.86%
Adani Power1,24,675323.25249.46
Adani Wilmar86,890668.55NA
Note: M-Cap & CMP - as on May 31   

However, the Gautam Adani controlled industrial house’s total revenues and profits are still some distance away.

Indian Stock Marekt is Now 6th largest in the world 
Indian Stock Marekt is Now 6th largest in the world