From left, Anand Mahin­dra, Chair­man and MD, M&M; Ratan Tata, Chair­man, Tata Sons; Rahul Ba­jaj, Chair­man, Ba­jaj Group; Gautam Adani, Chair­man, Adani Group; Mukesh Am­bani, Chair­man & MD, RIL; Anil Agar­wal, Chair­man, Vedanta; Anil Am­bani, Chair­man, ADAG

Business Sphere - - 4-year Growth - By Our Cor­re­spon­dent

hen Ratan Tata steps down as Chair­man of Tata Sons in De­cem­ber, he can do so with a sense of sat­is­fac­tion in the knowl­edge that the group he steered through two decades of eco­nomic re­form is In­dia’s lead­ing busi­ness house. Four years ago, the Mukesh Am­bani-con­trolled Re­liance In­dus­tries Ltd (RIL) was ahead of the Tata Group in terms of mar­ket cap­i­tal­i­sa­tion. The Busi­ness To­day Re­search Bureau com­piled mar­ket cap data for In­dia’s lead­ing busi­ness houses and av­er­aged the April-to-Septem­ber fig­ures for each year since 2008/09. To rank the coun­try’s big­gest con­glom­er­ates, the av­er­age mar­ket cap­i­tal­iza­tion of all listed com­pa­nies in a group was added up. Some in­ter­est­ing trends came to light. Per­haps the most in­ter­est­ing one is the ro­bust growth of the Ba­jaj Group, which ranks sixth in terms of mar­ket cap­i­tal­i­sa­tion. Hav­ing in­creased its mar­ket cap at a com­pound an­nual growth rate (CAGR) of 24 per cent in four years, it has pushed Shashi Ruia’s Es­sar Group out of the top 10. The Ba­jaj Group grew the fastest of all the top 10 con­glom­er­ates by mar­ket cap. The next two in terms of CAGR are the Hero and Tata groups (the Hero group is not among the top 10 by mar­ket cap, how­ever). The Tata Group, with its di­verse man­u­fac­tur­ing and ser­vices foot­print, has the big­gest mar­ket cap - Rs 4.45 tril­lion (a tril­lion equals 100,000 crore). Its val­u­a­tion has grown at 14 per cent CAGR over four years. In terms of both val­u­a­tion and growth, the Tatas are now miles ahead of RIL, which has sec­ond place in terms of mar­ket cap. The Tata Group has gained the most in terms of ab­so­lute change, adding Rs 2.1 tril­lion to its val­u­a­tion since the first half of 2008/09. In 2011/12, 74 per cent of the group’s rev­enues (Rs 1.91 tril­lion) came from three of its 26 listed com­pa­nies - Tata Con­sul­tancy Ser­vices, Tata Mo­tors and Tata Steel. Bhaskar Bhat, Man­ag­ing Di­rec­tor at Ti­tan In­dus­tries, says: “The Tata Group strongly drives in­no­va­tion pro­grammes which have taken deep root,” says Bhat. He adds that the group’s growth was ac­cel­er­ated by ag­gres­sive in­or­ganic ex­pan­sion glob­ally. If one looks at only cu­mu­la­tive growth in four years, then only one busi­ness house is ahead of the Tatas among the top 10 by mar­ket cap. The Ba­jaj Group’s mar­ket cap has grown faster at 24 per cent CAGR to Rs 76,891

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