Adani Group wins big in FY22 with 88% surge in market capitalisation

The big three groups - Tatas, Mukesh Ambani-led conglomerate, and Adani Group - raise their share

India’s big business groups owned by families continue to steal a march over their bigger rivals. The big three business groups in terms of market capitalisation — the Tatas, the Mukesh Ambani-led conglomerate, and Adani Group — together accounted for 34.2 per cent of the combined market capitalisation of all family-owned enterprises in the country, up from 31 per cent at the end of March 2021 and 22 per cent at the end of December 2016.

The big three business groups had a combined market capitalisation of Rs 54.45 trillion on Thursday, up 44.2 per cent from the Rs 37.6 trillion at the end of March 2021.

In comparison, the combined market capitalisation of listed companies was up 24.7 per cent during the period to Rs 247.2 trillion while that for family-owned listed companies increased 31.4 per cent in FY22 to Rs 159.15 trillion on Thursday.

The Business Standard analysis is based on a common sample of 1,043 firms that are part of the BSE 500, BSE Mid-Cap, and BSE Small-Cap Index.

The sample companies together accounted for 94 per cent of the combined market cap of all companies listed on the BSE on Thursday.

Business group market capitalisation is the sum of the individual capitalisation of group companies that were listed both at the end of FY21 and now.

Adani Group was the top gainer in FY22 with an 88 per cent rise in group market capitalisation in FY22. The group companies had a combined market capitalisation of Rs 12.53 trillion on Thursday, up from Rs 6.68 trillion a year ago. 

This does not include Adani Wilmar, which was not listed in FY21. Including Adani Wilmar, group market cap is up 98 per cent in FY22 to Rs 13.2 trillion.

Mumbai-headquartered JSW Group is next on the growth charts with a 75 per cent jump in market capitalisation in FY22. The group’s listed firms now have a combined market capitalisation of Rs 2.33 trillion, up from the Rs 1.33 trillion a year ago.

Bajaj Group was a big winner with a 43 per cent rise in group market capitalisation in FY22 to Rs 8.91 trillion on Thursday.

Other top business groups with big jumps include Vedanta (up 39.4 per cent) and the one Ambani runs (up 38.1 per cent).

AV Birla Group turned in below average performance with a 16.6 per cent rise in group market capitalisation in FY22 to Rs 5.11 trillion. Mahindra Group also underperformed with a 21.9 per cent rise in FY22 to Rs 2.82 trillion.

Tata Group, however, remained at the top with a combined market capitalisation of Rs 23.76 trillion on Thursday, up 33.6 per cent from the Rs 17.78 trillion at the end of March 2021.

With this, the Tata group companies now have a higher market capitalisation than the listed subsidiaries of multinationals such as Hindustan Unilever, Maruti Suzuki, Nestle India, and Ambuja Cement.

The 93 listed multinationals in the BS sample had a combined market capitalisation of Rs 22 trillion on Thursday, slightly up from the Rs 20.8 trillion at the end of March 2021.

Among non-family or institution-controlled business groups, Larsen & Toubro was the top gainer in FY22 with a 40.8 per cent rise in combined market capitalisation to Rs 5 trillion up from Rs 3.56 trillion a year ago. It was followed by ICICI with a 22.3 per cent rise. In contrast, the HDFC group companies saw a 4.7 per cent decline in market cap to Rs 14.08 trillion.