BT500: Fair tides for India's largest companies, but beware of the rough weather ahead

Reliance Industries, led by Mukesh Ambani, has once again secured the top spot in this year’s BT500 ranking of India’s most valuable companies. This marks yet another feather in the cap for the conglomerate, which has dominated the rankings over the years. The 33rd annual ranking demonstrates the resilience and adaptability of India Inc. that has ridden the fair tides of growth in the post-pandemic era.  

This year’s BT500 edition, helmed by Rahul Oberoi and Prince Tyagi, highlights significant trends in market capitalisation, income, profitability, and financial assets of India’s corporate giants. Additionally, it features the BT Billionaires list, showcasing India’s wealthiest promoters, with the Top 5 being Mukesh Ambani, Gautam Adani, Sunil Bharti Mittal, the Bajaj family, and Kumar Mangalam Birla. 

The consolidated market capitalisation of BT500 companies surged nearly 40% over the previous year, adding a whopping `102 lakh crore to the total valuation, which now stands at `363 lakh crore. In contrast, these companies saw a modest 4% rise last year, while the increase was 26% in 2022. These gains were underpinned by a stellar performance of the BSE Sensex, which jumped 28% from 65,828 points in September 2023 to 84,300 points by September 2024. This impressive rally translated into unprecedented wealth creation for shareholders, as Anand Adhikari elaborates in the opening essay.

Reliance Industries, TCS, and HDFC Bank retained their Top 3 positions from last year. Their collective market dominance underscores their ability to navigate challenges, drive innovation, and adapt to a rapidly changing economic landscape. Across its businesses, Reliance has leveraged digital transformation and technology to future-proof its operations. Krishna Gopalan’s detailed analysis explores how Reliance has successfully transitioned into a tech-driven entity, harnessing free cash flows from its traditional oil and chemicals business to build world-class retail and telecom assets. 

Among private sector conglomerates, the Tata group leads with a total market capitalisation of nearly Rs 30 lakh crore across its 16 listed entities. From TCS and Titan to Tata Motors and Trent, the salt-to-software conglomerate remains a heavyweight in Indian business.  

Talking of heavyweights, India Inc. recently bid goodbye to Shashi Ruia, the Founder of the Essar Group and one of the architects of India’s infrastructure development. Ruia leaves behind a legacy that profoundly shaped the nation’s efforts towards industrial self-reliance. 

While 2023-24 has been a landmark year for wealth creation, the road ahead presents challenges. Potential risks emanating from geopolitical uncertainties, including the ‘Trump effect’, may impact global trade and pose a challenge to macroeconomic frameworks across the world. As India’s corporate giants prepare for the future, they must remain on guard to face rough seas ahead.