Mukesh Ambani-led Reliance Industries is India's most valuable company
What's the story
Mukesh Ambani's Reliance Industries has emerged as India's most valuable listed company in India, as per Hurun India's '2022 Burgundy Private Hurun India 500' list. In the list that includes 500 companies, Tata Consultancy Services (TCS) and HDFC Bank are ranked second and third. In the unlisted chart, the Serum Institute of India led the ranks, with BYJU'S in second.
Context
Why does this story matter?
India's most valuable companies list is a welcome one at a time when the world is reeling under economic uncertainty. The companies in the list have a total market value of $2.7 trillion, which is close to India's GDP. It shows how valuable they are for the country's forward march. Most of these companies have performed well under the stress of inflation and recession.
Top 5
The top 5 include two banks
Reliance Industries sits at the top comfortably with a valuation of Rs. 17.25 lakh crore, up by 3.6% compared to last year. In the second place, TCS is valued at Rs. 11.68 lakh crore. Third-ranked HDFC Bank has a valuation of Rs. 8.33 lakh crore. The top five are completed by Infosys (Rs. 6.46 lakh crore) and ICICI Bank (6.33 lakh crore).
Information
Two Adani Group companies are in the top 10
In the top 10, we have Bharti Airtel (Rs. 4.89 lakh crore), Housing Development Finance Corporation (Rs. 4.48 lakh crore), ITC (Rs. 4.32 lakh crore), Adani Total Gas (Rs. 3.96 lakh crore), and Adani Enterprises (Rs. 3.81 lakh crore).
Requirement
How does a company make it to the list?
To make it to the '2022 Burgundy Private Hurun India 500' list, the companies must have a minimum value of Rs. 6,000 crore ($725 million). For listed companies, their market capitalizations are taken into consideration, while for unlisted companies, it's their valuation. Only companies headquartered in India are on the list. State-owned companies and subsidiaries of foreign companies aren't included.
Sector
The most dominant sector is financial services
In the sector-wise ranking, financial services led both in terms of the number of firms and value. It produced 73 companies and around 20% of the cumulative value of the list. The healthcare sector has 60 firms on the list. As far as value is concerned, software and services came second with 12.6%, while telecommunications took third place with 10.5%.
Cities
Mumbai leads the list with 159 companies
Most companies on the list are from Mumbai (159). It is followed by Bengaluru (63) and New Delhi (42). Compared to 2021, Mumbai lost eight companies from the list, while Bengaluru and Delhi gained 11 companies each. The average age of this year's list is 39 years. Out of the 500, 64 companies are less than 10 years old.