Tata group remains the top business group; Adani shines the brightest

The Tata group remained India’s top business group in terms of market capitalisation (m-cap) in 2022 but Adani group companies were among the biggest gainers on the bourses for the second consecutive year. Tata companies ended CY22 with a combined group m-cap of Rs 21.2 trillion, down 9.4 per cent year-on-year (YoY) from Rs 23.4 trillion at the end of December 2021.

The Adani group overtook Mukesh Ambani’s firms to become the country’s second-biggest business house in terms of m-cap. Its m-cap more than doubled to Rs 19.66 trillion on Friday, up from Rs 9.62 trillion at the end of December 2021. In comparison, the Mukesh Ambani-led group’s market value was up 6.9 per cent YoY to Rs 17.54 trillion, from Rs 16.4 trillion a year ago.

Excluding Adani companies, the combined m-cap of family-owned businesses was down 3.5 per cent in CY22, compared to a 46.4 per cent gain in CY21. In all, seven of the 10 biggest groups saw a decline in their m-cap in CY22 due to a poor showing by the broader market

The Adani group gained from a continued rally in its existing companies and the acquisition of Ambuja Cement, ACC, and NDTV last year. The group m-cap was also boosted by the initial public offering (IPO) of Adani Wilmar in February last year. While the acquisition of Ambuja, ACC, and NDTV added Rs 1.52 trillion to the group m-cap, Adani Wilmar brought in another Rs 80,000 crore.  

Adani companies were also top performers on the bourses in CY22. For example, The Adani Power m-cap was up 200 per cent in CY22 to Rs 1.15 trillion, while the group flagship Adani Enterprises' market cap was up 134 per cent to Rs 4.4 trillion. Adani Total Gas gained 116 per cent. These were followed by Adani Transmission (up 51.7 per cent), Adani Green (up 47.4 per cent), and Adani Ports & SEZ (up 18.5 per cent).

The Tata group, on the other hand, lost sheen due to a decline in the market capitalisation of Tata Consultancy Services (TCS) and Tata Motors. TCS’ m-cap declined 13.7 per cent in CY22 to Rs 11.92 trillion while that of Tata Motors was down 19.1 per cent to Rs 1.39 trillion. On the other hand, Titan Company (up 2.9 per cent) and Tata Steel (up 1.4 per cent) held steady and there was a rally in Trent (up 26.8 per cent) and Indian Hotels Company (up 89.6 per cent) but they were not sufficient to compensate for the decline in TCS and Tata Motors.

The Bajaj group is the fourth-largest family-owned business group in the country with a market cap of Rs 8.35 trillion as on Friday, down 2.6 per cent YoY from Rs 8.58 trillion a year ago. It is followed by the Bharti group, which overtook the AV Birla group to become the fifth-largest family-owned business group with a Rs 5.17-trillion m-cap as on Friday, up 13.3 per cent from Rs 4.56 trillion a year ago.

The AV Birla group’s combined market capitalisation was down 1.2 per cent in CY22 to Rs 4.98 trillion, from Rs 5.04 trillion a year ago. The Bharti group gained from a 19.6 per cent rise in the market capitalisation of Bharti Airtel in CY22; the AV Birla group lost due to an 8.2 per cent YoY decline in the m-cap of UltraTech Cement -- its biggest company by market value. AV Birla group’s numbers don't include Vodafone Idea -- a joint venture with Vodafone Plc. The AV Birla group owns a 16.53 per cent stake in the telco.

Other family-owned businesses or groups in the top 10 are Mahindra at Number 7 with an m-cap of Rs 3 trillion, followed by Asian Paints (Rs 2.97 trillion), Shiv Nadar's HCLTech (Rs 2.82 trillion) and the Radhakishan Damani-controlled Avenue Supermarts (Rs 2.64 trillion).

Overall, 2022 was a tough year for family-owned businesses. The combined m-cap of family-owned companies was up 2.8 per cent in the year against a 6.1 per cent YoY rise in the market capitalisation of all the listed companies in the Business Standard’s sample.