Reliance Industries creates most wealth for investors in last 5 years

Market


India’s top valued company Reliance Industries (RIL) has smashed all records to emerge as the largest wealth creator for investors during the last five years, as per its report on 27th annual wealth creation study by domestic brokerage and research firm Motilal Oswal. For the fourth time in a row, Reliance Industries has emerged the largest Wealth Creator over 2017-22.

During 2017-22, the top 100 wealth creators of India Inc created wealth of 92.2 trillion, the highest ever by far. As in recent studies by the brokerage, Tata Consultancy Services (TCS), Infosys and HDFC Bank remain among the top 5 Wealth Creators.

Reliance Industries, Adani Transmission and Adani Enterprises are the biggest, fastest and the most consistent wealth creators, respectively between 2017 and 2022. Adani Enterprises and Adani Transmission are also the top all-round wealth creators, said the report.

The Motilal Oswal 27th Annual Wealth Creation Study 2022 analyzed the top 100 wealth creating companies during the period 2017-22. Wealth created is calculated as change in the market cap of companies between 2017 and 2022 (March ending), duly adjusted for corporate events such as mergers, de-mergers, fresh issuance of capital, buyback, etc. 

Mukesh Ambani chairs and runs Reliance Industries, which has interests in petrochemicals, oil and gas, telecom and retail. Almost 60% of Reliance’s revenue comes from oil-refining and petrochemicals, though, the conglomerate has been reducing its dependence on oil-refining by diversifying into retail, telecommunications and technology.

Chairman Ambani in August this year unveiled mega investment plans totalling 2.75 trillion and outlined a succession plan, positioning the conglomerate for its next growth phase to double the group’s value by 2027, or the end of what it termed its golden decade. 

The investments include rolling out 5G services across India, for its oils-to-chemicals (O2C) business, accelerated investments in its new energy business, and expansion into the fast-moving consumer goods industry.

In RIL’s annual report for 2021-22, Chairman and Managing Director Ambani said that “over the next 12 months our investments across the Green Energy value chain will gradually start going live, scaling up over the next couple of years. This new growth engine holds great promise to outshine all our existing growth engines in just 5-7 years.”

 


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