While software major TCS (Tata Consultancy Services) is in buoyant mode as investors gained the most in terms of market capitalization, Reliance Industries and RCom made headlines for topping the list of companies for being the biggest wealth destroyer, reveals a study done by Motilal Oswal, financial services company.
A wealth creation study was conducted to analyze the total wealth created by 100 companies between 2008 and 2013 in terms of their market capitalization, after adjusting for mergers, demergers, fresh issuance of capital and buy back of shares, reports PTI.
Let’s have a look at the 10 companies that became the biggest wealth destroyers out of 100 companies in India, as listed by rediff.com.
1. Reliance Industries
Once the biggest wealth creator, Reliance Industries, is now became the largest wealth destroyer between 2008 and 2013. Unbelievable! Reliance has topped the list as the biggest wealth destroyers, a company which was generated maximum wealth consistently for five years. Reliance was considered dearest to market during 2007 to 2011 period, but they witnessed a destruction of wealth of over 11,28,700 crore which would be almost 7 percent wealth. Markets won’t spare anyone in such cases of destruction.
2. Reliance Communications
Reliance communications is considered as the second largest telecom operator in India after Bharti Airtel but now they are 2nd in the list of wealth destroyers. They had around 1.5lakh crore of market capitalization in 2008 but later they faced a huge erosion of over 90 percent. The amount of wealth destroyed was approximately 92100 crore which would come up to 5 percent of wealth.
3. MMTC (Metals and Minerals Trading Corporation of India)
MMTC are into export of primary products like Coal, Iron ore and import of some commodities like ferrous and nonferrous metals. They also manufacture agro and industrial products and in addition to that they are one of the two highest earners for foreign currencies. It is hard to believe that one, who is the key player in bullion trade and retailing, is among the wealth destroyers. The amount of wealth destroyed by them was approximately 89,100 crore which will be around 5 percent of wealth.
4. NMDC (National Mineral Development Corporation)
Government owned NMDC is one the largest producers of minerals. They are into exploration of diamond, dolomite, iron ore, graphite etc. Being one of the major producer of iron ore, NMDC is responsible for destroying wealth of approximately 82,200 crore, which is about 5 percent of wealth destroyed.
5. DLF (Delhi Land and Finance)
In India, when it comes to real estate developers, DLF tops the list. Several residential colonies like Kailash colony, Krishna Nagar, Shivaji Park, Greater Kailash and many more are developed by DLF. Their total turnover in 2007 was around 3,120.98 crore and by 2012 they owned leased retail space of around 1.38 thousand square feet. They are great achievers but destroyed wealth of about 70,300 crore that will be around 4 percent of wealth destroyed.
6. Reliance Power
As Reliance tops the list of maximum wealth destroyer, Reliance Power—now a part of Anil Ambani Group, is also one among them. The main objective behind the foundation of Reliance Power was development, construction and operation of power projects in international markets. Approximately 61,900 crore that comes around 4 percent of wealth, has been destroyed.
7. BHEL (Bharat Heavy Electricals Limited)
BHEL is an integrated power plant owned by state, which is into manufacturing and engineering. Their operations include designing, construction, manufacturing, testing and servicing various products and services in several sectors. Being a state owned integrated plant, BHEL was earning profits consistently for six to seven years, but they have made through the list of wealth destroyer according to the recent study. The total wealth destroyed is whopping 57,400 crore which is about 3 percent.
8. SAIL (Steel Authority of India)
SAIL is one of the largest steel making company owned by state in India and one among the top steel makers in the world. Their turnover of 486.81 billion rank them in top five highest profits earning corporation in the country. The total amount of wealth destroyed by them is approximately 50,600 crore that is around 3 percent of total wealth.
9. Bharti Airtel
Bharti Airtel popularly known as Airtel is a multinational telecommunications in India. Airtel is the third largest mobile operator in India with over 192.22 million subscribers as of 2013. The amount of wealth destroyed by them is around 46,000 crore which will be around 3 percent of the total wealth.
10. NTPC (National Thermal Power Corporation)
NTPC is into the business of generating electricity and is a Central Public Sector Undertaking (CPSU). Being a company owned by the government they have destroyed wealth of around 45,400 crore which will come up to 3 percent of total wealth.
A wealth creation study was conducted to analyze the total wealth created by 100 companies between 2008 and 2013 in terms of their market capitalization, after adjusting for mergers, demergers, fresh issuance of capital and buy back of shares, reports PTI.
Let’s have a look at the 10 companies that became the biggest wealth destroyers out of 100 companies in India, as listed by rediff.com.
1. Reliance Industries
Once the biggest wealth creator, Reliance Industries, is now became the largest wealth destroyer between 2008 and 2013. Unbelievable! Reliance has topped the list as the biggest wealth destroyers, a company which was generated maximum wealth consistently for five years. Reliance was considered dearest to market during 2007 to 2011 period, but they witnessed a destruction of wealth of over 11,28,700 crore which would be almost 7 percent wealth. Markets won’t spare anyone in such cases of destruction.
2. Reliance Communications
Reliance communications is considered as the second largest telecom operator in India after Bharti Airtel but now they are 2nd in the list of wealth destroyers. They had around 1.5lakh crore of market capitalization in 2008 but later they faced a huge erosion of over 90 percent. The amount of wealth destroyed was approximately 92100 crore which would come up to 5 percent of wealth.
3. MMTC (Metals and Minerals Trading Corporation of India)
MMTC are into export of primary products like Coal, Iron ore and import of some commodities like ferrous and nonferrous metals. They also manufacture agro and industrial products and in addition to that they are one of the two highest earners for foreign currencies. It is hard to believe that one, who is the key player in bullion trade and retailing, is among the wealth destroyers. The amount of wealth destroyed by them was approximately 89,100 crore which will be around 5 percent of wealth.
4. NMDC (National Mineral Development Corporation)
Government owned NMDC is one the largest producers of minerals. They are into exploration of diamond, dolomite, iron ore, graphite etc. Being one of the major producer of iron ore, NMDC is responsible for destroying wealth of approximately 82,200 crore, which is about 5 percent of wealth destroyed.
5. DLF (Delhi Land and Finance)
In India, when it comes to real estate developers, DLF tops the list. Several residential colonies like Kailash colony, Krishna Nagar, Shivaji Park, Greater Kailash and many more are developed by DLF. Their total turnover in 2007 was around 3,120.98 crore and by 2012 they owned leased retail space of around 1.38 thousand square feet. They are great achievers but destroyed wealth of about 70,300 crore that will be around 4 percent of wealth destroyed.
6. Reliance Power
As Reliance tops the list of maximum wealth destroyer, Reliance Power—now a part of Anil Ambani Group, is also one among them. The main objective behind the foundation of Reliance Power was development, construction and operation of power projects in international markets. Approximately 61,900 crore that comes around 4 percent of wealth, has been destroyed.
7. BHEL (Bharat Heavy Electricals Limited)
BHEL is an integrated power plant owned by state, which is into manufacturing and engineering. Their operations include designing, construction, manufacturing, testing and servicing various products and services in several sectors. Being a state owned integrated plant, BHEL was earning profits consistently for six to seven years, but they have made through the list of wealth destroyer according to the recent study. The total wealth destroyed is whopping 57,400 crore which is about 3 percent.
8. SAIL (Steel Authority of India)
SAIL is one of the largest steel making company owned by state in India and one among the top steel makers in the world. Their turnover of 486.81 billion rank them in top five highest profits earning corporation in the country. The total amount of wealth destroyed by them is approximately 50,600 crore that is around 3 percent of total wealth.
9. Bharti Airtel
Bharti Airtel popularly known as Airtel is a multinational telecommunications in India. Airtel is the third largest mobile operator in India with over 192.22 million subscribers as of 2013. The amount of wealth destroyed by them is around 46,000 crore which will be around 3 percent of the total wealth.
10. NTPC (National Thermal Power Corporation)
NTPC is into the business of generating electricity and is a Central Public Sector Undertaking (CPSU). Being a company owned by the government they have destroyed wealth of around 45,400 crore which will come up to 3 percent of total wealth.