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|December 21, 1999||
Reliance rated millennium's top Indian corporate
At the end of the millennium, the Reliance group has emerged at the top among Indian corporates in terms of market capitalisation, net worth, assets and profits amongst all.
Quoting the study of performances of Indian business houses, conducted by the Centre for Mmonitoring Indian Economy, a media statement of the company said that the market capitalisation of the Reliance group, which represents the wealth of its shareholders, stands at Rs 476.52 billion. This is Rs 59.39 billion higher as compared to the next group on the list.
The Reliance group is also responsible for creating the most wealth for its public shareholders. "It has a large base of 5 million investors, and has shared the wealth liberally with its public shareholders. At the close of the millennium, the wealth created by the Reliance group for the public at large exceeds Rs 330 billion," the statement said.
Big groups and independent companies, whose market capitalisations have been surging in the recent past, have most of their equity concentrated in the hands of a few promoter-shareholders. On the other hand, the Reliance group has continued to lead in its effort at democratisation of capital.
The group leads the Indian business houses in terms of net worth. Its present net worth stands Rs 198.84 billion, which exceeds that of the next group by Rs 31.90 billion. The group's net worth represents more than 50 per cent of the collective net worth of the top 10 net worth groups, the statement said.
The group has the largest assets among all the Indian business houses. Its total assets are over Rs 550 billion. The group's gross fixed assets and net fixed assets at Rs 395.33 billion and Rs 315.82 billion are also the largest among all Indian business houses at the end of the millennium.
In the year 1998-99, the Reliance group has recorded an operating profit of Rs 19.78 billion, which is more by Rs 5.71 billion from the next group. This is the highest operating profit among all the Indian business houses for the year 1998-99.
The group's net profit for the year 1998-99 stands at Rs 17.92 billion, which is the highest net profit recorded by an Indian business house for the same period. The Reliance group's net profit is around Rs 2.5 billion higher than that of the nearest group.
For the half-year ended September 1999, Reliance has recorded a net profit of Rs 11.84 billion which makes it the top group in terms of half-yearly net profit.
The Reliance group has been able to capitalise on the opportunities thrown up by the globalisation of the Indian economy, starting from mid -991 onwards. The Reliance group has successfully met the challenges of liberalisation and achieved a major part of its growth in the post-liberalisation era.
The group's sales have recorded a compounded annual growth rate of 26 per cent, growing from just below Rs 30 billion in 1991-92 to over Rs 150 billion in 1998-99. The group net profit has grown even faster at a compunded annual rate of around 41 per cent per annum, from Rs 1.63 billion to Rs 17.92 billion over the same period.
Similarly, the Reliance group's net worth has increased by over ten times to over Rs 190 billion, and the group's total assets have grown by over 11 times to more than Rs 550 billion between 1992 and end-1999.
This growth has been achieved in spite of intense competition from global majors, regional economic crisis, downturn in domestic economy, and a sharp cut in import duties on Reliance's major products from 110 per cent in 1993 to 30 per cent in 1999.
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