Dun & Bradstreet India's Top 500 Companies 2018

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India’s TOP 500 Companies 2018

India’s TOP 500 Companies 2018

Published by Dun & Bradstreet Information Services India Pvt Ltd

India’s Top 500 Companies 2018 Published in India by Dun & Bradstreet Information Services India Pvt Ltd.

Registered Office ICC Chambers, Saki Vihar Road, Powai, Mumbai - 400072. CIN: U74140MH1997PTC107813 Tel: +91 22 6676 5555, 2857 4190 / 92 / 94 Fax: +91 22 2857 2060 Email: DNB_India-corporatepublication@DNB.com URL: www.dnb.co.in New Delhi Office 1 st Floor, Administrative Building, Block ‘E’, NSIC - Technical Services Center, Okhla Industrial Estate Phase - III, New Delhi - 110020. Tel: +91 11 4149 7900 / 01 Fax: +91 11 4149 7902

Kolkata Office 166B, S. P. Mukherjee Road, Merlin Links, Unit 3E, 3 rd Floor, Kolkata - 700026.

Chennai Office New No: 28, Old No: 195, 1 st Floor, North Usman Road, T. Nagar, Chennai - 600017. Tel: +91 44 2814 2265 / 75 Fax: +91 44 2814 2285

Tel: +91 33 2465 0204 Fax: +91 33 2465 0205

Bengaluru Office No. 7/2 Gajanana Towers, 1 st Floor, Annaswamy Mudaliar Street, Opp. Ulsoor Lake,

Hyderabad Office 504, 5 th Floor,

Ahmedabad Office 801 - 8 th Floor, Shapath V, Opp. Karnavati Club, S. G. Highway Ahmedabad – 380054. Tel: +91 79 6616 8058 / 59 Fax: +91 79 6616 8064

Babukhan’s Millennium Centre, 6-3-1099 / 1100, Somajiguda, Hyderabad - 500082. Tel: +91 40 6662 4102, 6651 4102 Fax: +91 40 6661 9358

Bengaluru - 560042. Tel: +91 80 4250 3500 Fax: +91 80 4350 3540


Preeta Misra Naina Acharya


Editorial Team

Mihir Shah, Yogesh Jambhale, Christopher D’Souza, Omesh Kandalkar, Pooja Wadhwa, Rohit Pawar, Nishikant Sharma Suhail Aboli, Jaison Swamidas, Triveni Rabindraraj, Rajesh Kandari, Prasad Kachraj, Sukhvinder Singh, Romita Dey Talukdar, Subhonita Gargari, Dharmesh Kapoor, Keerthi Madhu, Apoorwa Tyagi, Sohail Chawla, Anchal Devnani, Amit Kumar, Sonal Singh Rana, Siddarth Ravindran, Miloni Shah, Apeksha Mutreja, Rohit Sharma, Manjula Dinakaran, Pranava Rao, Taran Chawla, Pooja Arora, Nalini Kukreti Mangesh Shinde, Nehal Khosla, Sumit Sakhrani, Ankur Singh, Rajesh Gupta, Melita Menezes, Smruti Gandhi, Tia Roy, Ayushi Nayak, Nikita Sachdev, Rehan Shah, Ankita Satam, Anoop Parwani, Nadeem Ansari

Sales Team

Operations Team

Design Team

Mohan Chilvery, Sonal Gangnaik, Tushar Awate, Shilpa Chandolikar, Sunil Burli

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India’s Top 500 Companies 2018 18 th Edition ISBN 978-93-86214-25-6


Preface ................................................................................................................. I

Foreword ............................................................................................................ III

Executive Summary .............................................................................................V

Methodology . ...................................................................................................VII

Definitions & Calculations ..................................................................................XI


Economy Update. ........................................................................................XIX

Champions of Change................................................................................XXIII

Overview of Top 500 Companies...............................................................XXXI

Quarterly Updates................................................................................. XXXVII

Corporate Awards 2018.................................................................................... XLI

Experts’ View . ............................................................................................E1-E29

Listings . ..................................................................................................... L1–L55

Profiles ........................................................................................................ 1–345

Index . ...................................................................................................... 346–351



Preface Dun & Bradstreet India is pleased to present the 2018 edition of its premier publication, ‘ India’s Top 500 Companies’ . Since 1997, the publication has been a ready reference tool on the leading corporate firms of India, across more than 50 sectors. The publication offers useful insights on their business performances. The publication profiles companies and ranks them on the basis of their total income, net profit, and net worth. It also presents a comparison of financial parameters of companies within their respective sectors. In addition, it captures the views of industry veterans on the opportunities, growth drivers and long- term plans of their firms and sectors. With the domestic economy facing disruption due to demonetisation, FY17 was a very eventful fiscal year. The disruption led to GDP growth slowing down significantly to 6.1% during the last quarter of FY17 over a 6.8% growth in the

preceding quarter. Lower capacity utilisation, combined with significant leverage continued to hamper new investments. This scenario impacted investment demand. Furthermore, the banking sector’s woes compounded during the year, when loans worth more than ` 4 trillion were declared as bad. Looking forward, the Indian economy seems to be witnessing a revival, in spite of the impact of demonetisation and the introduction of GST. The economy reported 7.2% growth in GDP during Q3 FY18, riding on the improvement in manufacturing, investment and demand indicators. The country also jumped 30 places in the World Bank’s ‘Ease of Doing Business’ index, largely due to reforms in accessing credit, power supplies and protection of minority investors. The IMF has now pegged India’s growth rate at 7.4% for FY18 and at a faster 7.8% for the subsequent year. The banking sector, however, saw a deepening of its asset quality-related problems during the year. Moving ahead, the government needs to further ramp up infrastructure investments, and introduce policy reforms aimed at boosting manufacturing growth. Fixing the banking sector’s problems also needs to be a top priority. Corporates can play a part in India’s economic revival through higher investment, competitive exports, employment creation, and strengthening of the rural economy. They are well-poised to influence economic growth, given their scale and reach. In this context, India’s top 500 companies could play a significant role in paving the way for rapid economic growth. I hope you enjoy reading this issue of ‘ India’s Top 500 Companies 2018’ , and look forward to your comments and suggestions.

Manish Sinha Managing Director – India Dun & Bradstreet



Foreword Dun & Bradstreet India takes pleasure in announcing the launch ‘ India’s Top 500 Companies 2018 ’. This is the eighteenth edition of the publication and has consistently served as a compendium of information about leading corporates of India across a whole spectrum of diverse industries. The publication provides comprehensive comparative performance of these top companies for key financial indicators. I would like to thank all our readers for their positive feedback and response to the previous edition. India’s corporate sector has been facing a series of events such as demonetisation, GST implementation and the twin balancesheet problem in the past two years. Although these measures have resulted in short term disruption for the economy, their long term benefits such as formalisation of the economy are expected to be realised in the long run. Moreover, enactment of the Insolvency and Bankruptcy Code (IBC) is likely to play a vital role in the resolution of large stressed assets and

in restoring confidence among the banks and corporates. The bank credit growth has begun to rebound and has touched 10.3% y-o-y at the end of March 2018. On the other hand, consumer demand is picking up given the fading impact of demonetisation. The 7.2% GDP growth achieved during the quarter ended December 2017 has led to India regaining the status as of one of the fastest growing economies in the world. While it is reassuring that the Indian economy is set for a high growth trajectory, the country needs to create millions of jobs to realise its true potential. It is estimated that only 2% of the total workforce in India have undergone skill training. In this scenario, Top 500 companies can partner with the government to enable skill development and job creation. The corporate sector also needs to recognize that there would be a requirement of re-skilling of the workforce due to emergence of new technologies like automation and artificial intelligence. As Industry 4.0 is beginning to take shape globally, Indian companies have also started adopting this digital revolution. Corporate leaders have started implementing new methods of automation in order to get ready for industry 4.0. However, poor internet connectivity and lack of suitable skills are the two key challenges that need to be addressed. The government’s thrust on infrastructure development, the ‘Digital India’ initiative and skill development are expected to tackle these challenges in the coming period. Corporates in India are on the cusp of change. New technologies, increased investment in infrastructure, and sustained focus on economic reforms will ensure that the business momentum will get back to its earlier pace. As the Indian economy continues to evolve, Dun & Bradstreet will continue to provide critical insights about Corporate India’s performance through ‘ India’s Top 500 Companies ’.

I look forward to receiving your valuable feedback and suggestions.

Preeta Misra Director – Learning & Economic Insights Group Dun & Bradstreet India



Executive Summary The publication ‘ India’s Top 500 Companies 2018 ’ serves as a testimony to the performance of the leading players of India Inc. and their critical role in transforming India. These companies are the frontrunners of Corporate India and in true sense the ‘Champions of Change’ for their initiatives to drive ‘Make in India’ program, CSR activities, encourage the use of digital technologies, drive skill development, make concerted efforts towards financial inclusion, amongst others. FY17 was an eventful year for the Indian economy; characterized by degradation in banks’ asset quality, contraction in India’s share in global exports and the disruption caused by demonetization announcement in Nov 2016. Amidst this background, an analysis of the Top 500 Companies across more than 50 sectors can be treated as a barometer of the growth trends of India’s leading businesses.

Following are some of the key highlights from the publication: • 43 new companies have been profiled in the 2018 edition as compared to the previous edition. Of these, 28 companies have been included for the first time in the universe of Top 500 companies. The aggregate total income of these 43 new entrants witnessed a robust growth of 31.5% in FY17 as compared to FY16. Likewise, their aggregate net profit grew by 48.4% during the same period. • Despite the significant leverage weighing down on corporates, degradation in banks’ asset quality and demonetization announcement in Nov 2016, the aggregate total income of Top 500 companies grew by 7.7% during FY17. • Similarly, the net profit of the Top 500 companies grew by 18.1% in FY17. Dun & Bradstreet also analyzed the recent performance of 488 companies from India’s Top 500 Companies which have consistently published their quarterly interim results during the three-year period ending December 31, 2017 (June, Sept and Dec quarters of FY16, FY17 and FY18). • The aggregate total income of Top 500 companies for Apr-Dec 2017 grew by 11.2%, as against a growth of 3.9% during the corresponding period a year ago. • The aggregate PAT during the period declined slightly by 1.8% as against a growth of 15.2% during Apr- Dec 2016. • The Oil-Refining & Marketing, Banking, and Software & BPM sector were the biggest contributors to the aggregate total income of Top 500 Companies during 9MFY18, collectively accounting for 47.6% of the aggregate total income during the period. India is currently witnessing a dynamic business environment propelled by government reforms and growing investor confidence. The current picture shows improving industrial activity on back of improving domestic consumption and heavy infrastructure spending. Corporate performance will mirror improving macros and ‘ India’s Top 500 Companies ’, being the torch bearers of Corporate India will play an important part in driving Government’s key agendas in the near future. Dun & Bradstreet will continue to track their developments.

Naina R Acharya Leader - Operations Learning & Economic Insights Group Dun & Bradstreet India



Methodology ‘ India’s Top 500 Companies 2018 ’ includes private sector companies and public sector enterprises (PSEs) listed on the Bombay Stock Exchange (BSE) and/or the National Stock Exchange (NSE), India’s twomajor stock exchanges. Total income as per standalone financial statements remains the primary criteria for the initial shortlisting of companies. Companies that were listed before March 31, 2017 were considered for inclusion. However, the editorial team continues to use a diverse set of parameters to refine and arrive at the list of Top 500 companies. Such criteria include three year losses, negative net worth, market capitalization, consolidated financial performance (group level) and financial health (*). Further, companies that were de-listed until December 31, 2017 were excluded from the publication. However, companies that were listed or re-listed before December 31, 2017 due to merger, demerger, amalgamation or any other scheme of arrangement were considered for the publication. Total income, net profit, and net worth continue to be the criteria used for ranking Dun & Bradstreet’s ‘India’s Top 500 Companies 2018’. * Macroeconomic conditions in India, in the past few years have impacted the financial health of many Indian companies including banks mainly due to companies facing difficulties in servicing their debt. They have been subjected to bankruptcy proceedings at the National Company Law Tribunal (NCLT) or have adopted different debt restructuring mechanisms. In such cases (where information is public), an additional criteria set has been applied to include and exclude companies from the Top 500 list. This edition also features financial comparison of the profiled companies classified under different sectors. We have identified 57 distinct sectors for classifying companies. We have classified companies into the respective sectors based on the company’s line of business falling within the defined scope of the sector as mentioned in the ‘Sector Definition’. In the case of companies operating in more than one sector, we have classified these companies based on the major source of the respective company’s income. The main source of information includes FY17 segmental revenues and other related business information. The ‘Diversified’ category includes companies operating in more than one segment, whereby no segment contributes to more than 35% of the overall revenue of the company. Companies that could not be classified under any of the sectors as per the ‘Sector Definition’ and did not have any identifiable peers meriting a separate sector were classified as ‘Others’. Within each sector, the companies are further ranked on their total income. All the financial information in the publication is based on standalone financials sourced from annual reports or audited financial statements. Financial information for the period ending between October 31, 2016 and September 30, 2017 has been considered for the purpose of the publication. In effect, for the majority of Top 500 Companies, the audited financial statements have been considered for the period ended March 31, 2017. For companies where the published financial statement is for a period other than 12 months, the financials are annualized for the purpose of shortlisting, ranking, and profiling. Dun & Bradstreet excluded companies in the absence of unavailability of the annual reports at the time of compiling this publication. In general, all information used in the publication is from publically available relevant sources. The various financial computations are based on D&B’s methodology and have been explicitly explained in the ‘Definitions and Calculations’ section. Dun & Bradstreet has developed an in-house proprietary model for selecting top performing companies for awards in respective their sectors. Themodel took into consideration key financial indicators in areas of business size, growth, profitability, leverage and solvency among others. Each company featuring in the publication has been allotted a unique identification number (D-U-N-S® - Data Universal Numbering System), which will help readers locate and obtain full-fledged business information reports on these companies from the Dun & Bradstreet database.



Sector Definition



Agro Chemicals

Manufacturing and distribution of chemicals used in agriculture industry such as insecticides, pesticides, herbicides and similar chemicals. The sector excludes fertilisers which are classified separately.

Alcoholic Beverages

Manufacturing and distribution of all types of alcoholic beverages.

Auto Components

Manufacturing and sales of parts such as engines, gearbox, carburetors, shock absorbers etc used for all types of automobiles. The sector excludes companies involved in manufacturing of tyres and batteries, which are classified separately in the respective sectors.

Automobile - Two/Three Wheelers

Manufacturing and distribution of Two/Three wheeler automobiles.


Manufacturing and distribution of Four-wheeler passenger vehicles, which include cars & sport utility vehicles (SUVs) and commercial vehicles.


Companies operating with Banking licence as issued by the Reserve Bank of India.


Manufacturing of industrial/commercial batteries. The sector excludes manufacturing of dry cells batteries.


Manufacturing and distribution of bearings.


Manufacturing of cement, concrete and clinker.


Manufacturing and distribution of basic chemicals as well as specialty chemicals such as adhesives. The sector also includes manufacturing of industrial gases. The sector excludes fertilisers, plastics and petrochemicals which are classified separately in the respective sectors. Construction of infrastructure such as roads, bridges, railways and other civil structures such as water supply projects. The sector also covers companies providing related project management services. The sector also includes companies manufacturing roofing products and PEB structures. Companies operating in multiple segments with no single business vertical as the major revenue contributor. Manufacturing and distribution of products used to distribute and use electrical power for residential, commercial and industrial purpose. Manufacturing and supply of industrial &manufacturing equipment, construction equipment, industrial spares & consumables, other equipment & machinery and related EPC services. Manufacturing and distribution of fertiliser products like urea, crude phosphate etc. The sector excludes manufacturing of agro chemicals such as pesticides. Companies other than banking institutions that are engaged in providing financial services primarily comprising of lending services. Manufacturing and distribution of frequently used essential or non-essential goods such as soaps, toothpaste, cosmetics etc. This sector excludes companies that are solely involved in the manufacturing of food & beverage products. Manufacturing and distribution of food products including snacks, fruits, vegetables, dairy products, meatpacking, dietary supplements, vegetable & edibile oils, animal feeds etc. The companies involved in the manufacturing of food products as well as FMCG products have not been included in under this sector and have been retained under FMCG sector. Manufacturing and distribution of consumer appliances like TVs, Fridge, Air conditioners etc.

Construction - Infrastructure Development

Consumer Durables & Appliances


Electrical Products

Engineering Projects/ Capital Goods




Food Products


Manufacturing and distribution of shoes, sandles and other footwear products.

Gas - Processing, Transmission & Marketing

Manufacturing and distribution of natural gas through the pipelines for both domestic and industrial purposes. The sector excludes manufacturing of industrial gases.

Gems & Jewellery

Manufacturing and distribution of jewellery and related articles.

Glass & Ceramics

Manufacturing and distribution of all forms of ceramic products, glass and glass products (except glass jewellery). Companies engaged in providing medicine, medical or surgical treatment, diagnostic, nursing, hospital, dental and optometrical services are covered under this sector.



Management and operation of hotels providing accommodation.

Iron & Steel

Manufacturing of basic and intermediate iron & steel and related alloy products such as sheets, bars, rebars, pig iron etc.



Sector Definition



Media & Broadcasting

Companies engaged in providing print and electronic media for information and entertainment purposes. Also the companies that are involved in the broadcasting of information and entertainment channels are a part of this sector. Manufacturing and distribution of finished metal products such as pipes, tubes and other metal products. Manufacturing of basic and intermediate metal products other than iron & steel products. The sector also excludes companies involved in manufacturing of finished metal products. Companies engaged in refining and supply of oil & gas products. The sector excludes companies involved in processing and supply of natural gas and petrochemicals which are covered in another sector. Companies involved in mining activities of metals & minerals.

Metal Products

Mining - Metals & Minerals

Non-Ferrous & Precious Metals

Oil - Refining & Marketing

Oil & Gas Exploration

Companies involved in exploration for drilling and production of oil & gas resources.

Packaging & Allied Activities

Manufacturing and distribution of packaging materials/products.


Manufacturing and distribution of paints.

Paper & Paper Products

Manufacturing and distribution of paper and paper products.

Petrochemicals & Polymers

Manufacturing and distribution of petrochemical products such as PET resins, polystrene among others. Companies engaged in researching, developing, manufacturing and marketing of drugs and biologicals for human or veterinary use. The companies engaged inmanufacturing of drugs and pharmaceutical products such APIs, drug intermediates, injectables, formulations, capsules, tablets, lifescience and biotechnology products as well as those involved in providing clinical research services and allied activities.


Plastic & Plastic Products

Manufacturing and distribution of plastic and plastic products.


Companies engaged in generation, transmission and distribution of electricity.

Power Equipment

Manufacturing of power equipment used for power generation and transmission and related EPC services. Companies engaged in providing financial and non-financial services other than those covered under other sectors

Professional & Business Services

Real Estate

Construction and development of residential and commercial complexes/buildings.


Sale of goods using multi-brand retail outlets.


Water transport services for commercial purposes.

Software & BPM

Companies engaged in providing various types of services related to information technology including consultancy services.

Specialty Oils & Lubricants

Companies engaged in production and distribution of lubricant oils.


Manufacturing and distribution of sugar.

Telecom Equipment & Infra Services

Manufacturing of Telecom Equipment and related Infra and EPC Services.

Telecom Services

Companies providing fixed and mobile telecommunication services including data servives.


Manufacturing and distribution of textile fibres and finished textile products.

Tobacco Products

Manufacture and distribution of tobacco products.

Trading & Distribution

Companies engaged in trading and distribution activities of goods and services.

Transport & Logistics

Companies engaged in transportation and delivery services and allied activities for delivery of industrial goods and consumer products.

Travel & Tourism

Companies engaged in providing travel & tourism services


Manufacture and distribution of tyres for automotive industry.

Wood & Wood Products

Companies engaged in providing finished wood and related products.


Companies that could not be classified under any of the aforementioned sectors and did not have any identifiable peers among the current edition of Dun & Bradstreet Top 500 Companies list meriting a separate sector have been clubbed together under the ‘Others’ segment.





Definitions & Calculations This section defines financial terms and ratios used in this publication. • Total Income - Refers to the total revenue including other income as reported in the company’s standalone financial statements. • Net Profit – Refers to the profit after tax as reported in the company’s standalone financial statements. • Net Worth – Refers to the sum of share capital, equity equivalents and reserves & surplus. Equity equivalents include share warrants, ESOP etc. Debit balance appearing in the profit and loss account and foreign exchange translation reserve account, revaluation reserves, and miscellaneous expenditure (to the extent not written off) are deducted from the Net Worth.





Profit Before Tax + Interest Expense (net of capitalisation) + Depreciation and Amortisation Expense


EBITDA – Depreciation and Amortisation Expense

EBITDA Margin (%) (EBITDA/Total Income) * 100 Net Profit Margin (NPM) (%) (Net Profit/Total Income)* 100 Return on Net Worth (%) (Net Profit/ Net Worth) * 100 Return on Assets (PAT/ Total Assets) * 100 Debt-to-Equity (times) (Total Debts) /Shareholder’s Fund Shareholder’s Fund

Equity Share Capital + Preference Share Capital+ Reserves and Surplus – Accumulated Losses – Deferred expenses

Total Debt

Short Term Debt + Long Term Debt + Current maturities of Long Term Debt

Total Assets

Non-Current Assets + Current Assets (excluding accumulated losses and deferred expenses)

Interest Coverage (times)

EBIT/Interest Expense

The publication also includes terms and indicators specific to the banking sector.




Total Business

Total Advances + Total Deposits as provided by the RBI

Total Assets

Cash in hand + Balances with RBI + Balances with banks inside/outside India + Money at call + Investments + Advances + Fixed Assets + Other Assets

Net Interest Margin As provided by the RBI Net Interest Income Total Interest earned – Total Interest expended Net NPA Ratio As provided by the RBI Return on Assets (ROA) As provided by the RBI





ECGC Ltd. (Formerly Export Credit Guarantee Corporation of India Limited) was incorporated in 1957 in order to facilitate and strengthen India’s exports by covering the risks faced by Indian exporters and their bankers. ECGC is the fifth largest credit insurer in the World in short term business. ECGC is also a member of Berne Union, an association of credit insurer worldwide. The company is 100 per cent owned by the Government of India and is managed by a Board of Directors comprising nominees of Government of India, Reserve Bank of India, banks, insurance companies and eminent persons from the exporting community. The present paid up capital of the Company is ` 1450 crores against the authorized capital of ` 5,000 Crores. ECGC is also managing National Export Insurance Account, a fund to support medium and long term exports.


The Vision of ECGC Ltd. is to excel in providing export credit insurance and trade related services.


The Mission of ECGC is to support the Indian Export Industry by providing cost effective and trade related services to meet the growing needs of Indian export market by optimal utilization of available resources.


1. To encourage and facilitate Globalization of Indian Trade. 2. To assist Indian Exporters in managing their credit risks by timely information on buyers, bankers and countries. 3. To provide cost insurance export credit Insurance Covers to Exporters and banks through various schemes operated by ECGC.

Awards and Recognition

ECGC Ltd has been recognized as the largest Export Credit Agencies of the country with more than 90% of market share. As per guide lines issued by the DPE every year a MOU is signed with Department of Commerce, Ministry of Commerce and Industry, GOI Based on various financial and non-financial parameters, the companies performance has been rated as” Excellent/ Very Good/Good” in previous 3 yrs. ECGC was most fittingly accorded in its Diamond Jubilee Year the best ECA award for Trade and Forfaiting Review for 2017 an award that has been in vogue for last 20 years. ECGC’s unique achievement is when pitched against stalwarts ECA’s from Germany and UK, it won the award.

Performance of the company

During the year 2017-18 the Company has earned a total premium of ` 1240 crores, paid total claim of ` 1282 crores. ECGC’s support of total exports at ` 2,65,000 crores was around 14% of total merchandise exports in 2017-18.

New Initiatives

The Company has drawn up its strategies to achieve the Plan projections by introducing new products like factoring scheme to address the needs of MSMEs, reinforcing the Reinsurance arrangements, practicing prudent Risk Management strategies, reinforcing the Recovery efforts against Claims paid and enhancing the knowledge and skills of its work force.



• Economy Update

• Champions of Change • Quarterly Updates

• Overview of Top 500 Companies



Economy Update

FY17 was marked by a major economic policy development – demonetization of high currency notes (November 2016). Indian economy, which was losing momentum since the second half of FY16, was further hit by the transient impact of demonetization. The cash dependent sectors such as retail, construction, textile and leather were severely affected due to fall in consumer demand in the short term.

Growth dynamics of the Indian economy


10.0 12.0 14.0

0.0 2.0 4.0 6.0 8.0

-4.0 -2.0

GVA at Basic Price Agriculture Industry Services

Source: MOSPI

The private consumption expenditure that had shown resilience during most part of FY17 on the back of rise in rural incomes consequent to robust growth in agriculture sector and significant increase in Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) expenditure, moderated sharply towards the end of FY17 due to liquidity crunch post demonetization. The subdued demand conditions further slackened the industrial activity which had witnessed continuous deceleration during FY17. Apart from poor demand, the industrial growth story was beleaguered by weak exports, high borrowing costs, leveraged corporate balance sheets and stalled projects at various levels. Excess capacity and high leverage in the private sector restricted investment, which was also reflected in the contraction in the capital goods production. The weak consumption and investment demand pulled down overall GDP growth for FY17. The slowdown in growth would have been more pronounced if there would not have been the front loading of government expenditure in the second half of FY17 and at the beginning of FY18. The substantial increase in government spending during this difficult period provided cushion to the economic activity. The delay in policy decisions, stalled projects in infrastructure sector, supply mismanagement and slowdown in domestic as well as international demand affected debt servicing by the corporate sector, in turn leading to piling up of bad debt. The asset quality review initiated by the RBI led to recognition of NPAs by banks. As a result, NPA slippages across SCBs accelerated noticeably during FY17. GNPA ratio for SCBs jumped to 9.3% as on Mar 31, 2017 as against 7.5% as on Mar 31, 2016. The under-capitalised banks affected lending activity and in turn put a drag on the private capital expenditure. Bank credit growth dropped significantly to 4.5% y-o-y at the end of March 2017, lowest since April 1971. Although, NPAs belong primarily to the large industries, the MSME segment had to take the major brunt of the increased risk-aversion amongst banks. This inevitably had put enormous pressure on these companies and pushed them to change their funding source from banks to non-bank finance segment. However, the funding from other sources is often at significantly higher interest rates as opposed to bank loans, which raised borrowing costs for these companies, affecting their earnings. As it became apparent that under-capitalised banks could derail economic growth, the government announced a recapitalisation package for PSBs. Moreover, the introduction of insolvency and bankruptcy code (IBC) in December 2016



Overview of the Indian Economy

has played a vital role in the resolution of large stressed assets on bank balance sheets. The process of IBC has enabled the debt-laden companies to find buyers for their underlying assets. This has helped in restoring some confidence among the banks and corporates. The enactment of IBC process along with the recapitalisation of banks has enabled the PSBs to restart the lending cycle in FY18. Bank credit growth has begun to rebound and touched 10.3% y-o-y at the end of Mar 2018. Three months after the start of FY18, came the rollout of the GST (July 2017). Although the introduction of GST was meant to initiate an effective indirect tax regime, various technical and implementation glitches added to the woes of businesses in the transient period. The destocking by businesses ahead of GST, took their toll on growth in industrial production and employment mainly in the unorganised sector. This was also mirrored in moderation in exports of labour intensive goods like leather, textiles, jute products and sports goods. Besides, rising global crude oil prices also contributed to the modest growth in private consumption in the first half of FY18. Private consumption demand, however started picking up during the second half FY18 given the fading transient impact of demonetisation and GST implementation. High frequency indicators of urban consumption like passenger cars and utility vehicles sales and domestic air passenger traffic witnessed robust growth. On the other hand, the growth in sales of two-wheelers and tractors point towards recovery in the rural consumption demand. With credit and consumption growth picking up, the investment cycle also witnessed a meaningful recovery during FY18. Investment activity showed a turnaround since the second quarter of FY18, with growth in gross fixed capital formation strengthening further to touch a six-quarter high of 12% y-o-y in Q3 FY18. The production of capital goods sector, a key indicator of investment activity, also turned around in the second half of FY18. With consumption and investment demand picking up, GDP growth regained its lost momentum. The turnaround in economic activity has largely been underpinned by an acceleration in industrial output, driven by the manufacturing sector. Withinmanufacturing sector, production in 15 industry groups witnessed expansion during H2 FY18. The performance of sectors like coke and refined petroleum, chemicals and chemical products, machinery & equipment and other non-metallic mineral products witnessed improvement during this period. Nonetheless, growth in mining and electricity sectors witnessed moderation during FY18. While demonetisation led to disruption in economic activity, it also had significant impact on inflation. The CPI inflation that had peaked in July 2016, started easing during August-October 2016 on account of normal monsoon. However, post demonetisation it moderated sharply on account of an abrupt compression of food inflation. TheWPI inflation, on the other hand, started edging up in Q4 FY17 on account of soaring fuel group inflation. Global commodity prices including metal and fuel witnessed sharp increase during October 2016 to March 2017. The WPI and CPI inflation reversed its direction since July 2017 and moved slowly and steadily in the upward direction. Given that inflation trajectory remained below projected path, the stance of monetary policy largely remained accommodative till the first half of FY18. The surge in low cost current and saving account deposits into the banking system post demonetization along with the significant reduction in term deposit rates, facilitated the pass through of policy rate cuts to lending rates of SCBs. Nonetheless, deterioration in asset quality of banks resulted in banks loading higher credit risk premia on lending rates, thereby impeding the full pass through of policy rate cuts. Since December 2017, given the transition of system-level liquidity transition from surplus to neutrality, deposit and lending rates began to inch up. Further, with inflationary pressures getting visible, the stance of monetary policy was changed to neutral in H2 FY18. On the policy front, India is moving in the right path with its commitment to key economic reforms. The government has initiated a slewof economic reforms in almost all areas including, FDI, closure of sick units, infrastructure, financial inclusion, bankruptcy, taxation and ease of doing business. This has helped in improving business environment in the country which has been reflected in India’s improved ranking on World Bank Doing Business indicator. India’s Doing Business ranking improved substantially to 100 out of 190 countries for 2018, against 130 in 2017. Further, both GST and demonetization are expected to result in formalisation of the economy, thereby widening the tax base. The commitment to economic reforms and India’s resilient fundamentals has made the country most attractive investment destinations in the world.





Champions of Change

Since 1997, Dun & Bradstreet India’s premier publication, India’s Top 500 Companies, has served as a compendium and ready reference tool on the front-runners among Indian corporates. India’s Top 500 Companies, spread across about 57 sectors, are companies that play a key role in driving the growth of the Indian economy by virtue of their size and reach. India’s Top 500 Companies 2018 is the 18thedition of the publication. The Government of India has constantly endeavoured to introduce initiatives and reforms designed to bring the economy on the path of rapid growth in the long run. In recent years, initiatives and reforms such as the GST, Make in India, the Consolidated FDI Policy, The RERA Act, the Recapitalisation of PSU Banks, the Insolvency and Bankruptcy Code, Digital India, Skill India, the Swachh Bharat Mission and the Jan Dhan Yojana, among others were introduced to bring to the fore a ‘New India’ and to take the country on a path of rapid progress. Building a New India warrants change on a massive scale. Being significant stakeholders and frontrunners in India’s growth story, India’s Top 500 Companies are therefore called to play their role of being ‘Champions of Change’.

In that sense, India’s Top 500 Companies are truly the ‘Champions of Change’, through their: - • Compliance with tax reforms such as GST • Adherence to Corporate Governance norms • Implementation of Make in India initiative through capex and innovation • Enabling, improving and encouraging the use of digital payments • Conduct of CSR activities • Development of better telecommunication infrastructure and services; and • Job creation • Conduct of Skill Development programs • Concerted effort towards Financial Inclusion • Generation and distribution of Renewable and Clean Energy, among others



India’s Top 500 Companies – Champions of Change

There are many interesting facts that endorse Top 500 Companies’ role as Champions of Change. Some of them are: - • In FY17, Top 500 Companies accounted for approximately 80% of the total Market Capitalization of all stocks listed on the Bombay Stock Exchange (BSE) • In FY17, they contributed to 34% of the Indian Government’s total tax revenue • During the year, they employed at least 4.4 million people • They invested in Employee Skill Development by spending ` 160 bn on ‘Staff Welfare and Training Expenses in FY17 • The total CSR spend of Top 500 Companies was ` 86.3 bn in FY17, about 12.2% higher than a year ago • Top 500 Companies spent ` 226 bn on Research & Development in FY17, 14% more than a year ago

India has traditionally been an agriculture-based economy, with more than 50% of its population depending on agriculture for its livelihood. However, with the advent of organized businesses – both public and private enterprises - the impact of manufacturing and service enterprises was magnified manifold. The contribution of agriculture towards the total national output, which hovered around 40-45% in the 1950s and 1960s, declined to just around 20-30% in the early 2000s, and eventually reduced to around 10-15% in the present age. India Inc. has played a major role in bringing about this change, which is crucial for rapid growth.

India’s Top 500 Companies, in particular, have catalyzed this transformation. India’s Top 500 Companies presently contribute to about 17% of the GDP, and therefore, have a substantial influence on the economy. The 2018 edition of the India’s Top 500 Companies publication features merely 45 companies from Agro-based sectors, which contributed to merely 2-3% of the aggregate value of total income, net profit and aggregate market capitalisation. On the other hand, manufacturing/ industry companies (311 companies) accounted for around 60% of the aforementioned parameters, while service sector companies (144 companies) accounted for around 37% of those parameters. This mirrors the movement of the Indian economy away from its traditional agrarian status.

Contribution of Agro-based, Manufacturing/Industry and Service Sector Companies

Total Income FY17 ( ` billion)

Share in Total Income (%)

PAT FY17 ( ` billion)

Mkt Cap FY17 ( ` billion)

Share in Mkt Cap (%)


Share in PAT (%)


1,960.6 34,005.6 18,418.7




3,238.6 56,176.0 37,311.3



62.5 33.9

2,764.6 1,572.5

62.3 35.4

58.1 38.6


Source: Dun & Bradstreet Research

Changing Face of India’s Top 500 Companies The India’s Top 500 Companies publication has evolved significantly over the course of 18 editions since 1997. The scope of the publication has undergone a holistic transformation over the years, moving from merely listing companies on the basis of a single parameter in the first few editions to including a comprehensive analysis and comparison of companies and sectors on the basis of financial parameters, insights and views of thought leaders and doyens of industry. The first edition of Dun & Bradstreet India’s Top 500 Companies was published in 1997. This edition ranked companies on the basis of market capitalisation. In the 1999 edition, the ranking on the basis of market capitalization was replaced with rankings based on three parameters – income, net profit and net worth. In 2006, the scope of the publication was expanded to include additional sections like ‘CEO Speak’ and ‘Sectoral Classification’. Finally, in the 2007 edition, two more key sections – financial comparison and overviews & insights – were added to the publication to provide readers with an in-depth understanding of India’s leading companies. Since then, the methodology has remained largely unchanged, with



Champions of Change

minor changes being gradually introduced, especially with respect to exclusion criteria for selection of Top 500 Companies such as checks on corporate governance, debt servicing and litigations, among others.

The Journey – 1997 edition vs 2018 edition Particulars Aggregate Total Income of Top 500 Companies Total Income-wise largest company Total Income-wise smallest company Aggregate Net Profit of Top 500 Companies

1997 Edition

2018 Edition

` 4 tn

` 54 tn

` 554 bn ` 0.7 mn ` 308 bn ` 4.5 tn

` 4,496 bn

` 11 bn

` 4,437 bn

Aggregate Average Market Capitalisation of Top 500 Companies

` 97 tn

GDP (by expenditure/demand - spliced series) at current prices (base year 2011-12)

` 13,912.8 bn

` 152,537.1 bn

Top 500 Aggregate Average Market Capitalisation-to-GDP Ratio



Source: Dun & Bradstreet Research

Market Capitalisation-to-GDP Ratio Almost Doubles In the inaugural edition of the India’s Top 500 Companies publication in 1997, the aggregate value of the average market capitalisation of Top 500 Companies stood at ` 4,583.5 bn. Since then, the aggregate value of the average market capitalisation has increased to ` 96,726 bn in the 2018 edition (the edition analyzes financial performance during FY17), reflecting a growth of 16.5% per annum. It is interesting to know that the market capitalisation of the top-ranked company in the current edition ( ` 4,791.7 bn) exceeds the aggregate value of the average market capitalisation of Top 500 Companies in the 1997 edition ( ` 4,583.5 bn). The average market capitalisation of the lowest-ranked company in the current edition ( ` 1 bn) exceeds the average market capitalisation of about 176 companies in the 1997 edition. Likewise, the highest-ranked value of average market capitalisation in the 1997 edition would have ranked a much lower 58th in the current edition. This puts into perspective the rapid growth of Indian corporates and the Indian stock markets over the past two decades. The list of India’s Top 500 Companies compiled by Dun & Bradstreet truly represents companies that constitute a major chunk of the Indian stockmarkets. This can be gauged from the fact that the aggregate value of averagemarket capitalisation of companies featuring in the 2018 list of India’s Top 500 Companies accounted for about 80% of the aggregate market capitalisation of all BSE-listed companies as onMarch 31, 2017. The contribution of Top 500 Companies can also be assessed from the fact that the aggregate value of the average market capitalisation of the Top 500 Companies as a percentage of the GDP (spliced series – current prices: base year 2011-12) almost doubled from 32.9% in the 1997 edition to 63.4% in the current edition. About two-third of the Top 500 Companies feature either on the BSE 500 index or the CNX 500 index. India’s Top 500 Companies Grow Faster Than Indian Economy In the 1997 edition of the publication, the aggregate total income of India’s Top 500 Companies amounted to ` 4,076.3 bn. This figure surged to ` 54.4 tn in the 2018 edition, reflecting a growth of 13.8% per annum. Likewise, the aggregate net profit of the Top 500 companies grew from ` 308 bn in the 1997 edition to ` 4.4 tn in the 2018 edition, which translates into a CAGR of 14.3%. Over the same period (between 1996-97 and 2016-17), the GDP (by expenditure/demand - spliced series; current prices: base year 2011-12) reflected a growth of 12.7% per annum. It is thus evident that India’s Top 500 Companies have been growing faster than the economy.



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