Mumbai: Reliance Industries Ltd (RIL) has emerged as the biggest wealth creator in India, to the tune of Rs. 6.3 trillion since 1995, followed by Hindustan Unilever, at Rs.4.9 trillion, a market study said.
RIL, which began as a yarn trading company, has grown to become the biggest wealth creator over the last 25 years, and also successfully entered other sectors ranging from oil to telecommunication and retail, according to Motilal Oswal Financial Services’ Annual Wealth Creation Study, whose 25th edition was released here on Tuesday.
It pointed out that much of the RIL’s gains came in the last five years when it added Rs. 4.4 trillion in wealth from 2015.
IT and financial companies like Infosys and Bajaj Finance also figured among the fastest and biggest wealth creators.
“Over 1995 to 2020, the Sensex rose from 3,200 levels in March 1995 to 29,500 by March 2020 i.e. a compound annual growth rate (CAGR) of 9.2…(percent). Coincidentally, exactly 100 companies delivered returns higher than 9.2…(percent)… We call these 100 the Fastest Wealth Creators,” the MO report said.
Top 20 of the fastest wealth creators gave the equivalent of 20 percent returns every year. This included Infosys whose share price grew at the rate of 30 percent over the last 25 years. Fevicol adhesive maker Pidilite Industries, and Eicher Motors, makers of the Royal Enfield brand of motorcycles, Berger Paints India and Britannia Industries are also in the list.
The consumer sector companies accounted for the bulk of wealth creation over the last 25 years, with nearly Rs 12 trillion, followed by the oil and gas segment, with Rs 6.9 trillion.
(VP)