India’s Top Wealth Creators and Destroyers

Bangalore:  India’s biggest private-sector company Reliance Industries, by market capitalization, is the biggest wealth creator for the fifth time in a row from 2007, reveals Motilal Oswal’s “Wealth Creation Study 2006-11” report. Suzlon and Anil Ambani‘s Reliance Communication topped the list of the top wealth destroyers, where RCom alone accounted for a destruction of Rs 25,200 crore.

 The survey evaluated the top 100 wealth creating companies during the period of 2006-11. The study highlighted the fact that leaving behind big multinationals, Reliance has emerged as the biggest wealth creator. The company has managed to exceed the record of Hindustan Unilever (HUL), which has appeared as the biggest wealth creator four times in a row from the year 1996 to 1999. During the past five years, Reliance Industries has added up almost 1,74,200 crore of investor wealth. The other top five wealth creators listed by the study are TCS, SBI, Infosys and NMDC. However, illustrating a more extensive wealth creation, the contribution of the top 10 wealth creators has been falling steadily from 76 percent in 2003 to 42 percent in 2011.

The report also demonstrated the list of the biggest wealth destroyers and stated that the total wealth destroyed equals to 3,25,400 crore which is 15 percent of the total wealth created. Out of the total wealth destroyed companies, Suzlon, Reliance Communication and Satyam Computers together accounted for 25 percent of the total wealth demolished. Amid sectors, capital Goods, telecom, technology, construction/real estate accounted for almost 56 percent of shareholder wealth destroyed.
According to the last survey which reported the financial years from 2006 and 2011 (April-March), total wealth ruined stood at almost 15 percent of total wealth created which was only 2 percent.

Identifying the top 5 most consistent wealth creators, the report placed Kotak Mahindra first in the list followed by Sun Pharma, Asian Paints, and HDFC Bank. It is also clearly visible from the report that the private sector financials are appearing as blue chip stocks with high, and more importantly, persistent growth achievement, giving an example of HDFC BANK which for the last 38 consecutive years remitted 30 percent PAT growth.

Sanwaria Agro topped the chart among the fastest wealth creators between Financial Year 2006-2011, as the company added up 43 billion to its market cap at a CAGR of 119 percent per annum.  Companies like Adani Enterprises and Bhushan Steel emerged second and third, adding growth of 86 percent and 64 percent, respectively. However, the report warns that some of these fastest wealth creating stocks could be temporary multi-achievers, developed by the blend of periodical feature of business and questionable quality of management. The report indicated that Sanwaria Agro has increased its share of wealth from 12 percent in FY06 to 24 percent in FY11 .

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Top trusted Brands of India

There are six drivers of trust: stability, innovation, relationship, practical value, vision, and competence; all these are equally correlated with brand trust states ifm in depth research and strategies. An independent survey conducted for Brand Equity by Nielsen is the benchmark for trust, which every brand wants to achieve. Here is a list of the most trusted brands in India.

Nokia

One of the early entrants, Nokia has established itself as the market leader in the mobile devices market in India, by building a diverse product portfolio and offering products across various categories. With the launch of its Ovi store, Nokia is renewing itself to be at the forefront, after the customer-driven devices by other companies started eating into Nokia’s market-share. The company is driven by consistent performance, delivering ‘more’ than the promise every day.

Colgate

The company made a modest start in 1937 and used hand-carts to distribute its Dental creams. Today Colgate-Palmolive has one of the widest distribution networks, a logistical channel spanning around 4.5 million retail outlets across the country. The company has grown with a outstanding record of enhancing value for its strong shareholder base. Colgate was ranked as India’s Most trusted Brand across all categories by Brand Equity’s Most Trusted Brand Survey for four consecutive years from 2003 to 2007.

 

Lux

Lux promises beauty and glamour and has been changing trends, evolving the beauty needs of the customers since 1929. It offers a wide range of soaps and body washes, with unique elements to make customers hooked on to it. The company feels that excitement can be created; but trust must be earned. The challenge before marketers is to deliver excitement in a way which enhances the trust, rather than violating it.

Lifebuoy

The company was launched 1895, and has ever since been synonymous with health and value. It was re-launched in 2002, 2004, and again in 2006, as having a superior formulation, new fragrance, and contemporary shape. Its vision is to make a billion Indians safe and secure by meeting their health and hygiene needs.

Dettol

Dettol is the gold standard for its proved ability to kill germs effectively and is recommended by experts. The brand is up to date with the changing lifestyle and has launched products like sanitizers, shower gels to meet the current trends. According to industry experts, even if Dettol is able to achieve a sales target of Rs 1,000 crore, it will be the second company, after Hindustan Unilever Limited to achieve this milestone.

Horlicks

Horlicks enjoys more than half of the health-food market, which makes it the leader in its segment. It went a major revamp in 2003 to increase its relevance, and has added more variants – biscuits, instant noodles and more to its folds, making it a family brand from mothers to kids.

Pepsodent

Pepsodent was launched in 1993, as the first toothpaste with unique anti-bacterial agents, which addressed the needs of the consumers to check germs even hours after brushing. In 2002, it launched a pack which contained a ‘germ indicator’, which enabled the consumers to see the efficiency of the toothpaste. It also offered Dental Insurance in the same year, to demonstrate the confidence it has on the superiority of its product. Its most recent campaign aims to educate consumers on the need for germ protection through the night

Tata Salt

In 1983, Tata Salt became the pioneer in the branded salt movement in India. It was the first of its kind to use vacuum evaporation technology. It campaigns itself as ‘desh ka namak’ (salt of the nation), which has lent voice to the emotional connect and warmth. It has earned the trust of the people by insisting on usage of salt for taste and adequate amount of iodine for complete wellness. It appeals across regions and has become an integral component of majority of Indian kitchens.

Britannia

Britannia has always been recognized for its innovative approaches to products and marketing them. It has been India’s biggest and pre-eminent food brand. Its 50-50 Maska-Chaska campaign became one of the country most successful product launches. In 2002, Britannia’s New Business Division formed a joint venture with Fonterra (the world’s second largest diary), which led to the birth of Britannia New Zealand Foods. Its vision and accelerating graph made Forbes magazine to include Britannia’s name in “one amongst the Top 200 small companies in the world”.

Ponds

Ponds, is one of the most dependable names in the skin-care products for ladies. It offers affordable products, which cater to individual skin-types. Ponds’ range of talc and creams has been among the trusted brands for Hindustan Unilever Limited (HUL), which had six of its brands in the top list.

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