Reliance Industries has emerged as the biggest wealth creator as it accounted for Rs6.3 trillion in wealth creation for the period between 1995 and 2020, said a report by the Motilal Oswal Financial Services.
Ambani owned Reliance industry, founded in 1973, started off as a yarn trading business in Maharashtra by Dhirubhai Ambani. It developed its wing in many sectors ranging from retail market to telecommunications and now has become an integral part of the economy of the country.
The closest rival was Hindustan Unilever which was at Rs 4.9 trillion.
IT major Infosys has turned out to be the fastest wealth creator during the 25-year period, while Kotak Mahindra Bank has been the most consistent wealth creator since 1995, showed the Motilal Oswal 25th Annual Wealth Creation Study 2020.
“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…(per cent). Coincidentally, exactly 100 companies delivered returns higher than 9.2…(per cent)... We call these 100 the Fastest Wealth Creators,” the report said.
The study also revealed that the consumer or the retail sector was the largest wealth-creating sector during the period under review.
In the last five years, Tasty Bite Eatables was the fastest wealth creator, RIL the biggest and Pidilite the most consistent wealth creator.
Of the 1,300 companies listed in 1995, only 100 companies have created meaningful wealth. The report noted that over 50 per cent of the current market cap is made up of listings post-1995.
