Burgundy Private Hurun India 500: Grand Release

Burgundy Private Hurun India 500 2023 was launched by Burgundy Private, Axis Bank’s Private Banking Business and Hurun India. This is the third edition of the list of the 500 most valuable companies in India. These companies are ranked according to their value, defined as market capitalization for listed companies and valuations for non-listed companies. The cut-off date to arrive at this list was 30th October 2023. This list refers to companies headquartered in India only; state-owned companies and subsidiaries of foreign as well as Indian companies are not included.

To qualify for inclusion in the ‘2023 Burgundy Private Hurun India 500’ list, companies are required to have a minimum value of INR 6,700 crore, equivalent to US$807 million. The average age of the companies in Burgundy Private Hurun India 500 is 38. The total value of the 2023 Burgundy Private Hurun India 500 companies is INR 231 lakh crore (US$2.8tn), which remains flat when compared with the inaugural edition published in 2021. Both BSE SENSEX and NIFTY 50 rose by 7% year on year, whilst the S&P BSE 500 was up 9.5% over the same period last year.

Amitabh Chaudhry, Axis Bank’s Managing Director and Chief Executive Officer, shared his perspective on the unveiling of the Burgundy Private Hurun India 500:

“Burgundy Private is delighted to partner with Hurun India again, in celebrating India’s 500 most valuable companies. The 3rd edition of the report encapsulates the resilience, dynamism, and competitive spirit ingrained in Indian businesses in a growth challenged world.

Despite headwinds – that of continuing fiscal consolidation, higher domestic interest rates, tightening liquidity conditions, as well as slowing exports; India’s economic growth has been impressive. Indian companies and their leadership deserve great acclamation for their contribution to the country’s unique positioning today. As India heads towards a $5 trillion economy, it will be critical to leverage emerging trends like China plus 1, MSME, and ‘Bharat’ that will act as engines of growth for the country.”

“The companies featuring in the ‘2023 Burgundy Private Hurun India 500’ list have collectively created a value of INR 231 lakh crore for their stakeholders. As India’s leading wealth management franchise, Burgundy Private has closely witnessed this value creation. The India 500 companies have made significant contributions towards nation-building, representing 28% of India’s GDP and employing 1.3% of the country’s workforce.

What is noteworthy in the report is that 52 companies in the list are less than a decade old, promising to shape the next decade with their entrepreneurial spirit and digital innovations. The presence of women on the boards of 437 companies is another commendable highlight that underscores commitment towards diversity and inclusivity.”

“At Axis Bank, our commitment to building an institution capable of withstanding the challenges of time, remains steadfast. Having successfully concluded the acquisition of Citibank’s India consumer business, the Bank has etched out a unique position for itself in the Indian banking space. The Bank’s wealth management business, which is among the largest in India grew by 78% YOY.

Burgundy Private now advises 35 of the Forbes list of 100 richest Indians. Besides, our ability to deliver ‘One Axis’ as a full-service bank, offering varied solutions across all financial services is a key area of distinctiveness. With India entering its most important decade, we look forward to partnering with the companies on the 2023 Burgundy Private Hurun India 500 list, as they move towards the next milestone in their growth journey.”

The 2023 Burgundy Private Hurun India 500 is a list of the 500 most valuable companies that are headquartered in India. Government/ State-owned companies and subsidiaries of foreign as well as Indian companies are excluded. Although the cut-off date for the list is 30th October 2023, we have made an exception for Global Health, Bikaji Foods International and Five-Star Business Finance for whom we have considered the closing market cap of the listing day. The aforementioned companies were in the process of going public/ getting listed during the cut-off date.

Valuing private companies is as much an art as it is a science. Hurun India may have missed some companies, but our endeavour is to develop the most comprehensive report of its kind with an objective to identify and acknowledge India’s top businesses. Hurun Report’s team of researchers have travelled the length and breadth of the country, cross-checking information with entrepreneurs, industry experts, journalists, bankers and other sources of publicly available data.

For unlisted companies, Hurun Research’s valuation is based on a comparison with their listed equivalents using prevailing industry multiples such as Price to Earnings, Price to Sales, EV to sales, EV to EBITDA. Other methodologies such as Discounted Cash Flow and Tobin’s Q are also used. Financial information used is from the latest available annual reports or audited financial statements.

Anas Rahman Junaid MD and Chief Researcher, Hurun India said:

“The Burgundy Private Hurun India 500 is not just a list; it’s a vivid narrative of India’s economic renaissance. With its collective value surpassing the GDPs of prominent nations, this list exemplifies India’s ascent as a global economic powerhouse. The upward shift in the qualification threshold mirrors the country’s escalating financial robustness. The significant representation of women on boards and the leadership of professional CEOs reflect a progressive, inclusive corporate culture.

Additionally, the list’s employment impact, driving the livelihoods of 70 lakh people, indicates a substantial socio-economic contribution. The surge in the number of companies registering remarkable value growth is a testament to the vibrant and resilient nature of the Indian market. This list is not just about numbers; it’s a mirror reflecting India’s dynamic economic landscape, marked by innovation, diversity, and a relentless pursuit of excellence.”

“Hurun India is delighted to partner with Burgundy Private, Axis Bank’s Private Banking Business, to release the “2023 Burgundy Private Hurun India 500.” If you want to understand what is really going on, in the Indian economy, understanding the stories behind the ‘2023 Burgundy Private Hurun India 500’, India’s most valuable companies, is a good place to start.”

“The 2023 Burgundy Private Hurun India 500 showcases a remarkable combination of history and innovation, featuring companies that range from the 235-year-old EID-Parry to startups established as recently as 2021. With an average age of 38 years, this list is a strong evidence of India’s changing economic landscape – respecting the past, flourishing in the present, and creating for the future. This mix of old wisdom and new-age entrepreneurship demonstrates India’s strength and flexibility, making it a strong competitor on the global economic stage.”

“The 2023 Burgundy Private Hurun India 500 list shows the economic impact of not only major cities like Mumbai and Bengaluru, but also of cities like Thrissur, Kochi, and Surat that play important roles. Thrissur, known for its culture and finance, Kochi, a rising coastal economy, and Surat, a global hub for diamond polishing, each have their own place in India’s economic story. Their presence in this prestigious list highlights the diverse and widespread nature of economic growth across India, demonstrating how every city, no matter its size, adds to the nation’s increasing economic strength.”

“The 2023 Burgundy Private Hurun India 500 list is a strong confirmation of the Indian economy’s solid performance in all sectors. The increase in new entrants from industrial goods shows India’s rising manufacturing growth. Even though startups faced a difficult year, the entry bar grew by 13% to INR 6,700 crores. At this pace of growth, the cut-off to enter Burgundy Private Hurun India 500 in five years, might be close to INR 10,000 crore. As the funding situation improves, we expect more value creation from startups, especially in sectors that focus on the future, like AI, SpaceTech, EV, and more.”

“The 2023 Burgundy Private Hurun India 500 companies represent India’s economically strongest businesses. The reason is self-explanatory as these companies have a total value of US$2.8tn, which is almost 90% of India’s current GDP, i.e. they are the backbone of India’s economy. Together, these 500 companies had combined sales of INR 79 lakh crore and employed 7.0 million staff, which is more than the working population of Switzerland.”

“The ‘2023 Burgundy Private Hurun India 500’ is a vivid showcase of India’s diverse industrial prowess. With financial services leading the way, led by HDFC Bank, Kotak Mahindra Bank, Axis Bank, and so on, and the healthcare sector making a strong showing through companies like Sun Pharma and Dr. Reddy’s Laboratories, the list reflects the multifaceted nature of India’s economic landscape.

Other key sectors include consumer goods, championed by firms like ITC and Hindustan Unilever; information technology, with frontrunners like TCS and Infosys; and automotive, with major players like Maruti Suzuki and Tata Motors. This diverse industrial representation not only underscores India’s economic resilience and adaptability but also highlights its capability to foster growth across various sectors, propelling the nation towards a formidable position on the global economic stage”

“Value is perhaps the best way to measure a company’s performance since value takes into account not just the current performance of a company but also its future potential. If a business is valued at US$30bn, for example, it means that investors believe it is going to deliver profits of US$30bn within ten years. This changes as new information comes to light, such as the impact of wars, inflation, government data, regulations, and general sentiment.”

“The ‘2023 Burgundy Private Hurun India 500’ provides a detailed look into India’s changing business landscape, marked by impressive growth in both established and emerging sectors. HDFC Bank tops the value growth chart with an addition of INR 2,92,319 crore, followed by Larsen & Toubro and ITC, showing strong performance in the financial and consumer goods sectors.

In terms of percentage growth, Suzlon Energy shines with a remarkable 436% increase, followed by Jindal Stainless at 395% and JSW Infrastructure at 310%, indicating a rise in renewable energy and infrastructure development. For instance, INOX Wind, which was on the path to insolvency in 2017, registered a 450% growth in value and stormed into 2023 Burgundy Private Hurun India 500.”

“It is also encouraging that Zomato, which gained circa INR 40,000 crore, is amongst the biggest gainers by value, underscoring the role that Indian startups would play in future value creation. The performance of Indian Unicorn IPOs, marked by a collective valuation increase of INR 62,837 crore, reflects investor enthusiasm in the technology and e-commerce sectors. Although Paytm shares gained 42% since last year during the period under review, the recent RBI ban has wiped off INR 16,000 crores in value for Paytm in 2 days since 1 February 2024.”

“In contrast to the Fortune India 500 which is ranked by sales, the ‘2023 Burgundy Private Hurun India’ 500 is ranked by value. Hence, 53% of the 2023 Burgundy Private Hurun India 500 companies do not feature in Fortune 500 India.

The third edition excludes companies such as 3M India and All Cargo Logistics, which had large toplines but did not generate enough value to cross the INR 6,700 crore threshold. Additionally, the ‘2023 Burgundy Private Hurun India 500’ does not include state-owned companies, like the State Bank of India, Oil and Natural Gas Corporation, and others.”

“Hurun has been promoting entrepreneurship through its lists and research since 1999. Having started with the rich lists and philanthropy lists, Hurun has gone on to rank unicorns and recently added the 500 most valuable companies, on a global level as well as for individual countries, most significantly China and India.”