India’s biggest state-owned companies ranked by net sales
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Reviewed by Robert C. Kelly
India is a fast-developing country that adopted a mixed economic system post-independence in 1947, with the government remaining involved as a majority owner in several key industries.
In tribute to their success, two Indian companies made it onto the Fortune Global 500 list for 2023. Four of these companies are in the public sector.
Here we take a look at the five largest state-owned publicly-traded companies in India by net revenues. The companies ranked here are majority-owned by the state and are called Public Sector Undertakings (PSU).
Key Takeaways
- IndianOil Corp. is India’s biggest company and ranks 94th on Fortune’s Global 500 list for 2023.
- All five of India’s biggest companies are in the oil and gas or banking sectors.
- Like all essential industries in India, these companies are majority-owned by the government.
1. IndianOil Corporation Ltd. (BSE: 530965, NSE: IOC)
IndianOil Corp. is India’s largest public company and ranks 94th among Fortune’s Global 500 for 2023.
According to the latest figures, for 2023, Indian Oil’s revenues were $94.87 billion, a drop of 6.51% over a year earlier. The previous year saw 41.72% growth in revenue.
India is the world’s third-largest energy consumer, and the state-owned IndianOil is the country’s flagship energy major with a 44.6% market share. Founded in 1959, its core business is refining, transporting, and marketing petroleum products.
The company has a workforce of over 31,095. In the 2022-2023 fiscal year, its refinery throughput increased to 72.41 from 67.6 MMT the previous year and its net profit decreased 70.66% from the previous year to 8,242 Crore. (One crore is equivalent to 10 million Indian rupees.)
2. Bharat Petroleum Corporation Ltd. (BSE: 500547, NSE: BPCL)
According to the latest figures, for 2023, Bharat Petroleum’s revenues were $53.59 billion dollars, which dropped by 6.65% over the past year. The previous year saw 33.78% growth in revenue.
BPCL was established in 1952 and taken over by the Indian government in 1976. It operates crude oil refineries at Mumbai, Bina, and Kochi and sells petroleum products.
The company logo is a familiar sight of Indian roads thanks to its network of over 18,600 fuel stations.
In the 2022-2023 fiscal year, its refinery crude throughput slightly decreased to 38.53 MMT from 35.89 MMT the previous year and its net profit was 2,131.05 Crore.
3. State Bank of India (BSE: 500112, NSE: SBIN)
The State Bank of India had revenues of $37.61 billion in 2023, giving it a ranking of number 235 in the Fortune Global 500.
Headquartered in India’s financial capital, Mumbai, India’s largest commercial bank was originally the Imperial Bank of India established in 1921. In 1955, India’s central bank took a controlling interest in it, and in 2007 transferred its 59.7% stake to the central government.
SBI has deposits of over 44 trillion rupees, has about 270 million debit card users, and has a network of 65,627 ATMs in India.
It reported a net gain of 1.45 billion rupees in the 2023 fiscal year.
4. Hindustan Petroleum Corporation Ltd. (BSE: 500104, NSE: HINDPETRO)
Hindustan Petroleum, which engages in the refining of crude oil and marketing of petroleum products, was formed in 1974 when the government took over two refining companies belonging to the private sector.
In the 2023 fiscal year it recorded refining throughput of 19.09 MMT and saw a net loss of 8.97 billion rupees.
5. Oil & Natural Gas Corporation Ltd. (BSE: 500312, NSE: ONGC)
Oil & Natural Gas Corporation had $77.52 billion in revenue in 2023, a small decrease from the previous year with $9.18 million in profits.
Founded in 1956 by the government, ONGC is India’s leading upstream petroleum company and is among the most profitable PSUs in the country. It produces 1.2 million barrels of oil equivalent per day and is responsible for discovering 83% of established reserves in the country. In the 2023 fiscal year, it reported net profit of 388.29 billion rupees and produced 21.49 MMT of crude oil, not including its share in joint ventures.
Investing in India Stocks
Stocks of all the companies mentioned above except for SBI are included in the holdings of the WisdomTree India Earnings Fund (EPI).
Other exchange-traded funds that offer exposure to some of these stocks are Invesco India ETF (PIN) and Franklin FTSE India ETF (FLIN).
What Are India’s Major Exports?
India’s biggest exports include petroleum products, gems and jewelry,and textiles and clothing.
What Kind of Economic System Does India Have?
India’s economic system can best be described as mixed. The government retains a monopoly on essential services such as banking and energy. However, private enterprise is encouraged. This seems to be working. India’s economy is now the world’s fifth largest in terms of gross domestic product.
Can I Invest in the Stocks of Indian Companies?
Individual investors from other countries can’t trade directly on India’s stock exchanges. However, U.S. investors can invest in India’s companies via mutual funds, exchange-traded funds, and exchange-traded notes that focus on India’s publicly traded stocks.
Some of India’s biggest companies trade in the U.S. as American depositary receipts. These include Infosys, HDFC Bank, and Wipro.
The Bottom Line
The companies that provide essential services in India are all majority-owned by the government of India. However, they also are publicly traded. Foreign investors who want a stake in India’s fast-growing public sector companies should consider U.S.-based exchange-traded funds or exchange-traded notes that focus on India’s fastest-growing sectors.
Read the original article on Investopedia.