can fund itself more cheaply than India’s government. So is their level of debt—a blessing given that India Inc pays average interest of 9.25% on credit, three times as much as a typical American firm.Companies in the second group are unusually lucrative for less deserving reasons. They include state-controlled remnants of Nehruvian socialism. They can count on cheap loans from state-owned banks and, often, cosy monopolies .
The last bucket blends the other two. These are huge private companies with mediocre returns but a knack for navigating both India’s labyrinthine bureaucracy and its corridors of power. They operate in heavily regulated industries: Larsen & Toubro, an engineering group, builds roads; Hindustan Zinc, a subsidiary of London-listed Vedanta Resources, is a big miner.
The canonical example is Reliance Industries. Its net income last year of $5.2bn made it India’s most profitable firm—and accounted for 13% of the country’s corporate profits. Its businesses range from a core refining operation to the disruptive Jio mobile network. Despite negative cashflow and a meagre 7% return on capital, investors cannot seem to get enough of it.
Angela MERKEL calls for the increased participation of EMPLOYEES-CUSTOMERS-USERS in the decisions & management of the company, to the EQUAL of shareholders & managers, as well as a financial gratitude of the company's profits. An inventive & hyperactive economic democracy
That is nothing compared to Korea's top 2 (two) companies's share of profits at 30 percent of all corporate profits.
Not only for India but any country in the world concentration of corporate profits at such a level is not a good sign in the long run.. ultimately this adversely affect political decision making...
Reliance Industries Q2 net profit jumped 18%to record Rs 11,262 crore ($1.6 bn) on turnaround in refining margins last year .
Bruh, use a comma.
Eu tô vendo direitim o elefante rindo!
Epitome of crony capitalism under Modi...
Must be true, because RelianceIndustries reliancejio JioCare takes money from subscribers but provides no service. Money cheated out of customers flows straight to their bottomline. Customers have no choice with only two service providers, Airtel airtelindia equally bad.
Can't get sick enough of dumb obese western propaganda. Yes, the elephant in a farm is totally relevant as it was in space mission article. We all travel on elephants and charm snakes. Btw how many schools you shooting at this week ?
TrussLiz is correct to call for new WTO rules to regulate how State owned enterprises are funded. The UK is at its best when it leads by example, so should publish its own industrialSubsidies legislation (a UKStateAid regime, including rules on Stateownedenterprises).
Narendra Modi chums, Ambani, Adani, Tata, Mahindra account for most these profits. These names along with RSS Upper Caste Hindu Terrorist Organization rule India. Elections are just a facade. RSS4India friendsofrss narendramodi PMOIndia rashtrapatibhvn