RIL top wealth creator; Reliance Infra a destroyer: 14th Motilal Oswal Annual Wealth Creation Study

Reliance Industries Ltd has emerged as the country's largest wealth creator for the third time in a row, according to the 14th Motilal Oswal Annual Wealth Creation Study, released today. It adds that Mukesh Ambani's company is likely to retain its top position over several years as it pursues exploration and production activity.

It says the company created Rs1,514 billion (Rs1.5 lakh crore) worth of wealth, 15.6 per cent of the total created, in 2008-09. Wealth creation has been calculated in the latest study as a change in the market capitalisation of companies between 2003 and 2009, adjusted for corporate events such as mergers, demergers, fresh issuance of capital, buyback, etc.

In contrast, brother Anil Ambani's Reliance Infrastructure ranks among the top 10 wealth destroyers along with Tata Motors, Tata Steel, ICICI Bank and scam-hit Satyam Computer Services.

Unitech has been the fastest wealth creator for the second time in a row. Its stock price CAGR (compounded annual growth rate) is a staggering 122 per cent. Five companies - HDFC, Sun Pharma, Reliance Inds, Hero Honda and Infosys - have remained among the top 100 wealth creators in the past 10 years. State-owned National Mineral Development Corp (NMDC) has the unique distinction of featuring in both the biggest and the fastest wealth creators' list.

The study says Bharti Airtel, RIL's closest competitor, faces ''sector headwinds'' as it fights to retain its place in the wealth creation stakes.

Six firms have figured in the top 10 wealth creators for three consecutive years: RIL, Bharti, Larsen & Toubro, and the state-owned companies Oil and Natural Gas Corp, Bharat Heavy Electricals Ltd, and Steel Authority of India Ltd.