India is home to many large business houses and some of them are fairly old and diversified. Some of these business houses have several companies which are listed on the stock markets and thus have external investors. Have you ever wondered how these large business empires control their subsidiaries, joint ventures, associates, and everything in between? Well, they do it through holding companies. Here is a list of the biggest holding companies in India.
A holding company is a business entity that may or may not manufacture or sell products or services but holds a controlling interest in other companies and greatly influences policy decisions of these companies. The latter part is a unique aspect of holding companies, although the degree of control on operational management can vary significantly.
Since the primary objective of a holding company is to exert control, it may do so by having over 50% equity stake in the investee company. Nevertheless, there are other ways to exert such control with even smaller shareholding.
Holding companies typically generate revenue from dividends, interest, rent, and royalties. Holding companies are sometimes called umbrella or parent companies and since they have significant equity interests in the group companies, they are often considered the crown jewels of their group.
Here are some of the biggest holding companies in India.
Tata Group is among the oldest and most successful business groups in India. It was established by entrepreneur and philanthropist Jamsetji Tata in 1868 as a trading enterprise primarily engaged in the opium and tea trade with Mongolia and China.
Tata Sons is the principal investment holding company and promoter of the Tata Group. Arguably, this is the most important of the biggest holding companies in India. The company is the owner of the TATA brand name and its trademarks. Around 66% equity capital of the company is held by philanthropic trusts endowed by members of the Tata family.
Tata Sons has around 100 companies in its portfolio; among these, 14 are listed on the exchange. As of December 31, 2023, the holding value in these 14 listed companies of Tata Sons exceeded INR 15,95,815 crore, which includes Tata Consultancy Services, Hemisphere Properties, Tata Chemicals, Tata Communications, Tata Consumer Products, Tata Elxsi, Tata Investment Corporation, Tata Power, Titan, Trent, Tata Teleservices, Tata Motors, Indian Hotels Company, and Tata Steel. Among these, the company has the largest holding in Tata Consultancy Services with a stake of 72.38% worth INR 11,04,979 crore, and the second largest holding is in Tata Motors with a 43.70% stake worth INR 1,37,348 crore.
Read Also: Best Foreign MNC Stocks Listed in India
Another holding company from the Tata group is Tata Investment Corporation, earlier known as The Investment Corporation of India. The company is primarily involved in investing in long-term investments such as equity shares and equity-related securities.
Tata Investment Corporation Limited was promoted by Tata Sons in 1937 under the name of The Investment Corporation of India, which became a publicly held company in 1959. The aim of launching the company was to help set up and nurture small and medium-sized companies. The company invests in Tata and non-Tata companies.
The company has invested in 85 companies as of March 31, 2023, out of which 7 are quoted, and the value of these quoted investments stood at INR 16,133 crore as of December 31, 2023.
The portfolio of the company consists of Tata Chemicals, Tata Consumer Products, Tata Elxsi, Tata Motors, Tata Steel, Tata Consultancy Services, and Trent. Among these companies, the company has the largest stake in Trent, worth INR 6,180 crore.
Seth Shiv Narayan Birla laid the foundation stone for the House of Birla by initiating trading in cotton. In the early 20th century, his son Ghanshyam Das Birla took the legacy further and established industries in critical sectors such as textiles and fiber, aluminum, cement, and chemicals.
Aditya Birla Capital acts as the holding company for the financial services business of the Birla GroupBangalore Stock Exchange. The company has aggregate assets under management worth INR 4,10,000 crore.
The portfolio of the company consists of Aditya Birla Finance, Aditya Birla Health Insurance, Aditya Birla Housing Finance, Aditya Birla Insurance Brokers, Aditya Birla Money, Aditya Birla Sun Life AMC, Aditya Birla Sun Life Insurance, Aditya Birla Sun Life Mutual Fund, Aditya Birla Sun Life Pension Management, and Aditya Birla Asset Reconstruction Company.
Read Also: Biggest Unlisted Companies in India
Another company from the house of Birla, Pilani Investment and Industries Corporation, is a core investment company that mainly invests in Birla Group companies. The company is named after the place in Rajasthan from where the Birla clan originated.
As of December 31, 2023, Pilani Investment holds stakes in seven companies with a net worth of over INR 9,689 crore, including Aditya Birla Fashion, Century Textiles, Vodafone Idea, Jay Shree Tea and Industries, Kesoram Industries, Mangalam Cement, and Ultratech Cement, with the largest stake of 33.11% worth INR 5,244 crore in Century Textiles.
Bajaj Holdings and Investment is a part of India’s leading conglomerate, the Bajaj Group, founded by freedom fighter and philanthropist Jamnalal Bajaj in 1926. The group’s journey began with a sugar factory in Lakhimpur Kheri, Uttar Pradesh, which evolved into Bajaj Hindustan Ltd. In 1945, Bachraj Trading Corp. Pvt. LtdPune Investment. was established for the sale of imported two- and three-wheelers, which later became Bajaj Auto Ltd.
As part of the group’s restructuring exercise, Bajaj Holdings and Investment was demerged from Bajaj Auto, and all manufacturing operations were transferred to Bajaj Auto while strategic operations were transferred to Bajaj Finserv. All remaining businesses, assets, investments, and liabilities remained with the holding company which also holds over 30% stake in Bajaj Auto and Bajaj Finserv.
As of December 31, 2023, the value of the company’s equity investments stood at INR 185,685 crore. Bajaj Holdings and Investment’s portfolio includes Bajaj Electric, Bajaj Auto, Bajaj Hindustan Sugar, Bajel projects, Hercules Hoists, Maharashtra Scooters, Mukand, Padmanabh Alloys, and Polymers, and Tree House Education and Accessories, with the largest holding of 39.19% in Bajaj Finserv worth INR 97,767 crore.
Read Also: Top Bootstrapped Companies in India
Sajjan Jindal – son of industrialist OP Jindal – founded the JSW Group in 1982 by acquiring a re-rolling mill from Piramal Steel, which was later renamed Jindal Iron and Steel Company (JISCO)Kanpur Investment. JISCO was later merged with Vijayanagar Steel Limited (JVSL) to form JSW Steel.
JSW Group is ranked among India’s leading business houses. They have a presence in various sectors, spanning across the steel, energy, infrastructure, cement, and paint sectors.
JSW Holdings is primarily engaged in the business of investing in its group companies. The company has investments in quoted and unquoted companies.
Among unquoted companies, JSW Holdings has a 43% stake in Sun Invest Pvt Ltd and a 50% stake in Jindal Coated Steel Pvt Limited. In quoted companies, it holds six companies with a net worth of INR 14,542 crore, which includes Hexa Tradex, Jindal Steel and Power, Jindal Stainless, JSW Energy, JSW Steel, and Nalwa Sons Investments. Its largest holding is in JSW Steel standing at 7.42% worth INR 14,161 crore.
Read Also: Bira 91 Unlisted Share PriceLucknow Stock
The Bengal and Assam Company was established as Bengal and Assam Investors Limited in 1947. Since its inception, it has engaged in the business of holding investments and other financial assets, mainly in JK Group companies.
As of December 31, 2023, Bengal and Assam Company publicly held five companies with aggregate value exceeding INR 10,119 crore. The portfolio of the company includes, Peoples Investments, JK Laxmi Cement, Udaipur Cement Works, Umang Dairies, and JK Tyre. Among these, they have the largest holding in JK Tyre at 49.86%, worth INR 5,725 crore.
Jaipur Investment