In a remarkable turn of events, the market capitalisation of Tata Group, India’s largest conglomerate, has grown to a staggering $365 billion or Rs 30.3 lakh crore. To put this into perspective, the market value of the Tata Group now surpasses the entire economy of neighbouring Pakistan, which is estimated to be worth around $341 billion according to the IMF. This impressive feat highlights the incredible growth and success of the Tata Group, with several of its companies experiencing multibagger returns and contributing significantly to its market value.
The Power of Tata Consultancy Services (TCS)
Leading the charge is Tata Consultancy Services (TCS), the second-largest company in India and a true powerhouse within the Tata Group. With a valuation of approximately Rs 15 lakh crore or $170 billion, TCS alone is roughly half the size of Pakistan’s entire economy. While Pakistan faces economic hardships and an overwhelming debt burden, TCS continues to thrive, showcasing the strength and resilience of the Tata Group.
Multibagger Returns and Wealth Creation
The recent surge in the market value of the Tata Group can be attributed to the exceptional performance of several of its companies. Notably, Tata Motors and Trent have delivered outsized returns, while Titan, TCS, and Tata Power have also experienced significant rallies in the past year. In fact, at least eight Tata companies, including the newly-listed Tata Technologies, have more than doubled their wealth in the last 12 months. These companies include TRF, Trent, Benaras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering.
The Exceptional Resilience of Tata Group Companies
When we look at the performance of Tata Group companies listed on stock exchanges, the data reveals an impressive track record. Out of the 25 listed companies, only one, Tata Chemicals, has seen a decline in wealth over the past year. This speaks volumes about the consistency and resilience of the Tata Group, with the majority of its companies delivering positive returns and creating substantial value for shareholders.
The Unlisted Gems of the Tata Group
While the listed Tata companies have certainly contributed to the Group’s market capitalization, there is a whole other dimension to its might. Unlisted companies such as Tata Sons, Tata Capital, Tata Play, Tata Advanced Systems, and the airlines business (Air India and Vistara) possess significant potential for further growth. If we were to consider the estimated market value of these unlisted entities, the Tata Group’s power could easily increase by another $160-170 billion or more.
For instance, Tata Capital, which is required to bring out its IPO by next year according to RBI guidelines, currently commands a market value of Rs 2.7 lakh crore in the unlisted market. Additionally, Tata Sons, the holding company of the Tata Group, was
estimated to be valued at around Rs 11 lakh crore last year. It is also worth noting that RBI rules may lead to a Tata Sons IPO by September 2025, further bolstering the Group’s market capitalization.
India’s Dominance and Pakistan’s Challenges
While the Tata Group’s market cap may have surpassed Pakistan’s economy, it is important to acknowledge the vast difference in scale between the two nations. India, with a GDP of approximately $3.7 trillion, is eleven times larger than Pakistan and is projected to become the world’s third-largest economy by FY28, surpassing both Japan and Germany. Currently, India holds the fifth spot in terms of economic size.
On the other hand, Pakistan’s GDP, which experienced growth rates of 6.1% in FY22 and 5.8% in FY21, is estimated to have contracted in FY23 due to the devastating impact of floods that caused billions of dollars in damage. Moreover, Pakistan is faced with the challenge of meeting its external debt payments, with a debt-to-GDP ratio already exceeding 70%. The country’s foreign exchange reserves of approximately $8 billion only cover two months of essential imports, leaving little room for maneuvering.
Looking Ahead
The Tata Group’s extraordinary market capitalisation achievement is a testament to its robust business model, strategic investments, and the exceptional performance of its companies. With TCS at the forefront, the Group has managed to outshine an entire economy, highlighting the strength and resilience of Indian businesses on a global stage. While Pakistan faces numerous economic challenges, India continues to forge ahead, positioning itself as a major player in the global economy. The Tata Group’s success story serves as an inspiration and a testament to the potential of Indian companies to achieve remarkable heights.
