By FMTeam Corporate groups or holding companies are those that handle all the subsidiaries of one company, and that way, such holding companies can manage the operations, assets, and investments of all the subsidiary companies that fall under them. Thankfully, in India, there are literally some super big holding companies that are there to oversee many well-known companies in India right now. That’s the very reason we are here with a list of the top 5 leading and most renowned holding companies in India. So, let’s get to the list:
1. Tata Sons
See, when there is a conversation going on about the big businesses of India, you can’t just skip Tata Group’s name, that’s just not an option. And do you know which is the company that looks over all the subsidiaries of Tata Group right now? Yes, it’s Tata Sons. This huge company, which runs the Tata Group, has been constantly looking for new ways to do things. And talking about something recent, did you know that Tata Sons is putting more than $1 billion into Tata Digital? With this move, they will be able to explore tech and e-commerce in ways they have never been able to before. That’s not all, though. Due to problems with regulations, Tata Sons is using a strategy to avoid having to go public by 2025, which shows how good they are at financial planning, you know?
2. Reliance Industries
With big plans and brave moves, Mukesh Ambani, the ever-ambitious CEO of Reliance Industries, continues to lead the way. Want something recent? Well, in Jamnagar, they are building a factory for photovoltaic (PV) modules and a plant for energy storage batteries. Did you know that already? This is part of their big plan to switch to making hydrogen in a green way and be carbon neutral by 2035. Viacom18 and JioCinema are being merged by Reliance and The Walt Disney Company to make things more interesting in the digital world.
3. ITC Limited
When it comes to changing things, ITC Limited’s new ways of doing business are making changes. The big news? ITC Hotels Ltd. is the name of the company that took over ITC’s hotel business so that it can grow in its own right. This move to get rid of debt is expected to give the market a huge boost, that’s for sure. And talking about some recent stuff about this company, well, ITC’s recent “green logistics” program is in the headlines for all the good reasons. And yes, in terms of consumer spending, their FMCG segment is doing very well. In 2024, consumer spending will hit ₹32,500 crore, up 12% from 2023.
4. Adani Group
Sure, we all know that there were quite a lot of allegations by Hindenberg about Gautam Adani and the Adani Group in general, but despite all that trouble, this company has stepped back with one goal in mind, and that is to just grow even more. They’re putting a huge $100 billion into projects to change the way we use energy over the next ten years. Imagine renewable energy chains that include wind farms, solar parks, and green hydrogen production plants. Adani would be in charge of all of these, that’s for sure. The Khavda renewable energy park in Gujarat is a major project that will greatly improve India’s ability to use green energy. And just so you know, in 2023, 24, the Adani Group’s income went up by 55%.
5. Mahindra Group
The Mahindra Group is always on the cutting edge of new ideas and business growth, and we all know that already, right? Founded in 1945, it has evolved into a global leader, with a strong presence in industries such as automotive, aerospace, agribusiness, construction, and information technology. The Group’s flagship company, Mahindra & Mahindra, is renowned for its tractors and SUVs, while other subsidiaries, like Tech Mahindra and Mahindra Electric, showcase its innovations in technology and sustainable mobility. So no wonder we couldn’t complete this list without Mahindra Group, you know?
Conclusion
That’s all! Sure, there are many other big-name holding companies right here in India, but these are by far the leading and biggest ones. And once you get to know about these holding companies by going a bit in-depth, you’ll know what we are talking about.
Holding Companies FAQs
Q1. Why are holding companies important in India?
Ans: Holding companies play a crucial role in consolidating businesses, simplifying ownership structures, and fostering growth by centralizing strategic decision-making. They often help large conglomerates manage multiple businesses across industries efficiently.
Q2. Are holding companies regulated in India?
Ans: Yes, holding companies in India are regulated under the Companies Act, 2013. Additionally, listed holding companies must comply with SEBI regulations to ensure transparency and protect shareholder interests.
Q3. How do holding companies differ from parent companies?
Ans: While both terms are similar, a holding company owns the majority of shares in its subsidiaries, focusing on management and investment. A parent company, on the other hand, may actively manage the day-to-day operations of its subsidiaries.
Q4. Can a holding company protect its subsidiaries from financial risks?
Ans: Yes, one of the advantages of a holding company is the legal separation between itself and its subsidiaries. This structure helps protect the holding company and its other subsidiaries from financial or legal liabilities of a specific subsidiary.
Q5. What are some challenges faced by holding companies in India?
Ans: Holding companies in India often face:
- Complex regulatory frameworks.
- Double taxation issues in certain cases.
- Challenges in maintaining operational transparency across diverse subsidiaries.