Fall of India's Biggest Wealth Creators

Bangalore: Few of the biggest conglomerate Indian names have witnessed sharp fall during the last five years, revealed an analysis carried out by Economic Times. The study conducted an analysis of companies with a valuation of over 5, 000 crore and whose market capitalization has lost the charm from a peak in 2008, when the Indian economy has been the most optimistic.

The list comprises few of the hot shot names like the DLF, Anil Dhirubhai Ambani Group or ADAG companies etc. Over-leveraging, changes in government policies, aggressive overseas acquisitions and governance issues are considered responsible for the downfall.

1. DLF
MCap (Beginning 2008): 1,82,444.52 crore (1.82 trillion)
Current MCap : 47,189.89 (Rs 471.89 billion)
Change: -74 Percent

One of India’s largest commercial real estate developers, DLF has witnessed three-fourth of its market cap being eroded over the past five years. The company had market cap of over 1.8 lakh crore in 2008, which has now degraded to 47, 000 crore. At its debut, DLF aggressively acquired land banks or parcels which made the company very powerful within a short time span.

However, after the 2008 slowdown and the following years, the commercial property market lost steam, leaving the company to handle its huge debt burden.

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