Oil and gas companies Indian Oil Corporation, Reliance Industries and Bharat Petroleum Corporation dominate the Fortune 500 India list, which has been published in the December 2011 issue of Fortune India. It’s just the second year for a Fortune 500 India.
|Fortune 500 India 2011||Ticker||India ETF|
|1. Indian Oil Corporation||IOCL||EPI, PIN|
|2. Reliance Industries||RIL||EPI, PIN|
|3. Baharat Petroleum||BPCL||EPI, PIN|
|4. State Bank of India||SBIN||EPI, PIN|
|5. Hindustan Petroleum||HPCL||EPI,|
|6. Tata Motors||TTMT||EPI, PIN|
|7. ONGC||ONGC||EPI, PIN|
|8. Tata Steel||TATA||EPI, PIN|
|9. Hindalco Industries||HNDL||EPI|
|10. Coal India||COAL||EPI,PIN|
|11. NTPC||NATP||EPI, PIN|
|12. ICICI Bank||ICICIBC||EPI, PIN|
|13. Bharti Airtel||BHARTI||PIN|
|14. Larsen & Toubro||LT||EPI, PIN|
|15. Essar Oil||ESOIL||EPI|
|16. SAIL||SAIL||EPI, PIN|
|17. BHEL||BHEL||EPI, PIN|
|19. Maruti Suzuki Inida||MSIL||EPI,|
|20. TCS||TCS||EPI, PIN|
|Source: Fortune 500 India, IndiaETFs.com analysis|
More than 10% of the 2010 list of 500 companies have churned, noted the magazine’s editor D.N. Mukerjea in an India Infoline report. The bank sector lost the most ground, with 28 of 46 banks on the list falling in the rankings while automobile firms and their ancillary suppliers gained. Here’s something you don’t see on the Fortune 500 list of American-based corporations: 82 government-owned companies.
Eighteen of last year’s top 20 companies continued on the 2011 list. Gone this year are Mahindra & Mahindra and BSNL, which were #19 and #20. They were replaced by Maruti Suzuki Inida and TCS.
Calling the Fortune 500 India “a celebration of the size and might of India’s companies,” Mukerjea noted that the companies on the list grew sales by 21.5% and that the median 2011 growth was 25%.
The Fortune India 500 is compiled based on latest sales and gross revenue figures. It ranks the top 500 Indian companies (publicly and privately held companies for which revenues are publicly available) by their gross revenue after adjustments. Other data considered include year-over-year change on total revenues, net operating income, profits, assets, net worth, profit percentage of revenues, assets and net worth, dividend, and total salaries.
EPI, PIN: Fortune 500 India Holdings
The two largest India ETFs as determined by our ETF list are WisdomTree’s EPI and PowerShares’ PIN. They have numerous holdings in the top 20 of the Fortune 500 India list. EPI holds 19 of the 20 companies, and PIN has 15 of the 20 companies in its portfolio. In terms of Fortune 500 India top 20 companies being meaningfully weighted in each ETF, four are PIN‘s top 10 holdings and three are EPI‘s top 10 holdings.
- Reliance Industries is a top holding of EPI, INDY and INP and a #2 holding of PIN.
- ONG is a top holding of EPI and PIN.
- ICICI Bank is a top holding of EPI and INDY.
- NTPC and Bharti Airtel are top holdings of PIN.
Investors in EPI and PIN can rest assured knowing their exposure to “the size and might of Indian companies” is represented, at least from the top, in both ETFs.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.