BusinessTATA Group VS Adani Group

TATA Group VS Adani Group


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TATA Group VS Adani Group

In July of this year, Gautam Adani surpassed Bill Gates to overtake him as the fourth-richest person on the planet. Many people are surprised by Gautam Adani’s climb to power. His wealth climbed 19 times between 2017 and 2022, from $6 billion to $115 billion.

He is currently running against second-generation billionaire Mukesh Ambani of RIL. The media frequently makes jokes about their rivalry. Not just Reliance, but even the Adani group and Tata are now competing against one another.

In this post, Tata Group VS Adani Group will be compared as two industry titans. Versus first-generation college dropouts, a multi-generational enterprise. We’ll examine their past, learn more about the businesses, and comprehend both company houses’ future goals. Things are about to become quite interesting. So let’s get going.

Tata Group

Tata Group Vs Adani Group – History & Ownership Structure

Eventually, we’ll come to the company comparison. Let’s learn about the two company empires’ histories first, though.

Adani Group

adani group

Gautam Adani, who was born in 1962, founded Adani Enterprises. The holding company for the Adani Group is called Adani Enterprises Ltd (AEL). In 1988, he established AEL as a trading business with holdings in a wide range of sectors, including mining, power, transmission, cement, ports, and renewable energy.

Adani Enterprises does not generate any revenue from the IT industry, in contrast to Tata. However, it has joined up with EdgeConneX, a preeminent provider of data center solutions, to enter the data center industry.

Currently, Gautam Adani is the organization’s chairman. Other members of his family are in key roles at other businesses.

1994 saw the listing of AEL. Since then, its share price has increased at a CAGR of 37% per year. The market capitalization of the firms in the Adani group as a whole is Rs. 1,755,000 crores.

Tata Group

Jamsetji Tata founded the company Tata in 1868 as a trading company. The group now offers a wide range of products, from software to salt. The largest conglomerate in India is the Tata Group. With businesses in more than 100 nations, it is widespread worldwide.

In 2022, the conglomerate’s expected yearly revenue was $128 billion. Its enormous scale can be understood by the fact that it made up 4% of India’s GDP in 2018.

Almost every industry is represented by the group, with leadership in the software, steel, auto, chemicals, and other fields.

The Tata Group’s holding company is called Tata Sons. Philanthropic trusts have more than 66 percent of the holding firm under their control. The Tata family owns a relatively modest percentage of the company. 18.4% of the company is owned by the Mistry family.

Tata Sons’ executive chairman at the moment is Natarajan Chandrasekaran. He has previously held a number of positions at other Tata enterprises and currently serves on the boards of other Tata Companies.

Tata Group Vs Adani Group – Listed Companies

Adani Group Companies

The Adani empire has numerous unlisted and nine publicly traded firms, including the most recent acquisitions. The names of the group’s publicly traded firms are shown in the table below.

Company NameIndustryCMP (Rs.)Market Cap (Rs. Cr)
Adani Green EnergyRenewable Energy2,137338,602
Adani TransmissionPower2,970331,273
Adani Total GasUtility2,878316,618
Adani EnterprisesHolding Company2,550301,019
Adani Ports and Special Economic ZonesMartime750158,417
Adani PowerPower272112,506
Adani WilmarFMCG62280,879
Ambuja CementsCement37173,697

More or less, we now understand AEL. We shall thus spend some time discussing the other three biggest Adani empire enterprises.

Adani Green Energy Ltd. (AGEL)

One of India’s biggest providers of renewable energy is AGEL. It currently has a 20,434 MW project portfolio. Utility-scale grid-connected solar and wind farm projects are developed, constructed, owned, operated, and maintained by the company.

The generated electricity is sold to power firms supported by the federal, state, and local governments.

There are presently 54 active projects, and 12 more are being built.

Adani Transmission Ltd. (ATL)

The Adani Group’s power transmission and distribution division is called ATL. Its 18,500 ckt km of transmission network is made up of different high-voltage AC transmission lines and substations, all of which it owns and manages. In addition, the business distributes electricity in Mumbai, India’s commercial metropolis.

Market experts are concerned about the company’s rising debt levels. In one case, it dealt Qatar Investment Authority a 25.1% share in AEML. It paid off debt using 1/3 of the money and saved the other 1/4 as a capital reserve.

Adani Total Gas 

The company Adani Total Gas, sometimes known as AGL, engages in the distribution of natural gas through pipes. It is the biggest city distribution firm in India. Gas is delivered by AGL to the commercial, residential, and industrial sectors. Additionally, it offers CNG for the transportation industry.

For the provision of city gas, it has a strategic alliance with Indian Oil Corporation. It is dispersed across 19 geographic regions in several Indian states.

Tata Group Companies

At this time, there are 20 publicly traded Tata firms, with a whopping market worth of Rs. 20,38,089 crores. The listed Tata firms are listed here.

Company NameIndustryCMP (Rs.)Market Cap (Rs. Cr)
Tata Consultancy ServicesSoftware3,1591,160,285
Titan CompanyLuxury2,319206,401
Tata MotorsAuto452162,500
Tata SteelSteel950114,314
Tata Consumer ProductsFMCG80674,056
The Tata Power CompanyPower23273,764
Tata ElxsiSoftware8,44152,208
The Indian Hotels CompanyHospitality25735,872
VoltasConsumer Durables99133,151
Tata CommunicationsTelecommunications1,06930,167
Tata ChemicalsChemicals88422,178
Tata Teleservices (Maharashtra)Telecommunications11322,100
Tata Investment CorporationHolding Company1,4437,260
Tejas NetworksTelecommunications4677,088
Rallis IndiaFertilizer2154,184
Tata CoffeeTea & Coffee2204,105
Tata Steel Long ProductsSteel5892,644
Tata MetaliksSteel7052,226

Let’s now quickly review the conglomerate’s three major businesses.

Tata Consultancy Services

The jewel in the Tata empire’s crown is TCS. With a net profit of Rs. 38,449 crores in FY22, it is a well-oiled business engine. Tata Steel reported a greater profit of Rs. 41,749 thanks to a rise in steel pricing, although historically TCS has been the group’s primary cash cow.

It is an IT services provider, and America and Europe account for the majority of its revenue. It offers software services to five important industries: manufacturing, retail & consumer business, banking, finance services & insurance, and communication, media & technology.

Tata Steel

This steelmaker, who benefited greatly from the commodity cycle, achieved record profits in FY22. It produces a variety of steel products, including those with a high value-added. These value-added goods have better margins and contribute to the business’s profitability.

The steel goliath has expanded both organically and inorganically throughout time. Prior to then, it bought Corus Group, Usha Martin, Rashtriya Ispat Nigam, and Bhushan Steel.

It has announced a stock split of 1:10, dividing one equity share with a face value of Rs. 10 into ten equity shares with a face value of Rs. 1.

Titan Company

The biggest jewelry retailer in the nation is Titan, which is also owned by renowned investor Rakesh Jhunjhunwala. It is the owner of several brands, including Sonata, Caratlane, Zoya, Mia, Tanishq, and Zoya.

The jewelry industry contributes 83% of the company’s earnings. On the back of 28,799 crores in revenue, it reported earnings of Rs. 2,173 crores in FY22.

It is one of India’s most favored businesses. Over the past 20 years, it has provided outstanding returns to its investors.

Tata Group Vs Adani Group – Future Plans

Tata Group Future Plans

  • In an endeavor to become a full-fledged digital participant, Tata has been stepping up the development of its digital infrastructure. The company is also quite optimistic about the field of electronic and communications vehicles.
  • In April 2022, the Tata Neu app was released. An all-encompassing application called Tata Neu enables customers to buy any goods or services provided by the Tata Group enterprises.
  • The previous year, it bought BigBasket and 1mg to advance its entrance into e-commerce.
  • To revive the Maharaja’s legacy, the group recently acquired loss-making Air India & Air India Express. When GoI acquired a majority stake in Air India in 1953, the airline became a government entity.
  • In addition, Tata joined the market for telecom equipment in 2021 after purchasing Tejas Networks.
  • In India, the electric vehicle market is being led by Tata Motors’ automobile division. By 2025, it intends to make the Jaguar brand totally electric. In addition to this, the business is developing a number of other EV models.
  • Tata Steel has estimated its capital expenditures for FY23 at Rs. 12,000 crores, demonstrating its confidence in the future of the steel sector.
  • Tata Power is not falling behind in the field of renewable energy either. The largest integrated power company in India is Tata Power. It has estimated a staggering capital expenditure of Rs. 75,000 crores over the following five years. The electricity subsidiary wants to increase the proportion of green energy from the existing 30% to 60%.

Adani Group Future Plans

The past several years have seen a lot of coverage of Gautam Adani and his businesses. Let’s examine significant advancements and the group’s course for the future.

  • For a staggering Rs. 80,000 crores, Adani purchased the world’s largest cement producers, ACC and Ambuja Cements, from Swiss construction materials producer Holcim. This shows how optimistic the organization is about the building industry.
  • Gautam Adani recently disclosed the group has budgeted $70 billion in the renewable energy sector, including green hydrogen, solar, wind, and hybrid.
  • Adani has teamed with Flipkart as a key partner in the e-commerce and technology space. For example, the two businesses have partnered to develop logistical and data center capabilities. Additionally, the Adani group invested in Cleartrip, a platform for trip aggregation that is a part of the Flipkart organization.
  • According to sources, the group is in discussions to raise $14,000 billion from SBI to construct a massive PVC manufacturing facility that will require a $19,000 investment.
  • Adani Data Networks, a subsidiary firm, has joined the 5G enterprise solution market by participating in the Department of Telecommunications’ 5G spectrum auctions.
Quick Comparison

We are now in a position to quickly compare both company groupings because we have come this far.

History: The Tata family has been in business for more than a century and has holdings in practically every industry. The Adani Group, on the other hand, is a young company since Gautam Adani is a first-generation billionaire.

Important Industries: Software, metals, chemicals, retail, and consumer goods are where Tata Sons gets the majority of its revenue. The power, utilities, energy, construction, and logistics industries are where Adani is most prevalent.

Debt: The majority of Tata Group firms have minimal levels of debt. Not only this, but Tatas have a spotless record of salvaging failing businesses and repaying their debt. The gross debt of Adani Group entities, however, rose to a record Rs. 2.2 trillion in May of this year. Adani Group does, however, principally business in capital-intensive sectors.

In Conclusion

The Tata Group has advanced considerably. Their contributions to the development of the nation, the creation of jobs, and the creation of riches are immeasurable. With their high PE ratios and substantial capital expenditure commitments, Adani enterprises, in comparison, are still in the growth phase.

Do you believe Tata may be hiding something from the public? Or will Adani access the markets dominated by Tatas by crossing international borders? In the stock market, it is claimed that time holds all the solutions. So let’s wait and watch how these businesses fare.

Abhishek Singh Negi
A keen learner and eager to learn about the finance world. Love to learn, travel and meditate.


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