Conglomerates companies are diversify in many sectors. Therefore companies are combine of two or more firm in single business structure. And this forms group of companies that involves single parent company with different subsidiary. Hence, list of top Indian Conglomerates. Moreover, check big five media conglomerates.
History of Conglomerate
Company is popular as corporate structure. And they are symbol of power. But these companies buy other business at lower rates. Because, you have only method to measure company real value its return on investment (ROI). Due to this, if company had profits for longer period than its interest paid on loans.
Similarly, companies also improve in money market and capital market. And this allows conglomerates to raise their stock value for many years. You can think to invest in these company are secure. Since stock allows them to raise money. Therefore these conglomerates take loans and buy more companies.
However, Conglomerates Industry contains diversify companies with business in three or more sectors. Moreover, stockholders maintain interest in running subsidiaries. Therefore conglomerates industries achieve high return on assets. See best conglomerates companies.
Therefore company is large firm that owns some smaller companies. And conglomerates sector is made up of these types of companies. But goal of many company is to have enough diversify to be unaffected by economics conditions.
You have to note that market cap only reflects equity value of company. Therefore value is get by number of shares calculate. And it multiplies by closing price per share. Probably, conglomerates dividend yields are from exposure of many different industries. But generally sector offers dividend yields that are above-average when compare with market.
Conglomerate Company will diversify his business in companies. And these companies are multi-industry business structure. But these company structures are multinational. Similarly, Conglomerate Company owned by single parent company or holding company.
It is an organization that contains other companies called subsidiaries. Therefore company must give financial statement to investors and Securities and Exchange Commission. But managers and board of directors generally maintain subsidiary. Moreover, company must hold 80 percent of shareholders to vote rights in order to receive tax benefits.
Company parent is same as holding company. Probably, parent company gets subsidiary through merger or gaining. So companies buy other small companies in order to increase their net operation income. In addition, to receive greater tax benefits. Check 10 Best Industrial Conglomerate Stocks for 2016
However, buying related group can reduce expenses related with production of certain items. Moreover, subsidiary also benefit by falling expenses or rising source of money with larger firm. Furthermore Conglomerate Company is parent holding company with more than two subsidiaries.
List of Conglomerate companies of India
- Adani Group
- Aditya Birla Group
- Amara Raja Group
- Avantha Group
- Bajaj Group
- Bannari Amman Group
- Bharti Enterprises
- Binani Industries Ltd
- CK Birla Group
- Century Textile and Industries
- Chettinad Group
- Dalmia Group
- Delhi Cloth & General Mills
- Essar Group
- Essel Group
- Finolex Group
- Gitanjali GroupGMR Group
- Godrej Group
- GVK (conglomerate)
- ITC (company)
- K. Organisation
- Jain Group of Industries
Finally, check list of the top 10 Indian Conglomerates in 2014 basis their revenues. Therefore see Top 10 Conglomerates in India 2015. In addition, check conglomerate business examples. For more details view largest conglomerate companies in world by market cap.