B'luru stands 3rd in wealth creation

Bengaluru, dhns: Bengaluru has been positioned at the third slot among the top 100 wealth creating companies.

Market advisory firm Motilal Oswal has come up with a study, in which it has been found that eight companies from the city have created a collective wealth of Rs 1,91,500 crore in the past five years.

Automotive components-maker Bosch Limited leads the list from the city with Rs 45,600 crore value creation in the past five years, followed by Britannia Industries (Rs 33,500 crore), Bharat Electronics (Rs 24,900 crore), United Spirits (Rs 21,600 crore), Titan Company (Rs 20,600 crore), Biocon (Rs 17,900 crore), Rajesh Exports (Rs 14,000 crore), and Page Industries (Rs 13,400 crore). The combined shares of these eight companies in wealth created by top 100 companies amount to 5%.

The wealth created is calculated as increase in market capitalisation over the last five years, duly adjusted for corporate events such as fresh equity issuance, mergers, de-mergers and share buybacks.

Despite creating so much wealth, Bengaluru lags behind Mumbai, which is the financial capital of the country, by notches. While Mumbai has 43 companies in the list, another city from Maharashtra, Pune, has five. India's largest IT company TCS, which leads the list, alone has created a value worth Rs 2,49,900 crore in the past five years, Rs 58,400 crore higher than combined value addition by eight Bengaluru-based companies.

Infosys leads

Despite, TCS leading the wealth creation in the past five years, Infosys takes a lead across the country in terms of long term returns on investment. The company has multiplied the investments of its investors by 2,973 times in the past two years.