Introduction:
India's economy is powered by a dynamic and diverse range of public sector undertakings (PSUs). Among these, a select group of companies has been granted the prestigious ‘Maharatna’ status. The Government of India awards this elite designation to PSUs that meet certain criteria regarding their performance and scale of operations. Maharatna status gives these companies greater autonomy and financial powers to compete globally.
This blog delves into what Maharatna companies are, the significance of the Maharatna status, how many Maharatna companies are in India, and highlights the top Maharatna companies in India. Keep reading.
What are Maharatna companies?
In India, the Maharatna status is granted to central PSUs that meet specific criteria, enabling them to function with greater autonomy and financial power. This status is a part of the broader classification system for PSUs after the Navratna and Miniratna statuses.
Below are the criteria a company must meet to achieve Maharatna status:
- The company must have a minimum net worth of Rs. 15,000 crores over the past three years
- The company must have an average annual turnover of more than Rs. 25,000 crores over the past three years
- The company’s average annual net profit after tax must be more than Rs. 5,000 crores over the past three years
- The company must have a significant global presence and international operations
- The company’s stocks must be listed on the Indian stock exchanges as per the Securities and Exchange Board of India’s (SEBI) regulations
Top Maharatna Companies in India
As of 31 May 2024, the Government of India has awarded the Maharatna status to 13 companies. Below are the brief descriptions of these companies:
1. Bharat Heavy Electricals Limited (BHEL)
Bharat Heavy Electricals Limited (BHEL) is India’s largest engineering and manufacturing enterprise in the energy and infrastructure sectors. The company provides products, systems, and services across various sectors, including transportation, defence, aerospace, power generation, transmission, oil and gas, among others.
2. Bharat Petroleum Corporation Limited (BPCL)
BPCL is a leading player in the petroleum sector, involved in the refining, distribution, and marketing of petroleum products. The company has its headquarters in Mumbai, Maharashtra. It supplies products for both industrial and commercial applications and also offers fuel services. BPCL's major brands include Speed, Mak, and Bharat Gas.
3. GAIL (India) Limited
GAIL (India) is the largest state-owned natural gas processing and distribution company in India. It manages a vast network of LPG pipeline systems, gas processing plants, and petrochemical projects. Additionally, it is involved in renewable energy projects and city gas distribution.
4. Coal India Limited
Coal India Limited (CIL) is the single largest coal producer in the world, contributing significantly to India's energy requirements. The company’s products are utilised in a variety of industries, including fertiliser, cement, glass, ceramic, steelmaking, domestic fuel, paper, chemicals, etc.
5. Hindustan Petroleum Corporation Limited (HPCL)
Hindustan Petroleum Corporation Limited (HPCL) operates two major refineries producing a wide variety of petroleum fuels and specialities. It boasts an extensive distribution and marketing network comprising LPG storage facilities, terminals, pipelines, aviation service stations, and retail outlets. Additionally, the company is involved in the manufacturing of sugar and ethanol.
6. Steel Authority of India Limited (SAIL)
SAIL is one of the largest steel-making companies in India, managing five integrated steel plants and three special steel plants. The company's product portfolio comprises a range of steel products, including blooms, billets, angles, channels, wheels, joists, pig iron, and coal chemicals.
7. National Power Thermal Corporation (NTPC)
NTPC is the largest power utility in India, with a significant presence in coal, gas, hydro, and renewable energy. The company generates electricity using gas, coal, and other renewable sources. Additionally, it provides services such as consultancy, project management, coal mining, power trading, state electrification, etc.
To conclude
Other than the ones mentioned above, Maharatna company list includes Rural Electrification Corporation Limited (RECL), Power Finance Corporation (PFC), Power Grid Corporation of India Limited, Indian Oil Corporation Limited (IOCL), Oil India Limited, and Oil and Natural Gas Corporation Limited (ONGC).
These companies are not just corporate giants but are also critical pillars of the nation’s economy. They play a crucial role in shaping the economic landscape, driving industrial growth, and contributing to India's global economic standing. As an investor, you can add the stocks of these companies to your portfolio for substantial long-term gains.
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