DESPITE THE UPSTARTS who emerge every now and again out of nowhere, it is never easy to displace the old guard. Even the triple-digit growth rate shown by some newly listed companies has not been enough for them to break into the big league of India's biggest business groups, where the oldest business houses continue to rule the roost. It's never easy to compute the size of business groups in India, given the number of companies involved and the extent of holdings a group may have in what is seen as a group company. In order to ensure a certain degree of rigour and standardisation, we adopted the following methodology to capture the same.

From the list of ET500 companies, we first found out the percentage contribution of each business house towards the total turnover of companies listed.

The one with maximum contribution to the entire list was awarded No 1 rank. The total turnover is inclusive of net sales and other income. Business house turnover was a cumulative figure of all listed companies within that business house. There are no prizes for guessing who bags first prize. Ambani No 1, Mukesh Ambani's Reliance group, tops the list of biggest business houses of India Inc. Even a good 41 years after incorporation, the company continues to grow at a breath-taking pace. Its flagship company, Reliance Industries (RIL), continues to make money hand over fist and accounts for almost 90% of the group's turnover, as well as profitability. And then there is Reliance Retail, which has been creating waves. The roll-out has been done on a massive scale, with an investment worth

Rs 25,000 crore. And the retail industry is set for a 360-degree change. Top this with massive gas discoveries, a new petrochemical plant and the recent slew of acquisitions, and it will be safe to assume that the big company is unlikely to cede the numero uno status in the coming years.

Following close on Reliance's heels is the Tata group of companies. Having acquired Corus last year, Tata Steel has made an indelible mark in the history of overseas acquisitions. In fact, no other business group has as many companies making it to the ET500 as the Tata group. The group has minted money from the IT boom in the country and India's largest software company TCS. Its share in total profit for the group increased from 29% to 33%.

Coming in at No 3 is the Aditya Birla group. This well-diversified conglomerate recently entered the fast-growing retail space and simultaneously, continues to strengthen its core business. It has been on an acquisition spree, buying up companies like Novelis and Trinethra. Although flagship Hindalco remains an underperformer in some ways, the group's telecom and cement business have boosted its total profit.

The important thing to note is the increasing importance of new-age businesses like IT, ITeS, retail and telecom. Success lies in continuous re-engineering. This is what all our participants believe and perhaps, that is the motivation for venturing into new economy businesses. ICICI Bank's position at No 4 is not wholly unexpected. Similarly, it's hardly surprising to see Anil Agarwal's Vedanta at No 5, given the voracious appetite that two of the world's biggest emerging economies, China and India, are showing for metals. Due to the limited supply of metals, prices have remained reasonably firm, which has catapulted the Anil Agarwal group to this position.

While Ambani 'No 1' is at the top of this list, Ambani 'No 2', Anil Ambani, has not done too badly either. On the back of Reliance Comm, Anil Ambani group has bagged the sixth position. Given the aggressive moves the group is making in the entertainment and financial space, it is likely that next year could see the younger Ambani higher up in the pecking order. The Anand Mahindra-led Mahindra group, which has a presence in automobiles, IT and financial services, is ranked seventh. L&T secures eighth rank in this list. At No 9 is the Om Prakash Jindal group, which again, is a testimony to the good run that metal companies are enjoying. Last, but not the least, is the HCL group, where again, the game is led by its technology business.

While much may not have changed in the turnover game, all's not lost for younger and hungrier rivals mushrooming throughout India Inc. For example, if the ranking criterion was tweaked a little and based on the net profit margins or m-cap, the list may look different from the current one. There may be many new business houses - Bharti Airtel, Suzlon Energy, DLF or Unitech - which may leave conventional businesses behind. This shows the perception people have about companies' margins is not always in tandem with sales. The market recognises fast-growing businesses more than older businesses. The logic behind this is: higher the margins, higher the growth. This is because ultimately, it is more cash that helps a company to finance its expansion plans.

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