MNC DEFINITION, INCLUSIONS & EXCLUSIONS

The way Fortune India has defined multinational corporations (MNCs) is:

• Indian-registered entities, typically classified as subsidiaries or associates of foreign companies, where a foreign promoter holds a majority stake of over 50% or is a significant shareholder. For instance, we have considered British American Tobacco (BAT) which has a significant but not a majority stake in the two companies: ITC and VST.

• The ultimate parent entity is the main entity that would be holding the stakes in the Indian entity directly or through a different entity registered in a different geography. For instance, in the case of Flipkart, Walmart is the ultimate parent entity even as the stake in the Indian operations is held through an entity registered in Singapore.

• The list has also considered joint ventures between foreign and Indian promoters, including a three-way joint venture where there are two foreign entities and one Indian company.

• In cases where there are several entities of a particular MNC, we have clubbed them together under the parent’s name and is adequately highlighted in the table. For instance, in the case of Hyundai we have clubbed 4 different entities operating in India under Hyundai Motor Group. Also, in the case of group companies and other JVs, we have considered the entire revenue of a JV and not its proportionate share, except in the case of BAT. In case where the parent company/group has more than one operating entity in the country, we have listed the name of parent entity both in the company and ultimate holding/parent company columns.

• The sector classification for a business group or its ultimate holding company is based on the dominant revenue-contributing entity within the group.

EXCLUSIONS

• Only companies whose FY24 and FY23 results were available on multiple databases, including Capitaline, Tofler, and the MCA, were considered. In cases where the latest available financials (FY24) were unavailable, data for FY23 has been considered. As a result, in many cases, the listing would have just one entity of a multinational corporation even though it may have several other entities operating in India. Also, some prominent MNCs may not feature in the list if their revenue for the financial year considered is below the last revenue cut-off (that is the 500th name) in the list.

• We have excluded global captive and capability centres that are primarily engaged in the business of facilitation and back-end support services, including operation, marketing, and sales support services for different geographies of the parent entity.

• We have excluded foreign banks and their associate or fellow subsidiaries, such as broking houses and investment banks, primarily because the banks operate under “controlled conditions,” wherein the Reserve Bank of India regulates the number of branches that they can open in a year, unlike in other sectors where MNCs do not have such restrictions on operations or expansion.

• Notable exclusions will also include multinational corporations owned by private equity funds, directly or indirectly. For instance, Tenneco, which has three entities in India, has not been considered as it is owned by the U.S.-based private equity firm, Apollo Global Management.

• Similarly, the list excludes the Indian-owned domestic franchisees of foreign QSR brands such as McDonald’s, Burger King, KFC, and the likes.

ADDITIONAL NOTES:

1. On December 30, 2024, Adani Enterprises (AEL) announced the sale of its 44% stake in Adani Wilmar (AWL) for approximately $2.2 billion.

2. In July 2022, GSK separated its consumer healthcare business to form Haleon, an independent company.

3. In August 2024, Mars Inc. acquired Kellanova for $35.9 billion in cash.

4. In the case of BAT, all financial metrices, except MCap and PE, are based on its combined proportionate holding in ITC and VST Industries.

5. For Lear Corporation, revenue from Hyundai Transys Lear Automotive India Private Ltd (formerly Dymos Lear Automotive India Private Ltd) has not been included, as Hyundai Transys held a 35% stake and Hyundai Motor held 65%.

6. For TotalEnergies, revenue from Adani Green Energy Ltd (AGEL) is excluded, as TotalEnergies holds a 19.75% stake, with the remaining shares held by the Adani Group and Adani Family.

7. Somic ZF Components is a 50:50 joint venture between Somic Japan and ZF Group. The 50% value is considered for both groups.

8. Sandvik AB was the parent company of Alleima AB until Alleima was spun off as an independent firm in 2022.

9. The Vitesco Technologies Group became part of the Schaeffler Group on October 1, 2024, following the merger of Vitesco Technologies Group AG into Schaeffler AG.

FINANCIAL METRICS

Total Income (Revenue) includes core operating income (net sales) plus other extraordinary income. Total income considered for non-bank financial companies (NBFCs) is the interest income and other income. For asset management companies, total income refers to revenue from operations (asset management fees, etc) and other income, for insurance companies, total income includes net premium earned, income from investments & other income.

Profit After Tax is arrived at after deducting direct taxes, net of minority interest, but before dividends. These include extraordinary income and one-time gains from investments or disposal of assets, among other things.

Cash & Bank Balance As reported by companies in their annual reports.

Total Assets As reported by companies at the end of the financial year. Calculated on a net basis, total assets include fixed as well as current assets minus non-current liabilities such as deferred tax liability.

RoNW & RoCE is calculated through the following formula: Adjusted net profit – preference dividend)/(equity paid up + reserves) x 100. ROCE (return on capital employed) is calculated through the following formula: (Adjusted net profit + tax + interest) / (share capital + reserve + total debt-miscellaneous exp. not written off) x 100.

MCap & PE: Market capitalisation is as of January 14, 2025. It is not applicable for unlisted companies, and companies with irregular trading sessions.

In case of group companies, only the MCap and PE of its prominently listed company has been considered, even if there are two or more listed entities within the group. For e.g., in case of Suzuki Motor Corp., Maruti Suzuki MCap is considered, but in the case of BAT, the MCap of ITC is considered and not that of VST.

For group companies, we have not computed the RoNW and RoCE, but total income, net income, PBIDT, profit/loss, cash and bank balances, total assets, share capital, and networth, representing the cumulative numbers of their respective group companies.

DISCLAIMER

While Fortune India has taken utmost care and ensure enough diligence in ensuring that the process of data assimilation and identifying group ownerships, considering that magnitude and scale of the special issue that required months of sifting through piles of filings and excel sheets, it’s only human to admit that errors, if any, are more likely to arise from unintentional omissions rather than acts of commission. Readers are advised to verify the information independently before relying on it for any purpose, including making investments in the case of listed companies. The creators of the list nor Fortune India assumes responsibility for any discrepancies, or decisions made based on this information.

FEEDBACK

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