Indian corporations are planning a massive investment spree that will cost over USD 800 billion (Rs 67,236,000 crore) over the next ten years, according to S&P Global Ratings. This ambitious investment plan is approximately three times what these huge corporate organisations spent over the preceding ten years, indicating a strong drive towards expansion and diversity, according to S&P Global Ratings.
Around 40% of this spending will be in new and emerging sectors like green hydrogen, clean energy, aviation, semiconductors, electric vehicles (EVs) and data centers. Leading the charge are the Vedanta, Tata, Adani, Reliance and JSW groups who will invest around USD 350 billion in these growth areas over the next 10 years.
Neel Gopalakrishnan, S&P Global Ratings credit analyst said: "About 40 per cent of Indian conglomerates' spending over the coming decade will be on new businesses, such as green hydrogen, clean energy, aviation, semiconductors, electric vehicles (EVs) and data centers. The Vedanta, Tata, Adani, Reliance and JSW groups alone are prepping about USD 350 billion of investment in these sectors over the next decade."
While some of India’s biggest conglomerates are venturing into new sectors, many others will continue to invest in their existing businesses to scale up and improve profitability. Companies like Birla, Mahindra, Hinduja, Hero, ITC, Bajaj and Murugappa groups, known for their conservative growth strategies, will maintain this approach.
S&P Global Ratings expects investments in existing business to be around USD 400-500 billion over the next 10 years if they continue to invest at the same pace as the last 2 years. This focus on strengthening core operations will be crucial for conglomerates as they navigate the risks associated with the large-scale investment push.