- There are only a few trillion dollar companies in the world, and the Adani Group wants to join their ranks.
- Currently, Apple, Saudi Aramco, Microsoft, Alphabet, and Amazon are on the list of billion-dollar companies.
- We take a look at how long it took these companies to reach the trillion dollar market cap and where they are now.
There are a handful of companies worth trillion dollars or more. The list includes Apple, Saudi Aramco, Microsoft, Google parent alphabet and Amazon. The Adani Group – led by Gautam Adani, the richest in India and the fourth richest person in the world – wants to join their ranks.
The Adani Group’s rise has been lightning-fast in recent years – both in terms of market capitalization and presence in various sectors such as mining, energy, infrastructure, logistics and beyond.
“Given what we had as a set of companies, we felt that if we had assets and companies of that type, we really should be a $1 trillion group,” said Jugeshinder ‘Robbie’ Singh, Adani Group Finance Director. , to https://londonbusinessblog.com/ India .
Adani Group’s valuation has risen from $16 billion in 2015 to $260 billion in 2022 – an increase of more than 16x in seven years. But if the group goes from $260 billion to $1 trillion, it could take some time.
https://londonbusinessblog.com/ takes an in-depth look at what it takes to become a trillion dollar company, and how much time it took these companies to cross $250 billion worth and a trillion dollar value.
Reaching the first milestone – $250 billion
Undoubtedly, starting a business and reaching the $250 billion dollar milestone is a tough feat. It took an average of more than 16 years from the IPO for Apple, Google, Microsoft and Amazon for their market cap to reach $250 billion.
Apple took the longest, at 30 years. Microsoft was the first to reach $250 billion in market cap, in 1998 before the dotcom crash.
|Company||Year to reach $250 billion mcap|
In contrast, beginning with the listing of Adani Enterprises in 1994, the Adani Group has taken 28 years to exceed a cumulative market cap of $250 billion by 2022.
It is worth noting that the Adani Group currently has seven companies – these companies were all listed at different times, with Adani Wilmar being the latest in this year.
A Trillion Dollar Colossi
The market cap journey from $250 billion to $1 trillion was relatively faster for Apple and Amazon, while Google and Microsoft took significantly longer to reach the milestone.
|Company||Years from $250 billion to $1 tn mcap|
Here’s What These Trillion Dollar Behemoths Made in 2021
It’s not for nothing that Apple, Microsoft, Alphabet and Amazon are multi-billion dollar companies — all four companies brought in hundreds of billions of dollars in revenue in 2021.
Amazon, which made the least profit with the highest revenue, still came in at more than $33 billion in net revenue — or more than 19x of the Adani Group’s profit in FY22.
|Revenue||$365.8 billion||$168 billion||$256.6 billion||$469.8 billion|
|Net profit||$94.7 billion||$61.3 billion||$76 billion||$33.4 billion|
Source: Company Reports, for the full year 2021
In comparison, the Adani Group had total revenues of $24.4 billion and net income of $1.7 billion in FY22 (at $1 = ₹80).
Here’s a breakdown of how each group company fared in the year:
|Adani Enterprises||₹70,433 crore||₹777 crore|
|Adani Wilmar||₹54,386 crore||₹804 crore|
|Adani Power||₹31,687 crore||₹4,912 crore|
|Adani Gates||₹18,089 crore||₹4.728 crore|
|Adani transmission||₹11,862 crore||₹1,205 crores|
|Adani Green||₹5,577 crore||₹489 crore|
|Adani Total Gas||₹3,079 crore||₹509 crore|
|Total||₹1.95.113 crore||₹13,424 crore|
Source: Trendlyne, Company Reports
The Adani Group has some distance to go before it joins the coveted club of companies valued at trillion dollars. Only time will tell if it manages to reach the trillion dollar milestone or not.
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