Long before the great kingdoms of the epics took shape, our mythology speaks of a moment when the gods faced a dilemma: To secure prosperity for the worlds, they needed a source of enduring strength, not quick victories. The solution became the Samudra Manthan, the churning of the cosmic ocean. This is a process in which power did not emerge from a single hero but from a coalition of forces that pulled steadily, patiently and with absolute discipline. The reward for that effort was amrit—a form of compounding that did not exhaust itself.
India’s economy today seems to be entering its own version of that churning. Not dramatic, not explosive, but a steady consolidation of capital and capability in the hands of a few disciplined houses that have learned how to pull in unison across cycles.
Every large economy reaches a stage where a handful of business groups begin to set the direction of long-term growth. The US witnessed this during the rise of its early industrial families like Rockefeller, Vanderbilt and later through Warren Buffett’s quiet transformation of Berkshire Hathaway into an unparalleled capital-deployment machine. East Asian countries like Japan created its keiretsu (Mitsubishi, Mitsui etc) and Korea it’s chaebols (Samsung, LG, Hyundai). India, too, has reached such a moment. Only our equivalent is unfolding in full public view, scrutinised by global funds, domestic institutions and an increasingly sophisticated retail base.
NAFA’s own conglomerate index, covering 162 listed companies belonging to India’s 20 largest business houses, captures this shift with clarity. Collectively, these groups now command ₹136.7 lakh crore in market capitalisation. This is nearly 29 per cent of India’s listed market capitalisation and almost twice the size of the entire PSU universe. What were once traditional operators have now become India’s most influential allocators of long-term capital, spreading their reach across energy, logistics, digital ecosystems, financial services, retail, manufacturing and green-transition projects.
Why Berkshire Moment?
If the previous decade rewarded disruption and venture-fuelled acceleration, the next will reward capital discipline, reinvestment velocity and the unwavering patience and long-term horizon that strong balance sheets allow.
Over the past 10 years, India’s conglomerates have undergone a quiet but decisive financial transformation. Many cleaned up leverage, exited peripheral businesses and embraced a more PE-style approach to reinvestment. This shift arrives just as India could enter its most significant capex cycle in three decades spanning expressways, renewable corridors, ports, industrial zones, metro systems and data infrastructure. History shows that in such phases, whether America’s rail boom or Japan’s post-War reconstruction the pace and direction of progress are determined not only by individual entrepreneurs, but by the balance sheets capable of steering long-arc investment.
These houses today straddle multiple growth engines simultaneously. Tatas can influence EVs and semiconductors; Adani anchors airports and green energy; Reliance blends telecom, retail and digital services into one reinvestment flywheel. Investors no longer see these groups as singular companies but as diversified internal portfolios capable of moving capital from a sunset cycle to a sunrise one without friction. This optionality is now a major driver of market valuation.
The most consequential insight from the conglomerate index may be the simplest: Private capital has decisively overtaken State capital as the principal architect of India’s economic future. The top business houses are now worth nearly twice the PSU universe and recycle capital at a much faster pace. This shift will influence everything from the country’s energy transition and logistics backbone to its digital architecture, manufacturing competitiveness and global supply-chain role.
Contrary to common assumption, the most expensive conglomerates in India are not those with the loudest growth stories. Groups such as Tata, Godrej, Wadia and Hinduja command richer valuation multiples, signalling confidence in their judgment, discipline and ability to redeploy capital across cycles. But for the valuations to hold, earnings growth must be strong ahead and this will depend on the investments they make and opportunities they tap.
Capex (ex-BFSI) across the top 20 conglomerates has grown at 11 per cent CAGR over the past six years (the period from FY19 to FY25 is considered here to have a better picture as FY20 was impacted by Covid-19). While on its own it’s a decent number, this has significantly lagged the CAGR in net profits at a substantially higher 19 per cent during the same period. The silver lining of this is that the balance sheets and fire power of these groups are significantly better today to drive the narrative if they intend. In recent years, the capex has been powered disproportionately by the Adani, Reliance and Murugappa groups, each of which has aggressively added to gross block and future-proofed its portfolio. In contrast, groups such as Mahindra, Hero and Bajaj have been more measured in their investment cycles, reflecting sector-specific transitions and strategic caution.
Yet overall, the broader message is clear: These business houses continue to deploy capital even through economic cycles, a capability anchored in deep, resilient balance sheets.
If the start of 2020s were the time of unicorns, IPO enthusiasm and consumer-tech exuberance, the next decade will be defined by the quiet force of allocators. Balance sheets will matter more than burn rates; heavy capex will matter more than monthly user numbers; scale and execution will matter more than disruption. India’s largest business houses now possess the capital, credibility and institutional maturity to shape the next chapter of the country’s growth.
Just as the Samudra Manthan transformed scattered energies into lasting strength, the consolidation of India’s corporate power is beginning to yield its own form of economic amrit. What we are witnessing is not merely the rise of large groups, it is the rise of disciplined capital itself. Great opportunities of new India lie ahead and the conglomerates must make the plunge and help shape India’s destiny. And in that sense, this truly is India’s Berkshire moment.
KR Senthilnathan has contributed to the article. The authors are part of the research team at NAFA Asset Managers
Published on December 13, 2025
