Maharatna companies are among the top-level companies in India and are recognized for their sheer size and scale of operations. A Maharatna company is one that has been identified by the Government of India as an ‘Industrial Conglomerate’. It is a recognition bestowed upon companies that have achieved significant scale through their performance, size, and standing in the Indian economy. These companies are expected to be the mainstay of the Indian economy and are expected to generate a majority of the national income.
Maharatna companies are the largest public sector undertaking (PSU) enterprises in India and have achieved significant scale of operations in terms of size, turnover, net worth and profits. They are expected to be the mainstay of the Indian economy and are expected to generate a majority of the national income.
The recognition of a Maharatna company is based on certain conditions such as the size of the company, its turnover, net worth and profits. These companies must also be listed on the Bombay Stock Exchange and the National Stock Exchange.
There are four different categories of Maharatna companies, these include:-
(1) Navratna Companies: These are companies that have achieved significant scale of operations in terms of size, turnover, net worth, profits, and market capitalization.
(2) Miniratna Companies: These are companies which have achieved significant scale of operations in terms of size, turnover, net worth and profits, however, have not achieved the same scale as Navratna companies.
(3) Maharatna Companies: These are the largest and most successful companies in India and have achieved significant scale of operations in terms of size, turnover, net worth, profits and market capitalization
(4) CPSEs : These are the Public Sector Undertakings (PSUs) owned by the Government of India.
Maharatna companies are expected to be the mainstay of the Indian economy and generate a majority of the national income. They are responsible for generating jobs, investing in infrastructure and contributing to the economic growth of the country.
The Government of India has identified certain criteria to determine the Maharatna status for a company. These criteria include the size of the company, its turnover, net worth and profits. The criteria also factor in the company’s contribution to the economic growth of the country.
Maharatna companies are also expected to be accountable and transparent in their operations. They must adhere to the corporate governance norms prescribed by the government and must also disclose information regarding their financial performance and operations.
The Government of India has identified certain criteria to determine the Maharatna status for a company. The criteria include the size of the company, its turnover, net worth and profits. The criteria also factor in the company’s contribution to the economic growth of the country.
The recognition of a Maharatna company is based on certain conditions such as the size of the company, its turnover, net worth and profits. These companies must also be listed on the Bombay Stock Exchange and the National Stock Exchange.