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The public sector has been the backbone of the Indian economy, as it has acted as a strategic partner in the nation’s economic growth and development. Public sector enterprises possess strong prospects for growth because they harness new business opportunities, and at the same time expanding the scope of their current business. This publication, ‘India’s Top PSUs 2010’, is an effort to recognise the importance and contribution of the public sector. The publication includes 128 leading central public sector undertakings (CPSUs) that fall within the ambit of the Central government and represent major industry groups. The PSUs that are considered for this study have contributed largely to India’s growth story in recent times. In this year’s edition, we have conducted an analysis of 134 CPSUs with an annual total income of more than Rs 2 bn. The study reveals the following:

• The total income of the PSUs was Rs 17,639.66 bn during FY09, which was equivalent to 31.64% of India’s GDP (at current market prices) as compared with 30.17% in FY08.

• The 18 Navratnas put together had a total income of Rs 8,478 bn in FY09, which was equivalent to 15.20% of India’s GDP (at current market prices). The corresponding figure for FY08 was 14.25%.The net worth of 134 CPSEs was Rs 8,441.44 bn in FY09, registering a y-o-y growth of 12%.

• This year, the banking and financial services sector led in terms of net profit contribution at 33.54%, whereas the oil and gas generation sector had dominated the net profit pie in the previous year.

We also conducted a comparative study of 30 non-financial BSE-listed PSUs with 191 listed private sector companies that had a total income in excess of Rs 14.65 bn. The key findings of this study are as follows:

• PSUs have dealt with the slowdown in the economy much better that their private sector counterparts - as is evident rom their sales growth in FY09 that increased at a higher pace than the year before. While the private sector saw a fall in growth rates, PSUs saw an increase in growth rates for the same period.

• Even though the R&D expenditure growth of public sector decreased from 54.43% (FY08) to 32.80% (FY09), its growth rate remained much higher than that of private companies. The R&D expenditure growth of PSUs had slowed down in the current year due to lower profit margins in the sector.

The public sector in India holds immense potential and prospects for growth and profitability in the future and will continue to play an important role in the economy. D&B will uphold its efforts of keeping the readers abreast of the various developments in the CPSUs and will further develop a database and collect more information to make this publication an important and reliable source of reference.

Kaushal Sampat
Chief Operating Officer
Dun & Bradstreet India