Samsung India has overtaken Maruti Suzuki to become India's biggest consumer-facing multinational corporation. Recent regulatory reports have shown that Samsung has surpassed Maruti Suzuki in the recent quarter.
Samsung India posted a revenue of Rs 75,886 crore in FY21, up 0.5 percent over the previous fiscal. But while Samsung's fortunes were slightly better than in the previous quarter, Maruti Suzuki has not fared nearly as well. The country's largest automaker posted an operational revenue of Rs 70,333 crore, down 7 percent.
The gap between the two companies has been steadily decreasing over the years, with the gap only at Rs 200 crore in FY20.
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The contrasting graphs of the two companies can be attributed to the COVID-19 related lockdowns that disproportionately affected some industries over others. While Maruti's sales came to a halt during the lockdowns, demand for Samsung's products and services increased due to the shift towards work-from-home models and increasing digitisation across all industries.
Also read: Auto sales fell 50% during Navratri; semiconductor availability still unresolved: Maruti Suzuki
The increasing demand for entertainment options and appliances has furthered Samsung's growth in other verticals. Its mobile business remains one of its biggest revenue streams -- with just its mobile vertical eclipsing the sales of other major corporations like Hindustan Unilever or ITC Ltd.
Samsung's mobile phone business grew by 6 percent annually to Rs 55,397 crore, contributing 73 percent to Samsung's total sales. However, the mobile phone business growth story is starting to slow down for Samsung. The company had posted a growth of 21 percent and 15 percent in FY20 and FY19, respectively.
The company's net profits surged to Rs 4,041 crore in FY21, a jump of 39 percent over last year. The company said it is also the biggest player in the television and refrigerator market.
Samsung stated in its filings that it will be amending its memorandum of association (MoA) to allow the company to expand into other business segments like selling advertising space and creating or source content.
(Edited by : Shoma Bhattacharjee)
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