So last time we discussed loss-makers in India’s telecom market. This makes us realize that bigger a company is, more are the chances of widening of losses.
In this article, we talk about the 10 biggest loss-making companies in 2020. What’s different this time is that companies this time don’t belong to a particular niche or segment.
Rather they are conglomerates in their sector, the only thing that brings them together under one roof is that they are also India’s biggest loss-making companies in 2020.
The list is compiled by Finshots.in – a renowned platform for all kinds of financial news and updates. Let’s check out what is there in the compilation.
1 – GMR:
Headquartered in New Delhi with a global presence in other continents including Nepal, Indonesia, Singapore, Philippines & Greece. It might take some hours to throw some light on its business portfolio and business verticals, but GMR’s business ranges from energy, power generation to solar energy, hydropower.
With investments lingering around solar energy, hydropower and what not anyone can imagine what huge amount of money is being talked about.
It is said that the company is one of the biggest loss-making companies with losses hovering around INR 3610 crore! If the company is talking about building an airport (along with solar power and hydropower projects) then losses are definitely big!
“Along with our partner GEK Terna, we aim to deliver an airport of global standards which will be a matter of pride for Greece” – Srinivas Bommidala, Chairman of Energy and International Airports at GMR Group.
2 – Flipkart:
Our Indian eCommerce platform Flipkart has got to be on the list of biggest loss-making companies in 2020! Before Walmart acquired Flipkart and before Myntra getting in the hands of Flipkart, the eCommerce platform was struggling really hard to compete head-to-head with Amazon.
Flipkart had a roller coaster ride; the ride is still on and its losses seem to be moving ahead with the eCommerce platform. With INR 3835 crores, it’s definitely one of the biggest loss-making companies in India.
3 – Jyoti Structures Limited:
A conglomerate providing turnkey solutions for High Voltage Power Transmission Lines, substations and distribution lines. Jyoti structures limited (JSL) has more than 3 decades of existence and customers coming from 45 countries.
Jyoti Structure Limited has losses surmounting INR 4166 crores.
4 – PayTm:
Initially started as a payment gateway and slowly expanded to other variants like Paytm mall and first games. But due to ongoing issues and competition from others, Paytm had to shut down its mall services.
One big reason why Paytm is said to be struggling and shutting down its verticals is that that this start-up is said to offer so many freebies that once Paytm stopped giving, consumers shifted to its competitors.
Paytm is said to have losses around INR 4217 and is struggling to have market share which is captured by BHIM, Google Pay and others.
5 – Jet Airways:
The airline carrier has been in media limelight a lot due to shutting down its operations and laying off its employees. While the airline carrier is still struggling to fly once again, Jet Airways is searching for investors who can pump-in money to revive the airlines.
With losses over and above INR 4244 crores, Jet Airways is one of the biggest loss-making companies in 2020. Everything started last year and issues don’t seem to be settling down for the air carrier company.
6 – Air India:
Our online carrier is said to have 9426 permanent workers, 4201 contract employees, and 2867 employees on deputation. Air India headquartered in New Delhi is owned by Air India Limited – a government-owned enterprise.
It serves 94 domestic and international destinations carrying the “Indianness” in every flight. Air India is said to have losses around INR 8850 crores which is huge as compared to other companies discussed above.
7 – BSNL:
When all the telecom players are struggling, how can BSNL not be included on the list of biggest loss-making companies in 2020?
BSNL has losses around INR 14904 crores. Recently the company said it will be focusing on value-added services for its customers as the government-run entity cannot practically compete against JIO, AirTel, and others.
8 – Airtel:
There was a time when Airtel used to be one of the wealthiest telecom companies in India. But soon after JIO entered the market and slashed down tariffs and internet costs, Airtel not only kept losing market share but to keep up with the tariffs rates, it also had to cut it down.
From a tour every hour to a company which is trying its best not to pay the hefty amount due to the telecom department. With losses of INR 26838, Airtel is one of the biggest loss-making companies in India.
9 – Reliance Communications:
All those free calls and almost free internet did come at a cost that was taken care of by deep-pocketed Ambani’s. Reliance communication has losses of INR 38592 crores.
Apart from being a telecom giant, Reliance communications are also one of the biggest loss-making companies in India.
10 – Vodafone Idea:
If you need to know what major threats telecom players have had in recent years, you need to know why Vodafone and Idea merged their businesses together in India.
Once again it was JIO who disrupted the market. While Vodafone and Idea are the players who were affected a lot by it. To have a decent market share as well as to give a tough fight to its competitors, Vodafone and Idea joined hands together.
Recently, Vodafone is said to exit the Indian market because after paying such hefty amounts the company might not be able to operate due to a deficiency of funds.
So, these were our 10 conglomerates which are big not only in terms of business, customer base. The 10 companies are also the biggest loss-making companies in India.