Top Ten Companies With Highest Foreign Promoter Holding

Companies with higher foreign promoter holding have always been favoured by the investors’ fraternity. Be it the consistent financial performance or the regular dividend payment, these companies are always looked at with some respect in the markets. Also, wealth creation by these companies has been immense by way of capital appreciation as well as the higher dividend payment. Recently, the SEBI ordered all the listed companies to ensure that 25 per cent of their shares be publicly held. With many companies having promoters’ holding of more than 75 per cent, these are now being looked upon for making smart gains through delisting and buy-back offers. Here we provide a list of the top ten companies, in reverse order, with high amount of foreign promoters’ holding.

Singer India

Singer India holds the 10th rank when it comes to foreign promoters’ holding of as much as 78.9 per cent of the total shareholding. It was established in the 19th century by Singer (US) in Bombay as Indian Sewing Machines. In 1984, the company diversified into a varied range of household appliances like TVs, washing machines, cooking ranges, food processors and vacuum cleaners. The company tapped the market way back in 2000.

Sharp India

Sharp India was incorporated by Bharat Forge (BFL), flagship of the Kalyani House of Industries. In 1989, it entered into a JV with a Japanese company named Sharp Corporation, a leading manufacturer of consumer electronic products. The name of the company was changed in May 2005 from Kalyani Sharp India to Sharp India. Currently under Japanese management, the company has production facilities in 26 countries with a total of 33 plants and its products are used in 133 countries. Sharp India manages to be on the top 10 list of foreign promoters’ holding since Sharp Corporation Japan holds 80 per cent of the total shares.

Fairfield Atlas

Fairfield Atlas’ holding company is T-H Licensing Inc, USA which holds 83.91 per cent stake of the total shareholding pattern of the company. The company is primarily engaged in the manufacturing and selling of automotive transmission gears and gear boxes. At present the company has two plants of which one caters to the Indian market while the other unit is dedicated for its overseas customers. Its customers include M&M, John Deere, SAME, KAMCO, etc in India and FMC, GKN, TMA in the US.

Ineos ABS (India) / Styrolution ABS (India)

Styrolution ABS (India), which was earlier known as Ineos ABS (India), manufactures Absolac (ABS) and Absolan (SAN). Absolac is a plastic resin produced from acrylonitrile, butadiene and styrene. It is a widely used intermediary product and its applications range from home appliances to automobile and consumer durables as well as business machines. Absolan is also a polymerized plastic resin which is produced from styrene and acrylonitrile. Its main applications are in lightings, stationery items & novelties, refrigerators and cosmetic packing. The product is also used in interior and exterior automotive parts, consumer durables, diagnostic equipments and IT & telecom-related products. The company has paid dividends consistently. With 87.33 per cent holding, it is placed at number seven on the list.

Kenna Metal India Ltd.

Kenna Metal India Ltd is owned by foreign promoters to the tune of 88.16 per cent stake in the company. The company is a leading manufacturer of hard metal products and machine tools which cater to the needs of a wide variety of manufacturing and other industries such as transportation, general engineering, aerospace & defense, energy and earthworks. The company has two main business segments under which it has categorised its businesses viz. hard metal & hard metal products and machine tools. This segmentation is primarily based on the nature of the products and services provided by the segment and the business risks attached thereto.

Gillette

The foreign promoter holds an 88.76 per cent stake in Gillette India Ltd which is well known for its men’s grooming products ranging from Gillette shaving cream to blades. The company has a strong presence in three major business segments viz. oral care pre-shave/post-shave products (shaving cream and gel), personal grooming (blades and razors) and portable power that includes Duracell batteries. A major portion of its revenue is derived from the personal grooming segment.

BOC India

BOC India is mainly into supplying various types of gasses and mixtures which are widely used in steel plants to increase the efficiency level. The gasses are classified into different categories viz. industrial gasses (atmospheric gases and process gases), medical gasses and specialty gasses for power and precision purposes used for calibrating different sophisticated analytical instruments across several industry segments. The company started its operations in India in 1935 as the Indian Oxygen & Acetylene Company and today has more than 20 production facilities, including one of Asia’s largest air separation units as well as 40 warehouses and depots, 100 dealers, more than 100 dedicated tankers in the distribution fleet etc, all of which give BOC a wide geographic reach for its customers in India.

AstraZeneca India is a multinational pharmaceutical firm in India that offers an integrated approach to the discovery, development and marketing of medicines. It also has the only dedicated research centre for TB in the world, located here in India. The company provides a wide range of products in the areas of healthcare, including cardiovascular, respiratory, maternal healthcare, oncology, infection, pain control & anesthesia, gastrointestinal and diabetes. The scrip has attracted the investors’ fancy which is quite clear from the fact that in 2009 it provided returns of 92 per cent, then 43 per cent in 2010, followed by a marginal decline of 8 per cent in 2012. However, it bounced back in 2012 and on a YTD basis it is up by 57 per cent. It has thus been a true wealth creator for its stakeholders. The foreign promoter holding stands at 90 per cent, thus placing it at the third position.

Fresenius Kabi Oncology

Formerly known as Dabur Pharma, Fresenius Kabi Oncology is one stock which has again created wealth for its investors. The company is one of the leading companies for cancer research and anti-cancer products. With its three-year CAGR of 19.60 per cent, it has been one of the fastest growing companies on the revenue front in India. Fresenius Kabi Oncology has world-class expertise for the development and manufacture of active pharmaceutical ingredients, intermediates and oral & injectable finished dosage forms. This expertise enables it to provide high-quality and cost-effective pharmaceutical products for the global market. The company stands second with promoters’ holding of 90 per cent.

Alfa Laval (India)

The core of Alfa Laval’s operations is based on three key technologies: heat transfer, separation and fluid handling. All three have great significance for industrial companies and Alfa Laval holds a leading global market position within its fields of technical expertise. India is Alfa Laval’s third-largest market after the US and China. The company started operations in India as early as 1937 and established its first manufacturing facility in 1961. Today Alfa Laval India employs around 1,200 people across its five manufacturing units. The financial performance of the company has always been good and except for CY2010 (which was a bad year for most of the companies), Alfa Laval has posted continuous growth on the topline front. It has also paid consistent and incremental dividend since the past 21 years. Alfa Laval tops the list with foreign promoter holding of 94.45 per cent.

Image Courtesy: Company websites

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