Top Ten Companies In Terms Of Employee Cost
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For every company, the employee is an important contributor because it’s manpower that actually drives the growth. In the services industry human capital is an integral part of this growth curve. No wonder many IT companies have an employee base of more than a lakh each. The importance of human capital is therefore significant and the number of employees and the total expense incurred per person is an effective tool to analyze a company. Here we present the top ten companies in India with the highest personnel cost spending.
ICICI Bank -
Led by Chanda Kochhar, ICICI Bank is one of the largest private sector banks in India. It manages to hold the 10th position in the list of the top companies with regards to personnel cost. The bank and its subsidiaries offer a wide range of banking and financial services, including commercial banking, retail banking, project and corporate finance, and various other services. It has an aggressive business strategy and is one of the traders’ favourite scrips due to its high volatility. As on December 31, 2011, ICICI Bank had a network of around 2,529 branches and 6,055 ATMs and an employee base of around 56,969.
Punjab National Bank -
Punjab National Bank is the third-largest public sector bank in India with a market cap of around Rs 24,323 crore. The bank has a total network of 5,658 branches and 6,009 ATMs. In the March quarter of FY12, it reported a spike in its net NPAs which increased by 41 basis points to 1.52 per cent. The bank is available at a price to book value of around 0.99 times and price to earnings multiple of around 5.47 times.
Bharat Heavy Electricals Ltd -
BHEL is an integrated power plant equipment manufacturer and is in the business of design, engineering, manufacturing, construction, testing, commissioning and servicing of a variety of products and services in various sectors such as power, transportation, renewable energy, oil & gas, defence, etc. It has more than 150 project sites across India as well as abroad. Established in 1964, the company now holds a very dominant position in the power plant equipment market. This success has mainly been aided by a workforce of over 49,000 well-trained employees. Its employee expenses of over Rs 5,396 crore form 16 per cent of the total expenses.
Indian Oil Corporation (IOC) -
Indian Oil Corporation (IOC) is a flagship national oil company with a presence in the entire value chain of hydrocarbons from exploration to refining and transportation to marketing of natural gas and petrochemicals. It ranked 98 in the 2011 listing of companies by Fortune Global 500. Indian Oil, along with its subsidiary, accounts for over 48 per cent market share in petroleum products. It also represents 34.8 per cent of the national refining capacity and 71 per cent of the downstream sector pipelines’ capacity. The company has strong workforce of 34,000 employees serving its domestic and overseas operations. Its employee expenditure for the last fiscal was Rs 6,429 crore.
Oil & Natural Gas Corporation of India ONGC -
Oil & Natural Gas Corporation of India (ONGC), a PSU Maharatna company, was founded in 1956 by the government to undertake activities related to planning, promoting, organising and implementing programs for development, production and sale of petroleum and petroleum products. Over the years, the company has discovered six of the seven producing basins in India and added 6.4 billion tonnes of oil and gas reserves. Today the company has 33,273 employees and is the sixth-largest company in terms of employee expenditure in India.
Steel Authority of India Limited (SAIL) -
Steel Authority of India Limited (SAIL) is the largest integrated steel producing company in India. The company is fully integrated for its iron ore requirement, producing all types of steel and steel products for domestic construction, engineering, power, railway, automotive and defense industries and for sale in export markets. SAIL is also among the five Maharatnas of the country’s central public sector enterprises. It has a total 1,10,794 employees and remains the fifth-largest company in terms of employee expenditure.
Wipro -
Wipro Limited provides information technology (IT) products and services as well as consumer care and lighting products, primarily in India, the United States and Europe. This soap-to-software company, as on March 31, 2012, had 1,35,920 employees. With a total spend of Rs 10,937 crore in FY12, it is ranked fourth on the list. The company earns a majority of its business (53 per cent of the revenues) from the US markets, followed by European markets.
Tata Consultancy Services (TCS) -
TCS, the largest software exporter in India, has built a global reputation for its ability to help customers achieve their business objectives by providing innovative, best-in-class consulting, IT and IT-enabled solutions and services. With 2,38,583 employees as on March 31, 2012, it has one of the largest employee base. In FY12 the company added 39,969 employees. In FY12 it spent Rs 14,100 crore for its personnel and this places it in the third position in terms of employee cost. The company’s full services portfolio consists of application development and maintenance, business intelligence, enterprise solutions, assurance, engineering and industrial services, IT infrastructure services, business process outsourcing, consulting and asset-leveraged solutions. The company generates revenues by providing IT solutions to various sectors such as banking, financial services and insurance (BFSI), telecom, manufacturing, retail and consumer packaged goods.
State Bank of India (SBI) -
State Bank of India (SBI) is India’s largest bank with a market share of 16.3 per cent in total deposits and 16.1 per cent in terms of advances. The total number of group branches stands at 19,193 and it has 27,286 ATMs. Its count of employees stands at 2,15,481 and the total personnel cost was around Rs 14,480 crore as on March 31. 2012. Around 66.52 per cent of the total branches are in rural and semi-urban areas and hence it generates employment not only in the metros but also in the rural and backward areas.
Infosys -
Infosys remains the second-largest software exporting company after TCS. Infosys has always been known for its efforts to make India a major IT hub of the world. With 1,49,994 employees as on March 31, 2012, it is the second-largest IT employer in India. The company has been a pioneer in terms of setting standards for balance-sheet disclosures and even valuing the employees. With Rs 15,481 crore spent on personnel cost in FY12, it occupies the first position on this list.
The core strength of the company is in providing end-to-end IT service solutions to its customers. Up to 97.8 per cent of the company’s revenues come from its existing customers (FY12).
The company has a large base of various IT products and services which includes major products such as Finacle and Flypp as well as services such as management consulting services, business application services, etc. It has a global footprint with sales offices in 29 countries and development centers in India, the US, China, Australia, the UK, Canada, Japan and many other countries. Infosys has employees of 89 nationalities. In the trailing last four quarters the net sales of the company stood at Rs 31,254 crore while its net profit stood at Rs 8,470 crore. The company generates 70 per cent of the revenues from the US and Europe.