40 ' SOCIAL SCIENTIS •T
TABLE I
CHANGES IN THE ASSETS POSITION OF THE TOP 20 INDUSTRIAL
GROUPS IN INDIA, 1972-1975 (RS CRORES)
Name oj the groups Total assets Change in assets
197Z 7.975 {percent}
1 Tata 634.84 909.68 43.3
2 Biria 572.17 858.81 50.1
3 Mafatlal 183.74 244.23 32.9
4 J K fSinghania) 121.45 209.56 72.5
5 Thapar 136,16 197.00 45.3
6 Scindia 107.73 183.05 69.9
7 I C I 135.21 178.34 31.9
8 Shri Ram 120.77 166.16 37.6
9 ACC 134.36 160.05 19.1
10 Bangur 118.87 158.63 33.4
11 Kirloskar 97.93 148.65 51.8
12 Larsen and Toubro 79.03 137.69 74.2
13 Walchand 99.47 126.78 27.4
14 Khatau 63.77 119.03 86.6
15 ITC 74.65 116.80 56.2
16 Macwell and Magor 106.21 114.40 7.7
17 Mahindra and Mahindra ^ 8.49 114.08 95.00
18 Sarabhai 85.35 111.13 30.2
19 Kasturbhai Lalbhai 78.61 108.16 37.6
20 TVS lynger 50.32 102.04 102.8
SOURCE: The Statesman, Calcutta, 5 July 1978.
the economic power of the big houses as reflected in the increase in their total assets.
The obliging state-sponsored financial institutions have provided the required resources to the big houses for conglomerate expansion. It is also true that the sagging profitability in industrial production has not affected the big houses to the same extent as others, thanks to the versatility of their economic interests. Gains from trading and speculative activities have compensated the drop in industrial profits.
The group pattern of industrial organization is found in many developing economies of the world. Industrial groups, for example, occupied a prominent position in the pre-world war two economy of Japan and they continue to dominate the economies of the Latin American countries today. "The group is a multi-company firm which transacts in different markets but which does so under common entrepreneurial and financial control. More generally, this pattern of industrial organization has two essential features. First, the group draws its capital and its high-level managers from sources which transcend a single family. The capital and managers may come from a number of wealthy fami-
