The global economic turmoil has halted the onward march of India’s billionaires.
Prime Minister Narendra Modi’s inability to bring about legislative reform, coupled with the reverses he suffered in Delhi and Bihar, which has robbed him of his halo of invincibility, has flattened their wallets.
As the Sensex slid over 16 per cent in the year to January, India’s 100 richest saw their net worth inch up 2.5 per cent.
Their collective gain of Rs 41,546 crore is a fraction of the Rs 564,067 crore they had added to their purse last year.
Even this accretion melts away when you consider that the two new entrants this year, Rakesh Gangwal of InterGlobe Aviation (IndiGo) and Samprada Singh of Alkem Laboratories, whose companies got listed on the market this year, contributed Rs 47,074 to the total.
The stock market may have singed many of them, but they are still fabulously rich.
Image: Sun Pharmaceuticals' MD and chairman, Dilip Shanghvi is the second richest Indian. Photograph: Reuters
On the list are 59 men and women who would have been billionaires even if their wealth was counted in dollars (at Rs 67).
At this exchange rate, there were 56 dollar billionaires last year.
The last entry on this year’s list is T T Jagannathan of TTK Prestige whose wealth stands at Rs 4,066 crore; last year, Kishore Biyani of Future Retail brought up the rear with a net worth of Rs 3,321 crore.
Entry to The Billionaire Club clearly is getting tougher with each passing year.
Image: Wipro chairman Azim Premji is the third richest Indian. Photograph: Reuters
The slowdown in China, bloodbath in commodities, panicky foreign institutional investors and crisis in banking may have caused 40 billionaires to see their wealth decline, but it wasn’t enough to dampen the spirits of the rich and famous.
They still had enough to splurge. The luxury market stayed in full bloom, with no sign of distress whatsoever.
They still had enough to splurge. The luxury market stayed in full bloom, with no sign of distress whatsoever.
The pre-wedding bash for Parth Jindal, son of Sangita and Sajjan Jindal, in January at Umaid Bhavan Palace in Jodhpur was the celebrity event of the year.
Jindal Jr is likely to tie the knot with Anushree Jasani in Vienna in May.
Jindal Jr is likely to tie the knot with Anushree Jasani in Vienna in May.
Rajan Raheja’s son, Viren, got married in December 2015 to Dubai-based Simran Adnani at an open-air venue in Abu Dhabi with the sand dunes forming the backdrop.
According to reports, all the guests from Mumbai were flown on chartered flights to the venue.
Image: Kiran and Shiv Nadar. Photograph, courtesy: Kiran Nadar/Facebook
Jaws dropped when Kiran Nadar, wife of Shiv Nadar of HCL Technologies, reportedly acquired FN Souza’s iconic work, “Birth”, for Rs 27 crore (over $4 million) at a Christie's auction in New York in September. It set a new auction record for the artist.
The previous owner was said to be Tina Ambani and her Harmony Arts Foundation.
A couple of weeks later, another work by Souza, “Man and Woman Laughing”, commanded $2.59 million at Saffronart’s Delhi auction.
And at Christie’s third India sale, “Untitled”, painted by Vasudeo S Gaitonde in 1995, soared above its pre-sale estimate to sell for over $4.4 million, breaking the previous auction record of $3.7 million for the artist, as five bidders battled it out for the oil on canvas.
Image: Cyrus Poonawalla of The Serum Institute purchased Lincoln House. Photograph: Reuters
The fetish for big homes in exclusive neighbourhoods continued unabated. Kumar Mangalam Birla bought Jatia House, a bungalow in Malabar Hills, for Rs 425 crore in September. A week later, Cyrus Poonawalla of The Serum Institute purchased Lincoln House, an iconic property on the Breach Candy area, for Rs 750 crore from the United States consulate.
In Delhi’s coveted Lutyens Zone, Subhash Chandra of Zee Entertainment acquired a bungalow for Rs 304 crore and Vivek Chand Burman of Dabur bought one for Rs 160 crore.
This year too, Mukesh Ambani is on top of The Billionaire Club as investors rewarded his Reliance Industries for its strong earnings outlook.
In spite of the fall in crude oil prices, the company has been able to hold its gross refining margins at 8-9 per cent; all its investments into new capacity are more or less over and it is now time for the benefits to kick in; and its high-voltage entry into telecom is all set to happen.
As investors bought into the Reliance growth story, Ambani made a neat pile of Rs 19,355 crore during the year, as against Rs 4,572 crore in the previous year.
He represents 8.5 per cent of the total wealth in The Billionaire Club, up from 7.5 per cent in the previous edition. His heft amongst the super-rich is on the rise.
