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Hurun India Rich List 2016

August 28, 2016

 

PRESS RELEASE 

 

 With 81 new faces Hurun Report launches its fifth edition of Indian Rich List 2016 . 

  • With INR 1, 63,436 cr, Mukesh Ambani is the richest man in India for the 5th consecutive year

  • India produced 125 billionaires, a record number since the inception of Hurun India Rich List in 2012    

  • Vaccine king Dr Cyrus Poonawalla storms into top 5  

  •  85% in the list are family run businesses    

  • 10% have migrated from India  

  • Mumbai and New Delhi make up half of the rich list, adding 26 and 10 respectively  

  • Acharya Balakrishna, 44, of Patanjali debuted in the India rich list at 26th rank with a wealth of INR 25,611 cr

  • 40 individuals dropped out of the list, of which 3 passed away last year.

Hurun Report India releases Hurun India Rich List 2016, presented by world’s favorite jeweler Joyalukkas 

  • Hurun Report finds 339 individuals with INR1,600 Crore or more, up 43 from last year and double that of two years ago.

  •  The average wealth dropped by 7% YoY, owing to a 5% devaluation of Indian Rupee against the US dollar and a lackluster performance of key sectors such as Technology, Jewellery and Trading.

  • Number of dollar billionaires has increased to 125 from 124 last year. The inaugural Hurun India Rich List in 2012 just had 59 billionaires.

  • 32 have migrated from India and are NRI’s. 

  • With a cumulative networth of INR 6600 crores, The Turakhia brothers (aged 35 & 36) debut the Hurun India Rich List. Their company media.net was acquired by Chinese consortium for almost US$1 Bn, 6 saw their wealth double year on year. 

  • The “Usain Bolt” of Hurun India Rich List 2016: The fastest riser is Vijay Shekhar Sharma (38) of Paytm, a payment technology company. His wealth shot up by 162% to INR 7,393 Cr.

  • 123 individuals saw their wealth decline that was led by the Jewellery sector, which witnessed strikes because of regulatory duty hikes.  

  • With a fortune of INR 1, 63,436 Cr, Mukesh Ambani (59) of Reliance holds on to his position as the richest man in India.

  • Pune-based Dr Cyrus Poonawalla (75) of Serum Institute rose to 5th position, from 11th last year, after seeing his wealth grow by 97% to INR 83,097Cr .

  • Whilst Mumbai continues to dominate with 30% of the list residing there, Delhi came in second with 19%, followed by Bangalore with 8%.

  • Mumbai and New Delhi have consolidated their positions as the cities for India’s most successful entrepreneurs, making up half the list, compared to only one third of the last year’s. 

  • Pharmaceuticals dominate with 12% of the list, followed by FMCG and Chemicals & Petrochemicals with11% and 6% respectively. 

  • Only 60% are self-made, down by 1%from last year.  

  • Savitri Jindal (66), the richest woman in the list with the fortune of INR 35,028Cr saw her wealth rise by 123%; This is backed by the stellar performance of JSW steel, which went up by 100% compared to last year. 

  • The combined wealth of India’s richest is a staggering US$482bn, equating to 1/5th of India’s GDP last year and larger than the GDPs of UAE ($325bn), South Africa ($266bn) & Singapore ($294bn)

 

Leading Authority on India’s private wealth, Hurun Report launches the India Rich List for the fifth time.
(Bangalore, 28th August, 2016): Today Hurun Report released the Hurun India Rich List, a list of the richest people in India with a cut-off of INR 1,600 Cr. This is the fifth year of the list, which has become a benchmark for the private sector and has become widely accepted to be the most robust attempt at covering entrepreneurship in India. Wealth calculations are a snapshot of networth of living individuals as of 31st July, 2016 when the rate of exchange to the US dollar was INR 66.69 

 
Despite an above average monsoon and a steep 24% wage hike, India Inc. fails to cheer the market, resulting in a muted growth in average wealth for 2016. Subdued investors interest in e-commerce and online businesses declined valuations of  e-commerce unicorns in 2016 as compared to 2015”, says Anas Rahman Junaid, Hurun Report India, Managing Director and Chief Researcher.

 

Mukesh Ambani (59) ranked first in the list for the fifth consecutive year, making the country eagerly wait for the commercial launch of Reliance Jio, the most affordable and anticipated 4G service in India. Recently, his wife Nita Ambani became the first Indian woman member of International Olympic Committee.

 

With a networth of INR 1, 21,528 Cr, Dilip Shanghvi (60) of Sun Pharma retains his second position. His flagship company, Sun Pharma posted a 25% growth in US business operations. The Government of India awarded him the civilian honour of the Padma Shri in 2016.

 

The man who constructed iconic RBI HQ in Mumbai, Pallonji Mistry (87) is on the third position with a networth of INR1, 10,109 Cr. The government of India bestowed him with Padmabushan early this year. Backed on by the strong performance of Tata group, for the first time, he rose to top 3 from 5th last year. (Backed by the stellar performance of the Tata group, he rose to top 3 for the first time, from 5th last year.)

 

SP Hinduja & family aggregated their wealth at INR 1, 00,790 Cr. The Hindujas, who are considered the most influential family in Asia lost their “bronze medal” to Pallonji Mistry. Hinduja is a teetotaler and is known to bring his own vegetarian food to the Queen's banquets at Buckingham Palace.

 

Table 1: Hurun India Rich List 2016 – Top 10

 

Dr Cyrus S Poonawalla (72) founder of Asia’s largest vaccine maker last year purchased the iconic Lincoln House in Mumbai, for Rs. 750 crore. His son Adar Poonawalla was in news recently for favouring Brexit stating that “Brexit was the best thing for the UK”. 
 
Azim Premji (71) informally known as the Czar of the Indian IT Industry. Azim Premji has become the first Indian to sign up for ‘The Giving Pledge’, a campaign led by Warren Buffett and Bill Gates, to encourage the wealthiest people to make a commitment to give most of their wealth to philanthropic causes He is the third nonAmerican after Richard Branson and David Sainsbury to join this philanthropy club. 
 
Shiv Nadar (71) Mr. Shiv Nadar established HCL in 1976 and is acknowledged as a visionary by the IT industry and his peers. Shiv Nadar Foundation is running “VidyaGyan” schools in Uttar Pradesh that provide free, world class education to rural toppers from economically disadvantaged backgrounds. 
 
Lakshmi Niwas Mittal (66) faced a meltdown of INR 16,371 Cr of his wealth due to the steel crisis, but it is still said that every fifth car uses the steel manufactured by Mittal’s company. Recently the Competition Commission charged $110 million fine for its role in steel cartels. ArcelorMittal SA has to pay this amount in 5 equal tranches. This is the biggest fine imposed on a single company for anticompetitive behavior in SA’s history. 
 
Uday Kotak (57) In 2015, Kotak entered the general insurance business and is partnering telecom magnate Sunil Mittal's Bharti Airtel to start a small payments bank. Kotak has reduced his stake in the Kotak Mahindra Bank to 40% as he is required to bring down his holding to 30% by 2016.  
 
Sunil Mittal & Family – Sunil Mittal (58), is the Founder & Chairman of Bharti Enterprises, which has diversified interests in telecom, insurance, real estate, hospitality, agri and food besides other ventures. On June 15, 2016, he was elected as Chairman of the International Chamber of Commerce. Recently he was in news for advising Munjals family in business restructuring. 
 
Mumbai Top again 
With 104 individuals, Mumbai is the capital for India’s super-rich, followed by New Delhi (65) and Bangalore (28) 

 

UAE & UK are the capitals for NRI’S. 32 are based outside India, led by SP Hinduja & Family (Hinduja Group, London), followed by LN Mittal (ArcelorMittal, London), Yusuffali MA (Emke Group, Abu Dhabi), Micky Jagtiani (Landmark Group, Dubai), Anil Agarwal (Vedanta Resources, London) and Romesh T Wadhwani (Symphony Technology, Palo Alto) 

 

Pharmaceuticals sector continues to rule 
 
The fastest wealth growing sector is transportation which grew by 65% followed by Construction materials and Retailing. The huge growth in transportation sector is supported by IPOs of airlines and logistics companies. Pharma has produced 12% of entries in the Hurun India Rich List 2016, followed by FMCG and Chemicals & Petrochemicals. Other industries that have had a good year include Financial Services and Textiles. 

 

Gainers 
 
The biggest gain registered was a 162% increase by Vijay Shekhar Sharma (38), the founder of Paytm. Rakesh Gangwal, “the king of blue skies”, boosted his networth to INR 15,927 Cr, supported by the post IPO performance of Indigo Airlines. 
 
Table 5: Hurun India Rich List 2016 – Biggest Gainers 

 

All the young entrepreneurs under 40 in Hurun India Rich List 2016 are active in their respective business 
 
 At 61, the average age is same as that of last year; with 11 under 40

 The youngest person on the list is Bhavish Aggarwal (30), co-founder of Ola Cabs  The oldest is MurliKewalramChanrai, 93, of KewalramChanrai 
 
Table 6: Hurun India Rich List 2016 – Entrants under 40 

Only 4% women 
 
Men dominate, with just 4% women occupying a place in the list. Savitri Jindal (66), is the richest woman with a personal fortune pegged at INR 35,028 Cr and bags the 18th position in the Hurun India Rich List 2016. She is followed by Indu Jain (79) at INR 28,026 Cr. The only self-made women entrepreneur is Kiran Mazumdar-Shaw (63) of Biocon, with a networth of INR 10,803 Cr. 
 
Table 7: Hurun India Rich List 2016 – Richest Women in India  

 

The IPO millionaires

 

The companies of 13 individuals went public this year. 10 New IPO’s hits Indian bourses of which 7 IPOs contributed 8 members to this year list. Healthcare contributes three names to IPO millionaire’s in 2016.

Entrepreneurs appreciated by the government of India

 

37 are Padma awardees, of which four are women. Three individuals were awarded in the last year, led by Pallonji Mistry, Indu Jain and Dilip Shanghvi, the first time someone from the Hurun India Rich List was awarded since 2014.

 

There is no one in Hurun India Rich List 2016 who has received the highest civilian award, “Bharat Ratna”. 5 individuals hold either of the two awards. For instance Kiran Mazumdar Shaw of Biocon and Devi Prasad Shetty of Narayana Hrudayalaya holds both Padma Shri and Padma Bhushan. Pratap reddy of Apollo Hospitals and Ratan Tata of Tata Sons holds both Padma Vibhushan and Padma Bhushan.

 

 

 

 

Largest public traded companies 
 
Of the publicly traded companies on the list, Mukesh Ambani’s Reliance has the highest valuation of INR 3,19,768 Cr (contributing 5.35% to the NIFTY index), followed by Infosys with INR 2,46,680 Cr and Sun Pharmaceutical INR 1,99,532 Cr. Followed by Tata Motors & Kotak Mahindra with market cap of INR 1,45,226 and INR 139,843 Cr respectively. 
 
 
Table 8: Hurun India Rich List 2016 - Self-Made Degree 

 

Hurun Report continued its Self-Made Scorecard, measuring the degree to which billionaires are inherited or self-made. The scorecard is out of five, where 1 is inherited and not active in business, and 5 is self-made without help from parents.  
 
Self-made with a little help from parents was the most common route to becoming a billionaire, featuring 51% of the list.  Second was self-made without help from parents, making up 9% of the list. Third was inheriting a business and growing it into a much bigger entity, with 38% and only one person was Self-Made Degree 1.   

 

Industry analysis 
 

The industries that added the most number of new millionaires to the list were pharmaceuticals, FMCG, financial service, chemicals and engineering & construction. 
 
For a snapshot of the industry that added most number of new entries, refer the table below. 
 
Table 9: Industry producing most number of new entrants 

Pharmaceuticals

   With an astounding figure of 21 Billionaires and 18 other individual mentions in the list, pharma sector has registered the highest contribution to the list. In 2016, the sector witnessed a 17% growth in cumulative wealth compared to 2015. The number of individuals doubled. Although the growth in cumulative wealth is substantially driven by the performance of private players, it should be noted that the listed players fared poorly. For instance, in 2015 the listed players registered a 66% average growth in share price compared to 9% in 2016.  The vaccine icon Dr. Cyrus Poonawalla of Serum Institute of India elevated his position by 6 ranks and is now comfortably placed in Top 5. 
 
FMCG
   

In 2016 when most sectors failed to keep up the momentum, FMCG registered a decent growth of 14% in terms of the cumulative wealth. Yoga Acharya’s Patanjali took the market by storm and is eating away market share of other multinational FMCG’s. Patanjali registered a turnover of INR 5,000 crores and expects to hit INR 10,000 crores in 2017. 
 

Chemicals & Petrochemicals 
21 individuals derived their wealth from the chemicals & petrochemicals sector. 6 new entrants are in the list. This sector saw its wealth increase on an average of 18% compared to that of last year. Gurbachan Singh & Kuldip Singh Dhingra, Berger Paints, saw their wealth grow by 53% during the period 2015-16. Devendra Kumar Jain (87), of Gujarat Flouro chemicals is the oldest billionaire from this sector. 
 
Consumer Durables  
Baked by increased disposable income and technological innovations, the entrepreneurs in consumer durable industry showed a positive trend with decent 5% growth in average wealth. The sector produced 3 new entrants to the list. As per studies, the consumer durables market is expected to expand at a compounded annual growth rate (CAGR) of 14.8% and Hurun Research Institute expects significant wealth creation in the near future. 
 
Financial Service 
Financial Services added 6 new faces into the list. The sector is topped by Uday Kotak (age 57, networth INR 51,624 Cr) followed by Sameer Gehlaut (age 42, INR 10,494 Cr). The Muthoot Finance produced most number of individuals from the financial services in Hurun India Rich List 2016.  
 
Stock Markets Performance Bombay Stock Exchange (BSE)

Sensex went down by 0.2% from 28,114 on July 31, 2015 to 28,051 on July 31, 2016. For the year under review, BSE Mid Cap (12.3%) and BSE Small Cap Index (3.23%) outperformed the benchmark index. Sensex failed to outperform Global indices S&P 500 (3.3%) and DJIA (4.2%). At a sectorial level, Healthcare and IT underperformed among the sectorial indices. All the others performed with at least 10% return – the biggest gainer was metals with a 36.26% return year to date. Currently, Indian stock market seems to be trading at an attractive valuation 19.6x compared to last year’s 20.18x 

 

This year’s Hurun India Rich List reveals some interesting nuggets of information:
 
 Promoters of Essar Oil Limited completed largest privatisation in Indian corporate history with delisting of Essar Oil Limited at a market valuation of INR 38,000 crore (USD 5.75 bn)

 With a strong performance backed by JSW steel, the richest women in the Hurun India Rich List has doubled her wealth (123%) when other steel companies under performed.

 128 individuals saw their  networth fall

 This year Hurun India Rich List added 6 new Billionaires to the list 

 

 

The Obituary – Hurun Indian Rich List 2016 

 

Stats: Record Highs 
 
 Cut-off to make the list was INR 1600 Cr, with a record high of 339 individuals, up from 296 last year and 235 the year before.  The number of dollar billionaires has jumped to a record high too, with 125 individuals, up 1 from last year. 
 
Table 10: Table analyzing the cut off and the number of entrepreneurs in Hurun India Rich List