GROHE HURUN INDIA REAL ESTATE RICH LIST 2017
DELHI BASED TYCOON KUSHAL PAL SINGH (86) OF DLF IS THE REAL ESTATE KING OF INDIA
KUSHAL PAL SINGH TOPS THE LIST WITH A WEALTH OF INR 23,460 CRORE,
FOLLOWED BY MUMBAI BASED MANGAL PRABHAT LODHA FROM LODHA GROUP WITH WEALTH INR 18,610 CRORE AND BENGALURU BASED JITENDRA VIRWANI FROM EMBASSY PROPERTY DEVELOPMENTS WITH A WEALTH INR OF 16,700 CRORE
SMITHA V CRISHNA (66), OF GODREJ PROPERTIES IS THE RICHEST WOMAN WITH A FORTUNE OF INR 2,210 CRORE
3 CITIES, MUMBAI, NEW DELHI AND BENGALURU ARE HOME TO 74% OF THE GROHE HURUN INDIA REAL ESTATE RICH LIST
MUMBAI, DELHI AND BENGALURU ARE THE TOP CITIES IN GROHE HURUN INDIA REAL ESTATE RICH LIST AND HURUN INDIA RICH LIST
35 INDIVIDUALS IN REAL ESTATE LIST ALSO FEATURED IN HURUN INDIA RICH LIST
6 BILLIONAIRES IN GROHE HURUN INDIA REAL ESTATE RICH LIST 2017
THE MENDA FAMILY, OWNS AND RUNS THE MOST VALUABLE COMMERCIAL SPACE DEVELOPER IN SOUTH INDIA, RMZ CORP VALUED AT INR 19,230 CRORE
AVERAGE WEALTH OF GROHE HURUN INDIA REAL ESTATE RICH LIST 2017 IS INR 1,969 CRORE
60% OF THE LIST IS FIRST GENERATION ENTREPRENEURS 62% IN THE LIST ARE RESIDENTIAL DEVELOPERS, THE REST ARE COMMERCIAL, HOSPITALITY AND RETAIL REAL ESTATE DEVELOPERS
AVERAGE AGE 56. THE TOP 10’S AVERAGE AGE IS 60. THE YOUNGEST IS KUNAL MENDA (23) WITH A NETWORTH OF INR 660 CRORE AND THE OLDEST IS PRITHVI RAJ SINGH OBEROI (88) OF EAST INDIA HOTELS WITH A NETWORTH OF INR 3,120 CRORE
7 UNDER 40 AND 4 INDIVIDUALS ABOVE 80
MUMBAI, THE MOST PREFERRED CITY FOR HEADQUARTERS
PHILANTHROPISTS: AJAY PIRAMAL AND MA YUSUFF ALI ALSO FEATURED IN HURUN INDIA PHILANTHROPY LIST 2017 BY DONATING INR 111 CRORE AND INR 19 CRORE RESPECTIVELY.
LEADING AUTHORITY ON INDIA’S WEALTH RELEASES GROHE HURUN INDIA REAL ESTATE RICH LIST 2017
(5th October 2017, Mumbai, India) Hurun Report today released the GROHE Hurun India Real Estate Rich List 2017 is the list of richest real estate entrepreneurs in India. This is the first time a serious attempt has been made to understand about the real estate entrepreneurs and to highlight their achievement through rich list as a medium.
“With a growing middle class population, it is imperative that India produces respectable brands in real estate in the next few years. GROHE, a leader in premium sanitary fitting is committed to bringing world class technology and design to consumers, and these key developers are the powerful movers and shakers of the industry who appreciate and acknowledge the best world has to offer. We are delighted to be in association with them as this allows GROHE to create a platform for bringing world class solutions to the Indian consumers via the developer community’, says Anas Rahman Junaid MD and Chief Researcher, Hurun Report India.
“The growth in India’s middle class is driving strong demand for quality houses, which real estate brands have an opportunity to fulfill. I am delighted to partner with the Hurun Report India, India’s leading research house, to connect with consumers through their platform promoting respected real estate brands and entrepreneurs in India”, says Shubhajit Sen, Country Head, GROHE India.
THE 2017 GROHE HURUN INDIA REAL ESTATE RICH LIST, other insights
Among self-made entrepreneurs in the list, Kushal Pal Singh tops the list followed by Mangal Prabhat Lodha and Jitendra Virwani
With 38 individuals, Mumbai is the preferred city followed by New Delhi and Bengaluru with 19 and 17 individuals respectively.
“The top 5 cities accounts for 86% of top 100 real estate rich-listers in India. Majority of real estate developers are discreet, so for every entrepreneur who we have found, we may have missed 2. Real estate holdings are rather scattered in India and there is a good chance that we may have missed associated companies/ subsidiaries in certain cases” says Anas Rahman Junaid, Managing Director and Chief Researcher, Hurun Report India.
“The cut off of INR 300 crore is surprisingly low for a big country like India.” says Rupert Hoogewerf, Chairman and Chief Researcher, Hurun Report Global.
Table 1: Top 10 in Grohe Hurun India Real Estate Rich List 2017
Kushal Pal Singh, 87, the wealthiest real estate baron in India, tops the list with a fortune of INR 23,460 crore .The owner of Delhi Land and Finance (DLF) is one of the largest real estate developers, who is a pioneer in developing Gurugram the leading Financial and Industrial Hub in the country. The only real estate company that garnered the largest IPO and developed 27 million square feet till date. He was conferred the Padma Bhushan one of the highest civilian award in the country.
Mangal Prabhat Lodha, 61, with a net worth of INR 18,610 crore is the second richest person in GROHE Hurun India Real Estate Rich List. He laid the foundation of the Lodha Group. Lodha group is currently developing One Grosvenor Square, which is a premier property and home to the former Canadian embassy. MP Lodha is currently serving as the Member of Legislative Assembly.
Jitendra Virwani, 51, is considered the South India’s largest office space landlord with a fortune of INR 16,700 crore. He is currently the chairman of the Embassy group and has been a pioneer in building industrial parks and warehousing spaces. He owns the Stone Hill International School, one of India’s largest private owned academies. He is also a member of the equestrian federation of India.
Yusuffali MA, 61, manages his real estate investments in mall and hospitalities sectors through Line Investment and Property (LIP), his real estate flagship company. LIP currently manages more than 8.6m square feet of retail space across GCC and India which will grow to encompass 12m square feet with the upcoming new projects by end of 2018.He is the first Asian to be elected to the Abu Dhabi chamber of Commerce and Industry. He has recently purchased site of the original Scotland Yard police station in London to construct a five star hotel. Vikas Oberoi, 47, a Harvard Alumnus who runs the Oberoi Realty, has a wealth of INR 11,040 crore. He took over the reins of the company started by his father Ranvir Oberoi. His corporate strategy and diversification plan has seen a massive growth for Oberoi Realty in nine folds with a net profit of 40 percent. Under his guidance the firm has 22 million square feet in progress and brands such as Ritz Carlton. Chandru Lachmandas Raheja, 77, heads the privately held commercial developer in Mumbai with a fortune of INR 10,440 crore. K Raheja Corp has portfolio of completely leased 20 million sq ft office spaces across Mumbai, Navi Mumbai, Hyderabad and Pune. K Raheja Corp developed the first organised suburban business park, Mindspace, in Mumbai’s Malad suburb.
Atul Ruia, 46, the Textile tycoon who started the mall chains under the Phoenix brand which attracts 12 million shoppers every year has a wealth of INR 5,160 crore. He was educated at the Wharton school of finance. He is known for taking high risk in the market for large investments. He was instrumental in setting the High Street Phoenix in Mumbai by rebuilding over the family mill.
Sameer Gehlaut, 43, founder of Indiabulls Group is an alumni of IIT Delhi, who has wealth amounting to INR 5,050 crore. Indiabulls is one of the top dividend paying firms and a AAA rated company. Indiabulls Group is the third largest real estate company and has delivered a record of 4.7 million square feet under Mr Gehlaut’s guidance.
Ajay Piramal, 62, a Harvard Alumnus who leads the Piramal Group, has a wealth of INR 3,640 crore. He evolved the textile business to conglomerate with diversified business interest. His corporate strategy and diversification plan has seen a massive growth for Piramal Realty. Under his leadership the firm has over 10 million square feet developed. The Piramal Realty developed India’s first mall, Crossroads, at South Mumbai.
Niranjan Hiranandani and Surendra Hiranandani established the Hiranandani group in the late 1970s by. The Mumbai-based developer has presence across commercial, residential, hospitality and education segments. The group is one of the early developer’s to undertake township development projects, such as Hiranandani Gardens in Powai and Hiranandani Meadows and Hiranandani Estate in Thane.
The Richest Real Estate families
Indian Real Estate is primarily run by families. The families with highest number of entrants in GROHE Hurun India Real Estate Rich List 2017 is listed below
Where they live.
By state, Maharashtra tops the list with 38 real estate entrepreneurs in the list, followed by Delhi with 19 individuals and Karnataka with 17 individuals.
Housing Price Index
RBI Housing price index indicates that demonetization has a positive impact on housing prices. Housing price index rose 10% for the 9 months ended on September 2017 compared to marginal growth rate of 3% in FY 16. All major cities have recorded a price increase after demonetization except Jaipur where the prices are 3% below the pre demonetization level. Lucknow, Chennai and Ahmedabad recorded post demonetization housing price rise of 30%, 20% and 17% respectively.
“Based on a survey with the real estate agents in and around India, one could expect the house price to go up in the short term and a possible correction in 5 years especially in small cities. This is supported by inventory overhang and possible long term effects of the current GDP slow down.” says Anas Rahman Junaid, MD and Chief Researcher, Hurun Report India.
Leverage in GROHE Hurun India Real Estate Rich List 2017
84% of companies in GROHE Hurun India Real Estate List 2017 are leveraged. More than half of the companies have a debt to equity ratio of less than 100%, indicating the strength of their balance sheet and their scale up potential. This analysis also validates the stable rating received by these companies from rating agencies such as CRISIL, ICRA, CARE and Brickwork. The companies with a lower debt to equity ratio has higher valuation compared to their overleveraged peers in the List.
Chart: GROHE Hurun India Real Estate Rich List 2017, Percentage of companies in the list (Y axis) versus Debt to Equity Ratio (X axis)
Richest in each city
By city, Mumbai leads with 38 individuals, followed by New Delhi with 19. Mangal Prabhat Lodha from Lodha Group is the richest real estate entrepreneur in Mumbai.
Table 3: GROHE Hurun India Real Estate Rich List 2017 by City
Top Property Developers by City
Table 4: GROHE Hurun India Real Estate Rich List 2017, Top Property Developers by City
The real estate players have broadly categorised the market into Premium, Aspirational and Affordable segments.
Table 5: GROHE Hurun India Real Estate Rich List 2017, top property developers with focus on premium housing
In the Premium segment, Lodha group leads the pack, with total 6 million square feet developed till date. The Oberoi group seconds the list with over 39 prime properties followed by Indiabulls Real estate. Kolte-Patil is an exceptionally efficient player in the top five for delivering projects on time rated by its customers followed by the only Bengaluru based real estate Mantri developers that made to the top five. Each of these real estate magnates have their own unique signature style catering to the Premium segment.
Table 6: GROHE Hurun India Real Estate Rich List 2017, Top Property Developers focus on Aspirational customers
In the aspirational segment, Bengaluru based Sobha developers lead the pack. Sobha Developers has completed 118 real estate projects till date. Godrej properties falls in the top five with its signature properties in and around the financial capital (Mumbai) and has developed around 90 million square feet till date.
Table 7: GROHE Hurun India Real Estate Rich List 2017, Top Property Developers focus on Affordable Customer Segment
The top five in the affordable category caters to the middle class and above segment. Omaxe tops in the affordable category completed around 101 million square feet projects. Followed by the Mumbai based Kalpataru who have created a niche for themselves in the Maharashtra region. NCR based real estate player Manoj Gaur has registered with his signature project Gaur Yamuna City, which had a massive PR strategy in and around the NCR region. The Kolkata based Harsh Vardhan Neotia entered top five in the affordable category with its ecology based construction theme in and around Kolkata.
Table 8: GROHE Hurun India Real Estate Rich List 2017, Top Property Developers in the residential category
Lodha developers focus exclusively in Mumbai and in Pune markets and saw an increase in demand in Pune due to its start-up and educational opportunities. Similarly Oberoi Realty has created a brand in Mumbai region and was awarded the “Best upcoming Premium residential project in Mumbai “at the SAARC summit. Indiabulls tops the list in the residential segment due to its high market capitalization in terms of investment and quality projects. Premium based realtor Sunteck Realty has made an exceptional mark with its ultra-premium projects in and around Mumbai. The Only NCR realtor to top the 5 list is Rohtas Goel, Omaxe where maximum projects were developed in Noida and Faridabad.
Table 9: GROHE Hurun India Real Estate Rich List 2017, Top Property Developers in Commercial segment
The real estate baron, Kushal Pal Singh’s DLF tops the commercial category with developments in and around NCR region and spread in few regions in South India; they are followed by Jitendra Virwani, the magnate who brought in the chain of Embassy Office spaces catering to most of the blue chip companies in India, focusing on Bengaluru - the start-up hub. K Raheja Corp has more than 20million sq ft income producing office portfolio across west and South.The Hiranandani’s have become one of the pioneers in the commercial segment with its unique neo classical structures and unique designs.
“We believe that Indian Real Estate Brands are going to grow very powerfully over the next 5 years, very much in line with comparable economies such as China”, says Anas Rahman Junaid, Managing Director and Chief Researcher, Hurun Report.
Top 10 Real Estate Self Made entrepreneurs
Kushal Pal Singh & family of DLF top the list with INR 23,460 Crore, followed by Mangal Prabhat Lodha and Jitendra Virwani with wealth INR 18,610 Crore and INR 16,700 Crore respectively.
Table 10: GROHE Hurun India Real Estate Rich List 2017, Top 10 Self-made individuals
Under 40 Real Estate entrepreneurs
Kunal Menda of RMZ is the youngest entrepreneur under 40. Menda Family is possibly one of the biggest commercial spaces developers in India. Sidharth Menda, 28 follows Kunal Menda.
Interestingly, KV Satish, 40, of DS Max is also a film actor in Telugu. His movie Yamaleela 2 was an average box office grosser.
2 of the under 40 are self-made, 4 are inherited and active in the business. Although Kunal Menda owns shares in RMZ, he is completing his PhD on Aeronautics and Astronautics at Stanford.
Average age of under 40 in the List is 34. Bengaluru is home to most number of young entrepreneurs.
Table 11: GROHE Hurun India Real Estate Rich List 2017, Under 40 Real Estate entrepreneurs
Table 12: Self-Made Score Card and Percentage of Real Estate entrepreneurs
35 individuals in Hurun India Rich List 2017
BSE Realty index have surged on positives such as RERA and affordable housing initiatives by the current government. Consumer Durables gained over 32.7% on timely GST developments and rollout. Banking and Financial sectors gained with RBI stepping in to solve the NPA issues. Real Estate sector is in top 10 most performing sectors in Hurun India Rich List 2017. In 2017, real estate sector contributed 15 more individuals to Hurun India Rich List. Real Estate posted 63% increase in average wealth compared to that of 2016.
Kushal Pal Singh (86) of DLF is the richest real estate billionaire in the list with a wealth of INR 23,460 crore. Mangal Prabhat Lodha (61), founder of Lodha Group is the richest private real estate developer in the list with a wealth of INR 18,610 crore followed by Jitendra Virwani (51) of Embassy Property Developments with INR 16,700 crore.
Table 13: The table below shows the entrants in GROHE Hurun India Real Estate Rich List 2017 in Hurun India Rich List 2017-10-01
Most of the valuation has been conducted effecting valuation multiples on reported sales figures. Chart below depicts the percentage of companies in various sales bracket. 14 companies in list registered a sales of more than INR 2,000 crore and around 35 companies registered a sales of more than INR 1,000 crore.
“A further drop in repo rate would result in cheaper loans/ EMIs. Heightened accountability due to RERA and potential benefits transfer to customers due to GST input credits will improve not only developers’ sentiments and credibility but also the buying capability of the customers”, says Anas Rahman Junaid, MD and Chief Researcher, Hurun Report India.
Chart: GROHE Hurun India Real Estate Rich List 2017, the chart depicts the sales range of various companies in the list. (All figures in INR crore)
Credit worthiness of companies in GROHE Hurun India Real Estate Rich List 2017
Only 76% of companies are credit rated - ICRA (18%), CRISIL (17%) and Brickwork (16%). 99% of rated companies in GROHE Hurun India Real Estate Rich List 2017 have a stable credit, rating reaffirms the quality of business listed . For three companies in the list, ratings have been withdrawn by the respective agencies.
Table 14: Top 5 Real Estate Companies by market capitalization in GROHE Hurun India Real Estate Rich List 2017
The Real Estate Business communities
The top 100 real estate barons are more than 40% from the Baniya community and another 2% from the Parsi community. The Baniyas are considered the mercantile community in India consisting of the Marwaris, Gujaratis and Sindhis, followed by the Parsis who have been major traders from the early independence days and the rest from the Non Baniya community.
The GROHE Hurun India Real Estate Rich List 2017 is a snapshot of wealth as on 30 September 2017. This is a sub list of Hurun India Rich List 2017. We have tried to limit the valuation to primary ownership in Indian real estate businesses registered in Ministry of Corporate Affairs, however there could be outliers. For instance, Godrej group is a diversified conglomerate with diverse business interest and Adi Godrej has a valuation of INR 37,800 crore in Hurun India Rich List 2017. However, in the GROHE Hurun India Real Estate Rich List 2017, we have considered the valuation of Godrej Properties for Adi Godrej, which would translate to INR 2,210 crore.
Valuing the wealth of India’s richest is as much an art as it is a science. Sure, we have missed some, but we believe the GROHE Hurun India Real Estate Rich List 2017 to be the most serious attempt to identify India’s top entrepreneurs and to measure value of their holdings in the respective real estate businesses. Our team of researchers have cross checked information with entrepreneurs, industry experts, journalists, bankers, and regulators, government filings, as well as previous years’ databases. For nonlisted companies our valuation was based on a comparison with their listed equivalents using prevailing industry multiples such as Price to Earnings, Price to Sales, EV to Sales, EV to EBITDA and also other methodologies including Discounted Cash Flow, and so on. We have not included undeveloped land holdings in our list.
This year, we have split out siblings; so, for companies like Godrej Properties we have split the net worth across five individuals.
GROHE Hurun India Real Estate Rich List 2017 – TOP 100