The rise of the new billionaires of India and the fall of the old
NEW DELHI: India Is Going Through One Of The Greatest Periods Of Prosperity And Destruction At The Same Time.
A New Breed Of Self-made Entrepreneurs Is Vaulting Into The Ranks Of The Wealthy, Offsetting Billions Lost By Debt-burdened Industrialists And Members Of The Country's Old Dynasties. The Changes Are Set To Help India's Ultra-rich Population Grows At The World's Fastest Pace.
It's A Shift Shaped Partly By A Debt-fueled Expansion That Is Businesses From Power Generation To Airlines With $ 190 Billion In Sourced Loans. Over The Past Few Years, Prime Minister Narendra Modi's Government Has Cracked Down On Delinquent Borrowers, And India's Banks Moved To Seize Their Assets, A Dramatic Change For A Country Where The Wealthy Once Enjoyed Almost Complete Protection.
While Old Business Clans Continue To Dominate The Rich Lists Of India, A Ten-fold Expansion Of The Economy Since It Opened In The 1990s New Tycoons Has Been Generated In Areas Such As Technology. The Number Of Billionaire In India More Than Doubled To 119 Between 2013 And 2018, According To Knight Frank. And The Country Will Lead The Global Growth In Ultra High Net Worth Individuals, With Its Numbers Rising 39 Per Cent To 2,697 By 2023, The Researcher Estimates.
" The Business Environment Has Improved Over The Years," Said Charles Dhanaraj, A Professor At The Fox School Of Business At Temple University In Philadelphia." The Availability Of Venture Capital. And Private Equity Has Changed The Opportunity Space For Promising Businesses.
Here Are Some Famous Names That Have Seen A Change In Their Fortune:
Anil Ambani, Younger Brother Of Asia's Richest Man, Inherited Some Of The Newer Companies Of Reliance Industries Ltd In 2005 As Part Of A Settlement With Older Brother, Mukesh, After The Death Of Their Father Dhirubhai Ambani Three Years Earlier. Now, More Than A Decade Later, The Younger Ambani Has Repulsed The Creditors And Attacked Multiple Cases In Courts Amid The Bankruptcy Of His Telecom Company Reliance Communications Ltd. A Representative For Anil Ambani Didn't Comment. The Value Of His Holding Companies Has Plunged To About $ 120 Million From A Net Worth Of At Least $ 31 Billion In 2008, According To The Bloomberg Billionaires Index.
A Hausse And A Crash:
The First-generation Entrepreneurs, Shashi And Ravi Ruia, Started The Essar Group In 1969 As A Construction Company. Later They Diversified Into New Businesses, Investing About $ 18 Billion Between 2008 And 2012. The Excessive Leverage Across The Group And Some Adverse Policy Actions Forced To Sell Many Of Their Assets. The Ruia Brothers Were Jointly Worth More Than $ 4 Billion At The Start Of 2015, And Have Since Lost Their Billionaire Status, According To The Bloomberg Billionaires Index.
Tulsi Tanti’s Suzlon Energy Ltd Purchased German REpower Systems For Nearly $ 2 Billion In 2007 To Be Hailed As A Global Company, But Things Went Downhill From There. Once The World's Top Turbine Maker, Suzlon's Debt-driven Expansion Caused One Of India's Largest Corporate Debt Default In 2012. Seven Years Later Tanti Is Struggling To Repair His Company's Finances. Tanti, Who Had A Net Worth Of More Than $ 5.7 Billion In 2007, Has Lost His Billionaire Status, According To Data Compiled By Bloomberg.
After Inheriting His Father's Heritage, Vijay Mallya , Started Kingfisher Airlines Ltd. Struggling To Repay Lenders, The Carrier Was Grounded Seven Years Later. Mallya Is Currently Fighting An Extradition Case In London After Fleeing India. Lenders Have Sought To Recover As Much As $ 1.5 Billion From The Man Known As" The King Of Good Times" For His Flamboyant Lifestyle.
Binny Bansal And Sachin Bansal , who aren’t related, created Flipkart, India’s largest online retailer, within a decade. Last year, they sold their company to Walmart Inc, becoming Billionaire . Binny left shortly after, with Walmart said to have conducted an inquiry into a consensual relationship he had with a woman. He still holds 4 per cent of Flipkart And a board seat. Sachin exited Flipkart at the time of the Walmart acquisition.
The Payment Guru:
Vijay Shekhar Sharma founded One97 Communications in 2000 when fewer than 10 million Indians were online. Business at his Paytm digital payment unit soared after the government eliminated 500 And 1,000 rupee banknotes at the end of 2016. An August 2018 funding round valued One97 at more than $10 billion, people familiar with the matter said at the time. Sharma currently owns 15 per cent of the company, according to a person familiar with the matter.
Byju Raveendran, chief executive of Bangalore-based Think & Learn Pvt, launched the Byju’s K-12 education app in 2015. His videos explain fractions or the laws of motion at a conceptual level, drawing almost 30 million users from 1,700 cities. A December funding round valued it at $3.6 billion. Raveendran, his wife And brother together own about 36 per cent, according to Raveendran.