Wealth of India’s super rich grows by 20% amid Covid; Mumbai home to 26% wealth creators

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Updated: Sep 30, 2020 3:31 PM

The wealth of individuals in the IIFL Wealth Hurun India Rich List 2020 has grown twice as fast as the net market capitalization growth of all the companies listed in the BSE.

Being home to 217 individuals that comprise 26% of the list, Mumbai is the residential capital of India’s wealth creators, followed by New Delhi and Bengaluru.

Business activities across the world got hugely impacted by the spread of the Covid-19 pandemic and the resultant lockdowns. As a result, like entrepreneurs based in other countries, 2020 has been a challenging year for Indian entrepreneurs also. Despite all these headwinds, the wealth of individuals in the IIFL Wealth Hurun India Rich List 2020 has grown twice as fast as the net market capitalization growth of all the companies listed in the BSE. The top 100 individuals in the list account for nearly 64% wealth of the IIFL Wealth Hurun India Rich List 2020.

In fact, the IIFL Wealth Hurun India Rich List 2020 identified 828 individuals, including 40 women, with at least Rs 1,000 crore, spread across 111 cities, up from 94 last year. The average wealth in the list is Rs 7,300 cr and the average age is 63. The list features self-made founders and professional managers, inheritors, CEOs, NRIs, investors, cashed out entrepreneurs and so on.

The list added 162 new faces, recording a cumulative wealth growth of 20% or Rs 10 lakh crore compared to last year, while the average wealth increased by 9%. 674 individuals (81%) saw their wealth increase or staying at the same level. The combined wealth of India’s richest is a staggering $823bn, equating to 1/3rd of India’s GDP and more than the combined GDP of Pakistan, Bangladesh, Sri Lanka, Afghanistan and Bhutan.

Among individuals, Mukesh Ambani – with a wealth of Rs 6,58,400 crore – continues to be the richest person in India. At the beginning of the Covid-19 pandemic, his wealth dropped by 28% to Rs 3,50,000 cr and then backed by a series of fund raising and strategic investment from Facebook, Google and so on into Jio and Reliance Retail, his valuation registered a “V shaped recovery” and increased by 85% in 4 months. Despite the ongoing pandemic, the Reliance’s market cap crossed Rs 10 lakh cr and registered a 73% increase in Mukesh Ambani’s wealth.

With a wealth of Rs 1,43,700 cr, the Hinduja brothers occupy the second spot in the list. The brothers saw the valuation drop by 23% due to a lackluster performance of their flagship companies such as IndusInd Bank, Gulf Oil and GOCL Corporation Limited whose share price came down by 54%, 12% and 19%, respectively.

With a wealth of Rs 1,14,400 cr, Azim Premji moves down 2 positions to the fifth rank. A celebrated philanthropist, Azim Premji through his foundation and two other scientific institutes joined hands in May 2020 to fight the COVID-19 pandemic, by conducting research to find innovative testing methods. He celebrated his 75th birthday this year and the publisher Harper Collins announced the commencement of his biography titled “The Man Beyond Millions”.

Where They Live

Being home to 217 individuals that comprise 26% of the list, Mumbai is the residential capital of India’s wealth creators, followed by New Delhi and Bengaluru. With 58 new entrants and 17 dropouts, Mumbai registered a net increase of 41 individuals and for the first time New Delhi registered a net loss of 5 with 17 new additions and 21 dropouts.

With 248 and 128 entrants, respectively, Maharashtra and Delhi are the preferred states of residence for individuals in IIFL Wealth Hurun India Rich List 2020. Adding 11 individuals, Gujarat breaks into top 5.

“Over half of the new additions in the IIFL Wealth Hurun India Rich List 2020 are contributed by the Top 3 cities this year – a spike from the 36% last year. The fact that the list features entrepreneurs from 111 cities evidence the length and breadth of India’s wealth creation story,” says Anas Rahman Junaid, MD and Chief Researcher, Hurun India.

Industry Analysis

Among the sectors, Pharmaceuticals — with 122 individuals on the list — leads the list followed by Chemicals & Petrochemicals with 55 individuals and Software & Services with 50 individuals. Automobile & Auto Components, Food & Beverages, Manufacturing, Construction & Engineering, etc. are some of the other big contributors to the IIFL Wealth Hurun India Rich List 2020.

The industries that added the greatest number of new entrants to the list were Pharmaceuticals, Software & Services, and Chemicals & Petrochemicals. Except for Construction & Engineering, FMCG, and Financial Services, almost all the industries added more individuals than last year.

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