Azim Premji’s net worth falls sharply from philanthropic contributions

Business tycoon Azim Premji

Wipro founder Azim Premji, who is known for his philanthropic work, was replaced by Gautam Adani as India’s second-richest person, according to the Forbes India Rich List, 2019. The tech tycoon slipped several spots and featured in the 17th spot on the list.

He reportedly gave away huge chunks of his wealth to charity, and this is believed to be one of the primary reasons behind the substantial drop in his fortunes. Premji’s net worth last year was $21 billion, which plummeted to $7.2 billion this year. More than a third of the decline could reportedly be attributed to the generosity of Azim Premji, as per Forbes.

Azim Premji's wealth dropped by $13.8 billion as he gave away a chunk of his fortune to charity; he's on the #17 spot on the #ForbesIndiaRichList2019

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Full list: https://t.co/HhQsMVycaA @azimpremjiuniv #ForbesIndiaRichList2019 #AzimPremji pic.twitter.com/z1yMCTZjgT

— Forbes India (@forbes_india) October 11, 2019

Lakshmi Mittal, who chairs ArcelorMittal chairman, also saw his net worth drop to $10.4 billion, making a slide to the ninth rank this year. The steel tycoon was declared the third richest person in India in 2018, when his net worth was $18.3 billion. However, the sharp fall in his fortunes is due to market conditions such as falling steel prices and low demand.

Forbes said: “Steel baron Lakshmi Mittal, who has yet to complete the acquisition of bankrupt Essar Steel, took a $7.8 billion hit amid falling steel prices and weak demand.”

Other magnates who operate in the automobile industry or consumer goods space also saw a dip in their fortunes. For instance, auto parts maker Vivek Chaand Sehgal saw his net worth go down by almost 50 percent to $2.45 billion, owing to the economic slump that has hit the automobile industry and overall weak consumer sentiment in the sector.

Summing up, an 8 percent drop was recorded in the overall wealth of the wealthiest business tycoons in India to $452 billion, as per the Forbes list. This year is believed to have been a “challenging year for the nation’s wealthiest” given the growth slowdown.

Notably, six newcomers debuted to this year’s list, which includes Byju Raveendran, Manohar Lal and Madhusudan Agarwal of Haldiram Snacks, and Rajesh Mehra of The Jaquar group.