Azim Premji’s net worth falls sharply from philanthropic contributions

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.
According to the Forbes India Rich List this year, 14 people were rendered poorer by $1 billion or more this year, while nine people who featured in the list in 2018, were dropped off.

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.