Staying rich in a downturn

R Jagannathan/ Forbes India

A letter from the editor-in-chief

The past few years have not been great for Indian business. Most of them have either been running hard to stay in the same place, or have slipped on misfortune’s banana peels. Of course, one tycoon's bad run of luck is another’s opportunity to make a fortune—as is the case with some of India’s tech titans.

With the rupee ruling weak and falling by more than 50 percent over the past two to three years, they have been raking it in even when the US and global economies have been struggling to revive themselves.

Many of the rest, who saw import costs and dollar-denominated debt decimating their balance-sheets, have been cut to size.

This reality is reflected in the sheer number of exits from the India Rich List of 2013, with 15 formerly wealthier incumbents moving out. In the top 10, unrelated problems drove the Savitri Jindal family and the Ruias out while their places have been taken by Sunil Mittal of Bharti Airtel and Shiv Nadar of HCL Technologies.

A few other highlights: Software and pharma were the biggest wealth creators for 2013; infrastructure and finance were big destroyers. Despite the aviation industry’s downbeat status, Kapil and Rahul Bhatia of Indigo figure at No. 33 on our Rich List with USD 1.71 billion; BR Shetty, who runs the UAE’s largest hospital chain, saw a giant 62 percent leap in fortunes—for him at least, health is wealth.

However, the interesting thing is not the snakes-and-ladders game, but how stable the wealth of the top 100 has been even in unstable times. In 2012, the collective wealth of the 100 was around USD 250.6 billion; this year, it’s more than USD 258.6 billion. Not a big jump after adjusting for inflation, but not bad at all when the economy has been going downhill.

Another aspect is its concentration. The top 12 billionaires, led by Mukesh Ambani of Reliance Industries, account for half the wealth of the India Rich List, with a 49.88 percent share. But if you look at the top 20, their share has actually fallen over the years. Conclusion: The wealthy always have competition from below.

The broader message on the wealth front is also cheery. At Forbes India, we have always emphasised entrepreneurial capitalism, and wealth creation is the important side effect of success. By that yardstick, the India Rich List 2013 tells us that come hell or high water, entrepreneurship is doing quite well, thank you, despite occasional blips. Cheers!

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