Abhey Oswal: A man of multiple interests

His footprints spread across petrochemicals, media and healthcare

Don't want to miss the best from Business Standard?

In the 1980s, Abhey Oswal was known as the ‘next Ambani’. He was market-savvy and had a knack of taking over businesses and building them from the ground up. The Ambani reference would refuse to go away, even in the last months of his life.

Oswal, 67, passed away after a heart attack on Tuesday in Moscow, where he had gone to market some medicines developed by one of his ventures. He is survived by wife Aruna, who is engaged in philanthropic activities through Aruna & Abhey Oswal Trust, sons Pankaj and Shail, and daughter Shallu.

The bald, bespectacled businessman had a history of heart ailment, having undergone a bypass surgery a few years ago. Industrialist and son-in-law Navin Jindal tweeted on Wednesday, “We are all shocked and can’t believe it but it’s true. Such is life. R.I.P.” Jindal is married to Oswal’s daughter Shallu.

Supreme Court lawyer and Punjab Pradesh Congress Committee spokesperson Jaiveer Shergill called Oswal ‘legendary’ and described him as a “man who built the lives of many” and a “true business leader of Punjab”.

Oswal was born in Ludhiana to Lala Vidhyasagar Oswal, who built a thriving woolen and hosiery business from the scratch. A branch of the family still is a leading player in woollen garments and owns the Monte Carlo brand.

But, Oswal had other interests. A 1990 India Today article described him as “trader turned tycoon,” referring to his interests in stock markets that in turn helped him in buying out companies.

Still in his late 20s, Oswal established Oswal Agro Ltd in 1979. Soon, he went on his fabled acquisition spree, which would eventually get him into trouble with authorities. ICI’s plant in Rishra, West Bengal, Union Carbide’s unit in Mumbai and Jagatjit Industries’ sugar mill in Punjab became part of the Oswal group, during Rajiv Gandhi’s regime.

He also dabbled in international trade, importing portable gensets and televisions.

By the time he arrived in Delhi 10 years later, Oswal had gone from a small-time trader to a tycoon worth Rs 500 crore with strong presence in agri-related industries. Twenty-five years ago, that was a huge number.

But, as the government changed and the new National Front government led by V P Singh came to power, the scene changed for Oswal, too. In December 1990, sleuths from the country’s forex watchdog confronted him at the Delhi airport.

After a questioning, Oswal was informed that he was under arrest on two counts of Foreign Exchange Regulation Act violations. “The chubby-faced industrialist, known for his relish for dramatics, immediately sprawled on the floor complaining of chest pain. After initial medical examination, he was moved to Delhi’s well-equipped Escorts heart hospital where the doctors took him in for check-ups. As his lawyers struggled in the courts for his bail, he remained lodged in the hospital,” the India Today report said.

The report also cites some interesting rumours that were going around then. “Some have even suggested that a Bombay-based giant industrial house, that has regained its political influence after the change in government in Delhi, may be behind the move as it feels threatened by Oswal’s trespassing into what it considers its domain - petrochemicals.”

Oswal managed to recover from these setbacks and put up the world’s largest grassroots Di-Ammonium Phosphate (DAP) plant in Paradip, Odisha. This plant was sold to IFFCO in one of the largest all-cash deals of that time at Rs 2,180 crore in 2005.

Oswal and his empire gradually faded away from public memory as new leaders took over the stock markets during the bull-run. When these leaders burnt their hands as markets turned choppy, Oswal struck back.

Oswal Greentech, the listed firm that originally housed Oswal’s fertiliser and chemicals businesses, bought a 14.2 per cent stake in news broadcaster NDTV, according to stock exchange data.

He had also floated Lucky Star Entertainment for his son Shail, who had interest in music and singing. His elder son, Pankaj, has set up what is said to be the world’s largest ammonia plant in Perth, Australia.

Later, Oswal expanded his presence in the news media with Oswal Agro and Oswal Greentech, the two listed firms, owning 50 per cent in News Nation, a 24-hour Hindi news channel.

In January, The Caravan magazine named Oswal along with Mukesh Ambani and Mahendra Nahata as businessmen who had significant interest in the news business.

According to Ministry of Corporate Affairs records, Oswal was on the board of three companies - Oswal Greentech, Oswal Agro Mills and News Nation Network. Of these, News Nation was not listed.

As of Friday, Oswal Greentech had a market capitalisation of Rs 600 crore, while Oswal Agro Mills was worth Rs 150 crore. The promoter holdings, which stood at 64.33 per cent and 41.74 per cent, respectively, would be worth around Rs 450 crore.