The analysis is based on promoters’ net worth of $1 billion or more as on December 27, 2019, based on monthly average rupee-dollar exchange rate of Rs 71 to a dollar.
Consumer goods makers, real estate developers, and retail lenders were the biggest gainers in 2019, while pharma entrepreneurs, automakers, and owners of capital goods companies saw a sharp erosion in wealth in the current calendar year. Analysts attribute this to investors’ preference for consumer-demand related stocks in an otherwise lacklustre economic environment.
“This is an excellent time to be a promoter of a profitable consumer goods company or retail lender. These sectors continue to grow, even if other sectors of the economy are stagnating,” says G Chokkalingam, founder & managing director (MD), Equinomics Research & Advisory Services.
The sectoral dichotomy shows in the rich list for 2019.
Dua is the biggest gainer and newest member of the billionaire promoter’s club. His family net worth is up nearly 65 per cent in the last 12 months to around Rs 10,800 crore, or $1.5 billion, at the monthly average exchange rate.
The Dua family was worth around Rs 6,500 crore, or $900 million, at the end of December 2018.
The Dua family owned 71 per cent stake in Relaxo at the end of September this year, down from 74.2 per cent at the end of December 2018. The company's m-cap is up 72 per cent in the current calendar year, making it one of the top performing consumer stocks on the bourses.
Dua is followed by Mayank Singhal of agro chemical maker PI Industries, whose share price is up 70.4 per cent during the year. The Singhal family is now worth around Rs 10,400 crore, or around $1.5 billion, up from around Rs 6,000 crore at the end of 2018.
The family owns 51.4 per stake in the company, unchanged from last year.
Irfan Razack, chairman & MD, Prestige Estates Projects, a real estate player in Bengaluru, also made it to the list this year, as investors bid up his company's share prices. The family stake in the company is now worth around Rs 8,800 crore, up 53.4 per cent during the year so far. The family owns 70 per cent stake in the company.
Other new entrants to rich list include G M Rao of GMR Infra, Sanjay Agrawal of AU Small Finance Bank, and Motilal Oswal and Ramdeo Agrawal of Motilal Oswal Financial Services.
Ravi Raheja, owner and promoter of Shoppers Stop, also made it to the Billionaire Club, thanks to the listing of his company, Chalet Hotels.
The analysis is based on promoters' stake and m-cap of a common sample of 822 companies that are either part of the BSE500, BSE MidCap, or BSE SmallCap indices.
The sample excludes government-owned companies, listed subsidiaries of global multinationals, institution-owned companies and their subsidiaries, such as Larsen & Toubro, Housing Development Finance Corporation, and ICICI Bank, among others.
The sample has also been adjusted for separately listed subsidiaries of holding companies, such as Reliance Industries, Tata Steel, Grasim Industries, Bombay Burmah Trading Corporation, Reliance Capital, Bajaj Finserv, Godrej Industries, Mahindra & Mahindra, and Kama Holdings, among others.
In contrast, Satyanarayan Nuwal of Solar Industries, R G Chandramogan of Hatsun Agro Products, Ajanta Pharma's Mannalal Agrawal, and Nusli Wadia exited the billionaire list due to a slump in share prices of their key operating companies.
It must be mentioned that Wadia's stake in biscuit and packaged food maker Britannia Industries — the group's most valuable and most profitable company — is owned by Bombay Burmah, a relatively small company, in terms of profits and m-cap.
The same is true for Arun Bharat Ram of SRF and Venu Srinivasan of TVS Motor.
 "Illustration by Ajay Mohanty")