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BW Businessworld

Money Spinners Of Year Gone By

In 2016 many enterprisers saw their million-dollar dreams take shape in concrete or on a cloud .....

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149 A. Velumani
Current wealth: Rs 2,199 crore

Self-made: Arokiaswamy Velumani, founder of diagnostics chain, Thyrocare Technologies, is a first-timer in the BW Businessworld Super Rich list. He invades the Super Rich club with a current net worth of Rs 2,199 crore.

His company’s valuation came up to about Rs 3,377 crore, after an initial public offer (IPO) in May 2016. Velumani, who owns a 64 per cent stake in the company, is ranked 149 in the list of the richest Indians of 2016.

Born to a landless farmer in the little known village of Appanickenpatti Padur in Tamil Nadu, Velumani currently owns the world’s largest thyroid testing company (in terms of volume of tests). Thyrocare currently operates more than 1,122 centres in India and the Gulf.

Velumani graduated in Chemistry and first worked in a small drug company in Mumbai, as a shift chemist on a monthly salary of Rs 150, but the company closed down after three years. His next job, a lab assistant at the prestigious Bhabha Atomic Research Centre (BARC) in Mumbai, was the real stepping stone to his successful entrepreneurial journey. At BARC, he was able to both work and study further and Velumani obtained a Master’s degree and a Ph.D. He resigned from BARC at the end of a long career, to start Thyrocare in 1996.
— C. H. Unnikrishnan

97 Devi P. Shetty
Current wealth: Rs 4,479 Crore

Super Speciality: Devi Prasad Shetty, founder and chairman of Bangalore-based speciality hospital chain, Narayana Hrudayalaya Ltd. (NHL), has a net worth of Rs 4,479 crore. Shetty and his family currently hold about 62 per cent stake in Narayana Hrudayalaya.

Narayana Hrudayalaya’s December 2015 IPO, at an offer price of Rs 250, put the market value of the hospital chain at about Rs 6,881 crore. NHL’s public issue was subscribed 8.61 times. The institutional investor portion of the issue was subscribed 24.42 times of the amount allotted. High net worth individuals and retail investors categories saw subscriptions of 3.61 times and 1.72 times respectively. The equity issue raised about Rs 613 crore.

Founded in 2000 by Shetty, NHL operates a chain of multispeciality, tertiary and primary healthcare facilities. The company has a network of 23 hospitals, eight heart centres and 25 primary care facilities, across 32 cities in the country.

The hospital chain recently launched a new 500-bed hospital in Jammu and a paediatrics hospital in Mumbai, as part of its new expansion plans. Narayana Hrudayalaya strives to create a capacity for 6,700 beds by the end of 2016-17.
— C.H. Unnikrishnan

42 Basudeo N. Singh
Current wealth: Rs 13,810 crore

Floating Shares: Basudeo Narayan Singh and his brother Samprada Singh founded Alkem Laboratories four decades ago, but the co-promoter and executive chairman of the drug maker enters BW Businessworld’s Super Rich list for the first time. Ranked 42nd in the Super Rich list, the net worth of Singh and his family are currently estimated at Rs13,810 crore. They own around 66 per cent of Alkem.

Alkem Laboratories was a privately held company till December 2015, when it floated an IPO. Shares of Alkem Lab have risen more than 50 per cent since the IPO. The Mumbai-based company raised around Rs 1,350 crore through the IPO, which was over-subscribed 44.29 times.

Alkem, currently the fifth largest drug maker in the domestic market by sales, produces and sells branded generics, generic drugs, active pharma ingredients and neutraceuticals, in India and 55 countries across the globe, primarily the US. Branded formulations still bring in 75 per cent of Alkem’s revenues and the company is considered a leader in the highly competitive anti-infective segment, with a market share of 11.2 per cent.
— C.H. Unnikrishnan

139 V. G. Siddhartha
Current Wealth: Rs 2,437 crore

Heady Brew: V.G. Siddhartha, founder of one of India’s largest coffee shop chains, Café Coffee Day, was born into a family that had been planting coffee for over 140 years, in Chikmangaluru district of Karnataka.

Siddhartha acquired a Masters degree in economics from Mangalore University, before joining J. M. Financial Services as a management intern in Mumbai, but all the while he dreamt his million dollar dream of starting his very own chain of cafes. The dream took shape in 1994, when he launched Cafe Coffee Day in 1994.

The Café Coffee Day chain has 1,534 outlets in 135 cities across 28 states in India. Café Coffee Day also has international outlets in Karachi, Vienna, Dubai and Prague. The company’s revenue touched $450 million in 2014. Today Siddhartha has a net worth of $1.3 billion.

The brand now straddles coffee plantations, coffee retailing, furniture, agriculture, logistics, wealth management and hospitality. Siddhartha has also founded Global Technology Ventures Ltd. in 2000, a company that identifies, invests and mentors Indian companies engaged in cutting edge technologies.

Siddharth is also on the boards of GTV, Mindtree, Liqwid Krystal, Way2Wealth and Ittiam.
– Monica Behura

136 Ramesh Vaze
Wealth: Rs 2,313 crore

Fragrant First: Ramesh Vinayak Vaze has accumulated a wealth of Rs 2,313 crore at the helm of Mumbai-based fragrance company, S. H. Kelkar & Co. Vaze is managing director of the company and his stake is 64 per cent. S. H. Kelkar is among the biggest players in the fragrance and flavours business. It reported a 41 per cent jump in consolidated net profit to Rs 27.5 crore in the first quarter of the 2016-17 financial year.

“The margins expand primarily owing to better realisations, higher profitability in the flavours business and contribution from new business acquisition,” the company said in a statement. The flavours business registered a strong growth in profitability with margins improving by 30.3 per cent in the first quarter of the 2016-17 financial year, ended June 30 . The company’s income jumped 10 per cent to Rs 661 crore from Rs 600 crore in 2015-16.

S. H. Kelkar’s international business accounts for 33 per cent of its total business and 17 per cent of the company’s revenue comes from its European subsidiary. Another 16.5 per cent of the fragrance maker’s revenue is almost evenly distributed across its units in the Middle East, Africa and Southeast Asia. The zero debt company expects a 20 per cent growth in its topline in the coming financial year.
– Monica Behura

148 Vishal Mehta
current Wealth: Rs 2,788 crore

Hung On A Cloud: ’Happy go lucky’ Vishal Mehta has wound his way into the BW Businessworld list of the Super Rich, with an accumulated wealth of Rs 2,788 crore. Mehta, his elder brother Malav and father Ajitbhai, started the one of a kind e-commerce portal, Infibeam Incorporation Ltd. Vishal Mehta is the CEO of the company.

Mehta studied at MIT and worked with Dell and Amazon in the US, before returning to India in 2007. He built an e-commerce software as a service on the cloud, which can be offered to millions of business with no upfront investment. Mehta believed that e-commerce technology could be used to empower intermediation, without eliminating retailers from their shops and jobs by selling directly to consumers. “Cloud computing was new and worked very well for the large but fragmented retail market in India,” says Mehta.

Infibeam’s Rs 450 crore IPO was fully subscribed in March 2016. The company’s market capitalisation is now Rs 6,368.25 crore. The company has turned cash positive, reporting an operating cash inflow of more than Rs 23.3 crore against Rs 20.9 crore in the corresponding period of the previous year. The company’s profit after tax (PAT) grew 186 per cent to Rs 8.7 crore, compared to a loss of Rs 10.1 crore in the 2015-16 financial year.
– Monica Behura

24 Rakesh Gangwal
current wealth: Rs 26,746 crore

Flying High: Rakesh Gangwal is no stranger in the Super Rich club, having made his fortune in the civil aviation industry. His enterprise, InterGlobe Aviation, is the parent company of India’s largest low cost carrier, IndiGo. Gangwal’s massive experience in the industry, spanning three decades, and some unique strategies that he and his co-founder, Rahul Bhatia, adopted has kept the airline profitable since 2009. InterGlobe Aviation was making money when most other airlines were accumulating losses and one major airline was even forced to down shutters.

Gangwal gained tremendously from the huge response his company received from its IPO. InterGlobe Aviation’s public offer was oversubscribed 6.15 times and turned out to be the biggest IPO in three years. With a rising passenger load and falling prices of jet fuel, Indigo managed to post a net profit of Rs 139.8 crore in the quarter ended September 30, 2016, up 24 per cent from Rs 113.1 crore during the same period in the last financial year. The low-cost carrier’s domestic market share touched an all-time high of 42.6 per cent in October.

Gangwal is an IITian, with a management degree from Wharton University. IndiGo, promoted as an on-time carrier, has emerged as the first choice of budget fliers.
— Arshad Khan

207 C. L. Rathi
Current Wealth: Rs 2,730 crore

Among top 15 Globally:
Advanced Enzyme Technologies promoter Chandrakant Laxminarayan Rathi is responsible for managing the entire operations of the second largest enzyme manufacturing company in India.

Advanced Enzyme Technologies is among the top fifteen global enzyme companies, with a market share of around 0.9 per cent. The company is engaged in manufacturing, research and development and marketing more than 400 proprietary products, developed from 60 indigenous enzymes.

Advanced Enzyme Technologies was promoted by both Chandrakant and Vasant Laxminarayan Rathi, who have 70 years’ experience in the global enzyme industry. Rathi’s total annual compensation in 2016 was Rs 12,780,000. His current wealth is estimated at Rs 2,730 crore.

The company’s consolidated unaudited financial results for the six months ended September 30, 2016, show its income from operations to be Rs 185.31 crore against Rs 138.85 crore for the same period, a year ago. Advanced Enzyme Technologies earned a net profit of Rs 57.41 crore in the first six months of the ongoing financial year, compared to Rs 33.49 crore in the first half of 2015-16.

The company has clocked a 14.4 per cent CAGR in sales between 2012 and 2016. Its EBITDA grew 22.1 per cent CAGR during the period. Its net profit for the period grew at 23.9 per cent CAGR. Advanced Enzyme Technologies’ top 10 customers accounted for 41.5 per cent of its total revenue in the 2016-17 financial year.

In July 2016, the company made an initial public offer to rid itself of some of its debt. At the launch of the public issue, the company’s promoter and managing director, C. L. Rathi said, “Our debt on the books stands at Rs 101 crore at present, out of which Rs 40 crore will get reduced from the IPO. We have also been regularly paying other debts, which are on the books. So we expect the debt to be less than Rs 50 crore going forward. Also, it (the company) could be totally debt free in a couple of years.”
– Monica Behura

86 Vandana Lal
Current wealth: Rs 5,800 Crore

Clinically tested: Vandana Lal enters BW Businessworld’s Super Rich hall of fame, with a wealth of Rs 5,800 crore, which has stayed the same since last year. Curiously, she has not attracted much media attention, but Lal has been with Dr. Lal PathLab since 1983 and has been the company’s executive director since 1995.

She has been the chief technical officer of Dr. Lal PathLabs since 2007 and has also served as its head of Clinical Research Services. Vandana Lal heads the research & development wing of Dr. Lal PathLabs and plays a pivotal role in the conception, planning, construction, execution and operation of the clinical trials division.

Dr. Lal PathLabs’ revenue grew from Rs 45 crore in 2005 to Rs 100 crore in 2007 and Rs 550 crore in March 2014. The company’s valuation is expected to be Rs 12,000 crore by 2019–20. It made a Rs 638 crore public issue in December 2015 and its current market capitalisation is Rs 9,618.35 crore. Promoters offloading equity included Arvind Lal (12,61,996 equity shares), Vandana Lal (20, 56, 747 shares), Eskay House (2,38,226 shares) and Anjaneya Lal (5,50,386 shares).
– Monica Behura

140 Dilip Suryavanshi
Current wealth: Rs 2,422 crore

King Of The Roads:
The son of a policeman, Dilip Suryavanshi has built a formidable construction company from scratch. For Suryavanshi, the journey into the construction sector, like the roads he was to later roll out, had begun when he passed out of college with a degree in engineering. In the early 1980s, he joined his brother’s construction firm and after a brief stint with learning the ropes of the business, he ventured out on his own. Dilip Buildcon started off as Dilip Builders in 1989, with projects like showrooms and residential complexes. The rest is history.

From its base in Bhopal in Madhya Pradesh, Dilip Buildcon is now a Rs 3,000 crore company with projects in expressways, bridges and dams. The company is simultaneously working on several projects across 16 states, and is ably aided by an army of 22,000 construction workers and engineers.

Notwithstanding the problems in acquiring land and permissions, Suryavanshi takes prides in having completed several projects ahead of schedule.

Suryavanshi says that nearly 80 per cent of his projects are completed on schedule. He adds that the company always works on logistics before actually signing up for a project. Besides, Dilip Buildcon also takes up smaller projects in adjoining areas to capitalise on its equipment, manpower and construction capacity.

It has rolled out nearly 8,000 lane-km and earned a reputation as a strong operator in construction. Suryavanshi believes that even the smallest of efforts do not go to waste, as success comes from within.

Clifford Alvares