As the entire country stands at a halt in the face of a global pandemic, all citizens are suffering from the economic consequences. With all operations relating to the economic sectors have either shut or shifted to the safe confines of the employees’ homes, these conditions have not been favorable for the owners of the business.
Fall in Ambani’s Net Worth
One of these individuals who are facing losses in these times is India’s richest man. Mukesh Ambani, the chairman of Reliance Industries. He witnessed a sharp fall in his net worth by almost 28 percent in the last two months according to the Hurun Global Rich List. This has been due to a reduction in revenue generation and manufacturing activities. According to the stock price of the renowned Reliance Industries and companies has fallen greatly by 25 percent in the period of two months, which has resulted in Ambani’s net worth falling by almost USD 300 million per day. This resulted in a collective fall to USD 48 Billion.
This meant that Mukesh Ambani no longer enjoys the prestige of being a part of the top 10 richest men in the world. He now stands at the 17th rank on the Hurun Global Rich List. The total share price of Ambani’s Reliance Industries earlier stood ta Rs 1,457 per piece during the first few weeks of February. The brunt of the pandemic soon hit the Indian economy and the Dalal street stocks hit the “52-week-low” at Rs 875 per share at the end of March.
Plummet of Indian Businessmen
Ambani is not the only businessman suffering from the woe of the econ9mic consequences of the pandemic. Gautum Adani faced a 37 percent fall of his wealth amounting up to USD 6 billion, the Chairman of HCL Shiv Nadar witnessed a fall of USD 5 billion of his net worth, and Uday Kotal reportedly suffered a loss of USD 4 billion which is 28 percent of his net worth.
“India’s top entrepreneurs have been hit by a 26 percent drop in the stock markets and a 5.2 percent drop in the value of the rupee compared with the US Dollar. For Mukesh Ambani, it has been a perfect storm, with his wealth down 28 percent,” Anas Rahman, Managing Director, Hurun Report India said.
The sudden crash of wealth among Indian businessmen has pushed these top industrialists and now only Mukesh Ambani remains part of the top 100 billionaires list. However, Indian industrialists aren’t the only ones incurring losses. LVMH’s Chief Executive wealth eroded by USD 30 billion, placing him ahead of the Ambani.
Foreign Industrialists also Hit
This economic domino also hit investor Warren Buffet as he witnessed a drop of USD 19 billion of his net worth in the last two months. The list of those losing huge sums of their net worth due to the pandemic includes Bill Gates, Mark Zukerberg, Larry Page and Sergey Brin as well as Michael Bloomberg.
The Chinese take Advantage
On the other hand, there have been reports that Chinese billionaires have been taking
advantage of the situation and making money. As three Indians fell from the top 100 billionaires list, six Chinese businesses made the ranks.
The Indian market has witnessed a shift of 25 percent in the two months of the pandemic as investors booked profits with the equity market in a free-fall. The Indian equity market’s losses are being aided by Foreign Institutional Investors, which resulted in sales of USD 15 billion in March.